(35 ILCS 115/3-5)
(Text of Section from P.A. 103-9, Article 5, Section 5-15) Sec. 3-5. Exemptions. The following tangible personal property is
exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society, association,
foundation, institution, or organization, other than a limited liability
company, that is organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the personal property
was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a not-for-profit Illinois county fair
association for use in conducting, operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit
arts or cultural organization that establishes, by proof required by the
Department by
rule, that it has received an exemption under Section 501(c)(3) of the
Internal Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services. These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Legal tender, currency, medallions, or gold or silver coinage
issued by the State of Illinois, the government of the United States of
America, or the government of any foreign country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and
replacement parts, both new and used, and including that manufactured on
special order or purchased for lease, certified by the purchaser to be used
primarily for graphic arts production.
Equipment includes chemicals or chemicals acting as catalysts but only if
the
chemicals or chemicals acting as catalysts effect a direct and immediate change
upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student organization
affiliated with an elementary or secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for production agriculture or State or federal agricultural
programs, including individual replacement parts for the machinery and
equipment, including machinery and equipment purchased for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but
excluding other motor vehicles required to be registered under the Illinois
Vehicle
Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (7).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to,
soil testing sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and activities such as, but
not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals. This item (7) is exempt
from the provisions of
Section 3-55.
(8) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment,
or storage in the conduct of its business as an air common carrier, for
a flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft. (9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of food and
beverages, to the extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service charge is imposed.
(10) Until July 1, 2003, oil field exploration, drilling, and production
equipment,
including (i) rigs and parts of rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and equipment purchased
for lease; but
excluding motor vehicles required to be registered under the Illinois
Vehicle Code.
(11) Photoprocessing machinery and equipment, including repair and
replacement parts, both new and used, including that manufactured on
special order, certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and equipment
purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including
equipment
purchased for lease, but excluding motor vehicles required to be registered
under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(13) Beginning January 1, 1992 and through June 30, 2016, food for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks and food that
has been prepared for immediate consumption) and prescription and
non-prescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use,
when purchased for use by a person receiving medical assistance under
Article V of the Illinois Public Aid Code who resides in a licensed
long-term care facility, as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(14) Semen used for artificial insemination of livestock for direct
agricultural production.
(15) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (15) is exempt from the provisions of Section 3-55, and the exemption provided for under this item (15) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88)
for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(16) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a
hospital
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a
lease of one year or longer executed or in effect at the time of the purchase,
to a governmental body
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(18) Beginning with taxable years ending on or after December
31, 1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(20) Beginning July 1, 1999, game or game birds sold at a "game breeding
and
hunting preserve area" as that term is used
in the
Wildlife Code. This paragraph is exempt from the provisions
of
Section 3-55.
(21) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois Vehicle Code, that is donated to a corporation, limited liability
company, society, association, foundation, or institution that is determined by
the Department to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation, limited liability
company, society, association, foundation, or institution organized and
operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(22) Beginning January 1, 2000, personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children. This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity. This paragraph is exempt
from the provisions
of Section 3-55.
(23) Beginning January 1, 2000
and through December 31, 2001, new or used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for
machines used in commercial, coin-operated amusement
and vending business if a use or occupation tax is paid on the gross receipts
derived from
the use of the commercial, coin-operated amusement and vending machines.
This paragraph is exempt from the provisions of Section 3-55.
(24) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. This paragraph is exempt from the provisions of
Section 3-55.
(25) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
personal property sold to a lessor who
leases the property, under a lease of one year or longer executed or in effect
at the time of the purchase, to a governmental body that has been issued an
active tax exemption identification number by the Department under Section 1g
of the Retailers' Occupation Tax Act. This paragraph is exempt from the
provisions of Section 3-55.
(26) Beginning on January 1, 2002 and through June 30, 2016, tangible personal property
purchased
from an Illinois retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property in Illinois,
temporarily store the property in Illinois (i) for the purpose of subsequently
transporting it outside this State for use or consumption thereafter solely
outside this State or (ii) for the purpose of being processed, fabricated, or
manufactured into, attached to, or incorporated into other tangible personal
property to be transported outside this State and thereafter used or consumed
solely outside this State. The Director of Revenue shall, pursuant to rules
adopted in accordance with the Illinois Administrative Procedure Act, issue a
permit to any taxpayer in good standing with the Department who is eligible for
the exemption under this paragraph (26). The permit issued under
this paragraph (26) shall authorize the holder, to the extent and
in the manner specified in the rules adopted under this Act, to purchase
tangible personal property from a retailer exempt from the taxes imposed by
this Act. Taxpayers shall maintain all necessary books and records to
substantiate the use and consumption of all such tangible personal property
outside of the State of Illinois.
(27) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-55.
(28) Tangible personal property sold to a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall. This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code. This paragraph is exempt from the provisions of Section 3-55. (29) Beginning January 1, 2010 and continuing through December 31, 2029, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft. However, until January 1, 2024, this exemption excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. Beginning January 1, 2010 and continuing through December 31, 2023, this exemption applies only to the transfer of qualifying tangible personal property incident to the modification, refurbishment, completion, replacement, repair, or maintenance of an aircraft by persons who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. From January 1, 2024 through December 31, 2029, this exemption applies only to the use of qualifying tangible personal property by: (A) persons who modify, refurbish, complete, repair, replace, or maintain aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations; and (B) persons who engage in the modification, replacement, repair, and maintenance of aircraft engines or power plants without regard to whether or not those persons meet the qualifications of item (A). The changes made to this paragraph (29) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (29) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629). (30) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups. (31) Tangible personal property transferred to a purchaser who is exempt from tax by operation of federal law. This paragraph is exempt from the provisions of Section 3-55. (32) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant. Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified. The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (32) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois. For the purposes of this item (32): "Data center" means a building or a series of |
| buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
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"Qualified tangible personal property" means:
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| electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center. The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
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This item (32) is exempt from the provisions of Section 3-55.
(33) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (33) is exempt from the provisions of Section 3-55. As used in this item (33):
"Breast pump" means an electrically controlled or
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| manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
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"Breast pump collection and storage supplies" means
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| items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
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"Breast pump collection and storage supplies"
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| includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
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"Breast pump collection and storage supplies" does
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| not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
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"Breast pump kit" means a kit that: (1) contains no
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| more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
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(34) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act. This item (34) is exempt from the provisions of Section 3-55.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section 5-15, eff. 6-7-23.)
(Text of Section from P.A. 103-9, Article 15, Section 15-15)
Sec. 3-5. Exemptions. The following tangible personal property is
exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society, association,
foundation, institution, or organization, other than a limited liability
company, that is organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the personal property
was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a not-for-profit Illinois county fair
association for use in conducting, operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit
arts or cultural organization that establishes, by proof required by the
Department by
rule, that it has received an exemption under Section 501(c)(3) of the
Internal Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services. These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Legal tender, currency, medallions, or gold or silver coinage
issued by the State of Illinois, the government of the United States of
America, or the government of any foreign country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and
replacement parts, both new and used, and including that manufactured on
special order or purchased for lease, certified by the purchaser to be used
primarily for graphic arts production.
Equipment includes chemicals or chemicals acting as catalysts but only if
the
chemicals or chemicals acting as catalysts effect a direct and immediate change
upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student organization
affiliated with an elementary or secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for production agriculture or State or federal agricultural
programs, including individual replacement parts for the machinery and
equipment, including machinery and equipment purchased for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but
excluding other motor vehicles required to be registered under the Illinois
Vehicle
Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (7).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to,
soil testing sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and activities such as, but
not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals.
Beginning on January 1, 2024, farm machinery and equipment also includes electrical power generation equipment used primarily for production agriculture.
This item (7) is exempt
from the provisions of
Section 3-55.
(8) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment,
or storage in the conduct of its business as an air common carrier, for
a flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of food and
beverages, to the extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service charge is imposed.
(10) Until July 1, 2003, oil field exploration, drilling, and production
equipment,
including (i) rigs and parts of rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and equipment purchased
for lease; but
excluding motor vehicles required to be registered under the Illinois
Vehicle Code.
(11) Photoprocessing machinery and equipment, including repair and
replacement parts, both new and used, including that manufactured on
special order, certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and equipment
purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including
equipment
purchased for lease, but excluding motor vehicles required to be registered
under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(13) Beginning January 1, 1992 and through June 30, 2016, food for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks and food that
has been prepared for immediate consumption) and prescription and
non-prescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use,
when purchased for use by a person receiving medical assistance under
Article V of the Illinois Public Aid Code who resides in a licensed
long-term care facility, as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(14) Semen used for artificial insemination of livestock for direct
agricultural production.
(15) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (15) is exempt from the provisions of Section 3-55, and the exemption provided for under this item (15) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88)
for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(16) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a
hospital
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a
lease of one year or longer executed or in effect at the time of the purchase,
to a governmental body
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(18) Beginning with taxable years ending on or after December
31, 1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(20) Beginning July 1, 1999, game or game birds sold at a "game breeding
and
hunting preserve area" as that term is used
in the
Wildlife Code. This paragraph is exempt from the provisions
of
Section 3-55.
(21) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois Vehicle Code, that is donated to a corporation, limited liability
company, society, association, foundation, or institution that is determined by
the Department to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation, limited liability
company, society, association, foundation, or institution organized and
operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(22) Beginning January 1, 2000, personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children. This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity. This paragraph is exempt
from the provisions
of Section 3-55.
(23) Beginning January 1, 2000
and through December 31, 2001, new or used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for
machines used in commercial, coin-operated amusement
and vending business if a use or occupation tax is paid on the gross receipts
derived from
the use of the commercial, coin-operated amusement and vending machines.
This paragraph is exempt from the provisions of Section 3-55.
(24) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. This paragraph is exempt from the provisions of
Section 3-55.
(25) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
personal property sold to a lessor who
leases the property, under a lease of one year or longer executed or in effect
at the time of the purchase, to a governmental body that has been issued an
active tax exemption identification number by the Department under Section 1g
of the Retailers' Occupation Tax Act. This paragraph is exempt from the
provisions of Section 3-55.
(26) Beginning on January 1, 2002 and through June 30, 2016, tangible personal property
purchased
from an Illinois retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property in Illinois,
temporarily store the property in Illinois (i) for the purpose of subsequently
transporting it outside this State for use or consumption thereafter solely
outside this State or (ii) for the purpose of being processed, fabricated, or
manufactured into, attached to, or incorporated into other tangible personal
property to be transported outside this State and thereafter used or consumed
solely outside this State. The Director of Revenue shall, pursuant to rules
adopted in accordance with the Illinois Administrative Procedure Act, issue a
permit to any taxpayer in good standing with the Department who is eligible for
the exemption under this paragraph (26). The permit issued under
this paragraph (26) shall authorize the holder, to the extent and
in the manner specified in the rules adopted under this Act, to purchase
tangible personal property from a retailer exempt from the taxes imposed by
this Act. Taxpayers shall maintain all necessary books and records to
substantiate the use and consumption of all such tangible personal property
outside of the State of Illinois.
(27) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-55.
(28) Tangible personal property sold to a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall. This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code. This paragraph is exempt from the provisions of Section 3-55.
(29) Beginning January 1, 2010 and continuing through December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the transfer of qualifying tangible personal property incident to the modification, refurbishment, completion, replacement, repair, or maintenance of an aircraft by persons who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (29) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (29) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(30) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups.
(31) Tangible personal property transferred to a purchaser who is exempt from tax by operation of federal law. This paragraph is exempt from the provisions of Section 3-55.
(32) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant. Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (32) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (32):
"Data center" means a building or a series of
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| buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
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"Qualified tangible personal property" means:
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| electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center. The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
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This item (32) is exempt from the provisions of Section 3-55.
(33) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (33) is exempt from the provisions of Section 3-55. As used in this item (33):
"Breast pump" means an electrically controlled or
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| manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
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"Breast pump collection and storage supplies" means
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| items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
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"Breast pump collection and storage supplies"
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| includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
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"Breast pump collection and storage supplies" does
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| not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
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"Breast pump kit" means a kit that: (1) contains no
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| more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
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(34) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act. This item (34) is exempt from the provisions of Section 3-55.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 15, Section 15-15, eff. 6-7-23.)
(Text of Section from P.A. 103-154)
Sec. 3-5. Exemptions. The following tangible personal property is
exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society, association,
foundation, institution, or organization, other than a limited liability
company, that is organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the personal property
was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a not-for-profit Illinois county fair
association for use in conducting, operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit
arts or cultural organization that establishes, by proof required by the
Department by
rule, that it has received an exemption under Section 501(c)(3) of the
Internal Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services. These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Legal tender, currency, medallions, or gold or silver coinage
issued by the State of Illinois, the government of the United States of
America, or the government of any foreign country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and
replacement parts, both new and used, and including that manufactured on
special order or purchased for lease, certified by the purchaser to be used
primarily for graphic arts production.
Equipment includes chemicals or chemicals acting as catalysts but only if
the
chemicals or chemicals acting as catalysts effect a direct and immediate change
upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student organization
affiliated with an elementary or secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for production agriculture or State or federal agricultural
programs, including individual replacement parts for the machinery and
equipment, including machinery and equipment purchased for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but
excluding other motor vehicles required to be registered under the Illinois
Vehicle
Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (7).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to,
soil testing sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and activities such as, but
not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals. This item (7) is exempt
from the provisions of
Section 3-55.
(8) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment,
or storage in the conduct of its business as an air common carrier, for
a flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of food and
beverages, to the extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service charge is imposed.
(10) Until July 1, 2003, oil field exploration, drilling, and production
equipment,
including (i) rigs and parts of rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and equipment purchased
for lease; but
excluding motor vehicles required to be registered under the Illinois
Vehicle Code.
(11) Photoprocessing machinery and equipment, including repair and
replacement parts, both new and used, including that manufactured on
special order, certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and equipment
purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including
equipment
purchased for lease, but excluding motor vehicles required to be registered
under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(13) Beginning January 1, 1992 and through June 30, 2016, food for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks and food that
has been prepared for immediate consumption) and prescription and
non-prescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use,
when purchased for use by a person receiving medical assistance under
Article V of the Illinois Public Aid Code who resides in a licensed
long-term care facility, as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(14) Semen used for artificial insemination of livestock for direct
agricultural production.
(15) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (15) is exempt from the provisions of Section 3-55, and the exemption provided for under this item (15) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88)
for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(16) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a
hospital
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a
lease of one year or longer executed or in effect at the time of the purchase,
to a governmental body
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(18) Beginning with taxable years ending on or after December
31, 1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(20) Beginning July 1, 1999, game or game birds sold at a "game breeding
and
hunting preserve area" as that term is used
in the
Wildlife Code. This paragraph is exempt from the provisions
of
Section 3-55.
(21) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois Vehicle Code, that is donated to a corporation, limited liability
company, society, association, foundation, or institution that is determined by
the Department to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation, limited liability
company, society, association, foundation, or institution organized and
operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(22) Beginning January 1, 2000, personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children. This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity. This paragraph is exempt
from the provisions
of Section 3-55.
(23) Beginning January 1, 2000
and through December 31, 2001, new or used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for
machines used in commercial, coin-operated amusement
and vending business if a use or occupation tax is paid on the gross receipts
derived from
the use of the commercial, coin-operated amusement and vending machines.
This paragraph is exempt from the provisions of Section 3-55.
(24) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. This paragraph is exempt from the provisions of
Section 3-55.
(25) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
personal property sold to a lessor who
leases the property, under a lease of one year or longer executed or in effect
at the time of the purchase, to a governmental body that has been issued an
active tax exemption identification number by the Department under Section 1g
of the Retailers' Occupation Tax Act. This paragraph is exempt from the
provisions of Section 3-55.
(26) Beginning on January 1, 2002 and through June 30, 2016, tangible personal property
purchased
from an Illinois retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property in Illinois,
temporarily store the property in Illinois (i) for the purpose of subsequently
transporting it outside this State for use or consumption thereafter solely
outside this State or (ii) for the purpose of being processed, fabricated, or
manufactured into, attached to, or incorporated into other tangible personal
property to be transported outside this State and thereafter used or consumed
solely outside this State. The Director of Revenue shall, pursuant to rules
adopted in accordance with the Illinois Administrative Procedure Act, issue a
permit to any taxpayer in good standing with the Department who is eligible for
the exemption under this paragraph (26). The permit issued under
this paragraph (26) shall authorize the holder, to the extent and
in the manner specified in the rules adopted under this Act, to purchase
tangible personal property from a retailer exempt from the taxes imposed by
this Act. Taxpayers shall maintain all necessary books and records to
substantiate the use and consumption of all such tangible personal property
outside of the State of Illinois.
(27) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-55.
(28) Tangible personal property sold to a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall. This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code. This paragraph is exempt from the provisions of Section 3-55.
(29) Beginning January 1, 2010 and continuing through December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the transfer of qualifying tangible personal property incident to the modification, refurbishment, completion, replacement, repair, or maintenance of an aircraft by persons who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (29) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (29) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(30) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups.
(31) Tangible personal property transferred to a purchaser who is exempt from tax by operation of federal law. This paragraph is exempt from the provisions of Section 3-55.
(32) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant. Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (32) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (32):
"Data center" means a building or a series of
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| buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
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|
"Qualified tangible personal property" means:
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| electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center. The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
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This item (32) is exempt from the provisions of Section 3-55.
(33) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (33) is exempt from the provisions of Section 3-55. As used in this item (33):
"Breast pump" means an electrically controlled or
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| manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
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"Breast pump collection and storage supplies" means
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| items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
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"Breast pump collection and storage supplies"
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| includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
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"Breast pump collection and storage supplies" does
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| not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
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"Breast pump kit" means a kit that: (1) contains no
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| more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
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(34) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act. This item (34) is exempt from the provisions of Section 3-55.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-154, eff. 6-30-23.)
(Text of Section from P.A. 103-384)
Sec. 3-5. Exemptions. The following tangible personal property is
exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society, association,
foundation, institution, or organization, other than a limited liability
company, that is organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the personal property
was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a not-for-profit Illinois county fair
association for use in conducting, operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit
arts or cultural organization that establishes, by proof required by the
Department by
rule, that it has received an exemption under Section 501(c)(3) of the
Internal Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services. These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Legal tender, currency, medallions, or gold or silver coinage
issued by the State of Illinois, the government of the United States of
America, or the government of any foreign country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and
replacement parts, both new and used, and including that manufactured on
special order or purchased for lease, certified by the purchaser to be used
primarily for graphic arts production.
Equipment includes chemicals or chemicals acting as catalysts but only if
the
chemicals or chemicals acting as catalysts effect a direct and immediate change
upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student organization
affiliated with an elementary or secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for production agriculture or State or federal agricultural
programs, including individual replacement parts for the machinery and
equipment, including machinery and equipment purchased for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but
excluding other motor vehicles required to be registered under the Illinois
Vehicle
Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (7).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to,
soil testing sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and activities such as, but
not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals. This item (7) is exempt
from the provisions of
Section 3-55.
(8) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment,
or storage in the conduct of its business as an air common carrier, for
a flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of food and
beverages, to the extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service charge is imposed.
(10) Until July 1, 2003, oil field exploration, drilling, and production
equipment,
including (i) rigs and parts of rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and equipment purchased
for lease; but
excluding motor vehicles required to be registered under the Illinois
Vehicle Code.
(11) Photoprocessing machinery and equipment, including repair and
replacement parts, both new and used, including that manufactured on
special order, certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and equipment
purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including
equipment
purchased for lease, but excluding motor vehicles required to be registered
under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(13) Beginning January 1, 1992 and through June 30, 2016, food for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks and food that
has been prepared for immediate consumption) and prescription and
non-prescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use,
when purchased for use by a person receiving medical assistance under
Article V of the Illinois Public Aid Code who resides in a licensed
long-term care facility, as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(14) Semen used for artificial insemination of livestock for direct
agricultural production.
(15) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (15) is exempt from the provisions of Section 3-55, and the exemption provided for under this item (15) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88)
for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(16) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a
hospital
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a
lease of one year or longer executed or in effect at the time of the purchase,
to a governmental body
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(18) Beginning with taxable years ending on or after December
31, 1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(20) Beginning July 1, 1999, game or game birds sold at a "game breeding
and
hunting preserve area" as that term is used
in the
Wildlife Code. This paragraph is exempt from the provisions
of
Section 3-55.
(21) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois Vehicle Code, that is donated to a corporation, limited liability
company, society, association, foundation, or institution that is determined by
the Department to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation, limited liability
company, society, association, foundation, or institution organized and
operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(22) Beginning January 1, 2000, personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children. This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity. This paragraph is exempt
from the provisions
of Section 3-55.
(23) Beginning January 1, 2000
and through December 31, 2001, new or used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for
machines used in commercial, coin-operated amusement
and vending business if a use or occupation tax is paid on the gross receipts
derived from
the use of the commercial, coin-operated amusement and vending machines.
This paragraph is exempt from the provisions of Section 3-55.
(24) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. This paragraph is exempt from the provisions of
Section 3-55.
(25) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
personal property sold to a lessor who
leases the property, under a lease of one year or longer executed or in effect
at the time of the purchase, to a governmental body that has been issued an
active tax exemption identification number by the Department under Section 1g
of the Retailers' Occupation Tax Act. This paragraph is exempt from the
provisions of Section 3-55.
(26) Beginning on January 1, 2002 and through June 30, 2016, tangible personal property
purchased
from an Illinois retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property in Illinois,
temporarily store the property in Illinois (i) for the purpose of subsequently
transporting it outside this State for use or consumption thereafter solely
outside this State or (ii) for the purpose of being processed, fabricated, or
manufactured into, attached to, or incorporated into other tangible personal
property to be transported outside this State and thereafter used or consumed
solely outside this State. The Director of Revenue shall, pursuant to rules
adopted in accordance with the Illinois Administrative Procedure Act, issue a
permit to any taxpayer in good standing with the Department who is eligible for
the exemption under this paragraph (26). The permit issued under
this paragraph (26) shall authorize the holder, to the extent and
in the manner specified in the rules adopted under this Act, to purchase
tangible personal property from a retailer exempt from the taxes imposed by
this Act. Taxpayers shall maintain all necessary books and records to
substantiate the use and consumption of all such tangible personal property
outside of the State of Illinois.
(27) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-55.
(28) Tangible personal property sold to a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall. This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code. This paragraph is exempt from the provisions of Section 3-55.
(29) Beginning January 1, 2010 and continuing through December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the transfer of qualifying tangible personal property incident to the modification, refurbishment, completion, replacement, repair, or maintenance of an aircraft by persons who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (29) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (29) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(30) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups.
(31) Tangible personal property transferred to a purchaser who is exempt from tax by operation of federal law. This paragraph is exempt from the provisions of Section 3-55.
(32) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant. Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (32) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (32):
"Data center" means a building or a series of
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| buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
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"Qualified tangible personal property" means:
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| electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center. The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
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This item (32) is exempt from the provisions of Section 3-55.
(33) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (33) is exempt from the provisions of Section 3-55. As used in this item (33):
"Breast pump" means an electrically controlled or
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| manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
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|
"Breast pump collection and storage supplies" means
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| items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
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|
"Breast pump collection and storage supplies"
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| includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
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|
"Breast pump collection and storage supplies" does
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| not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
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"Breast pump kit" means a kit that: (1) contains no
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| more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
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(34) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act. This item (34) is exempt from the provisions of Section 3-55.
(35) Beginning on January 1, 2024, tangible personal property purchased by an active duty member of the armed forces of the United States who presents valid military identification and purchases the property using a form of payment where the federal government is the payor. The member of the armed forces must complete, at the point of sale, a form prescribed by the Department of Revenue documenting that the transaction is eligible for the exemption under this paragraph. Retailers must keep the form as documentation of the exemption in their records for a period of not less than 6 years. "Armed forces of the United States" means the United States Army, Navy, Air Force, Marine Corps, or Coast Guard. This paragraph is exempt from the provisions of Section 3-55.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-384, eff. 1-1-24.)
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(35 ILCS 115/3-8) (Text of Section from P.A. 102-700) Sec. 3-8. Hospital exemption. (a) Tangible personal property sold to or used by a hospital owner that owns one or more hospitals licensed under the Hospital Licensing Act or operated under the University of Illinois Hospital Act, or a hospital affiliate that is not already exempt under another provision of this Act and meets the criteria for an exemption under this Section, is exempt from taxation under this Act. (b) A hospital owner or hospital affiliate satisfies the conditions for an exemption under this Section if the value of qualified services or activities listed in subsection (c) of this Section for the hospital year equals or exceeds the relevant hospital entity's estimated property tax liability, without regard to any property tax exemption granted under Section 15-86 of the Property Tax Code, for the calendar year in which exemption or renewal of exemption is sought. For purposes of making the calculations required by this subsection (b), if the relevant hospital entity is a hospital owner that owns more than one hospital, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities relating to the hospital that includes the subject property, and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to the properties comprising that hospital. In the case of a multi-state hospital system or hospital affiliate, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities that occur in Illinois and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to its property located in Illinois. (c) The following services and activities shall be considered for purposes of making the calculations required by subsection (b): (1) Charity care. Free or discounted services |
| provided pursuant to the relevant hospital entity's financial assistance policy, measured at cost, including discounts provided under the Hospital Uninsured Patient Discount Act.
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(2) Health services to low-income and underserved
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| individuals. Other unreimbursed costs of the relevant hospital entity for providing without charge, paying for, or subsidizing goods, activities, or services for the purpose of addressing the health of low-income or underserved individuals. Those activities or services may include, but are not limited to: financial or in-kind support to affiliated or unaffiliated hospitals, hospital affiliates, community clinics, or programs that treat low-income or underserved individuals; paying for or subsidizing health care professionals who care for low-income or underserved individuals; providing or subsidizing outreach or educational services to low-income or underserved individuals for disease management and prevention; free or subsidized goods, supplies, or services needed by low-income or underserved individuals because of their medical condition; and prenatal or childbirth outreach to low-income or underserved persons.
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(3) Subsidy of State or local governments. Direct or
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| indirect financial or in-kind subsidies of State or local governments by the relevant hospital entity that pay for or subsidize activities or programs related to health care for low-income or underserved individuals.
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(4) Support for State health care programs for
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| low-income individuals. At the election of the hospital applicant for each applicable year, either (A) 10% of payments to the relevant hospital entity and any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) under Medicaid or other means-tested programs, including, but not limited to, General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program or (B) the amount of subsidy provided by the relevant hospital entity and any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) to State or local government in treating Medicaid recipients and recipients of means-tested programs, including but not limited to General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program. The amount of subsidy for purposes of this item (4) is calculated in the same manner as unreimbursed costs are calculated for Medicaid and other means-tested government programs in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly.
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(5) Dual-eligible subsidy. The amount of subsidy
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| provided to government by treating dual-eligible Medicare/Medicaid patients. The amount of subsidy for purposes of this item (5) is calculated by multiplying the relevant hospital entity's unreimbursed costs for Medicare, calculated in the same manner as determined in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly, by the relevant hospital entity's ratio of dual-eligible patients to total Medicare patients.
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(6) Relief of the burden of government related to
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| health care. Except to the extent otherwise taken into account in this subsection, the portion of unreimbursed costs of the relevant hospital entity attributable to providing, paying for, or subsidizing goods, activities, or services that relieve the burden of government related to health care for low-income individuals. Such activities or services shall include, but are not limited to, providing emergency, trauma, burn, neonatal, psychiatric, rehabilitation, or other special services; providing medical education; and conducting medical research or training of health care professionals. The portion of those unreimbursed costs attributable to benefiting low-income individuals shall be determined using the ratio calculated by adding the relevant hospital entity's costs attributable to charity care, Medicaid, other means-tested government programs, Medicare patients with disabilities under age 65, and dual-eligible Medicare/Medicaid patients and dividing that total by the relevant hospital entity's total costs. Such costs for the numerator and denominator shall be determined by multiplying gross charges by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I). In the case of emergency services, the ratio shall be calculated using costs (gross charges multiplied by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I)) of patients treated in the relevant hospital entity's emergency department.
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(7) Any other activity by the relevant hospital
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| entity that the Department determines relieves the burden of government or addresses the health of low-income or underserved individuals.
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(d) The hospital applicant shall include information in its exemption application establishing that it satisfies the requirements of subsection (b). For purposes of making the calculations required by subsection (b), the hospital applicant may for each year elect to use either (1) the value of the services or activities listed in subsection (e) for the hospital year or (2) the average value of those services or activities for the 3 fiscal years ending with the hospital year. If the relevant hospital entity has been in operation for less than 3 completed fiscal years, then the latter calculation, if elected, shall be performed on a pro rata basis.
(e) For purposes of making the calculations required by this Section:
(1) particular services or activities eligible for
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| consideration under any of the paragraphs (1) through (7) of subsection (c) may not be counted under more than one of those paragraphs; and
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(2) the amount of unreimbursed costs and the amount
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| of subsidy shall not be reduced by restricted or unrestricted payments received by the relevant hospital entity as contributions deductible under Section 170(a) of the Internal Revenue Code.
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(f) (Blank).
(g) Estimation of Exempt Property Tax Liability. The estimated property tax liability used for the determination in subsection (b) shall be calculated as follows:
(1) "Estimated property tax liability" means the
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| estimated dollar amount of property tax that would be owed, with respect to the exempt portion of each of the relevant hospital entity's properties that are already fully or partially exempt, or for which an exemption in whole or in part is currently being sought, and then aggregated as applicable, as if the exempt portion of those properties were subject to tax, calculated with respect to each such property by multiplying:
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(A) the lesser of (i) the actual assessed value,
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| if any, of the portion of the property for which an exemption is sought or (ii) an estimated assessed value of the exempt portion of such property as determined in item (2) of this subsection (g), by
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|
(B) the applicable State equalization rate
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| (yielding the equalized assessed value), by
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|
(C) the applicable tax rate.
(2) The estimated assessed value of the exempt
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| portion of the property equals the sum of (i) the estimated fair market value of buildings on the property, as determined in accordance with subparagraphs (A) and (B) of this item (2), multiplied by the applicable assessment factor, and (ii) the estimated assessed value of the land portion of the property, as determined in accordance with subparagraph (C).
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|
(A) The "estimated fair market value of buildings
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| on the property" means the replacement value of any exempt portion of buildings on the property, minus depreciation, determined utilizing the cost replacement method whereby the exempt square footage of all such buildings is multiplied by the replacement cost per square foot for Class A Average building found in the most recent edition of the Marshall & Swift Valuation Services Manual, adjusted by any appropriate current cost and local multipliers.
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|
(B) Depreciation, for purposes of calculating the
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| estimated fair market value of buildings on the property, is applied by utilizing a weighted mean life for the buildings based on original construction and assuming a 40-year life for hospital buildings and the applicable life for other types of buildings as specified in the American Hospital Association publication "Estimated Useful Lives of Depreciable Hospital Assets". In the case of hospital buildings, the remaining life is divided by 40 and this ratio is multiplied by the replacement cost of the buildings to obtain an estimated fair market value of buildings. If a hospital building is older than 35 years, a remaining life of 5 years for residual value is assumed; and if a building is less than 8 years old, a remaining life of 32 years is assumed.
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|
(C) The estimated assessed value of the land
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| portion of the property shall be determined by multiplying (i) the per square foot average of the assessed values of three parcels of land (not including farm land, and excluding the assessed value of the improvements thereon) reasonably comparable to the property, by (ii) the number of square feet comprising the exempt portion of the property's land square footage.
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|
(3) The assessment factor, State equalization rate,
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| and tax rate (including any special factors such as Enterprise Zones) used in calculating the estimated property tax liability shall be for the most recent year that is publicly available from the applicable chief county assessment officer or officers at least 90 days before the end of the hospital year.
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|
(4) The method utilized to calculate estimated
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| property tax liability for purposes of this Section 15-86 shall not be utilized for the actual valuation, assessment, or taxation of property pursuant to the Property Tax Code.
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|
(h) For the purpose of this Section, the following terms shall have the meanings set forth below:
(1) "Hospital" means any institution, place,
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| building, buildings on a campus, or other health care facility located in Illinois that is licensed under the Hospital Licensing Act and has a hospital owner.
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|
(2) "Hospital owner" means a not-for-profit
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| corporation that is the titleholder of a hospital, or the owner of the beneficial interest in an Illinois land trust that is the titleholder of a hospital.
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|
(3) "Hospital affiliate" means any corporation,
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| partnership, limited partnership, joint venture, limited liability company, association or other organization, other than a hospital owner, that directly or indirectly controls, is controlled by, or is under common control with one or more hospital owners and that supports, is supported by, or acts in furtherance of the exempt health care purposes of at least one of those hospital owners' hospitals.
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|
(4) "Hospital system" means a hospital and one or
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| more other hospitals or hospital affiliates related by common control or ownership.
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|
(5) "Control" relating to hospital owners, hospital
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| affiliates, or hospital systems means possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the entity, whether through ownership of assets, membership interest, other voting or governance rights, by contract or otherwise.
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|
(6) "Hospital applicant" means a hospital owner or
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| hospital affiliate that files an application for an exemption or renewal of exemption under this Section.
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|
(7) "Relevant hospital entity" means (A) the hospital
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| owner, in the case of a hospital applicant that is a hospital owner, and (B) at the election of a hospital applicant that is a hospital affiliate, either (i) the hospital affiliate or (ii) the hospital system to which the hospital applicant belongs, including any hospitals or hospital affiliates that are related by common control or ownership.
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|
(8) "Subject property" means property used for the
|
| calculation under subsection (b) of this Section.
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|
(9) "Hospital year" means the fiscal year of the
|
| relevant hospital entity, or the fiscal year of one of the hospital owners in the hospital system if the relevant hospital entity is a hospital system with members with different fiscal years, that ends in the year for which the exemption is sought.
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|
(i) It is the intent of the General Assembly that any exemptions taken, granted, or renewed under this Section prior to the effective date of this amendatory Act of the 100th General Assembly are hereby validated.
(j) It is the intent of the General Assembly that the exemption under this Section applies on a continuous basis. If this amendatory Act of the 102nd General Assembly takes effect after July 1, 2022, any exemptions taken, granted, or renewed under this Section on or after July 1, 2022 and prior to the effective date of this amendatory Act of the 102nd General Assembly are hereby validated.
(k) This Section is exempt from the provisions of Section 3-55.
(Source: P.A. 102-700, eff. 4-19-22.)
(Text of Section from P.A. 102-886)
Sec. 3-8. Hospital exemption.
(a) Until July 1, 2027, tangible personal property sold to or used by a hospital owner that owns one or more hospitals licensed under the Hospital Licensing Act or operated under the University of Illinois Hospital Act, or a hospital affiliate that is not already exempt under another provision of this Act and meets the criteria for an exemption under this Section, is exempt from taxation under this Act.
(b) A hospital owner or hospital affiliate satisfies the conditions for an exemption under this Section if the value of qualified services or activities listed in subsection (c) of this Section for the hospital year equals or exceeds the relevant hospital entity's estimated property tax liability, without regard to any property tax exemption granted under Section 15-86 of the Property Tax Code, for the calendar year in which exemption or renewal of exemption is sought. For purposes of making the calculations required by this subsection (b), if the relevant hospital entity is a hospital owner that owns more than one hospital, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities relating to the hospital that includes the subject property, and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to the properties comprising that hospital. In the case of a multi-state hospital system or hospital affiliate, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities that occur in Illinois and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to its property located in Illinois.
(c) The following services and activities shall be considered for purposes of making the calculations required by subsection (b):
(1) Charity care. Free or discounted services
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| provided pursuant to the relevant hospital entity's financial assistance policy, measured at cost, including discounts provided under the Hospital Uninsured Patient Discount Act.
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|
(2) Health services to low-income and underserved
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| individuals. Other unreimbursed costs of the relevant hospital entity for providing without charge, paying for, or subsidizing goods, activities, or services for the purpose of addressing the health of low-income or underserved individuals. Those activities or services may include, but are not limited to: financial or in-kind support to affiliated or unaffiliated hospitals, hospital affiliates, community clinics, or programs that treat low-income or underserved individuals; paying for or subsidizing health care professionals who care for low-income or underserved individuals; providing or subsidizing outreach or educational services to low-income or underserved individuals for disease management and prevention; free or subsidized goods, supplies, or services needed by low-income or underserved individuals because of their medical condition; and prenatal or childbirth outreach to low-income or underserved persons.
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|
(3) Subsidy of State or local governments. Direct or
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| indirect financial or in-kind subsidies of State or local governments by the relevant hospital entity that pay for or subsidize activities or programs related to health care for low-income or underserved individuals.
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|
(4) Support for State health care programs for
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| low-income individuals. At the election of the hospital applicant for each applicable year, either (A) 10% of payments to the relevant hospital entity and any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) under Medicaid or other means-tested programs, including, but not limited to, General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program or (B) the amount of subsidy provided by the relevant hospital entity and any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) to State or local government in treating Medicaid recipients and recipients of means-tested programs, including but not limited to General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program. The amount of subsidy for purposes of this item (4) is calculated in the same manner as unreimbursed costs are calculated for Medicaid and other means-tested government programs in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly.
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|
(5) Dual-eligible subsidy. The amount of subsidy
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| provided to government by treating dual-eligible Medicare/Medicaid patients. The amount of subsidy for purposes of this item (5) is calculated by multiplying the relevant hospital entity's unreimbursed costs for Medicare, calculated in the same manner as determined in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly, by the relevant hospital entity's ratio of dual-eligible patients to total Medicare patients.
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|
(6) Relief of the burden of government related to
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| health care. Except to the extent otherwise taken into account in this subsection, the portion of unreimbursed costs of the relevant hospital entity attributable to providing, paying for, or subsidizing goods, activities, or services that relieve the burden of government related to health care for low-income individuals. Such activities or services shall include, but are not limited to, providing emergency, trauma, burn, neonatal, psychiatric, rehabilitation, or other special services; providing medical education; and conducting medical research or training of health care professionals. The portion of those unreimbursed costs attributable to benefiting low-income individuals shall be determined using the ratio calculated by adding the relevant hospital entity's costs attributable to charity care, Medicaid, other means-tested government programs, Medicare patients with disabilities under age 65, and dual-eligible Medicare/Medicaid patients and dividing that total by the relevant hospital entity's total costs. Such costs for the numerator and denominator shall be determined by multiplying gross charges by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I). In the case of emergency services, the ratio shall be calculated using costs (gross charges multiplied by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I)) of patients treated in the relevant hospital entity's emergency department.
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|
(7) Any other activity by the relevant hospital
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| entity that the Department determines relieves the burden of government or addresses the health of low-income or underserved individuals.
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|
(d) The hospital applicant shall include information in its exemption application establishing that it satisfies the requirements of subsection (b). For purposes of making the calculations required by subsection (b), the hospital applicant may for each year elect to use either (1) the value of the services or activities listed in subsection (e) for the hospital year or (2) the average value of those services or activities for the 3 fiscal years ending with the hospital year. If the relevant hospital entity has been in operation for less than 3 completed fiscal years, then the latter calculation, if elected, shall be performed on a pro rata basis.
(e) For purposes of making the calculations required by this Section:
(1) particular services or activities eligible for
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| consideration under any of the paragraphs (1) through (7) of subsection (c) may not be counted under more than one of those paragraphs; and
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|
(2) the amount of unreimbursed costs and the amount
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| of subsidy shall not be reduced by restricted or unrestricted payments received by the relevant hospital entity as contributions deductible under Section 170(a) of the Internal Revenue Code.
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|
(f) (Blank).
(g) Estimation of Exempt Property Tax Liability. The estimated property tax liability used for the determination in subsection (b) shall be calculated as follows:
(1) "Estimated property tax liability" means the
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| estimated dollar amount of property tax that would be owed, with respect to the exempt portion of each of the relevant hospital entity's properties that are already fully or partially exempt, or for which an exemption in whole or in part is currently being sought, and then aggregated as applicable, as if the exempt portion of those properties were subject to tax, calculated with respect to each such property by multiplying:
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|
(A) the lesser of (i) the actual assessed value,
|
| if any, of the portion of the property for which an exemption is sought or (ii) an estimated assessed value of the exempt portion of such property as determined in item (2) of this subsection (g), by
|
|
(B) the applicable State equalization rate
|
| (yielding the equalized assessed value), by
|
|
(C) the applicable tax rate.
(2) The estimated assessed value of the exempt
|
| portion of the property equals the sum of (i) the estimated fair market value of buildings on the property, as determined in accordance with subparagraphs (A) and (B) of this item (2), multiplied by the applicable assessment factor, and (ii) the estimated assessed value of the land portion of the property, as determined in accordance with subparagraph (C).
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|
(A) The "estimated fair market value of buildings
|
| on the property" means the replacement value of any exempt portion of buildings on the property, minus depreciation, determined utilizing the cost replacement method whereby the exempt square footage of all such buildings is multiplied by the replacement cost per square foot for Class A Average building found in the most recent edition of the Marshall & Swift Valuation Services Manual, adjusted by any appropriate current cost and local multipliers.
|
|
(B) Depreciation, for purposes of calculating the
|
| estimated fair market value of buildings on the property, is applied by utilizing a weighted mean life for the buildings based on original construction and assuming a 40-year life for hospital buildings and the applicable life for other types of buildings as specified in the American Hospital Association publication "Estimated Useful Lives of Depreciable Hospital Assets". In the case of hospital buildings, the remaining life is divided by 40 and this ratio is multiplied by the replacement cost of the buildings to obtain an estimated fair market value of buildings. If a hospital building is older than 35 years, a remaining life of 5 years for residual value is assumed; and if a building is less than 8 years old, a remaining life of 32 years is assumed.
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|
(C) The estimated assessed value of the land
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| portion of the property shall be determined by multiplying (i) the per square foot average of the assessed values of three parcels of land (not including farm land, and excluding the assessed value of the improvements thereon) reasonably comparable to the property, by (ii) the number of square feet comprising the exempt portion of the property's land square footage.
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|
(3) The assessment factor, State equalization rate,
|
| and tax rate (including any special factors such as Enterprise Zones) used in calculating the estimated property tax liability shall be for the most recent year that is publicly available from the applicable chief county assessment officer or officers at least 90 days before the end of the hospital year.
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|
(4) The method utilized to calculate estimated
|
| property tax liability for purposes of this Section 15-86 shall not be utilized for the actual valuation, assessment, or taxation of property pursuant to the Property Tax Code.
|
|
(h) For the purpose of this Section, the following terms shall have the meanings set forth below:
(1) "Hospital" means any institution, place,
|
| building, buildings on a campus, or other health care facility located in Illinois that is licensed under the Hospital Licensing Act and has a hospital owner.
|
|
(2) "Hospital owner" means a not-for-profit
|
| corporation that is the titleholder of a hospital, or the owner of the beneficial interest in an Illinois land trust that is the titleholder of a hospital.
|
|
(3) "Hospital affiliate" means any corporation,
|
| partnership, limited partnership, joint venture, limited liability company, association or other organization, other than a hospital owner, that directly or indirectly controls, is controlled by, or is under common control with one or more hospital owners and that supports, is supported by, or acts in furtherance of the exempt health care purposes of at least one of those hospital owners' hospitals.
|
|
(4) "Hospital system" means a hospital and one or
|
| more other hospitals or hospital affiliates related by common control or ownership.
|
|
(5) "Control" relating to hospital owners, hospital
|
| affiliates, or hospital systems means possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the entity, whether through ownership of assets, membership interest, other voting or governance rights, by contract or otherwise.
|
|
(6) "Hospital applicant" means a hospital owner or
|
| hospital affiliate that files an application for an exemption or renewal of exemption under this Section.
|
|
(7) "Relevant hospital entity" means (A) the hospital
|
| owner, in the case of a hospital applicant that is a hospital owner, and (B) at the election of a hospital applicant that is a hospital affiliate, either (i) the hospital affiliate or (ii) the hospital system to which the hospital applicant belongs, including any hospitals or hospital affiliates that are related by common control or ownership.
|
|
(8) "Subject property" means property used for the
|
| calculation under subsection (b) of this Section.
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|
(9) "Hospital year" means the fiscal year of the
|
| relevant hospital entity, or the fiscal year of one of the hospital owners in the hospital system if the relevant hospital entity is a hospital system with members with different fiscal years, that ends in the year for which the exemption is sought.
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|
(i) It is the intent of the General Assembly that any exemptions taken, granted, or renewed under this Section prior to the effective date of this amendatory Act of the 100th General Assembly are hereby validated.
(j) It is the intent of the General Assembly that the exemption under this Section applies on a continuous basis. If this amendatory Act of the 102nd General Assembly takes effect after July 1, 2022, any exemptions taken, granted, or renewed under this Section on or after July 1, 2022 and prior to the effective date of this amendatory Act of the 102nd General Assembly are hereby validated.
(Source: P.A. 102-886, eff. 5-17-22 .)
|
(35 ILCS 115/9) (from Ch. 120, par. 439.109)
(Text of Section from P.A. 103-9)
Sec. 9. Each serviceman required or authorized to collect the tax
herein imposed shall pay to the Department the amount of such tax at the
time when he is required to file his return for the period during which
such tax was collectible, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or
$5 per calendar year, whichever is greater, which is allowed to reimburse
the serviceman for expenses incurred in collecting the tax, keeping
records, preparing and filing returns, remitting the tax and supplying data
to the Department on request. When determining the discount allowed under this Section, servicemen shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for servicemen whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final. Where such tangible personal property is sold under a conditional
sales contract, or under any other form of sale wherein the payment of
the principal sum, or a part thereof, is extended beyond the close of
the period for which the return is filed, the serviceman, in collecting
the tax may collect, for each tax return period, only the tax applicable
to the part of the selling price actually received during such tax return
period. Except as provided hereinafter in this Section, on or before the twentieth
day of each calendar month, such serviceman shall file a
return for the preceding calendar month in accordance with reasonable
rules and regulations to be promulgated by the Department of Revenue.
Such return shall be filed on a form prescribed by the Department and
shall contain such information as the Department may reasonably require. The return shall include the gross receipts which were received during the preceding calendar month or quarter on the following items upon which tax would have been due but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly: (i) food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption); and (ii) food prepared for immediate consumption and transferred incident to a sale of service subject to this Act or the Service Use Tax Act by an entity licensed under the Hospital Licensing Act, the Nursing Home Care Act, the Assisted Living and Shared Housing Act, the ID/DD Community Care Act, the MC/DD Act, the Specialized Mental Health Rehabilitation Act of 2013, or the Child Care Act of 1969, or an entity that holds a permit issued pursuant to the Life Care Facilities Act. The return shall also include the amount of tax that would have been due on the items listed in the previous sentence but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly. On and after January 1, 2018, with respect to servicemen whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically. Servicemen who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement. The Department may require returns to be filed on a quarterly basis.
If so required, a return for each calendar quarter shall be filed on or
before the twentieth day of the calendar month following the end of such
calendar quarter. The taxpayer shall also file a return with the
Department for each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month, stating: 1. The name of the seller; 2. The address of the principal place of business |
| from which he engages in business as a serviceman in this State;
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|
3. The total amount of taxable receipts received by
|
| him during the preceding calendar month, including receipts from charge and time sales, but less all deductions allowed by law;
|
|
4. The amount of credit provided in Section 2d of
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|
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the
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|
Each serviceman required or authorized to collect the tax herein imposed on aviation fuel acquired as an incident to the purchase of a service in this State during the preceding calendar month shall, instead of reporting and paying tax as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return. The requirements related to the return shall be as otherwise provided in this Section. Notwithstanding any other provisions of this Act to the contrary, servicemen transferring aviation fuel incident to sales of service shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department. For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.
If a taxpayer fails to sign a return within 30 days after the proper notice
and demand for signature by the Department, the return shall be considered
valid and any amount shown to be due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the contrary, servicemen subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.
Prior to October 1, 2003, and on and after September 1, 2004 a serviceman may accept a Manufacturer's
Purchase Credit certification
from a purchaser in satisfaction
of Service Use Tax as provided in Section 3-70 of the
Service Use Tax Act if the purchaser provides
the
appropriate
documentation as required by Section 3-70 of the Service Use Tax Act.
A Manufacturer's Purchase Credit certification, accepted prior to October 1,
2003 or on or after September 1, 2004 by a serviceman as
provided in Section 3-70 of the Service Use Tax Act, may be used by that
serviceman to satisfy Service Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject to tax from a
qualifying purchase. A Manufacturer's Purchase Credit reported on any
original or amended return
filed under
this Act after October 20, 2003 for reporting periods prior to September 1, 2004 shall be disallowed. Manufacturer's Purchase Credit reported on annual returns due on or after January 1, 2005 will be disallowed for periods prior to September 1, 2004.
No Manufacturer's
Purchase Credit may be used after September 30, 2003 through August 31, 2004 to
satisfy any
tax liability imposed under this Act, including any audit liability.
Beginning on July 1, 2023 and through December 31, 2032, a serviceman may accept a Sustainable Aviation Fuel Purchase Credit certification from an air common carrier-purchaser in satisfaction of Service Use Tax as provided in Section 3-72 of the Service Use Tax Act if the purchaser provides the appropriate documentation as required by Section 3-72 of the Service Use Tax Act. A Sustainable Aviation Fuel Purchase Credit certification accepted by a serviceman in accordance with this paragraph may be used by that serviceman to satisfy service occupation tax liability (but not in satisfaction of penalty or interest) in the amount claimed in the certification, not to exceed 6.25% of the receipts subject to tax from a sale of aviation fuel. In addition, for a sale of aviation fuel to qualify to earn the Sustainable Aviation Fuel Purchase Credit, servicemen must retain in their books and records a certification from the producer of the aviation fuel that the aviation fuel sold by the serviceman and for which a sustainable aviation fuel purchase credit was earned meets the definition of sustainable aviation fuel under Section 3-72 of the Service Use Tax Act. The documentation must include detail sufficient for the Department to determine the number of gallons of sustainable aviation fuel sold.
If the serviceman's average monthly tax liability to
the Department does not exceed $200, the Department may authorize his
returns to be filed on a quarter annual basis, with the return for
January, February and March of a given year being due by April 20 of
such year; with the return for April, May and June of a given year being
due by July 20 of such year; with the return for July, August and
September of a given year being due by October 20 of such year, and with
the return for October, November and December of a given year being due
by January 20 of the following year.
If the serviceman's average monthly tax liability to
the Department does not exceed $50, the Department may authorize his
returns to be filed on an annual basis, with the return for a given year
being due by January 20 of the following year.
Such quarter annual and annual returns, as to form and substance,
shall be subject to the same requirements as monthly returns.
Notwithstanding any other provision in this Act concerning the time within
which a serviceman may file his return, in the case of any serviceman who
ceases to engage in a kind of business which makes him responsible for filing
returns under this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after discontinuing such
business.
Beginning October 1, 1993, a taxpayer who has an average monthly tax
liability of $150,000 or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1, 1994, a taxpayer
who has an average monthly tax liability of $100,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 1995, a taxpayer who has an average monthly tax liability
of $50,000 or more shall make all payments required by rules of the Department
by electronic funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all payments required by
rules of the Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities under this Act, and
under all other State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year. The term "average
monthly tax liability" means
the sum of the taxpayer's liabilities under this Act, and under all other State
and local occupation and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12.
Beginning on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the Department of
Revenue Law shall make all payments required by rules of the Department by
electronic funds transfer.
Before August 1 of each year beginning in 1993, the Department shall
notify all taxpayers required to make payments by electronic funds transfer.
All taxpayers required to make payments by electronic funds transfer shall make
those payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic funds transfer may
make payments by electronic funds transfer with the
permission of the Department.
All taxpayers required to make payment by electronic funds transfer and
any taxpayers authorized to voluntarily make payments by electronic funds
transfer shall make those payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to effectuate a
program of electronic funds transfer and the requirements of this Section.
Where a serviceman collects the tax with respect to the selling price of
tangible personal property which he sells and the purchaser thereafter returns
such tangible personal property and the serviceman refunds the
selling price thereof to the purchaser, such serviceman shall also refund,
to the purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax to the
purchaser, the serviceman may deduct the amount of the tax so refunded by
him to the purchaser from any other Service Occupation Tax, Service Use
Tax, Retailers' Occupation Tax or Use Tax which such serviceman may be
required to pay or remit to the Department, as shown by such return,
provided that the amount of the tax to be deducted shall previously have
been remitted to the Department by such serviceman. If the serviceman shall
not previously have remitted the amount of such tax to the Department,
he shall be entitled to no deduction hereunder upon refunding such tax
to the purchaser.
If experience indicates such action to be practicable, the Department
may prescribe and furnish a combination or joint return which will
enable servicemen, who are required to file returns
hereunder and also under the Retailers' Occupation Tax Act, the Use
Tax Act or the Service Use Tax Act, to furnish all the return
information required by all said Acts on the one form.
Where the serviceman has more than one business
registered with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each
registered business.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund the revenue realized for the
preceding month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall pay into
the County and Mass Transit District Fund 4% of the revenue realized
for the preceding month from the 6.25% general rate on sales of tangible personal property other than aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of motor fuel and
gasohol.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund 16% of the revenue realized for the
preceding month from the 6.25% general rate on transfers of
tangible personal property other than aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund. The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuel Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
Local Government Tax Fund 80% of the net revenue realized for the preceding
month from the 1.25% rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Use Tax Act, the Service Use Tax Act, and the Retailers' Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Use Tax Act, the Service Use Tax Act, and the Retailers' Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, this Act, and the Retailers' Occupation Tax Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department pursuant to
this Act, (a) 1.75% thereof shall be paid into the Build Illinois Fund and
(b) prior to July 1, 1989, 2.2% and on and after July 1, 1989, 3.8% thereof
shall be paid into the Build Illinois Fund; provided, however, that if in
any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required to be paid
into the Build Illinois Fund pursuant to Section 3 of the Retailers'
Occupation Tax Act, Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of 2.2% or 3.8%,
as the case may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall be less than the Annual
Specified Amount (as defined in Section 3 of the Retailers' Occupation Tax
Act), an amount equal to the difference shall be immediately paid into the
Build Illinois Fund from other moneys received by the Department pursuant
to the Tax Acts; and further provided, that if on the last business day of
any month the sum of (1) the Tax Act Amount required to be deposited into
the Build Illinois Account in the Build Illinois Fund during such month and
(2) the amount transferred during such month to the Build Illinois Fund
from the State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the difference
shall be immediately paid into the Build Illinois Fund from other moneys
received by the Department pursuant to the Tax Acts; and, further provided,
that in no event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund pursuant to this
clause (b) for any fiscal year in excess of the greater of (i) the Tax Act
Amount or (ii) the Annual Specified Amount for such fiscal year; and,
further provided, that the amounts payable into the Build Illinois Fund
under this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing Bonds
issued and outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income, to fully
provide, in accordance with such indenture, for the defeasance of or the
payment of the principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be issued thereafter
and all fees and costs payable with respect thereto, all as certified by
the Director of the
Bureau of the Budget (now Governor's Office of Management and Budget). If
on the last business day of
any month in which Bonds are outstanding pursuant to the Build Illinois
Bond Act, the aggregate of the moneys deposited
in the Build Illinois Bond Account in the Build Illinois Fund in such month
shall be less than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond Retirement and
Interest Fund pursuant to Section 13 of the Build Illinois Bond Act, an
amount equal to such deficiency shall be immediately paid
from other moneys received by the Department pursuant to the Tax Acts
to the Build Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the preceding
sentence and shall reduce the amount otherwise payable for such fiscal year
pursuant to clause (b) of the preceding sentence. The moneys received by
the Department pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge set forth
in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund as provided in
the preceding paragraph or in any amendment thereto hereafter enacted, the
following specified monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and Exposition
Authority provided under Section 8.25f of the State Finance Act, but not in
excess of the sums designated as "Total Deposit", shall be deposited in the
aggregate from collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
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Fiscal Year | | Total Deposit | 1993 | | $0 | 1994 | | 53,000,000 | 1995 | | 58,000,000 | 1996 | | 61,000,000 | 1997 | | 64,000,000 | 1998 | | 68,000,000 | 1999 | | 71,000,000 | 2000 | | 75,000,000 | 2001 | | 80,000,000 | 2002 | | 93,000,000 | 2003 | | 99,000,000 | 2004 | | 103,000,000 | 2005 | | 108,000,000 | 2006 | | 113,000,000 | 2007 | | 119,000,000 | 2008 | | 126,000,000 | 2009 | | 132,000,000 | 2010 | | 139,000,000 | 2011 | | 146,000,000 | 2012 | | 153,000,000 | 2013 | | 161,000,000 | 2014 | | 170,000,000 | 2015 | | 179,000,000 | 2016 | | 189,000,000 | 2017 | | 199,000,000 | 2018 | | 210,000,000 | 2019 | | 221,000,000 | 2020 | | 233,000,000 | 2021 | | 300,000,000 | 2022 | | 300,000,000 | 2023 | | 300,000,000 | 2024 | | 300,000,000 | 2025 | | 300,000,000 | 2026 | | 300,000,000 | 2027 | | 375,000,000 | 2028 | | 375,000,000 | 2029 | | 375,000,000 | 2030 | | 375,000,000 | 2031 | | 375,000,000 | 2032 | | 375,000,000 | 2033 | | 375,000,000 | 2034 | | 375,000,000 | 2035 | | 375,000,000 | 2036 | | 450,000,000 | and | | |
each fiscal year | | |
thereafter that bonds | | |
are outstanding under | | |
Section 13.2 of the | | |
Metropolitan Pier and | | |
Exposition Authority Act, | | |
but not after fiscal year 2060. | | |
|
Beginning July 20, 1993 and in each month of each fiscal year thereafter,
one-eighth of the amount requested in the certificate of the Chairman of
the Metropolitan Pier and Exposition Authority for that fiscal year, less
the amount deposited into the McCormick Place Expansion Project Fund by the
State Treasurer in the respective month under subsection (g) of Section 13
of the Metropolitan Pier and Exposition Authority Act, plus cumulative
deficiencies in the deposits required under this Section for previous
months and years, shall be deposited into the McCormick Place Expansion
Project Fund, until the full amount requested for the fiscal year, but not
in excess of the amount specified above as "Total Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick
Place Expansion Project Fund
pursuant to the preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30, 2013, the Department shall each month pay into the
Illinois Tax Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of tangible
personal property.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any
amendments thereto hereafter enacted, beginning with the receipt of the first
report of taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy Infrastructure
Fund 80% of the net revenue realized from the 6.25% general rate on the
selling price of Illinois-mined coal that was sold to an eligible business.
For purposes of this paragraph, the term "eligible business" means a new
electric generating facility certified pursuant to Section 605-332 of the
Department of Commerce and
Economic Opportunity Law of the Civil Administrative
Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Energy Infrastructure Fund pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act. The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Deposit
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$200,000,000
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$206,000,000
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$212,200,000
2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$218,500,000
2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$225,100,000
2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$288,700,000
2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$298,900,000
2031 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$309,300,000
2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$320,100,000
2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$331,200,000
2034 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$341,200,000
2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$351,400,000
2036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$361,900,000
2037 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$372,800,000
2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$384,000,000
2039 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$395,500,000
2040 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$407,400,000
2041 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$419,600,000
2042 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$432,200,000
2043 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol. As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department pursuant to this
Act, 75% shall be paid into the General Revenue Fund of the State Treasury and 25% shall be reserved in a special account and used only for the transfer to the Common School Fund as part of the monthly transfer from the General Revenue Fund in accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a taxpayer,
require the taxpayer to prepare and file with the Department on a form
prescribed by the Department within not less than 60 days after receipt
of the notice an annual information return for the tax year specified in
the notice. Such annual return to the Department shall include a
statement of gross receipts as shown by the taxpayer's last Federal income
tax return. If the total receipts of the business as reported in the
Federal income tax return do not agree with the gross receipts reported to
the Department of Revenue for the same period, the taxpayer shall attach
to his annual return a schedule showing a reconciliation of the 2
amounts and the reasons for the difference. The taxpayer's annual
return to the Department shall also disclose the cost of goods sold by
the taxpayer during the year covered by such return, opening and closing
inventories of such goods for such year, cost of goods used from stock
or taken from stock and given away by the taxpayer during such year, pay
roll information of the taxpayer's business during such year and any
additional reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly or annual
returns filed by such taxpayer as hereinbefore provided for in this
Section.
If the annual information return required by this Section is not
filed when and as required, the taxpayer shall be liable as follows:
(i) Until January 1, 1994, the taxpayer shall be
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| liable for a penalty equal to 1/6 of 1% of the tax due from such taxpayer under this Act during the period to be covered by the annual return for each month or fraction of a month until such return is filed as required, the penalty to be assessed and collected in the same manner as any other penalty provided for in this Act.
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(ii) On and after January 1, 1994, the taxpayer shall
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| be liable for a penalty as described in Section 3-4 of the Uniform Penalty and Interest Act.
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The chief executive officer, proprietor, owner or highest ranking
manager shall sign the annual return to certify the accuracy of the
information contained therein. Any person who willfully signs the
annual return containing false or inaccurate information shall be guilty
of perjury and punished accordingly. The annual return form prescribed
by the Department shall include a warning that the person signing the
return may be liable for perjury.
The foregoing portion of this Section concerning the filing of an
annual information return shall not apply to a serviceman who is not
required to file an income tax return with the United States Government.
As soon as possible after the first day of each month, upon certification
of the Department of Revenue, the Comptroller shall order transferred and
the Treasurer shall transfer from the General Revenue Fund to the Motor
Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized
under this Act for the second preceding month.
Beginning April 1, 2000, this transfer is no longer required
and shall not be made.
Net revenue realized for a month shall be the revenue collected by the State
pursuant to this Act, less the amount paid out during that month as
refunds to taxpayers for overpayment of liability.
For greater simplicity of administration, it shall be permissible for
manufacturers, importers and wholesalers whose products are sold by numerous
servicemen in Illinois, and who wish to do so, to
assume the responsibility for accounting and paying to the Department
all tax accruing under this Act with respect to such sales, if the
servicemen who are affected do not make written objection to the
Department to this arrangement.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
(Text of Section from P.A. 103-363)
Sec. 9. Each serviceman required or authorized to collect the tax
herein imposed shall pay to the Department the amount of such tax at the
time when he is required to file his return for the period during which
such tax was collectible, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or
$5 per calendar year, whichever is greater, which is allowed to reimburse
the serviceman for expenses incurred in collecting the tax, keeping
records, preparing and filing returns, remitting the tax and supplying data
to the Department on request. When determining the discount allowed under this Section, servicemen shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for servicemen whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final.
Where such tangible personal property is sold under a conditional
sales contract, or under any other form of sale wherein the payment of
the principal sum, or a part thereof, is extended beyond the close of
the period for which the return is filed, the serviceman, in collecting
the tax may collect, for each tax return period, only the tax applicable
to the part of the selling price actually received during such tax return
period.
Except as provided hereinafter in this Section, on or before the twentieth
day of each calendar month, such serviceman shall file a
return for the preceding calendar month in accordance with reasonable
rules and regulations to be promulgated by the Department of Revenue.
Such return shall be filed on a form prescribed by the Department and
shall contain such information as the Department may reasonably require. The return shall include the gross receipts which were received during the preceding calendar month or quarter on the following items upon which tax would have been due but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly: (i) food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption); and (ii) food prepared for immediate consumption and transferred incident to a sale of service subject to this Act or the Service Use Tax Act by an entity licensed under the Hospital Licensing Act, the Nursing Home Care Act, the Assisted Living and Shared Housing Act, the ID/DD Community Care Act, the MC/DD Act, the Specialized Mental Health Rehabilitation Act of 2013, or the Child Care Act of 1969, or an entity that holds a permit issued pursuant to the Life Care Facilities Act. The return shall also include the amount of tax that would have been due on the items listed in the previous sentence but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly.
On and after January 1, 2018, with respect to servicemen whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically. Servicemen who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement.
The Department may require returns to be filed on a quarterly basis.
If so required, a return for each calendar quarter shall be filed on or
before the twentieth day of the calendar month following the end of such
calendar quarter. The taxpayer shall also file a return with the
Department for each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business
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| from which he engages in business as a serviceman in this State;
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3. The total amount of taxable receipts received by
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| him during the preceding calendar month, including receipts from charge and time sales, but less all deductions allowed by law;
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4. The amount of credit provided in Section 2d of
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5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the
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Each serviceman required or authorized to collect the tax herein imposed on aviation fuel acquired as an incident to the purchase of a service in this State during the preceding calendar month shall, instead of reporting and paying tax as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return. The requirements related to the return shall be as otherwise provided in this Section. Notwithstanding any other provisions of this Act to the contrary, servicemen transferring aviation fuel incident to sales of service shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department. For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.
If a taxpayer fails to sign a return within 30 days after the proper notice
and demand for signature by the Department, the return shall be considered
valid and any amount shown to be due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the contrary, servicemen subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.
Prior to October 1, 2003, and on and after September 1, 2004 a serviceman may accept a Manufacturer's
Purchase Credit certification
from a purchaser in satisfaction
of Service Use Tax as provided in Section 3-70 of the
Service Use Tax Act if the purchaser provides
the
appropriate
documentation as required by Section 3-70 of the Service Use Tax Act.
A Manufacturer's Purchase Credit certification, accepted prior to October 1,
2003 or on or after September 1, 2004 by a serviceman as
provided in Section 3-70 of the Service Use Tax Act, may be used by that
serviceman to satisfy Service Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject to tax from a
qualifying purchase. A Manufacturer's Purchase Credit reported on any
original or amended return
filed under
this Act after October 20, 2003 for reporting periods prior to September 1, 2004 shall be disallowed. Manufacturer's Purchase Credit reported on annual returns due on or after January 1, 2005 will be disallowed for periods prior to September 1, 2004.
No Manufacturer's
Purchase Credit may be used after September 30, 2003 through August 31, 2004 to
satisfy any
tax liability imposed under this Act, including any audit liability.
If the serviceman's average monthly tax liability to
the Department does not exceed $200, the Department may authorize his
returns to be filed on a quarter annual basis, with the return for
January, February and March of a given year being due by April 20 of
such year; with the return for April, May and June of a given year being
due by July 20 of such year; with the return for July, August and
September of a given year being due by October 20 of such year, and with
the return for October, November and December of a given year being due
by January 20 of the following year.
If the serviceman's average monthly tax liability to
the Department does not exceed $50, the Department may authorize his
returns to be filed on an annual basis, with the return for a given year
being due by January 20 of the following year.
Such quarter annual and annual returns, as to form and substance,
shall be subject to the same requirements as monthly returns.
Notwithstanding any other provision in this Act concerning the time within
which a serviceman may file his return, in the case of any serviceman who
ceases to engage in a kind of business which makes him responsible for filing
returns under this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after discontinuing such
business.
Beginning October 1, 1993, a taxpayer who has an average monthly tax
liability of $150,000 or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1, 1994, a taxpayer
who has an average monthly tax liability of $100,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 1995, a taxpayer who has an average monthly tax liability
of $50,000 or more shall make all payments required by rules of the Department
by electronic funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all payments required by
rules of the Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities under this Act, and
under all other State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year. The term "average
monthly tax liability" means
the sum of the taxpayer's liabilities under this Act, and under all other State
and local occupation and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12.
Beginning on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the Department of
Revenue Law shall make all payments required by rules of the Department by
electronic funds transfer.
Before August 1 of each year beginning in 1993, the Department shall
notify all taxpayers required to make payments by electronic funds transfer.
All taxpayers required to make payments by electronic funds transfer shall make
those payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic funds transfer may
make payments by electronic funds transfer with the
permission of the Department.
All taxpayers required to make payment by electronic funds transfer and
any taxpayers authorized to voluntarily make payments by electronic funds
transfer shall make those payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to effectuate a
program of electronic funds transfer and the requirements of this Section.
Where a serviceman collects the tax with respect to the selling price of
tangible personal property which he sells and the purchaser thereafter returns
such tangible personal property and the serviceman refunds the
selling price thereof to the purchaser, such serviceman shall also refund,
to the purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax to the
purchaser, the serviceman may deduct the amount of the tax so refunded by
him to the purchaser from any other Service Occupation Tax, Service Use
Tax, Retailers' Occupation Tax or Use Tax which such serviceman may be
required to pay or remit to the Department, as shown by such return,
provided that the amount of the tax to be deducted shall previously have
been remitted to the Department by such serviceman. If the serviceman shall
not previously have remitted the amount of such tax to the Department,
he shall be entitled to no deduction hereunder upon refunding such tax
to the purchaser.
If experience indicates such action to be practicable, the Department
may prescribe and furnish a combination or joint return which will
enable servicemen, who are required to file returns
hereunder and also under the Retailers' Occupation Tax Act, the Use
Tax Act or the Service Use Tax Act, to furnish all the return
information required by all said Acts on the one form.
Where the serviceman has more than one business
registered with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each
registered business.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund the revenue realized for the
preceding month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall pay into
the County and Mass Transit District Fund 4% of the revenue realized
for the preceding month from the 6.25% general rate on sales of tangible personal property other than aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of motor fuel and
gasohol.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund 16% of the revenue realized for the
preceding month from the 6.25% general rate on transfers of
tangible personal property other than aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund. The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuel Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
Local Government Tax Fund 80% of the net revenue realized for the preceding
month from the 1.25% rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Use Tax Act, the Service Use Tax Act, and the Retailers' Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Use Tax Act, the Service Use Tax Act, and the Retailers' Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, this Act, and the Retailers' Occupation Tax Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department pursuant to
this Act, (a) 1.75% thereof shall be paid into the Build Illinois Fund and
(b) prior to July 1, 1989, 2.2% and on and after July 1, 1989, 3.8% thereof
shall be paid into the Build Illinois Fund; provided, however, that if in
any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required to be paid
into the Build Illinois Fund pursuant to Section 3 of the Retailers'
Occupation Tax Act, Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of 2.2% or 3.8%,
as the case may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall be less than the Annual
Specified Amount (as defined in Section 3 of the Retailers' Occupation Tax
Act), an amount equal to the difference shall be immediately paid into the
Build Illinois Fund from other moneys received by the Department pursuant
to the Tax Acts; and further provided, that if on the last business day of
any month the sum of (1) the Tax Act Amount required to be deposited into
the Build Illinois Account in the Build Illinois Fund during such month and
(2) the amount transferred during such month to the Build Illinois Fund
from the State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the difference
shall be immediately paid into the Build Illinois Fund from other moneys
received by the Department pursuant to the Tax Acts; and, further provided,
that in no event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund pursuant to this
clause (b) for any fiscal year in excess of the greater of (i) the Tax Act
Amount or (ii) the Annual Specified Amount for such fiscal year; and,
further provided, that the amounts payable into the Build Illinois Fund
under this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing Bonds
issued and outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income, to fully
provide, in accordance with such indenture, for the defeasance of or the
payment of the principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be issued thereafter
and all fees and costs payable with respect thereto, all as certified by
the Director of the
Bureau of the Budget (now Governor's Office of Management and Budget). If
on the last business day of
any month in which Bonds are outstanding pursuant to the Build Illinois
Bond Act, the aggregate of the moneys deposited
in the Build Illinois Bond Account in the Build Illinois Fund in such month
shall be less than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond Retirement and
Interest Fund pursuant to Section 13 of the Build Illinois Bond Act, an
amount equal to such deficiency shall be immediately paid
from other moneys received by the Department pursuant to the Tax Acts
to the Build Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the preceding
sentence and shall reduce the amount otherwise payable for such fiscal year
pursuant to clause (b) of the preceding sentence. The moneys received by
the Department pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge set forth
in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund as provided in
the preceding paragraph or in any amendment thereto hereafter enacted, the
following specified monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and Exposition
Authority provided under Section 8.25f of the State Finance Act, but not in
excess of the sums designated as "Total Deposit", shall be deposited in the
aggregate from collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
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Fiscal Year | | Total Deposit | 1993 | | $0 | 1994 | | 53,000,000 | 1995 | | 58,000,000 | 1996 | | 61,000,000 | 1997 | | 64,000,000 | 1998 | | 68,000,000 | 1999 | | 71,000,000 | 2000 | | 75,000,000 | 2001 | | 80,000,000 | 2002 | | 93,000,000 | 2003 | | 99,000,000 | 2004 | | 103,000,000 | 2005 | | 108,000,000 | 2006 | | 113,000,000 | 2007 | | 119,000,000 | 2008 | | 126,000,000 | 2009 | | 132,000,000 | 2010 | | 139,000,000 | 2011 | | 146,000,000 | 2012 | | 153,000,000 | 2013 | | 161,000,000 | 2014 | | 170,000,000 | 2015 | | 179,000,000 | 2016 | | 189,000,000 | 2017 | | 199,000,000 | 2018 | | 210,000,000 | 2019 | | 221,000,000 | 2020 | | 233,000,000 | 2021 | | 300,000,000 | 2022 | | 300,000,000 | 2023 | | 300,000,000 | 2024 | | 300,000,000 | 2025 | | 300,000,000 | 2026 | | 300,000,000 | 2027 | | 375,000,000 | 2028 | | 375,000,000 | 2029 | | 375,000,000 | 2030 | | 375,000,000 | 2031 | | 375,000,000 | 2032 | | 375,000,000 | 2033 | | 375,000,000 | 2034 | | 375,000,000 | 2035 | | 375,000,000 | 2036 | | 450,000,000 | and | | |
each fiscal year | | |
thereafter that bonds | | |
are outstanding under | | |
Section 13.2 of the | | |
Metropolitan Pier and | | |
Exposition Authority Act, | | |
but not after fiscal year 2060. | | |
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Beginning July 20, 1993 and in each month of each fiscal year thereafter,
one-eighth of the amount requested in the certificate of the Chairman of
the Metropolitan Pier and Exposition Authority for that fiscal year, less
the amount deposited into the McCormick Place Expansion Project Fund by the
State Treasurer in the respective month under subsection (g) of Section 13
of the Metropolitan Pier and Exposition Authority Act, plus cumulative
deficiencies in the deposits required under this Section for previous
months and years, shall be deposited into the McCormick Place Expansion
Project Fund, until the full amount requested for the fiscal year, but not
in excess of the amount specified above as "Total Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick
Place Expansion Project Fund
pursuant to the preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30, 2013, the Department shall each month pay into the
Illinois Tax Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of tangible
personal property.
Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, and the Illinois Tax Increment Fund pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act. The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Deposit
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$200,000,000
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$206,000,000
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$212,200,000
2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$218,500,000
2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$225,100,000
2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$288,700,000
2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$298,900,000
2031 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$309,300,000
2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$320,100,000
2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$331,200,000
2034 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$341,200,000
2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$351,400,000
2036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$361,900,000
2037 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$372,800,000
2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$384,000,000
2039 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$395,500,000
2040 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$407,400,000
2041 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$419,600,000
2042 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$432,200,000
2043 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol. As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department pursuant to this
Act, 75% shall be paid into the General Revenue Fund of the State Treasury and 25% shall be reserved in a special account and used only for the transfer to the Common School Fund as part of the monthly transfer from the General Revenue Fund in accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a taxpayer,
require the taxpayer to prepare and file with the Department on a form
prescribed by the Department within not less than 60 days after receipt
of the notice an annual information return for the tax year specified in
the notice. Such annual return to the Department shall include a
statement of gross receipts as shown by the taxpayer's last Federal income
tax return. If the total receipts of the business as reported in the
Federal income tax return do not agree with the gross receipts reported to
the Department of Revenue for the same period, the taxpayer shall attach
to his annual return a schedule showing a reconciliation of the 2
amounts and the reasons for the difference. The taxpayer's annual
return to the Department shall also disclose the cost of goods sold by
the taxpayer during the year covered by such return, opening and closing
inventories of such goods for such year, cost of goods used from stock
or taken from stock and given away by the taxpayer during such year, pay
roll information of the taxpayer's business during such year and any
additional reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly or annual
returns filed by such taxpayer as hereinbefore provided for in this
Section.
If the annual information return required by this Section is not
filed when and as required, the taxpayer shall be liable as follows:
(i) Until January 1, 1994, the taxpayer shall be
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| liable for a penalty equal to 1/6 of 1% of the tax due from such taxpayer under this Act during the period to be covered by the annual return for each month or fraction of a month until such return is filed as required, the penalty to be assessed and collected in the same manner as any other penalty provided for in this Act.
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(ii) On and after January 1, 1994, the taxpayer shall
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| be liable for a penalty as described in Section 3-4 of the Uniform Penalty and Interest Act.
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The chief executive officer, proprietor, owner or highest ranking
manager shall sign the annual return to certify the accuracy of the
information contained therein. Any person who willfully signs the
annual return containing false or inaccurate information shall be guilty
of perjury and punished accordingly. The annual return form prescribed
by the Department shall include a warning that the person signing the
return may be liable for perjury.
The foregoing portion of this Section concerning the filing of an
annual information return shall not apply to a serviceman who is not
required to file an income tax return with the United States Government.
As soon as possible after the first day of each month, upon certification
of the Department of Revenue, the Comptroller shall order transferred and
the Treasurer shall transfer from the General Revenue Fund to the Motor
Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized
under this Act for the second preceding month.
Beginning April 1, 2000, this transfer is no longer required
and shall not be made.
Net revenue realized for a month shall be the revenue collected by the State
pursuant to this Act, less the amount paid out during that month as
refunds to taxpayers for overpayment of liability.
For greater simplicity of administration, it shall be permissible for
manufacturers, importers and wholesalers whose products are sold by numerous
servicemen in Illinois, and who wish to do so, to
assume the responsibility for accounting and paying to the Department
all tax accruing under this Act with respect to such sales, if the
servicemen who are affected do not make written objection to the
Department to this arrangement.
(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
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