103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4965

 

Introduced 2/7/2024, by Rep. Jennifer Sanalitro

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-10
35 ILCS 105/9  from Ch. 120, par. 439.9
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 110/9  from Ch. 120, par. 439.39
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 115/9  from Ch. 120, par. 439.109
35 ILCS 120/2-10
35 ILCS 120/3  from Ch. 120, par. 442

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the tax on school supplies under those Acts is imposed at the rate of 1.25%. Makes changes concerning the distribution of the proceeds from the taxes on those items. Effective immediately.


LRB103 37512 HLH 67635 b

 

 

A BILL FOR

 

HB4965LRB103 37512 HLH 67635 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 Use Tax Act is amended by changing Sections
53-10 and 9 as follows:
 
6    (35 ILCS 105/3-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property. In all cases where property
11functionally used or consumed is the same as the property that
12was purchased at retail, then the tax is imposed on the selling
13price of the property. In all cases where property
14functionally used or consumed is a by-product or waste product
15that has been refined, manufactured, or produced from property
16purchased at retail, then the tax is imposed on the lower of
17the fair market value, if any, of the specific property so used
18in this State or on the selling price of the property purchased
19at retail. For purposes of this Section "fair market value"
20means the price at which property would change hands between a
21willing buyer and a willing seller, neither being under any
22compulsion to buy or sell and both having reasonable knowledge
23of the relevant facts. The fair market value shall be

 

 

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1established by Illinois sales by the taxpayer of the same
2property as that functionally used or consumed, or if there
3are no such sales by the taxpayer, then comparable sales or
4purchases of property of like kind and character in Illinois.
5    Beginning on January 1, 2025, with respect to school
6supplies, the tax is imposed at the rate of 1.25% of the
7selling price of the school supplies. This reduction is exempt
8from the provisions of Section 3-90.
9    As used in this Section:
10    "School supplies" means items that may be used by a
11student in a course of study, including, but not limited to:
12binders; book bags; calculators; cellophane tape; blackboard
13chalk; compasses; composition books; crayons; erasers;
14expandable, pocket, plastic, and manila folders; glue, paste,
15and paste sticks; highlighters; index cards; index card boxes;
16legal pads; lunch boxes; markers; notebooks; paper, including
17loose leaf ruled notebook paper, copy paper, graph paper,
18tracing paper, manila paper, colored paper, poster board, and
19construction paper; pencils; pencil leads; pens; ink and ink
20refills for pens; pencil boxes and other school supply boxes;
21pencil sharpeners; protractors; rulers; scissors; and writing
22tablets.
23    "School supplies" does not include school art supplies,
24except to the extent that those supplies are specifically
25included in this definition; school instructional materials;
26cameras; film and memory cards; video cameras, tapes, and

 

 

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1videotapes; computers; cell phones; Personal Digital
2Assistants (PDAs); handheld electronic schedulers; and school
3computer supplies.
4    Beginning on July 1, 2000 and through December 31, 2000,
5with respect to motor fuel, as defined in Section 1.1 of the
6Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
7the Use Tax Act, the tax is imposed at the rate of 1.25%.
8    Beginning on August 6, 2010 through August 15, 2010, and
9beginning again on August 5, 2022 through August 14, 2022,
10with respect to sales tax holiday items as defined in Section
113-6 of this Act, the tax is imposed at the rate of 1.25%.
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, (iii) 100% of the proceeds of sales made
17after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
18the proceeds of sales made on or after January 1, 2024 and on
19or before December 31, 2028, and (v) 100% of the proceeds of
20sales made after December 31, 2028. If, at any time, however,
21the tax under this Act on sales of gasohol is imposed at the
22rate of 1.25%, then the tax imposed by this Act applies to 100%
23of the proceeds of sales of gasohol made during that time.
24    With respect to mid-range ethanol blends, the tax imposed
25by this Act applies to (i) 80% of the proceeds of sales made on
26or after January 1, 2024 and on or before December 31, 2028 and

 

 

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1(ii) 100% of the proceeds of sales made thereafter. If, at any
2time, however, the tax under this Act on sales of mid-range
3ethanol blends is imposed at the rate of 1.25%, then the tax
4imposed by this Act applies to 100% of the proceeds of sales of
5mid-range ethanol blends made during that time.
6    With respect to majority blended ethanol fuel, the tax
7imposed by this Act does not apply to the proceeds of sales
8made on or after July 1, 2003 and on or before December 31,
92028 but applies to 100% of the proceeds of sales made
10thereafter.
11    With respect to biodiesel blends with no less than 1% and
12no more than 10% biodiesel, the tax imposed by this Act applies
13to (i) 80% of the proceeds of sales made on or after July 1,
142003 and on or before December 31, 2018 and (ii) 100% of the
15proceeds of sales made after December 31, 2018 and before
16January 1, 2024. On and after January 1, 2024 and on or before
17December 31, 2030, the taxation of biodiesel, renewable
18diesel, and biodiesel blends shall be as provided in Section
193-5.1. If, at any time, however, the tax under this Act on
20sales of biodiesel blends with no less than 1% and no more than
2110% biodiesel is imposed at the rate of 1.25%, then the tax
22imposed by this Act applies to 100% of the proceeds of sales of
23biodiesel blends with no less than 1% and no more than 10%
24biodiesel made during that time.
25    With respect to biodiesel and biodiesel blends with more
26than 10% but no more than 99% biodiesel, the tax imposed by

 

 

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1this Act does not apply to the proceeds of sales made on or
2after July 1, 2003 and on or before December 31, 2023. On and
3after January 1, 2024 and on or before December 31, 2030, the
4taxation of biodiesel, renewable diesel, and biodiesel blends
5shall be as provided in Section 3-5.1.
6    Until July 1, 2022 and beginning again on July 1, 2023,
7with respect to food for human consumption that is to be
8consumed off the premises where it is sold (other than
9alcoholic beverages, food consisting of or infused with adult
10use cannabis, soft drinks, and food that has been prepared for
11immediate consumption), the tax is imposed at the rate of 1%.
12Beginning on July 1, 2022 and until July 1, 2023, with respect
13to food for human consumption that is to be consumed off the
14premises where it is sold (other than alcoholic beverages,
15food consisting of or infused with adult use cannabis, soft
16drinks, and food that has been prepared for immediate
17consumption), the tax is imposed at the rate of 0%.
18    With respect to prescription and nonprescription
19medicines, drugs, medical appliances, products classified as
20Class III medical devices by the United States Food and Drug
21Administration that are used for cancer treatment pursuant to
22a prescription, as well as any accessories and components
23related to those devices, modifications to a motor vehicle for
24the purpose of rendering it usable by a person with a
25disability, and insulin, blood sugar testing materials,
26syringes, and needles used by human diabetics, the tax is

 

 

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

 

 

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

 

 

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1        (A) a "Drug Facts" panel; or
2        (B) a statement of the "active ingredient(s)" with a
3    list of those ingredients contained in the compound,
4    substance or preparation.
5    Beginning on January 1, 2014 (the effective date of Public
6Act 98-122), "prescription and nonprescription medicines and
7drugs" includes medical cannabis purchased from a registered
8dispensing organization under the Compassionate Use of Medical
9Cannabis Program Act.
10    As used in this Section, "adult use cannabis" means
11cannabis subject to tax under the Cannabis Cultivation
12Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
13and does not include cannabis subject to tax under the
14Compassionate Use of Medical Cannabis Program Act.
15    If the property that is purchased at retail from a
16retailer is acquired outside Illinois and used outside
17Illinois before being brought to Illinois for use here and is
18taxable under this Act, the "selling price" on which the tax is
19computed shall be reduced by an amount that represents a
20reasonable allowance for depreciation for the period of prior
21out-of-state use.
22(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
23Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
2460-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
254-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
 

 

 

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1    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
2    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
3and trailers that are required to be registered with an agency
4of this State, each retailer required or authorized to collect
5the tax imposed by this Act shall pay to the Department the
6amount of such tax (except as otherwise provided) at the time
7when he is required to file his return for the period during
8which such tax was collected, less a discount of 2.1% prior to
9January 1, 1990, and 1.75% on and after January 1, 1990, or $5
10per calendar year, whichever is greater, which is allowed to
11reimburse the retailer for expenses incurred in collecting the
12tax, keeping records, preparing and filing returns, remitting
13the tax and supplying data to the Department on request. When
14determining the discount allowed under this Section, retailers
15shall include the amount of tax that would have been due at the
166.25% rate but for the 1.25% rate imposed on sales tax holiday
17items under Public Act 102-700. The discount under this
18Section is not allowed for the 1.25% portion of taxes paid on
19aviation fuel that is subject to the revenue use requirements
20of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining
21the discount allowed under this Section, retailers shall
22include the amount of tax that would have been due at the 1%
23rate but for the 0% rate imposed under Public Act 102-700. In
24the case of retailers who report and pay the tax on a
25transaction by transaction basis, as provided in this Section,
26such discount shall be taken with each such tax remittance

 

 

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

 

 

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1require. The return shall include the gross receipts on food
2for human consumption that is to be consumed off the premises
3where it is sold (other than alcoholic beverages, food
4consisting of or infused with adult use cannabis, soft drinks,
5and food that has been prepared for immediate consumption)
6which were received during the preceding calendar month,
7quarter, or year, as appropriate, and upon which tax would
8have been due but for the 0% rate imposed under Public Act
9102-700. The return shall also include the amount of tax that
10would have been due on food for human consumption that is to be
11consumed off the premises where it is sold (other than
12alcoholic beverages, food consisting of or infused with adult
13use cannabis, soft drinks, and food that has been prepared for
14immediate consumption) but for the 0% rate imposed under
15Public Act 102-700.
16    On and after January 1, 2018, except for returns required
17to be filed prior to January 1, 2023 for motor vehicles,
18watercraft, aircraft, and trailers that are required to be
19registered with an agency of this State, with respect to
20retailers whose annual gross receipts average $20,000 or more,
21all returns required to be filed pursuant to this Act shall be
22filed electronically. On and after January 1, 2023, with
23respect to retailers whose annual gross receipts average
24$20,000 or more, all returns required to be filed pursuant to
25this Act, including, but not limited to, returns for motor
26vehicles, watercraft, aircraft, and trailers that are required

 

 

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1to be registered with an agency of this State, shall be filed
2electronically. Retailers who demonstrate that they do not
3have access to the Internet or demonstrate hardship in filing
4electronically may petition the Department to waive the
5electronic filing requirement.
6    The Department may require returns to be filed on a
7quarterly basis. If so required, a return for each calendar
8quarter shall be filed on or before the twentieth day of the
9calendar month following the end of such calendar quarter. The
10taxpayer shall also file a return with the Department for each
11of the first two months of each calendar quarter, on or before
12the twentieth day of the following calendar month, stating:
13        1. The name of the seller;
14        2. The address of the principal place of business from
15    which he engages in the business of selling tangible
16    personal property at retail in this State;
17        3. The total amount of taxable receipts received by
18    him during the preceding calendar month from sales of
19    tangible personal property by him during such preceding
20    calendar month, including receipts from charge and time
21    sales, but less all deductions allowed by law;
22        4. The amount of credit provided in Section 2d of this
23    Act;
24        5. The amount of tax due;
25        5-5. The signature of the taxpayer; and
26        6. Such other reasonable information as the Department

 

 

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

 

 

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1funds transfer. Beginning October 1, 1994, a taxpayer who has
2an average monthly tax liability of $100,000 or more shall
3make all payments required by rules of the Department by
4electronic funds transfer. Beginning October 1, 1995, a
5taxpayer who has an average monthly tax liability of $50,000
6or more shall make all payments required by rules of the
7Department by electronic funds transfer. Beginning October 1,
82000, a taxpayer who has an annual tax liability of $200,000 or
9more shall make all payments required by rules of the
10Department by electronic funds transfer. The term "annual tax
11liability" shall be the sum of the taxpayer's liabilities
12under this Act, and under all other State and local occupation
13and use tax laws administered by the Department, for the
14immediately preceding calendar year. The term "average monthly
15tax liability" means 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 divided by 12. Beginning
19on October 1, 2002, a taxpayer who has a tax liability in the
20amount set forth in subsection (b) of Section 2505-210 of the
21Department of Revenue Law shall make all payments required by
22rules of the Department by electronic funds transfer.
23    Before August 1 of each year beginning in 1993, the
24Department shall notify all taxpayers required to make
25payments by electronic funds transfer. All taxpayers required
26to make payments by electronic funds transfer shall make those

 

 

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1payments for a minimum of one year beginning on October 1.
2    Any taxpayer not required to make payments by electronic
3funds transfer may make payments by electronic funds transfer
4with the permission of the Department.
5    All taxpayers required to make payment by electronic funds
6transfer and any taxpayers authorized to voluntarily make
7payments by electronic funds transfer shall make those
8payments in the manner authorized by the Department.
9    The Department shall adopt such rules as are necessary to
10effectuate a program of electronic funds transfer and the
11requirements of this Section.
12    Before October 1, 2000, if the taxpayer's average monthly
13tax liability to the Department under this Act, the Retailers'
14Occupation Tax Act, the Service Occupation Tax Act, the
15Service Use Tax Act was $10,000 or more during the preceding 4
16complete calendar quarters, he shall file a return with the
17Department each month by the 20th day of the month next
18following the month during which such tax liability is
19incurred and shall make payments to the Department on or
20before the 7th, 15th, 22nd and last day of the month during
21which such liability is incurred. On and after October 1,
222000, if the taxpayer's average monthly tax liability to the
23Department under this Act, the Retailers' Occupation Tax Act,
24the Service Occupation Tax Act, and the Service Use Tax Act was
25$20,000 or more during the preceding 4 complete calendar
26quarters, he shall file a return with the Department each

 

 

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

 

 

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125% of the taxpayer's liability for the same calendar month of
2the preceding year. If the month during which such tax
3liability is incurred begins on or after January 1, 1989, and
4prior to January 1, 1996, each payment shall be in an amount
5equal to 22.5% of the taxpayer's actual liability for the
6month or 25% of the taxpayer's liability for the same calendar
7month of the preceding year or 100% of the taxpayer's actual
8liability for the quarter monthly reporting period. The amount
9of such quarter monthly payments shall be credited against the
10final tax liability of the taxpayer's return for that month.
11Before October 1, 2000, once applicable, the requirement of
12the making of quarter monthly payments to the Department 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 $9,000, 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 $10,000. 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 $10,000
24threshold stated above, then such taxpayer may petition the
25Department for change in such taxpayer's reporting status. On
26and after October 1, 2000, once applicable, the requirement of

 

 

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1the making of quarter monthly payments to the Department shall
2continue until such taxpayer's average monthly liability to
3the Department during the preceding 4 complete calendar
4quarters (excluding the month of highest liability and the
5month of lowest liability) is less than $19,000 or until such
6taxpayer's average monthly liability to the Department as
7computed for each calendar quarter of the 4 preceding complete
8calendar quarter period is less than $20,000. However, if a
9taxpayer can show the Department that a substantial change in
10the taxpayer's business has occurred which causes the taxpayer
11to anticipate that his average monthly tax liability for the
12reasonably foreseeable future will fall below the $20,000
13threshold stated above, then such taxpayer may petition the
14Department for a change in such taxpayer's reporting status.
15The Department shall change such taxpayer's reporting status
16unless it finds that such change is seasonal in nature and not
17likely to be long term. Quarter monthly payment status shall
18be determined under this paragraph as if the rate reduction to
191.25% in Public Act 102-700 on sales tax holiday items had not
20occurred. For quarter monthly payments due on or after July 1,
212023 and through June 30, 2024, "25% of the taxpayer's
22liability for the same calendar month of the preceding year"
23shall be determined as if the rate reduction to 1.25% in Public
24Act 102-700 on sales tax holiday items had not occurred.
25Quarter monthly payment status shall be determined under this
26paragraph as if the rate reduction to 0% in Public Act 102-700

 

 

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1on food for human consumption that is to be consumed off the
2premises where it is sold (other than alcoholic beverages,
3food consisting of or infused with adult use cannabis, soft
4drinks, and food that has been prepared for immediate
5consumption) had not occurred. For quarter monthly payments
6due under this paragraph on or after July 1, 2023 and through
7June 30, 2024, "25% of the taxpayer's liability for the same
8calendar month of the preceding year" shall be determined as
9if the rate reduction to 0% in Public Act 102-700 had not
10occurred. If any such quarter monthly payment is not paid at
11the time or in the amount required by this Section, then the
12taxpayer shall be liable for penalties and interest on the
13difference between the minimum amount due and the amount of
14such quarter monthly payment actually and timely paid, except
15insofar as the taxpayer has previously made payments for that
16month to the Department in excess of the minimum payments
17previously due as provided in this Section. The Department
18shall make reasonable rules and regulations to govern the
19quarter monthly payment amount and quarter monthly payment
20dates for taxpayers who file on other than a calendar monthly
21basis.
22    If any such payment provided for in this Section exceeds
23the taxpayer's liabilities under this Act, the Retailers'
24Occupation Tax Act, the Service Occupation Tax Act and the
25Service Use Tax Act, as shown by an original monthly return,
26the Department shall issue to the taxpayer a credit memorandum

 

 

HB4965- 20 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 21 -LRB103 37512 HLH 67635 b

1with the return for January, February, and March of a given
2year being due by April 20 of such year; with the return for
3April, May and June of a given year being due by July 20 of
4such year; with the return for July, August and September of a
5given year being due by October 20 of such year, and with the
6return for October, November and December of a given year
7being due by January 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 to 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    In addition, with respect to motor vehicles, watercraft,
25aircraft, and trailers that are required to be registered with
26an agency of this State, except as otherwise provided in this

 

 

HB4965- 22 -LRB103 37512 HLH 67635 b

1Section, every retailer selling this kind of tangible personal
2property shall file, with the Department, upon a form to be
3prescribed and supplied by the Department, a separate return
4for each such item of tangible personal property which the
5retailer sells, except that if, in the same transaction, (i) a
6retailer of aircraft, watercraft, motor vehicles or trailers
7transfers more than one aircraft, watercraft, motor vehicle or
8trailer to another aircraft, watercraft, motor vehicle or
9trailer retailer for the purpose of resale or (ii) a retailer
10of aircraft, watercraft, motor vehicles, or trailers transfers
11more than one aircraft, watercraft, motor vehicle, or trailer
12to a purchaser for use as a qualifying rolling stock as
13provided in Section 3-55 of this Act, then that seller may
14report the transfer of all the aircraft, watercraft, motor
15vehicles or trailers involved in that transaction to the
16Department on the same uniform invoice-transaction reporting
17return form. For purposes of this Section, "watercraft" means
18a Class 2, Class 3, or Class 4 watercraft as defined in Section
193-2 of the Boat Registration and Safety Act, a personal
20watercraft, or any boat equipped with an inboard motor.
21    In addition, with respect to motor vehicles, watercraft,
22aircraft, and trailers that are required to be registered with
23an agency of this State, every person who is engaged in the
24business of leasing or renting such items and who, in
25connection with such business, sells any such item to a
26retailer for the purpose of resale is, notwithstanding any

 

 

HB4965- 23 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 24 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 25 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 26 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 27 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 28 -LRB103 37512 HLH 67635 b

1with the Department under separate registration under this
2Act, such retailer may not file each return that is due as a
3single return covering all such registered businesses, but
4shall file separate returns for each such registered business.
5    Beginning January 1, 1990, each month the Department shall
6pay into the State and Local Sales Tax Reform Fund, a special
7fund in the State Treasury which is hereby created, the net
8revenue realized for the preceding month from the 1% tax
9imposed under this Act.
10    Beginning January 1, 1990, each month the Department shall
11pay into the County and Mass Transit District Fund 4% of the
12net revenue realized for the preceding month from the 6.25%
13general rate on the selling price of tangible personal
14property which is purchased outside Illinois at retail from a
15retailer and which is titled or registered by an agency of this
16State's government.
17    Beginning January 1, 1990, each month the Department shall
18pay into the State and Local Sales Tax Reform Fund, a special
19fund in the State Treasury, 20% of the net revenue realized for
20the preceding month from the 6.25% general rate on the selling
21price of tangible personal property, other than (i) tangible
22personal property which is purchased outside Illinois at
23retail from a retailer and which is titled or registered by an
24agency of this State's government and (ii) aviation fuel sold
25on or after December 1, 2019. This exception for aviation fuel
26only applies for so long as the revenue use requirements of 49

 

 

HB4965- 29 -LRB103 37512 HLH 67635 b

1U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
2    For aviation fuel sold on or after December 1, 2019, each
3month the Department shall pay into the State Aviation Program
4Fund 20% of the net revenue realized for the preceding month
5from the 6.25% general rate on the selling price of aviation
6fuel, less an amount estimated by the Department to be
7required for refunds of the 20% portion of the tax on aviation
8fuel under this Act, which amount shall be deposited into the
9Aviation Fuel Sales Tax Refund Fund. The Department shall only
10pay moneys into the State Aviation Program Fund and the
11Aviation Fuels Sales Tax Refund Fund under this Act for so long
12as the revenue use requirements of 49 U.S.C. 47107(b) and 49
13U.S.C. 47133 are binding on the State.
14    Beginning August 1, 2000, each month the Department shall
15pay into the State and Local Sales Tax Reform Fund 100% of the
16net revenue realized for the preceding month from the 1.25%
17rate on the selling price of motor fuel and gasohol. If, in any
18month, the tax on sales tax holiday items, as defined in
19Section 3-6, is imposed at the rate of 1.25%, then the
20Department shall pay 100% of the net revenue realized for that
21month from the 1.25% rate on the selling price of sales tax
22holiday items into the State and Local Sales Tax Reform Fund.
23    Beginning January 1, 2025, the Department shall pay 100%
24of the net revenue realized from the 1.25% rate on the selling
25price of school supplies into the State and Local Sales Tax
26Reform Fund.

 

 

HB4965- 30 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 31 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 32 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 33 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 34 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 35 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 36 -LRB103 37512 HLH 67635 b

12027 375,000,000
22028 375,000,000
32029 375,000,000
42030 375,000,000
52031 375,000,000
62032 375,000,000
72033 375,000,000
82034375,000,000
92035375,000,000
102036450,000,000
11and
12each fiscal year
13thereafter that bonds
14are outstanding under
15Section 13.2 of the
16Metropolitan Pier and
17Exposition Authority Act,
18but not after fiscal year 2060.
19    Beginning July 20, 1993 and in each month of each fiscal
20year thereafter, one-eighth of the amount requested in the
21certificate of the Chairman of the Metropolitan Pier and
22Exposition Authority for that fiscal year, less the amount
23deposited into the McCormick Place Expansion Project Fund by
24the State Treasurer in the respective month under subsection
25(g) of Section 13 of the Metropolitan Pier and Exposition
26Authority Act, plus cumulative deficiencies in the deposits

 

 

HB4965- 37 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 38 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 39 -LRB103 37512 HLH 67635 b

1    Subject to successful execution and delivery of a
2public-private agreement between the public agency and private
3entity and completion of the civic build, beginning on July 1,
42023, of the remainder of the moneys received by the
5Department under the Use Tax Act, the Service Use Tax Act, the
6Service Occupation Tax Act, and this Act, the Department shall
7deposit the following specified deposits in the aggregate from
8collections under the Use Tax Act, the Service Use Tax Act, the
9Service Occupation Tax Act, and the Retailers' Occupation Tax
10Act, as required under Section 8.25g of the State Finance Act
11for distribution consistent with the Public-Private
12Partnership for Civic and Transit Infrastructure Project Act.
13The moneys received by the Department pursuant to this Act and
14required to be deposited into the Civic and Transit
15Infrastructure Fund are subject to the pledge, claim, and
16charge set forth in Section 25-55 of the Public-Private
17Partnership for Civic and Transit Infrastructure Project Act.
18As used in this paragraph, "civic build", "private entity",
19"public-private agreement", and "public agency" have the
20meanings provided in Section 25-10 of the Public-Private
21Partnership for Civic and Transit Infrastructure Project Act.
22        Fiscal Year............................Total Deposit
23        2024....................................$200,000,000
24        2025....................................$206,000,000
25        2026....................................$212,200,000
26        2027....................................$218,500,000

 

 

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1        2028....................................$225,100,000
2        2029....................................$288,700,000
3        2030....................................$298,900,000
4        2031....................................$309,300,000
5        2032....................................$320,100,000
6        2033....................................$331,200,000
7        2034....................................$341,200,000
8        2035....................................$351,400,000
9        2036....................................$361,900,000
10        2037....................................$372,800,000
11        2038....................................$384,000,000
12        2039....................................$395,500,000
13        2040....................................$407,400,000
14        2041....................................$419,600,000
15        2042....................................$432,200,000
16        2043....................................$445,100,000
17    Beginning July 1, 2021 and until July 1, 2022, subject to
18the payment of amounts into the State and Local Sales Tax
19Reform Fund, the Build Illinois Fund, the McCormick Place
20Expansion Project Fund, the Illinois Tax Increment Fund, and
21the Tax Compliance and Administration Fund as provided in this
22Section, the Department shall pay each month into the Road
23Fund the amount estimated to represent 16% of the net revenue
24realized from the taxes imposed on motor fuel and gasohol.
25Beginning July 1, 2022 and until July 1, 2023, subject to the
26payment of amounts into the State and Local Sales Tax Reform

 

 

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1Fund, the Build Illinois Fund, the McCormick Place Expansion
2Project Fund, the Illinois Tax Increment Fund, and the Tax
3Compliance and Administration Fund as provided in this
4Section, the Department shall pay each month into the Road
5Fund the amount estimated to represent 32% of the net revenue
6realized from the taxes imposed on motor fuel and gasohol.
7Beginning July 1, 2023 and until July 1, 2024, subject to the
8payment of amounts into the State and Local Sales Tax Reform
9Fund, the Build Illinois Fund, the McCormick Place Expansion
10Project Fund, the Illinois Tax Increment Fund, and the Tax
11Compliance and Administration Fund as provided in this
12Section, the Department shall pay each month into the Road
13Fund the amount estimated to represent 48% of the net revenue
14realized from the taxes imposed on motor fuel and gasohol.
15Beginning July 1, 2024 and until July 1, 2025, subject to the
16payment of amounts into the State and Local Sales Tax Reform
17Fund, the Build Illinois Fund, the McCormick Place Expansion
18Project Fund, the Illinois Tax Increment Fund, and the Tax
19Compliance and Administration Fund as provided in this
20Section, the Department shall pay each month into the Road
21Fund the amount estimated to represent 64% of the net revenue
22realized from the taxes imposed on motor fuel and gasohol.
23Beginning on July 1, 2025, subject to the payment of amounts
24into the State and Local Sales Tax Reform Fund, the Build
25Illinois Fund, the McCormick Place Expansion Project Fund, the
26Illinois Tax Increment Fund, and the Tax Compliance and

 

 

HB4965- 42 -LRB103 37512 HLH 67635 b

1Administration Fund as provided in this Section, the
2Department shall pay each month into the Road Fund the amount
3estimated to represent 80% of the net revenue realized from
4the taxes imposed on motor fuel and gasohol. As used in this
5paragraph "motor fuel" has the meaning given to that term in
6Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
7meaning given to that term in Section 3-40 of this Act.
8    Of the remainder of the moneys received by the Department
9pursuant to this Act, 75% thereof shall be paid into the State
10Treasury and 25% shall be reserved in a special account and
11used only for the transfer to the Common School Fund as part of
12the monthly transfer from the General Revenue Fund in
13accordance with Section 8a of the State Finance Act.
14    As soon as possible after the first day of each month, upon
15certification of the Department of Revenue, the Comptroller
16shall order transferred and the Treasurer shall transfer from
17the General Revenue Fund to the Motor Fuel Tax Fund an amount
18equal to 1.7% of 80% of the net revenue realized under this Act
19for the second preceding month. Beginning April 1, 2000, this
20transfer is no longer required and shall not be made.
21    Net revenue realized for a month shall be the revenue
22collected by the State pursuant to this Act, less the amount
23paid out during that month as refunds to taxpayers for
24overpayment of liability.
25    For greater simplicity of administration, manufacturers,
26importers and wholesalers whose products are sold at retail in

 

 

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1Illinois by numerous retailers, and who wish to do so, may
2assume the responsibility for accounting and paying to the
3Department all tax accruing under this Act with respect to
4such sales, if the retailers who are affected do not make
5written objection to the Department to this arrangement.
6(Source: P.A. 102-700, Article 60, Section 60-15, eff.
74-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
8102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff.
97-28-23.)
 
10    Section 10. The Service Use Tax Act is amended by changing
11Sections 3-10 and 9 as follows:
 
12    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
13    Sec. 3-10. Rate of tax. Unless otherwise provided in this
14Section, the tax imposed by this Act is at the rate of 6.25% of
15the selling price of tangible personal property transferred as
16an incident to the sale of service, but, for the purpose of
17computing this tax, in no event shall the selling price be less
18than the cost price of the property to the serviceman.
19    Beginning on January 1, 2025, with respect to school
20supplies, the tax is imposed at the rate of 1.25% of the
21selling price of the school supplies. This reduction is exempt
22from the provisions of Section 3-75.
23    As used in this Section:
24    "School supplies" means items that may be used by a

 

 

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1student in a course of study, including, but not limited to:
2binders; book bags; calculators; cellophane tape; blackboard
3chalk; compasses; composition books; crayons; erasers;
4expandable, pocket, plastic, and manila folders; glue, paste,
5and paste sticks; highlighters; index cards; index card boxes;
6legal pads; lunch boxes; markers; notebooks; paper, including
7loose leaf ruled notebook paper, copy paper, graph paper,
8tracing paper, manila paper, colored paper, poster board, and
9construction paper; pencils; pencil leads; pens; ink and ink
10refills for pens; pencil boxes and other school supply boxes;
11pencil sharpeners; protractors; rulers; scissors; and writing
12tablets.
13    "School supplies" does not include school art supplies,
14except to the extent that those supplies are specifically
15included in this definition; school instructional materials;
16cameras; film and memory cards; video cameras, tapes, and
17videotapes; computers; cell phones; Personal Digital
18Assistants (PDAs); handheld electronic schedulers; and school
19computer supplies.
20    Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24    With respect to gasohol, as defined in the Use Tax Act, the
25tax imposed by this Act applies to (i) 70% of the selling price
26of property transferred as an incident to the sale of service

 

 

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1on or after January 1, 1990, and before July 1, 2003, (ii) 80%
2of the selling price of property transferred as an incident to
3the sale of service on or after July 1, 2003 and on or before
4July 1, 2017, (iii) 100% of the selling price of property
5transferred as an incident to the sale of service after July 1,
62017 and before January 1, 2024, (iv) 90% of the selling price
7of property transferred as an incident to the sale of service
8on or after January 1, 2024 and on or before December 31, 2028,
9and (v) 100% of the selling price of property transferred as an
10incident to the sale of service after December 31, 2028. If, at
11any time, however, the tax under this Act on sales of gasohol,
12as defined in the Use Tax Act, is imposed at the rate of 1.25%,
13then the tax imposed by this Act applies to 100% of the
14proceeds of sales of gasohol made during that time.
15    With respect to mid-range ethanol blends, as defined in
16Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
17applies to (i) 80% of the selling price of property
18transferred as an incident to the sale of service on or after
19January 1, 2024 and on or before December 31, 2028 and (ii)
20100% of the selling price of property transferred as an
21incident to the sale of service after December 31, 2028. If, at
22any time, however, the tax under this Act on sales of mid-range
23ethanol blends is imposed at the rate of 1.25%, then the tax
24imposed by this Act applies to 100% of the selling price of
25mid-range ethanol blends transferred as an incident to the
26sale of service during that time.

 

 

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1    With respect to majority blended ethanol fuel, as defined
2in the Use Tax Act, the tax imposed by this Act does not apply
3to the selling price of property transferred as an incident to
4the sale of service on or after July 1, 2003 and on or before
5December 31, 2028 but applies to 100% of the selling price
6thereafter.
7    With respect to biodiesel blends, as defined in the Use
8Tax Act, with no less than 1% and no more than 10% biodiesel,
9the tax imposed by this Act applies to (i) 80% of the selling
10price of property transferred as an incident to the sale of
11service on or after July 1, 2003 and on or before December 31,
122018 and (ii) 100% of the proceeds of the selling price after
13December 31, 2018 and before January 1, 2024. On and after
14January 1, 2024 and on or before December 31, 2030, the
15taxation of biodiesel, renewable diesel, and biodiesel blends
16shall be as provided in Section 3-5.1 of the Use Tax Act. If,
17at any time, however, the tax under this Act on sales of
18biodiesel blends, as defined in the Use Tax Act, with no less
19than 1% and no more than 10% biodiesel is imposed at the rate
20of 1.25%, then the tax imposed by this Act applies to 100% of
21the proceeds of sales of biodiesel blends with no less than 1%
22and no more than 10% biodiesel made during that time.
23    With respect to biodiesel, as defined in the Use Tax Act,
24and biodiesel blends, as defined in the Use Tax Act, with more
25than 10% but no more than 99% biodiesel, the tax imposed by
26this Act does not apply to the proceeds of the selling price of

 

 

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1property transferred as an incident to the sale of service on
2or after July 1, 2003 and on or before December 31, 2023. On
3and after January 1, 2024 and on or before December 31, 2030,
4the taxation of biodiesel, renewable diesel, and biodiesel
5blends shall be as provided in Section 3-5.1 of the Use Tax
6Act.
7    At the election of any registered serviceman made for each
8fiscal year, sales of service in which the aggregate annual
9cost price of tangible personal property transferred as an
10incident to the sales of service is less than 35%, or 75% in
11the case of servicemen transferring prescription drugs or
12servicemen engaged in graphic arts production, of the
13aggregate annual total gross receipts from all sales of
14service, the tax imposed by this Act shall be based on the
15serviceman's cost price of the tangible personal property
16transferred as an incident to the sale of those services.
17    Until July 1, 2022 and beginning again on July 1, 2023, the
18tax shall be imposed at the rate of 1% on food prepared for
19immediate consumption and transferred incident to a sale of
20service subject to this Act or the Service Occupation Tax Act
21by an entity licensed under the Hospital Licensing Act, the
22Nursing Home Care Act, the Assisted Living and Shared Housing
23Act, the ID/DD Community Care Act, the MC/DD Act, the
24Specialized Mental Health Rehabilitation Act of 2013, or the
25Child Care Act of 1969, or an entity that holds a permit issued
26pursuant to the Life Care Facilities Act. Until July 1, 2022

 

 

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1and beginning again on July 1, 2023, the tax shall also be
2imposed at the rate of 1% on food for human consumption that is
3to be consumed off the premises where it is sold (other than
4alcoholic beverages, food consisting of or infused with adult
5use cannabis, soft drinks, and food that has been prepared for
6immediate consumption and is not otherwise included in this
7paragraph).
8    Beginning on July 1, 2022 and until July 1, 2023, the tax
9shall be imposed at the rate of 0% on food prepared for
10immediate consumption and transferred incident to a sale of
11service subject to this Act or the Service Occupation Tax Act
12by an entity licensed under the Hospital Licensing Act, the
13Nursing Home Care Act, the Assisted Living and Shared Housing
14Act, the ID/DD Community Care Act, the MC/DD Act, the
15Specialized Mental Health Rehabilitation Act of 2013, or the
16Child Care Act of 1969, or an entity that holds a permit issued
17pursuant to the Life Care Facilities Act. Beginning on July 1,
182022 and until July 1, 2023, the tax shall also be imposed at
19the rate of 0% on food for human consumption that is to be
20consumed off the premises where it is sold (other than
21alcoholic beverages, food consisting of or infused with adult
22use cannabis, soft drinks, and food that has been prepared for
23immediate consumption and is not otherwise included in this
24paragraph).
25    The tax shall also be imposed at the rate of 1% on
26prescription and nonprescription medicines, drugs, medical

 

 

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1appliances, products classified as Class III medical devices
2by the United States Food and Drug Administration that are
3used for cancer treatment pursuant to a prescription, as well
4as any accessories and components related to those devices,
5modifications to a motor vehicle for the purpose of rendering
6it usable by a person with a disability, and insulin, blood
7sugar testing materials, syringes, and needles used by human
8diabetics. For the purposes of this Section, until September
91, 2009: the term "soft drinks" means any complete, finished,
10ready-to-use, non-alcoholic drink, whether carbonated or not,
11including, but not limited to, soda water, cola, fruit juice,
12vegetable juice, carbonated water, and all other preparations
13commonly known as soft drinks of whatever kind or description
14that are contained in any closed or sealed bottle, can,
15carton, or container, regardless of size; but "soft drinks"
16does not include coffee, tea, non-carbonated water, infant
17formula, milk or milk products as defined in the Grade A
18Pasteurized Milk and Milk Products Act, or drinks containing
1950% or more natural fruit or vegetable juice.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "soft drinks" means non-alcoholic
22beverages that contain natural or artificial sweeteners. "Soft
23drinks" does not include beverages that contain milk or milk
24products, soy, rice or similar milk substitutes, or greater
25than 50% of vegetable or fruit juice by volume.
26    Until August 1, 2009, and notwithstanding any other

 

 

HB4965- 50 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 51 -LRB103 37512 HLH 67635 b

1lotions and screens, unless those products are available by
2prescription only, regardless of whether the products meet the
3definition of "over-the-counter-drugs". For the purposes of
4this paragraph, "over-the-counter-drug" means a drug for human
5use that contains a label that identifies the product as a drug
6as required by 21 CFR 201.66. The "over-the-counter-drug"
7label includes:
8        (A) a "Drug Facts" panel; or
9        (B) a statement of the "active ingredient(s)" with a
10    list of those ingredients contained in the compound,
11    substance or preparation.
12    Beginning on January 1, 2014 (the effective date of Public
13Act 98-122), "prescription and nonprescription medicines and
14drugs" includes medical cannabis purchased from a registered
15dispensing organization under the Compassionate Use of Medical
16Cannabis Program Act.
17    As used in this Section, "adult use cannabis" means
18cannabis subject to tax under the Cannabis Cultivation
19Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
20and does not include cannabis subject to tax under the
21Compassionate Use of Medical Cannabis Program Act.
22    If the property that is acquired from a serviceman is
23acquired outside Illinois and used outside Illinois before
24being brought to Illinois for use here and is taxable under
25this Act, the "selling price" on which the tax is computed
26shall be reduced by an amount that represents a reasonable

 

 

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1allowance for depreciation for the period of prior
2out-of-state use.
3(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
4102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
5Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
6103-154, eff. 6-30-23.)
 
7    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
8    Sec. 9. Each serviceman required or authorized to collect
9the tax herein imposed shall pay to the Department the amount
10of such tax (except as otherwise provided) at the time when he
11is required to file his return for the period during which such
12tax was collected, less a discount of 2.1% prior to January 1,
131990 and 1.75% on and after January 1, 1990, or $5 per calendar
14year, whichever is greater, which is allowed to reimburse the
15serviceman for expenses incurred in collecting the tax,
16keeping records, preparing and filing returns, remitting the
17tax and supplying data to the Department on request. When
18determining the discount allowed under this Section,
19servicemen shall include the amount of tax that would have
20been due at the 1% rate but for the 0% rate imposed under this
21amendatory Act of the 102nd General Assembly. The discount
22under this Section is not allowed for the 1.25% portion of
23taxes paid on aviation fuel that is subject to the revenue use
24requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
25discount allowed under this Section is allowed only for

 

 

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1returns that are filed in the manner required by this Act. The
2Department may disallow the discount for servicemen whose
3certificate of registration is revoked at the time the return
4is filed, but only if the Department's decision to revoke the
5certificate of registration has become final. A serviceman
6need not remit that part of any tax collected by him to the
7extent that he is required to pay and does pay the tax imposed
8by the Service Occupation Tax Act with respect to his sale of
9service involving the incidental transfer by him of the same
10property.
11    Except as provided hereinafter in this Section, on or
12before the twentieth day of each calendar month, such
13serviceman shall file a return for the preceding calendar
14month in accordance with reasonable Rules and Regulations to
15be promulgated by the Department. Such return shall be filed
16on a form prescribed by the Department and shall contain such
17information as the Department may reasonably require. The
18return shall include the gross receipts which were received
19during the preceding calendar month or quarter on the
20following items upon which tax would have been due but for the
210% rate imposed under this amendatory Act of the 102nd General
22Assembly: (i) 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); and (ii) food prepared for immediate

 

 

HB4965- 54 -LRB103 37512 HLH 67635 b

1consumption and transferred incident to a sale of service
2subject to this Act or the Service Occupation Tax Act by an
3entity licensed under the Hospital Licensing Act, the Nursing
4Home Care Act, the Assisted Living and Shared Housing Act, the
5ID/DD Community Care Act, the MC/DD Act, the Specialized
6Mental Health Rehabilitation Act of 2013, or the Child Care
7Act of 1969, or an entity that holds a permit issued pursuant
8to the Life Care Facilities Act. The return shall also include
9the amount of tax that would have been due on the items listed
10in the previous sentence but for the 0% rate imposed under this
11amendatory Act of the 102nd General Assembly.
12    On and after January 1, 2018, with respect to servicemen
13whose annual gross receipts average $20,000 or more, all
14returns required to be filed pursuant to this Act shall be
15filed electronically. Servicemen who demonstrate that they do
16not have access to the Internet or demonstrate hardship in
17filing electronically may petition the Department to waive the
18electronic filing requirement.
19    The Department may require returns to be filed on a
20quarterly basis. If so required, a return for each calendar
21quarter shall be filed on or before the twentieth day of the
22calendar month following the end of such calendar quarter. The
23taxpayer shall also file a return with the Department for each
24of the first two months of each calendar quarter, on or before
25the twentieth day of the following calendar month, stating:
26        1. The name of the seller;

 

 

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1        2. The address of the principal place of business from
2    which he engages in business as a serviceman in this
3    State;
4        3. The total amount of taxable receipts received by
5    him during the preceding calendar month, including
6    receipts from charge and time sales, but less all
7    deductions allowed by law;
8        4. The amount of credit provided in Section 2d of this
9    Act;
10        5. The amount of tax due;
11        5-5. The signature of the taxpayer; and
12        6. Such other reasonable information as the Department
13    may require.
14    Each serviceman required or authorized to collect the tax
15imposed by this Act on aviation fuel transferred as an
16incident of a sale of service in this State during the
17preceding calendar month shall, instead of reporting and
18paying tax on aviation fuel as otherwise required by this
19Section, report and pay such tax on a separate aviation fuel
20tax return. The requirements related to the return shall be as
21otherwise provided in this Section. Notwithstanding any other
22provisions of this Act to the contrary, servicemen collecting
23tax on aviation fuel shall file all aviation fuel tax returns
24and shall make all aviation fuel tax payments by electronic
25means in the manner and form required by the Department. For
26purposes of this Section, "aviation fuel" means jet fuel and

 

 

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1aviation gasoline.
2    If a taxpayer fails to sign a return within 30 days after
3the proper notice and demand for signature by the Department,
4the return shall be considered valid and any amount shown to be
5due on the return shall be deemed assessed.
6    Notwithstanding any other provision of this Act to the
7contrary, servicemen subject to tax on cannabis shall file all
8cannabis tax returns and shall make all cannabis tax payments
9by electronic means in the manner and form required by the
10Department.
11    Beginning October 1, 1993, a taxpayer who has an average
12monthly tax liability of $150,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 1994, a taxpayer who has
15an average monthly tax liability of $100,000 or more shall
16make all payments required by rules of the Department by
17electronic funds transfer. Beginning October 1, 1995, a
18taxpayer who has an average monthly tax liability of $50,000
19or more shall make all payments required by rules of the
20Department by electronic funds transfer. Beginning October 1,
212000, a taxpayer who has an annual tax liability of $200,000 or
22more shall make all payments required by rules of the
23Department by electronic funds transfer. The term "annual tax
24liability" shall be the sum of the taxpayer's liabilities
25under this Act, and under all other State and local occupation
26and use tax laws administered by the Department, for the

 

 

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

 

 

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

 

 

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

 

 

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1Acts on the one form.
2    Where the serviceman has more than one business registered
3with the Department under separate registration hereunder,
4such serviceman shall not file each return that is due as a
5single return covering all such registered businesses, but
6shall file separate returns for each such registered business.
7    Beginning January 1, 1990, each month the Department shall
8pay into the State and Local Tax Reform Fund, a special fund in
9the State Treasury, the net revenue realized for the preceding
10month from the 1% tax imposed under this Act.
11    Beginning January 1, 1990, each month the Department shall
12pay into the State and Local Sales Tax Reform Fund 20% of the
13net revenue realized for the preceding month from the 6.25%
14general rate on transfers of tangible personal property, other
15than (i) tangible personal property which is purchased outside
16Illinois at retail from a retailer and which is titled or
17registered by an agency of this State's government and (ii)
18aviation fuel sold on or after December 1, 2019. This
19exception for aviation fuel only applies for so long as the
20revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2147133 are binding on the State.
22    For aviation fuel sold on or after December 1, 2019, each
23month the Department shall pay into the State Aviation Program
24Fund 20% of the net revenue realized for the preceding month
25from the 6.25% general rate on the selling price of aviation
26fuel, less an amount estimated by the Department to be

 

 

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1required for refunds of the 20% portion of the tax on aviation
2fuel under this Act, which amount shall be deposited into the
3Aviation Fuel Sales Tax Refund Fund. The Department shall only
4pay moneys into the State Aviation Program Fund and the
5Aviation Fuel Sales Tax Refund Fund under this Act for so long
6as the revenue use requirements of 49 U.S.C. 47107(b) and 49
7U.S.C. 47133 are binding on the State.
8    Beginning August 1, 2000, each month the Department shall
9pay into the State and Local Sales Tax Reform Fund 100% of the
10net revenue realized for the preceding month from the 1.25%
11rate on the selling price of motor fuel and gasohol.
12    Beginning January 1, 2025, the Department shall pay 100%
13of the net revenue realized from the 1.25% rate on the selling
14price of school supplies into the State and Local Sales Tax
15Reform Fund.
16    Beginning October 1, 2009, each month the Department shall
17pay into the Capital Projects Fund an amount that is equal to
18an amount estimated by the Department to represent 80% of the
19net revenue realized for the preceding month from the sale of
20candy, grooming and hygiene products, and soft drinks that had
21been taxed at a rate of 1% prior to September 1, 2009 but that
22are now taxed at 6.25%.
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
26Occupation Tax Act, and the Retailers' Occupation Tax Act an

 

 

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1amount equal to the average monthly deficit in the Underground
2Storage Tank Fund during the prior year, as certified annually
3by the Illinois Environmental Protection Agency, but the total
4payment into the Underground Storage Tank Fund under this Act,
5the Use Tax Act, the Service Occupation Tax Act, and the
6Retailers' Occupation Tax Act shall not exceed $18,000,000 in
7any State fiscal year. As used in this paragraph, the "average
8monthly deficit" shall be equal to the difference between the
9average monthly claims for payment by the fund and the average
10monthly revenues deposited into the fund, excluding payments
11made pursuant to this paragraph.
12    Beginning July 1, 2015, of the remainder of the moneys
13received by the Department under the Use Tax Act, this Act, the
14Service Occupation Tax Act, and the Retailers' Occupation Tax
15Act, each month the Department shall deposit $500,000 into the
16State Crime 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 Section 3
25of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
26Act, Section 9 of the Service Use Tax Act, and Section 9 of the

 

 

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

 

 

HB4965- 64 -LRB103 37512 HLH 67635 b

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

 

 

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1Department pursuant to this Act and required to be deposited
2into the Build Illinois Fund are subject to the pledge, claim
3and charge set forth in Section 12 of the Build Illinois Bond
4Act.
5    Subject to payment of amounts into the Build Illinois Fund
6as provided in the preceding paragraph or in any amendment
7thereto hereafter enacted, the following specified monthly
8installment of the amount requested in the certificate of the
9Chairman of the Metropolitan Pier and Exposition Authority
10provided under Section 8.25f of the State Finance Act, but not
11in excess of the sums designated as "Total Deposit", shall be
12deposited in the aggregate from collections under Section 9 of
13the Use Tax Act, Section 9 of the Service Use Tax Act, Section
149 of the Service Occupation Tax Act, and Section 3 of the
15Retailers' Occupation Tax Act into the McCormick Place
16Expansion Project Fund in the specified fiscal years.
 
17Fiscal YearTotal Deposit
181993         $0
191994 53,000,000
201995 58,000,000
211996 61,000,000
221997 64,000,000
231998 68,000,000
241999 71,000,000
252000 75,000,000

 

 

HB4965- 66 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 67 -LRB103 37512 HLH 67635 b

12027 375,000,000
22028 375,000,000
32029 375,000,000
42030 375,000,000
52031 375,000,000
62032 375,000,000
72033 375,000,000
82034375,000,000
92035375,000,000
102036450,000,000
11and
12each fiscal year
13thereafter that bonds
14are outstanding under
15Section 13.2 of the
16Metropolitan Pier and
17Exposition Authority Act,
18but not after fiscal year 2060.
19    Beginning July 20, 1993 and in each month of each fiscal
20year thereafter, one-eighth of the amount requested in the
21certificate of the Chairman of the Metropolitan Pier and
22Exposition Authority for that fiscal year, less the amount
23deposited into the McCormick Place Expansion Project Fund by
24the State Treasurer in the respective month under subsection
25(g) of Section 13 of the Metropolitan Pier and Exposition
26Authority Act, plus cumulative deficiencies in the deposits

 

 

HB4965- 68 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 69 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 70 -LRB103 37512 HLH 67635 b

1    Subject to successful execution and delivery of a
2public-private agreement between the public agency and private
3entity and completion of the civic build, beginning on July 1,
42023, of the remainder of the moneys received by the
5Department under the Use Tax Act, the Service Use Tax Act, the
6Service Occupation Tax Act, and this Act, the Department shall
7deposit the following specified deposits in the aggregate from
8collections under the Use Tax Act, the Service Use Tax Act, the
9Service Occupation Tax Act, and the Retailers' Occupation Tax
10Act, as required under Section 8.25g of the State Finance Act
11for distribution consistent with the Public-Private
12Partnership for Civic and Transit Infrastructure Project Act.
13The moneys received by the Department pursuant to this Act and
14required to be deposited into the Civic and Transit
15Infrastructure Fund are subject to the pledge, claim, and
16charge set forth in Section 25-55 of the Public-Private
17Partnership for Civic and Transit Infrastructure Project Act.
18As used in this paragraph, "civic build", "private entity",
19"public-private agreement", and "public agency" have the
20meanings provided in Section 25-10 of the Public-Private
21Partnership for Civic and Transit Infrastructure Project Act.
22        Fiscal Year............................Total Deposit
23        2024....................................$200,000,000
24        2025....................................$206,000,000
25        2026....................................$212,200,000
26        2027....................................$218,500,000

 

 

HB4965- 71 -LRB103 37512 HLH 67635 b

1        2028....................................$225,100,000
2        2029....................................$288,700,000
3        2030....................................$298,900,000
4        2031....................................$309,300,000
5        2032....................................$320,100,000
6        2033....................................$331,200,000
7        2034....................................$341,200,000
8        2035....................................$351,400,000
9        2036....................................$361,900,000
10        2037....................................$372,800,000
11        2038....................................$384,000,000
12        2039....................................$395,500,000
13        2040....................................$407,400,000
14        2041....................................$419,600,000
15        2042....................................$432,200,000
16        2043....................................$445,100,000
17    Beginning July 1, 2021 and until July 1, 2022, subject to
18the payment of amounts into the State and Local Sales Tax
19Reform Fund, the Build Illinois Fund, the McCormick Place
20Expansion Project Fund, the Energy Infrastructure Fund, and
21the Tax Compliance and Administration Fund as provided in this
22Section, the Department shall pay each month into the Road
23Fund the amount estimated to represent 16% of the net revenue
24realized from the taxes imposed on motor fuel and gasohol.
25Beginning July 1, 2022 and until July 1, 2023, subject to the
26payment of amounts into the State and Local Sales Tax Reform

 

 

HB4965- 72 -LRB103 37512 HLH 67635 b

1Fund, the Build Illinois Fund, the McCormick Place Expansion
2Project Fund, the Illinois Tax Increment Fund, and the Tax
3Compliance and Administration Fund as provided in this
4Section, the Department shall pay each month into the Road
5Fund the amount estimated to represent 32% of the net revenue
6realized from the taxes imposed on motor fuel and gasohol.
7Beginning July 1, 2023 and until July 1, 2024, subject to the
8payment of amounts into the State and Local Sales Tax Reform
9Fund, the Build Illinois Fund, the McCormick Place Expansion
10Project Fund, the Illinois Tax Increment Fund, and the Tax
11Compliance and Administration Fund as provided in this
12Section, the Department shall pay each month into the Road
13Fund the amount estimated to represent 48% of the net revenue
14realized from the taxes imposed on motor fuel and gasohol.
15Beginning July 1, 2024 and until July 1, 2025, subject to the
16payment of amounts into the State and Local Sales Tax Reform
17Fund, the Build Illinois Fund, the McCormick Place Expansion
18Project Fund, the Illinois Tax Increment Fund, and the Tax
19Compliance and Administration Fund as provided in this
20Section, the Department shall pay each month into the Road
21Fund the amount estimated to represent 64% of the net revenue
22realized from the taxes imposed on motor fuel and gasohol.
23Beginning on July 1, 2025, subject to the payment of amounts
24into the State and Local Sales Tax Reform Fund, the Build
25Illinois Fund, the McCormick Place Expansion Project Fund, the
26Illinois Tax Increment Fund, and the Tax Compliance and

 

 

HB4965- 73 -LRB103 37512 HLH 67635 b

1Administration Fund as provided in this Section, the
2Department shall pay each month into the Road Fund the amount
3estimated to represent 80% of the net revenue realized from
4the taxes imposed on motor fuel and gasohol. As used in this
5paragraph "motor fuel" has the meaning given to that term in
6Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
7meaning given to that term in Section 3-40 of the Use Tax Act.
8    Of the remainder of the moneys received by the Department
9pursuant to this Act, 75% thereof shall be paid into the
10General Revenue Fund of the State Treasury and 25% shall be
11reserved in a special account and used only for the transfer to
12the Common School Fund as part of the monthly transfer from the
13General Revenue Fund in accordance with Section 8a of the
14State Finance Act.
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(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
 

 

 

HB4965- 74 -LRB103 37512 HLH 67635 b

1    Section 15. The Service Occupation Tax Act is amended by
2changing Sections 3-10 and 9 as follows:
 
3    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
4    Sec. 3-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6the "selling price", as defined in Section 2 of the Service Use
7Tax Act, of the tangible personal property. For the purpose of
8computing this tax, in no event shall the "selling price" be
9less than the cost price to the serviceman of the tangible
10personal property transferred. The selling price of each item
11of tangible personal property transferred as an incident of a
12sale of service may be shown as a distinct and separate item on
13the serviceman's billing to the service customer. If the
14selling price is not so shown, the selling price of the
15tangible personal property is deemed to be 50% of the
16serviceman's entire billing to the service customer. When,
17however, a serviceman contracts to design, develop, and
18produce special order machinery or equipment, the tax imposed
19by this Act shall be based on the serviceman's cost price of
20the tangible personal property transferred incident to the
21completion of the contract.
22    Beginning on January 1, 2025, with respect to school
23supplies, the tax is imposed at the rate of 1.25% of the
24"selling price", as defined in Section 2 of the Service Use Tax

 

 

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1Act, of the school supplies. This reduction is exempt from the
2provisions of Section 3-55.
3    As used in this Section:
4    "School supplies" means items that may be used by a
5student in a course of study, including, but not limited to:
6binders; book bags; calculators; cellophane tape; blackboard
7chalk; compasses; composition books; crayons; erasers;
8expandable, pocket, plastic, and manila folders; glue, paste,
9and paste sticks; highlighters; index cards; index card boxes;
10legal pads; lunch boxes; markers; notebooks; paper, including
11loose leaf ruled notebook paper, copy paper, graph paper,
12tracing paper, manila paper, colored paper, poster board, and
13construction paper; pencils; pencil leads; pens; ink and ink
14refills for pens; pencil boxes and other school supply boxes;
15pencil sharpeners; protractors; rulers; scissors; and writing
16tablets.
17    "School supplies" does not include school art supplies,
18except to the extent that those supplies are specifically
19included in this definition; school instructional materials;
20cameras; film and memory cards; video cameras, tapes, and
21videotapes; computers; cell phones; Personal Digital
22Assistants (PDAs); handheld electronic schedulers; and school
23computer supplies.
24    Beginning on July 1, 2000 and through December 31, 2000,
25with respect to motor fuel, as defined in Section 1.1 of the
26Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

 

 

HB4965- 76 -LRB103 37512 HLH 67635 b

1the Use Tax Act, the tax is imposed at the rate of 1.25%.
2    With respect to gasohol, as defined in the Use Tax Act, the
3tax imposed by this Act shall apply to (i) 70% of the cost
4price of property transferred as an incident to the sale of
5service on or after January 1, 1990, and before July 1, 2003,
6(ii) 80% of the selling price of property transferred as an
7incident to the sale of service on or after July 1, 2003 and on
8or before July 1, 2017, (iii) 100% of the selling price of
9property transferred as an incident to the sale of service
10after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
11the selling price of property transferred as an incident to
12the sale of service on or after January 1, 2024 and on or
13before December 31, 2028, and (v) 100% of the selling price of
14property transferred as an incident to the sale of service
15after December 31, 2028. If, at any time, however, the tax
16under this Act on sales of gasohol, as defined in the Use Tax
17Act, is imposed at the rate of 1.25%, then the tax imposed by
18this Act applies to 100% of the proceeds of sales of gasohol
19made during that time.
20    With respect to mid-range ethanol blends, as defined in
21Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
22applies to (i) 80% of the selling price of property
23transferred as an incident to the sale of service on or after
24January 1, 2024 and on or before December 31, 2028 and (ii)
25100% of the selling price of property transferred as an
26incident to the sale of service after December 31, 2028. If, at

 

 

HB4965- 77 -LRB103 37512 HLH 67635 b

1any time, however, the tax under this Act on sales of mid-range
2ethanol blends is imposed at the rate of 1.25%, then the tax
3imposed by this Act applies to 100% of the selling price of
4mid-range ethanol blends transferred as an incident to the
5sale of service during that time.
6    With respect to majority blended ethanol fuel, as defined
7in the Use Tax Act, the tax imposed by this Act does not apply
8to the selling price of property transferred as an incident to
9the sale of service on or after July 1, 2003 and on or before
10December 31, 2028 but applies to 100% of the selling price
11thereafter.
12    With respect to biodiesel blends, as defined in the Use
13Tax Act, with no less than 1% and no more than 10% biodiesel,
14the tax imposed by this Act applies to (i) 80% of the selling
15price of property transferred as an incident to the sale of
16service on or after July 1, 2003 and on or before December 31,
172018 and (ii) 100% of the proceeds of the selling price after
18December 31, 2018 and before January 1, 2024. On and after
19January 1, 2024 and on or before December 31, 2030, the
20taxation of biodiesel, renewable diesel, and biodiesel blends
21shall be as provided in Section 3-5.1 of the Use Tax Act. If,
22at any time, however, the tax under this Act on sales of
23biodiesel blends, as defined in the Use Tax Act, with no less
24than 1% and no more than 10% biodiesel is imposed at the rate
25of 1.25%, then the tax imposed by this Act applies to 100% of
26the proceeds of sales of biodiesel blends with no less than 1%

 

 

HB4965- 78 -LRB103 37512 HLH 67635 b

1and no more than 10% biodiesel made during that time.
2    With respect to biodiesel, as defined in the Use Tax Act,
3and biodiesel blends, as defined in the Use Tax Act, with more
4than 10% but no more than 99% biodiesel material, the tax
5imposed by this Act does not apply to the proceeds of the
6selling price of property transferred as an incident to the
7sale of service on or after July 1, 2003 and on or before
8December 31, 2023. On and after January 1, 2024 and on or
9before December 31, 2030, the taxation of biodiesel, renewable
10diesel, and biodiesel blends shall be as provided in Section
113-5.1 of the Use Tax Act.
12    At the election of any registered serviceman made for each
13fiscal year, sales of service in which the aggregate annual
14cost price of tangible personal property transferred as an
15incident to the sales of service is less than 35%, or 75% in
16the case of servicemen transferring prescription drugs or
17servicemen engaged in graphic arts production, of the
18aggregate annual total gross receipts from all sales of
19service, the tax imposed by this Act shall be based on the
20serviceman's cost price of the tangible personal property
21transferred incident to the sale of those services.
22    Until July 1, 2022 and beginning again on July 1, 2023, the
23tax shall be imposed at the rate of 1% on food prepared for
24immediate consumption and transferred incident to a sale of
25service subject to this Act or the Service Use Tax Act by an
26entity licensed under the Hospital Licensing Act, the Nursing

 

 

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

 

 

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1drinks, and food that has been prepared for immediate
2consumption and is not otherwise included in this paragraph).
3    The tax shall also be imposed at the rate of 1% on
4prescription and nonprescription medicines, drugs, medical
5appliances, products classified as Class III medical devices
6by the United States Food and Drug Administration that are
7used for cancer treatment pursuant to a prescription, as well
8as any accessories and components related to those devices,
9modifications to a motor vehicle for the purpose of rendering
10it usable by a person with a disability, and insulin, blood
11sugar testing materials, syringes, and needles used by human
12diabetics. For the purposes of this Section, until September
131, 2009: the term "soft drinks" means any complete, finished,
14ready-to-use, non-alcoholic drink, whether carbonated or not,
15including, but not limited to, soda water, cola, fruit juice,
16vegetable juice, carbonated water, and all other preparations
17commonly known as soft drinks of whatever kind or description
18that are contained in any closed or sealed can, carton, or
19container, regardless of size; but "soft drinks" does not
20include coffee, tea, non-carbonated water, infant formula,
21milk or milk products as defined in the Grade A Pasteurized
22Milk and Milk Products Act, or drinks containing 50% or more
23natural fruit or vegetable juice.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "soft drinks" means non-alcoholic
26beverages that contain natural or artificial sweeteners. "Soft

 

 

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

 

 

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1drugs" does not include grooming and hygiene products. For
2purposes of this Section, "grooming and hygiene products"
3includes, but is not limited to, soaps and cleaning solutions,
4shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
5lotions and screens, unless those products are available by
6prescription only, regardless of whether the products meet the
7definition of "over-the-counter-drugs". For the purposes of
8this paragraph, "over-the-counter-drug" means a drug for human
9use that contains a label that identifies the product as a drug
10as required by 21 CFR 201.66. The "over-the-counter-drug"
11label includes:
12        (A) a "Drug Facts" panel; or
13        (B) a statement of the "active ingredient(s)" with a
14    list of those ingredients contained in the compound,
15    substance or preparation.
16    Beginning on January 1, 2014 (the effective date of Public
17Act 98-122), "prescription and nonprescription medicines and
18drugs" includes medical cannabis purchased from a registered
19dispensing organization under the Compassionate Use of Medical
20Cannabis Program Act.
21    As used in this Section, "adult use cannabis" means
22cannabis subject to tax under the Cannabis Cultivation
23Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
24and does not include cannabis subject to tax under the
25Compassionate Use of Medical Cannabis Program Act.
26(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;

 

 

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1102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
2Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
3103-154, eff. 6-30-23.)
 
4    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
5    Sec. 9. Each serviceman required or authorized to collect
6the tax herein imposed shall pay to the Department the amount
7of such tax at the time when he is required to file his return
8for the period during which such tax was collectible, less a
9discount of 2.1% prior to January 1, 1990, and 1.75% on and
10after January 1, 1990, or $5 per calendar year, whichever is
11greater, which is allowed to reimburse the serviceman for
12expenses incurred in collecting the tax, keeping records,
13preparing and filing returns, remitting the tax, and supplying
14data to the Department on request. When determining the
15discount allowed under this Section, servicemen shall include
16the amount of tax that would have been due at the 1% rate but
17for the 0% rate imposed under Public Act 102-700 this
18amendatory Act of the 102nd General Assembly. The discount
19under this Section is not allowed for the 1.25% portion of
20taxes paid on aviation fuel that is subject to the revenue use
21requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
22discount allowed under this Section is allowed only for
23returns that are filed in the manner required by this Act. The
24Department may disallow the discount for servicemen whose
25certificate of registration is revoked at the time the return

 

 

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1is filed, but only if the Department's decision to revoke the
2certificate of registration has become final.
3    Where such tangible personal property is sold under a
4conditional sales contract, or under any other form of sale
5wherein the payment of the principal sum, or a part thereof, is
6extended beyond the close of the period for which the return is
7filed, the serviceman, in collecting the tax may collect, for
8each tax return period, only the tax applicable to the part of
9the selling price actually received during such tax return
10period.
11    Except as provided hereinafter in this Section, on or
12before the twentieth day of each calendar month, such
13serviceman shall file a return for the preceding calendar
14month in accordance with reasonable rules and regulations to
15be promulgated by the Department of Revenue. Such return shall
16be filed on a form prescribed by the Department and shall
17contain such information as the Department may reasonably
18require. The return shall include the gross receipts which
19were received during the preceding calendar month or quarter
20on the following items upon which tax would have been due but
21for the 0% rate imposed under Public Act 102-700 this
22amendatory Act of the 102nd General Assembly: (i) food for
23human consumption that is to be consumed off the premises
24where it is sold (other than alcoholic beverages, food
25consisting of or infused with adult use cannabis, soft drinks,
26and food that has been prepared for immediate consumption);

 

 

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1and (ii) food prepared for immediate consumption and
2transferred incident to a sale of service subject to this Act
3or the Service Use Tax Act by an entity licensed under the
4Hospital Licensing Act, the Nursing Home Care Act, the
5Assisted Living and Shared Housing Act, the ID/DD Community
6Care Act, the MC/DD Act, the Specialized Mental Health
7Rehabilitation Act of 2013, or the Child Care Act of 1969, or
8an entity that holds a permit issued pursuant to the Life Care
9Facilities Act. The return shall also include the amount of
10tax that would have been due on the items listed in the
11previous sentence but for the 0% rate imposed under Public Act
12102-700 this amendatory Act of the 102nd General Assembly.
13    On and after January 1, 2018, with respect to servicemen
14whose annual gross receipts average $20,000 or more, all
15returns required to be filed pursuant to this Act shall be
16filed electronically. Servicemen who demonstrate that they do
17not have access to the Internet or demonstrate hardship in
18filing electronically may petition the Department to waive the
19electronic filing requirement.
20    The Department may require returns to be filed on a
21quarterly basis. If so required, a return for each calendar
22quarter shall be filed on or before the twentieth day of the
23calendar month following the end of such calendar quarter. The
24taxpayer shall also file a return with the Department for each
25of the first two months of each calendar quarter, on or before
26the twentieth day of the following calendar month, stating:

 

 

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1        1. The name of the seller;
2        2. The address of the principal place of business from
3    which he engages in business as a serviceman in this
4    State;
5        3. The total amount of taxable receipts received by
6    him during the preceding calendar month, including
7    receipts from charge and time sales, but less all
8    deductions allowed by law;
9        4. The amount of credit provided in Section 2d of this
10    Act;
11        5. The amount of tax due;
12        5-5. The signature of the taxpayer; and
13        6. Such other reasonable information as the Department
14    may require.
15    Each serviceman required or authorized to collect the tax
16herein imposed on aviation fuel acquired as an incident to the
17purchase of a service in this State during the preceding
18calendar month shall, instead of reporting and paying tax as
19otherwise required by this Section, report and pay such tax on
20a separate aviation fuel tax return. The requirements related
21to the return shall be as otherwise provided in this Section.
22Notwithstanding any other provisions of this Act to the
23contrary, servicemen transferring aviation fuel incident to
24sales of service shall file all aviation fuel tax returns and
25shall make all aviation fuel tax payments by electronic means
26in the manner and form required by the Department. For

 

 

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1purposes of this Section, "aviation fuel" means jet fuel and
2aviation gasoline.
3    If a taxpayer fails to sign a return within 30 days after
4the proper notice and demand for signature by the Department,
5the return shall be considered valid and any amount shown to be
6due on the return shall be deemed assessed.
7    Notwithstanding any other provision of this Act to the
8contrary, servicemen subject to tax on cannabis shall file all
9cannabis tax returns and shall make all cannabis tax payments
10by electronic means in the manner and form required by the
11Department.
12    Prior to October 1, 2003, and on and after September 1,
132004 a serviceman may accept a Manufacturer's Purchase Credit
14certification from a purchaser in satisfaction of Service Use
15Tax as provided in Section 3-70 of the Service Use Tax Act if
16the purchaser provides the appropriate documentation as
17required by Section 3-70 of the Service Use Tax Act. A
18Manufacturer's Purchase Credit certification, accepted prior
19to October 1, 2003 or on or after September 1, 2004 by a
20serviceman as provided in Section 3-70 of the Service Use Tax
21Act, may be used by that serviceman to satisfy Service
22Occupation Tax liability in the amount claimed in the
23certification, not to exceed 6.25% of the receipts subject to
24tax from a qualifying purchase. A Manufacturer's Purchase
25Credit reported on any original or amended return filed under
26this Act after October 20, 2003 for reporting periods prior to

 

 

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1September 1, 2004 shall be disallowed. Manufacturer's Purchase
2Credit reported on annual returns due on or after January 1,
32005 will be disallowed for periods prior to September 1,
42004. No Manufacturer's Purchase Credit may be used after
5September 30, 2003 through August 31, 2004 to satisfy any tax
6liability imposed under this Act, including any audit
7liability.
8    Beginning on July 1, 2023 and through December 31, 2032, a
9serviceman may accept a Sustainable Aviation Fuel Purchase
10Credit certification from an air common carrier-purchaser in
11satisfaction of Service Use Tax as provided in Section 3-72 of
12the Service Use Tax Act if the purchaser provides the
13appropriate documentation as required by Section 3-72 of the
14Service Use Tax Act. A Sustainable Aviation Fuel Purchase
15Credit certification accepted by a serviceman in accordance
16with this paragraph may be used by that serviceman to satisfy
17service occupation tax liability (but not in satisfaction of
18penalty or interest) in the amount claimed in the
19certification, not to exceed 6.25% of the receipts subject to
20tax from a sale of aviation fuel. In addition, for a sale of
21aviation fuel to qualify to earn the Sustainable Aviation Fuel
22Purchase Credit, servicemen must retain in their books and
23records a certification from the producer of the aviation fuel
24that the aviation fuel sold by the serviceman and for which a
25sustainable aviation fuel purchase credit was earned meets the
26definition of sustainable aviation fuel under Section 3-72 of

 

 

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

 

 

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1discontinuing such business.
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" means 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    Where a serviceman collects the tax with respect to the
17selling price of tangible personal property which he sells and
18the purchaser thereafter returns such tangible personal
19property and the serviceman refunds the selling price thereof
20to the purchaser, such serviceman shall also refund, to the
21purchaser, the tax so collected from the purchaser. When
22filing his return for the period in which he refunds such tax
23to the purchaser, the serviceman may deduct the amount of the
24tax so refunded by him to the purchaser from any other Service
25Occupation Tax, Service Use Tax, Retailers' Occupation Tax, or
26Use Tax which such serviceman may be required to pay or remit

 

 

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1to the Department, as shown by such return, provided that the
2amount of the tax to be deducted shall previously have been
3remitted to the Department by such serviceman. If the
4serviceman shall not previously have remitted the amount of
5such tax to the Department, he shall be entitled to no
6deduction hereunder upon refunding such tax to the purchaser.
7    If experience indicates such action to be practicable, the
8Department may prescribe and furnish a combination or joint
9return which will enable servicemen, who are required to file
10returns hereunder and also under the Retailers' Occupation Tax
11Act, the Use Tax Act, or the Service Use Tax Act, to furnish
12all the return information required by all said Acts on the one
13form.
14    Where the serviceman has more than one business registered
15with the Department under separate registrations hereunder,
16such serviceman shall file separate returns for each
17registered business.
18    Beginning January 1, 2025, the Department shall pay into
19the County and Mass Transit District Fund 20% of the net
20revenue realized from the 1.25% rate on school supplies.
21Beginning January 1, 2025, the Department shall pay into the
22Local Government Tax Fund 80% of the revenue realized for the
23preceding month from the 1.25% rate on school supplies.
24    Beginning January 1, 1990, each month the Department shall
25pay into the Local Government Tax Fund the revenue realized
26for the preceding month from the 1% tax imposed under this Act.

 

 

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1    Beginning January 1, 1990, each month the Department shall
2pay into the County and Mass Transit District Fund 4% of the
3revenue realized for the preceding month from the 6.25%
4general rate on sales of tangible personal property other than
5aviation fuel sold on or after December 1, 2019. This
6exception for aviation fuel only applies for so long as the
7revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
847133 are binding on the State.
9    Beginning August 1, 2000, each month the Department shall
10pay into the County and Mass Transit District Fund 20% of the
11net revenue realized for the preceding month from the 1.25%
12rate on the selling price of motor fuel and gasohol.
13    Beginning January 1, 1990, each month the Department shall
14pay into the Local Government Tax Fund 16% of the revenue
15realized for the preceding month from the 6.25% general rate
16on transfers of tangible personal property other than aviation
17fuel sold on or after December 1, 2019. This exception for
18aviation fuel only applies 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    For aviation fuel sold on or after December 1, 2019, each
22month the Department shall pay into the State Aviation Program
23Fund 20% of the net revenue realized for the preceding month
24from the 6.25% general rate on the selling price of aviation
25fuel, less an amount estimated by the Department to be
26required for refunds of the 20% portion of the tax on aviation

 

 

HB4965- 94 -LRB103 37512 HLH 67635 b

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

 

 

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

 

 

HB4965- 96 -LRB103 37512 HLH 67635 b

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

 

 

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

 

 

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

 

 

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

 

 

HB4965- 100 -LRB103 37512 HLH 67635 b

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

 

 

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1    Subject to payment of amounts into the Capital Projects
2Fund, the Build Illinois Fund, and the McCormick Place
3Expansion Project Fund pursuant to the preceding paragraphs or
4in any amendments thereto hereafter enacted, for aviation fuel
5sold on or after December 1, 2019, the Department shall each
6month deposit into the Aviation Fuel Sales Tax Refund Fund an
7amount estimated by the Department to be required for refunds
8of the 80% portion of the tax on aviation fuel under this Act.
9The Department shall only deposit moneys into the Aviation
10Fuel Sales Tax Refund Fund under this paragraph for so long as
11the revenue use requirements of 49 U.S.C. 47107(b) and 49
12U.S.C. 47133 are binding on the State.
13    Subject to payment of amounts into the Build Illinois Fund
14and the McCormick Place Expansion Project Fund pursuant to the
15preceding paragraphs or in any amendments thereto hereafter
16enacted, beginning July 1, 1993 and ending on September 30,
172013, the Department shall each month pay into the Illinois
18Tax Increment Fund 0.27% of 80% of the net revenue realized for
19the preceding month from the 6.25% general rate on the selling
20price of tangible personal property.
21    Subject to payment of amounts into the Build Illinois
22Fund, the McCormick Place Expansion Project Fund, and the
23Illinois Tax Increment Fund pursuant to the preceding
24paragraphs or in any amendments to this Section hereafter
25enacted, beginning on the first day of the first calendar
26month to occur on or after August 26, 2014 (the effective date

 

 

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1of Public Act 98-1098), each month, from the collections made
2under Section 9 of the Use Tax Act, Section 9 of the Service
3Use Tax Act, Section 9 of the Service Occupation Tax Act, and
4Section 3 of the Retailers' Occupation Tax Act, the Department
5shall pay into the Tax Compliance and Administration Fund, to
6be used, subject to appropriation, to fund additional auditors
7and compliance personnel at the Department of Revenue, an
8amount equal to 1/12 of 5% of 80% of the cash receipts
9collected during the preceding fiscal year by the Audit Bureau
10of the Department under the Use Tax Act, the Service Use Tax
11Act, the Service Occupation Tax Act, the Retailers' Occupation
12Tax Act, and associated local occupation and use taxes
13administered by the Department.
14    Subject to payments of amounts into the Build Illinois
15Fund, the McCormick Place Expansion Project Fund, the Illinois
16Tax Increment Fund, and the Tax Compliance and Administration
17Fund as provided in this Section, beginning on July 1, 2018 the
18Department shall pay each month into the Downstate Public
19Transportation Fund the moneys required to be so paid under
20Section 2-3 of the Downstate Public Transportation Act.
21    Subject to successful execution and delivery of a
22public-private agreement between the public agency and private
23entity and completion of the civic build, beginning on July 1,
242023, of the remainder of the moneys received by the
25Department under the Use Tax Act, the Service Use Tax Act, the
26Service Occupation Tax Act, and this Act, the Department shall

 

 

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1deposit the following specified deposits in the aggregate from
2collections under the Use Tax Act, the Service Use Tax Act, the
3Service Occupation Tax Act, and the Retailers' Occupation Tax
4Act, as required under Section 8.25g of the State Finance Act
5for distribution consistent with the Public-Private
6Partnership for Civic and Transit Infrastructure Project Act.
7The moneys received by the Department pursuant to this Act and
8required to be deposited into the Civic and Transit
9Infrastructure Fund are subject to the pledge, claim and
10charge set forth in Section 25-55 of the Public-Private
11Partnership for Civic and Transit Infrastructure Project Act.
12As used in this paragraph, "civic build", "private entity",
13"public-private agreement", and "public agency" have the
14meanings provided in Section 25-10 of the Public-Private
15Partnership for Civic and Transit Infrastructure Project Act.
16        Fiscal Year............................Total Deposit
17        2024....................................$200,000,000
18        2025....................................$206,000,000
19        2026....................................$212,200,000
20        2027....................................$218,500,000
21        2028....................................$225,100,000
22        2029....................................$288,700,000
23        2030....................................$298,900,000
24        2031....................................$309,300,000
25        2032....................................$320,100,000
26        2033....................................$331,200,000

 

 

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1        2034....................................$341,200,000
2        2035....................................$351,400,000
3        2036....................................$361,900,000
4        2037....................................$372,800,000
5        2038....................................$384,000,000
6        2039....................................$395,500,000
7        2040....................................$407,400,000
8        2041....................................$419,600,000
9        2042....................................$432,200,000
10        2043....................................$445,100,000
11    Beginning July 1, 2021 and until July 1, 2022, subject to
12the payment of amounts into the County and Mass Transit
13District Fund, the Local Government Tax Fund, the Build
14Illinois Fund, the McCormick Place Expansion Project Fund, the
15Illinois Tax Increment Fund, and the Tax Compliance and
16Administration Fund as provided in this Section, the
17Department shall pay each month into the Road Fund the amount
18estimated to represent 16% of the net revenue realized from
19the taxes imposed on motor fuel and gasohol. Beginning July 1,
202022 and until July 1, 2023, subject to the payment of amounts
21into the County and Mass Transit District Fund, the Local
22Government Tax Fund, the Build Illinois Fund, the McCormick
23Place Expansion Project Fund, the Illinois Tax Increment Fund,
24and the Tax Compliance and Administration Fund as provided in
25this Section, the Department shall pay each month into the
26Road Fund the amount estimated to represent 32% of the net

 

 

HB4965- 105 -LRB103 37512 HLH 67635 b

1revenue realized from the taxes imposed on motor fuel and
2gasohol. Beginning July 1, 2023 and until July 1, 2024,
3subject to the payment of amounts into the County and Mass
4Transit District Fund, the Local Government Tax Fund, the
5Build Illinois Fund, the McCormick Place Expansion Project
6Fund, the Illinois Tax Increment Fund, and the Tax Compliance
7and Administration Fund as provided in this Section, the
8Department shall pay each month into the Road Fund the amount
9estimated to represent 48% of the net revenue realized from
10the taxes imposed on motor fuel and gasohol. Beginning July 1,
112024 and until July 1, 2025, subject to the payment of amounts
12into the County and Mass Transit District Fund, the Local
13Government Tax Fund, the Build Illinois Fund, the McCormick
14Place Expansion Project Fund, the Illinois Tax Increment Fund,
15and the Tax Compliance and Administration Fund as provided in
16this Section, the Department shall pay each month into the
17Road Fund the amount estimated to represent 64% of the net
18revenue realized from the taxes imposed on motor fuel and
19gasohol. Beginning on July 1, 2025, subject to the payment of
20amounts into the County and Mass Transit District Fund, the
21Local Government Tax Fund, the Build Illinois Fund, the
22McCormick Place Expansion Project Fund, the Illinois Tax
23Increment Fund, and the Tax Compliance and Administration Fund
24as provided in this Section, the Department shall pay each
25month into the Road Fund the amount estimated to represent 80%
26of the net revenue realized from the taxes imposed on motor

 

 

HB4965- 106 -LRB103 37512 HLH 67635 b

1fuel and gasohol. As used in this paragraph "motor fuel" has
2the meaning given to that term in Section 1.1 of the Motor Fuel
3Tax Law, and "gasohol" has the meaning given to that term in
4Section 3-40 of the Use Tax Act.
5    Of the remainder of the moneys received by the Department
6pursuant to this Act, 75% shall be paid into the General
7Revenue Fund of the State treasury Treasury and 25% shall be
8reserved in a special account and used only for the transfer to
9the Common School Fund as part of the monthly transfer from the
10General Revenue Fund in accordance with Section 8a of the
11State Finance Act.
12    The Department may, upon separate written notice to a
13taxpayer, require the taxpayer to prepare and file with the
14Department on a form prescribed by the Department within not
15less than 60 days after receipt of the notice an annual
16information return for the tax year specified in the notice.
17Such annual return to the Department shall include a statement
18of gross receipts as shown by the taxpayer's last federal
19Federal income tax return. If the total receipts of the
20business as reported in the federal Federal income tax return
21do not agree with the gross receipts reported to the
22Department of Revenue for the same period, the taxpayer shall
23attach to his annual return a schedule showing a
24reconciliation of the 2 amounts and the reasons for the
25difference. The taxpayer's annual return to the Department
26shall also disclose the cost of goods sold by the taxpayer

 

 

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1during the year covered by such return, opening and closing
2inventories of such goods for such year, cost of goods used
3from stock or taken from stock and given away by the taxpayer
4during such year, pay roll information of the taxpayer's
5business during such year and any additional reasonable
6information which the Department deems would be helpful in
7determining the accuracy of the monthly, quarterly or annual
8returns filed by such taxpayer as hereinbefore provided for in
9this Section.
10    If the annual information return required by this Section
11is not filed when and as required, the taxpayer shall be liable
12as follows:
13        (i) Until January 1, 1994, the taxpayer shall be
14    liable for a penalty equal to 1/6 of 1% of the tax due from
15    such taxpayer under this Act during the period to be
16    covered by the annual return for each month or fraction of
17    a month until such return is filed as required, the
18    penalty to be assessed and collected in the same manner as
19    any other penalty provided for in this Act.
20        (ii) On and after January 1, 1994, the taxpayer shall
21    be liable for a penalty as described in Section 3-4 of the
22    Uniform Penalty and Interest Act.
23    The chief executive officer, proprietor, owner, or highest
24ranking manager shall sign the annual return to certify the
25accuracy of the information contained therein. Any person who
26willfully signs the annual return containing false or

 

 

HB4965- 108 -LRB103 37512 HLH 67635 b

1inaccurate information shall be guilty of perjury and punished
2accordingly. The annual return form prescribed by the
3Department shall include a warning that the person signing the
4return may be liable for perjury.
5    The foregoing portion of this Section concerning the
6filing of an annual information return shall not apply to a
7serviceman who is not required to file an income tax return
8with the United States Government.
9    As soon as possible after the first day of each month, upon
10certification of the Department of Revenue, the Comptroller
11shall order transferred and the Treasurer shall transfer from
12the General Revenue Fund to the Motor Fuel Tax Fund an amount
13equal to 1.7% of 80% of the net revenue realized under this Act
14for the second preceding month. Beginning April 1, 2000, this
15transfer is no longer required and shall not be made.
16    Net revenue realized for a month shall be the revenue
17collected by the State pursuant to this Act, less the amount
18paid out during that month as refunds to taxpayers for
19overpayment of liability.
20    For greater simplicity of administration, it shall be
21permissible for manufacturers, importers and wholesalers whose
22products are sold by numerous servicemen in Illinois, and who
23wish to do so, to assume the responsibility for accounting and
24paying to the Department all tax accruing under this Act with
25respect to such sales, if the servicemen who are affected do
26not make written objection to the Department to this

 

 

HB4965- 109 -LRB103 37512 HLH 67635 b

1arrangement.
2(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
3103-363, eff. 7-28-23; revised 9-25-23.)
 
4    Section 20. The Retailers' Occupation Tax Act is amended
5by changing Sections 2-10 and 3 as follows:
 
6    (35 ILCS 120/2-10)
7    Sec. 2-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9gross receipts from sales of tangible personal property made
10in the course of business.
11    Beginning on January 1, 2025, with respect to school
12supplies, the tax is imposed at the rate of 1.25% of the gross
13receipts from sales of the school supplies. This reduction is
14exempt from the provisions of Section 2-70.
15    As used in this Section:
16    "School supplies" means items that may be used by a
17student in a course of study, including, but not limited to:
18binders; book bags; calculators; cellophane tape; blackboard
19chalk; compasses; composition books; crayons; erasers;
20expandable, pocket, plastic, and manila folders; glue, paste,
21and paste sticks; highlighters; index cards; index card boxes;
22legal pads; lunch boxes; markers; notebooks; paper, including
23loose leaf ruled notebook paper, copy paper, graph paper,
24tracing paper, manila paper, colored paper, poster board, and

 

 

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1construction paper; pencils; pencil leads; pens; ink and ink
2refills for pens; pencil boxes and other school supply boxes;
3pencil sharpeners; protractors; rulers; scissors; and writing
4tablets.
5    "School supplies" does not include school art supplies,
6except to the extent that those supplies are specifically
7included in this definition; school instructional materials;
8cameras; film and memory cards; video cameras, tapes, and
9videotapes; computers; cell phones; Personal Digital
10Assistants (PDAs); handheld electronic schedulers; and school
11computer supplies.
12    Beginning on July 1, 2000 and through December 31, 2000,
13with respect to motor fuel, as defined in Section 1.1 of the
14Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15the Use Tax Act, the tax is imposed at the rate of 1.25%.
16    Beginning on August 6, 2010 through August 15, 2010, and
17beginning again on August 5, 2022 through August 14, 2022,
18with respect to sales tax holiday items as defined in Section
192-8 of this Act, the tax is imposed at the rate of 1.25%.
20    Within 14 days after July 1, 2000 (the effective date of
21Public Act 91-872), each retailer of motor fuel and gasohol
22shall cause the following notice to be posted in a prominently
23visible place on each retail dispensing device that is used to
24dispense motor fuel or gasohol in the State of Illinois: "As of
25July 1, 2000, the State of Illinois has eliminated the State's
26share of sales tax on motor fuel and gasohol through December

 

 

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131, 2000. The price on this pump should reflect the
2elimination of the tax." The notice shall be printed in bold
3print on a sign that is no smaller than 4 inches by 8 inches.
4The sign shall be clearly visible to customers. Any retailer
5who fails to post or maintain a required sign through December
631, 2000 is guilty of a petty offense for which the fine shall
7be $500 per day per each retail premises where a violation
8occurs.
9    With respect to gasohol, as defined in the Use Tax Act, the
10tax imposed by this Act applies to (i) 70% of the proceeds of
11sales made on or after January 1, 1990, and before July 1,
122003, (ii) 80% of the proceeds of sales made on or after July
131, 2003 and on or before July 1, 2017, (iii) 100% of the
14proceeds of sales made after July 1, 2017 and prior to January
151, 2024, (iv) 90% of the proceeds of sales made on or after
16January 1, 2024 and on or before December 31, 2028, and (v)
17100% of the proceeds of sales made after December 31, 2028. If,
18at any time, however, the tax under this Act on sales of
19gasohol, as defined in the Use Tax Act, is imposed at the rate
20of 1.25%, then the tax imposed by this Act applies to 100% of
21the proceeds of sales of gasohol made during that time.
22    With respect to mid-range ethanol blends, as defined in
23Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
24applies to (i) 80% of the proceeds of sales made on or after
25January 1, 2024 and on or before December 31, 2028 and (ii)
26100% of the proceeds of sales made after December 31, 2028. If,

 

 

HB4965- 112 -LRB103 37512 HLH 67635 b

1at any time, however, the tax under this Act on sales of
2mid-range ethanol blends is imposed at the rate of 1.25%, then
3the tax imposed by this Act applies to 100% of the proceeds of
4sales of mid-range ethanol blends made during that time.
5    With respect to majority blended ethanol fuel, as defined
6in the Use Tax Act, the tax imposed by this Act does not apply
7to the proceeds of sales made on or after July 1, 2003 and on
8or before December 31, 2028 but applies to 100% of the proceeds
9of sales made thereafter.
10    With respect to biodiesel blends, as defined in the Use
11Tax Act, with no less than 1% and no more than 10% biodiesel,
12the tax imposed by this Act applies to (i) 80% of the proceeds
13of sales made on or after July 1, 2003 and on or before
14December 31, 2018 and (ii) 100% of the proceeds of sales made
15after December 31, 2018 and before January 1, 2024. 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. If,
19at any time, however, the tax under this Act on sales of
20biodiesel blends, as defined in the Use Tax Act, with no less
21than 1% and no more than 10% biodiesel is imposed at the rate
22of 1.25%, then the tax imposed by this Act applies to 100% of
23the proceeds of sales of biodiesel blends with no less than 1%
24and no more than 10% biodiesel made during that time.
25    With respect to biodiesel, as defined in the Use Tax Act,
26and biodiesel blends, as defined in the Use Tax Act, with more

 

 

HB4965- 113 -LRB103 37512 HLH 67635 b

1than 10% but no more than 99% biodiesel, the tax imposed by
2this Act does not apply to the proceeds of sales made on or
3after July 1, 2003 and on or before December 31, 2023. On and
4after January 1, 2024 and on or before December 31, 2030, the
5taxation of biodiesel, renewable diesel, and biodiesel blends
6shall be as provided in Section 3-5.1 of the Use Tax Act.
7    Until July 1, 2022 and beginning again on July 1, 2023,
8with respect to food for human consumption that is to be
9consumed off the premises where it is sold (other than
10alcoholic beverages, food consisting of or infused with adult
11use cannabis, soft drinks, and food that has been prepared for
12immediate consumption), the tax is imposed at the rate of 1%.
13Beginning July 1, 2022 and until July 1, 2023, with respect to
14food for human consumption that is to be consumed off the
15premises where it is sold (other than alcoholic beverages,
16food consisting of or infused with adult use cannabis, soft
17drinks, and food that has been prepared for immediate
18consumption), the tax is imposed at the rate of 0%.
19    With respect to prescription and nonprescription
20medicines, drugs, medical appliances, products classified as
21Class III medical devices by the United States Food and Drug
22Administration that are used for cancer treatment pursuant to
23a prescription, as well as any accessories and components
24related to those devices, modifications to a motor vehicle for
25the purpose of rendering it usable by a person with a
26disability, and insulin, blood sugar testing materials,

 

 

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

 

 

HB4965- 115 -LRB103 37512 HLH 67635 b

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

 

 

HB4965- 116 -LRB103 37512 HLH 67635 b

1label includes:
2        (A) a "Drug Facts" panel; or
3        (B) a statement of the "active ingredient(s)" with a
4    list of those ingredients contained in the compound,
5    substance or preparation.
6    Beginning on January 1, 2014 (the effective date of Public
7Act 98-122), "prescription and nonprescription medicines and
8drugs" includes medical cannabis purchased from a registered
9dispensing organization under the Compassionate Use of Medical
10Cannabis Program Act.
11    As used in this Section, "adult use cannabis" means
12cannabis subject to tax under the Cannabis Cultivation
13Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
14and does not include cannabis subject to tax under the
15Compassionate Use of Medical Cannabis Program Act.
16(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
17Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
1860-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
194-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
 
20    (35 ILCS 120/3)  (from Ch. 120, par. 442)
21    Sec. 3. Except as provided in this Section, on or before
22the twentieth day of each calendar month, every person engaged
23in the business of selling tangible personal property at
24retail in this State during the preceding calendar month shall
25file a return with the Department, stating:

 

 

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1        1. The name of the seller;
2        2. His residence address and the address of his
3    principal place of business and the address of the
4    principal place of business (if that is a different
5    address) from which he engages in the business of selling
6    tangible personal property at retail in this State;
7        3. Total amount of receipts received by him during the
8    preceding calendar month or quarter, as the case may be,
9    from sales of tangible personal property, and from
10    services furnished, by him during such preceding calendar
11    month or quarter;
12        4. Total amount received by him during the preceding
13    calendar month or quarter on charge and time sales of
14    tangible personal property, and from services furnished,
15    by him prior to the month or quarter for which the return
16    is filed;
17        5. Deductions allowed by law;
18        6. Gross receipts which were received by him during
19    the preceding calendar month or quarter and upon the basis
20    of which the tax is imposed, including gross receipts on
21    food for human consumption that is to be consumed off the
22    premises where it is sold (other than alcoholic beverages,
23    food consisting of or infused with adult use cannabis,
24    soft drinks, and food that has been prepared for immediate
25    consumption) which were received during the preceding
26    calendar month or quarter and upon which tax would have

 

 

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1    been due but for the 0% rate imposed under Public Act
2    102-700;
3        7. The amount of credit provided in Section 2d of this
4    Act;
5        8. The amount of tax due, including the amount of tax
6    that would have been due on food for human consumption
7    that is to be consumed off the premises where it is sold
8    (other than alcoholic beverages, food consisting of or
9    infused with adult use cannabis, soft drinks, and food
10    that has been prepared for immediate consumption) but for
11    the 0% rate imposed under Public Act 102-700;
12        9. The signature of the taxpayer; and
13        10. Such other reasonable information as the
14    Department may require.
15    On and after January 1, 2018, except for returns required
16to be filed prior to January 1, 2023 for motor vehicles,
17watercraft, aircraft, and trailers that are required to be
18registered with an agency of this State, with respect to
19retailers whose annual gross receipts average $20,000 or more,
20all returns required to be filed pursuant to this Act shall be
21filed electronically. On and after January 1, 2023, with
22respect to retailers whose annual gross receipts average
23$20,000 or more, all returns required to be filed pursuant to
24this Act, including, but not limited to, returns for motor
25vehicles, watercraft, aircraft, and trailers that are required
26to be registered with an agency of this State, shall be filed

 

 

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1electronically. Retailers who demonstrate that they do not
2have access to the Internet or demonstrate hardship in filing
3electronically may petition the Department to waive the
4electronic filing requirement.
5    If a taxpayer fails to sign a return within 30 days after
6the proper notice and demand for signature by the Department,
7the return shall be considered valid and any amount shown to be
8due on the return shall be deemed assessed.
9    Each return shall be accompanied by the statement of
10prepaid tax issued pursuant to Section 2e for which credit is
11claimed.
12    Prior to October 1, 2003, and on and after September 1,
132004, a retailer may accept a Manufacturer's Purchase Credit
14certification from a purchaser in satisfaction of Use Tax as
15provided in Section 3-85 of the Use Tax Act if the purchaser
16provides the appropriate documentation as required by Section
173-85 of the Use Tax Act. A Manufacturer's Purchase Credit
18certification, accepted by a retailer prior to October 1, 2003
19and on and after September 1, 2004 as provided in Section 3-85
20of the Use Tax Act, may be used by that retailer to satisfy
21Retailers' Occupation Tax liability in the amount claimed in
22the certification, not to exceed 6.25% of the receipts subject
23to tax from a qualifying purchase. A Manufacturer's Purchase
24Credit reported on any original or amended return filed under
25this Act after October 20, 2003 for reporting periods prior to
26September 1, 2004 shall be disallowed. Manufacturer's Purchase

 

 

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1Credit reported on annual returns due on or after January 1,
22005 will be disallowed for periods prior to September 1,
32004. No Manufacturer's Purchase Credit may be used after
4September 30, 2003 through August 31, 2004 to satisfy any tax
5liability imposed under this Act, including any audit
6liability.
7    Beginning on July 1, 2023 and through December 31, 2032, a
8retailer may accept a Sustainable Aviation Fuel Purchase
9Credit certification from an air common carrier-purchaser in
10satisfaction of Use Tax on aviation fuel as provided in
11Section 3-87 of the Use Tax Act if the purchaser provides the
12appropriate documentation as required by Section 3-87 of the
13Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
14certification accepted by a retailer in accordance with this
15paragraph may be used by that retailer to satisfy Retailers'
16Occupation Tax liability (but not in satisfaction of penalty
17or interest) in the amount claimed in the certification, not
18to exceed 6.25% of the receipts subject to tax from a sale of
19aviation fuel. In addition, for a sale of aviation fuel to
20qualify to earn the Sustainable Aviation Fuel Purchase Credit,
21retailers must retain in their books and records a
22certification from the producer of the aviation fuel that the
23aviation fuel sold by the retailer and for which a sustainable
24aviation fuel purchase credit was earned meets the definition
25of sustainable aviation fuel under Section 3-87 of the Use Tax
26Act. The documentation must include detail sufficient for the

 

 

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

 

 

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1month shall, instead of reporting and paying tax as otherwise
2required by this Section, report and pay such tax on a separate
3aviation fuel tax return. The requirements related to the
4return shall be as otherwise provided in this Section.
5Notwithstanding any other provisions of this Act to the
6contrary, retailers selling aviation fuel shall file all
7aviation fuel tax returns and shall make all aviation fuel tax
8payments by electronic means in the manner and form required
9by the Department. For purposes of this Section, "aviation
10fuel" means jet fuel and aviation gasoline.
11    Beginning on October 1, 2003, any person who is not a
12licensed distributor, importing distributor, or manufacturer,
13as defined in the Liquor Control Act of 1934, but is engaged in
14the business of selling, at retail, alcoholic liquor shall
15file a statement with the Department of Revenue, in a format
16and at a time prescribed by the Department, showing the total
17amount paid for alcoholic liquor purchased during the
18preceding month and such other information as is reasonably
19required by the Department. The Department may adopt rules to
20require that this statement be filed in an electronic or
21telephonic format. Such rules may provide for exceptions from
22the filing requirements of this paragraph. For the purposes of
23this paragraph, the term "alcoholic liquor" shall have the
24meaning prescribed in the Liquor Control Act of 1934.
25    Beginning on October 1, 2003, every distributor, importing
26distributor, and manufacturer of alcoholic liquor as defined

 

 

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1in the Liquor Control Act of 1934, shall file a statement with
2the Department of Revenue, no later than the 10th day of the
3month for the preceding month during which transactions
4occurred, by electronic means, showing the total amount of
5gross receipts from the sale of alcoholic liquor sold or
6distributed during the preceding month to purchasers;
7identifying the purchaser to whom it was sold or distributed;
8the purchaser's tax registration number; and such other
9information reasonably required by the Department. A
10distributor, importing distributor, or manufacturer of
11alcoholic liquor must personally deliver, mail, or provide by
12electronic means to each retailer listed on the monthly
13statement a report containing a cumulative total of that
14distributor's, importing distributor's, or manufacturer's
15total sales of alcoholic liquor to that retailer no later than
16the 10th day of the month for the preceding month during which
17the transaction occurred. The distributor, importing
18distributor, or manufacturer shall notify the retailer as to
19the method by which the distributor, importing distributor, or
20manufacturer will provide the sales information. If the
21retailer is unable to receive the sales information by
22electronic means, the distributor, importing distributor, or
23manufacturer shall furnish the sales information by personal
24delivery or by mail. For purposes of this paragraph, the term
25"electronic means" includes, but is not limited to, the use of
26a secure Internet website, e-mail, or facsimile.

 

 

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1    If a total amount of less than $1 is payable, refundable or
2creditable, such amount shall be disregarded if it is less
3than 50 cents and shall be increased to $1 if it is 50 cents or
4more.
5    Notwithstanding any other provision of this Act to the
6contrary, retailers subject to tax on cannabis shall file all
7cannabis tax returns and shall make all cannabis tax payments
8by electronic means in the manner and form required by the
9Department.
10    Beginning October 1, 1993, a taxpayer who has an average
11monthly tax liability of $150,000 or more shall make all
12payments required by rules of the Department by electronic
13funds transfer. Beginning October 1, 1994, a taxpayer who has
14an average monthly tax liability of $100,000 or more shall
15make all payments required by rules of the Department by
16electronic funds transfer. Beginning October 1, 1995, a
17taxpayer who has an average monthly tax liability of $50,000
18or more shall make all payments required by rules of the
19Department by electronic funds transfer. Beginning October 1,
202000, a taxpayer who has an annual tax liability of $200,000 or
21more shall make all payments required by rules of the
22Department by electronic funds transfer. The term "annual tax
23liability" shall be the sum of the taxpayer's liabilities
24under this Act, and under all other State and local occupation
25and use tax laws administered by the Department, for the
26immediately preceding calendar year. The term "average monthly

 

 

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

 

 

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1whole-dollar amount in any case where the fractional part of a
2dollar is 50 cents or more, and decreased to the nearest
3whole-dollar amount where the fractional part of a dollar is
4less than 50 cents.
5    If the retailer is otherwise required to file a monthly
6return and if the retailer's average monthly tax liability to
7the Department does not exceed $200, the Department may
8authorize his returns to be filed on a quarter annual basis,
9with the return for January, February, and March of a given
10year being due by April 20 of such year; with the return for
11April, May, and June of a given year being due by July 20 of
12such year; with the return for July, August, and September of a
13given year being due by October 20 of such year, and with the
14return for October, November, and December of a given year
15being due by January 20 of the following year.
16    If the retailer is otherwise required to file a monthly or
17quarterly return and if the retailer's average monthly tax
18liability with the Department does not exceed $50, the
19Department may authorize his returns to be filed on an annual
20basis, with the return for a given year being due by January 20
21of the following year.
22    Such quarter annual and annual returns, as to form and
23substance, shall be subject to the same requirements as
24monthly returns.
25    Notwithstanding any other provision in this Act concerning
26the time within which a retailer may file his return, in the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    If the user who would otherwise pay tax to the retailer
2wants the transaction reporting return filed and the payment
3of the tax or proof of exemption made to the Department before
4the retailer is willing to take these actions and such user has
5not paid the tax to the retailer, such user may certify to the
6fact of such delay by the retailer and may (upon the Department
7being satisfied of the truth of such certification) transmit
8the information required by the transaction reporting return
9and the remittance for tax or proof of exemption directly to
10the Department and obtain his tax receipt or exemption
11determination, in which event the transaction reporting return
12and tax remittance (if a tax payment was required) shall be
13credited by the Department to the proper retailer's account
14with the Department, but without the 2.1% or 1.75% discount
15provided for in this Section being allowed. When the user pays
16the tax directly to the Department, he shall pay the tax in the
17same amount and in the same form in which it would be remitted
18if the tax had been remitted to the Department by the retailer.
19    Refunds made by the seller during the preceding return
20period to purchasers, on account of tangible personal property
21returned to the seller, shall be allowed as a deduction under
22subdivision 5 of his monthly or quarterly return, as the case
23may be, in case the seller had theretofore included the
24receipts from the sale of such tangible personal property in a
25return filed by him and had paid the tax imposed by this Act
26with respect to such receipts.

 

 

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1    Where the seller is a corporation, the return filed on
2behalf of such corporation shall be signed by the president,
3vice-president, secretary, or treasurer or by the properly
4accredited agent of such corporation.
5    Where the seller is a limited liability company, the
6return filed on behalf of the limited liability company shall
7be signed by a manager, member, or properly accredited agent
8of the limited liability company.
9    Except as provided in this Section, the retailer filing
10the return under this Section shall, at the time of filing such
11return, pay to the Department the amount of tax imposed by this
12Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
13on and after January 1, 1990, or $5 per calendar year,
14whichever is greater, which is allowed to reimburse the
15retailer for the expenses incurred in keeping records,
16preparing and filing returns, remitting the tax and supplying
17data to the Department on request. On and after January 1,
182021, a certified service provider, as defined in the Leveling
19the Playing Field for Illinois Retail Act, filing the return
20under this Section on behalf of a remote retailer shall, at the
21time of such return, pay to the Department the amount of tax
22imposed by this Act less a discount of 1.75%. A remote retailer
23using a certified service provider to file a return on its
24behalf, as provided in the Leveling the Playing Field for
25Illinois Retail Act, is not eligible for the discount. When
26determining the discount allowed under this Section, retailers

 

 

HB4965- 134 -LRB103 37512 HLH 67635 b

1shall include the amount of tax that would have been due at the
21% rate but for the 0% rate imposed under Public Act 102-700.
3When determining the discount allowed under this Section,
4retailers shall include the amount of tax that would have been
5due at the 6.25% rate but for the 1.25% rate imposed on sales
6tax holiday items under Public Act 102-700. The discount under
7this Section is not allowed for the 1.25% portion of taxes paid
8on aviation fuel that is subject to the revenue use
9requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any
10prepayment made pursuant to Section 2d of this Act shall be
11included in the amount on which such 2.1% or 1.75% discount is
12computed. In the case of retailers who report and pay the tax
13on a transaction by transaction basis, as provided in this
14Section, such discount shall be taken with each such tax
15remittance instead of when such retailer files his periodic
16return. The discount allowed under this Section is allowed
17only for returns that are filed in the manner required by this
18Act. The Department may disallow the discount for retailers
19whose certificate of registration is revoked at the time the
20return is filed, but only if the Department's decision to
21revoke the certificate of registration has become final.
22    Before October 1, 2000, if the taxpayer's average monthly
23tax liability to the Department under this Act, the Use Tax
24Act, the Service Occupation Tax Act, and the Service Use Tax
25Act, excluding any liability for prepaid sales tax to be
26remitted in accordance with Section 2d of this Act, was

 

 

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

 

 

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1prior to January 1, 1987, each payment shall be in an amount
2equal to 22.5% of the taxpayer's actual liability for the
3month or 27.5% of the taxpayer's liability for the same
4calendar month of the preceding year. If the month during
5which such tax liability is incurred begins on or after
6January 1, 1987 and prior to January 1, 1988, each payment
7shall be in an amount equal to 22.5% of the taxpayer's actual
8liability for the month or 26.25% of the taxpayer's liability
9for the same calendar month of the preceding year. If the month
10during which such tax liability is incurred begins on or after
11January 1, 1988, and prior to January 1, 1989, or begins on or
12after January 1, 1996, each payment shall be in an amount equal
13to 22.5% of the taxpayer's actual liability for the month or
1425% of the taxpayer's liability for the same calendar month of
15the preceding year. If the month during which such tax
16liability is incurred begins on or after January 1, 1989, and
17prior to January 1, 1996, each payment shall be in an amount
18equal to 22.5% of the taxpayer's actual liability for the
19month or 25% of the taxpayer's liability for the same calendar
20month of the preceding year or 100% of the taxpayer's actual
21liability for the quarter monthly reporting period. The amount
22of such quarter monthly payments shall be credited against the
23final tax liability of the taxpayer's return for that month.
24Before October 1, 2000, once applicable, the requirement of
25the making of quarter monthly payments to the Department by
26taxpayers having an average monthly tax liability of $10,000

 

 

HB4965- 137 -LRB103 37512 HLH 67635 b

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

 

 

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1the taxpayer's business has occurred which causes the taxpayer
2to anticipate that his average monthly tax liability for the
3reasonably foreseeable future will fall below the $20,000
4threshold stated above, then such taxpayer may petition the
5Department for a change in such taxpayer's reporting status.
6The Department shall change such taxpayer's reporting status
7unless it finds that such change is seasonal in nature and not
8likely to be long term. Quarter monthly payment status shall
9be determined under this paragraph as if the rate reduction to
100% in Public Act 102-700 on food for human consumption that is
11to be consumed off the premises where it is sold (other than
12alcoholic beverages, food consisting of or infused with adult
13use cannabis, soft drinks, and food that has been prepared for
14immediate consumption) had not occurred. For quarter monthly
15payments due under this paragraph on or after July 1, 2023 and
16through June 30, 2024, "25% of the taxpayer's liability for
17the same calendar month of the preceding year" shall be
18determined as if the rate reduction to 0% in Public Act 102-700
19had not occurred. Quarter monthly payment status shall be
20determined under this paragraph as if the rate reduction to
211.25% in Public Act 102-700 on sales tax holiday items had not
22occurred. For quarter monthly payments due on or after July 1,
232023 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 on sales tax holiday items had not occurred. If any

 

 

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1such quarter monthly payment is not paid at the time or in the
2amount required by this Section, then the taxpayer shall be
3liable for penalties and interest on the difference between
4the minimum amount due as a payment and the amount of such
5quarter monthly payment actually and timely paid, except
6insofar as the taxpayer has previously made payments for that
7month to the Department in excess of the minimum payments
8previously due as provided in this Section. The Department
9shall make reasonable rules and regulations to govern the
10quarter monthly payment amount and quarter monthly payment
11dates for taxpayers who file on other than a calendar monthly
12basis.
13    The provisions of this paragraph apply before October 1,
142001. Without regard to whether a taxpayer is required to make
15quarter monthly payments as specified above, any taxpayer who
16is required by Section 2d of this Act to collect and remit
17prepaid taxes and has collected prepaid taxes which average in
18excess of $25,000 per month during the preceding 2 complete
19calendar quarters, shall file a return with the Department as
20required by Section 2f and shall make payments to the
21Department on or before the 7th, 15th, 22nd and last day of the
22month during which such liability is incurred. If the month
23during which such tax liability is incurred began prior to
24September 1, 1985 (the effective date of Public Act 84-221),
25each payment shall be in an amount not less than 22.5% of the
26taxpayer's actual liability under Section 2d. If the month

 

 

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1during which such tax liability is incurred begins on or after
2January 1, 1986, each payment shall be in an amount equal to
322.5% of the taxpayer's actual liability for the month or
427.5% of the taxpayer's liability for the same calendar month
5of the preceding calendar year. If the month during which such
6tax liability is incurred begins on or after January 1, 1987,
7each payment shall be in an amount equal to 22.5% of the
8taxpayer's actual liability for the month or 26.25% of the
9taxpayer's liability for the same calendar month of the
10preceding year. The amount of such quarter monthly payments
11shall be credited against the final tax liability of the
12taxpayer's return for that month filed under this Section or
13Section 2f, as the case may be. Once applicable, the
14requirement of the making of quarter monthly payments to the
15Department pursuant to this paragraph shall continue until
16such taxpayer's average monthly prepaid tax collections during
17the preceding 2 complete calendar quarters is $25,000 or less.
18If any such quarter monthly payment is not paid at the time or
19in the amount required, the taxpayer shall be liable for
20penalties and interest on such difference, except insofar as
21the taxpayer has previously made payments for that month in
22excess of the minimum payments previously due.
23    The provisions of this paragraph apply on and after
24October 1, 2001. Without regard to whether a taxpayer is
25required to make quarter monthly payments as specified above,
26any taxpayer who is required by Section 2d of this Act to

 

 

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

 

 

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1    If any payment provided for in this Section exceeds the
2taxpayer's liabilities under this Act, the Use Tax Act, the
3Service Occupation Tax Act, and the Service Use Tax Act, as
4shown on an original monthly return, the Department shall, if
5requested by the taxpayer, issue to the taxpayer a credit
6memorandum no later than 30 days after the date of payment. The
7credit evidenced by such credit memorandum may be assigned by
8the taxpayer to a similar taxpayer under this Act, the Use Tax
9Act, the Service Occupation Tax Act, or the Service Use Tax
10Act, in accordance with reasonable rules and regulations to be
11prescribed by the Department. If no such request is made, the
12taxpayer may credit such excess payment against tax liability
13subsequently to be remitted to the Department under this Act,
14the Use Tax Act, the Service Occupation Tax Act, or the Service
15Use Tax Act, in accordance with reasonable rules and
16regulations prescribed by the Department. If the Department
17subsequently determined that all or any part of the credit
18taken was not actually due to the taxpayer, the taxpayer's
192.1% and 1.75% vendor's discount shall be reduced by 2.1% or
201.75% of the difference between the credit taken and that
21actually due, and that taxpayer shall be liable for penalties
22and interest on such difference.
23    If a retailer of motor fuel is entitled to a credit under
24Section 2d of this Act which exceeds the taxpayer's liability
25to the Department under this Act for the month for which the
26taxpayer is filing a return, the Department shall issue the

 

 

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

 

 

HB4965- 144 -LRB103 37512 HLH 67635 b

1on the selling price of tangible personal property other than
2aviation fuel sold on or after December 1, 2019. This
3exception for aviation fuel only applies for so long as the
4revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
547133 are binding on the State.
6    For aviation fuel sold on or after December 1, 2019, each
7month the Department shall pay into the State Aviation Program
8Fund 20% of the net revenue realized for the preceding month
9from the 6.25% general rate on the selling price of aviation
10fuel, less an amount estimated by the Department to be
11required for refunds of the 20% portion of the tax on aviation
12fuel under this Act, which amount shall be deposited into the
13Aviation Fuel Sales Tax Refund Fund. The Department shall only
14pay moneys into the State Aviation Program Fund and the
15Aviation Fuel Sales Tax Refund Fund under this Act for so long
16as the revenue use requirements of 49 U.S.C. 47107(b) and 49
17U.S.C. 47133 are binding on the State.
18    Beginning August 1, 2000, each month the Department shall
19pay into the Local Government Tax Fund 80% of the net revenue
20realized for the preceding month from the 1.25% rate on the
21selling price of motor fuel and gasohol. If, in any month, the
22tax on sales tax holiday items, as defined in Section 2-8, is
23imposed at the rate of 1.25%, then the Department shall pay 80%
24of the net revenue realized for that month from the 1.25% rate
25on the selling price of sales tax holiday items into the Local
26Government Tax Fund.

 

 

HB4965- 145 -LRB103 37512 HLH 67635 b

1    Beginning January 1, 2025, the Department shall pay into
2the County and Mass Transit District Fund 20% of the net
3revenue realized from the 1.25% rate on school supplies.
4Beginning January 1, 2025, the Department shall pay into the
5Local Government Tax Fund 80% of the revenue realized for the
6preceding month from the 1.25% rate on school supplies.
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

 

 

HB4965- 146 -LRB103 37512 HLH 67635 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

 

 

HB4965- 147 -LRB103 37512 HLH 67635 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)

 

 

HB4965- 148 -LRB103 37512 HLH 67635 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

 

 

HB4965- 149 -LRB103 37512 HLH 67635 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

 

 

HB4965- 150 -LRB103 37512 HLH 67635 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

 

 

HB4965- 151 -LRB103 37512 HLH 67635 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

 

 

HB4965- 152 -LRB103 37512 HLH 67635 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

 

 

HB4965- 153 -LRB103 37512 HLH 67635 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
13Fund, the McCormick Place Expansion Project Fund, and the
14Illinois Tax Increment Fund pursuant to the preceding
15paragraphs or in any amendments to this Section hereafter
16enacted, beginning on the first day of the first calendar
17month to occur on or after August 26, 2014 (the effective date
18of Public Act 98-1098), each month, from the collections made
19under Section 9 of the Use Tax Act, Section 9 of the Service
20Use Tax Act, Section 9 of the Service Occupation Tax Act, and
21Section 3 of the Retailers' Occupation Tax Act, the Department
22shall pay into the Tax Compliance and Administration Fund, to
23be used, subject to appropriation, to fund additional auditors
24and compliance personnel at the Department of Revenue, an
25amount equal to 1/12 of 5% of 80% of the cash receipts
26collected during the preceding fiscal year by the Audit Bureau

 

 

HB4965- 154 -LRB103 37512 HLH 67635 b

1of the Department under the Use Tax Act, the Service Use Tax
2Act, the Service Occupation Tax Act, the Retailers' Occupation
3Tax Act, and associated local occupation and use taxes
4administered by the Department.
5    Subject to payments of amounts into the Build Illinois
6Fund, the McCormick Place Expansion Project Fund, the Illinois
7Tax Increment Fund, the Energy Infrastructure Fund, and the
8Tax Compliance and Administration Fund as provided in this
9Section, beginning on July 1, 2018 the Department shall pay
10each month into the Downstate Public Transportation Fund the
11moneys required to be so paid under Section 2-3 of the
12Downstate Public Transportation Act.
13    Subject to successful execution and delivery of a
14public-private agreement between the public agency and private
15entity and completion of the civic build, beginning on July 1,
162023, of the remainder of the moneys received by the
17Department under the Use Tax Act, the Service Use Tax Act, the
18Service Occupation Tax Act, and this Act, the Department shall
19deposit the following specified deposits in the aggregate from
20collections under the Use Tax Act, the Service Use Tax Act, the
21Service Occupation Tax Act, and the Retailers' Occupation Tax
22Act, as required under Section 8.25g of the State Finance Act
23for distribution consistent with the Public-Private
24Partnership for Civic and Transit Infrastructure Project Act.
25The moneys received by the Department pursuant to this Act and
26required to be deposited into the Civic and Transit

 

 

HB4965- 155 -LRB103 37512 HLH 67635 b

1Infrastructure Fund are subject to the pledge, claim and
2charge set forth in Section 25-55 of the Public-Private
3Partnership for Civic and Transit Infrastructure Project Act.
4As used in this paragraph, "civic build", "private entity",
5"public-private agreement", and "public agency" have the
6meanings provided in Section 25-10 of the Public-Private
7Partnership for Civic and Transit Infrastructure Project Act.
8        Fiscal Year.............................Total Deposit
9        2024.....................................$200,000,000
10        2025....................................$206,000,000
11        2026....................................$212,200,000
12        2027....................................$218,500,000
13        2028....................................$225,100,000
14        2029....................................$288,700,000
15        2030....................................$298,900,000
16        2031....................................$309,300,000
17        2032....................................$320,100,000
18        2033....................................$331,200,000
19        2034....................................$341,200,000
20        2035....................................$351,400,000
21        2036....................................$361,900,000
22        2037....................................$372,800,000
23        2038....................................$384,000,000
24        2039....................................$395,500,000
25        2040....................................$407,400,000
26        2041....................................$419,600,000

 

 

HB4965- 156 -LRB103 37512 HLH 67635 b

1        2042....................................$432,200,000
2        2043....................................$445,100,000
3    Beginning July 1, 2021 and until July 1, 2022, subject to
4the payment of amounts into the County and Mass Transit
5District Fund, the Local Government Tax Fund, the Build
6Illinois Fund, the McCormick Place Expansion Project Fund, the
7Illinois Tax Increment Fund, and the Tax Compliance and
8Administration Fund as provided in this Section, the
9Department shall pay each month into the Road Fund the amount
10estimated to represent 16% of the net revenue realized from
11the taxes imposed on motor fuel and gasohol. Beginning July 1,
122022 and until July 1, 2023, subject to the payment of amounts
13into the County and Mass Transit District Fund, the Local
14Government Tax Fund, the Build Illinois Fund, the McCormick
15Place Expansion Project Fund, the Illinois Tax Increment Fund,
16and the Tax Compliance and Administration Fund as provided in
17this Section, the Department shall pay each month into the
18Road Fund the amount estimated to represent 32% of the net
19revenue realized from the taxes imposed on motor fuel and
20gasohol. Beginning July 1, 2023 and until July 1, 2024,
21subject to the payment of amounts into the County and Mass
22Transit District Fund, the Local Government Tax Fund, the
23Build Illinois Fund, the McCormick Place Expansion Project
24Fund, the Illinois Tax Increment Fund, and the Tax Compliance
25and Administration Fund as provided in this Section, the
26Department shall pay each month into the Road Fund the amount

 

 

HB4965- 157 -LRB103 37512 HLH 67635 b

1estimated to represent 48% of the net revenue realized from
2the taxes imposed on motor fuel and gasohol. Beginning July 1,
32024 and until July 1, 2025, subject to the payment of amounts
4into the County and Mass Transit District Fund, the Local
5Government Tax Fund, the Build Illinois Fund, the McCormick
6Place Expansion Project Fund, the Illinois Tax Increment Fund,
7and the Tax Compliance and Administration Fund as provided in
8this Section, the Department shall pay each month into the
9Road Fund the amount estimated to represent 64% of the net
10revenue realized from the taxes imposed on motor fuel and
11gasohol. Beginning on July 1, 2025, subject to the payment of
12amounts into the County and Mass Transit District Fund, the
13Local Government Tax Fund, the Build Illinois Fund, the
14McCormick Place Expansion Project Fund, the Illinois Tax
15Increment Fund, and the Tax Compliance and Administration Fund
16as provided in this Section, the Department shall pay each
17month into the Road Fund the amount estimated to represent 80%
18of the net revenue realized from the taxes imposed on motor
19fuel and gasohol. As used in this paragraph "motor fuel" has
20the meaning given to that term in Section 1.1 of the Motor Fuel
21Tax Law, and "gasohol" has the meaning given to that term in
22Section 3-40 of the Use Tax Act.
23    Of the remainder of the moneys received by the Department
24pursuant to this Act, 75% thereof shall be paid into the State
25treasury and 25% shall be reserved in a special account and
26used only for the transfer to the Common School Fund as part of

 

 

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

 

 

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

 

 

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1certification of the Department of Revenue, the Comptroller
2shall order transferred and the Treasurer shall transfer from
3the General Revenue Fund to the Motor Fuel Tax Fund an amount
4equal to 1.7% of 80% of the net revenue realized under this Act
5for the second preceding month. Beginning April 1, 2000, this
6transfer is no longer required and shall not be made.
7    Net revenue realized for a month shall be the revenue
8collected by the State pursuant to this Act, less the amount
9paid out during that month as refunds to taxpayers for
10overpayment of liability.
11    For greater simplicity of administration, manufacturers,
12importers and wholesalers whose products are sold at retail in
13Illinois by numerous retailers, and who wish to do so, may
14assume the responsibility for accounting and paying to the
15Department all tax accruing under this Act with respect to
16such sales, if the retailers who are affected do not make
17written objection to the Department to this arrangement.
18    Any person who promotes, organizes, or provides retail
19selling space for concessionaires or other types of sellers at
20the Illinois State Fair, DuQuoin State Fair, county fairs,
21local fairs, art shows, flea markets, and similar exhibitions
22or events, including any transient merchant as defined by
23Section 2 of the Transient Merchant Act of 1987, is required to
24file a report with the Department providing the name of the
25merchant's business, the name of the person or persons engaged
26in merchant's business, the permanent address and Illinois

 

 

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

 

 

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1by the Department, the concessionaires and other sellers shall
2file their returns as otherwise required in this Section.
3(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60,
4Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
565-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
61-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363,
7eff. 7-28-23; revised 9-27-23.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.