Sen. Napoleon Harris, III

Filed: 5/24/2023

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3857

2    AMENDMENT NO. ______. Amend House Bill 3857 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing
5Sections 3-10 and 9 as follows:
 
6    (35 ILCS 105/3-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property. In all cases where property
11functionally used or consumed is the same as the property that
12was purchased at retail, then the tax is imposed on the selling
13price of the property. In all cases where property
14functionally used or consumed is a by-product or waste product
15that has been refined, manufactured, or produced from property
16purchased at retail, then the tax is imposed on the lower of

 

 

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1the fair market value, if any, of the specific property so used
2in this State or on the selling price of the property purchased
3at retail. For purposes of this Section "fair market value"
4means the price at which property would change hands between a
5willing buyer and a willing seller, neither being under any
6compulsion to buy or sell and both having reasonable knowledge
7of the relevant facts. The fair market value shall be
8established by Illinois sales by the taxpayer of the same
9property as that functionally used or consumed, or if there
10are no such sales by the taxpayer, then comparable sales or
11purchases of property of like kind and character in Illinois.
12    Beginning on July 1, 2000 and through December 31, 2000,
13with respect to motor fuel, as defined in Section 1.1 of the
14Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15the Use Tax Act, the tax is imposed at the rate of 1.25%.
16    Beginning on August 6, 2010 through August 15, 2010, and
17beginning again on August 5, 2022 through August 14, 2022,
18with respect to sales tax holiday items as defined in Section
193-6 of this Act, the tax is imposed at the rate of 1.25%.
20    With respect to gasohol, the tax imposed by this Act
21applies to (i) 70% of the proceeds of sales made on or after
22January 1, 1990, and before July 1, 2003, (ii) 80% of the
23proceeds of sales made on or after July 1, 2003 and on or
24before July 1, 2017, and (iii) 100% of the proceeds of sales
25made thereafter. If, at any time, however, the tax under this
26Act on sales of gasohol is imposed at the rate of 1.25%, then

 

 

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1the tax imposed by this Act applies to 100% of the proceeds of
2sales of gasohol made during that time.
3    With respect to majority blended ethanol fuel, the tax
4imposed by this Act does not apply to the proceeds of sales
5made on or after July 1, 2003 and on or before December 31,
62023 but applies to 100% of the proceeds of sales made
7thereafter.
8    With respect to biodiesel blends with no less than 1% and
9no more than 10% biodiesel, the tax imposed by this Act applies
10to (i) 80% of the proceeds of sales made on or after July 1,
112003 and on or before December 31, 2018 and (ii) 100% of the
12proceeds of sales made after December 31, 2018 and before
13January 1, 2024. On and after January 1, 2024 and on or before
14December 31, 2030, the taxation of biodiesel, renewable
15diesel, and biodiesel blends shall be as provided in Section
163-5.1. If, at any time, however, the tax under this Act on
17sales of biodiesel blends with no less than 1% and no more than
1810% biodiesel is imposed at the rate of 1.25%, then the tax
19imposed by this Act applies to 100% of the proceeds of sales of
20biodiesel blends with no less than 1% and no more than 10%
21biodiesel made during that time.
22    With respect to biodiesel and biodiesel blends with more
23than 10% but no more than 99% biodiesel, the tax imposed by
24this Act does not apply to the proceeds of sales made on or
25after July 1, 2003 and on or before December 31, 2023. On and
26after January 1, 2024 and on or before December 31, 2030, the

 

 

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1taxation of biodiesel, renewable diesel, and biodiesel blends
2shall be as provided in Section 3-5.1.
3    Until July 1, 2022 and beginning again on July 1, 2023,
4with respect to food for human consumption that is to be
5consumed off the premises where it is sold (other than
6alcoholic beverages, food consisting of or infused with adult
7use cannabis, soft drinks, and food that has been prepared for
8immediate consumption), the tax is imposed at the rate of 1%.
9Beginning on July 1, 2022 and until July 1, 2023, with respect
10to food for human consumption that is to be consumed off the
11premises where it is sold (other than alcoholic beverages,
12food consisting of or infused with adult use cannabis, soft
13drinks, and food that has been prepared for immediate
14consumption), the tax is imposed at the rate of 0%.
15    With respect to prescription and nonprescription
16medicines, drugs, medical appliances, products classified as
17Class III medical devices by the United States Food and Drug
18Administration that are used for cancer treatment pursuant to
19a prescription, as well as any accessories and components
20related to those devices, modifications to a motor vehicle for
21the purpose of rendering it usable by a person with a
22disability, and insulin, blood sugar testing materials,
23syringes, and needles used by human diabetics, the tax is
24imposed at the rate of 1%. For the purposes of this Section,
25until September 1, 2009: the term "soft drinks" means any
26complete, finished, ready-to-use, non-alcoholic drink, whether

 

 

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1carbonated or not, including, but not limited to, soda water,
2cola, fruit juice, vegetable juice, carbonated water, and all
3other preparations commonly known as soft drinks of whatever
4kind or description that are contained in any closed or sealed
5bottle, can, carton, or container, regardless of size; but
6"soft drinks" does not include coffee, tea, non-carbonated
7water, infant formula, milk or milk products as defined in the
8Grade A Pasteurized Milk and Milk Products Act, or drinks
9containing 50% or more natural fruit or vegetable juice.
10    Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "soft drinks" means non-alcoholic
12beverages that contain natural or artificial sweeteners. "Soft
13drinks" does do not include beverages that contain milk or
14milk products, soy, rice or similar milk substitutes, or
15greater than 50% of vegetable or fruit juice by volume.
16    Until August 1, 2009, and notwithstanding any other
17provisions of this Act, "food for human consumption that is to
18be consumed off the premises where it is sold" includes all
19food sold through a vending machine, except soft drinks and
20food products that are dispensed hot from a vending machine,
21regardless of the location of the vending machine. Beginning
22August 1, 2009, and notwithstanding any other provisions of
23this Act, "food for human consumption that is to be consumed
24off the premises where it is sold" includes all food sold
25through a vending machine, except soft drinks, candy, and food
26products that are dispensed hot from a vending machine,

 

 

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1regardless of the location of the vending machine.
2    Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "food for human consumption that
4is to be consumed off the premises where it is sold" does not
5include candy. For purposes of this Section, "candy" means a
6preparation of sugar, honey, or other natural or artificial
7sweeteners in combination with chocolate, fruits, nuts or
8other ingredients or flavorings in the form of bars, drops, or
9pieces. "Candy" does not include any preparation that contains
10flour or requires refrigeration.
11    Notwithstanding any other provisions of this Act,
12beginning September 1, 2009, "nonprescription medicines and
13drugs" does not include grooming and hygiene products. For
14purposes of this Section, "grooming and hygiene products"
15includes, but is not limited to, soaps and cleaning solutions,
16shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
17lotions and screens, unless those products are available by
18prescription only, regardless of whether the products meet the
19definition of "over-the-counter-drugs". For the purposes of
20this paragraph, "over-the-counter-drug" means a drug for human
21use that contains a label that identifies the product as a drug
22as required by 21 CFR C.F.R. § 201.66. The
23"over-the-counter-drug" label includes:
24        (A) a A "Drug Facts" panel; or
25        (B) a A statement of the "active ingredient(s)" with a
26    list of those ingredients contained in the compound,

 

 

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1    substance or preparation.
2    Beginning on January 1, 2014 (the effective date of Public
3Act 98-122) this amendatory Act of the 98th General Assembly,
4"prescription and nonprescription medicines and drugs"
5includes medical cannabis purchased from a registered
6dispensing organization under the Compassionate Use of Medical
7Cannabis Program Act.
8    As used in this Section, "adult use cannabis" means
9cannabis subject to tax under the Cannabis Cultivation
10Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
11and does not include cannabis subject to tax under the
12Compassionate Use of Medical Cannabis Program Act.
13    If the property that is purchased at retail from a
14retailer is acquired outside Illinois and used outside
15Illinois before being brought to Illinois for use here and is
16taxable under this Act, the "selling price" on which the tax is
17computed shall be reduced by an amount that represents a
18reasonable allowance for depreciation for the period of prior
19out-of-state use.
20    Beginning on January 1, 2024, in addition to the 6.25%
21general rate of tax imposed under this Act, a tax of 3% is
22imposed on the selling price of ground-based sparklers that
23are excluded from the definition of "fireworks" set forth in
24Section 2 of the Fireworks Regulation Act of Illinois.
25(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
26102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.

 

 

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14-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
2102-700, Article 65, Section 65-5, eff. 4-19-22; revised
35-27-22.)
 
4    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
5    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
6and trailers that are required to be registered with an agency
7of this State, each retailer required or authorized to collect
8the tax imposed by this Act shall pay to the Department the
9amount of such tax (except as otherwise provided) at the time
10when he is required to file his return for the period during
11which such tax was collected, less a discount of 2.1% prior to
12January 1, 1990, and 1.75% on and after January 1, 1990, or $5
13per calendar year, whichever is greater, which is allowed to
14reimburse the retailer for expenses incurred in collecting the
15tax, keeping records, preparing and filing returns, remitting
16the tax and supplying data to the Department on request. When
17determining the discount allowed under this Section, retailers
18shall include the amount of tax that would have been due at the
196.25% rate but for the 1.25% rate imposed on sales tax holiday
20items under Public Act 102-700 this amendatory Act of the
21102nd General Assembly. The discount under this Section is not
22allowed for the 1.25% portion of taxes paid on aviation fuel
23that is subject to the revenue use requirements of 49 U.S.C.
2447107(b) and 49 U.S.C. 47133. When determining the discount
25allowed under this Section, retailers shall include the amount

 

 

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1of tax that would have been due at the 1% rate but for the 0%
2rate imposed under Public Act 102-700 this amendatory Act of
3the 102nd General Assembly. In the case of retailers who
4report and pay the tax on a transaction by transaction basis,
5as provided in this Section, such discount shall be taken with
6each such tax remittance instead of when such retailer files
7his periodic return. The discount allowed under this Section
8is allowed only for returns that are filed in the manner
9required by this Act. The Department may disallow the discount
10for retailers whose certificate of registration is revoked at
11the time the return is filed, but only if the Department's
12decision to revoke the certificate of registration has become
13final. A retailer need not remit that part of any tax collected
14by him to the extent that he is required to remit and does
15remit the tax imposed by the Retailers' Occupation Tax Act,
16with respect to the sale of the same property.
17    Where such tangible personal property is sold under a
18conditional sales contract, or under any other form of sale
19wherein the payment of the principal sum, or a part thereof, is
20extended beyond the close of the period for which the return is
21filed, the retailer, in collecting the tax (except as to motor
22vehicles, watercraft, aircraft, and trailers that are required
23to be registered with an agency of this State), may collect for
24each tax return period, only the tax applicable to that part of
25the selling price actually received during such tax return
26period.

 

 

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1    Except as provided in this Section, on or before the
2twentieth day of each calendar month, such retailer shall file
3a return for the preceding calendar month. Such return shall
4be filed on forms prescribed by the Department and shall
5furnish such information as the Department may reasonably
6require. The return shall include the gross receipts on food
7for human consumption that is to be consumed off the premises
8where it is sold (other than alcoholic beverages, food
9consisting of or infused with adult use cannabis, soft drinks,
10and food that has been prepared for immediate consumption)
11which were received during the preceding calendar month,
12quarter, or year, as appropriate, and upon which tax would
13have been due but for the 0% rate imposed under Public Act
14102-700 this amendatory Act of the 102nd General Assembly. The
15return shall also include the amount of tax that would have
16been due on food for human consumption that is to be consumed
17off the premises where it is sold (other than alcoholic
18beverages, food consisting of or infused with adult use
19cannabis, soft drinks, and food that has been prepared for
20immediate consumption) but for the 0% rate imposed under
21Public Act 102-700 this amendatory Act of the 102nd General
22Assembly.
23    On and after January 1, 2018, except for returns required
24to be filed prior to January 1, 2023 for motor vehicles,
25watercraft, aircraft, and trailers that are required to be
26registered with an agency of this State, with respect to

 

 

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1retailers whose annual gross receipts average $20,000 or more,
2all returns required to be filed pursuant to this Act shall be
3filed electronically. On and after January 1, 2023, with
4respect to retailers whose annual gross receipts average
5$20,000 or more, all returns required to be filed pursuant to
6this Act, including, but not limited to, returns for motor
7vehicles, watercraft, aircraft, and trailers that are required
8to be registered with an agency of this State, shall be filed
9electronically. Retailers who demonstrate that they do not
10have access to the Internet or demonstrate hardship in filing
11electronically may petition the Department to waive the
12electronic filing requirement.
13    The Department may require returns to be filed on a
14quarterly basis. If so required, a return for each calendar
15quarter shall be filed on or before the twentieth day of the
16calendar month following the end of such calendar quarter. The
17taxpayer shall also file a return with the Department for each
18of the first two months of each calendar quarter, on or before
19the twentieth day of the following calendar month, stating:
20        1. The name of the seller;
21        2. The address of the principal place of business from
22    which he engages in the business of selling tangible
23    personal property at retail in this State;
24        3. The total amount of taxable receipts received by
25    him during the preceding calendar month from sales of
26    tangible personal property by him during such preceding

 

 

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1    calendar month, including receipts from charge and time
2    sales, but less all deductions allowed by law;
3        4. The amount of credit provided in Section 2d of this
4    Act;
5        5. The amount of tax due;
6        5-5. The signature of the taxpayer; and
7        6. Such other reasonable information as the Department
8    may require.
9    Each retailer required or authorized to collect the tax
10imposed by this Act on aviation fuel sold at retail in this
11State during the preceding calendar month shall, instead of
12reporting and paying tax on aviation fuel as otherwise
13required by this Section, report and pay such tax on a separate
14aviation fuel tax return. The requirements related to the
15return shall be as otherwise provided in this Section.
16Notwithstanding any other provisions of this Act to the
17contrary, retailers collecting tax on aviation fuel shall file
18all aviation fuel tax returns and shall make all aviation fuel
19tax payments by electronic means in the manner and form
20required by the Department. For purposes of this Section,
21"aviation fuel" means jet fuel and aviation gasoline.
22    If a taxpayer fails to sign a return within 30 days after
23the proper notice and demand for signature by the Department,
24the return shall be considered valid and any amount shown to be
25due on the return shall be deemed assessed.
26    Notwithstanding any other provision of this Act to the

 

 

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1contrary, retailers subject to tax on cannabis shall file all
2cannabis tax returns and shall make all cannabis tax payments
3by electronic means in the manner and form required by the
4Department.
5    Beginning October 1, 1993, a taxpayer who has an average
6monthly tax liability of $150,000 or more shall make all
7payments required by rules of the Department by electronic
8funds transfer. Beginning October 1, 1994, a taxpayer who has
9an average monthly tax liability of $100,000 or more shall
10make all payments required by rules of the Department by
11electronic funds transfer. Beginning October 1, 1995, a
12taxpayer who has an average monthly tax liability of $50,000
13or more shall make all payments required by rules of the
14Department by electronic funds transfer. Beginning October 1,
152000, a taxpayer who has an annual tax liability of $200,000 or
16more shall make all payments required by rules of the
17Department by electronic funds transfer. The term "annual tax
18liability" shall be the sum of the taxpayer's liabilities
19under this Act, and under all other State and local occupation
20and use tax laws administered by the Department, for the
21immediately preceding calendar year. The term "average monthly
22tax liability" means the sum of the taxpayer's liabilities
23under this Act, and under all other State and local occupation
24and use tax laws administered by the Department, for the
25immediately preceding calendar year divided by 12. Beginning
26on October 1, 2002, a taxpayer who has a tax liability in the

 

 

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1amount set forth in subsection (b) of Section 2505-210 of the
2Department of Revenue Law shall make all payments required by
3rules of the Department by electronic funds transfer.
4    Before August 1 of each year beginning in 1993, the
5Department shall notify all taxpayers required to make
6payments by electronic funds transfer. All taxpayers required
7to make payments by electronic funds transfer shall make those
8payments for a minimum of one year beginning on October 1.
9    Any taxpayer not required to make payments by electronic
10funds transfer may make payments by electronic funds transfer
11with the permission of the Department.
12    All taxpayers required to make payment by electronic funds
13transfer and any taxpayers authorized to voluntarily make
14payments by electronic funds transfer shall make those
15payments in the manner authorized by the Department.
16    The Department shall adopt such rules as are necessary to
17effectuate a program of electronic funds transfer and the
18requirements of this Section.
19    Before October 1, 2000, if the taxpayer's average monthly
20tax liability to the Department under this Act, the Retailers'
21Occupation Tax Act, the Service Occupation Tax Act, the
22Service Use Tax Act was $10,000 or more during the preceding 4
23complete calendar quarters, he shall file a return with the
24Department each month by the 20th day of the month next
25following the month during which such tax liability is
26incurred and shall make payments to the Department on or

 

 

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1before the 7th, 15th, 22nd and last day of the month during
2which such liability is incurred. On and after October 1,
32000, if the taxpayer's average monthly tax liability to the
4Department under this Act, the Retailers' Occupation Tax Act,
5the Service Occupation Tax Act, and the Service Use Tax Act was
6$20,000 or more during the preceding 4 complete calendar
7quarters, he shall file a return with the Department each
8month by the 20th day of the month next following the month
9during which such tax liability is incurred and shall make
10payment to the Department on or before the 7th, 15th, 22nd and
11last day of the month during which such liability is incurred.
12If the month during which such tax liability is incurred began
13prior to January 1, 1985, each payment shall be in an amount
14equal to 1/4 of the taxpayer's actual liability for the month
15or an amount set by the Department not to exceed 1/4 of the
16average monthly liability of the taxpayer to the Department
17for the preceding 4 complete calendar quarters (excluding the
18month of highest liability and the month of lowest liability
19in such 4 quarter period). If the month during which such tax
20liability is incurred begins on or after January 1, 1985, and
21prior to January 1, 1987, each payment shall be in an amount
22equal to 22.5% of the taxpayer's actual liability for the
23month or 27.5% of the taxpayer's liability for the same
24calendar month of the preceding year. If the month during
25which such tax liability is incurred begins on or after
26January 1, 1987, and prior to January 1, 1988, each payment

 

 

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1shall be in an amount equal to 22.5% of the taxpayer's actual
2liability for the month or 26.25% of the taxpayer's liability
3for the same calendar month of the preceding year. If the month
4during which such tax liability is incurred begins on or after
5January 1, 1988, and prior to January 1, 1989, or begins on or
6after January 1, 1996, each payment shall be in an amount equal
7to 22.5% of the taxpayer's actual liability for the month or
825% of the taxpayer's liability for the same calendar month of
9the preceding year. If the month during which such tax
10liability is incurred begins on or after January 1, 1989, and
11prior to January 1, 1996, each payment shall be in an amount
12equal to 22.5% of the taxpayer's actual liability for the
13month or 25% of the taxpayer's liability for the same calendar
14month of the preceding year or 100% of the taxpayer's actual
15liability for the quarter monthly reporting period. The amount
16of such quarter monthly payments shall be credited against the
17final tax liability of the taxpayer's return for that month.
18Before October 1, 2000, once applicable, the requirement of
19the making of quarter monthly payments to the Department shall
20continue until such taxpayer's average monthly liability to
21the Department during the preceding 4 complete calendar
22quarters (excluding the month of highest liability and the
23month of lowest liability) is less than $9,000, or until such
24taxpayer's average monthly liability to the Department as
25computed for each calendar quarter of the 4 preceding complete
26calendar quarter period is less than $10,000. However, if a

 

 

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1taxpayer can show the Department that a substantial change in
2the taxpayer's business has occurred which causes the taxpayer
3to anticipate that his average monthly tax liability for the
4reasonably foreseeable future will fall below the $10,000
5threshold stated above, then such taxpayer may petition the
6Department for change in such taxpayer's reporting status. On
7and after October 1, 2000, once applicable, the requirement of
8the making of quarter monthly payments to the Department shall
9continue until such taxpayer's average monthly liability to
10the Department during the preceding 4 complete calendar
11quarters (excluding the month of highest liability and the
12month of lowest liability) is less than $19,000 or until such
13taxpayer's average monthly liability to the Department as
14computed for each calendar quarter of the 4 preceding complete
15calendar quarter period is less than $20,000. However, if a
16taxpayer can show the Department that a substantial change in
17the taxpayer's business has occurred which causes the taxpayer
18to anticipate that his average monthly tax liability for the
19reasonably foreseeable future will fall below the $20,000
20threshold stated above, then such taxpayer may petition the
21Department for a change in such taxpayer's reporting status.
22The Department shall change such taxpayer's reporting status
23unless it finds that such change is seasonal in nature and not
24likely to be long term. Quarter monthly payment status shall
25be determined under this paragraph as if the rate reduction to
261.25% in Public Act 102-700 this amendatory Act of the 102nd

 

 

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1General Assembly on sales tax holiday items had not occurred.
2For quarter monthly payments due on or after July 1, 2023 and
3through June 30, 2024, "25% of the taxpayer's liability for
4the same calendar month of the preceding year" shall be
5determined as if the rate reduction to 1.25% in Public Act
6102-700 this amendatory Act of the 102nd General Assembly on
7sales tax holiday items had not occurred. Quarter monthly
8payment status shall be determined under this paragraph as if
9the rate reduction to 0% in Public Act 102-700 this amendatory
10Act of the 102nd General Assembly on food for human
11consumption that is to be consumed off the premises where it is
12sold (other than alcoholic beverages, food consisting of or
13infused with adult use cannabis, soft drinks, and food that
14has been prepared for immediate consumption) had not occurred.
15For quarter monthly payments due under this paragraph on or
16after July 1, 2023 and through June 30, 2024, "25% of the
17taxpayer's liability for the same calendar month of the
18preceding year" shall be determined as if the rate reduction
19to 0% in Public Act 102-700 this amendatory Act of the 102nd
20General Assembly had not occurred. If any such quarter monthly
21payment is not paid at the time or in the amount required by
22this Section, then the taxpayer shall be liable for penalties
23and interest on the difference between the minimum amount due
24and the amount of such quarter monthly payment actually and
25timely paid, except insofar as the taxpayer has previously
26made payments for that month to the Department in excess of the

 

 

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1minimum payments previously due as provided in this Section.
2The Department shall make reasonable rules and regulations to
3govern the quarter monthly payment amount and quarter monthly
4payment dates for taxpayers who file on other than a calendar
5monthly basis.
6    If any such payment provided for in this Section exceeds
7the taxpayer's liabilities under this Act, the Retailers'
8Occupation Tax Act, the Service Occupation Tax Act and the
9Service Use Tax Act, as shown by an original monthly return,
10the Department shall issue to the taxpayer a credit memorandum
11no later than 30 days after the date of payment, which
12memorandum may be submitted by the taxpayer to the Department
13in payment of tax liability subsequently to be remitted by the
14taxpayer to the Department or be assigned by the taxpayer to a
15similar taxpayer under this Act, the Retailers' Occupation Tax
16Act, the Service Occupation Tax Act or the Service Use Tax Act,
17in accordance with reasonable rules and regulations to be
18prescribed by the Department, except that if such excess
19payment is shown on an original monthly return and is made
20after December 31, 1986, no credit memorandum shall be issued,
21unless requested by the taxpayer. If no such request is made,
22the taxpayer may credit such excess payment against tax
23liability subsequently to be remitted by the taxpayer to the
24Department under this Act, the Retailers' Occupation Tax Act,
25the Service Occupation Tax Act or the Service Use Tax Act, in
26accordance with reasonable rules and regulations prescribed by

 

 

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

 

 

10300HB3857sam001- 21 -LRB103 27764 HLH 62310 a

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

 

 

10300HB3857sam001- 22 -LRB103 27764 HLH 62310 a

1return form. For purposes of this Section, "watercraft" means
2a Class 2, Class 3, or Class 4 watercraft as defined in Section
33-2 of the Boat Registration and Safety Act, a personal
4watercraft, or any boat equipped with an inboard motor.
5    In addition, with respect to motor vehicles, watercraft,
6aircraft, and trailers that are required to be registered with
7an agency of this State, every person who is engaged in the
8business of leasing or renting such items and who, in
9connection with such business, sells any such item to a
10retailer for the purpose of resale is, notwithstanding any
11other provision of this Section to the contrary, authorized to
12meet the return-filing requirement of this Act by reporting
13the transfer of all the aircraft, watercraft, motor vehicles,
14or trailers transferred for resale during a month to the
15Department on the same uniform invoice-transaction reporting
16return form on or before the 20th of the month following the
17month in which the transfer takes place. Notwithstanding any
18other provision of this Act to the contrary, all returns filed
19under this paragraph must be filed by electronic means in the
20manner and form as required by the Department.
21    The transaction reporting return in the case of motor
22vehicles or trailers that are required to be registered with
23an agency of this State, shall be the same document as the
24Uniform Invoice referred to in Section 5-402 of the Illinois
25Vehicle Code and must show the name and address of the seller;
26the name and address of the purchaser; the amount of the

 

 

10300HB3857sam001- 23 -LRB103 27764 HLH 62310 a

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

 

 

10300HB3857sam001- 24 -LRB103 27764 HLH 62310 a

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

 

 

10300HB3857sam001- 25 -LRB103 27764 HLH 62310 a

1whom, he must title or register the tangible personal property
2that is involved (if titling or registration is required) in
3support of such purchaser's application for an Illinois
4certificate or other evidence of title or registration to such
5tangible personal property.
6    No retailer's failure or refusal to remit tax under this
7Act precludes a user, who has paid the proper tax to the
8retailer, from obtaining his certificate of title or other
9evidence of title or registration (if titling or registration
10is required) upon satisfying the Department that such user has
11paid the proper tax (if tax is due) to the retailer. The
12Department shall adopt appropriate rules to carry out the
13mandate of this paragraph.
14    If the user who would otherwise pay tax to the retailer
15wants the transaction reporting return filed and the payment
16of tax or proof of exemption made to the Department before the
17retailer is willing to take these actions and such user has not
18paid the tax to the retailer, such user may certify to the fact
19of such delay by the retailer, and may (upon the Department
20being satisfied of the truth of such certification) transmit
21the information required by the transaction reporting return
22and the remittance for tax or proof of exemption directly to
23the Department and obtain his tax receipt or exemption
24determination, in which event the transaction reporting return
25and tax remittance (if a tax payment was required) shall be
26credited by the Department to the proper retailer's account

 

 

10300HB3857sam001- 26 -LRB103 27764 HLH 62310 a

1with the Department, but without the 2.1% or 1.75% discount
2provided for in this Section being allowed. When the user pays
3the tax directly to the Department, he shall pay the tax in the
4same amount and in the same form in which it would be remitted
5if the tax had been remitted to the Department by the retailer.
6    Where a retailer collects the tax with respect to the
7selling price of tangible personal property which he sells and
8the purchaser thereafter returns such tangible personal
9property and the retailer refunds the selling price thereof to
10the purchaser, such retailer shall also refund, to the
11purchaser, the tax so collected from the purchaser. When
12filing his return for the period in which he refunds such tax
13to the purchaser, the retailer may deduct the amount of the tax
14so refunded by him to the purchaser from any other use tax
15which such retailer may be required to pay or remit to the
16Department, as shown by such return, if the amount of the tax
17to be deducted was previously remitted to the Department by
18such retailer. If the retailer has not previously remitted the
19amount of such tax to the Department, he is entitled to no
20deduction under this Act upon refunding such tax to the
21purchaser.
22    Any retailer filing a return under this Section shall also
23include (for the purpose of paying tax thereon) the total tax
24covered by such return upon the selling price of tangible
25personal property purchased by him at retail from a retailer,
26but as to which the tax imposed by this Act was not collected

 

 

10300HB3857sam001- 27 -LRB103 27764 HLH 62310 a

1from the retailer filing such return, and such retailer shall
2remit the amount of such tax to the Department when filing such
3return.
4    If experience indicates such action to be practicable, the
5Department may prescribe and furnish a combination or joint
6return which will enable retailers, who are required to file
7returns hereunder and also under the Retailers' Occupation Tax
8Act, to furnish all the return information required by both
9Acts on the one form.
10    Where the retailer has more than one business registered
11with the Department under separate registration under this
12Act, such retailer may not file each return that is due as a
13single return covering all such registered businesses, but
14shall file separate returns for each such registered business.
15    Beginning January 1, 1990, each month the Department shall
16pay into the State and Local Sales Tax Reform Fund, a special
17fund in the State Treasury which is hereby created, the net
18revenue realized for the preceding month from the 1% tax
19imposed under this Act.
20    Beginning January 1, 1990, each month the Department shall
21pay into the County and Mass Transit District Fund 4% of the
22net revenue realized for the preceding month from the 6.25%
23general rate on the selling price of tangible personal
24property which is purchased outside Illinois at retail from a
25retailer and which is titled or registered by an agency of this
26State's government.

 

 

10300HB3857sam001- 28 -LRB103 27764 HLH 62310 a

1    Beginning January 1, 1990, each month the Department shall
2pay into the State and Local Sales Tax Reform Fund, a special
3fund in the State Treasury, 20% of the net revenue realized for
4the preceding month from the 6.25% general rate on the selling
5price of tangible personal property, other than (i) tangible
6personal property which is purchased outside Illinois at
7retail from a retailer and which is titled or registered by an
8agency of this State's government and (ii) aviation fuel sold
9on or after December 1, 2019. This exception for aviation fuel
10only applies for so long as the revenue use requirements of 49
11U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
12    For aviation fuel sold on or after December 1, 2019, each
13month the Department shall pay into the State Aviation Program
14Fund 20% of the net revenue realized for the preceding month
15from the 6.25% general rate on the selling price of aviation
16fuel, less an amount estimated by the Department to be
17required for refunds of the 20% portion of the tax on aviation
18fuel under this Act, which amount shall be deposited into the
19Aviation Fuel Sales Tax Refund Fund. The Department shall only
20pay moneys into the State Aviation Program Fund and the
21Aviation Fuels Sales Tax Refund Fund under this Act for so long
22as the revenue use requirements of 49 U.S.C. 47107(b) and 49
23U.S.C. 47133 are binding on the State.
24    Beginning August 1, 2000, each month the Department shall
25pay into the State and Local Sales Tax Reform Fund 100% of the
26net revenue realized for the preceding month from the 1.25%

 

 

10300HB3857sam001- 29 -LRB103 27764 HLH 62310 a

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

 

 

10300HB3857sam001- 30 -LRB103 27764 HLH 62310 a

1the total payment into the Clean Air Act Permit Fund under this
2Act and the Retailers' Occupation Tax Act shall not exceed
3$2,000,000 in any fiscal year.
4    Beginning July 1, 2013, each month the Department shall
5pay into the Underground Storage Tank Fund from the proceeds
6collected under this Act, the Service Use Tax Act, the Service
7Occupation Tax Act, and the Retailers' Occupation Tax Act an
8amount equal to the average monthly deficit in the Underground
9Storage Tank Fund during the prior year, as certified annually
10by the Illinois Environmental Protection Agency, but the total
11payment into the Underground Storage Tank Fund under this Act,
12the Service Use Tax Act, the Service Occupation Tax Act, and
13the Retailers' Occupation Tax Act shall not exceed $18,000,000
14in any State fiscal year. As used in this paragraph, the
15"average monthly deficit" shall be equal to the difference
16between the average monthly claims for payment by the fund and
17the average monthly revenues deposited into the fund,
18excluding payments made pursuant to this paragraph.
19    Beginning July 1, 2015, of the remainder of the moneys
20received by the Department under this Act, the Service Use Tax
21Act, the Service Occupation Tax Act, and the Retailers'
22Occupation Tax Act, each month the Department shall deposit
23$500,000 into the State Crime Laboratory Fund.
24    Beginning on January 1, 2024, each month the Department
25shall pay into the Fireman's Annuity and Benefit Fund and the
26Firefighters' Pension Investment Fund, cumulatively, 50% of

 

 

10300HB3857sam001- 31 -LRB103 27764 HLH 62310 a

1the net revenue realized for the preceding month from the 3%
2tax on the selling price of ground-based sparklers. The Board
3of Trustees of the Firemen's Annuity and Benefit Fund and the
4Board of Trustees of the Firefighters' Pension Investment Fund
5shall each annually certify to the Department the average
6total number of participants in their respective funds for the
7immediately preceding calendar year. The certifications for
8the 2024 calendar year shall be provided as soon as possible
9after the effective date of this amendatory Act of the 103rd
10General Assembly, and the certifications for the 2025 calendar
11year and each calendar year thereafter shall be provided by
12January 15 of the calendar year for which the certification is
13made. Each of those funds shall receive a portion of the total
14net revenue required to be deposited into those funds equal to
15the particular fund's proportionate share of the total number
16of participants in both funds. The Department shall pay the
17remaining 50% of the net revenue realized for the preceding
18month from the 3% tax on the selling price of ground-based
19sparklers into the General Revenue Fund.
20    Of the remainder of the moneys received by the Department
21pursuant to this Act, (a) 1.75% thereof shall be paid into the
22Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
23and after July 1, 1989, 3.8% thereof shall be paid into the
24Build Illinois Fund; provided, however, that if in any fiscal
25year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
26may be, of the moneys received by the Department and required

 

 

10300HB3857sam001- 32 -LRB103 27764 HLH 62310 a

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

 

 

10300HB3857sam001- 33 -LRB103 27764 HLH 62310 a

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

 

 

10300HB3857sam001- 34 -LRB103 27764 HLH 62310 a

1of the preceding sentence and shall reduce the amount
2otherwise payable for such fiscal year pursuant to clause (b)
3of the preceding sentence. The moneys received by the
4Department pursuant to this Act and required to be deposited
5into the Build Illinois Fund are subject to the pledge, claim
6and charge set forth in Section 12 of the Build Illinois Bond
7Act.
8    Subject to payment of amounts into the Build Illinois Fund
9as provided in the preceding paragraph or in any amendment
10thereto hereafter enacted, the following specified monthly
11installment of the amount requested in the certificate of the
12Chairman of the Metropolitan Pier and Exposition Authority
13provided under Section 8.25f of the State Finance Act, but not
14in excess of the sums designated as "Total Deposit", shall be
15deposited in the aggregate from collections under Section 9 of
16the Use Tax Act, Section 9 of the Service Use Tax Act, Section
179 of the Service Occupation Tax Act, and Section 3 of the
18Retailers' Occupation Tax Act into the McCormick Place
19Expansion Project Fund in the specified fiscal years.
20Fiscal YearTotal Deposit
211993         $0
221994 53,000,000
231995 58,000,000
241996 61,000,000
251997 64,000,000
261998 68,000,000

 

 

10300HB3857sam001- 35 -LRB103 27764 HLH 62310 a

11999 71,000,000
22000 75,000,000
32001 80,000,000
42002 93,000,000
52003 99,000,000
62004103,000,000
72005108,000,000
82006113,000,000
92007119,000,000
102008126,000,000
112009132,000,000
122010139,000,000
132011146,000,000
142012153,000,000
152013161,000,000
162014170,000,000
172015179,000,000
182016189,000,000
192017199,000,000
202018210,000,000
212019221,000,000
222020233,000,000
232021300,000,000
242022300,000,000
252023300,000,000
262024 300,000,000

 

 

10300HB3857sam001- 36 -LRB103 27764 HLH 62310 a

12025 300,000,000
22026 300,000,000
32027 375,000,000
42028 375,000,000
52029 375,000,000
62030 375,000,000
72031 375,000,000
82032 375,000,000
92033 375,000,000
102034375,000,000
112035375,000,000
122036450,000,000
13and
14each fiscal year
15thereafter that bonds
16are outstanding under
17Section 13.2 of the
18Metropolitan Pier and
19Exposition Authority Act,
20but not after fiscal year 2060.
21    Beginning July 20, 1993 and in each month of each fiscal
22year thereafter, one-eighth of the amount requested in the
23certificate of the Chairman of the Metropolitan Pier and
24Exposition Authority for that fiscal year, less the amount
25deposited into the McCormick Place Expansion Project Fund by
26the State Treasurer in the respective month under subsection

 

 

10300HB3857sam001- 37 -LRB103 27764 HLH 62310 a

1(g) of Section 13 of the Metropolitan Pier and Exposition
2Authority Act, plus cumulative deficiencies in the deposits
3required under this Section for previous months and years,
4shall be deposited into the McCormick Place Expansion Project
5Fund, until the full amount requested for the fiscal year, but
6not in excess of the amount specified above as "Total
7Deposit", has been deposited.
8    Subject to payment of amounts into the Capital Projects
9Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
10and the McCormick Place Expansion Project Fund pursuant to the
11preceding paragraphs or in any amendments thereto hereafter
12enacted, for aviation fuel sold on or after December 1, 2019,
13the Department shall each month deposit into the Aviation Fuel
14Sales Tax Refund Fund an amount estimated by the Department to
15be required for refunds of the 80% portion of the tax on
16aviation fuel under this Act. The Department shall only
17deposit moneys into the Aviation Fuel Sales Tax Refund Fund
18under this paragraph for so long as the revenue use
19requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
20binding on the State.
21    Subject to payment of amounts into the Build Illinois Fund
22and the McCormick Place Expansion Project Fund pursuant to the
23preceding paragraphs or in any amendments thereto hereafter
24enacted, beginning July 1, 1993 and ending on September 30,
252013, the Department shall each month pay into the Illinois
26Tax Increment Fund 0.27% of 80% of the net revenue realized for

 

 

10300HB3857sam001- 38 -LRB103 27764 HLH 62310 a

1the preceding month from the 6.25% general rate on the selling
2price of tangible personal property.
3    Subject to payment of amounts into the Build Illinois Fund
4and the McCormick Place Expansion Project Fund pursuant to the
5preceding paragraphs or in any amendments thereto hereafter
6enacted, beginning with the receipt of the first report of
7taxes paid by an eligible business and continuing for a
825-year period, the Department shall each month pay into the
9Energy Infrastructure Fund 80% of the net revenue realized
10from the 6.25% general rate on the selling price of
11Illinois-mined coal that was sold to an eligible business. For
12purposes of this paragraph, the term "eligible business" means
13a new electric generating facility certified pursuant to
14Section 605-332 of the Department of Commerce and Economic
15Opportunity Law of the Civil Administrative Code of Illinois.
16    Subject to payment of amounts into the Build Illinois
17Fund, the McCormick Place Expansion Project Fund, the Illinois
18Tax Increment Fund, and the Energy Infrastructure Fund
19pursuant to the preceding paragraphs or in any amendments to
20this Section hereafter enacted, beginning on the first day of
21the first calendar month to occur on or after August 26, 2014
22(the effective date of Public Act 98-1098), each month, from
23the collections made under Section 9 of the Use Tax Act,
24Section 9 of the Service Use Tax Act, Section 9 of the Service
25Occupation Tax Act, and Section 3 of the Retailers' Occupation
26Tax Act, the Department shall pay into the Tax Compliance and

 

 

10300HB3857sam001- 39 -LRB103 27764 HLH 62310 a

1Administration Fund, to be used, subject to appropriation, to
2fund additional auditors and compliance personnel at the
3Department of Revenue, an amount equal to 1/12 of 5% of 80% of
4the cash receipts collected during the preceding fiscal year
5by the Audit Bureau of the Department under the Use Tax Act,
6the Service Use Tax Act, the Service Occupation Tax Act, the
7Retailers' Occupation Tax Act, and associated local occupation
8and use taxes administered by the Department.
9    Subject to payments of amounts into the Build Illinois
10Fund, the McCormick Place Expansion Project Fund, the Illinois
11Tax Increment Fund, the Energy Infrastructure Fund, and the
12Tax Compliance and Administration Fund as provided in this
13Section, beginning on July 1, 2018 the Department shall pay
14each month into the Downstate Public Transportation Fund the
15moneys required to be so paid under Section 2-3 of the
16Downstate Public Transportation Act.
17    Subject to successful execution and delivery of a
18public-private agreement between the public agency and private
19entity and completion of the civic build, beginning on July 1,
202023, of the remainder of the moneys received by the
21Department under the Use Tax Act, the Service Use Tax Act, the
22Service Occupation Tax Act, and this Act, the Department shall
23deposit the following specified deposits in the aggregate from
24collections under the Use Tax Act, the Service Use Tax Act, the
25Service Occupation Tax Act, and the Retailers' Occupation Tax
26Act, as required under Section 8.25g of the State Finance Act

 

 

10300HB3857sam001- 40 -LRB103 27764 HLH 62310 a

1for distribution consistent with the Public-Private
2Partnership for Civic and Transit Infrastructure Project Act.
3The moneys received by the Department pursuant to this Act and
4required to be deposited into the Civic and Transit
5Infrastructure Fund are subject to the pledge, claim, and
6charge set forth in Section 25-55 of the Public-Private
7Partnership for Civic and Transit Infrastructure Project Act.
8As used in this paragraph, "civic build", "private entity",
9"public-private agreement", and "public agency" have the
10meanings provided in Section 25-10 of the Public-Private
11Partnership for Civic and Transit Infrastructure Project Act.
12        Fiscal Year............................Total Deposit
13        2024....................................$200,000,000
14        2025....................................$206,000,000
15        2026....................................$212,200,000
16        2027....................................$218,500,000
17        2028....................................$225,100,000
18        2029....................................$288,700,000
19        2030....................................$298,900,000
20        2031....................................$309,300,000
21        2032....................................$320,100,000
22        2033....................................$331,200,000
23        2034....................................$341,200,000
24        2035....................................$351,400,000
25        2036....................................$361,900,000
26        2037....................................$372,800,000

 

 

10300HB3857sam001- 41 -LRB103 27764 HLH 62310 a

1        2038....................................$384,000,000
2        2039....................................$395,500,000
3        2040....................................$407,400,000
4        2041....................................$419,600,000
5        2042....................................$432,200,000
6        2043....................................$445,100,000
7    Beginning July 1, 2021 and until July 1, 2022, subject to
8the payment of amounts into the State and Local Sales Tax
9Reform Fund, the Build Illinois Fund, the McCormick Place
10Expansion Project Fund, the Illinois Tax Increment Fund, the
11Energy Infrastructure Fund, and the Tax Compliance and
12Administration Fund as provided in this Section, the
13Department shall pay each month into the Road Fund the amount
14estimated to represent 16% of the net revenue realized from
15the taxes imposed on motor fuel and gasohol. Beginning July 1,
162022 and until July 1, 2023, subject to the payment of amounts
17into the State and Local Sales Tax Reform Fund, the Build
18Illinois Fund, the McCormick Place Expansion Project Fund, the
19Illinois Tax Increment Fund, the Energy Infrastructure Fund,
20and the Tax Compliance and Administration Fund as provided in
21this Section, the Department shall pay each month into the
22Road Fund the amount estimated to represent 32% of the net
23revenue realized from the taxes imposed on motor fuel and
24gasohol. Beginning July 1, 2023 and until July 1, 2024,
25subject to the payment of amounts into the State and Local
26Sales Tax Reform Fund, the Build Illinois Fund, the McCormick

 

 

10300HB3857sam001- 42 -LRB103 27764 HLH 62310 a

1Place Expansion Project Fund, the Illinois Tax Increment Fund,
2the Energy Infrastructure Fund, and the Tax Compliance and
3Administration Fund as provided in this Section, the
4Department shall pay each month into the Road Fund the amount
5estimated to represent 48% of the net revenue realized from
6the taxes imposed on motor fuel and gasohol. Beginning July 1,
72024 and until July 1, 2025, subject to the payment of amounts
8into the State and Local Sales Tax Reform Fund, the Build
9Illinois Fund, the McCormick Place Expansion Project Fund, the
10Illinois Tax Increment Fund, the Energy Infrastructure Fund,
11and the Tax Compliance and Administration Fund as provided in
12this Section, the Department shall pay each month into the
13Road Fund the amount estimated to represent 64% of the net
14revenue realized from the taxes imposed on motor fuel and
15gasohol. Beginning on July 1, 2025, subject to the payment of
16amounts into the State and Local Sales Tax Reform Fund, the
17Build Illinois Fund, the McCormick Place Expansion Project
18Fund, the Illinois Tax Increment Fund, the Energy
19Infrastructure Fund, and the Tax Compliance and Administration
20Fund as provided in this Section, the Department shall pay
21each month into the Road Fund the amount estimated to
22represent 80% of the net revenue realized from the taxes
23imposed on motor fuel and gasohol. As used in this paragraph
24"motor fuel" has the meaning given to that term in Section 1.1
25of the Motor Fuel Tax Law, and "gasohol" has the meaning given
26to that term in Section 3-40 of this Act.

 

 

10300HB3857sam001- 43 -LRB103 27764 HLH 62310 a

1    Of the remainder of the moneys received by the Department
2pursuant to this Act, 75% thereof shall be paid into the State
3Treasury and 25% shall be reserved in a special account and
4used only for the transfer to the Common School Fund as part of
5the monthly transfer from the General Revenue Fund in
6accordance with Section 8a of the State Finance Act.
7    As soon as possible after the first day of each month, upon
8certification of the Department of Revenue, the Comptroller
9shall order transferred and the Treasurer shall transfer from
10the General Revenue Fund to the Motor Fuel Tax Fund an amount
11equal to 1.7% of 80% of the net revenue realized under this Act
12for the second preceding month. Beginning April 1, 2000, this
13transfer is no longer required and shall not be made.
14    Net revenue realized for a month shall be the revenue
15collected by the State pursuant to this Act, less the amount
16paid out during that month as refunds to taxpayers for
17overpayment of liability.
18    For greater simplicity of administration, manufacturers,
19importers and wholesalers whose products are sold at retail in
20Illinois by numerous retailers, and who wish to do so, may
21assume the responsibility for accounting and paying to the
22Department all tax accruing under this Act with respect to
23such sales, if the retailers who are affected do not make
24written objection to the Department to this arrangement.
25(Source: P.A. 101-10, Article 15, Section 15-10, eff. 6-5-19;
26101-10, Article 25, Section 25-105, eff. 6-5-19; 101-27, eff.

 

 

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16-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
2101-636, eff. 6-10-20; 102-700, Article 60, Section 60-15,
3eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
4102-1019, eff. 1-1-23; revised 12-13-22.)
 
5    Section 10. The Service Use Tax Act is amended by changing
6Sections 3-10 and 9 as follows:
 
7    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
8    Sec. 3-10. Rate of tax. Unless otherwise provided in this
9Section, the tax imposed by this Act is at the rate of 6.25% of
10the selling price of tangible personal property transferred as
11an incident to the sale of service, but, for the purpose of
12computing this tax, in no event shall the selling price be less
13than the cost price of the property to the serviceman.
14    Beginning on July 1, 2000 and through December 31, 2000,
15with respect to motor fuel, as defined in Section 1.1 of the
16Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
17the Use Tax Act, the tax is imposed at the rate of 1.25%.
18    With respect to gasohol, as defined in the Use Tax Act, the
19tax imposed by this Act applies to (i) 70% of the selling price
20of property transferred as an incident to the sale of service
21on or after January 1, 1990, and before July 1, 2003, (ii) 80%
22of the selling price of property transferred as an incident to
23the sale of service on or after July 1, 2003 and on or before
24July 1, 2017, and (iii) 100% of the selling price thereafter.

 

 

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1If, at any time, however, the tax under this Act on sales of
2gasohol, as defined in the Use Tax Act, is imposed at the rate
3of 1.25%, then the tax imposed by this Act applies to 100% of
4the proceeds of sales of gasohol made during that time.
5    With respect to majority blended ethanol fuel, as defined
6in the Use Tax Act, the tax imposed by this Act does not apply
7to the selling price of property transferred as an incident to
8the sale of service on or after July 1, 2003 and on or before
9December 31, 2023 but applies to 100% of the selling price
10thereafter.
11    With respect to biodiesel blends, as defined in the Use
12Tax Act, with no less than 1% and no more than 10% biodiesel,
13the tax imposed by this Act applies to (i) 80% of the selling
14price of property transferred as an incident to the sale of
15service on or after July 1, 2003 and on or before December 31,
162018 and (ii) 100% of the proceeds of the selling price after
17December 31, 2018 and before January 1, 2024. On and after
18January 1, 2024 and on or before December 31, 2030, the
19taxation of biodiesel, renewable diesel, and biodiesel blends
20shall be as provided in Section 3-5.1 of the Use Tax Act. If,
21at any time, however, the tax under this Act on sales of
22biodiesel blends, as defined in the Use Tax Act, with no less
23than 1% and no more than 10% biodiesel is imposed at the rate
24of 1.25%, then the tax imposed by this Act applies to 100% of
25the proceeds of sales of biodiesel blends with no less than 1%
26and no more than 10% biodiesel made during that time.

 

 

10300HB3857sam001- 46 -LRB103 27764 HLH 62310 a

1    With respect to biodiesel, as defined in the Use Tax Act,
2and biodiesel blends, as defined in the Use Tax Act, with more
3than 10% but no more than 99% biodiesel, the tax imposed by
4this Act does not apply to the proceeds of the selling price of
5property transferred as an incident to the sale of service on
6or after July 1, 2003 and on or before December 31, 2023. On
7and after January 1, 2024 and on or before December 31, 2030,
8the taxation of biodiesel, renewable diesel, and biodiesel
9blends shall be as provided in Section 3-5.1 of the Use Tax
10Act.
11    At the election of any registered serviceman made for each
12fiscal year, sales of service in which the aggregate annual
13cost price of tangible personal property transferred as an
14incident to the sales of service is less than 35%, or 75% in
15the case of servicemen transferring prescription drugs or
16servicemen engaged in graphic arts production, of the
17aggregate annual total gross receipts from all sales of
18service, the tax imposed by this Act shall be based on the
19serviceman's cost price of the tangible personal property
20transferred as an incident to the sale of those services.
21    Until July 1, 2022 and beginning again on July 1, 2023, the
22tax shall be imposed at the rate of 1% on food prepared for
23immediate consumption and transferred incident to a sale of
24service subject to this Act or the Service Occupation Tax Act
25by an entity licensed under the Hospital Licensing Act, the
26Nursing Home Care Act, the Assisted Living and Shared Housing

 

 

10300HB3857sam001- 47 -LRB103 27764 HLH 62310 a

1Act, the ID/DD Community Care Act, the MC/DD Act, the
2Specialized Mental Health Rehabilitation Act of 2013, or the
3Child Care Act of 1969, or an entity that holds a permit issued
4pursuant to the Life Care Facilities Act. Until July 1, 2022
5and beginning again on July 1, 2023, the tax shall also be
6imposed at the rate of 1% on food for human consumption that is
7to be consumed off the premises where it is sold (other than
8alcoholic beverages, food consisting of or infused with adult
9use cannabis, soft drinks, and food that has been prepared for
10immediate consumption and is not otherwise included in this
11paragraph).
12    Beginning on July 1, 2022 and until July 1, 2023, the tax
13shall be imposed at the rate of 0% on food prepared for
14immediate consumption and transferred incident to a sale of
15service subject to this Act or the Service Occupation Tax Act
16by an entity licensed under the Hospital Licensing Act, the
17Nursing Home Care Act, the Assisted Living and Shared Housing
18Act, the ID/DD Community Care Act, the MC/DD Act, the
19Specialized Mental Health Rehabilitation Act of 2013, or the
20Child Care Act of 1969, or an entity that holds a permit issued
21pursuant to the Life Care Facilities Act. Beginning on July 1,
222022 and until July 1, 2023, the tax shall also be imposed at
23the rate of 0% on food for human consumption that is to be
24consumed off the premises where it is sold (other than
25alcoholic beverages, food consisting of or infused with adult
26use cannabis, soft drinks, and food that has been prepared for

 

 

10300HB3857sam001- 48 -LRB103 27764 HLH 62310 a

1immediate consumption and is not otherwise included in this
2paragraph).
3    The tax shall also be imposed at the rate of 1% on
4prescription and nonprescription medicines, drugs, medical
5appliances, products classified as Class III medical devices
6by the United States Food and Drug Administration that are
7used for cancer treatment pursuant to a prescription, as well
8as any accessories and components related to those devices,
9modifications to a motor vehicle for the purpose of rendering
10it usable by a person with a disability, and insulin, blood
11sugar testing materials, syringes, and needles used by human
12diabetics. For the purposes of this Section, until September
131, 2009: the term "soft drinks" means any complete, finished,
14ready-to-use, non-alcoholic drink, whether carbonated or not,
15including, but not limited to, soda water, cola, fruit juice,
16vegetable juice, carbonated water, and all other preparations
17commonly known as soft drinks of whatever kind or description
18that are contained in any closed or sealed bottle, can,
19carton, or container, regardless of size; but "soft drinks"
20does not include coffee, tea, non-carbonated water, infant
21formula, milk or milk products as defined in the Grade A
22Pasteurized Milk and Milk Products Act, or drinks containing
2350% or more natural fruit or vegetable juice.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "soft drinks" means non-alcoholic
26beverages that contain natural or artificial sweeteners. "Soft

 

 

10300HB3857sam001- 49 -LRB103 27764 HLH 62310 a

1drinks" does do not include beverages that contain milk or
2milk products, soy, rice or similar milk substitutes, or
3greater than 50% of vegetable or fruit juice by volume.
4    Until August 1, 2009, and notwithstanding any other
5provisions of this Act, "food for human consumption that is to
6be consumed off the premises where it is sold" includes all
7food sold through a vending machine, except soft drinks and
8food products that are dispensed hot from a vending machine,
9regardless of the location of the vending machine. Beginning
10August 1, 2009, and notwithstanding any other provisions of
11this Act, "food for human consumption that is to be consumed
12off the premises where it is sold" includes all food sold
13through a vending machine, except soft drinks, candy, and food
14products that are dispensed hot from a vending machine,
15regardless of the location of the vending machine.
16    Notwithstanding any other provisions of this Act,
17beginning September 1, 2009, "food for human consumption that
18is to be consumed off the premises where it is sold" does not
19include candy. For purposes of this Section, "candy" means a
20preparation of sugar, honey, or other natural or artificial
21sweeteners in combination with chocolate, fruits, nuts or
22other ingredients or flavorings in the form of bars, drops, or
23pieces. "Candy" does not include any preparation that contains
24flour or requires refrigeration.
25    Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "nonprescription medicines and

 

 

10300HB3857sam001- 50 -LRB103 27764 HLH 62310 a

1drugs" does not include grooming and hygiene products. For
2purposes of this Section, "grooming and hygiene products"
3includes, but is not limited to, soaps and cleaning solutions,
4shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
5lotions and screens, unless those products are available by
6prescription only, regardless of whether the products meet the
7definition of "over-the-counter-drugs". For the purposes of
8this paragraph, "over-the-counter-drug" means a drug for human
9use that contains a label that identifies the product as a drug
10as required by 21 CFR C.F.R. § 201.66. The
11"over-the-counter-drug" label includes:
12        (A) a A "Drug Facts" panel; or
13        (B) a A statement of the "active ingredient(s)" with a
14    list of those ingredients contained in the compound,
15    substance or preparation.
16    Beginning on January 1, 2014 (the effective date of Public
17Act 98-122), "prescription and nonprescription medicines and
18drugs" includes medical cannabis purchased from a registered
19dispensing organization under the Compassionate Use of Medical
20Cannabis Program Act.
21    As used in this Section, "adult use cannabis" means
22cannabis subject to tax under the Cannabis Cultivation
23Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
24and does not include cannabis subject to tax under the
25Compassionate Use of Medical Cannabis Program Act.
26    Beginning on January 1, 2024, in addition to the 6.25%

 

 

10300HB3857sam001- 51 -LRB103 27764 HLH 62310 a

1general rate of tax imposed under this Act, a tax of 3% is
2imposed on the selling price of ground-based sparklers that
3are excluded from the definition of "fireworks" set forth in
4Section 2 of the Fireworks Regulation Act of Illinois.
5    If the property that is acquired from a serviceman is
6acquired outside Illinois and used outside Illinois before
7being brought to Illinois for use here and is taxable under
8this Act, the "selling price" on which the tax is computed
9shall be reduced by an amount that represents a reasonable
10allowance for depreciation for the period of prior
11out-of-state use.
12(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
13102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
1420, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
1560-20, eff. 4-19-22; revised 6-1-22.)
 
16    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
17    Sec. 9. Each serviceman required or authorized to collect
18the tax herein imposed shall pay to the Department the amount
19of such tax (except as otherwise provided) at the time when he
20is required to file his return for the period during which such
21tax was collected, less a discount of 2.1% prior to January 1,
221990 and 1.75% on and after January 1, 1990, or $5 per calendar
23year, whichever is greater, which is allowed to reimburse the
24serviceman for expenses incurred in collecting the tax,
25keeping records, preparing and filing returns, remitting the

 

 

10300HB3857sam001- 52 -LRB103 27764 HLH 62310 a

1tax and supplying data to the Department on request. When
2determining the discount allowed under this Section,
3servicemen shall include the amount of tax that would have
4been due at the 1% rate but for the 0% rate imposed under this
5amendatory Act of the 102nd General Assembly. The discount
6under this Section is not allowed for the 1.25% portion of
7taxes paid on aviation fuel that is subject to the revenue use
8requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
9discount allowed under this Section is allowed only for
10returns that are filed in the manner required by this Act. The
11Department may disallow the discount for servicemen whose
12certificate of registration is revoked at the time the return
13is filed, but only if the Department's decision to revoke the
14certificate of registration has become final. A serviceman
15need not remit that part of any tax collected by him to the
16extent that he is required to pay and does pay the tax imposed
17by the Service Occupation Tax Act with respect to his sale of
18service involving the incidental transfer by him of the same
19property.
20    Except as provided hereinafter in this Section, on or
21before the twentieth day of each calendar month, such
22serviceman shall file a return for the preceding calendar
23month in accordance with reasonable Rules and Regulations to
24be promulgated by the Department. Such return shall be filed
25on a form prescribed by the Department and shall contain such
26information as the Department may reasonably require. The

 

 

10300HB3857sam001- 53 -LRB103 27764 HLH 62310 a

1return shall include the gross receipts which were received
2during the preceding calendar month or quarter on the
3following items upon which tax would have been due but for the
40% rate imposed under this amendatory Act of the 102nd General
5Assembly: (i) food for human consumption that is to be
6consumed off the premises where it is sold (other than
7alcoholic beverages, food consisting of or infused with adult
8use cannabis, soft drinks, and food that has been prepared for
9immediate consumption); and (ii) food prepared for immediate
10consumption and transferred incident to a sale of service
11subject to this Act or the Service Occupation Tax Act by an
12entity licensed under the Hospital Licensing Act, the Nursing
13Home Care Act, the Assisted Living and Shared Housing Act, the
14ID/DD Community Care Act, the MC/DD Act, the Specialized
15Mental Health Rehabilitation Act of 2013, or the Child Care
16Act of 1969, or an entity that holds a permit issued pursuant
17to the Life Care Facilities Act. The return shall also include
18the amount of tax that would have been due on the items listed
19in the previous sentence but for the 0% rate imposed under this
20amendatory Act of the 102nd General Assembly.
21    On and after January 1, 2018, with respect to servicemen
22whose annual gross receipts average $20,000 or more, all
23returns required to be filed pursuant to this Act shall be
24filed electronically. Servicemen who demonstrate that they do
25not have access to the Internet or demonstrate hardship in
26filing electronically may petition the Department to waive the

 

 

10300HB3857sam001- 54 -LRB103 27764 HLH 62310 a

1electronic filing requirement.
2    The Department may require returns to be filed on a
3quarterly basis. If so required, a return for each calendar
4quarter shall be filed on or before the twentieth day of the
5calendar month following the end of such calendar quarter. The
6taxpayer shall also file a return with the Department for each
7of the first two months of each calendar quarter, on or before
8the twentieth day of the following calendar month, stating:
9        1. The name of the seller;
10        2. The address of the principal place of business from
11    which he engages in business as a serviceman in this
12    State;
13        3. The total amount of taxable receipts received by
14    him during the preceding calendar month, including
15    receipts from charge and time sales, but less all
16    deductions allowed by law;
17        4. The amount of credit provided in Section 2d of this
18    Act;
19        5. The amount of tax due;
20        5-5. The signature of the taxpayer; and
21        6. Such other reasonable information as the Department
22    may require.
23    Each serviceman required or authorized to collect the tax
24imposed by this Act on aviation fuel transferred as an
25incident of a sale of service in this State during the
26preceding calendar month shall, instead of reporting and

 

 

10300HB3857sam001- 55 -LRB103 27764 HLH 62310 a

1paying tax on aviation fuel as otherwise required by this
2Section, report and pay such tax on a separate aviation fuel
3tax return. The requirements related to the return shall be as
4otherwise provided in this Section. Notwithstanding any other
5provisions of this Act to the contrary, servicemen collecting
6tax on aviation fuel shall file all aviation fuel tax returns
7and shall make all aviation fuel tax payments by electronic
8means in the manner and form required by the Department. For
9purposes of this Section, "aviation fuel" means jet fuel and
10aviation gasoline.
11    If a taxpayer fails to sign a return within 30 days after
12the proper notice and demand for signature by the Department,
13the return shall be considered valid and any amount shown to be
14due on the return shall be deemed assessed.
15    Notwithstanding any other provision of this Act to the
16contrary, servicemen subject to tax on cannabis shall file all
17cannabis tax returns and shall make all cannabis tax payments
18by electronic means in the manner and form required by the
19Department.
20    Beginning October 1, 1993, a taxpayer who has an average
21monthly tax liability of $150,000 or more shall make all
22payments required by rules of the Department by electronic
23funds transfer. Beginning October 1, 1994, a taxpayer who has
24an average monthly tax liability of $100,000 or more shall
25make all payments required by rules of the Department by
26electronic funds transfer. Beginning October 1, 1995, a

 

 

10300HB3857sam001- 56 -LRB103 27764 HLH 62310 a

1taxpayer who has an average monthly tax liability of $50,000
2or more shall make all payments required by rules of the
3Department by electronic funds transfer. Beginning October 1,
42000, a taxpayer who has an annual tax liability of $200,000 or
5more shall make all payments required by rules of the
6Department by electronic funds transfer. The term "annual tax
7liability" shall be the sum of the taxpayer's liabilities
8under this Act, and under all other State and local occupation
9and use tax laws administered by the Department, for the
10immediately preceding calendar year. The term "average monthly
11tax liability" means the sum of the taxpayer's liabilities
12under this Act, and under all other State and local occupation
13and use tax laws administered by the Department, for the
14immediately preceding calendar year divided by 12. Beginning
15on October 1, 2002, a taxpayer who has a tax liability in the
16amount set forth in subsection (b) of Section 2505-210 of the
17Department of Revenue Law shall make all payments required by
18rules of the Department by electronic funds transfer.
19    Before August 1 of each year beginning in 1993, the
20Department shall notify all taxpayers required to make
21payments by electronic funds transfer. All taxpayers required
22to make payments by electronic funds transfer shall make those
23payments for a minimum of one year beginning on October 1.
24    Any taxpayer not required to make payments by electronic
25funds transfer may make payments by electronic funds transfer
26with the permission of the Department.

 

 

10300HB3857sam001- 57 -LRB103 27764 HLH 62310 a

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

 

 

10300HB3857sam001- 58 -LRB103 27764 HLH 62310 a

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

 

 

10300HB3857sam001- 59 -LRB103 27764 HLH 62310 a

1include the total tax upon the selling price of tangible
2personal property purchased for use by him as an incident to a
3sale of service, and such serviceman shall remit the amount of
4such tax to the Department when filing such return.
5    If experience indicates such action to be practicable, the
6Department may prescribe and furnish a combination or joint
7return which will enable servicemen, who are required to file
8returns hereunder and also under the Service Occupation Tax
9Act, to furnish all the return information required by both
10Acts on the one form.
11    Where the serviceman has more than one business registered
12with the Department under separate registration hereunder,
13such serviceman shall not file each return that is due as a
14single return covering all such registered businesses, but
15shall file separate returns for each such registered business.
16    Beginning January 1, 1990, each month the Department shall
17pay into the State and Local Tax Reform Fund, a special fund in
18the State Treasury, the net revenue realized for the preceding
19month from the 1% tax imposed under this Act.
20    Beginning January 1, 1990, each month the Department shall
21pay into the State and Local Sales Tax Reform Fund 20% of the
22net revenue realized for the preceding month from the 6.25%
23general rate on transfers of tangible personal property, other
24than (i) tangible personal property which is purchased outside
25Illinois at retail from a retailer and which is titled or
26registered by an agency of this State's government and (ii)

 

 

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1aviation fuel sold on or after December 1, 2019. This
2exception for aviation fuel only applies for so long as the
3revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
447133 are binding on the State.
5    For aviation fuel sold on or after December 1, 2019, each
6month the Department shall pay into the State Aviation Program
7Fund 20% of the net revenue realized for the preceding month
8from the 6.25% general rate on the selling price of aviation
9fuel, less an amount estimated by the Department to be
10required for refunds of the 20% portion of the tax on aviation
11fuel under this Act, which amount shall be deposited into the
12Aviation Fuel Sales Tax Refund Fund. The Department shall only
13pay moneys into the State Aviation Program Fund and the
14Aviation Fuel Sales Tax Refund Fund under this Act for so long
15as the revenue use requirements of 49 U.S.C. 47107(b) and 49
16U.S.C. 47133 are binding on the State.
17    Beginning August 1, 2000, each month the Department shall
18pay into the State and Local Sales Tax Reform Fund 100% of the
19net revenue realized for the preceding month from the 1.25%
20rate on the selling price of motor fuel and gasohol.
21    Beginning October 1, 2009, each month the Department shall
22pay into the Capital Projects Fund an amount that is equal to
23an amount estimated by the Department to represent 80% of the
24net revenue realized for the preceding month from the sale of
25candy, grooming and hygiene products, and soft drinks that had
26been taxed at a rate of 1% prior to September 1, 2009 but that

 

 

10300HB3857sam001- 61 -LRB103 27764 HLH 62310 a

1are now taxed at 6.25%.
2    Beginning July 1, 2013, each month the Department shall
3pay into the Underground Storage Tank Fund from the proceeds
4collected under this Act, the Use Tax Act, the Service
5Occupation Tax Act, and the Retailers' Occupation Tax Act an
6amount equal to the average monthly deficit in the Underground
7Storage Tank Fund during the prior year, as certified annually
8by the Illinois Environmental Protection Agency, but the total
9payment into the Underground Storage Tank Fund under this Act,
10the Use Tax Act, the Service Occupation Tax Act, and the
11Retailers' Occupation Tax Act shall not exceed $18,000,000 in
12any State fiscal year. As used in this paragraph, the "average
13monthly deficit" shall be equal to the difference between the
14average monthly claims for payment by the fund and the average
15monthly revenues deposited into the fund, excluding payments
16made pursuant to this paragraph.
17    Beginning July 1, 2015, of the remainder of the moneys
18received by the Department under the Use Tax Act, this Act, the
19Service Occupation Tax Act, and the Retailers' Occupation Tax
20Act, each month the Department shall deposit $500,000 into the
21State Crime Laboratory Fund.
22    Beginning on January 1, 2024, each month the Department
23shall pay into the Fireman's Annuity and Benefit Fund and the
24Firefighters' Pension Investment Fund, cumulatively, 50% of
25the net revenue realized for the preceding month from the 3%
26tax on the selling price of ground-based sparklers. The Board

 

 

10300HB3857sam001- 62 -LRB103 27764 HLH 62310 a

1of Trustees of the Firemen's Annuity and Benefit Fund and the
2Board of Trustees of the Firefighters' Pension Investment Fund
3shall each annually certify to the Department the average
4total number of participants in their respective funds for the
5immediately preceding calendar year. The certifications for
6the 2024 calendar year shall be provided as soon as possible
7after the effective date of this amendatory Act of the 103rd
8General Assembly, and the certifications for the 2025 calendar
9year and each calendar year thereafter shall be provided by
10January 15 of the calendar year for which the certification is
11made. Each of those funds shall receive a portion of the total
12net revenue required to be deposited into those funds equal to
13the particular fund's proportionate share of the total number
14of participants in both funds. The Department shall pay the
15remaining 50% of the net revenue realized for the preceding
16month from the 3% tax on the selling price of ground-based
17sparklers into the General Revenue Fund.
18    Of the remainder of the moneys received by the Department
19pursuant to this Act, (a) 1.75% thereof shall be paid into the
20Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
21and after July 1, 1989, 3.8% thereof shall be paid into the
22Build Illinois Fund; provided, however, that if in any fiscal
23year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
24may be, of the moneys received by the Department and required
25to be paid into the Build Illinois Fund pursuant to Section 3
26of the Retailers' Occupation Tax Act, Section 9 of the Use Tax

 

 

10300HB3857sam001- 63 -LRB103 27764 HLH 62310 a

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

 

 

10300HB3857sam001- 64 -LRB103 27764 HLH 62310 a

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

 

 

10300HB3857sam001- 65 -LRB103 27764 HLH 62310 a

1of the preceding sentence. The moneys received by the
2Department pursuant to this Act and required to be deposited
3into the Build Illinois Fund are subject to the pledge, claim
4and charge set forth in Section 12 of the Build Illinois Bond
5Act.
6    Subject to payment of amounts into the Build Illinois Fund
7as provided in the preceding paragraph or in any amendment
8thereto hereafter enacted, the following specified monthly
9installment of the amount requested in the certificate of the
10Chairman of the Metropolitan Pier and Exposition Authority
11provided under Section 8.25f of the State Finance Act, but not
12in excess of the sums designated as "Total Deposit", shall be
13deposited in the aggregate from collections under Section 9 of
14the Use Tax Act, Section 9 of the Service Use Tax Act, Section
159 of the Service Occupation Tax Act, and Section 3 of the
16Retailers' Occupation Tax Act into the McCormick Place
17Expansion Project Fund in the specified fiscal years.
 
18Fiscal YearTotal Deposit
191993         $0
201994 53,000,000
211995 58,000,000
221996 61,000,000
231997 64,000,000
241998 68,000,000
251999 71,000,000

 

 

10300HB3857sam001- 66 -LRB103 27764 HLH 62310 a

12000 75,000,000
22001 80,000,000
32002 93,000,000
42003 99,000,000
52004103,000,000
62005108,000,000
72006113,000,000
82007119,000,000
92008126,000,000
102009132,000,000
112010139,000,000
122011146,000,000
132012153,000,000
142013161,000,000
152014170,000,000
162015179,000,000
172016189,000,000
182017199,000,000
192018210,000,000
202019221,000,000
212020233,000,000
222021300,000,000
232022300,000,000
242023300,000,000
252024 300,000,000
262025 300,000,000

 

 

10300HB3857sam001- 67 -LRB103 27764 HLH 62310 a

12026 300,000,000
22027 375,000,000
32028 375,000,000
42029 375,000,000
52030 375,000,000
62031 375,000,000
72032 375,000,000
82033 375,000,000
92034375,000,000
102035375,000,000
112036450,000,000
12and
13each fiscal year
14thereafter that bonds
15are outstanding under
16Section 13.2 of the
17Metropolitan Pier and
18Exposition Authority Act,
19but not after fiscal year 2060.
20    Beginning July 20, 1993 and in each month of each fiscal
21year thereafter, one-eighth of the amount requested in the
22certificate of the Chairman of the Metropolitan Pier and
23Exposition Authority for that fiscal year, less the amount
24deposited into the McCormick Place Expansion Project Fund by
25the State Treasurer in the respective month under subsection
26(g) of Section 13 of the Metropolitan Pier and Exposition

 

 

10300HB3857sam001- 68 -LRB103 27764 HLH 62310 a

1Authority Act, plus cumulative deficiencies in the deposits
2required under this Section for previous months and years,
3shall be deposited into the McCormick Place Expansion Project
4Fund, until the full amount requested for the fiscal year, but
5not in excess of the amount specified above as "Total
6Deposit", has been deposited.
7    Subject to payment of amounts into the Capital Projects
8Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, for aviation fuel sold on or after December 1, 2019,
12the Department shall each month deposit into the Aviation Fuel
13Sales Tax Refund Fund an amount estimated by the Department to
14be required for refunds of the 80% portion of the tax on
15aviation fuel under this Act. The Department shall only
16deposit moneys into the Aviation Fuel Sales Tax Refund Fund
17under this paragraph for so long as the revenue use
18requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
19binding on the State.
20    Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning July 1, 1993 and ending on September 30,
242013, the Department shall each month pay into the Illinois
25Tax Increment Fund 0.27% of 80% of the net revenue realized for
26the preceding month from the 6.25% general rate on the selling

 

 

10300HB3857sam001- 69 -LRB103 27764 HLH 62310 a

1price of tangible personal property.
2    Subject to payment of amounts into the Build Illinois Fund
3and the McCormick Place Expansion Project Fund pursuant to the
4preceding paragraphs or in any amendments thereto hereafter
5enacted, beginning with the receipt of the first report of
6taxes paid by an eligible business and continuing for a
725-year period, the Department shall each month pay into the
8Energy Infrastructure Fund 80% of the net revenue realized
9from the 6.25% general rate on the selling price of
10Illinois-mined coal that was sold to an eligible business. For
11purposes of this paragraph, the term "eligible business" means
12a new electric generating facility certified pursuant to
13Section 605-332 of the Department of Commerce and Economic
14Opportunity Law of the Civil Administrative Code of Illinois.
15    Subject to payment of amounts into the Build Illinois
16Fund, the McCormick Place Expansion Project Fund, the Illinois
17Tax Increment Fund, and the Energy Infrastructure Fund
18pursuant to the preceding paragraphs or in any amendments to
19this Section hereafter enacted, beginning on the first day of
20the first calendar month to occur on or after August 26, 2014
21(the effective date of Public Act 98-1098), each month, from
22the collections made under Section 9 of the Use Tax Act,
23Section 9 of the Service Use Tax Act, Section 9 of the Service
24Occupation Tax Act, and Section 3 of the Retailers' Occupation
25Tax Act, the Department shall pay into the Tax Compliance and
26Administration Fund, to be used, subject to appropriation, to

 

 

10300HB3857sam001- 70 -LRB103 27764 HLH 62310 a

1fund additional auditors and compliance personnel at the
2Department of Revenue, an amount equal to 1/12 of 5% of 80% of
3the cash receipts collected during the preceding fiscal year
4by the Audit Bureau of the Department under the Use Tax Act,
5the Service Use Tax Act, the Service Occupation Tax Act, the
6Retailers' Occupation Tax Act, and associated local occupation
7and use taxes administered by the Department.
8    Subject to payments of amounts into the Build Illinois
9Fund, the McCormick Place Expansion Project Fund, the Illinois
10Tax Increment Fund, the Energy Infrastructure Fund, and the
11Tax Compliance and Administration Fund as provided in this
12Section, beginning on July 1, 2018 the Department shall pay
13each month into the Downstate Public Transportation Fund the
14moneys required to be so paid under Section 2-3 of the
15Downstate Public Transportation Act.
16    Subject to successful execution and delivery of a
17public-private agreement between the public agency and private
18entity and completion of the civic build, beginning on July 1,
192023, of the remainder of the moneys received by the
20Department under the Use Tax Act, the Service Use Tax Act, the
21Service Occupation Tax Act, and this Act, the Department shall
22deposit the following specified deposits in the aggregate from
23collections under the Use Tax Act, the Service Use Tax Act, the
24Service Occupation Tax Act, and the Retailers' Occupation Tax
25Act, as required under Section 8.25g of the State Finance Act
26for distribution consistent with the Public-Private

 

 

10300HB3857sam001- 71 -LRB103 27764 HLH 62310 a

1Partnership for Civic and Transit Infrastructure Project Act.
2The moneys received by the Department pursuant to this Act and
3required to be deposited into the Civic and Transit
4Infrastructure Fund are subject to the pledge, claim, and
5charge set forth in Section 25-55 of the Public-Private
6Partnership for Civic and Transit Infrastructure Project Act.
7As used in this paragraph, "civic build", "private entity",
8"public-private agreement", and "public agency" have the
9meanings provided in Section 25-10 of the Public-Private
10Partnership for Civic and Transit Infrastructure Project Act.
11        Fiscal Year............................Total Deposit
12        2024....................................$200,000,000
13        2025....................................$206,000,000
14        2026....................................$212,200,000
15        2027....................................$218,500,000
16        2028....................................$225,100,000
17        2029....................................$288,700,000
18        2030....................................$298,900,000
19        2031....................................$309,300,000
20        2032....................................$320,100,000
21        2033....................................$331,200,000
22        2034....................................$341,200,000
23        2035....................................$351,400,000
24        2036....................................$361,900,000
25        2037....................................$372,800,000
26        2038....................................$384,000,000

 

 

10300HB3857sam001- 72 -LRB103 27764 HLH 62310 a

1        2039....................................$395,500,000
2        2040....................................$407,400,000
3        2041....................................$419,600,000
4        2042....................................$432,200,000
5        2043....................................$445,100,000
6    Beginning July 1, 2021 and until July 1, 2022, subject to
7the payment of amounts into the State and Local Sales Tax
8Reform Fund, the Build Illinois Fund, the McCormick Place
9Expansion Project Fund, the Illinois Tax Increment Fund, the
10Energy Infrastructure Fund, and the Tax Compliance and
11Administration Fund as provided in this Section, the
12Department shall pay each month into the Road Fund the amount
13estimated to represent 16% of the net revenue realized from
14the taxes imposed on motor fuel and gasohol. Beginning July 1,
152022 and until July 1, 2023, subject to the payment of amounts
16into the State and Local Sales Tax Reform Fund, the Build
17Illinois Fund, the McCormick Place Expansion Project Fund, the
18Illinois Tax Increment Fund, the Energy Infrastructure Fund,
19and the Tax Compliance and Administration Fund as provided in
20this Section, the Department shall pay each month into the
21Road Fund the amount estimated to represent 32% of the net
22revenue realized from the taxes imposed on motor fuel and
23gasohol. Beginning July 1, 2023 and until July 1, 2024,
24subject to the payment of amounts into the State and Local
25Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
26Place Expansion Project Fund, the Illinois Tax Increment Fund,

 

 

10300HB3857sam001- 73 -LRB103 27764 HLH 62310 a

1the Energy Infrastructure Fund, and the Tax Compliance and
2Administration Fund as provided in this Section, the
3Department shall pay each month into the Road Fund the amount
4estimated to represent 48% of the net revenue realized from
5the taxes imposed on motor fuel and gasohol. Beginning July 1,
62024 and until July 1, 2025, subject to the payment of amounts
7into the State and Local Sales Tax Reform Fund, the Build
8Illinois Fund, the McCormick Place Expansion Project Fund, the
9Illinois Tax Increment Fund, the Energy Infrastructure Fund,
10and the Tax Compliance and Administration Fund as provided in
11this Section, the Department shall pay each month into the
12Road Fund the amount estimated to represent 64% of the net
13revenue realized from the taxes imposed on motor fuel and
14gasohol. Beginning on July 1, 2025, subject to the payment of
15amounts into the State and Local Sales Tax Reform Fund, the
16Build Illinois Fund, the McCormick Place Expansion Project
17Fund, the Illinois Tax Increment Fund, the Energy
18Infrastructure Fund, and the Tax Compliance and Administration
19Fund as provided in this Section, the Department shall pay
20each month into the Road Fund the amount estimated to
21represent 80% of the net revenue realized from the taxes
22imposed on motor fuel and gasohol. As used in this paragraph
23"motor fuel" has the meaning given to that term in Section 1.1
24of the Motor Fuel Tax Law, and "gasohol" has the meaning given
25to that term in Section 3-40 of the Use Tax Act.
26    Of the remainder of the moneys received by the Department

 

 

10300HB3857sam001- 74 -LRB103 27764 HLH 62310 a

1pursuant to this Act, 75% thereof shall be paid into the
2General Revenue Fund of the State Treasury and 25% shall be
3reserved in a special account and used only for the transfer to
4the Common School Fund as part of the monthly transfer from the
5General Revenue Fund in accordance with Section 8a of the
6State Finance Act.
7    As soon as possible after the first day of each month, upon
8certification of the Department of Revenue, the Comptroller
9shall order transferred and the Treasurer shall transfer from
10the General Revenue Fund to the Motor Fuel Tax Fund an amount
11equal to 1.7% of 80% of the net revenue realized under this Act
12for the second preceding month. Beginning April 1, 2000, this
13transfer is no longer required and shall not be made.
14    Net revenue realized for a month shall be the revenue
15collected by the State pursuant to this Act, less the amount
16paid out during that month as refunds to taxpayers for
17overpayment of liability.
18(Source: P.A. 101-10, Article 15, Section 15-15, eff. 6-5-19;
19101-10, Article 25, Section 25-110, eff. 6-5-19; 101-27, eff.
206-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
21101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)
 
22    Section 15. The Service Occupation Tax Act is amended by
23changing Sections 3-10 and 9 as follows:
 
24    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)

 

 

10300HB3857sam001- 75 -LRB103 27764 HLH 62310 a

1    Sec. 3-10. Rate of tax. Unless otherwise provided in this
2Section, the tax imposed by this Act is at the rate of 6.25% of
3the "selling price", as defined in Section 2 of the Service Use
4Tax Act, of the tangible personal property. For the purpose of
5computing this tax, in no event shall the "selling price" be
6less than the cost price to the serviceman of the tangible
7personal property transferred. The selling price of each item
8of tangible personal property transferred as an incident of a
9sale of service may be shown as a distinct and separate item on
10the serviceman's billing to the service customer. If the
11selling price is not so shown, the selling price of the
12tangible personal property is deemed to be 50% of the
13serviceman's entire billing to the service customer. When,
14however, a serviceman contracts to design, develop, and
15produce special order machinery or equipment, the tax imposed
16by this Act shall be based on the serviceman's cost price of
17the tangible personal property transferred incident to the
18completion of the contract.
19    Beginning on July 1, 2000 and through December 31, 2000,
20with respect to motor fuel, as defined in Section 1.1 of the
21Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
22the Use Tax Act, the tax is imposed at the rate of 1.25%.
23    With respect to gasohol, as defined in the Use Tax Act, the
24tax imposed by this Act shall apply to (i) 70% of the cost
25price of property transferred as an incident to the sale of
26service on or after January 1, 1990, and before July 1, 2003,

 

 

10300HB3857sam001- 76 -LRB103 27764 HLH 62310 a

1(ii) 80% of the selling price of property transferred as an
2incident to the sale of service on or after July 1, 2003 and on
3or before July 1, 2017, and (iii) 100% of the cost price
4thereafter. If, at any time, however, the tax under this Act on
5sales of gasohol, as defined in the Use Tax Act, is imposed at
6the rate of 1.25%, then the tax imposed by this Act applies to
7100% of the proceeds of sales of gasohol made during that time.
8    With respect to majority blended ethanol fuel, as defined
9in the Use Tax Act, the tax imposed by this Act does not apply
10to the selling price of property transferred as an incident to
11the sale of service on or after July 1, 2003 and on or before
12December 31, 2023 but applies to 100% of the selling price
13thereafter.
14    With respect to biodiesel blends, as defined in the Use
15Tax Act, with no less than 1% and no more than 10% biodiesel,
16the tax imposed by this Act applies to (i) 80% of the selling
17price of property transferred as an incident to the sale of
18service on or after July 1, 2003 and on or before December 31,
192018 and (ii) 100% of the proceeds of the selling price after
20December 31, 2018 and before January 1, 2024. On and after
21January 1, 2024 and on or before December 31, 2030, the
22taxation of biodiesel, renewable diesel, and biodiesel blends
23shall be as provided in Section 3-5.1 of the Use Tax Act. If,
24at any time, however, the tax under this Act on sales of
25biodiesel blends, as defined in the Use Tax Act, with no less
26than 1% and no more than 10% biodiesel is imposed at the rate

 

 

10300HB3857sam001- 77 -LRB103 27764 HLH 62310 a

1of 1.25%, then the tax imposed by this Act applies to 100% of
2the proceeds of sales of biodiesel blends with no less than 1%
3and no more than 10% biodiesel made during that time.
4    With respect to biodiesel, as defined in the Use Tax Act,
5and biodiesel blends, as defined in the Use Tax Act, with more
6than 10% but no more than 99% biodiesel material, the tax
7imposed by this Act does not apply to the proceeds of the
8selling price of property transferred as an incident to the
9sale of service on or after July 1, 2003 and on or before
10December 31, 2023. On and after January 1, 2024 and on or
11before December 31, 2030, the taxation of biodiesel, renewable
12diesel, and biodiesel blends shall be as provided in Section
133-5.1 of the Use Tax Act.
14    At the election of any registered serviceman made for each
15fiscal year, sales of service in which the aggregate annual
16cost price of tangible personal property transferred as an
17incident to the sales of service is less than 35%, or 75% in
18the case of servicemen transferring prescription drugs or
19servicemen engaged in graphic arts production, of the
20aggregate annual total gross receipts from all sales of
21service, the tax imposed by this Act shall be based on the
22serviceman's cost price of the tangible personal property
23transferred incident to the sale of those services.
24    Until July 1, 2022 and beginning again on July 1, 2023, the
25tax shall be imposed at the rate of 1% on food prepared for
26immediate consumption and transferred incident to a sale of

 

 

10300HB3857sam001- 78 -LRB103 27764 HLH 62310 a

1service subject to this Act or the Service Use Tax Act by an
2entity licensed under the Hospital Licensing Act, the Nursing
3Home Care Act, the Assisted Living and Shared Housing Act, the
4ID/DD Community Care Act, the MC/DD Act, the Specialized
5Mental Health Rehabilitation Act of 2013, or the Child Care
6Act of 1969, or an entity that holds a permit issued pursuant
7to the Life Care Facilities Act. Until July 1, 2022 and
8beginning again on July 1, 2023, the tax shall also be imposed
9at the rate of 1% on food for human consumption that is to be
10consumed off the premises where it is sold (other than
11alcoholic beverages, food consisting of or infused with adult
12use cannabis, soft drinks, and food that has been prepared for
13immediate consumption and is not otherwise included in this
14paragraph).
15    Beginning on July 1, 2022 and until July 1, 2023, the tax
16shall be imposed at the rate of 0% on food prepared for
17immediate consumption and transferred incident to a sale of
18service subject to this Act or the Service Use Tax Act by an
19entity licensed under the Hospital Licensing Act, the Nursing
20Home Care Act, the Assisted Living and Shared Housing Act, the
21ID/DD Community Care Act, the MC/DD Act, the Specialized
22Mental Health Rehabilitation Act of 2013, or the Child Care
23Act of 1969, or an entity that holds a permit issued pursuant
24to the Life Care Facilities Act. Beginning July 1, 2022 and
25until July 1, 2023, the tax shall also be imposed at the rate
26of 0% on food for human consumption that is to be consumed off

 

 

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1the premises where it is sold (other than alcoholic beverages,
2food consisting of or infused with adult use cannabis, soft
3drinks, and food that has been prepared for immediate
4consumption and is not otherwise included in this paragraph).
5    The tax shall also be imposed at the rate of 1% on
6prescription and nonprescription medicines, drugs, medical
7appliances, products classified as Class III medical devices
8by the United States Food and Drug Administration that are
9used for cancer treatment pursuant to a prescription, as well
10as any accessories and components related to those devices,
11modifications to a motor vehicle for the purpose of rendering
12it usable by a person with a disability, and insulin, blood
13sugar testing materials, syringes, and needles used by human
14diabetics. For the purposes of this Section, until September
151, 2009: the term "soft drinks" means any complete, finished,
16ready-to-use, non-alcoholic drink, whether carbonated or not,
17including, but not limited to, soda water, cola, fruit juice,
18vegetable juice, carbonated water, and all other preparations
19commonly known as soft drinks of whatever kind or description
20that are contained in any closed or sealed can, carton, or
21container, regardless of size; but "soft drinks" does not
22include coffee, tea, non-carbonated water, infant formula,
23milk or milk products as defined in the Grade A Pasteurized
24Milk and Milk Products Act, or drinks containing 50% or more
25natural fruit or vegetable juice.
26    Notwithstanding any other provisions of this Act,

 

 

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1beginning September 1, 2009, "soft drinks" means non-alcoholic
2beverages that contain natural or artificial sweeteners. "Soft
3drinks" does do not include beverages that contain milk or
4milk products, soy, rice or similar milk substitutes, or
5greater than 50% of vegetable or fruit juice by volume.
6    Until August 1, 2009, and notwithstanding any other
7provisions of this Act, "food for human consumption that is to
8be consumed off the premises where it is sold" includes all
9food sold through a vending machine, except soft drinks and
10food products that are dispensed hot from a vending machine,
11regardless of the location of the vending machine. Beginning
12August 1, 2009, and notwithstanding any other provisions of
13this Act, "food for human consumption that is to be consumed
14off the premises where it is sold" includes all food sold
15through a vending machine, except soft drinks, candy, and food
16products that are dispensed hot from a vending machine,
17regardless of the location of the vending machine.
18    Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "food for human consumption that
20is to be consumed off the premises where it is sold" does not
21include candy. For purposes of this Section, "candy" means a
22preparation of sugar, honey, or other natural or artificial
23sweeteners in combination with chocolate, fruits, nuts or
24other ingredients or flavorings in the form of bars, drops, or
25pieces. "Candy" does not include any preparation that contains
26flour or requires refrigeration.

 

 

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1    Notwithstanding any other provisions of this Act,
2beginning September 1, 2009, "nonprescription medicines and
3drugs" does not include grooming and hygiene products. For
4purposes of this Section, "grooming and hygiene products"
5includes, but is not limited to, soaps and cleaning solutions,
6shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
7lotions and screens, unless those products are available by
8prescription only, regardless of whether the products meet the
9definition of "over-the-counter-drugs". For the purposes of
10this paragraph, "over-the-counter-drug" means a drug for human
11use that contains a label that identifies the product as a drug
12as required by 21 CFR C.F.R. § 201.66. The
13"over-the-counter-drug" label includes:
14        (A) a A "Drug Facts" panel; or
15        (B) a A statement of the "active ingredient(s)" with a
16    list of those ingredients contained in the compound,
17    substance or preparation.
18    Beginning on January 1, 2014 (the effective date of Public
19Act 98-122), "prescription and nonprescription medicines and
20drugs" includes medical cannabis purchased from a registered
21dispensing organization under the Compassionate Use of Medical
22Cannabis Program Act.
23    As used in this Section, "adult use cannabis" means
24cannabis subject to tax under the Cannabis Cultivation
25Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
26and does not include cannabis subject to tax under the

 

 

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1Compassionate Use of Medical Cannabis Program Act.
2    Beginning on January 1, 2024, in addition to the 6.25%
3general rate of tax imposed under this Act, a tax of 3% is
4imposed on the selling price of ground-based sparklers that
5are excluded from the definition of "fireworks" set forth in
6Section 2 of the Fireworks Regulation Act of Illinois.
7(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
8102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
920, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
1060-25, eff. 4-19-22; revised 6-1-22.)
 
11    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
12    Sec. 9. Each serviceman required or authorized to collect
13the tax herein imposed shall pay to the Department the amount
14of such tax at the time when he is required to file his return
15for the period during which such tax was collectible, less a
16discount of 2.1% prior to January 1, 1990, and 1.75% on and
17after January 1, 1990, or $5 per calendar year, whichever is
18greater, which is allowed to reimburse the serviceman for
19expenses incurred in collecting the tax, keeping records,
20preparing and filing returns, remitting the tax and supplying
21data to the Department on request. When determining the
22discount allowed under this Section, servicemen shall include
23the amount of tax that would have been due at the 1% rate but
24for the 0% rate imposed under this amendatory Act of the 102nd
25General Assembly. The discount under this Section is not

 

 

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1allowed for the 1.25% portion of taxes paid on aviation fuel
2that is subject to the revenue use requirements of 49 U.S.C.
347107(b) and 49 U.S.C. 47133. The discount allowed under this
4Section is allowed only for returns that are filed in the
5manner required by this Act. The Department may disallow the
6discount for servicemen whose certificate of registration is
7revoked at the time the return is filed, but only if the
8Department's decision to revoke the certificate of
9registration has become final.
10    Where such tangible personal property is sold under a
11conditional sales contract, or under any other form of sale
12wherein the payment of the principal sum, or a part thereof, is
13extended beyond the close of the period for which the return is
14filed, the serviceman, in collecting the tax may collect, for
15each tax return period, only the tax applicable to the part of
16the selling price actually received during such tax return
17period.
18    Except as provided hereinafter in this Section, on or
19before the twentieth day of each calendar month, such
20serviceman shall file a return for the preceding calendar
21month in accordance with reasonable rules and regulations to
22be promulgated by the Department of Revenue. Such return shall
23be filed on a form prescribed by the Department and shall
24contain such information as the Department may reasonably
25require. The return shall include the gross receipts which
26were received during the preceding calendar month or quarter

 

 

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1on the following items upon which tax would have been due but
2for the 0% rate imposed under this amendatory Act of the 102nd
3General Assembly: (i) food for human consumption that is to be
4consumed off the premises where it is sold (other than
5alcoholic beverages, food consisting of or infused with adult
6use cannabis, soft drinks, and food that has been prepared for
7immediate consumption); and (ii) food prepared for immediate
8consumption and transferred incident to a sale of service
9subject to this Act or the Service Use Tax Act by an entity
10licensed under the Hospital Licensing Act, the Nursing Home
11Care Act, the Assisted Living and Shared Housing Act, the
12ID/DD Community Care Act, the MC/DD Act, the Specialized
13Mental Health Rehabilitation Act of 2013, or the Child Care
14Act of 1969, or an entity that holds a permit issued pursuant
15to the Life Care Facilities Act. The return shall also include
16the amount of tax that would have been due on the items listed
17in the previous sentence but for the 0% rate imposed under this
18amendatory Act of the 102nd General Assembly.
19    On and after January 1, 2018, with respect to servicemen
20whose annual gross receipts average $20,000 or more, all
21returns required to be filed pursuant to this Act shall be
22filed electronically. Servicemen who demonstrate that they do
23not have access to the Internet or demonstrate hardship in
24filing electronically may petition the Department to waive the
25electronic filing requirement.
26    The Department may require returns to be filed on a

 

 

10300HB3857sam001- 85 -LRB103 27764 HLH 62310 a

1quarterly basis. If so required, a return for each calendar
2quarter shall be filed on or before the twentieth day of the
3calendar month following the end of such calendar quarter. The
4taxpayer shall also file a return with the Department for each
5of the first two months of each calendar quarter, on or before
6the twentieth day of the following calendar month, stating:
7        1. The name of the seller;
8        2. The address of the principal place of business from
9    which he engages in business as a serviceman in this
10    State;
11        3. The total amount of taxable receipts received by
12    him during the preceding calendar month, including
13    receipts from charge and time sales, but less all
14    deductions allowed by law;
15        4. The amount of credit provided in Section 2d of this
16    Act;
17        5. The amount of tax due;
18        5-5. The signature of the taxpayer; and
19        6. Such other reasonable information as the Department
20    may require.
21    Each serviceman required or authorized to collect the tax
22herein imposed on aviation fuel acquired as an incident to the
23purchase of a service in this State during the preceding
24calendar month shall, instead of reporting and paying tax as
25otherwise required by this Section, report and pay such tax on
26a separate aviation fuel tax return. The requirements related

 

 

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1to the return shall be as otherwise provided in this Section.
2Notwithstanding any other provisions of this Act to the
3contrary, servicemen transferring aviation fuel incident to
4sales of service shall file all aviation fuel tax returns and
5shall make all aviation fuel tax payments by electronic means
6in the manner and form required by the Department. For
7purposes of this Section, "aviation fuel" means jet fuel and
8aviation gasoline.
9    If a taxpayer fails to sign a return within 30 days after
10the proper notice and demand for signature by the Department,
11the return shall be considered valid and any amount shown to be
12due on the return shall be deemed assessed.
13    Notwithstanding any other provision of this Act to the
14contrary, servicemen subject to tax on cannabis shall file all
15cannabis tax returns and shall make all cannabis tax payments
16by electronic means in the manner and form required by the
17Department.
18    Prior to October 1, 2003, and on and after September 1,
192004 a serviceman may accept a Manufacturer's Purchase Credit
20certification from a purchaser in satisfaction of Service Use
21Tax as provided in Section 3-70 of the Service Use Tax Act if
22the purchaser provides the appropriate documentation as
23required by Section 3-70 of the Service Use Tax Act. A
24Manufacturer's Purchase Credit certification, accepted prior
25to October 1, 2003 or on or after September 1, 2004 by a
26serviceman as provided in Section 3-70 of the Service Use Tax

 

 

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1Act, may be used by that serviceman to satisfy Service
2Occupation Tax liability in the amount claimed in the
3certification, not to exceed 6.25% of the receipts subject to
4tax from a qualifying purchase. A Manufacturer's Purchase
5Credit reported on any original or amended return filed under
6this Act after October 20, 2003 for reporting periods prior to
7September 1, 2004 shall be disallowed. Manufacturer's Purchase
8Credit reported on annual returns due on or after January 1,
92005 will be disallowed for periods prior to September 1,
102004. No Manufacturer's Purchase Credit may be used after
11September 30, 2003 through August 31, 2004 to satisfy any tax
12liability imposed under this Act, including any audit
13liability.
14    If the serviceman's average monthly tax liability to the
15Department does not exceed $200, the Department may authorize
16his returns to be filed on a quarter annual basis, with the
17return for January, February and March of a given year being
18due by April 20 of such year; with the return for April, May
19and June of a given year being due by July 20 of such year;
20with the return for July, August and September of a given year
21being due by October 20 of such year, and with the return for
22October, November and December of a given year being due by
23January 20 of the following year.
24    If the serviceman's average monthly tax liability to the
25Department does not exceed $50, the Department may authorize
26his returns to be filed on an annual basis, with the return for

 

 

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1a given year being due by January 20 of the following year.
2    Such quarter annual and annual returns, as to form and
3substance, shall be subject to the same requirements as
4monthly returns.
5    Notwithstanding any other provision in this Act concerning
6the time within which a serviceman may file his return, in the
7case of any serviceman who ceases to engage in a kind of
8business which makes him responsible for filing returns under
9this Act, such serviceman shall file a final return under this
10Act with the Department not more than 1 month after
11discontinuing such business.
12    Beginning October 1, 1993, a taxpayer who has an average
13monthly tax liability of $150,000 or more shall make all
14payments required by rules of the Department by electronic
15funds transfer. Beginning October 1, 1994, a taxpayer who has
16an average monthly tax liability of $100,000 or more shall
17make all payments required by rules of the Department by
18electronic funds transfer. Beginning October 1, 1995, a
19taxpayer who has an average monthly tax liability of $50,000
20or more shall make all payments required by rules of the
21Department by electronic funds transfer. Beginning October 1,
222000, a taxpayer who has an annual tax liability of $200,000 or
23more shall make all payments required by rules of the
24Department by electronic funds transfer. The term "annual tax
25liability" shall be the sum of the taxpayer's liabilities
26under this Act, and under all other State and local occupation

 

 

10300HB3857sam001- 89 -LRB103 27764 HLH 62310 a

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

 

 

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

 

 

10300HB3857sam001- 91 -LRB103 27764 HLH 62310 a

1registered business.
2    Beginning January 1, 1990, each month the Department shall
3pay into the Local Government Tax Fund the revenue realized
4for the preceding month from the 1% tax imposed under this Act.
5    Beginning January 1, 1990, each month the Department shall
6pay into the County and Mass Transit District Fund 4% of the
7revenue realized for the preceding month from the 6.25%
8general rate on sales of tangible personal property other than
9aviation fuel sold on or after December 1, 2019. This
10exception for aviation fuel only applies for so long as the
11revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1247133 are binding on the State.
13    Beginning August 1, 2000, each month the Department shall
14pay into the County and Mass Transit District Fund 20% of the
15net revenue realized for the preceding month from the 1.25%
16rate on the selling price of motor fuel and gasohol.
17    Beginning January 1, 1990, each month the Department shall
18pay into the Local Government Tax Fund 16% of the revenue
19realized for the preceding month from the 6.25% general rate
20on transfers of tangible personal property other than aviation
21fuel sold on or after December 1, 2019. This exception for
22aviation fuel only applies for so long as the revenue use
23requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
24binding on the State.
25    For aviation fuel sold on or after December 1, 2019, each
26month the Department shall pay into the State Aviation Program

 

 

10300HB3857sam001- 92 -LRB103 27764 HLH 62310 a

1Fund 20% of the net revenue realized for the preceding month
2from the 6.25% general rate on the selling price of aviation
3fuel, less an amount estimated by the Department to be
4required for refunds of the 20% portion of the tax on aviation
5fuel under this Act, which amount shall be deposited into the
6Aviation Fuel Sales Tax Refund Fund. The Department shall only
7pay moneys into the State Aviation Program Fund and the
8Aviation Fuel Sales Tax Refund Fund under this Act for so long
9as the revenue use requirements of 49 U.S.C. 47107(b) and 49
10U.S.C. 47133 are binding on the State.
11    Beginning August 1, 2000, each month the Department shall
12pay into the Local Government Tax Fund 80% of the net revenue
13realized for the preceding month from the 1.25% rate on the
14selling price of motor fuel and gasohol.
15    Beginning October 1, 2009, each month the Department shall
16pay into the Capital Projects Fund an amount that is equal to
17an amount estimated by the Department to represent 80% of the
18net revenue realized for the preceding month from the sale of
19candy, grooming and hygiene products, and soft drinks that had
20been taxed at a rate of 1% prior to September 1, 2009 but that
21are now taxed at 6.25%.
22    Beginning July 1, 2013, each month the Department shall
23pay into the Underground Storage Tank Fund from the proceeds
24collected under this Act, the Use Tax Act, the Service Use Tax
25Act, and the Retailers' Occupation Tax Act an amount equal to
26the average monthly deficit in the Underground Storage Tank

 

 

10300HB3857sam001- 93 -LRB103 27764 HLH 62310 a

1Fund during the prior year, as certified annually by the
2Illinois Environmental Protection Agency, but the total
3payment into the Underground Storage Tank Fund under this Act,
4the Use Tax Act, the Service Use Tax Act, and the Retailers'
5Occupation Tax Act shall not exceed $18,000,000 in any State
6fiscal year. As used in this paragraph, the "average monthly
7deficit" shall be equal to the difference between the average
8monthly claims for payment by the fund and the average monthly
9revenues deposited into the fund, excluding payments made
10pursuant to this paragraph.
11    Beginning July 1, 2015, of the remainder of the moneys
12received by the Department under the Use Tax Act, the Service
13Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
14each month the Department shall deposit $500,000 into the
15State Crime Laboratory Fund.
16    Beginning on January 1, 2024, each month the Department
17shall pay into the Fireman's Annuity and Benefit Fund and the
18Firefighters' Pension Investment Fund, cumulatively, 50% of
19the net revenue realized for the preceding month from the 3%
20tax on the selling price of ground-based sparklers. The Board
21of Trustees of the Firemen's Annuity and Benefit Fund and the
22Board of Trustees of the Firefighters' Pension Investment Fund
23shall each annually certify to the Department the average
24total number of participants in their respective funds for the
25immediately preceding calendar year. The certifications for
26the 2024 calendar year shall be provided as soon as possible

 

 

10300HB3857sam001- 94 -LRB103 27764 HLH 62310 a

1after the effective date of this amendatory Act of the 103rd
2General Assembly, and the certifications for the 2025 calendar
3year and each calendar year thereafter shall be provided by
4January 15 of the calendar year for which the certification is
5made. Each of those funds shall receive a portion of the total
6net revenue required to be deposited into those funds equal to
7the particular fund's proportionate share of the total number
8of participants in both funds. The Department shall pay the
9remaining 50% of the net revenue realized for the preceding
10month from the 3% tax on the selling price of ground-based
11sparklers into the General Revenue Fund.
12    Of the remainder of the moneys received by the Department
13pursuant to this Act, (a) 1.75% thereof shall be paid into the
14Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
15and after July 1, 1989, 3.8% thereof shall be paid into the
16Build Illinois Fund; provided, however, that if in any fiscal
17year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
18may be, of the moneys received by the Department and required
19to be paid into the Build Illinois Fund pursuant to Section 3
20of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
21Act, Section 9 of the Service Use Tax Act, and Section 9 of the
22Service Occupation Tax Act, such Acts being hereinafter called
23the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
24may be, of moneys being hereinafter called the "Tax Act
25Amount", and (2) the amount transferred to the Build Illinois
26Fund from the State and Local Sales Tax Reform Fund shall be

 

 

10300HB3857sam001- 95 -LRB103 27764 HLH 62310 a

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

 

 

10300HB3857sam001- 96 -LRB103 27764 HLH 62310 a

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

 

 

10300HB3857sam001- 97 -LRB103 27764 HLH 62310 a

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

 

 

10300HB3857sam001- 98 -LRB103 27764 HLH 62310 a

12006113,000,000
22007119,000,000
32008126,000,000
42009132,000,000
52010139,000,000
62011146,000,000
72012153,000,000
82013161,000,000
92014170,000,000
102015179,000,000
112016189,000,000
122017199,000,000
132018210,000,000
142019221,000,000
152020233,000,000
162021300,000,000
172022300,000,000
182023300,000,000
192024 300,000,000
202025 300,000,000
212026 300,000,000
222027 375,000,000
232028 375,000,000
242029 375,000,000
252030 375,000,000
262031 375,000,000

 

 

10300HB3857sam001- 99 -LRB103 27764 HLH 62310 a

12032 375,000,000
22033 375,000,000
32034375,000,000
42035375,000,000
52036450,000,000
6and
7each fiscal year
8thereafter that bonds
9are outstanding under
10Section 13.2 of the
11Metropolitan Pier and
12Exposition Authority Act,
13but not after fiscal year 2060.
14    Beginning July 20, 1993 and in each month of each fiscal
15year thereafter, one-eighth of the amount requested in the
16certificate of the Chairman of the Metropolitan Pier and
17Exposition Authority for that fiscal year, less the amount
18deposited into the McCormick Place Expansion Project Fund by
19the State Treasurer in the respective month under subsection
20(g) of Section 13 of the Metropolitan Pier and Exposition
21Authority Act, plus cumulative deficiencies in the deposits
22required under this Section for previous months and years,
23shall be deposited into the McCormick Place Expansion Project
24Fund, until the full amount requested for the fiscal year, but
25not in excess of the amount specified above as "Total
26Deposit", has been deposited.

 

 

10300HB3857sam001- 100 -LRB103 27764 HLH 62310 a

1    Subject to payment of amounts into the Capital Projects
2Fund, the Build Illinois Fund, and the McCormick Place
3Expansion Project Fund pursuant to the preceding paragraphs or
4in any amendments thereto hereafter enacted, for aviation fuel
5sold on or after December 1, 2019, the Department shall each
6month deposit into the Aviation Fuel Sales Tax Refund Fund an
7amount estimated by the Department to be required for refunds
8of the 80% portion of the tax on aviation fuel under this Act.
9The Department shall only deposit moneys into the Aviation
10Fuel Sales Tax Refund Fund under this paragraph for so long as
11the revenue use requirements of 49 U.S.C. 47107(b) and 49
12U.S.C. 47133 are binding on the State.
13    Subject to payment of amounts into the Build Illinois Fund
14and the McCormick Place Expansion Project Fund pursuant to the
15preceding paragraphs or in any amendments thereto hereafter
16enacted, beginning July 1, 1993 and ending on September 30,
172013, the Department shall each month pay into the Illinois
18Tax Increment Fund 0.27% of 80% of the net revenue realized for
19the preceding month from the 6.25% general rate on the selling
20price of tangible personal property.
21    Subject to payment of amounts into the Build Illinois Fund
22and the McCormick Place Expansion Project Fund pursuant to the
23preceding paragraphs or in any amendments thereto hereafter
24enacted, beginning with the receipt of the first report of
25taxes paid by an eligible business and continuing for a
2625-year period, the Department shall each month pay into the

 

 

10300HB3857sam001- 101 -LRB103 27764 HLH 62310 a

1Energy Infrastructure Fund 80% of the net revenue realized
2from the 6.25% general rate on the selling price of
3Illinois-mined coal that was sold to an eligible business. For
4purposes of this paragraph, the term "eligible business" means
5a new electric generating facility certified pursuant to
6Section 605-332 of the Department of Commerce and Economic
7Opportunity Law of the Civil Administrative Code of Illinois.
8    Subject to payment of amounts into the Build Illinois
9Fund, the McCormick Place Expansion Project Fund, the Illinois
10Tax Increment Fund, and the Energy Infrastructure Fund
11pursuant to the preceding paragraphs or in any amendments to
12this Section hereafter enacted, beginning on the first day of
13the first calendar month to occur on or after August 26, 2014
14(the effective date of Public Act 98-1098), each month, from
15the collections made under Section 9 of the Use Tax Act,
16Section 9 of the Service Use Tax Act, Section 9 of the Service
17Occupation Tax Act, and Section 3 of the Retailers' Occupation
18Tax Act, the Department shall pay into the Tax Compliance and
19Administration Fund, to be used, subject to appropriation, to
20fund additional auditors and compliance personnel at the
21Department of Revenue, an amount equal to 1/12 of 5% of 80% of
22the cash receipts collected during the preceding fiscal year
23by the Audit Bureau of the Department under the Use Tax Act,
24the Service Use Tax Act, the Service Occupation Tax Act, the
25Retailers' Occupation Tax Act, and associated local occupation
26and use taxes administered by the Department.

 

 

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1    Subject to payments of amounts into the Build Illinois
2Fund, the McCormick Place Expansion Project Fund, the Illinois
3Tax Increment Fund, the Energy Infrastructure Fund, and the
4Tax Compliance and Administration Fund as provided in this
5Section, beginning on July 1, 2018 the Department shall pay
6each month into the Downstate Public Transportation Fund the
7moneys required to be so paid under Section 2-3 of the
8Downstate Public Transportation Act.
9    Subject to successful execution and delivery of a
10public-private agreement between the public agency and private
11entity and completion of the civic build, beginning on July 1,
122023, of the remainder of the moneys received by the
13Department under the Use Tax Act, the Service Use Tax Act, the
14Service Occupation Tax Act, and this Act, the Department shall
15deposit the following specified deposits in the aggregate from
16collections under the Use Tax Act, the Service Use Tax Act, the
17Service Occupation Tax Act, and the Retailers' Occupation Tax
18Act, as required under Section 8.25g of the State Finance Act
19for distribution consistent with the Public-Private
20Partnership for Civic and Transit Infrastructure Project Act.
21The moneys received by the Department pursuant to this Act and
22required to be deposited into the Civic and Transit
23Infrastructure Fund are subject to the pledge, claim and
24charge set forth in Section 25-55 of the Public-Private
25Partnership for Civic and Transit Infrastructure Project Act.
26As used in this paragraph, "civic build", "private entity",

 

 

10300HB3857sam001- 103 -LRB103 27764 HLH 62310 a

1"public-private agreement", and "public agency" have the
2meanings provided in Section 25-10 of the Public-Private
3Partnership for Civic and Transit Infrastructure Project Act.
4        Fiscal Year............................Total Deposit
5        2024....................................$200,000,000
6        2025....................................$206,000,000
7        2026....................................$212,200,000
8        2027....................................$218,500,000
9        2028....................................$225,100,000
10        2029....................................$288,700,000
11        2030....................................$298,900,000
12        2031....................................$309,300,000
13        2032....................................$320,100,000
14        2033....................................$331,200,000
15        2034....................................$341,200,000
16        2035....................................$351,400,000
17        2036....................................$361,900,000
18        2037....................................$372,800,000
19        2038....................................$384,000,000
20        2039....................................$395,500,000
21        2040....................................$407,400,000
22        2041....................................$419,600,000
23        2042....................................$432,200,000
24        2043....................................$445,100,000
25    Beginning July 1, 2021 and until July 1, 2022, subject to
26the payment of amounts into the County and Mass Transit

 

 

10300HB3857sam001- 104 -LRB103 27764 HLH 62310 a

1District Fund, the Local Government Tax Fund, the Build
2Illinois Fund, the McCormick Place Expansion Project Fund, the
3Illinois Tax Increment Fund, the Energy Infrastructure Fund,
4and the Tax Compliance and Administration Fund as provided in
5this Section, the Department shall pay each month into the
6Road Fund the amount estimated to represent 16% of the net
7revenue realized from the taxes imposed on motor fuel and
8gasohol. Beginning July 1, 2022 and until July 1, 2023,
9subject to the payment of amounts into the County and Mass
10Transit District Fund, the Local Government Tax Fund, the
11Build Illinois Fund, the McCormick Place Expansion Project
12Fund, the Illinois Tax Increment Fund, the Energy
13Infrastructure Fund, and the Tax Compliance and Administration
14Fund as provided in this Section, the Department shall pay
15each month into the Road Fund the amount estimated to
16represent 32% of the net revenue realized from the taxes
17imposed on motor fuel and gasohol. Beginning July 1, 2023 and
18until July 1, 2024, subject to the payment of amounts into the
19County and Mass Transit District Fund, the Local Government
20Tax Fund, the Build Illinois Fund, the McCormick Place
21Expansion Project Fund, the Illinois Tax Increment Fund, the
22Energy Infrastructure Fund, and the Tax Compliance and
23Administration Fund as provided in this Section, the
24Department shall pay each month into the Road Fund the amount
25estimated to represent 48% of the net revenue realized from
26the taxes imposed on motor fuel and gasohol. Beginning July 1,

 

 

10300HB3857sam001- 105 -LRB103 27764 HLH 62310 a

12024 and until July 1, 2025, subject to the payment of amounts
2into the County and Mass Transit District Fund, the Local
3Government Tax Fund, the Build Illinois Fund, the McCormick
4Place Expansion Project Fund, the Illinois Tax Increment Fund,
5the Energy Infrastructure Fund, and the Tax Compliance and
6Administration Fund as provided in this Section, the
7Department shall pay each month into the Road Fund the amount
8estimated to represent 64% of the net revenue realized from
9the taxes imposed on motor fuel and gasohol. Beginning on July
101, 2025, subject to the payment of amounts into the County and
11Mass Transit District Fund, the Local Government Tax Fund, the
12Build Illinois Fund, the McCormick Place Expansion Project
13Fund, the Illinois Tax Increment Fund, the Energy
14Infrastructure Fund, and the Tax Compliance and Administration
15Fund as provided in this Section, the Department shall pay
16each month into the Road Fund the amount estimated to
17represent 80% of the net revenue realized from the taxes
18imposed on motor fuel and gasohol. As used in this paragraph
19"motor fuel" has the meaning given to that term in Section 1.1
20of the Motor Fuel Tax Law, and "gasohol" has the meaning given
21to that term in Section 3-40 of the Use Tax Act.
22    Of the remainder of the moneys received by the Department
23pursuant to this Act, 75% shall be paid into the General
24Revenue Fund of the State Treasury and 25% shall be reserved in
25a special account and used only for the transfer to the Common
26School Fund as part of the monthly transfer from the General

 

 

10300HB3857sam001- 106 -LRB103 27764 HLH 62310 a

1Revenue Fund in accordance with Section 8a of the State
2Finance Act.
3    The Department may, upon separate written notice to a
4taxpayer, require the taxpayer to prepare and file with the
5Department on a form prescribed by the Department within not
6less than 60 days after receipt of the notice an annual
7information return for the tax year specified in the notice.
8Such annual return to the Department shall include a statement
9of gross receipts as shown by the taxpayer's last Federal
10income tax return. If the total receipts of the business as
11reported in the Federal income tax return do not agree with the
12gross receipts reported to the Department of Revenue for the
13same period, the taxpayer shall attach to his annual return a
14schedule showing a reconciliation of the 2 amounts and the
15reasons for the difference. The taxpayer's annual return to
16the Department shall also disclose the cost of goods sold by
17the taxpayer during the year covered by such return, opening
18and closing inventories of such goods for such year, cost of
19goods used from stock or taken from stock and given away by the
20taxpayer during such year, pay roll information of the
21taxpayer's business during such year and any additional
22reasonable information which the Department deems would be
23helpful in determining the accuracy of the monthly, quarterly
24or annual returns filed by such taxpayer as hereinbefore
25provided for in this Section.
26    If the annual information return required by this Section

 

 

10300HB3857sam001- 107 -LRB103 27764 HLH 62310 a

1is not filed when and as required, the taxpayer shall be liable
2as follows:
3        (i) Until January 1, 1994, the taxpayer shall be
4    liable for a penalty equal to 1/6 of 1% of the tax due from
5    such taxpayer under this Act during the period to be
6    covered by the annual return for each month or fraction of
7    a month until such return is filed as required, the
8    penalty to be assessed and collected in the same manner as
9    any other penalty provided for in this Act.
10        (ii) On and after January 1, 1994, the taxpayer shall
11    be liable for a penalty as described in Section 3-4 of the
12    Uniform Penalty and Interest Act.
13    The chief executive officer, proprietor, owner or highest
14ranking manager shall sign the annual return to certify the
15accuracy of the information contained therein. Any person who
16willfully signs the annual return containing false or
17inaccurate information shall be guilty of perjury and punished
18accordingly. The annual return form prescribed by the
19Department shall include a warning that the person signing the
20return may be liable for perjury.
21    The foregoing portion of this Section concerning the
22filing of an annual information return shall not apply to a
23serviceman who is not required to file an income tax return
24with the United States Government.
25    As soon as possible after the first day of each month, upon
26certification of the Department of Revenue, the Comptroller

 

 

10300HB3857sam001- 108 -LRB103 27764 HLH 62310 a

1shall order transferred and the Treasurer shall transfer from
2the General Revenue Fund to the Motor Fuel Tax Fund an amount
3equal to 1.7% of 80% of the net revenue realized under this Act
4for the second preceding month. Beginning April 1, 2000, this
5transfer is no longer required and shall not be made.
6    Net revenue realized for a month shall be the revenue
7collected by the State pursuant to this Act, less the amount
8paid out during that month as refunds to taxpayers for
9overpayment of liability.
10    For greater simplicity of administration, it shall be
11permissible for manufacturers, importers and wholesalers whose
12products are sold by numerous servicemen in Illinois, and who
13wish to do so, to assume the responsibility for accounting and
14paying to the Department all tax accruing under this Act with
15respect to such sales, if the servicemen who are affected do
16not make written objection to the Department to this
17arrangement.
18(Source: P.A. 101-10, Article 15, Section 15-20, eff. 6-5-19;
19101-10, Article 25, Section 25-115, eff. 6-5-19; 101-27, eff.
206-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
21101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)
 
22    Section 20. The Retailers' Occupation Tax Act is amended
23by changing Sections 2-10 and 3 as follows:
 
24    (35 ILCS 120/2-10)

 

 

10300HB3857sam001- 109 -LRB103 27764 HLH 62310 a

1    Sec. 2-10. Rate of tax. Unless otherwise provided in this
2Section, the tax imposed by this Act is at the rate of 6.25% of
3gross receipts from sales of tangible personal property made
4in the course of business.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    Beginning on August 6, 2010 through August 15, 2010, and
10beginning again on August 5, 2022 through August 14, 2022,
11with respect to sales tax holiday items as defined in Section
122-8 of this Act, the tax is imposed at the rate of 1.25%.
13    Within 14 days after July 1, 2000 (the effective date of
14Public Act 91-872) this amendatory Act of the 91st General
15Assembly, each retailer of motor fuel and gasohol shall cause
16the following notice to be posted in a prominently visible
17place on each retail dispensing device that is used to
18dispense motor fuel or gasohol in the State of Illinois: "As of
19July 1, 2000, the State of Illinois has eliminated the State's
20share of sales tax on motor fuel and gasohol through December
2131, 2000. The price on this pump should reflect the
22elimination of the tax." The notice shall be printed in bold
23print on a sign that is no smaller than 4 inches by 8 inches.
24The sign shall be clearly visible to customers. Any retailer
25who fails to post or maintain a required sign through December
2631, 2000 is guilty of a petty offense for which the fine shall

 

 

10300HB3857sam001- 110 -LRB103 27764 HLH 62310 a

1be $500 per day per each retail premises where a violation
2occurs.
3    With respect to gasohol, as defined in the Use Tax Act, the
4tax imposed by this Act applies to (i) 70% of the proceeds of
5sales made on or after January 1, 1990, and before July 1,
62003, (ii) 80% of the proceeds of sales made on or after July
71, 2003 and on or before July 1, 2017, and (iii) 100% of the
8proceeds of sales made thereafter. If, at any time, however,
9the tax under this Act on sales of gasohol, as defined in the
10Use Tax Act, is imposed at the rate of 1.25%, then the tax
11imposed by this Act applies to 100% of the proceeds of sales of
12gasohol made during that time.
13    With respect to majority blended ethanol fuel, as defined
14in the Use Tax Act, the tax imposed by this Act does not apply
15to the proceeds of sales made on or after July 1, 2003 and on
16or before December 31, 2023 but applies to 100% of the proceeds
17of sales made thereafter.
18    With respect to biodiesel blends, as defined in the Use
19Tax Act, with no less than 1% and no more than 10% biodiesel,
20the tax imposed by this Act applies to (i) 80% of the proceeds
21of sales made on or after July 1, 2003 and on or before
22December 31, 2018 and (ii) 100% of the proceeds of sales made
23after December 31, 2018 and before January 1, 2024. On and
24after January 1, 2024 and on or before December 31, 2030, the
25taxation of biodiesel, renewable diesel, and biodiesel blends
26shall be as provided in Section 3-5.1 of the Use Tax Act. If,

 

 

10300HB3857sam001- 111 -LRB103 27764 HLH 62310 a

1at any time, however, the tax under this Act on sales of
2biodiesel blends, as defined in the Use Tax Act, with no less
3than 1% and no more than 10% biodiesel is imposed at the rate
4of 1.25%, then the tax imposed by this Act applies to 100% of
5the proceeds of sales of biodiesel blends with no less than 1%
6and no more than 10% biodiesel made during that time.
7    With respect to biodiesel, as defined in the Use Tax Act,
8and biodiesel blends, as defined in the Use Tax Act, with more
9than 10% but no more than 99% biodiesel, the tax imposed by
10this Act does not apply to the proceeds of sales made on or
11after July 1, 2003 and on or before December 31, 2023. On and
12after January 1, 2024 and on or before December 31, 2030, the
13taxation of biodiesel, renewable diesel, and biodiesel blends
14shall be as provided in Section 3-5.1 of the Use Tax Act.
15    Until July 1, 2022 and beginning again on July 1, 2023,
16with respect to food for human consumption that is to be
17consumed off the premises where it is sold (other than
18alcoholic beverages, food consisting of or infused with adult
19use cannabis, soft drinks, and food that has been prepared for
20immediate consumption), the tax is imposed at the rate of 1%.
21Beginning July 1, 2022 and until July 1, 2023, with respect to
22food for human consumption that is to be consumed off the
23premises where it is sold (other than alcoholic beverages,
24food consisting of or infused with adult use cannabis, soft
25drinks, and food that has been prepared for immediate
26consumption), the tax is imposed at the rate of 0%.

 

 

10300HB3857sam001- 112 -LRB103 27764 HLH 62310 a

1    With respect to prescription and nonprescription
2medicines, drugs, medical appliances, products classified as
3Class III medical devices by the United States Food and Drug
4Administration that are used for cancer treatment pursuant to
5a prescription, as well as any accessories and components
6related to those devices, modifications to a motor vehicle for
7the purpose of rendering it usable by a person with a
8disability, and insulin, blood sugar testing materials,
9syringes, and needles used by human diabetics, the tax is
10imposed at the rate of 1%. For the purposes of this Section,
11until September 1, 2009: the term "soft drinks" means any
12complete, finished, ready-to-use, non-alcoholic drink, whether
13carbonated or not, including, but not limited to, soda water,
14cola, fruit juice, vegetable juice, carbonated water, and all
15other preparations commonly known as soft drinks of whatever
16kind or description that are contained in any closed or sealed
17bottle, can, carton, or container, regardless of size; but
18"soft drinks" does not include coffee, tea, non-carbonated
19water, infant formula, milk or milk products as defined in the
20Grade A Pasteurized Milk and Milk Products Act, or drinks
21containing 50% or more natural fruit or vegetable juice.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "soft drinks" means non-alcoholic
24beverages that contain natural or artificial sweeteners. "Soft
25drinks" does do not include beverages that contain milk or
26milk products, soy, rice or similar milk substitutes, or

 

 

10300HB3857sam001- 113 -LRB103 27764 HLH 62310 a

1greater than 50% of vegetable or fruit juice by volume.
2    Until August 1, 2009, and notwithstanding any other
3provisions of this Act, "food for human consumption that is to
4be consumed off the premises where it is sold" includes all
5food sold through a vending machine, except soft drinks and
6food products that are dispensed hot from a vending machine,
7regardless of the location of the vending machine. Beginning
8August 1, 2009, and notwithstanding any other provisions of
9this Act, "food for human consumption that is to be consumed
10off the premises where it is sold" includes all food sold
11through a vending machine, except soft drinks, candy, and food
12products that are dispensed hot from a vending machine,
13regardless of the location of the vending machine.
14    Notwithstanding any other provisions of this Act,
15beginning September 1, 2009, "food for human consumption that
16is to be consumed off the premises where it is sold" does not
17include candy. For purposes of this Section, "candy" means a
18preparation of sugar, honey, or other natural or artificial
19sweeteners in combination with chocolate, fruits, nuts or
20other ingredients or flavorings in the form of bars, drops, or
21pieces. "Candy" does not include any preparation that contains
22flour or requires refrigeration.
23    Notwithstanding any other provisions of this Act,
24beginning September 1, 2009, "nonprescription medicines and
25drugs" does not include grooming and hygiene products. For
26purposes of this Section, "grooming and hygiene products"

 

 

10300HB3857sam001- 114 -LRB103 27764 HLH 62310 a

1includes, but is not limited to, soaps and cleaning solutions,
2shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3lotions and screens, unless those products are available by
4prescription only, regardless of whether the products meet the
5definition of "over-the-counter-drugs". For the purposes of
6this paragraph, "over-the-counter-drug" means a drug for human
7use that contains a label that identifies the product as a drug
8as required by 21 CFR C.F.R. § 201.66. The
9"over-the-counter-drug" label includes:
10        (A) a A "Drug Facts" panel; or
11        (B) a A statement of the "active ingredient(s)" with a
12    list of those ingredients contained in the compound,
13    substance or preparation.
14    Beginning on January 1, 2014 (the effective date of Public
15Act 98-122) this amendatory Act of the 98th General Assembly,
16"prescription and nonprescription medicines and drugs"
17includes medical cannabis purchased from a registered
18dispensing organization under the Compassionate Use of Medical
19Cannabis Program Act.
20    As used in this Section, "adult use cannabis" means
21cannabis subject to tax under the Cannabis Cultivation
22Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
23and does not include cannabis subject to tax under the
24Compassionate Use of Medical Cannabis Program Act.
25    Beginning on January 1, 2024, in addition to the 6.25%
26general rate of tax imposed under this Act, a tax of 3% is

 

 

10300HB3857sam001- 115 -LRB103 27764 HLH 62310 a

1imposed on the gross receipts from sales of ground-based
2sparklers that are excluded from the definition of "fireworks"
3set forth in Section 2 of the Fireworks Regulation Act of
4Illinois.
5(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
6102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
74-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
8102-700, Article 65, Section 65-10, eff. 4-19-22; revised
96-1-22.)
 
10    (35 ILCS 120/3)  (from Ch. 120, par. 442)
11    Sec. 3. Except as provided in this Section, on or before
12the twentieth day of each calendar month, every person engaged
13in the business of selling tangible personal property at
14retail in this State during the preceding calendar month shall
15file a return with the Department, stating:
16        1. The name of the seller;
17        2. His residence address and the address of his
18    principal place of business and the address of the
19    principal place of business (if that is a different
20    address) from which he engages in the business of selling
21    tangible personal property at retail in this State;
22        3. Total amount of receipts received by him during the
23    preceding calendar month or quarter, as the case may be,
24    from sales of tangible personal property, and from
25    services furnished, by him during such preceding calendar

 

 

10300HB3857sam001- 116 -LRB103 27764 HLH 62310 a

1    month or quarter;
2        4. Total amount received by him during the preceding
3    calendar month or quarter on charge and time sales of
4    tangible personal property, and from services furnished,
5    by him prior to the month or quarter for which the return
6    is filed;
7        5. Deductions allowed by law;
8        6. Gross receipts which were received by him during
9    the preceding calendar month or quarter and upon the basis
10    of which the tax is imposed, including gross receipts on
11    food for human consumption that is to be consumed off the
12    premises where it is sold (other than alcoholic beverages,
13    food consisting of or infused with adult use cannabis,
14    soft drinks, and food that has been prepared for immediate
15    consumption) which were received during the preceding
16    calendar month or quarter and upon which tax would have
17    been due but for the 0% rate imposed under Public Act
18    102-700 this amendatory Act of the 102nd General Assembly;
19        7. The amount of credit provided in Section 2d of this
20    Act;
21        8. The amount of tax due, including the amount of tax
22    that would have been due on food for human consumption
23    that is to be consumed off the premises where it is sold
24    (other than alcoholic beverages, food consisting of or
25    infused with adult use cannabis, soft drinks, and food
26    that has been prepared for immediate consumption) but for

 

 

10300HB3857sam001- 117 -LRB103 27764 HLH 62310 a

1    the 0% rate imposed under Public Act 102-700 this
2    amendatory Act of the 102nd General Assembly;
3        9. The signature of the taxpayer; and
4        10. Such other reasonable information as the
5    Department may require.
6    On and after January 1, 2018, except for returns required
7to be filed prior to January 1, 2023 for motor vehicles,
8watercraft, aircraft, and trailers that are required to be
9registered with an agency of this State, with respect to
10retailers whose annual gross receipts average $20,000 or more,
11all returns required to be filed pursuant to this Act shall be
12filed electronically. On and after January 1, 2023, with
13respect to retailers whose annual gross receipts average
14$20,000 or more, all returns required to be filed pursuant to
15this Act, including, but not limited to, returns for motor
16vehicles, watercraft, aircraft, and trailers that are required
17to be registered with an agency of this State, shall be filed
18electronically. Retailers who demonstrate that they do not
19have access to the Internet or demonstrate hardship in filing
20electronically may petition the Department to waive the
21electronic filing requirement.
22    If a taxpayer fails to sign a return within 30 days after
23the proper notice and demand for signature by the Department,
24the return shall be considered valid and any amount shown to be
25due on the return shall be deemed assessed.
26    Each return shall be accompanied by the statement of

 

 

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1prepaid tax issued pursuant to Section 2e for which credit is
2claimed.
3    Prior to October 1, 2003, and on and after September 1,
42004 a retailer may accept a Manufacturer's Purchase Credit
5certification from a purchaser in satisfaction of Use Tax as
6provided in Section 3-85 of the Use Tax Act if the purchaser
7provides the appropriate documentation as required by Section
83-85 of the Use Tax Act. A Manufacturer's Purchase Credit
9certification, accepted by a retailer prior to October 1, 2003
10and on and after September 1, 2004 as provided in Section 3-85
11of the Use Tax Act, may be used by that retailer to satisfy
12Retailers' Occupation Tax liability in the amount claimed in
13the certification, not to exceed 6.25% of the receipts subject
14to tax from a qualifying purchase. A Manufacturer's Purchase
15Credit reported on any original or amended return filed under
16this Act after October 20, 2003 for reporting periods prior to
17September 1, 2004 shall be disallowed. Manufacturer's Purchase
18Credit reported on annual returns due on or after January 1,
192005 will be disallowed for periods prior to September 1,
202004. No Manufacturer's Purchase Credit may be used after
21September 30, 2003 through August 31, 2004 to satisfy any tax
22liability imposed under this Act, including any audit
23liability.
24    The Department may require returns to be filed on a
25quarterly basis. If so required, a return for each calendar
26quarter shall be filed on or before the twentieth day of the

 

 

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1calendar month following the end of such calendar quarter. The
2taxpayer shall also file a return with the Department for each
3of the first two months of each calendar quarter, on or before
4the twentieth day of the following calendar month, stating:
5        1. The name of the seller;
6        2. The address of the principal place of business from
7    which he engages in the business of selling tangible
8    personal property at retail in this State;
9        3. The total amount of taxable receipts received by
10    him during the preceding calendar month from sales of
11    tangible personal property by him during such preceding
12    calendar month, including receipts from charge and time
13    sales, but less all deductions allowed by law;
14        4. The amount of credit provided in Section 2d of this
15    Act;
16        5. The amount of tax due; and
17        6. Such other reasonable information as the Department
18    may require.
19    Every person engaged in the business of selling aviation
20fuel at retail in this State during the preceding calendar
21month shall, instead of reporting and paying tax as otherwise
22required by this Section, report and pay such tax on a separate
23aviation fuel tax return. The requirements related to the
24return shall be as otherwise provided in this Section.
25Notwithstanding any other provisions of this Act to the
26contrary, retailers selling aviation fuel shall file all

 

 

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1aviation fuel tax returns and shall make all aviation fuel tax
2payments by electronic means in the manner and form required
3by the Department. For purposes of this Section, "aviation
4fuel" means jet fuel and aviation gasoline.
5    Beginning on October 1, 2003, any person who is not a
6licensed distributor, importing distributor, or manufacturer,
7as defined in the Liquor Control Act of 1934, but is engaged in
8the business of selling, at retail, alcoholic liquor shall
9file a statement with the Department of Revenue, in a format
10and at a time prescribed by the Department, showing the total
11amount paid for alcoholic liquor purchased during the
12preceding month and such other information as is reasonably
13required by the Department. The Department may adopt rules to
14require that this statement be filed in an electronic or
15telephonic format. Such rules may provide for exceptions from
16the filing requirements of this paragraph. For the purposes of
17this paragraph, the term "alcoholic liquor" shall have the
18meaning prescribed in the Liquor Control Act of 1934.
19    Beginning on October 1, 2003, every distributor, importing
20distributor, and manufacturer of alcoholic liquor as defined
21in the Liquor Control Act of 1934, shall file a statement with
22the Department of Revenue, no later than the 10th day of the
23month for the preceding month during which transactions
24occurred, by electronic means, showing the total amount of
25gross receipts from the sale of alcoholic liquor sold or
26distributed during the preceding month to purchasers;

 

 

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1identifying the purchaser to whom it was sold or distributed;
2the purchaser's tax registration number; and such other
3information reasonably required by the Department. A
4distributor, importing distributor, or manufacturer of
5alcoholic liquor must personally deliver, mail, or provide by
6electronic means to each retailer listed on the monthly
7statement a report containing a cumulative total of that
8distributor's, importing distributor's, or manufacturer's
9total sales of alcoholic liquor to that retailer no later than
10the 10th day of the month for the preceding month during which
11the transaction occurred. The distributor, importing
12distributor, or manufacturer shall notify the retailer as to
13the method by which the distributor, importing distributor, or
14manufacturer will provide the sales information. If the
15retailer is unable to receive the sales information by
16electronic means, the distributor, importing distributor, or
17manufacturer shall furnish the sales information by personal
18delivery or by mail. For purposes of this paragraph, the term
19"electronic means" includes, but is not limited to, the use of
20a secure Internet website, e-mail, or facsimile.
21    If a total amount of less than $1 is payable, refundable or
22creditable, such amount shall be disregarded if it is less
23than 50 cents and shall be increased to $1 if it is 50 cents or
24more.
25    Notwithstanding any other provision of this Act to the
26contrary, retailers subject to tax on cannabis shall file all

 

 

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1cannabis tax returns and shall make all cannabis tax payments
2by electronic means in the manner and form required by the
3Department.
4    Beginning October 1, 1993, a taxpayer who has an average
5monthly tax liability of $150,000 or more shall make all
6payments required by rules of the Department by electronic
7funds transfer. Beginning October 1, 1994, a taxpayer who has
8an average monthly tax liability of $100,000 or more shall
9make all payments required by rules of the Department by
10electronic funds transfer. Beginning October 1, 1995, a
11taxpayer who has an average monthly tax liability of $50,000
12or more shall make all payments required by rules of the
13Department by electronic funds transfer. Beginning October 1,
142000, a taxpayer who has an annual tax liability of $200,000 or
15more shall make all payments required by rules of the
16Department by electronic funds transfer. The term "annual tax
17liability" shall be the sum of the taxpayer's liabilities
18under this Act, and under all other State and local occupation
19and use tax laws administered by the Department, for the
20immediately preceding calendar year. The term "average monthly
21tax liability" shall be the sum of the taxpayer's liabilities
22under this Act, and under all other State and local occupation
23and use tax laws administered by the Department, for the
24immediately preceding calendar year divided by 12. Beginning
25on October 1, 2002, a taxpayer who has a tax liability in the
26amount set forth in subsection (b) of Section 2505-210 of the

 

 

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1Department of Revenue Law shall make all payments required by
2rules of the Department by electronic funds transfer.
3    Before August 1 of each year beginning in 1993, the
4Department shall notify all taxpayers required to make
5payments by electronic funds transfer. All taxpayers required
6to make payments by electronic funds transfer shall make those
7payments for a minimum of one year beginning on October 1.
8    Any taxpayer not required to make payments by electronic
9funds transfer may make payments by electronic funds transfer
10with the permission of the Department.
11    All taxpayers required to make payment by electronic funds
12transfer and any taxpayers authorized to voluntarily make
13payments by electronic funds transfer shall make those
14payments in the manner authorized by the Department.
15    The Department shall adopt such rules as are necessary to
16effectuate a program of electronic funds transfer and the
17requirements of this Section.
18    Any amount which is required to be shown or reported on any
19return or other document under this Act shall, if such amount
20is not a whole-dollar amount, be increased to the nearest
21whole-dollar amount in any case where the fractional part of a
22dollar is 50 cents or more, and decreased to the nearest
23whole-dollar amount where the fractional part of a dollar is
24less than 50 cents.
25    If the retailer is otherwise required to file a monthly
26return and if the retailer's average monthly tax liability to

 

 

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1the Department does not exceed $200, the Department may
2authorize his returns to be filed on a quarter annual basis,
3with the return for January, February and March of a given year
4being due by April 20 of such year; with the return for April,
5May and June of a given year being due by July 20 of such year;
6with the return for July, August and September of a given year
7being due by October 20 of such year, and with the return for
8October, November and December of a given year being due by
9January 20 of the following year.
10    If the retailer is otherwise required to file a monthly or
11quarterly return and if the retailer's average monthly tax
12liability with the Department does not exceed $50, the
13Department may authorize his returns to be filed on an annual
14basis, with the return for a given year being due by January 20
15of the following year.
16    Such quarter annual and annual returns, as to form and
17substance, shall be subject to the same requirements as
18monthly returns.
19    Notwithstanding any other provision in this Act concerning
20the time within which a retailer may file his return, in the
21case of any retailer who ceases to engage in a kind of business
22which makes him responsible for filing returns under this Act,
23such retailer shall file a final return under this Act with the
24Department not more than one month after discontinuing such
25business.
26    Where the same person has more than one business

 

 

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

 

 

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13-2 of the Boat Registration and Safety Act, a personal
2watercraft, or any boat equipped with an inboard motor.
3    In addition, with respect to motor vehicles, watercraft,
4aircraft, and trailers that are required to be registered with
5an agency of this State, every person who is engaged in the
6business of leasing or renting such items and who, in
7connection with such business, sells any such item to a
8retailer for the purpose of resale is, notwithstanding any
9other provision of this Section to the contrary, authorized to
10meet the return-filing requirement of this Act by reporting
11the transfer of all the aircraft, watercraft, motor vehicles,
12or trailers transferred for resale during a month to the
13Department on the same uniform invoice-transaction reporting
14return form on or before the 20th of the month following the
15month in which the transfer takes place. Notwithstanding any
16other provision of this Act to the contrary, all returns filed
17under this paragraph must be filed by electronic means in the
18manner and form as required by the Department.
19    Any retailer who sells only motor vehicles, watercraft,
20aircraft, or trailers that are required to be registered with
21an agency of this State, so that all retailers' occupation tax
22liability is required to be reported, and is reported, on such
23transaction reporting returns and who is not otherwise
24required to file monthly or quarterly returns, need not file
25monthly or quarterly returns. However, those retailers shall
26be required to file returns on an annual basis.

 

 

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

 

 

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

 

 

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

 

 

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1the information required by the transaction reporting return
2and the remittance for tax or proof of exemption directly to
3the Department and obtain his tax receipt or exemption
4determination, in which event the transaction reporting return
5and tax remittance (if a tax payment was required) shall be
6credited by the Department to the proper retailer's account
7with the Department, but without the 2.1% or 1.75% discount
8provided for in this Section being allowed. When the user pays
9the tax directly to the Department, he shall pay the tax in the
10same amount and in the same form in which it would be remitted
11if the tax had been remitted to the Department by the retailer.
12    Refunds made by the seller during the preceding return
13period to purchasers, on account of tangible personal property
14returned to the seller, shall be allowed as a deduction under
15subdivision 5 of his monthly or quarterly return, as the case
16may be, in case the seller had theretofore included the
17receipts from the sale of such tangible personal property in a
18return filed by him and had paid the tax imposed by this Act
19with respect to such receipts.
20    Where the seller is a corporation, the return filed on
21behalf of such corporation shall be signed by the president,
22vice-president, secretary or treasurer or by the properly
23accredited agent of such corporation.
24    Where the seller is a limited liability company, the
25return filed on behalf of the limited liability company shall
26be signed by a manager, member, or properly accredited agent

 

 

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1of the limited liability company.
2    Except as provided in this Section, the retailer filing
3the return under this Section shall, at the time of filing such
4return, pay to the Department the amount of tax imposed by this
5Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
6on and after January 1, 1990, or $5 per calendar year,
7whichever is greater, which is allowed to reimburse the
8retailer for the expenses incurred in keeping records,
9preparing and filing returns, remitting the tax and supplying
10data to the Department on request. On and after January 1,
112021, a certified service provider, as defined in the Leveling
12the Playing Field for Illinois Retail Act, filing the return
13under this Section on behalf of a remote retailer shall, at the
14time of such return, pay to the Department the amount of tax
15imposed by this Act less a discount of 1.75%. A remote retailer
16using a certified service provider to file a return on its
17behalf, as provided in the Leveling the Playing Field for
18Illinois Retail Act, is not eligible for the discount. When
19determining the discount allowed under this Section, retailers
20shall include the amount of tax that would have been due at the
211% rate but for the 0% rate imposed under Public Act 102-700
22this amendatory Act of the 102nd General Assembly. When
23determining the discount allowed under this Section, retailers
24shall include the amount of tax that would have been due at the
256.25% rate but for the 1.25% rate imposed on sales tax holiday
26items under Public Act 102-700 this amendatory Act of the

 

 

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1102nd General Assembly. The discount under this Section is not
2allowed for the 1.25% portion of taxes paid on aviation fuel
3that is subject to the revenue use requirements of 49 U.S.C.
447107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to
5Section 2d of this Act shall be included in the amount on which
6such 2.1% or 1.75% discount is computed. In the case of
7retailers who report and pay the tax on a transaction by
8transaction basis, as provided in this Section, such discount
9shall be taken with each such tax remittance instead of when
10such retailer files his periodic return. The discount allowed
11under this Section is allowed only for returns that are filed
12in the manner required by this Act. The Department may
13disallow the discount for retailers whose certificate of
14registration is revoked at the time the return is filed, but
15only if the Department's decision to revoke the certificate of
16registration has become final.
17    Before October 1, 2000, if the taxpayer's average monthly
18tax liability to the Department under this Act, the Use Tax
19Act, the Service Occupation Tax Act, and the Service Use Tax
20Act, excluding any liability for prepaid sales tax to be
21remitted in accordance with Section 2d of this Act, was
22$10,000 or more during the preceding 4 complete calendar
23quarters, he shall file a return with the Department each
24month by the 20th day of the month next following the month
25during which such tax liability is incurred and shall make
26payments to the Department on or before the 7th, 15th, 22nd and

 

 

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1last day of the month during which such liability is incurred.
2On and after October 1, 2000, if the taxpayer's average
3monthly tax liability to the Department under this Act, the
4Use Tax Act, the Service Occupation Tax Act, and the Service
5Use Tax Act, excluding any liability for prepaid sales tax to
6be remitted in accordance with Section 2d of this Act, was
7$20,000 or more during the preceding 4 complete calendar
8quarters, he shall file a return with the Department each
9month by the 20th day of the month next following the month
10during which such tax liability is incurred and shall make
11payment to the Department on or before the 7th, 15th, 22nd and
12last day of the month during which such liability is incurred.
13If the month during which such tax liability is incurred began
14prior to January 1, 1985, each payment shall be in an amount
15equal to 1/4 of the taxpayer's actual liability for the month
16or an amount set by the Department not to exceed 1/4 of the
17average monthly liability of the taxpayer to the Department
18for the preceding 4 complete calendar quarters (excluding the
19month of highest liability and the month of lowest liability
20in such 4 quarter period). If the month during which such tax
21liability is incurred begins on or after January 1, 1985 and
22prior to January 1, 1987, each payment shall be in an amount
23equal to 22.5% of the taxpayer's actual liability for the
24month or 27.5% of the taxpayer's liability for the same
25calendar month of the preceding year. If the month during
26which such tax liability is incurred begins on or after

 

 

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1January 1, 1987 and prior to January 1, 1988, each payment
2shall be in an amount equal to 22.5% of the taxpayer's actual
3liability for the month or 26.25% of the taxpayer's liability
4for the same calendar month of the preceding year. If the month
5during which such tax liability is incurred begins on or after
6January 1, 1988, and prior to January 1, 1989, or begins on or
7after January 1, 1996, each payment shall be in an amount equal
8to 22.5% of the taxpayer's actual liability for the month or
925% of the taxpayer's liability for the same calendar month of
10the preceding year. If the month during which such tax
11liability is incurred begins on or after January 1, 1989, and
12prior to January 1, 1996, each payment shall be in an amount
13equal to 22.5% of the taxpayer's actual liability for the
14month or 25% of the taxpayer's liability for the same calendar
15month of the preceding year or 100% of the taxpayer's actual
16liability for the quarter monthly reporting period. The amount
17of such quarter monthly payments shall be credited against the
18final tax liability of the taxpayer's return for that month.
19Before October 1, 2000, once applicable, the requirement of
20the making of quarter monthly payments to the Department by
21taxpayers having an average monthly tax liability of $10,000
22or more as determined in the manner provided above shall
23continue until such taxpayer's average monthly liability to
24the Department during the preceding 4 complete calendar
25quarters (excluding the month of highest liability and the
26month of lowest liability) is less than $9,000, or until such

 

 

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1taxpayer's average monthly liability to the Department as
2computed for each calendar quarter of the 4 preceding complete
3calendar quarter period is less than $10,000. However, if a
4taxpayer can show the Department that a substantial change in
5the taxpayer's business has occurred which causes the taxpayer
6to anticipate that his average monthly tax liability for the
7reasonably foreseeable future will fall below the $10,000
8threshold stated above, then such taxpayer may petition the
9Department for a change in such taxpayer's reporting status.
10On and after October 1, 2000, once applicable, the requirement
11of the making of quarter monthly payments to the Department by
12taxpayers having an average monthly tax liability of $20,000
13or more as determined in the manner provided above shall
14continue until such taxpayer's average monthly liability to
15the Department during the preceding 4 complete calendar
16quarters (excluding the month of highest liability and the
17month of lowest liability) is less than $19,000 or until such
18taxpayer's average monthly liability to the Department as
19computed for each calendar quarter of the 4 preceding complete
20calendar quarter period is less than $20,000. However, if a
21taxpayer can show the Department that a substantial change in
22the taxpayer's business has occurred which causes the taxpayer
23to anticipate that his average monthly tax liability for the
24reasonably foreseeable future will fall below the $20,000
25threshold stated above, then such taxpayer may petition the
26Department for a change in such taxpayer's reporting status.

 

 

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1The Department shall change such taxpayer's reporting status
2unless it finds that such change is seasonal in nature and not
3likely to be long term. Quarter monthly payment status shall
4be determined under this paragraph as if the rate reduction to
50% in Public Act 102-700 this amendatory Act of the 102nd
6General Assembly on food for human consumption that is to be
7consumed off the premises where it is sold (other than
8alcoholic beverages, food consisting of or infused with adult
9use cannabis, soft drinks, and food that has been prepared for
10immediate consumption) had not occurred. For quarter monthly
11payments due under this paragraph on or after July 1, 2023 and
12through June 30, 2024, "25% of the taxpayer's liability for
13the same calendar month of the preceding year" shall be
14determined as if the rate reduction to 0% in Public Act 102-700
15this amendatory Act of the 102nd General Assembly had not
16occurred. Quarter monthly payment status shall be determined
17under this paragraph as if the rate reduction to 1.25% in
18Public Act 102-700 this amendatory Act of the 102nd General
19Assembly on sales tax holiday items had not occurred. For
20quarter monthly payments due on or after July 1, 2023 and
21through June 30, 2024, "25% of the taxpayer's liability for
22the same calendar month of the preceding year" shall be
23determined as if the rate reduction to 1.25% in Public Act
24102-700 this amendatory Act of the 102nd General Assembly on
25sales tax holiday items had not occurred. If any such quarter
26monthly payment is not paid at the time or in the amount

 

 

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1required by this Section, then the taxpayer shall be liable
2for penalties and interest on the difference between the
3minimum amount due as a payment and the amount of such quarter
4monthly payment actually and timely paid, except insofar as
5the taxpayer has previously made payments for that month to
6the Department in excess of the minimum payments previously
7due as provided in this Section. The Department shall make
8reasonable rules and regulations to govern the quarter monthly
9payment amount and quarter monthly payment dates for taxpayers
10who file on other than a calendar monthly basis.
11    The provisions of this paragraph apply before October 1,
122001. Without regard to whether a taxpayer is required to make
13quarter monthly payments as specified above, any taxpayer who
14is required by Section 2d of this Act to collect and remit
15prepaid taxes and has collected prepaid taxes which average in
16excess of $25,000 per month during the preceding 2 complete
17calendar quarters, shall file a return with the Department as
18required by Section 2f and shall make payments to the
19Department on or before the 7th, 15th, 22nd and last day of the
20month during which such liability is incurred. If the month
21during which such tax liability is incurred began prior to
22September 1, 1985 (the effective date of Public Act 84-221),
23each payment shall be in an amount not less than 22.5% of the
24taxpayer's actual liability under Section 2d. If the month
25during which such tax liability is incurred begins on or after
26January 1, 1986, each payment shall be in an amount equal to

 

 

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122.5% of the taxpayer's actual liability for the month or
227.5% of the taxpayer's liability for the same calendar month
3of the preceding calendar year. If the month during which such
4tax liability is incurred begins on or after January 1, 1987,
5each payment shall be in an amount equal to 22.5% of the
6taxpayer's actual liability for the month or 26.25% of the
7taxpayer's liability for the same calendar month of the
8preceding year. The amount of such quarter monthly payments
9shall be credited against the final tax liability of the
10taxpayer's return for that month filed under this Section or
11Section 2f, as the case may be. Once applicable, the
12requirement of the making of quarter monthly payments to the
13Department pursuant to this paragraph shall continue until
14such taxpayer's average monthly prepaid tax collections during
15the preceding 2 complete calendar quarters is $25,000 or less.
16If any such quarter monthly payment is not paid at the time or
17in the amount required, the taxpayer shall be liable for
18penalties and interest on such difference, except insofar as
19the taxpayer has previously made payments for that month in
20excess of the minimum payments previously due.
21    The provisions of this paragraph apply on and after
22October 1, 2001. Without regard to whether a taxpayer is
23required to make quarter monthly payments as specified above,
24any taxpayer who is required by Section 2d of this Act to
25collect and remit prepaid taxes and has collected prepaid
26taxes that average in excess of $20,000 per month during the

 

 

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1preceding 4 complete calendar quarters shall file a return
2with the Department as required by Section 2f and shall make
3payments to the Department on or before the 7th, 15th, 22nd and
4last day of the month during which the liability is incurred.
5Each payment shall be in an amount equal to 22.5% of the
6taxpayer's actual liability for the month or 25% of the
7taxpayer's liability for the same calendar month of the
8preceding year. The amount of the quarter monthly payments
9shall be credited against the final tax liability of the
10taxpayer's return for that month filed under this Section or
11Section 2f, as the case may be. Once applicable, the
12requirement of the making of quarter monthly payments to the
13Department pursuant to this paragraph shall continue until the
14taxpayer's average monthly prepaid tax collections during the
15preceding 4 complete calendar quarters (excluding the month of
16highest liability and the month of lowest liability) is less
17than $19,000 or until such taxpayer's average monthly
18liability to the Department as computed for each calendar
19quarter of the 4 preceding complete calendar quarters is less
20than $20,000. If any such quarter monthly payment is not paid
21at the time or in the amount required, the taxpayer shall be
22liable for penalties and interest on such difference, except
23insofar as the taxpayer has previously made payments for that
24month in excess of the minimum payments previously due.
25    If any payment provided for in this Section exceeds the
26taxpayer's liabilities under this Act, the Use Tax Act, the

 

 

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1Service Occupation Tax Act and the Service Use Tax Act, as
2shown on an original monthly return, the Department shall, if
3requested by the taxpayer, issue to the taxpayer a credit
4memorandum no later than 30 days after the date of payment. The
5credit evidenced by such credit memorandum may be assigned by
6the taxpayer to a similar taxpayer under this Act, the Use Tax
7Act, the Service Occupation Tax Act or the Service Use Tax Act,
8in accordance with reasonable rules and regulations to be
9prescribed by the Department. If no such request is made, the
10taxpayer may credit such excess payment against tax liability
11subsequently to be remitted to the Department under this Act,
12the Use Tax Act, the Service Occupation Tax Act or the Service
13Use Tax Act, in accordance with reasonable rules and
14regulations prescribed by the Department. If the Department
15subsequently determined that all or any part of the credit
16taken was not actually due to the taxpayer, the taxpayer's
172.1% and 1.75% vendor's discount shall be reduced by 2.1% or
181.75% of the difference between the credit taken and that
19actually due, and that taxpayer shall be liable for penalties
20and interest on such difference.
21    If a retailer of motor fuel is entitled to a credit under
22Section 2d of this Act which exceeds the taxpayer's liability
23to the Department under this Act for the month for which the
24taxpayer is filing a return, the Department shall issue the
25taxpayer a credit memorandum for the excess.
26    Beginning January 1, 1990, each month the Department shall

 

 

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1pay into the Local Government Tax Fund, a special fund in the
2State treasury which is hereby created, the net revenue
3realized for the preceding month from the 1% tax imposed under
4this Act.
5    Beginning January 1, 1990, each month the Department shall
6pay into the County and Mass Transit District Fund, a special
7fund in the State treasury which is hereby created, 4% of the
8net revenue realized for the preceding month from the 6.25%
9general rate other than aviation fuel sold on or after
10December 1, 2019. This exception for aviation fuel only
11applies for so long as the revenue use requirements of 49
12U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
13    Beginning August 1, 2000, each month the Department shall
14pay into the County and Mass Transit District Fund 20% of the
15net revenue realized for the preceding month from the 1.25%
16rate on the selling price of motor fuel and gasohol. If, in any
17month, the tax on sales tax holiday items, as defined in
18Section 2-8, is imposed at the rate of 1.25%, then the
19Department shall pay 20% of the net revenue realized for that
20month from the 1.25% rate on the selling price of sales tax
21holiday items into the County and Mass Transit District Fund.
22    Beginning January 1, 1990, each month the Department shall
23pay into the Local Government Tax Fund 16% of the net revenue
24realized for the preceding month from the 6.25% general rate
25on the selling price of tangible personal property other than
26aviation fuel sold on or after December 1, 2019. This

 

 

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1exception for aviation fuel only applies for so long as the
2revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
347133 are binding on the State.
4    For aviation fuel sold on or after December 1, 2019, each
5month the Department shall pay into the State Aviation Program
6Fund 20% of the net revenue realized for the preceding month
7from the 6.25% general rate on the selling price of aviation
8fuel, less an amount estimated by the Department to be
9required for refunds of the 20% portion of the tax on aviation
10fuel under this Act, which amount shall be deposited into the
11Aviation Fuel Sales Tax Refund Fund. The Department shall only
12pay moneys into the State Aviation Program Fund and the
13Aviation Fuel Sales Tax Refund Fund under this Act for so long
14as the revenue use requirements of 49 U.S.C. 47107(b) and 49
15U.S.C. 47133 are binding on the State.
16    Beginning August 1, 2000, each month the Department shall
17pay into the Local Government Tax Fund 80% of the net revenue
18realized for the preceding month from the 1.25% rate on the
19selling price of motor fuel and gasohol. If, in any month, the
20tax on sales tax holiday items, as defined in Section 2-8, is
21imposed at the rate of 1.25%, then the Department shall pay 80%
22of the net revenue realized for that month from the 1.25% rate
23on the selling price of sales tax holiday items into the Local
24Government Tax Fund.
25    Beginning October 1, 2009, each month the Department shall
26pay into the Capital Projects Fund an amount that is equal to

 

 

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

 

 

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1payment by the fund and the average monthly revenues deposited
2into the fund, excluding payments made pursuant to this
3paragraph.
4    Beginning July 1, 2015, of the remainder of the moneys
5received by the Department under the Use Tax Act, the Service
6Use Tax Act, the Service Occupation Tax Act, and this Act, each
7month the Department shall deposit $500,000 into the State
8Crime Laboratory Fund.
9    Beginning on January 1, 2024, each month the Department
10shall pay into the Fireman's Annuity and Benefit Fund and the
11Firefighters' Pension Investment Fund, cumulatively, 50% of
12the net revenue realized for the preceding month from the 3%
13tax on the gross receipts from sales of ground-based
14sparklers. The Board of Trustees of the Firemen's Annuity and
15Benefit Fund and the Board of Trustees of the Firefighters'
16Pension Investment Fund shall each annually certify to the
17Department the average total number of participants in their
18respective funds for the immediately preceding calendar year.
19The certifications for the 2024 calendar year shall be
20provided as soon as possible after the effective date of this
21amendatory Act of the 103rd General Assembly, and the
22certifications for the 2025 calendar year and each calendar
23year thereafter shall be provided by January 15 of the
24calendar year for which the certification is made. Each of
25those funds shall receive a portion of the total net revenue
26required to be deposited into those funds equal to the

 

 

10300HB3857sam001- 145 -LRB103 27764 HLH 62310 a

1particular fund's proportionate share of the total number of
2participants in both funds. The Department shall pay the
3remaining 50% of the net revenue realized for the preceding
4month from the 3% tax on the gross receipts from sales of
5ground-based sparklers into the General Revenue Fund.
6    Of the remainder of the moneys received by the Department
7pursuant to this Act, (a) 1.75% thereof shall be paid into the
8Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
9and after July 1, 1989, 3.8% thereof shall be paid into the
10Build Illinois Fund; provided, however, that if in any fiscal
11year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
12may be, of the moneys received by the Department and required
13to be paid into the Build Illinois Fund pursuant to this Act,
14Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
15Act, and Section 9 of the Service Occupation Tax Act, such Acts
16being hereinafter called the "Tax Acts" and such aggregate of
172.2% or 3.8%, as the case may be, of moneys being hereinafter
18called the "Tax Act Amount", and (2) the amount transferred to
19the Build Illinois Fund from the State and Local Sales Tax
20Reform Fund shall be less than the Annual Specified Amount (as
21hereinafter defined), an amount equal to the difference shall
22be immediately paid into the Build Illinois Fund from other
23moneys received by the Department pursuant to the Tax Acts;
24the "Annual Specified Amount" means the amounts specified
25below for fiscal years 1986 through 1993:
26Fiscal YearAnnual Specified Amount

 

 

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11986$54,800,000
21987$76,650,000
31988$80,480,000
41989$88,510,000
51990$115,330,000
61991$145,470,000
71992$182,730,000
81993$206,520,000;
9and means the Certified Annual Debt Service Requirement (as
10defined in Section 13 of the Build Illinois Bond Act) or the
11Tax Act Amount, whichever is greater, for fiscal year 1994 and
12each fiscal year thereafter; and further provided, that if on
13the last business day of any month the sum of (1) the Tax Act
14Amount required to be deposited into the Build Illinois Bond
15Account in the Build Illinois Fund during such month and (2)
16the amount transferred to the Build Illinois Fund from the
17State and Local Sales Tax Reform Fund shall have been less than
181/12 of the Annual Specified Amount, an amount equal to the
19difference shall be immediately paid into the Build Illinois
20Fund from other moneys received by the Department pursuant to
21the Tax Acts; and, further provided, that in no event shall the
22payments required under the preceding proviso result in
23aggregate payments into the Build Illinois Fund pursuant to
24this clause (b) for any fiscal year in excess of the greater of
25(i) the Tax Act Amount or (ii) the Annual Specified Amount for
26such fiscal year. The amounts payable into the Build Illinois

 

 

10300HB3857sam001- 147 -LRB103 27764 HLH 62310 a

1Fund under clause (b) of the first sentence in this paragraph
2shall be payable only until such time as the aggregate amount
3on deposit under each trust indenture securing Bonds issued
4and outstanding pursuant to the Build Illinois Bond Act is
5sufficient, taking into account any future investment income,
6to fully provide, in accordance with such indenture, for the
7defeasance of or the payment of the principal of, premium, if
8any, and interest on the Bonds secured by such indenture and on
9any Bonds expected to be issued thereafter and all fees and
10costs payable with respect thereto, all as certified by the
11Director of the Bureau of the Budget (now Governor's Office of
12Management and Budget). If on the last business day of any
13month in which Bonds are outstanding pursuant to the Build
14Illinois Bond Act, the aggregate of moneys deposited in the
15Build Illinois Bond Account in the Build Illinois Fund in such
16month shall be less than the amount required to be transferred
17in such month from the Build Illinois Bond Account to the Build
18Illinois Bond Retirement and Interest Fund pursuant to Section
1913 of the Build Illinois Bond Act, an amount equal to such
20deficiency shall be immediately paid from other moneys
21received by the Department pursuant to the Tax Acts to the
22Build Illinois Fund; provided, however, that any amounts paid
23to the Build Illinois Fund in any fiscal year pursuant to this
24sentence shall be deemed to constitute payments pursuant to
25clause (b) of the first sentence of this paragraph and shall
26reduce the amount otherwise payable for such fiscal year

 

 

10300HB3857sam001- 148 -LRB103 27764 HLH 62310 a

1pursuant to that clause (b). The moneys received by the
2Department pursuant to this Act and required to be deposited
3into the Build Illinois Fund are subject to the pledge, claim
4and charge set forth in Section 12 of the Build Illinois Bond
5Act.
6    Subject to payment of amounts into the Build Illinois Fund
7as provided in the preceding paragraph or in any amendment
8thereto hereafter enacted, the following specified monthly
9installment of the amount requested in the certificate of the
10Chairman of the Metropolitan Pier and Exposition Authority
11provided under Section 8.25f of the State Finance Act, but not
12in excess of sums designated as "Total Deposit", shall be
13deposited in the aggregate from collections under Section 9 of
14the Use Tax Act, Section 9 of the Service Use Tax Act, Section
159 of the Service Occupation Tax Act, and Section 3 of the
16Retailers' Occupation Tax Act into the McCormick Place
17Expansion Project Fund in the specified fiscal years.
18Fiscal YearTotal Deposit
191993         $0
201994 53,000,000
211995 58,000,000
221996 61,000,000
231997 64,000,000
241998 68,000,000
251999 71,000,000
262000 75,000,000

 

 

10300HB3857sam001- 149 -LRB103 27764 HLH 62310 a

12001 80,000,000
22002 93,000,000
32003 99,000,000
42004103,000,000
52005108,000,000
62006113,000,000
72007119,000,000
82008126,000,000
92009132,000,000
102010139,000,000
112011146,000,000
122012153,000,000
132013161,000,000
142014170,000,000
152015179,000,000
162016189,000,000
172017199,000,000
182018210,000,000
192019221,000,000
202020233,000,000
212021300,000,000
222022300,000,000
232023300,000,000
242024 300,000,000
252025 300,000,000
262026 300,000,000

 

 

10300HB3857sam001- 150 -LRB103 27764 HLH 62310 a

12027 375,000,000
22028 375,000,000
32029 375,000,000
42030 375,000,000
52031 375,000,000
62032 375,000,000
72033375,000,000
82034375,000,000
92035375,000,000
102036450,000,000
11and
12each fiscal year
13thereafter that bonds
14are outstanding under
15Section 13.2 of the
16Metropolitan Pier and
17Exposition Authority Act,
18but not after fiscal year 2060.
19    Beginning July 20, 1993 and in each month of each fiscal
20year thereafter, one-eighth of the amount requested in the
21certificate of the Chairman of the Metropolitan Pier and
22Exposition Authority for that fiscal year, less the amount
23deposited into the McCormick Place Expansion Project Fund by
24the State Treasurer in the respective month under subsection
25(g) of Section 13 of the Metropolitan Pier and Exposition
26Authority Act, plus cumulative deficiencies in the deposits

 

 

10300HB3857sam001- 151 -LRB103 27764 HLH 62310 a

1required under this Section for previous months and years,
2shall be deposited into the McCormick Place Expansion Project
3Fund, until the full amount requested for the fiscal year, but
4not in excess of the amount specified above as "Total
5Deposit", has been deposited.
6    Subject to payment of amounts into the Capital Projects
7Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
8and the McCormick Place Expansion Project Fund pursuant to the
9preceding paragraphs or in any amendments thereto hereafter
10enacted, for aviation fuel sold on or after December 1, 2019,
11the Department shall each month deposit into the Aviation Fuel
12Sales Tax Refund Fund an amount estimated by the Department to
13be required for refunds of the 80% portion of the tax on
14aviation fuel under this Act. The Department shall only
15deposit moneys into the Aviation Fuel Sales Tax Refund Fund
16under this paragraph for so long as the revenue use
17requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
18binding on the State.
19    Subject to payment of amounts into the Build Illinois Fund
20and the McCormick Place Expansion Project Fund pursuant to the
21preceding paragraphs or in any amendments thereto hereafter
22enacted, beginning July 1, 1993 and ending on September 30,
232013, the Department shall each month pay into the Illinois
24Tax Increment Fund 0.27% of 80% of the net revenue realized for
25the preceding month from the 6.25% general rate on the selling
26price of tangible personal property.

 

 

10300HB3857sam001- 152 -LRB103 27764 HLH 62310 a

1    Subject to payment of amounts into the Build Illinois Fund
2and the McCormick Place Expansion Project Fund pursuant to the
3preceding paragraphs or in any amendments thereto hereafter
4enacted, beginning with the receipt of the first report of
5taxes paid by an eligible business and continuing for a
625-year period, the Department shall each month pay into the
7Energy Infrastructure Fund 80% of the net revenue realized
8from the 6.25% general rate on the selling price of
9Illinois-mined coal that was sold to an eligible business. For
10purposes of this paragraph, the term "eligible business" means
11a new electric generating facility certified pursuant to
12Section 605-332 of the Department of Commerce and Economic
13Opportunity Law of the Civil Administrative Code of Illinois.
14    Subject to payment of amounts into the Build Illinois
15Fund, the McCormick Place Expansion Project Fund, the Illinois
16Tax Increment Fund, and the Energy Infrastructure Fund
17pursuant to the preceding paragraphs or in any amendments to
18this Section hereafter enacted, beginning on the first day of
19the first calendar month to occur on or after August 26, 2014
20(the effective date of Public Act 98-1098), each month, from
21the collections made under Section 9 of the Use Tax Act,
22Section 9 of the Service Use Tax Act, Section 9 of the Service
23Occupation Tax Act, and Section 3 of the Retailers' Occupation
24Tax Act, the Department shall pay into the Tax Compliance and
25Administration Fund, to be used, subject to appropriation, to
26fund additional auditors and compliance personnel at the

 

 

10300HB3857sam001- 153 -LRB103 27764 HLH 62310 a

1Department of Revenue, an amount equal to 1/12 of 5% of 80% of
2the cash receipts collected during the preceding fiscal year
3by the Audit Bureau of the Department under the Use Tax Act,
4the Service Use Tax Act, the Service Occupation Tax Act, the
5Retailers' Occupation Tax Act, and associated local occupation
6and use taxes administered by the Department.
7    Subject to payments of amounts into the Build Illinois
8Fund, the McCormick Place Expansion Project Fund, the Illinois
9Tax Increment Fund, the Energy Infrastructure Fund, and the
10Tax Compliance and Administration Fund as provided in this
11Section, beginning on July 1, 2018 the Department shall pay
12each month into the Downstate Public Transportation Fund the
13moneys required to be so paid under Section 2-3 of the
14Downstate Public Transportation Act.
15    Subject to successful execution and delivery of a
16public-private agreement between the public agency and private
17entity and completion of the civic build, beginning on July 1,
182023, of the remainder of the moneys received by the
19Department under the Use Tax Act, the Service Use Tax Act, the
20Service Occupation Tax Act, and this Act, the Department shall
21deposit the following specified deposits in the aggregate from
22collections under the Use Tax Act, the Service Use Tax Act, the
23Service Occupation Tax Act, and the Retailers' Occupation Tax
24Act, as required under Section 8.25g of the State Finance Act
25for distribution consistent with the Public-Private
26Partnership for Civic and Transit Infrastructure Project Act.

 

 

10300HB3857sam001- 154 -LRB103 27764 HLH 62310 a

1The moneys received by the Department pursuant to this Act and
2required to be deposited into the Civic and Transit
3Infrastructure Fund are subject to the pledge, claim and
4charge set forth in Section 25-55 of the Public-Private
5Partnership for Civic and Transit Infrastructure Project Act.
6As used in this paragraph, "civic build", "private entity",
7"public-private agreement", and "public agency" have the
8meanings provided in Section 25-10 of the Public-Private
9Partnership for Civic and Transit Infrastructure Project Act.
10        Fiscal Year.............................Total Deposit
11        2024.....................................$200,000,000
12        2025....................................$206,000,000
13        2026....................................$212,200,000
14        2027....................................$218,500,000
15        2028....................................$225,100,000
16        2029....................................$288,700,000
17        2030....................................$298,900,000
18        2031....................................$309,300,000
19        2032....................................$320,100,000
20        2033....................................$331,200,000
21        2034....................................$341,200,000
22        2035....................................$351,400,000
23        2036....................................$361,900,000
24        2037....................................$372,800,000
25        2038....................................$384,000,000
26        2039....................................$395,500,000

 

 

10300HB3857sam001- 155 -LRB103 27764 HLH 62310 a

1        2040....................................$407,400,000
2        2041....................................$419,600,000
3        2042....................................$432,200,000
4        2043....................................$445,100,000
5    Beginning July 1, 2021 and until July 1, 2022, subject to
6the payment of amounts into the County and Mass Transit
7District Fund, the Local Government Tax Fund, the Build
8Illinois Fund, the McCormick Place Expansion Project Fund, the
9Illinois Tax Increment Fund, the Energy Infrastructure Fund,
10and the Tax Compliance and Administration Fund as provided in
11this Section, the Department shall pay each month into the
12Road Fund the amount estimated to represent 16% of the net
13revenue realized from the taxes imposed on motor fuel and
14gasohol. Beginning July 1, 2022 and until July 1, 2023,
15subject to the payment of amounts into the County and Mass
16Transit District Fund, the Local Government Tax Fund, the
17Build Illinois Fund, the McCormick Place Expansion Project
18Fund, the Illinois Tax Increment Fund, the Energy
19Infrastructure Fund, and the Tax Compliance and Administration
20Fund as provided in this Section, the Department shall pay
21each month into the Road Fund the amount estimated to
22represent 32% of the net revenue realized from the taxes
23imposed on motor fuel and gasohol. Beginning July 1, 2023 and
24until July 1, 2024, subject to the payment of amounts into the
25County and Mass Transit District Fund, the Local Government
26Tax Fund, the Build Illinois Fund, the McCormick Place

 

 

10300HB3857sam001- 156 -LRB103 27764 HLH 62310 a

1Expansion Project Fund, the Illinois Tax Increment Fund, the
2Energy Infrastructure Fund, and the Tax Compliance and
3Administration Fund as provided in this Section, the
4Department shall pay each month into the Road Fund the amount
5estimated to represent 48% of the net revenue realized from
6the taxes imposed on motor fuel and gasohol. Beginning July 1,
72024 and until July 1, 2025, subject to the payment of amounts
8into the County and Mass Transit District Fund, the Local
9Government Tax Fund, the Build Illinois Fund, the McCormick
10Place Expansion Project Fund, the Illinois Tax Increment Fund,
11the Energy Infrastructure Fund, and the Tax Compliance and
12Administration Fund as provided in this Section, the
13Department shall pay each month into the Road Fund the amount
14estimated to represent 64% of the net revenue realized from
15the taxes imposed on motor fuel and gasohol. Beginning on July
161, 2025, subject to the payment of amounts into the County and
17Mass Transit District Fund, the Local Government Tax Fund, the
18Build Illinois Fund, the McCormick Place Expansion Project
19Fund, the Illinois Tax Increment Fund, the Energy
20Infrastructure Fund, and the Tax Compliance and Administration
21Fund as provided in this Section, the Department shall pay
22each month into the Road Fund the amount estimated to
23represent 80% of the net revenue realized from the taxes
24imposed on motor fuel and gasohol. As used in this paragraph
25"motor fuel" has the meaning given to that term in Section 1.1
26of the Motor Fuel Tax Law, and "gasohol" has the meaning given

 

 

10300HB3857sam001- 157 -LRB103 27764 HLH 62310 a

1to that term in Section 3-40 of the Use Tax Act.
2    Of the remainder of the moneys received by the Department
3pursuant to this Act, 75% thereof shall be paid into the State
4treasury Treasury and 25% shall be reserved in a special
5account and used only for the transfer to the Common School
6Fund as part of the monthly transfer from the General Revenue
7Fund in accordance with Section 8a of the State Finance Act.
8    The Department may, upon separate written notice to a
9taxpayer, require the taxpayer to prepare and file with the
10Department on a form prescribed by the Department within not
11less than 60 days after receipt of the notice an annual
12information return for the tax year specified in the notice.
13Such annual return to the Department shall include a statement
14of gross receipts as shown by the retailer's last Federal
15income tax return. If the total receipts of the business as
16reported in the Federal income tax return do not agree with the
17gross receipts reported to the Department of Revenue for the
18same period, the retailer shall attach to his annual return a
19schedule showing a reconciliation of the 2 amounts and the
20reasons for the difference. The retailer's annual return to
21the Department shall also disclose the cost of goods sold by
22the retailer during the year covered by such return, opening
23and closing inventories of such goods for such year, costs of
24goods used from stock or taken from stock and given away by the
25retailer during such year, payroll information of the
26retailer's business during such year and any additional

 

 

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1reasonable information which the Department deems would be
2helpful in determining the accuracy of the monthly, quarterly
3or annual returns filed by such retailer as provided for in
4this Section.
5    If the annual information return required by this Section
6is not filed when and as required, the taxpayer shall be liable
7as follows:
8        (i) Until January 1, 1994, the taxpayer shall be
9    liable for a penalty equal to 1/6 of 1% of the tax due from
10    such taxpayer under this Act during the period to be
11    covered by the annual return for each month or fraction of
12    a month until such return is filed as required, the
13    penalty to be assessed and collected in the same manner as
14    any other penalty provided for in this Act.
15        (ii) On and after January 1, 1994, the taxpayer shall
16    be liable for a penalty as described in Section 3-4 of the
17    Uniform Penalty and Interest Act.
18    The chief executive officer, proprietor, owner or highest
19ranking manager shall sign the annual return to certify the
20accuracy of the information contained therein. Any person who
21willfully signs the annual return containing false or
22inaccurate information shall be guilty of perjury and punished
23accordingly. The annual return form prescribed by the
24Department shall include a warning that the person signing the
25return may be liable for perjury.
26    The provisions of this Section concerning the filing of an

 

 

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1annual information return do not apply to a retailer who is not
2required to file an income tax return with the United States
3Government.
4    As soon as possible after the first day of each month, upon
5certification of the Department of Revenue, the Comptroller
6shall order transferred and the Treasurer shall transfer from
7the General Revenue Fund to the Motor Fuel Tax Fund an amount
8equal to 1.7% of 80% of the net revenue realized under this Act
9for the second preceding month. Beginning April 1, 2000, this
10transfer is no longer required and shall not be made.
11    Net revenue realized for a month shall be the revenue
12collected by the State pursuant to this Act, less the amount
13paid out during that month as refunds to taxpayers for
14overpayment of liability.
15    For greater simplicity of administration, manufacturers,
16importers and wholesalers whose products are sold at retail in
17Illinois by numerous retailers, and who wish to do so, may
18assume the responsibility for accounting and paying to the
19Department all tax accruing under this Act with respect to
20such sales, if the retailers who are affected do not make
21written objection to the Department to this arrangement.
22    Any person who promotes, organizes, provides retail
23selling space for concessionaires or other types of sellers at
24the Illinois State Fair, DuQuoin State Fair, county fairs,
25local fairs, art shows, flea markets and similar exhibitions
26or events, including any transient merchant as defined by

 

 

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1Section 2 of the Transient Merchant Act of 1987, is required to
2file a report with the Department providing the name of the
3merchant's business, the name of the person or persons engaged
4in merchant's business, the permanent address and Illinois
5Retailers Occupation Tax Registration Number of the merchant,
6the dates and location of the event and other reasonable
7information that the Department may require. The report must
8be filed not later than the 20th day of the month next
9following the month during which the event with retail sales
10was held. Any person who fails to file a report required by
11this Section commits a business offense and is subject to a
12fine not to exceed $250.
13    Any person engaged in the business of selling tangible
14personal property at retail as a concessionaire or other type
15of seller at the Illinois State Fair, county fairs, art shows,
16flea markets and similar exhibitions or events, or any
17transient merchants, as defined by Section 2 of the Transient
18Merchant Act of 1987, may be required to make a daily report of
19the amount of such sales to the Department and to make a daily
20payment of the full amount of tax due. The Department shall
21impose this requirement when it finds that there is a
22significant risk of loss of revenue to the State at such an
23exhibition or event. Such a finding shall be based on evidence
24that a substantial number of concessionaires or other sellers
25who are not residents of Illinois will be engaging in the
26business of selling tangible personal property at retail at

 

 

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1the exhibition or event, or other evidence of a significant
2risk of loss of revenue to the State. The Department shall
3notify concessionaires and other sellers affected by the
4imposition of this requirement. In the absence of notification
5by the Department, the concessionaires and other sellers shall
6file their returns as otherwise required in this Section.
7(Source: P.A. 101-10, Article 15, Section 15-25, eff. 6-5-19;
8101-10, Article 25, Section 25-120, eff. 6-5-19; 101-27, eff.
96-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
10101-636, eff. 6-10-20; 102-634, eff. 8-27-21; 102-700, Article
1160, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
1265-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
131-1-23; revised 12-13-22.)
 
14    Section 25. The Fireworks Regulation Act of Illinois is
15amended by changing Section 2 and by adding Section 3.6 as
16follows:
 
17    (425 ILCS 30/2)  (from Ch. 127 1/2, par. 102)
18    Sec. 2. The following words and phrases, when used in this
19Act, shall for the purpose of this Act have the following
20definition and meaning:
21    (a) The term fireworks shall mean and include any
22explosive composition or any substance or combination of
23substances, or article prepared for the purpose of producing a
24visible or audible effect of a temporary exhibitional nature

 

 

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1by explosion, combustion, deflagration or detonation, and
2shall include blank cartridges, toy cannons in which
3explosives are used, the type of balloons which require fire
4underneath to propel the same, firecrackers, torpedoes, sky
5rockets, Roman candles, bombs or other fireworks of like
6construction and any fireworks containing any explosive
7compound; or any tablets or other device containing any
8explosive substance, or containing combustible substances
9producing visual effects. The term "fireworks" shall not
10include snake or glow worm pellets; smoke devices; handheld or
11ground-based sparklers that are nonexplosive and nonaerial,
12that may produce a crackling or whistling effect, and that
13contain 75 grams or less of pyrotechnic composition per tube
14or a total of 500 grams or less for multiple tubes; trick
15noisemakers known as "party poppers", "booby traps",
16"snappers", "trick matches", "cigarette loads" and "auto
17burglar alarms"; toy pistols, toy canes, toy guns, or other
18devices in which paper or plastic caps containing twenty-five
19hundredths grains or less of explosive compound are used,
20provided they are so constructed that the hand cannot come in
21contact with the cap when in place for the explosion; wood
22stick or wire sparklers that contain not more than 100 grams of
23pyrotechnic mixture per item; and toy pistol paper or plastic
24caps which contain less than twenty-five hundredths grains of
25explosive mixture; the sale and use of which shall be
26permitted at all times.

 

 

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1    (b) The term "fireworks plant" shall mean and include all
2lands, with buildings thereon, used in connection with the
3manufacture or processing of fireworks, as well as storehouses
4located thereon for the storage of finished fireworks.
5    (c) The term "fireworks factory building" shall mean any
6building or other structure in which the manufacture of
7fireworks, or in which any processing involving fireworks is
8carried on.
9    (d) The term "magazine" shall mean any building or other
10structure used for the storage of explosive raw materials used
11in the manufacture of fireworks.
12    (e) The term "Office" shall mean the Office of the State
13Fire Marshal.
14(Source: P.A. 83-474.)
 
15    (425 ILCS 30/3.6 new)
16    Sec. 3.6. Sale of sparklers. The following may not be sold
17to a person under the age of 18: (i) any ground-based sparkler
18that is nonexplosive and nonaerial, that may produce a
19crackling or whistling effect, and that contains 75 grams or
20less of pyrotechnic composition per tube or a total of 500
21grams or less for multiple tubes; or (ii) any wood stick or
22wire sparkler that contains not more than 100 grams of
23pyrotechnic mixture per item.
 
24    Section 30. The Pyrotechnic Use Act is amended by changing

 

 

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1Section 1 and by adding Section 3.5 as follows:
 
2    (425 ILCS 35/1)  (from Ch. 127 1/2, par. 127)
3    Sec. 1. Definitions. As used in this Act, the following
4words shall have the following meanings:
5    "1.3G fireworks" means those fireworks used for
6professional outdoor displays and classified as fireworks
7UN0333, UN0334, or UN0335 by the United States Department of
8Transportation under 49 C.F.R. 172.101.
9    "Consumer distributor" means any person who distributes,
10offers for sale, sells, or exchanges for consideration
11consumer fireworks in Illinois to another distributor or
12directly to any retailer or person for resale.
13    "Consumer fireworks" means those fireworks that must
14comply with the construction, chemical composition, and
15labeling regulations of the U.S. Consumer Products Safety
16Commission, as set forth in 16 C.F.R. Parts 1500 and 1507, and
17classified as fireworks UN0336 or UN0337 by the United States
18Department of Transportation under 49 C.F.R. 172.101.
19"Consumer fireworks" shall not include snake or glow worm
20pellets; smoke devices; trick noisemakers known as "party
21poppers", "booby traps", "snappers", "trick matches",
22"cigarette loads", and "auto burglar alarms"; handheld or
23ground-based sparklers that are nonexplosive and nonaerial,
24that produce a crackling or whistling effect, and that contain
2575 grams or less of pyrotechnic composition per tube or a total

 

 

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1of 500 grams or less for multiple tubes; toy pistols, toy
2canes, toy guns, or other devices in which paper or plastic
3caps containing twenty-five hundredths grains or less of
4explosive compound are used, provided they are so constructed
5that the hand cannot come in contact with the cap when in place
6for the explosion; wood stick or wire sparklers that contain
7not more than 100 grams of pyrotechnic mixture per item; and
8toy pistol paper or plastic caps that contain less than twenty
9hundredths grains of explosive mixture; the sale and use of
10which shall be permitted at all times.
11    "Consumer fireworks display" or "consumer display" means
12the detonation, ignition, or deflagration of consumer
13fireworks to produce a visual or audible effect.
14    "Consumer operator" means an adult individual who is
15responsible for the safety, setup, and discharge of the
16consumer fireworks display and who has completed the training
17required in Section 2.2 of this Act.
18    "Consumer retailer" means any person who offers for sale,
19sells, or exchanges for consideration consumer fireworks in
20Illinois directly to any person with a consumer display
21permit.
22    "Display fireworks" means 1.3G or special effects
23fireworks or as further defined in the Pyrotechnic Distributor
24and Operator Licensing Act.
25    "Flame effect" means the detonation, ignition, or
26deflagration of flammable gases, liquids, or special materials

 

 

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1to produce a thermal, physical, visual, or audible effect
2before the public, invitees, or licensees, regardless of
3whether admission is charged, in accordance with National Fire
4Protection Association 160 guidelines, and as may be further
5defined in the Pyrotechnic Distributor and Operator Licensing
6Act.
7    "Lead pyrotechnic operator" means an individual who is
8responsible for the safety, setup, and discharge of the
9pyrotechnic display or pyrotechnic service and who is licensed
10pursuant to the Pyrotechnic Distributor and Operator Licensing
11Act.
12    "Person" means an individual, firm, corporation,
13association, partnership, company, consortium, joint venture,
14commercial entity, state, municipality, or political
15subdivision of a state or any agency, department, or
16instrumentality of the United States and any officer, agent,
17or employee of these entities.
18    "Production company" means any person in the film, digital
19and video media, television, commercial, music, or theatrical
20stage industry who provides pyrotechnic services or
21pyrotechnic display services as part of a film, digital and
22video media, television, commercial, music, or theatrical
23production in the State of Illinois and is licensed by the
24Office pursuant to the Pyrotechnic Distributor and Operator
25Licensing Act.
26    "Pyrotechnic display" means the detonation, ignition, or

 

 

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1deflagration of display fireworks or flame effects to produce
2visual or audible effects of an exhibitional nature before the
3public, invitees, or licensees, regardless of whether
4admission is charged, and as may be further defined in the
5Pyrotechnic Distributor and Operator Licensing Act.
6    "Pyrotechnic distributor" means any person who distributes
7display fireworks for sale in the State of Illinois or
8provides them as part of a pyrotechnic display service in the
9State of Illinois or provides only pyrotechnic services and is
10licensed by the Office pursuant to the Pyrotechnic Distributor
11and Operator Licensing Act.
12    "Pyrotechnic service" means the detonation, ignition, or
13deflagration of display fireworks, special effects, or flame
14effects to produce a visual or audible effect.
15    "Special effects fireworks" means pyrotechnic devices used
16for special effects by professionals in the performing arts in
17conjunction with theatrical, musical, or other productions
18that are similar to consumer fireworks in chemical
19compositions and construction, but are not intended for
20consumer use and are not labeled as such or identified as
21"intended for indoor use". "Special effects fireworks" are
22classified as fireworks UN0431 or UN0432 by the United States
23Department of Transportation under 49 C.F.R. 172.101.
24(Source: P.A. 99-642, eff. 7-28-16.)
 
25    (425 ILCS 35/3.5 new)

 

 

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1    Sec. 3.5. Sale of sparklers. The following may not be sold
2to a person under the age of 18: (i) any ground-based sparkler
3that is nonexplosive and nonaerial, that may produce a
4crackling or whistling effect, and that contains 75 grams or
5less of pyrotechnic composition per tube or a total of 500
6grams or less for multiple tubes; or (ii) any wood stick or
7wire sparkler that contains not more than 100 grams of
8pyrotechnic mixture per item.
 
9    Section 99. Effective date. This Act takes effect January
101, 2024.".