103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4114

 

Introduced , by Rep. Kevin Schmidt

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-18  from Ch. 127, par. 142z-18
30 ILCS 105/6z-20  from Ch. 127, par. 142z-20
35 ILCS 105/3-6
35 ILCS 105/3-10
35 ILCS 105/9  from Ch. 120, par. 439.9
35 ILCS 120/2-8
35 ILCS 120/2-10
35 ILCS 120/3  from Ch. 120, par. 442

    Amends the Use Tax Act and the Retailers' Occupation Tax Act. Creates a sales tax holiday period for certain school supplies from August 2, 2024 through August 11, 2024.Effective immediately.


LRB103 33313 HLH 63123 b

 

 

A BILL FOR

 

HB4114LRB103 33313 HLH 63123 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by changing
5Sections 6z-18 and 6z-20 as follows:
 
6    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
7    Sec. 6z-18. Local Government Tax Fund. A portion of the
8money paid into the Local Government Tax Fund from sales of
9tangible personal property taxed at the 1% rate under the
10Retailers' Occupation Tax Act and the Service Occupation Tax
11Act, which occurred in municipalities, shall be distributed to
12each municipality based upon the sales which occurred in that
13municipality. The remainder shall be distributed to each
14county based upon the sales which occurred in the
15unincorporated area of that county.
16    Moneys transferred from the Grocery Tax Replacement Fund
17to the Local Government Tax Fund under Section 6z-130 shall be
18treated under this Section in the same manner as if they had
19been remitted with the return on which they were reported.
20    A portion of the money paid into the Local Government Tax
21Fund from the 6.25% general use tax rate on the selling price
22of tangible personal property which is purchased outside
23Illinois at retail from a retailer and which is titled or

 

 

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1registered by any agency of this State's government shall be
2distributed to municipalities as provided in this paragraph.
3Each municipality shall receive the amount attributable to
4sales for which Illinois addresses for titling or registration
5purposes are given as being in such municipality. The
6remainder of the money paid into the Local Government Tax Fund
7from such sales shall be distributed to counties. Each county
8shall receive the amount attributable to sales for which
9Illinois addresses for titling or registration purposes are
10given as being located in the unincorporated area of such
11county.
12    A portion of the money paid into the Local Government Tax
13Fund from the 6.25% general rate (and, beginning July 1, 2000
14and through December 31, 2000, the 1.25% rate on motor fuel and
15gasohol, and during the sales tax holiday period, as defined
16in Section 3-6 of the Use Tax Act and Section 2-8 of the
17Retailers' Occupation Tax Act, beginning on August 6, 2010
18through August 15, 2010, and beginning again on August 5, 2022
19through August 14, 2022, the 1.25% rate on sales tax holiday
20items) on sales subject to taxation under the Retailers'
21Occupation Tax Act and the Service Occupation Tax Act, which
22occurred in municipalities, shall be distributed to each
23municipality, based upon the sales which occurred in that
24municipality. The remainder shall be distributed to each
25county, based upon the sales which occurred in the
26unincorporated area of such county.

 

 

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1    For the purpose of determining allocation to the local
2government unit, a retail sale by a producer of coal or other
3mineral mined in Illinois is a sale at retail at the place
4where the coal or other mineral mined in Illinois is extracted
5from the earth. This paragraph does not apply to coal or other
6mineral when it is delivered or shipped by the seller to the
7purchaser at a point outside Illinois so that the sale is
8exempt under the United States Constitution as a sale in
9interstate or foreign commerce.
10    Whenever the Department determines that a refund of money
11paid into the Local Government Tax Fund should be made to a
12claimant instead of issuing a credit memorandum, the
13Department shall notify the State Comptroller, who shall cause
14the order to be drawn for the amount specified, and to the
15person named, in such notification from the Department. Such
16refund shall be paid by the State Treasurer out of the Local
17Government Tax Fund.
18    As soon as possible after the first day of each month,
19beginning January 1, 2011, upon certification of the
20Department of Revenue, the Comptroller shall order
21transferred, and the Treasurer shall transfer, to the STAR
22Bonds Revenue Fund the local sales tax increment, as defined
23in the Innovation Development and Economy Act, collected
24during the second preceding calendar month for sales within a
25STAR bond district and deposited into the Local Government Tax
26Fund, less 3% of that amount, which shall be transferred into

 

 

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

 

 

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1in this Section to be given to the Comptroller by the
2Department, the Comptroller shall cause the orders to be drawn
3for the respective amounts in accordance with the directions
4contained in such certification.
5    When certifying the amount of monthly disbursement to a
6municipality or county under this Section, the Department
7shall increase or decrease that amount by an amount necessary
8to offset any misallocation of previous disbursements. The
9offset amount shall be the amount erroneously disbursed within
10the 6 months preceding the time a misallocation is discovered.
11    The provisions directing the distributions from the
12special fund in the State treasury Treasury provided for in
13this Section shall constitute an irrevocable and continuing
14appropriation of all amounts as provided herein. The State
15Treasurer and State Comptroller are hereby authorized to make
16distributions as provided in this Section.
17    In construing any development, redevelopment, annexation,
18preannexation, or other lawful agreement in effect prior to
19September 1, 1990, which describes or refers to receipts from
20a county or municipal retailers' occupation tax, use tax or
21service occupation tax which now cannot be imposed, such
22description or reference shall be deemed to include the
23replacement revenue for such abolished taxes, distributed from
24the Local Government Tax Fund.
25    As soon as possible after March 8, 2013 (the effective
26date of Public Act 98-3) this amendatory Act of the 98th

 

 

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1General Assembly, the State Comptroller shall order and the
2State Treasurer shall transfer $6,600,000 from the Local
3Government Tax Fund to the Illinois State Medical Disciplinary
4Fund.
5(Source: P.A. 102-700, Article 60, Section 60-10, eff.
64-19-22; 102-700, Article 65, Section 65-15, eff. 4-19-22;
7revised 6-2-22.)
 
8    (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)
9    Sec. 6z-20. County and Mass Transit District Fund. Of the
10money received from the 6.25% general rate (and, beginning
11July 1, 2000 and through December 31, 2000, the 1.25% rate on
12motor fuel and gasohol, and during the sales tax holiday
13period, as defined in Section 3-6 of the Use Tax Act and
14Section 2-8 of the Retailers' Occupation Tax Act beginning on
15August 6, 2010 through August 15, 2010, and beginning again on
16August 5, 2022 through August 14, 2022, the 1.25% rate on sales
17tax holiday items) on sales subject to taxation under the
18Retailers' Occupation Tax Act and Service Occupation Tax Act
19and paid into the County and Mass Transit District Fund,
20distribution to the Regional Transportation Authority tax
21fund, created pursuant to Section 4.03 of the Regional
22Transportation Authority Act, for deposit therein shall be
23made based upon the retail sales occurring in a county having
24more than 3,000,000 inhabitants. The remainder shall be
25distributed to each county having 3,000,000 or fewer

 

 

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1inhabitants based upon the retail sales occurring in each such
2county.
3    For the purpose of determining allocation to the local
4government unit, a retail sale by a producer of coal or other
5mineral mined in Illinois is a sale at retail at the place
6where the coal or other mineral mined in Illinois is extracted
7from the earth. This paragraph does not apply to coal or other
8mineral when it is delivered or shipped by the seller to the
9purchaser at a point outside Illinois so that the sale is
10exempt under the United States Constitution as a sale in
11interstate or foreign commerce.
12    Of the money received from the 6.25% general use tax rate
13on tangible personal property which is purchased outside
14Illinois at retail from a retailer and which is titled or
15registered by any agency of this State's government and paid
16into the County and Mass Transit District Fund, the amount for
17which Illinois addresses for titling or registration purposes
18are given as being in each county having more than 3,000,000
19inhabitants shall be distributed into the Regional
20Transportation Authority tax fund, created pursuant to Section
214.03 of the Regional Transportation Authority Act. The
22remainder of the money paid from such sales shall be
23distributed to each county based on sales for which Illinois
24addresses for titling or registration purposes are given as
25being located in the county. Any money paid into the Regional
26Transportation Authority Occupation and Use Tax Replacement

 

 

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1Fund from the County and Mass Transit District Fund prior to
2January 14, 1991, which has not been paid to the Authority
3prior to that date, shall be transferred to the Regional
4Transportation Authority tax fund.
5    Whenever the Department determines that a refund of money
6paid into the County and Mass Transit District Fund should be
7made to a claimant instead of issuing a credit memorandum, the
8Department shall notify the State Comptroller, who shall cause
9the order to be drawn for the amount specified, and to the
10person named, in such notification from the Department. Such
11refund shall be paid by the State Treasurer out of the County
12and Mass Transit District Fund.
13    As soon as possible after the first day of each month,
14beginning January 1, 2011, upon certification of the
15Department of Revenue, the Comptroller shall order
16transferred, and the Treasurer shall transfer, to the STAR
17Bonds Revenue Fund the local sales tax increment, as defined
18in the Innovation Development and Economy Act, collected
19during the second preceding calendar month for sales within a
20STAR bond district and deposited into the County and Mass
21Transit District Fund, less 3% of that amount, which shall be
22transferred into the Tax Compliance and Administration Fund
23and shall be used by the Department, subject to appropriation,
24to cover the costs of the Department in administering the
25Innovation Development and Economy Act.
26    After the monthly transfer to the STAR Bonds Revenue Fund,

 

 

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1on or before the 25th day of each calendar month, the
2Department shall prepare and certify to the Comptroller the
3disbursement of stated sums of money to the Regional
4Transportation Authority and to named counties, the counties
5to be those entitled to distribution, as hereinabove provided,
6of taxes or penalties paid to the Department during the second
7preceding calendar month. The amount to be paid to the
8Regional Transportation Authority and each county having
93,000,000 or fewer inhabitants shall be the amount (not
10including credit memoranda) collected during the second
11preceding calendar month by the Department and paid into the
12County and Mass Transit District Fund, plus an amount the
13Department determines is necessary to offset any amounts which
14were erroneously paid to a different taxing body, and not
15including an amount equal to the amount of refunds made during
16the second preceding calendar month by the Department, and not
17including any amount which the Department determines is
18necessary to offset any amounts which were payable to a
19different taxing body but were erroneously paid to the
20Regional Transportation Authority or county, and not including
21any amounts that are transferred to the STAR Bonds Revenue
22Fund, less 1.5% of the amount to be paid to the Regional
23Transportation Authority, which shall be transferred into the
24Tax Compliance and Administration Fund. The Department, at the
25time of each monthly disbursement to the Regional
26Transportation Authority, shall prepare and certify to the

 

 

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1State Comptroller the amount to be transferred into the Tax
2Compliance and Administration Fund under this Section. Within
310 days after receipt, by the Comptroller, of the disbursement
4certification to the Regional Transportation Authority,
5counties, and the Tax Compliance and Administration Fund
6provided for in this Section to be given to the Comptroller by
7the Department, the Comptroller shall cause the orders to be
8drawn for the respective amounts in accordance with the
9directions contained in such certification.
10    When certifying the amount of a monthly disbursement to
11the Regional Transportation Authority or to a county under
12this Section, the Department shall increase or decrease that
13amount by an amount necessary to offset any misallocation of
14previous disbursements. The offset amount shall be the amount
15erroneously disbursed within the 6 months preceding the time a
16misallocation is discovered.
17    The provisions directing the distributions from the
18special fund in the State Treasury provided for in this
19Section and from the Regional Transportation Authority tax
20fund created by Section 4.03 of the Regional Transportation
21Authority Act shall constitute an irrevocable and continuing
22appropriation of all amounts as provided herein. The State
23Treasurer and State Comptroller are hereby authorized to make
24distributions as provided in this Section.
25    In construing any development, redevelopment, annexation,
26preannexation or other lawful agreement in effect prior to

 

 

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1September 1, 1990, which describes or refers to receipts from
2a county or municipal retailers' occupation tax, use tax or
3service occupation tax which now cannot be imposed, such
4description or reference shall be deemed to include the
5replacement revenue for such abolished taxes, distributed from
6the County and Mass Transit District Fund or Local Government
7Distributive Fund, as the case may be.
8(Source: P.A. 102-700, eff. 4-19-22.)
 
9    Section 10. The Use Tax Act is amended by changing
10Sections 3-6, 3-10, and 9 as follows:
 
11    (35 ILCS 105/3-6)
12    Sec. 3-6. Sales tax holiday items.
13    (a) Any tangible personal property described in this
14subsection is a sales tax holiday item and qualifies for the
151.25% reduced rate of tax during the sales tax holiday period
16for the period set forth in Section 3-10 of this Act
17(hereinafter referred to as the Sales Tax Holiday Period). The
18reduced rate on these items shall be administered under the
19provisions of subsection (b) of this Section. The following
20items are subject to the reduced rate:
21        (1) Clothing items that each have a retail selling
22    price of less than $125.
23        "Clothing" means, unless otherwise specified in this
24    Section, all human wearing apparel suitable for general

 

 

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1    use. "Clothing" does not include clothing accessories,
2    protective equipment, or sport or recreational equipment.
3    "Clothing" includes, but is not limited to: household and
4    shop aprons; athletic supporters; bathing suits and caps;
5    belts and suspenders; boots; coats and jackets; ear muffs;
6    footlets; gloves and mittens for general use; hats and
7    caps; hosiery; insoles for shoes; lab coats; neckties;
8    overshoes; pantyhose; rainwear; rubber pants; sandals;
9    scarves; shoes and shoelaces; slippers; sneakers; socks
10    and stockings; steel-toed shoes; underwear; and school
11    uniforms.
12        "Clothing accessories" means, but is not limited to:
13    briefcases; cosmetics; hair notions, including, but not
14    limited to barrettes, hair bows, and hair nets; handbags;
15    handkerchiefs; jewelry; non-prescription sunglasses;
16    umbrellas; wallets; watches; and wigs and hair pieces.
17        "Protective equipment" means, but is not limited to:
18    breathing masks; clean room apparel and equipment; ear and
19    hearing protectors; face shields; hard hats; helmets;
20    paint or dust respirators; protective gloves; safety
21    glasses and goggles; safety belts; tool belts; and
22    welder's gloves and masks.
23        "Sport or recreational equipment" means, but is not
24    limited to: ballet and tap shoes; cleated or spiked
25    athletic shoes; gloves, including, but not limited to,
26    baseball, bowling, boxing, hockey, and golf gloves;

 

 

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1    goggles; hand and elbow guards; life preservers and vests;
2    mouth guards; roller and ice skates; shin guards; shoulder
3    pads; ski boots; waders; and wetsuits and fins.
4        (2) School supplies. "School supplies" means, unless
5    otherwise specified in this Section, items used by a
6    student in a course of study. The purchase of school
7    supplies for use by persons other than students for use in
8    a course of study are not eligible for the reduced rate of
9    tax. "School supplies" do not include school art supplies;
10    school instructional materials; cameras; film and memory
11    cards; videocameras, tapes, and videotapes; computers;
12    cell phones; Personal Digital Assistants (PDAs); handheld
13    electronic schedulers; and school computer supplies.
14        "School supplies" includes, but is not limited to:
15    binders; book bags; calculators; cellophane tape;
16    blackboard chalk; compasses; composition books; crayons;
17    erasers; expandable, pocket, plastic, and manila folders;
18    glue, paste, and paste sticks; highlighters; index cards;
19    index card boxes; legal pads; lunch boxes; markers;
20    notebooks; paper, including loose leaf ruled notebook
21    paper, copy paper, graph paper, tracing paper, manila
22    paper, colored paper, poster board, and construction
23    paper; pencils; pencil leads; pens; ink and ink refills
24    for pens; pencil boxes and other school supply boxes;
25    pencil sharpeners; protractors; rulers; scissors; and
26    writing tablets.

 

 

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1        "School art supply" means an item commonly used by a
2    student in a course of study for artwork and includes only
3    the following items: clay and glazes; acrylic, tempera,
4    and oil paint; paintbrushes for artwork; sketch and
5    drawing pads; and watercolors.
6        "School instructional material" means written material
7    commonly used by a student in a course of study as a
8    reference and to learn the subject being taught and
9    includes only the following items: reference books;
10    reference maps and globes; textbooks; and workbooks.
11        "School computer supply" means an item commonly used
12    by a student in a course of study in which a computer is
13    used and applies only to the following items: flashdrives
14    and other computer data storage devices; data storage
15    media, such as diskettes and compact disks; boxes and
16    cases for disk storage; external ports or drives; computer
17    cases; computer cables; computer printers; and printer
18    cartridges, toner, and ink.
19    (b) Administration. Notwithstanding any other provision of
20this Act, the reduced rate of tax under Section 3-10 of this
21Act for clothing and school supplies shall be administered by
22the Department under the provisions of this subsection (b).
23        (1) Bundled sales. Items that qualify for the reduced
24    rate of tax that are bundled together with items that do
25    not qualify for the reduced rate of tax and that are sold
26    for one itemized price will be subject to the reduced rate

 

 

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1    of tax only if the value of the items that qualify for the
2    reduced rate of tax exceeds the value of the items that do
3    not qualify for the reduced rate of tax.
4        (2) Coupons and discounts. An unreimbursed discount by
5    the seller reduces the sales price of the property so that
6    the discounted sales price determines whether the sales
7    price is within a sales tax holiday price threshold. A
8    coupon or other reduction in the sales price is treated as
9    a discount if the seller is not reimbursed for the coupon
10    or reduction amount by a third party.
11        (3) Splitting of items normally sold together.
12    Articles that are normally sold as a single unit must
13    continue to be sold in that manner. Such articles cannot
14    be priced separately and sold as individual items in order
15    to obtain the reduced rate of tax. For example, a pair of
16    shoes cannot have each shoe sold separately so that the
17    sales price of each shoe is within a sales tax holiday
18    price threshold.
19        (4) Rain checks. A rain check is a procedure that
20    allows a customer to purchase an item at a certain price at
21    a later time because the particular item was out of stock.
22    Eligible property that customers purchase during the sales
23    tax holiday period Sales Tax Holiday Period with the use
24    of a rain check will qualify for the reduced rate of tax
25    regardless of when the rain check was issued. Issuance of
26    a rain check during the sales tax holiday period Sales Tax

 

 

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1    Holiday Period will not qualify eligible property for the
2    reduced rate of tax if the property is actually purchased
3    after the sales tax holiday period Sales Tax Holiday
4    Period.
5        (5) Exchanges. The procedure for an exchange in
6    regards to a sales tax holiday is as follows:
7            (A) If a customer purchases an item of eligible
8        property during the sales tax holiday period Sales Tax
9        Holiday Period, but later exchanges the item for a
10        similar eligible item, even if a different size,
11        different color, or other feature, no additional tax
12        is due even if the exchange is made after the sales tax
13        holiday period Sales Tax Holiday Period.
14            (B) If a customer purchases an item of eligible
15        property during the sales tax holiday period Sales Tax
16        Holiday Period, but after the sales tax holiday period
17        Sales Tax Holiday Period has ended, the customer
18        returns the item and receives credit on the purchase
19        of a different item, the 6.25% general merchandise
20        sales tax rate is due on the sale of the newly
21        purchased item.
22            (C) If a customer purchases an item of eligible
23        property before the sales tax holiday period Sales Tax
24        Holiday Period, but during the sales tax holiday
25        period Sales Tax Holiday Period the customer returns
26        the item and receives credit on the purchase of a

 

 

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1        different item of eligible property, the reduced rate
2        of tax is due on the sale of the new item if the new
3        item is purchased during the sales tax holiday period
4        Sales Tax Holiday Period.
5        (6) (Blank).
6        (7) Order date and back orders. For the purpose of a
7    sales tax holiday, eligible property qualifies for the
8    reduced rate of tax if: (i) the item is both delivered to
9    and paid for by the customer during the sales tax holiday
10    period Sales Tax Holiday Period or (ii) the customer
11    orders and pays for the item and the seller accepts the
12    order during the sales tax holiday period Sales Tax
13    Holiday Period for immediate shipment, even if delivery is
14    made after the sales tax holiday period Sales Tax Holiday
15    Period. The seller accepts an order when the seller has
16    taken action to fill the order for immediate shipment.
17    Actions to fill an order include placement of an "in date"
18    stamp on an order or assignment of an "order number" to an
19    order within the sales tax holiday period Sales Tax
20    Holiday Period. An order is for immediate shipment when
21    the customer does not request delayed shipment. An order
22    is for immediate shipment notwithstanding that the
23    shipment may be delayed because of a backlog of orders or
24    because stock is currently unavailable to, or on back
25    order by, the seller.
26        (8) Returns. For a 60-day period immediately after the

 

 

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1    sales tax holiday period Sales Tax Holiday Period, if a
2    customer returns an item that would qualify for the
3    reduced rate of tax, credit for or refund of sales tax
4    shall be given only at the reduced rate unless the
5    customer provides a receipt or invoice that shows tax was
6    paid at the 6.25% general merchandise rate, or the seller
7    has sufficient documentation to show that tax was paid at
8    the 6.25% general merchandise rate on the specific item.
9    This 60-day period is set solely for the purpose of
10    designating a time period during which the customer must
11    provide documentation that shows that the appropriate
12    sales tax rate was paid on returned merchandise. The
13    60-day period is not intended to change a seller's policy
14    on the time period during which the seller will accept
15    returns.
16    (b-5) As used in this Section, "sales tax holiday period"
17means:
18        (1) from August 6, 2010 through August 15, 2010;
19        (2) from August 5, 2022 through August 14, 2022; and
20        (3) from August 2, 2024 through August 11, 2024.
21    (c) The Department may implement the provisions of this
22Section through the use of emergency rules, along with
23permanent rules filed concurrently with such emergency rules,
24in accordance with the provisions of Section 5-45 of the
25Illinois Administrative Procedure Act. For purposes of the
26Illinois Administrative Procedure Act, the adoption of rules

 

 

HB4114- 19 -LRB103 33313 HLH 63123 b

1to implement the provisions of this Section shall be deemed an
2emergency and necessary for the public interest, safety, and
3welfare.
4(Source: P.A. 102-700, eff. 4-19-22.)
 
5    (35 ILCS 105/3-10)
6    Sec. 3-10. Rate of tax. Unless otherwise provided in this
7Section, the tax imposed by this Act is at the rate of 6.25% of
8either the selling price or the fair market value, if any, of
9the tangible personal property. In all cases where property
10functionally used or consumed is the same as the property that
11was purchased at retail, then the tax is imposed on the selling
12price of the property. In all cases where property
13functionally used or consumed is a by-product or waste product
14that has been refined, manufactured, or produced from property
15purchased at retail, then the tax is imposed on the lower of
16the fair market value, if any, of the specific property so used
17in this State or on the selling price of the property purchased
18at retail. For purposes of this Section "fair market value"
19means the price at which property would change hands between a
20willing buyer and a willing seller, neither being under any
21compulsion to buy or sell and both having reasonable knowledge
22of the relevant facts. The fair market value shall be
23established by Illinois sales by the taxpayer of the same
24property as that functionally used or consumed, or if there
25are no such sales by the taxpayer, then comparable sales or

 

 

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1purchases of property of like kind and character in Illinois.
2    Beginning on July 1, 2000 and through December 31, 2000,
3with respect to motor fuel, as defined in Section 1.1 of the
4Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
5the Use Tax Act, the tax is imposed at the rate of 1.25%.
6    During the sales tax holiday period, as defined in Section
73-6, Beginning on August 6, 2010 through August 15, 2010, and
8beginning again on August 5, 2022 through August 14, 2022,
9with respect to sales tax holiday items described as defined
10in Section 3-6 of this Act, the tax is imposed at the rate of
111.25%.
12    With respect to gasohol, the tax imposed by this Act
13applies to (i) 70% of the proceeds of sales made on or after
14January 1, 1990, and before July 1, 2003, (ii) 80% of the
15proceeds of sales made on or after July 1, 2003 and on or
16before July 1, 2017, and (iii) 100% of the proceeds of sales
17made thereafter. If, at any time, however, the tax under this
18Act on sales of gasohol is imposed at the rate of 1.25%, then
19the tax imposed by this Act applies to 100% of the proceeds of
20sales of gasohol made during that time.
21    With respect to majority blended ethanol fuel, the tax
22imposed by this Act does not apply to the proceeds of sales
23made on or after July 1, 2003 and on or before December 31,
242023 but applies to 100% of the proceeds of sales made
25thereafter.
26    With respect to biodiesel blends with no less than 1% and

 

 

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1no more than 10% biodiesel, the tax imposed by this Act applies
2to (i) 80% of the proceeds of sales made on or after July 1,
32003 and on or before December 31, 2018 and (ii) 100% of the
4proceeds of sales made after December 31, 2018 and before
5January 1, 2024. On and after January 1, 2024 and on or before
6December 31, 2030, the taxation of biodiesel, renewable
7diesel, and biodiesel blends shall be as provided in Section
83-5.1. If, at any time, however, the tax under this Act on
9sales of biodiesel blends with no less than 1% and no more than
1010% biodiesel is imposed at the rate of 1.25%, then the tax
11imposed by this Act applies to 100% of the proceeds of sales of
12biodiesel blends with no less than 1% and no more than 10%
13biodiesel made during that time.
14    With respect to biodiesel and biodiesel blends with more
15than 10% but no more than 99% biodiesel, the tax imposed by
16this Act does not apply to the proceeds of sales made on or
17after July 1, 2003 and on or before December 31, 2023. On and
18after January 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.
21    Until July 1, 2022 and beginning again on July 1, 2023,
22with respect to food for human consumption that is to be
23consumed off the premises where it is sold (other than
24alcoholic beverages, food consisting of or infused with adult
25use cannabis, soft drinks, and food that has been prepared for
26immediate consumption), the tax is imposed at the rate of 1%.

 

 

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1Beginning on July 1, 2022 and until July 1, 2023, with respect
2to food for human consumption that is to be consumed off the
3premises where it is sold (other than alcoholic beverages,
4food consisting of or infused with adult use cannabis, soft
5drinks, and food that has been prepared for immediate
6consumption), the tax is imposed at the rate of 0%.
7    With respect to prescription and nonprescription
8medicines, drugs, medical appliances, products classified as
9Class III medical devices by the United States Food and Drug
10Administration that are used for cancer treatment pursuant to
11a prescription, as well as any accessories and components
12related to those devices, modifications to a motor vehicle for
13the purpose of rendering it usable by a person with a
14disability, and insulin, blood sugar testing materials,
15syringes, and needles used by human diabetics, the tax is
16imposed at the rate of 1%. For the purposes of this Section,
17until September 1, 2009: the term "soft drinks" means any
18complete, finished, ready-to-use, non-alcoholic drink, whether
19carbonated or not, including, but not limited to, soda water,
20cola, fruit juice, vegetable juice, carbonated water, and all
21other preparations commonly known as soft drinks of whatever
22kind or description that are contained in any closed or sealed
23bottle, can, carton, or container, regardless of size; but
24"soft drinks" does not include coffee, tea, non-carbonated
25water, infant formula, milk or milk products as defined in the
26Grade A Pasteurized Milk and Milk Products Act, or drinks

 

 

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

 

 

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

 

 

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1cannabis subject to tax under the Cannabis Cultivation
2Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
3and does not include cannabis subject to tax under the
4Compassionate Use of Medical Cannabis Program Act.
5    If the property that is purchased at retail from a
6retailer is acquired outside Illinois and used outside
7Illinois before being brought to Illinois for use here and is
8taxable under this Act, the "selling price" on which the tax is
9computed shall be reduced by an amount that represents a
10reasonable allowance 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; 102-700, Article 20, Section 20-5, eff.
144-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
15102-700, Article 65, Section 65-5, eff. 4-19-22; revised
165-27-22.)
 
17    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
18    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
19and trailers that are required to be registered with an agency
20of this State, each retailer required or authorized to collect
21the tax imposed by this Act shall pay to the Department the
22amount of such tax (except as otherwise provided) at the time
23when he is required to file his return for the period during
24which such tax was collected, less a discount of 2.1% prior to
25January 1, 1990, and 1.75% on and after January 1, 1990, or $5

 

 

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1per calendar year, whichever is greater, which is allowed to
2reimburse the retailer for expenses incurred in collecting the
3tax, keeping records, preparing and filing returns, remitting
4the tax and supplying data to the Department on request. When
5determining the discount allowed under this Section, retailers
6shall include the amount of tax that would have been due at the
76.25% rate but for the 1.25% rate imposed on sales tax holiday
8items under Public Act 102-700 or this amendatory Act of the
9103rd General Assembly this amendatory Act of the 102nd
10General Assembly. The discount under this Section is not
11allowed for the 1.25% portion of taxes paid on aviation fuel
12that is subject to the revenue use requirements of 49 U.S.C.
1347107(b) and 49 U.S.C. 47133. When determining the discount
14allowed under this Section, retailers shall include the amount
15of tax that would have been due at the 1% rate but for the 0%
16rate imposed under Public Act 102-700 this amendatory Act of
17the 102nd General Assembly. In the case of retailers who
18report and pay the tax on a transaction by transaction basis,
19as provided in this Section, such discount shall be taken with
20each such tax remittance instead of when such retailer files
21his periodic return. The discount allowed under this Section
22is allowed only for returns that are filed in the manner
23required by this Act. The Department may disallow the discount
24for retailers whose certificate of registration is revoked at
25the time the return is filed, but only if the Department's
26decision to revoke the certificate of registration has become

 

 

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1final. A retailer need not remit that part of any tax collected
2by him to the extent that he is required to remit and does
3remit the tax imposed by the Retailers' Occupation Tax Act,
4with respect to the sale of the same property.
5    Where such tangible personal property is sold under a
6conditional sales contract, or under any other form of sale
7wherein the payment of the principal sum, or a part thereof, is
8extended beyond the close of the period for which the return is
9filed, the retailer, in collecting the tax (except as to motor
10vehicles, watercraft, aircraft, and trailers that are required
11to be registered with an agency of this State), may collect for
12each tax return period, only the tax applicable to that part of
13the selling price actually received during such tax return
14period.
15    Except as provided in this Section, on or before the
16twentieth day of each calendar month, such retailer shall file
17a return for the preceding calendar month. Such return shall
18be filed on forms prescribed by the Department and shall
19furnish such information as the Department may reasonably
20require. The return shall include the gross receipts on food
21for human consumption that is to be consumed off the premises
22where it is sold (other than alcoholic beverages, food
23consisting of or infused with adult use cannabis, soft drinks,
24and food that has been prepared for immediate consumption)
25which were received during the preceding calendar month,
26quarter, or year, as appropriate, and upon which tax would

 

 

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1have been due but for the 0% rate imposed under Public Act
2102-700 this amendatory Act of the 102nd General Assembly. The
3return shall also include the amount of tax that would have
4been due on food for human consumption that is to be consumed
5off the premises where it is sold (other than alcoholic
6beverages, food consisting of or infused with adult use
7cannabis, soft drinks, and food that has been prepared for
8immediate consumption) but for the 0% rate imposed under
9Public Act 102-700 this amendatory Act of the 102nd General
10Assembly.
11    On and after January 1, 2018, except for returns required
12to be filed prior to January 1, 2023 for motor vehicles,
13watercraft, aircraft, and trailers that are required to be
14registered with an agency of this State, with respect to
15retailers whose annual gross receipts average $20,000 or more,
16all returns required to be filed pursuant to this Act shall be
17filed electronically. On and after January 1, 2023, with
18respect to retailers whose annual gross receipts average
19$20,000 or more, all returns required to be filed pursuant to
20this Act, including, but not limited to, returns for motor
21vehicles, watercraft, aircraft, and trailers that are required
22to be registered with an agency of this State, shall be filed
23electronically. Retailers who demonstrate that they do not
24have access to the Internet or demonstrate hardship in filing
25electronically may petition the Department to waive the
26electronic filing requirement.

 

 

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1    The Department may require returns to be filed on a
2quarterly basis. If so required, a return for each calendar
3quarter shall be filed on or before the twentieth day of the
4calendar month following the end of such calendar quarter. The
5taxpayer shall also file a return with the Department for each
6of the first two months of each calendar quarter, on or before
7the twentieth day of the following calendar month, stating:
8        1. The name of the seller;
9        2. The address of the principal place of business from
10    which he engages in the business of selling tangible
11    personal property at retail in this State;
12        3. The total amount of taxable receipts received by
13    him during the preceding calendar month from sales of
14    tangible personal property by him during such preceding
15    calendar month, including receipts from charge and time
16    sales, but less all 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 retailer required or authorized to collect the tax
24imposed by this Act on aviation fuel sold at retail in this
25State during the preceding calendar month shall, instead of
26reporting and paying tax on aviation fuel as otherwise

 

 

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1required by this Section, report and pay such tax on a separate
2aviation fuel tax return. The requirements related to the
3return shall be as otherwise provided in this Section.
4Notwithstanding any other provisions of this Act to the
5contrary, retailers collecting tax on aviation fuel shall file
6all aviation fuel tax returns and shall make all aviation fuel
7tax payments by electronic means in the manner and form
8required by the Department. For purposes of this Section,
9"aviation fuel" means jet fuel and aviation gasoline.
10    If a taxpayer fails to sign a return within 30 days after
11the proper notice and demand for signature by the Department,
12the return shall be considered valid and any amount shown to be
13due on the return shall be deemed assessed.
14    Notwithstanding any other provision of this Act to the
15contrary, retailers subject to tax on cannabis shall file all
16cannabis tax returns and shall make all cannabis tax payments
17by electronic means in the manner and form required by the
18Department.
19    Beginning October 1, 1993, a taxpayer who has an average
20monthly tax liability of $150,000 or more shall make all
21payments required by rules of the Department by electronic
22funds transfer. Beginning October 1, 1994, a taxpayer who has
23an average monthly tax liability of $100,000 or more shall
24make all payments required by rules of the Department by
25electronic funds transfer. Beginning October 1, 1995, a
26taxpayer who has an average monthly tax liability of $50,000

 

 

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1or more shall make all payments required by rules of the
2Department by electronic funds transfer. Beginning October 1,
32000, a taxpayer who has an annual tax liability of $200,000 or
4more shall make all payments required by rules of the
5Department by electronic funds transfer. The term "annual tax
6liability" shall be the sum of the taxpayer's liabilities
7under this Act, and under all other State and local occupation
8and use tax laws administered by the Department, for the
9immediately preceding calendar year. The term "average monthly
10tax liability" means the sum of the taxpayer's liabilities
11under this Act, and under all other State and local occupation
12and use tax laws administered by the Department, for the
13immediately preceding calendar year divided by 12. Beginning
14on October 1, 2002, a taxpayer who has a tax liability in the
15amount set forth in subsection (b) of Section 2505-210 of the
16Department of Revenue Law shall make all payments required by
17rules of the Department by electronic funds transfer.
18    Before August 1 of each year beginning in 1993, the
19Department shall notify all taxpayers required to make
20payments by electronic funds transfer. All taxpayers required
21to make payments by electronic funds transfer shall make those
22payments for a minimum of one year beginning on October 1.
23    Any taxpayer not required to make payments by electronic
24funds transfer may make payments by electronic funds transfer
25with the permission of the Department.
26    All taxpayers required to make payment by electronic funds

 

 

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1transfer and any taxpayers authorized to voluntarily make
2payments by electronic funds transfer shall make those
3payments in the manner authorized by the Department.
4    The Department shall adopt such rules as are necessary to
5effectuate a program of electronic funds transfer and the
6requirements of this Section.
7    Before October 1, 2000, if the taxpayer's average monthly
8tax liability to the Department under this Act, the Retailers'
9Occupation Tax Act, the Service Occupation Tax Act, the
10Service Use Tax Act was $10,000 or more during the preceding 4
11complete calendar quarters, he shall file a return with the
12Department each month by the 20th day of the month next
13following the month during which such tax liability is
14incurred and shall make payments to the Department on or
15before the 7th, 15th, 22nd and last day of the month during
16which such liability is incurred. On and after October 1,
172000, if the taxpayer's average monthly tax liability to the
18Department under this Act, the Retailers' Occupation Tax Act,
19the Service Occupation Tax Act, and the Service Use Tax Act was
20$20,000 or more during the preceding 4 complete calendar
21quarters, he shall file a return with the Department each
22month by the 20th day of the month next following the month
23during which such tax liability is incurred and shall make
24payment to the Department on or before the 7th, 15th, 22nd and
25last day of the month during which such liability is incurred.
26If the month during which such tax liability is incurred began

 

 

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1prior to January 1, 1985, each payment shall be in an amount
2equal to 1/4 of the taxpayer's actual liability for the month
3or an amount set by the Department not to exceed 1/4 of the
4average monthly liability of the taxpayer to the Department
5for the preceding 4 complete calendar quarters (excluding the
6month of highest liability and the month of lowest liability
7in such 4 quarter period). If the month during which such tax
8liability is incurred begins on or after January 1, 1985, and
9prior to January 1, 1987, each payment shall be in an amount
10equal to 22.5% of the taxpayer's actual liability for the
11month or 27.5% of the taxpayer's liability for the same
12calendar month of the preceding year. If the month during
13which such tax liability is incurred begins on or after
14January 1, 1987, and prior to January 1, 1988, each payment
15shall be in an amount equal to 22.5% of the taxpayer's actual
16liability for the month or 26.25% of the taxpayer's liability
17for the same calendar month of the preceding year. If the month
18during which such tax liability is incurred begins on or after
19January 1, 1988, and prior to January 1, 1989, or begins on or
20after January 1, 1996, each payment shall be in an amount equal
21to 22.5% of the taxpayer's actual liability for the month or
2225% of the taxpayer's liability for the same calendar month of
23the preceding year. If the month during which such tax
24liability is incurred begins on or after January 1, 1989, and
25prior to January 1, 1996, each payment shall be in an amount
26equal to 22.5% of the taxpayer's actual liability for the

 

 

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1month or 25% of the taxpayer's liability for the same calendar
2month of the preceding year or 100% of the taxpayer's actual
3liability for the quarter monthly reporting period. The amount
4of such quarter monthly payments shall be credited against the
5final tax liability of the taxpayer's return for that month.
6Before October 1, 2000, once applicable, the requirement of
7the making of quarter monthly payments to the Department shall
8continue until such taxpayer's average monthly liability to
9the Department during the preceding 4 complete calendar
10quarters (excluding the month of highest liability and the
11month of lowest liability) is less than $9,000, or until such
12taxpayer's average monthly liability to the Department as
13computed for each calendar quarter of the 4 preceding complete
14calendar quarter period is less than $10,000. However, if a
15taxpayer can show the Department that a substantial change in
16the taxpayer's business has occurred which causes the taxpayer
17to anticipate that his average monthly tax liability for the
18reasonably foreseeable future will fall below the $10,000
19threshold stated above, then such taxpayer may petition the
20Department for change in such taxpayer's reporting status. On
21and after October 1, 2000, once applicable, the requirement of
22the making of quarter monthly payments to the Department 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 $19,000 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 $20,000. 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 $20,000
8threshold stated above, then such taxpayer may petition the
9Department for a change in such taxpayer's reporting status.
10The Department shall change such taxpayer's reporting status
11unless it finds that such change is seasonal in nature and not
12likely to be long term. Quarter monthly payment status shall
13be determined under this paragraph as if the rate reduction to
141.25% in Public Act 102-700 this amendatory Act of the 102nd
15General Assembly on sales tax holiday items had not occurred.
16Quarter monthly payment status shall be determined under this
17paragraph as if the rate reduction to 1.25% in this amendatory
18Act of the 103rd General Assembly on sales tax holiday items
19had not occurred. For quarter monthly payments due on or after
20July 1, 2023 and through June 30, 2024, "25% of the taxpayer's
21liability for the same calendar month of the preceding year"
22shall be determined as if the rate reduction to 1.25% in Public
23Act 102-700 this amendatory Act of the 102nd General Assembly
24on sales tax holiday items had not occurred. For quarter
25monthly payments due on or after July 1, 2024 and through June
2630, 2025, "25% of the taxpayer's liability for the same

 

 

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1calendar month of the preceding year" shall be determined as
2if the rate reduction to 1.25% in this amendatory Act of the
3103rd General Assembly on sales tax holiday items had not
4occurred. Quarter monthly payment status shall be determined
5under this paragraph as if the rate reduction to 0% in Public
6Act 102-700 this amendatory Act of the 102nd General Assembly
7on food for human consumption that is to be consumed off the
8premises where it is sold (other than alcoholic beverages,
9food consisting of or infused with adult use cannabis, soft
10drinks, and food that has been prepared for immediate
11consumption) had not occurred. For quarter monthly payments
12due under this paragraph on or after July 1, 2023 and through
13June 30, 2024, "25% of the taxpayer's liability for the same
14calendar month of the preceding year" shall be determined as
15if the rate reduction to 0% in Public Act 102-700 this
16amendatory Act of the 102nd General Assembly had not occurred.
17If any such quarter monthly payment is not paid at the time or
18in the amount required by this Section, then the taxpayer
19shall be liable for penalties and interest on the difference
20between the minimum amount due and the amount of such quarter
21monthly payment actually and timely paid, except insofar as
22the taxpayer has previously made payments for that month to
23the Department in excess of the minimum payments previously
24due as provided in this Section. The Department shall make
25reasonable rules and regulations to govern the quarter monthly
26payment amount and quarter monthly payment dates for taxpayers

 

 

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1who file on other than a calendar monthly basis.
2    If any such payment provided for in this Section exceeds
3the taxpayer's liabilities under this Act, the Retailers'
4Occupation Tax Act, the Service Occupation Tax Act and the
5Service Use Tax Act, as shown by an original monthly return,
6the Department shall issue to the taxpayer a credit memorandum
7no later than 30 days after the date of payment, which
8memorandum may be submitted by the taxpayer to the Department
9in payment of tax liability subsequently to be remitted by the
10taxpayer to the Department or be assigned by the taxpayer to a
11similar taxpayer under this Act, the Retailers' Occupation Tax
12Act, the Service Occupation Tax Act or the Service Use Tax Act,
13in accordance with reasonable rules and regulations to be
14prescribed by the Department, except that if such excess
15payment is shown on an original monthly return and is made
16after December 31, 1986, no credit memorandum shall be issued,
17unless requested by the taxpayer. If no such request is made,
18the taxpayer may credit such excess payment against tax
19liability subsequently to be remitted by the taxpayer to the
20Department under this Act, the Retailers' Occupation Tax Act,
21the Service Occupation Tax Act or the Service Use Tax Act, in
22accordance with reasonable rules and regulations prescribed by
23the Department. If the Department subsequently determines that
24all or any part of the credit taken was not actually due to the
25taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
26be reduced by 2.1% or 1.75% of the difference between the

 

 

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

 

 

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1such retailer shall file a final return under this Act with the
2Department not more than one month after discontinuing such
3business.
4    In addition, with respect to motor vehicles, watercraft,
5aircraft, and trailers that are required to be registered with
6an agency of this State, except as otherwise provided in this
7Section, every retailer selling this kind of tangible personal
8property shall file, with the Department, upon a form to be
9prescribed and supplied by the Department, a separate return
10for each such item of tangible personal property which the
11retailer sells, except that if, in the same transaction, (i) a
12retailer of aircraft, watercraft, motor vehicles or trailers
13transfers more than one aircraft, watercraft, motor vehicle or
14trailer to another aircraft, watercraft, motor vehicle or
15trailer retailer for the purpose of resale or (ii) a retailer
16of aircraft, watercraft, motor vehicles, or trailers transfers
17more than one aircraft, watercraft, motor vehicle, or trailer
18to a purchaser for use as a qualifying rolling stock as
19provided in Section 3-55 of this Act, then that seller may
20report the transfer of all the aircraft, watercraft, motor
21vehicles or trailers involved in that transaction to the
22Department on the same uniform invoice-transaction reporting
23return form. For purposes of this Section, "watercraft" means
24a Class 2, Class 3, or Class 4 watercraft as defined in Section
253-2 of the Boat Registration and Safety Act, a personal
26watercraft, or any boat equipped with an inboard motor.

 

 

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

 

 

HB4114- 41 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 42 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 43 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 44 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 45 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 46 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 47 -LRB103 33313 HLH 63123 b

1month from the 1.25% rate on the selling price of sales tax
2holiday items into the State and Local Sales Tax Reform Fund.
3    Beginning January 1, 1990, each month the Department shall
4pay into the Local Government Tax Fund 16% of the net revenue
5realized for the preceding month from the 6.25% general rate
6on the selling price of tangible personal property which is
7purchased outside Illinois at retail from a retailer and which
8is titled or registered by an agency of this State's
9government.
10    Beginning October 1, 2009, each month the Department shall
11pay into the Capital Projects Fund an amount that is equal to
12an amount estimated by the Department to represent 80% of the
13net revenue realized for the preceding month from the sale of
14candy, grooming and hygiene products, and soft drinks that had
15been taxed at a rate of 1% prior to September 1, 2009 but that
16are now taxed at 6.25%.
17    Beginning July 1, 2011, each month the Department shall
18pay into the Clean Air Act Permit Fund 80% of the net revenue
19realized for the preceding month from the 6.25% general rate
20on the selling price of sorbents used in Illinois in the
21process of sorbent injection as used to comply with the
22Environmental Protection Act or the federal Clean Air Act, but
23the total payment into the Clean Air Act Permit Fund under this
24Act and the Retailers' Occupation Tax Act shall not exceed
25$2,000,000 in any fiscal year.
26    Beginning July 1, 2013, each month the Department shall

 

 

HB4114- 48 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 49 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 50 -LRB103 33313 HLH 63123 b

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)

 

 

HB4114- 51 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 52 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 53 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 54 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 55 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 56 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 57 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 58 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 59 -LRB103 33313 HLH 63123 b

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.

 

 

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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 15. The Retailers' Occupation Tax Act is amended
6by changing Sections 2-8, 2-10 and 3 as follows:
 
7    (35 ILCS 120/2-8)
8    Sec. 2-8. Sales tax holiday items.
9    (a) Any tangible personal property described in this
10subsection is a sales tax holiday item and qualifies for the
111.25% reduced rate of tax for the sales tax holiday period
12period set forth in Section 2-10 of this Act (hereinafter
13referred to as the Sales Tax Holiday Period). The reduced rate
14on these items shall be administered under the provisions of
15subsection (b) of this Section. The following items are
16subject to the reduced rate:
17        (1) Clothing items that each have a retail selling
18    price of less than $125.
19        "Clothing" means, unless otherwise specified in this
20    Section, all human wearing apparel suitable for general
21    use. "Clothing" does not include clothing accessories,
22    protective equipment, or sport or recreational equipment.
23    "Clothing" includes, but is not limited to: household and
24    shop aprons; athletic supporters; bathing suits and caps;

 

 

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1    belts and suspenders; boots; coats and jackets; ear muffs;
2    footlets; gloves and mittens for general use; hats and
3    caps; hosiery; insoles for shoes; lab coats; neckties;
4    overshoes; pantyhose; rainwear; rubber pants; sandals;
5    scarves; shoes and shoelaces; slippers; sneakers; socks
6    and stockings; steel-toed shoes; underwear; and school
7    uniforms.
8        "Clothing accessories" means, but is not limited to:
9    briefcases; cosmetics; hair notions, including, but not
10    limited to barrettes, hair bows, and hair nets; handbags;
11    handkerchiefs; jewelry; non-prescription sunglasses;
12    umbrellas; wallets; watches; and wigs and hair pieces.
13        "Protective equipment" means, but is not limited to:
14    breathing masks; clean room apparel and equipment; ear and
15    hearing protectors; face shields; hard hats; helmets;
16    paint or dust respirators; protective gloves; safety
17    glasses and goggles; safety belts; tool belts; and
18    welder's gloves and masks.
19        "Sport or recreational equipment" means, but is not
20    limited to: ballet and tap shoes; cleated or spiked
21    athletic shoes; gloves, including, but not limited to,
22    baseball, bowling, boxing, hockey, and golf gloves;
23    goggles; hand and elbow guards; life preservers and vests;
24    mouth guards; roller and ice skates; shin guards; shoulder
25    pads; ski boots; waders; and wetsuits and fins.
26        (2) School supplies. "School supplies" means, unless

 

 

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1    otherwise specified in this Section, items used by a
2    student in a course of study. The purchase of school
3    supplies for use by persons other than students for use in
4    a course of study are not eligible for the reduced rate of
5    tax. "School supplies" do not include school art supplies;
6    school instructional materials; cameras; film and memory
7    cards; videocameras, tapes, and videotapes; computers;
8    cell phones; Personal Digital Assistants (PDAs); handheld
9    electronic schedulers; and school computer supplies.
10        "School supplies" includes, but is not limited to:
11    binders; book bags; calculators; cellophane tape;
12    blackboard chalk; compasses; composition books; crayons;
13    erasers; expandable, pocket, plastic, and manila folders;
14    glue, paste, and paste sticks; highlighters; index cards;
15    index card boxes; legal pads; lunch boxes; markers;
16    notebooks; paper, including loose leaf ruled notebook
17    paper, copy paper, graph paper, tracing paper, manila
18    paper, colored paper, poster board, and construction
19    paper; pencils; pencil leads; pens; ink and ink refills
20    for pens; pencil boxes and other school supply boxes;
21    pencil sharpeners; protractors; rulers; scissors; and
22    writing tablets.
23        "School art supply" means an item commonly used by a
24    student in a course of study for artwork and includes only
25    the following items: clay and glazes; acrylic, tempera,
26    and oil paint; paintbrushes for artwork; sketch and

 

 

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1    drawing pads; and watercolors.
2        "School instructional material" means written material
3    commonly used by a student in a course of study as a
4    reference and to learn the subject being taught and
5    includes only the following items: reference books;
6    reference maps and globes; textbooks; and workbooks.
7        "School computer supply" means an item commonly used
8    by a student in a course of study in which a computer is
9    used and applies only to the following items: flashdrives
10    and other computer data storage devices; data storage
11    media, such as diskettes and compact disks; boxes and
12    cases for disk storage; external ports or drives; computer
13    cases; computer cables; computer printers; and printer
14    cartridges, toner, and ink.
15    (b) Administration. Notwithstanding any other provision of
16this Act, the reduced rate of tax under Section 3-10 of this
17Act for clothing and school supplies shall be administered by
18the Department under the provisions of this subsection (b).
19        (1) Bundled sales. Items that qualify for the reduced
20    rate of tax that are bundled together with items that do
21    not qualify for the reduced rate of tax and that are sold
22    for one itemized price will be subject to the reduced rate
23    of tax only if the value of the items that qualify for the
24    reduced rate of tax exceeds the value of the items that do
25    not qualify for the reduced rate of tax.
26        (2) Coupons and discounts. An unreimbursed discount by

 

 

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1    the seller reduces the sales price of the property so that
2    the discounted sales price determines whether the sales
3    price is within a sales tax holiday price threshold. A
4    coupon or other reduction in the sales price is treated as
5    a discount if the seller is not reimbursed for the coupon
6    or reduction amount by a third party.
7        (3) Splitting of items normally sold together.
8    Articles that are normally sold as a single unit must
9    continue to be sold in that manner. Such articles cannot
10    be priced separately and sold as individual items in order
11    to obtain the reduced rate of tax. For example, a pair of
12    shoes cannot have each shoe sold separately so that the
13    sales price of each shoe is within a sales tax holiday
14    price threshold.
15        (4) Rain checks. A rain check is a procedure that
16    allows a customer to purchase an item at a certain price at
17    a later time because the particular item was out of stock.
18    Eligible property that customers purchase during the sales
19    tax holiday period Sales Tax Holiday Period with the use
20    of a rain check will qualify for the reduced rate of tax
21    regardless of when the rain check was issued. Issuance of
22    a rain check during the sales tax holiday period Sales Tax
23    Holiday Period will not qualify eligible property for the
24    reduced rate of tax if the property is actually purchased
25    after the sales tax holiday period Sales Tax Holiday
26    Period.

 

 

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1        (5) Exchanges. The procedure for an exchange in
2    regards to a sales tax holiday is as follows:
3            (A) If a customer purchases an item of eligible
4        property during the sales tax holiday period Sales Tax
5        Holiday Period, but later exchanges the item for a
6        similar eligible item, even if a different size,
7        different color, or other feature, no additional tax
8        is due even if the exchange is made after the sales tax
9        holiday period Sales Tax Holiday Period.
10            (B) If a customer purchases an item of eligible
11        property during the sales tax holiday period Sales Tax
12        Holiday Period, but after the sales tax holiday period
13        Sales Tax Holiday Period has ended, the customer
14        returns the item and receives credit on the purchase
15        of a different item, the 6.25% general merchandise
16        sales tax rate is due on the sale of the newly
17        purchased item.
18            (C) If a customer purchases an item of eligible
19        property before the sales tax holiday period Sales Tax
20        Holiday Period, but during the sales tax holiday
21        period Sales Tax Holiday Period the customer returns
22        the item and receives credit on the purchase of a
23        different item of eligible property, the reduced rate
24        of tax is due on the sale of the new item if the new
25        item is purchased during the sales tax holiday period
26        Sales Tax Holiday Period.

 

 

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1        (6) (Blank).
2        (7) Order date and back orders. For the purpose of a
3    sales tax holiday, eligible property qualifies for the
4    reduced rate of tax if: (i) the item is both delivered to
5    and paid for by the customer during the sales tax holiday
6    period Sales Tax Holiday Period or (ii) the customer
7    orders and pays for the item and the seller accepts the
8    order during the sales tax holiday period Sales Tax
9    Holiday Period for immediate shipment, even if delivery is
10    made after the sales tax holiday period Sales Tax Holiday
11    Period. The seller accepts an order when the seller has
12    taken action to fill the order for immediate shipment.
13    Actions to fill an order include placement of an "in date"
14    stamp on an order or assignment of an "order number" to an
15    order within the sales tax holiday period Sales Tax
16    Holiday Period. An order is for immediate shipment when
17    the customer does not request delayed shipment. An order
18    is for immediate shipment notwithstanding that the
19    shipment may be delayed because of a backlog of orders or
20    because stock is currently unavailable to, or on back
21    order by, the seller.
22        (8) Returns. For a 60-day period immediately after the
23    sales tax holiday period Sales Tax Holiday Period, if a
24    customer returns an item that would qualify for the
25    reduced rate of tax, credit for or refund of sales tax
26    shall be given only at the reduced rate unless the

 

 

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1    customer provides a receipt or invoice that shows tax was
2    paid at the 6.25% general merchandise rate, or the seller
3    has sufficient documentation to show that tax was paid at
4    the 6.25% general merchandise rate on the specific item.
5    This 60-day period is set solely for the purpose of
6    designating a time period during which the customer must
7    provide documentation that shows that the appropriate
8    sales tax rate was paid on returned merchandise. The
9    60-day period is not intended to change a seller's policy
10    on the time period during which the seller will accept
11    returns.
12    (b-5) As used in this Section, "sales tax holiday period"
13means:
14        (1) from August 6, 2010 through August 15, 2010;
15        (2) from August 5, 2022 through August 14, 2022; and
16        (3) from August 2, 2024 through August 11, 2024.
17    (c) The Department may implement the provisions of this
18Section through the use of emergency rules, along with
19permanent rules filed concurrently with such emergency rules,
20in accordance with the provisions of Section 5-45 of the
21Illinois Administrative Procedure Act. For purposes of the
22Illinois Administrative Procedure Act, the adoption of rules
23to implement the provisions of this Section shall be deemed an
24emergency and necessary for the public interest, safety, and
25welfare.
26(Source: P.A. 102-700, eff. 4-19-22.)
 

 

 

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1    (35 ILCS 120/2-10)
2    Sec. 2-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4gross receipts from sales of tangible personal property made
5in the course of business.
6    Beginning on July 1, 2000 and through December 31, 2000,
7with respect to motor fuel, as defined in Section 1.1 of the
8Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
9the Use Tax Act, the tax is imposed at the rate of 1.25%.
10    During the sales tax holiday period, as defined in Section
112-8 Beginning on August 6, 2010 through August 15, 2010, and
12beginning again on August 5, 2022 through August 14, 2022,
13with respect to sales tax holiday items described as defined
14in Section 2-8 of this Act, the tax is imposed at the rate of
151.25%.
16    Within 14 days after July 1, 2000 (the effective date of
17Public Act 91-872) this amendatory Act of the 91st General
18Assembly, each retailer of motor fuel and gasohol shall cause
19the following notice to be posted in a prominently visible
20place on each retail dispensing device that is used to
21dispense motor fuel or gasohol in the State of Illinois: "As of
22July 1, 2000, the State of Illinois has eliminated the State's
23share of sales tax on motor fuel and gasohol through December
2431, 2000. The price on this pump should reflect the
25elimination of the tax." The notice shall be printed in bold

 

 

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1print on a sign that is no smaller than 4 inches by 8 inches.
2The sign shall be clearly visible to customers. Any retailer
3who fails to post or maintain a required sign through December
431, 2000 is guilty of a petty offense for which the fine shall
5be $500 per day per each retail premises where a violation
6occurs.
7    With respect to gasohol, as defined in the Use Tax Act, the
8tax imposed by this Act applies to (i) 70% of the proceeds of
9sales made on or after January 1, 1990, and before July 1,
102003, (ii) 80% of the proceeds of sales made on or after July
111, 2003 and on or before July 1, 2017, and (iii) 100% of the
12proceeds of sales made thereafter. If, at any time, however,
13the tax under this Act on sales of gasohol, as defined in the
14Use Tax Act, is imposed at the rate of 1.25%, then the tax
15imposed by this Act applies to 100% of the proceeds of sales of
16gasohol made during that time.
17    With respect to majority blended ethanol fuel, as defined
18in the Use Tax Act, the tax imposed by this Act does not apply
19to the proceeds of sales made on or after July 1, 2003 and on
20or before December 31, 2023 but applies to 100% of the proceeds
21of sales made thereafter.
22    With respect to biodiesel blends, as defined in the Use
23Tax Act, with no less than 1% and no more than 10% biodiesel,
24the tax imposed by this Act applies to (i) 80% of the proceeds
25of sales made on or after July 1, 2003 and on or before
26December 31, 2018 and (ii) 100% of the proceeds of sales made

 

 

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1after December 31, 2018 and before January 1, 2024. On and
2after January 1, 2024 and on or before December 31, 2030, the
3taxation of biodiesel, renewable diesel, and biodiesel blends
4shall be as provided in Section 3-5.1 of the Use Tax Act. If,
5at any time, however, the tax under this Act on sales of
6biodiesel blends, as defined in the Use Tax Act, with no less
7than 1% and no more than 10% biodiesel is imposed at the rate
8of 1.25%, then the tax imposed by this Act applies to 100% of
9the proceeds of sales of biodiesel blends with no less than 1%
10and no more than 10% biodiesel made during that time.
11    With respect to biodiesel, as defined in the Use Tax Act,
12and biodiesel blends, as defined in the Use Tax Act, with more
13than 10% but no more than 99% biodiesel, the tax imposed by
14this Act does not apply to the proceeds of sales made on or
15after July 1, 2003 and on or before December 31, 2023. On and
16after January 1, 2024 and on or before December 31, 2030, the
17taxation of biodiesel, renewable diesel, and biodiesel blends
18shall be as provided in Section 3-5.1 of the Use Tax Act.
19    Until July 1, 2022 and beginning again on July 1, 2023,
20with respect to food for human consumption that is to be
21consumed off the premises where it is sold (other than
22alcoholic beverages, food consisting of or infused with adult
23use cannabis, soft drinks, and food that has been prepared for
24immediate consumption), the tax is imposed at the rate of 1%.
25Beginning July 1, 2022 and until July 1, 2023, with respect to
26food for human consumption that is to be consumed off the

 

 

HB4114- 72 -LRB103 33313 HLH 63123 b

1premises 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), the tax is imposed at the rate of 0%.
5    With respect to prescription and nonprescription
6medicines, drugs, medical appliances, products classified as
7Class III medical devices by the United States Food and Drug
8Administration that are used for cancer treatment pursuant to
9a prescription, as well as any accessories and components
10related to those devices, modifications to a motor vehicle for
11the purpose of rendering it usable by a person with a
12disability, and insulin, blood sugar testing materials,
13syringes, and needles used by human diabetics, the tax is
14imposed at the rate of 1%. For the purposes of this Section,
15until September 1, 2009: the term "soft drinks" means any
16complete, finished, ready-to-use, non-alcoholic drink, whether
17carbonated or not, including, but not limited to, soda water,
18cola, fruit juice, vegetable juice, carbonated water, and all
19other preparations commonly known as soft drinks of whatever
20kind or description that are contained in any closed or sealed
21bottle, can, carton, or container, regardless of size; but
22"soft drinks" does not include coffee, tea, non-carbonated
23water, infant formula, milk or milk products as defined in the
24Grade A Pasteurized Milk and Milk Products Act, or drinks
25containing 50% or more natural 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) this amendatory Act of the 98th General Assembly,
20"prescription and nonprescription medicines and drugs"
21includes medical cannabis purchased from a registered
22dispensing organization under the Compassionate Use of Medical
23Cannabis Program Act.
24    As used in this Section, "adult use cannabis" means
25cannabis subject to tax under the Cannabis Cultivation
26Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

 

 

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1and does not include cannabis subject to tax under the
2Compassionate Use of Medical Cannabis Program Act.
3(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
4102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
54-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
6102-700, Article 65, Section 65-10, eff. 4-19-22; revised
76-1-22.)
 
8    (35 ILCS 120/3)  (from Ch. 120, par. 442)
9    Sec. 3. Except as provided in this Section, on or before
10the twentieth day of each calendar month, every person engaged
11in the business of selling tangible personal property at
12retail in this State during the preceding calendar month shall
13file a return with the Department, stating:
14        1. The name of the seller;
15        2. His residence address and the address of his
16    principal place of business and the address of the
17    principal place of business (if that is a different
18    address) from which he engages in the business of selling
19    tangible personal property at retail in this State;
20        3. Total amount of receipts received by him during the
21    preceding calendar month or quarter, as the case may be,
22    from sales of tangible personal property, and from
23    services furnished, by him during such preceding calendar
24    month or quarter;
25        4. Total amount received by him during the preceding

 

 

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

 

 

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

 

 

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1    Prior to October 1, 2003, and on and after September 1,
22004 a retailer may accept a Manufacturer's Purchase Credit
3certification from a purchaser in satisfaction of Use Tax as
4provided in Section 3-85 of the Use Tax Act if the purchaser
5provides the appropriate documentation as required by Section
63-85 of the Use Tax Act. A Manufacturer's Purchase Credit
7certification, accepted by a retailer prior to October 1, 2003
8and on and after September 1, 2004 as provided in Section 3-85
9of the Use Tax Act, may be used by that retailer to satisfy
10Retailers' Occupation Tax liability in the amount claimed in
11the certification, not to exceed 6.25% of the receipts subject
12to tax from a qualifying purchase. A Manufacturer's Purchase
13Credit reported on any original or amended return filed under
14this Act after October 20, 2003 for reporting periods prior to
15September 1, 2004 shall be disallowed. Manufacturer's Purchase
16Credit reported on annual returns due on or after January 1,
172005 will be disallowed for periods prior to September 1,
182004. No Manufacturer's Purchase Credit may be used after
19September 30, 2003 through August 31, 2004 to satisfy any tax
20liability imposed under this Act, including any audit
21liability.
22    The Department may require returns to be filed on a
23quarterly basis. If so required, a return for each calendar
24quarter shall be filed on or before the twentieth day of the
25calendar month following the end of such calendar quarter. The
26taxpayer shall also file a return with the Department for each

 

 

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

 

 

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

 

 

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

 

 

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1Department.
2    Beginning October 1, 1993, a taxpayer who has an average
3monthly tax liability of $150,000 or more shall make all
4payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 1994, a taxpayer who has
6an average monthly tax liability of $100,000 or more shall
7make all payments required by rules of the Department by
8electronic funds transfer. Beginning October 1, 1995, a
9taxpayer who has an average monthly tax liability of $50,000
10or more shall make all payments required by rules of the
11Department by electronic funds transfer. Beginning October 1,
122000, a taxpayer who has an annual tax liability of $200,000 or
13more shall make all payments required by rules of the
14Department by electronic funds transfer. The term "annual tax
15liability" shall be the sum of the taxpayer's liabilities
16under this Act, and under all other State and local occupation
17and use tax laws administered by the Department, for the
18immediately preceding calendar year. The term "average monthly
19tax liability" shall be the sum of the taxpayer's liabilities
20under this Act, and under all other State and local occupation
21and use tax laws administered by the Department, for the
22immediately preceding calendar year divided by 12. Beginning
23on October 1, 2002, a taxpayer who has a tax liability in the
24amount set forth in subsection (b) of Section 2505-210 of the
25Department of Revenue Law shall make all payments required by
26rules of the Department by electronic funds transfer.

 

 

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1    Before August 1 of each year beginning in 1993, the
2Department shall notify all taxpayers required to make
3payments by electronic funds transfer. All taxpayers required
4to make payments by electronic funds transfer shall make those
5payments for a minimum of one year beginning on October 1.
6    Any taxpayer not required to make payments by electronic
7funds transfer may make payments by electronic funds transfer
8with the permission of the Department.
9    All taxpayers required to make payment by electronic funds
10transfer and any taxpayers authorized to voluntarily make
11payments by electronic funds transfer shall make those
12payments in the manner authorized by the Department.
13    The Department shall adopt such rules as are necessary to
14effectuate a program of electronic funds transfer and the
15requirements of this Section.
16    Any amount which is required to be shown or reported on any
17return or other document under this Act shall, if such amount
18is not a whole-dollar amount, be increased to the nearest
19whole-dollar amount in any case where the fractional part of a
20dollar is 50 cents or more, and decreased to the nearest
21whole-dollar amount where the fractional part of a dollar is
22less than 50 cents.
23    If the retailer is otherwise required to file a monthly
24return and if the retailer's average monthly tax liability to
25the Department does not exceed $200, the Department may
26authorize his returns to be filed on a quarter annual basis,

 

 

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

 

 

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1due as a single return covering all such registered
2businesses, but shall file separate returns for each such
3registered business.
4    In addition, with respect to motor vehicles, watercraft,
5aircraft, and trailers that are required to be registered with
6an agency of this State, except as otherwise provided in this
7Section, every retailer selling this kind of tangible personal
8property shall file, with the Department, upon a form to be
9prescribed and supplied by the Department, a separate return
10for each such item of tangible personal property which the
11retailer sells, except that if, in the same transaction, (i) a
12retailer of aircraft, watercraft, motor vehicles or trailers
13transfers more than one aircraft, watercraft, motor vehicle or
14trailer to another aircraft, watercraft, motor vehicle
15retailer or trailer retailer for the purpose of resale or (ii)
16a retailer of aircraft, watercraft, motor vehicles, or
17trailers transfers more than one aircraft, watercraft, motor
18vehicle, or trailer to a purchaser for use as a qualifying
19rolling stock as provided in Section 2-5 of this Act, then that
20seller may report the transfer of all aircraft, watercraft,
21motor vehicles or trailers involved in that transaction to the
22Department on the same uniform invoice-transaction reporting
23return form. For purposes of this Section, "watercraft" means
24a Class 2, Class 3, or Class 4 watercraft as defined in Section
253-2 of the Boat Registration and Safety Act, a personal
26watercraft, or any boat equipped with an inboard motor.

 

 

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

 

 

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

 

 

HB4114- 88 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 89 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 90 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 91 -LRB103 33313 HLH 63123 b

1the return under this Section shall, at the time of filing such
2return, pay to the Department the amount of tax imposed by this
3Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
4on and after January 1, 1990, or $5 per calendar year,
5whichever is greater, which is allowed to reimburse the
6retailer for the expenses incurred in keeping records,
7preparing and filing returns, remitting the tax and supplying
8data to the Department on request. On and after January 1,
92021, a certified service provider, as defined in the Leveling
10the Playing Field for Illinois Retail Act, filing the return
11under this Section on behalf of a remote retailer shall, at the
12time of such return, pay to the Department the amount of tax
13imposed by this Act less a discount of 1.75%. A remote retailer
14using a certified service provider to file a return on its
15behalf, as provided in the Leveling the Playing Field for
16Illinois Retail Act, is not eligible for the discount. When
17determining the discount allowed under this Section, retailers
18shall include the amount of tax that would have been due at the
191% rate but for the 0% rate imposed under Public Act 102-700
20this amendatory Act of the 102nd General Assembly. When
21determining the discount allowed under this Section, retailers
22shall include the amount of tax that would have been due at the
236.25% rate but for the 1.25% rate imposed on sales tax holiday
24items under Public Act 102-700 or this amendatory Act of the
25103rd General Assembly this amendatory Act of the 102nd
26General Assembly. The discount under this Section is not

 

 

HB4114- 92 -LRB103 33313 HLH 63123 b

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. Any prepayment made pursuant to
4Section 2d of this Act shall be included in the amount on which
5such 2.1% or 1.75% discount is computed. In the case of
6retailers who report and pay the tax on a transaction by
7transaction basis, as provided in this Section, such discount
8shall be taken with each such tax remittance instead of when
9such retailer files his periodic return. The discount allowed
10under this Section is allowed only for returns that are filed
11in the manner required by this Act. The Department may
12disallow the discount for retailers whose certificate of
13registration is revoked at the time the return is filed, but
14only if the Department's decision to revoke the certificate of
15registration has become final.
16    Before October 1, 2000, if the taxpayer's average monthly
17tax liability to the Department under this Act, the Use Tax
18Act, the Service Occupation Tax Act, and the Service Use Tax
19Act, excluding any liability for prepaid sales tax to be
20remitted in accordance with Section 2d of this Act, was
21$10,000 or more during the preceding 4 complete calendar
22quarters, he shall file a return with the Department each
23month by the 20th day of the month next following the month
24during which such tax liability is incurred and shall make
25payments to the Department on or before the 7th, 15th, 22nd and
26last day of the month during which such liability is incurred.

 

 

HB4114- 93 -LRB103 33313 HLH 63123 b

1On and after October 1, 2000, if the taxpayer's average
2monthly tax liability to the Department under this Act, the
3Use Tax Act, the Service Occupation Tax Act, and the Service
4Use Tax Act, excluding any liability for prepaid sales tax to
5be remitted in accordance with Section 2d of this 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

 

 

HB4114- 94 -LRB103 33313 HLH 63123 b

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 by
20taxpayers having an average monthly tax liability of $10,000
21or more as determined in the manner provided above shall
22continue until such taxpayer's average monthly liability to
23the Department during the preceding 4 complete calendar
24quarters (excluding the month of highest liability and the
25month of lowest liability) is less than $9,000, or until such
26taxpayer's average monthly liability to the Department as

 

 

HB4114- 95 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 96 -LRB103 33313 HLH 63123 b

1unless it finds that such change is seasonal in nature and not
2likely to be long term. Quarter monthly payment status shall
3be determined under this paragraph as if the rate reduction to
40% in Public Act 102-700 this amendatory Act of the 102nd
5General Assembly on 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) had not occurred. For quarter monthly
10payments due under this paragraph on or after July 1, 2023 and
11through June 30, 2024, "25% of the taxpayer's liability for
12the same calendar month of the preceding year" shall be
13determined as if the rate reduction to 0% in Public Act 102-700
14this amendatory Act of the 102nd General Assembly had not
15occurred. Quarter monthly payment status shall be determined
16under this paragraph as if the rate reduction to 1.25% in
17Public Act 102-700 this amendatory Act of the 102nd General
18Assembly on sales tax holiday items had not occurred. Quarter
19monthly payment status shall be determined under this
20paragraph as if the rate reduction to 1.25% in this amendatory
21Act of the 103rd General Assembly on sales tax holiday items
22had not occurred. For quarter monthly payments due on or after
23July 1, 2023 and through June 30, 2024, "25% of the taxpayer's
24liability for the same calendar month of the preceding year"
25shall be determined as if the rate reduction to 1.25% in Public
26Act 102-700 this amendatory Act of the 102nd General Assembly

 

 

HB4114- 97 -LRB103 33313 HLH 63123 b

1on sales tax holiday items had not occurred. For quarter
2monthly payments due on or after July 1, 2024 and through June
330, 2025, "25% of the taxpayer's liability for the same
4calendar month of the preceding year" shall be determined as
5if the rate reduction to 1.25% in this amendatory Act of the
6103rd General Assembly on sales tax holiday items had not
7occurred. If any such quarter monthly payment is not paid at
8the time or in the amount required by this Section, then the
9taxpayer shall be liable for penalties and interest on the
10difference between the minimum amount due as a payment and the
11amount of such quarter monthly payment actually and timely
12paid, except insofar as the taxpayer has previously made
13payments for that month to the Department in excess of the
14minimum payments previously due as provided in this Section.
15The Department shall make reasonable rules and regulations to
16govern the quarter monthly payment amount and quarter monthly
17payment dates for taxpayers who file on other than a calendar
18monthly basis.
19    The provisions of this paragraph apply before October 1,
202001. Without regard to whether a taxpayer is required to make
21quarter monthly payments as specified above, any taxpayer who
22is required by Section 2d of this Act to collect and remit
23prepaid taxes and has collected prepaid taxes which average in
24excess of $25,000 per month during the preceding 2 complete
25calendar quarters, shall file a return with the Department as
26required by Section 2f and shall make payments to the

 

 

HB4114- 98 -LRB103 33313 HLH 63123 b

1Department on or before the 7th, 15th, 22nd and last day of the
2month during which such liability is incurred. If the month
3during which such tax liability is incurred began prior to
4September 1, 1985 (the effective date of Public Act 84-221),
5each payment shall be in an amount not less than 22.5% of the
6taxpayer's actual liability under Section 2d. If the month
7during which such tax liability is incurred begins on or after
8January 1, 1986, each payment shall be in an amount equal to
922.5% of the taxpayer's actual liability for the month or
1027.5% of the taxpayer's liability for the same calendar month
11of the preceding calendar year. If the month during which such
12tax liability is incurred begins on or after January 1, 1987,
13each payment shall be in an amount equal to 22.5% of the
14taxpayer's actual liability for the month or 26.25% of the
15taxpayer's liability for the same calendar month of the
16preceding year. The amount of such quarter monthly payments
17shall be credited against the final tax liability of the
18taxpayer's return for that month filed under this Section or
19Section 2f, as the case may be. Once applicable, the
20requirement of the making of quarter monthly payments to the
21Department pursuant to this paragraph shall continue until
22such taxpayer's average monthly prepaid tax collections during
23the preceding 2 complete calendar quarters is $25,000 or less.
24If any such quarter monthly payment is not paid at the time or
25in the amount required, the taxpayer shall be liable for
26penalties and interest on such difference, except insofar as

 

 

HB4114- 99 -LRB103 33313 HLH 63123 b

1the taxpayer has previously made payments for that month in
2excess of the minimum payments previously due.
3    The provisions of this paragraph apply on and after
4October 1, 2001. Without regard to whether a taxpayer is
5required to make quarter monthly payments as specified above,
6any taxpayer who is required by Section 2d of this Act to
7collect and remit prepaid taxes and has collected prepaid
8taxes that average in excess of $20,000 per month during the
9preceding 4 complete calendar quarters shall file a return
10with the Department as required by Section 2f and shall make
11payments to the Department on or before the 7th, 15th, 22nd and
12last day of the month during which the liability is incurred.
13Each payment shall be in an amount equal to 22.5% of the
14taxpayer's actual liability for the month or 25% of the
15taxpayer's liability for the same calendar month of the
16preceding year. The amount of the quarter monthly payments
17shall be credited against the final tax liability of the
18taxpayer's return for that month filed under this Section or
19Section 2f, as the case may be. Once applicable, the
20requirement of the making of quarter monthly payments to the
21Department pursuant to this paragraph shall continue until the
22taxpayer's average monthly prepaid tax collections during the
23preceding 4 complete calendar quarters (excluding the month of
24highest liability and the month of lowest liability) is less
25than $19,000 or until such taxpayer's average monthly
26liability to the Department as computed for each calendar

 

 

HB4114- 100 -LRB103 33313 HLH 63123 b

1quarter of the 4 preceding complete calendar quarters is less
2than $20,000. If any such quarter monthly payment is not paid
3at the time or in the amount required, the taxpayer shall be
4liable for penalties and interest on such difference, except
5insofar as the taxpayer has previously made payments for that
6month in excess of the minimum payments previously due.
7    If any payment provided for in this Section exceeds the
8taxpayer's liabilities under this Act, the Use Tax Act, the
9Service Occupation Tax Act and the Service Use Tax Act, as
10shown on an original monthly return, the Department shall, if
11requested by the taxpayer, issue to the taxpayer a credit
12memorandum no later than 30 days after the date of payment. The
13credit evidenced by such credit memorandum may be assigned by
14the taxpayer to a similar taxpayer under this Act, the Use Tax
15Act, the Service Occupation Tax Act or the Service Use Tax Act,
16in accordance with reasonable rules and regulations to be
17prescribed by the Department. If no such request is made, the
18taxpayer may credit such excess payment against tax liability
19subsequently to be remitted to the Department under this Act,
20the Use Tax Act, the Service Occupation Tax Act or the Service
21Use Tax Act, in accordance with reasonable rules and
22regulations prescribed by the Department. If the Department
23subsequently determined that all or any part of the credit
24taken was not actually due to the taxpayer, the taxpayer's
252.1% and 1.75% vendor's discount shall be reduced by 2.1% or
261.75% of the difference between the credit taken and that

 

 

HB4114- 101 -LRB103 33313 HLH 63123 b

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

 

 

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1Department shall pay 20% of the net revenue realized for that
2month from the 1.25% rate on the selling price of sales tax
3holiday items into the County and Mass Transit District Fund.
4    Beginning January 1, 1990, each month the Department shall
5pay into the Local Government Tax Fund 16% of the net revenue
6realized for the preceding month from the 6.25% general rate
7on the selling price of tangible personal property other than
8aviation fuel sold on or after December 1, 2019. This
9exception for aviation fuel only applies for so long as the
10revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1147133 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 Fuel 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 Local Government Tax Fund 80% of the net revenue
26realized for the preceding month from the 1.25% rate on the

 

 

HB4114- 103 -LRB103 33313 HLH 63123 b

1selling price of motor fuel and gasohol. If, in any month, the
2tax on sales tax holiday items, as defined in Section 2-8, is
3imposed at the rate of 1.25%, then the Department shall pay 80%
4of the net revenue realized for that month from the 1.25% rate
5on the selling price of sales tax holiday items into the Local
6Government Tax Fund.
7    Beginning October 1, 2009, each month the Department shall
8pay into the Capital Projects Fund an amount that is equal to
9an amount estimated by the Department to represent 80% of the
10net revenue realized for the preceding month from the sale of
11candy, grooming and hygiene products, and soft drinks that had
12been taxed at a rate of 1% prior to September 1, 2009 but that
13are now taxed at 6.25%.
14    Beginning July 1, 2011, each month the Department shall
15pay into the Clean Air Act Permit Fund 80% of the net revenue
16realized for the preceding month from the 6.25% general rate
17on the selling price of sorbents used in Illinois in the
18process of sorbent injection as used to comply with the
19Environmental Protection Act or the federal Clean Air Act, but
20the total payment into the Clean Air Act Permit Fund under this
21Act and the Use Tax Act shall not exceed $2,000,000 in any
22fiscal year.
23    Beginning July 1, 2013, each month the Department shall
24pay into the Underground Storage Tank Fund from the proceeds
25collected under this Act, the Use Tax Act, the Service Use Tax
26Act, and the Service Occupation Tax Act an amount equal to the

 

 

HB4114- 104 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 105 -LRB103 33313 HLH 63123 b

1being hereinafter called the "Tax Acts" and such aggregate of
22.2% or 3.8%, as the case may be, of moneys being hereinafter
3called the "Tax Act Amount", and (2) the amount transferred to
4the Build Illinois Fund from the State and Local Sales Tax
5Reform Fund shall be less than the Annual Specified Amount (as
6hereinafter defined), an amount equal to the difference shall
7be immediately paid into the Build Illinois Fund from other
8moneys received by the Department pursuant to the Tax Acts;
9the "Annual Specified Amount" means the amounts specified
10below for fiscal years 1986 through 1993:
11Fiscal YearAnnual Specified Amount
121986$54,800,000
131987$76,650,000
141988$80,480,000
151989$88,510,000
161990$115,330,000
171991$145,470,000
181992$182,730,000
191993$206,520,000;
20and means the Certified Annual Debt Service Requirement (as
21defined in Section 13 of the Build Illinois Bond Act) or the
22Tax Act Amount, whichever is greater, for fiscal year 1994 and
23each fiscal year thereafter; and further provided, that if on
24the last business day of any month the sum of (1) the Tax Act
25Amount required to be deposited into the Build Illinois Bond
26Account in the Build Illinois Fund during such month and (2)

 

 

HB4114- 106 -LRB103 33313 HLH 63123 b

1the amount transferred to the Build Illinois Fund from the
2State and Local Sales Tax Reform Fund shall have been less than
31/12 of the Annual Specified Amount, an amount equal to the
4difference shall be immediately paid into the Build Illinois
5Fund from other moneys received by the Department pursuant to
6the Tax Acts; and, further provided, that in no event shall the
7payments required under the preceding proviso result in
8aggregate payments into the Build Illinois Fund pursuant to
9this clause (b) for any fiscal year in excess of the greater of
10(i) the Tax Act Amount or (ii) the Annual Specified Amount for
11such fiscal year. The amounts payable into the Build Illinois
12Fund under clause (b) of the first sentence in this paragraph
13shall be payable only until such time as the aggregate amount
14on deposit under each trust indenture securing Bonds issued
15and outstanding pursuant to the Build Illinois Bond Act is
16sufficient, taking into account any future investment income,
17to fully provide, in accordance with such indenture, for the
18defeasance of or the payment of the principal of, premium, if
19any, and interest on the Bonds secured by such indenture and on
20any Bonds expected to be issued thereafter and all fees and
21costs payable with respect thereto, all as certified by the
22Director of the Bureau of the Budget (now Governor's Office of
23Management and Budget). If on the last business day of any
24month in which Bonds are outstanding pursuant to the Build
25Illinois Bond Act, the aggregate of moneys deposited in the
26Build Illinois Bond Account in the Build Illinois Fund in such

 

 

HB4114- 107 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 108 -LRB103 33313 HLH 63123 b

1Retailers' Occupation Tax Act into the McCormick Place
2Expansion Project Fund in the specified fiscal years.
3Fiscal YearTotal Deposit
41993         $0
51994 53,000,000
61995 58,000,000
71996 61,000,000
81997 64,000,000
91998 68,000,000
101999 71,000,000
112000 75,000,000
122001 80,000,000
132002 93,000,000
142003 99,000,000
152004103,000,000
162005108,000,000
172006113,000,000
182007119,000,000
192008126,000,000
202009132,000,000
212010139,000,000
222011146,000,000
232012153,000,000
242013161,000,000
252014170,000,000
262015179,000,000

 

 

HB4114- 109 -LRB103 33313 HLH 63123 b

12016189,000,000
22017199,000,000
32018210,000,000
42019221,000,000
52020233,000,000
62021300,000,000
72022300,000,000
82023300,000,000
92024 300,000,000
102025 300,000,000
112026 300,000,000
122027 375,000,000
132028 375,000,000
142029 375,000,000
152030 375,000,000
162031 375,000,000
172032 375,000,000
182033375,000,000
192034375,000,000
202035375,000,000
212036450,000,000
22and
23each fiscal year
24thereafter that bonds
25are outstanding under
26Section 13.2 of the

 

 

HB4114- 110 -LRB103 33313 HLH 63123 b

1Metropolitan Pier and
2Exposition Authority Act,
3but not after fiscal year 2060.
4    Beginning July 20, 1993 and in each month of each fiscal
5year thereafter, one-eighth of the amount requested in the
6certificate of the Chairman of the Metropolitan Pier and
7Exposition Authority for that fiscal year, less the amount
8deposited into the McCormick Place Expansion Project Fund by
9the State Treasurer in the respective month under subsection
10(g) of Section 13 of the Metropolitan Pier and Exposition
11Authority Act, plus cumulative deficiencies in the deposits
12required under this Section for previous months and years,
13shall be deposited into the McCormick Place Expansion Project
14Fund, until the full amount requested for the fiscal year, but
15not in excess of the amount specified above as "Total
16Deposit", has been deposited.
17    Subject to payment of amounts into the Capital Projects
18Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
19and the McCormick Place Expansion Project Fund pursuant to the
20preceding paragraphs or in any amendments thereto hereafter
21enacted, for aviation fuel sold on or after December 1, 2019,
22the Department shall each month deposit into the Aviation Fuel
23Sales Tax Refund Fund an amount estimated by the Department to
24be required for refunds of the 80% portion of the tax on
25aviation fuel under this Act. The Department shall only
26deposit moneys into the Aviation Fuel Sales Tax Refund Fund

 

 

HB4114- 111 -LRB103 33313 HLH 63123 b

1under this paragraph for so long as the revenue use
2requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
3binding on the State.
4    Subject to payment of amounts into the Build Illinois Fund
5and the McCormick Place Expansion Project Fund pursuant to the
6preceding paragraphs or in any amendments thereto hereafter
7enacted, beginning July 1, 1993 and ending on September 30,
82013, the Department shall each month pay into the Illinois
9Tax Increment Fund 0.27% of 80% of the net revenue realized for
10the preceding month from the 6.25% general rate on the selling
11price of tangible personal property.
12    Subject to payment of amounts into the Build Illinois Fund
13and the McCormick Place Expansion Project Fund pursuant to the
14preceding paragraphs or in any amendments thereto hereafter
15enacted, beginning with the receipt of the first report of
16taxes paid by an eligible business and continuing for a
1725-year period, the Department shall each month pay into the
18Energy Infrastructure Fund 80% of the net revenue realized
19from the 6.25% general rate on the selling price of
20Illinois-mined coal that was sold to an eligible business. For
21purposes of this paragraph, the term "eligible business" means
22a new electric generating facility certified pursuant to
23Section 605-332 of the Department of Commerce and Economic
24Opportunity Law of the Civil Administrative Code of Illinois.
25    Subject to payment of amounts into the Build Illinois
26Fund, the McCormick Place Expansion Project Fund, the Illinois

 

 

HB4114- 112 -LRB103 33313 HLH 63123 b

1Tax Increment Fund, and the Energy Infrastructure Fund
2pursuant to the preceding paragraphs or in any amendments to
3this Section hereafter enacted, beginning on the first day of
4the first calendar month to occur on or after August 26, 2014
5(the effective date of Public Act 98-1098), each month, from
6the collections made under Section 9 of the Use Tax Act,
7Section 9 of the Service Use Tax Act, Section 9 of the Service
8Occupation Tax Act, and Section 3 of the Retailers' Occupation
9Tax Act, the Department shall pay into the Tax Compliance and
10Administration Fund, to be used, subject to appropriation, to
11fund additional auditors and compliance personnel at the
12Department of Revenue, an amount equal to 1/12 of 5% of 80% of
13the cash receipts collected during the preceding fiscal year
14by the Audit Bureau of the Department under the Use Tax Act,
15the Service Use Tax Act, the Service Occupation Tax Act, the
16Retailers' Occupation Tax Act, and associated local occupation
17and use taxes administered by the Department.
18    Subject to payments of amounts into the Build Illinois
19Fund, the McCormick Place Expansion Project Fund, the Illinois
20Tax Increment Fund, the Energy Infrastructure Fund, and the
21Tax Compliance and Administration Fund as provided in this
22Section, beginning on July 1, 2018 the Department shall pay
23each month into the Downstate Public Transportation Fund the
24moneys required to be so paid under Section 2-3 of the
25Downstate Public Transportation Act.
26    Subject to successful execution and delivery of a

 

 

HB4114- 113 -LRB103 33313 HLH 63123 b

1public-private agreement between the public agency and private
2entity and completion of the civic build, beginning on July 1,
32023, of the remainder of the moneys received by the
4Department under the Use Tax Act, the Service Use Tax Act, the
5Service Occupation Tax Act, and this Act, the Department shall
6deposit the following specified deposits in the aggregate from
7collections under the Use Tax Act, the Service Use Tax Act, the
8Service Occupation Tax Act, and the Retailers' Occupation Tax
9Act, as required under Section 8.25g of the State Finance Act
10for distribution consistent with the Public-Private
11Partnership for Civic and Transit Infrastructure Project Act.
12The moneys received by the Department pursuant to this Act and
13required to be deposited into the Civic and Transit
14Infrastructure Fund are subject to the pledge, claim and
15charge set forth in Section 25-55 of the Public-Private
16Partnership for Civic and Transit Infrastructure Project Act.
17As used in this paragraph, "civic build", "private entity",
18"public-private agreement", and "public agency" have the
19meanings provided in Section 25-10 of the Public-Private
20Partnership for Civic and Transit Infrastructure Project Act.
21        Fiscal Year.............................Total Deposit
22        2024.....................................$200,000,000
23        2025....................................$206,000,000
24        2026....................................$212,200,000
25        2027....................................$218,500,000
26        2028....................................$225,100,000

 

 

HB4114- 114 -LRB103 33313 HLH 63123 b

1        2029....................................$288,700,000
2        2030....................................$298,900,000
3        2031....................................$309,300,000
4        2032....................................$320,100,000
5        2033....................................$331,200,000
6        2034....................................$341,200,000
7        2035....................................$351,400,000
8        2036....................................$361,900,000
9        2037....................................$372,800,000
10        2038....................................$384,000,000
11        2039....................................$395,500,000
12        2040....................................$407,400,000
13        2041....................................$419,600,000
14        2042....................................$432,200,000
15        2043....................................$445,100,000
16    Beginning July 1, 2021 and until July 1, 2022, subject to
17the payment of amounts into the County and Mass Transit
18District Fund, the Local Government Tax Fund, the Build
19Illinois Fund, the McCormick Place Expansion Project Fund, the
20Illinois Tax Increment Fund, the Energy Infrastructure Fund,
21and the Tax Compliance and Administration Fund as provided in
22this Section, the Department shall pay each month into the
23Road Fund the amount estimated to represent 16% of the net
24revenue realized from the taxes imposed on motor fuel and
25gasohol. Beginning July 1, 2022 and until July 1, 2023,
26subject to the payment of amounts into the County and Mass

 

 

HB4114- 115 -LRB103 33313 HLH 63123 b

1Transit District Fund, the Local Government Tax Fund, the
2Build Illinois Fund, the McCormick Place Expansion Project
3Fund, the Illinois Tax Increment Fund, the Energy
4Infrastructure Fund, and the Tax Compliance and Administration
5Fund as provided in this Section, the Department shall pay
6each month into the Road Fund the amount estimated to
7represent 32% of the net revenue realized from the taxes
8imposed on motor fuel and gasohol. Beginning July 1, 2023 and
9until July 1, 2024, subject to the payment of amounts into the
10County and Mass Transit District Fund, the Local Government
11Tax Fund, the Build Illinois Fund, the McCormick Place
12Expansion Project Fund, the Illinois Tax Increment Fund, the
13Energy Infrastructure Fund, and the Tax Compliance and
14Administration Fund as provided in this Section, the
15Department shall pay each month into the Road Fund the amount
16estimated to represent 48% of the net revenue realized from
17the taxes imposed on motor fuel and gasohol. Beginning July 1,
182024 and until July 1, 2025, subject to the payment of amounts
19into the County and Mass Transit District Fund, the Local
20Government Tax Fund, the Build Illinois Fund, the McCormick
21Place Expansion Project Fund, the Illinois Tax Increment Fund,
22the Energy 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 64% of the net revenue realized from
26the taxes imposed on motor fuel and gasohol. Beginning on July

 

 

HB4114- 116 -LRB103 33313 HLH 63123 b

11, 2025, subject to the payment of amounts into the County and
2Mass Transit District Fund, the Local Government Tax Fund, the
3Build Illinois Fund, the McCormick Place Expansion Project
4Fund, the Illinois Tax Increment Fund, the Energy
5Infrastructure Fund, and the Tax Compliance and Administration
6Fund as provided in this Section, the Department shall pay
7each month into the Road Fund the amount estimated to
8represent 80% of the net revenue realized from the taxes
9imposed on motor fuel and gasohol. As used in this paragraph
10"motor fuel" has the meaning given to that term in Section 1.1
11of the Motor Fuel Tax Law, and "gasohol" has the meaning given
12to that term in Section 3-40 of the Use Tax Act.
13    Of the remainder of the moneys received by the Department
14pursuant to this Act, 75% thereof shall be paid into the State
15treasury Treasury and 25% shall be reserved in a special
16account and used only for the transfer to the Common School
17Fund as part of the monthly transfer from the General Revenue
18Fund in accordance with Section 8a of the State Finance Act.
19    The Department may, upon separate written notice to a
20taxpayer, require the taxpayer to prepare and file with the
21Department on a form prescribed by the Department within not
22less than 60 days after receipt of the notice an annual
23information return for the tax year specified in the notice.
24Such annual return to the Department shall include a statement
25of gross receipts as shown by the retailer's last Federal
26income tax return. If the total receipts of the business as

 

 

HB4114- 117 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 118 -LRB103 33313 HLH 63123 b

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

 

 

HB4114- 119 -LRB103 33313 HLH 63123 b

1importers and wholesalers whose products are sold at retail in
2Illinois by numerous retailers, and who wish to do so, may
3assume the responsibility for accounting and paying to the
4Department all tax accruing under this Act with respect to
5such sales, if the retailers who are affected do not make
6written objection to the Department to this arrangement.
7    Any person who promotes, organizes, provides retail
8selling space for concessionaires or other types of sellers at
9the Illinois State Fair, DuQuoin State Fair, county fairs,
10local fairs, art shows, flea markets and similar exhibitions
11or events, including any transient merchant as defined by
12Section 2 of the Transient Merchant Act of 1987, is required to
13file a report with the Department providing the name of the
14merchant's business, the name of the person or persons engaged
15in merchant's business, the permanent address and Illinois
16Retailers Occupation Tax Registration Number of the merchant,
17the dates and location of the event and other reasonable
18information that the Department may require. The report must
19be filed not later than the 20th day of the month next
20following the month during which the event with retail sales
21was held. Any person who fails to file a report required by
22this Section commits a business offense and is subject to a
23fine not to exceed $250.
24    Any person engaged in the business of selling tangible
25personal property at retail as a concessionaire or other type
26of seller at the Illinois State Fair, county fairs, art shows,

 

 

HB4114- 120 -LRB103 33313 HLH 63123 b

1flea markets and similar exhibitions or events, or any
2transient merchants, as defined by Section 2 of the Transient
3Merchant Act of 1987, may be required to make a daily report of
4the amount of such sales to the Department and to make a daily
5payment of the full amount of tax due. The Department shall
6impose this requirement when it finds that there is a
7significant risk of loss of revenue to the State at such an
8exhibition or event. Such a finding shall be based on evidence
9that a substantial number of concessionaires or other sellers
10who are not residents of Illinois will be engaging in the
11business of selling tangible personal property at retail at
12the exhibition or event, or other evidence of a significant
13risk of loss of revenue to the State. The Department shall
14notify concessionaires and other sellers affected by the
15imposition of this requirement. In the absence of notification
16by the Department, the concessionaires and other sellers shall
17file their returns as otherwise required in this Section.
18(Source: P.A. 101-10, Article 15, Section 15-25, eff. 6-5-19;
19101-10, Article 25, Section 25-120, 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; 102-634, eff. 8-27-21; 102-700, Article
2260, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
2365-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
241-1-23; revised 12-13-22.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.