Public Act 101-0604
 
SB0119 EnrolledLRB101 06854 HLH 51885 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
ARTICLE 5. SECOND FY2020 BUDGET IMPLEMENTATION ACT

 
    Section 5-1. Short title. This Article may be cited as the
Second FY2020 Budget Implementation Act.
 
    Section 5-5. Purpose. It is the purpose of this Article to
make additional changes in State programs that are necessary to
implement the State operating and capital budgets for State
fiscal year 2020.
 
    Section 5-10. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois is
amended by renumbering and changing Section 605-1025 as added
by Public Act 101-10 as follows:
 
    (20 ILCS 605/605-1030)
    Sec. 605-1030 605-1025. Human Services Capital Investment
Grant Program.
    (a) The Department of Commerce and Economic Opportunity, in
coordination with the Department of Human Services, shall
establish a Human Services Capital Investment Grant Program.
The Department shall, subject to appropriation, make capital
improvement grants to human services providers serving
low-income or marginalized populations. The Build Illinois
Bond Fund and the Rebuild Illinois Projects Fund shall be the
sources source of funding for the program. Eligible grant
recipients shall be human services providers that offer
facilities and services in a manner that supports and fulfills
the mission of Department of Human Services. Eligible grant
recipients include, but are not limited to, domestic violence
shelters, rape crisis centers, comprehensive youth services,
teen REACH providers, supportive housing providers,
developmental disability community providers, behavioral
health providers, and other community-based providers.
Eligible grant recipients have no entitlement to a grant under
this Section.
    (b) The Department, in consultation with the Department of
Human Services, shall adopt rules to implement this Section and
shall create a competitive application procedure for grants to
be awarded. The rules shall specify the manner of applying for
grants; grantee eligibility requirements; project eligibility
requirements; restrictions on the use of grant moneys; the
manner in which grantees must account for the use of grant
moneys; and any other provision that the Department of Commerce
and Economic Opportunity or Department of Human Services
determine to be necessary or useful for the administration of
this Section. Rules may include a requirement for grantees to
provide local matching funds in an amount equal to a specific
percentage of the grant.
    (c) The Department of Human Services shall establish
standards for determining the priorities concerning the
necessity for capital facilities for the provision of human
services based on data available to the Department.
    (d) No portion of a human services capital investment grant
awarded under this Section may be used by a grantee to pay for
any on-going operational costs or outstanding debt.
(Source: P.A. 101-10, eff. 6-5-19; revised 10-18-19.)
 
    Section 5-15. The Capital Development Board Act is amended
by changing Section 20 as follows:
 
    (20 ILCS 3105/20)
    Sec. 20. Hospital and Healthcare Transformation Capital
Investment Grant Program.
    (a) The Capital Development Board, in coordination with the
Department of Healthcare and Family Services, shall establish a
Hospital and Healthcare Transformation Capital Investment
Grant Program. The Board shall, subject to appropriation, make
capital improvement grants to Illinois hospitals licensed
under the Hospital Licensing Act and other qualified healthcare
providers serving the people of Illinois. The Build Illinois
Bond Fund and the Capital Development Fund shall be the sources
source of funding for the program. Eligible grant recipients
shall be hospitals and other healthcare providers that offer
facilities and services in a manner that supports and fulfills
the mission of the Department of Healthcare and Family
Services. Eligible grant recipients have no entitlement to a
grant under this Section.
    (b) The Capital Development Board, in consultation with the
Department of Healthcare and Family Services shall adopt rules
to implement this Section and shall create a competitive
application procedure for grants to be awarded. The rules shall
specify: the manner of applying for grants; grantee eligibility
requirements; project eligibility requirements; restrictions
on the use of grant moneys; the manner in grantees must account
for the use of grant moneys; and any other provision that the
Capital Development Board or Department of Healthcare and
Family Services determine to be necessary or useful for the
administration of this Section. Rules may include a requirement
for grantees to provide local matching funds in an amount equal
to a certain percentage of the grant.
    (c) The Department of Healthcare and Family Services shall
establish standards for the determination of priority needs
concerning health care transformation based on projects
located in communities in the State with the greatest
utilization of Medicaid services or underserved communities,
including, but not limited to Safety Net Hospitals and Critical
Access Hospitals, utilizing data available to the Department.
    (d) Nothing in this Section shall exempt nor relieve any
healthcare provider receiving a grant under this Section from
any requirement of the Illinois Health Facilities Planning Act.
    (e) No portion of a healthcare transformation capital
investment program grant awarded under this Section may be used
by a hospital or other healthcare provider to pay for any
on-going operational costs, pay outstanding debt, or be
allocated to an endowment or other invested fund.
(Source: P.A. 101-10, eff. 6-5-19; revised 7-16-19.)
 
    Section 5-20. The State Finance Act is amended by changing
Section 6z-78 as follows:
 
    (30 ILCS 105/6z-78)
    Sec. 6z-78. Capital Projects Fund; bonded indebtedness;
transfers. Money in the Capital Projects Fund shall, if and
when the State of Illinois incurs any bonded indebtedness using
the bond authorizations for capital projects enacted in Public
Act 96-36, Public Act 96-1554, Public Act 97-771, Public Act
98-94, and using the general obligation bond authorizations for
capital projects enacted in Public Act 101-30 and this
amendatory Act of the 101st General Assembly, be set aside and
used for the purpose of paying and discharging annually the
principal and interest on that bonded indebtedness then due and
payable.
    In addition to other transfers to the General Obligation
Bond Retirement and Interest Fund made pursuant to Section 15
of the General Obligation Bond Act, upon each delivery of
general obligation bonds for capital projects using bond
authorizations enacted in Public Act 96-36, Public Act 96-1554,
Public Act 97-771, Public Act 98-94, and Public Act 101-30 this
amendatory Act of the 101st General Assembly (except for
amounts in Public Act 101-30 this amendatory Act of the 101st
General Assembly that increase bond authorization under
paragraph (1) of subsection (a) of Section 4 and subsection (e)
of Section 4 of the General Obligation Bond Act), the State
Comptroller shall compute and certify to the State Treasurer
the total amount of principal of, interest on, and premium, if
any, on such bonds during the then current and each succeeding
fiscal year. With respect to the interest payable on variable
rate bonds, such certifications shall be calculated at the
maximum rate of interest that may be payable during the fiscal
year, after taking into account any credits permitted in the
related indenture or other instrument against the amount of
such interest required to be appropriated for the period.
    (a) Except as provided for in subsection (b), on or before
the last day of each month, the State Treasurer and State
Comptroller shall transfer from the Capital Projects Fund to
the General Obligation Bond Retirement and Interest Fund an
amount sufficient to pay the aggregate of the principal of,
interest on, and premium, if any, on the bonds payable on their
next payment date, divided by the number of monthly transfers
occurring between the last previous payment date (or the
delivery date if no payment date has yet occurred) and the next
succeeding payment date. Interest payable on variable rate
bonds shall be calculated at the maximum rate of interest that
may be payable for the relevant period, after taking into
account any credits permitted in the related indenture or other
instrument against the amount of such interest required to be
appropriated for that period. Interest for which moneys have
already been deposited into the capitalized interest account
within the General Obligation Bond Retirement and Interest Fund
shall not be included in the calculation of the amounts to be
transferred under this subsection.
    (b) On or before the last day of each month, the State
Treasurer and State Comptroller shall transfer from the Capital
Projects Fund to the General Obligation Bond Retirement and
Interest Fund an amount sufficient to pay the aggregate of the
principal of, interest on, and premium, if any, on the bonds
issued prior to January 1, 2012 pursuant to Section 4(d) of the
General Obligation Bond Act payable on their next payment date,
divided by the number of monthly transfers occurring between
the last previous payment date (or the delivery date if no
payment date has yet occurred) and the next succeeding payment
date. If the available balance in the Capital Projects Fund is
not sufficient for the transfer required in this subsection,
the State Treasurer and State Comptroller shall transfer the
difference from the Road Fund to the General Obligation Bond
Retirement and Interest Fund; except that such Road Fund
transfers shall constitute a debt of the Capital Projects Fund
which shall be repaid according to subsection (c). Interest
payable on variable rate bonds shall be calculated at the
maximum rate of interest that may be payable for the relevant
period, after taking into account any credits permitted in the
related indenture or other instrument against the amount of
such interest required to be appropriated for that period.
Interest for which moneys have already been deposited into the
capitalized interest account within the General Obligation
Bond Retirement and Interest Fund shall not be included in the
calculation of the amounts to be transferred under this
subsection.
    (c) On the first day of any month when the Capital Projects
Fund is carrying a debt to the Road Fund due to the provisions
of subsection (b), the State Treasurer and State Comptroller
shall transfer from the Capital Projects Fund to the Road Fund
an amount sufficient to discharge that debt. These transfers to
the Road Fund shall continue until the Capital Projects Fund
has repaid to the Road Fund all transfers made from the Road
Fund pursuant to subsection (b). Notwithstanding any other law
to the contrary, transfers to the Road Fund from the Capital
Projects Fund shall be made prior to any other expenditures or
transfers out of the Capital Projects Fund.
(Source: P.A. 101-30, eff. 6-28-19.)
 
    Section 5-25. The General Obligation Bond Act is amended by
changing Section 7.6 as follows:
 
    (30 ILCS 330/7.6)
    Sec. 7.6. Income Tax Proceed Bonds.
    (a) As used in this Act, "Income Tax Proceed Bonds" means
Bonds (i) authorized by this amendatory Act of the 100th
General Assembly or any other Public Act of the 100th General
Assembly authorizing the issuance of Income Tax Proceed Bonds
and (ii) used for the payment of unpaid obligations of the
State as incurred from time to time and as authorized by the
General Assembly.
    (b) Income Tax Proceed Bonds in the amount of
$6,000,000,000 are hereby authorized to be used for the purpose
of paying vouchers incurred by the State prior to July 1, 2017.
Additional Income Tax Proceed Bonds in the amount of
$1,200,000,000 are hereby authorized to be used for the purpose
of paying vouchers incurred by the State and accruing interest
payable by the State more than 90 days prior to the date on
which the Income Tax Proceed Bonds are issued.
    (c) The Income Tax Bond Fund is hereby created as a special
fund in the State treasury. All moneys from the proceeds of the
sale of the Income Tax Proceed Bonds, less the amounts
authorized in the Bond Sale Order to be directly paid out for
bond sale expenses under Section 8, shall be deposited into the
Income Tax Bond Fund. All moneys in the Income Tax Bond Fund
shall be used for the purpose of paying vouchers incurred by
the State prior to July 1, 2017 or for paying vouchers incurred
by the State more than 90 days prior to the date on which the
Income Tax Proceed Bonds are issued. For the purpose of paying
such vouchers, the Comptroller has the authority to transfer
moneys from the Income Tax Bond Fund to general funds and the
Health Insurance Reserve Fund. "General funds" has the meaning
provided in Section 50-40 of the State Budget Law.
(Source: P.A. 100-23, eff. 7-6-17; 101-30, eff. 6-28-19.)
 
    Section 5-30. The Private Colleges and Universities
Capital Distribution Formula Act is amended by changing Section
25-7 as follows:
 
    (30 ILCS 769/25-7)
    Sec. 25-7. Capital Investment Grant Program.
    (a) The Board of Higher Education, jointly Capital
Development Board, in coordination with the Capital
Development Board of Higher Education, shall establish a
Capital Investment Grant Program for independent colleges. The
Capital Development Board shall, subject to appropriation, and
subject to direction by the Board of Higher Education, make
capital improvement grants to independent colleges in
Illinois. The Build Illinois Bond Fund shall be the source of
funding for the program. Eligible grant recipients shall be
independent colleges that offer facilities and services in a
manner that supports and fulfills the mission of the Board of
Higher Education. Eligible grant recipients have no
entitlement to a grant under this Section.
    (b) Board of Higher Education, jointly The Capital
Development Board, in consultation with the Capital
Development Board of Higher Education, shall adopt rules to
implement this Section and shall create an application
procedure for grants to be awarded. The rules shall specify:
the manner of applying for grants; grantee eligibility
requirements; project eligibility requirements; restrictions
on the use of grant moneys; the manner in which grantees must
account for the use of grant moneys; and any other provision
that the Capital Development Board or Board of Higher Education
determine to be necessary or useful for the administration of
this Section.
    (c) No portion of an independent college capital investment
program grant awarded under this Section may be used by an
independent college to pay for any on-going operational costs,
pay outstanding debt, or be allocated to an endowment or other
invested fund.
(Source: P.A. 101-10, eff. 6-5-19; revised 7-22-19.)
 
    Section 5-35. The Motor Fuel Tax Law is amended by changing
Section 8b as follows:
 
    (35 ILCS 505/8b)
    Sec. 8b. Transportation Renewal Fund; creation;
distribution of proceeds.
    (a) The Transportation Renewal Fund is hereby created as a
special fund in the State treasury. Moneys in the Fund shall be
used as provided in this Section:
        (1) 80% of the moneys in the Fund shall be used for
    highway maintenance, highway construction, bridge repair,
    congestion relief, and construction of aviation
    facilities; of that 80%:
            (A) the State Comptroller shall order transferred
        and the State Treasurer shall transfer 60% to the State
        Construction Account Fund; those moneys shall be used
        solely for construction, reconstruction, improvement,
        repair, maintenance, operation, and administration of
        highways and are limited to payments made pursuant to
        design and construction contracts awarded by the
        Department of Transportation;
            (B) 40% shall be distributed by the Department of
        Transportation to municipalities, counties, and road
        districts of the State using the percentages set forth
        in subdivisions (A), (B), (C), and (D) of paragraph (2)
        of subsection (e) of Section 8; distributions to
        particular municipalities, counties, and road
        districts under this subdivision (B) shall be made
        according to the allocation procedures described for
        municipalities, counties, and road districts in
        subsection (e) of Section 8 and shall be subject to the
        same requirements and limitations described in that
        subsection; and as follows:
                (i)49.10% to the municipalities of the State;
                (ii) 16.74% to the counties of the State having
            1,000,000 or more inhabitants;
                (iii)18.27% to the counties of the State
            having less than 1,000,000 inhabitants; and
                (iv) 15.89% to the road districts of the State;
            and
        (2) 20% of the moneys in the Fund shall be used for
    projects related to rail facilities and mass transit
    facilities, as defined in Section 2705-305 of the
    Department of Transportation Law of the Civil
    Administrative Code of Illinois, including rapid transit,
    rail, high-speed rail, bus and other equipment in
    connection with the State or a unit of local government,
    special district, municipal corporation, or other public
    agency authorized to provide and promote public
    transportation within the State; of that 20%:
            (A) 90% shall be deposited into the Regional
        Transportation Authority Capital Improvement Fund, a
        special fund created in the State Treasury; moneys in
        the Regional Transportation Authority Capital
        Improvement Fund shall be used by the Regional
        Transportation Authority for construction,
        improvements, and deferred maintenance on mass transit
        facilities and acquisition of buses and other
        equipment; and
            (B) 10% shall be deposited into the Downstate Mass
        Transportation Capital Improvement Fund, a special
        fund created in the State Treasury; moneys in the
        Downstate Mass Transportation Capital Improvement Fund
        shall be used by local mass transit districts other
        than the Regional Transportation Authority for
        construction, improvements, and deferred maintenance
        on mass transit facilities and acquisition of buses and
        other equipment.
    (b)Beginning on July 1, 2020, the Auditor General shall
conduct an annual financial audit of the obligations,
expenditures, receipt, and use of the funds deposited into the
Transportation Renewal Reform Fund and provide specific
recommendations to help ensure compliance with State and
federal statutes, rules, and regulations.
(Source: P.A. 101-32, eff. 6-28-19.)
 
ARTICLE 10. ADDITIONAL AMENDATORY PROVISIONS

 
    Section 10-5. The New Markets Development Program Act is
amended by changing Section 25 as follows:
 
    (20 ILCS 663/25)
    Sec. 25. Certification of qualified equity investments.
    (a) A qualified community development entity that seeks to
have an equity investment or long-term debt security designated
as a qualified equity investment and eligible for tax credits
under this Section shall apply to the Department. The qualified
community development entity must submit an application on a
form that the Department provides that includes:
        (1) The name, address, tax identification number of the
    entity, and evidence of the entity's certification as a
    qualified community development entity.
        (2) A copy of the allocation agreement executed by the
    entity, or its controlling entity, and the Community
    Development Financial Institutions Fund.
        (3) A certificate executed by an executive officer of
    the entity attesting that the allocation agreement remains
    in effect and has not been revoked or cancelled by the
    Community Development Financial Institutions Fund.
        (4) A description of the proposed amount, structure,
    and purchaser of the equity investment or long-term debt
    security.
        (5) The name and tax identification number of any
    taxpayer eligible to utilize tax credits earned as a result
    of the issuance of the qualified equity investment.
        (6) Information regarding the proposed use of proceeds
    from the issuance of the qualified equity investment.
        (7) A nonrefundable application fee of $5,000. This fee
    shall be paid to the Department and shall be required of
    each application submitted.
        (8) With respect to qualified equity investments made
    on or after January 1, 2017, the amount of qualified equity
    investment authority the applicant agrees to designate as a
    federal qualified equity investment under Section 45D of
    the Internal Revenue Code, including a copy of the screen
    shot from the Community Development Financial Institutions
    Fund's Allocation Tracking System of the applicant's
    remaining federal qualified equity investment authority.
    (b) Within 30 days after receipt of a completed application
containing the information necessary for the Department to
certify a potential qualified equity investment, including the
payment of the application fee, the Department shall grant or
deny the application in full or in part. If the Department
denies any part of the application, it shall inform the
qualified community development entity of the grounds for the
denial. If the qualified community development entity provides
any additional information required by the Department or
otherwise completes its application within 15 days of the
notice of denial, the application shall be considered completed
as of the original date of submission. If the qualified
community development entity fails to provide the information
or complete its application within the 15-day period, the
application remains denied and must be resubmitted in full with
a new submission date.
    (c) If the application is deemed complete, the Department
shall certify the proposed equity investment or long-term debt
security as a qualified equity investment that is eligible for
tax credits under this Section, subject to the limitations
contained in Section 20. The Department shall provide written
notice of the certification to the qualified community
development entity. The notice shall include the names of those
taxpayers who are eligible to utilize the credits and their
respective credit amounts. If the names of the taxpayers who
are eligible to utilize the credits change due to a transfer of
a qualified equity investment or a change in an allocation
pursuant to Section 15, the qualified community development
entity shall notify the Department of such change.
    (d) With respect to applications received before January 1,
2017, the Department shall certify qualified equity
investments in the order applications are received by the
Department. Applications received on the same day shall be
deemed to have been received simultaneously. For applications
received on the same day and deemed complete, the Department
shall certify, consistent with remaining tax credit capacity,
qualified equity investments in proportionate percentages
based upon the ratio of the amount of qualified equity
investment requested in an application to the total amount of
qualified equity investments requested in all applications
received on the same day.
    (d-5) With respect to applications received on or after
January 1, 2017, the Department shall certify applications by
applicants that agree to designate qualified equity
investments as federal qualified equity investments in
accordance with item (8) of subsection (a) of this Section in
proportionate percentages based upon the ratio of the amount of
qualified equity investments requested in an application to be
designated as federal qualified equity investments to the total
amount of qualified equity investments to be designated as
federal qualified equity investments requested in all
applications received on the same day.
    (d-10) With respect to applications received on or after
January 1, 2017, after complying with subsection (d-5), the
Department shall certify the qualified equity investments of
all other applicants, including the remaining qualified equity
investment authority requested by applicants not designated as
federal qualified equity investments in accordance with item
(8) of subsection (a) of this Section, in proportionate
percentages based upon the ratio of the amount of qualified
equity investments requested in the applications to the total
amount of qualified equity investments requested in all
applications received on the same day.
    (e) Once the Department has certified qualified equity
investments that, on a cumulative basis, are eligible for
$20,000,000 in tax credits, the Department may not certify any
more qualified equity investments. If a pending request cannot
be fully certified, the Department shall certify the portion
that may be certified unless the qualified community
development entity elects to withdraw its request rather than
receive partial credit.
    (f) Within 30 days after receiving notice of certification,
the qualified community development entity shall (i) issue the
qualified equity investment and receive cash in the amount of
the certified amount and (ii) with respect to qualified equity
investments made on or after January 1, 2017, if applicable,
designate the required amount of qualified equity investment
authority as a federal qualified equity investment. The
qualified community development entity must provide the
Department with evidence of the receipt of the cash investment
within 10 business days after receipt and, with respect to
qualified equity investments made on or after January 1, 2017,
if applicable, provide evidence that the required amount of
qualified equity investment authority was designated as a
federal qualified equity investment. If the qualified
community development entity does not receive the cash
investment and issue the qualified equity investment within 30
days following receipt of the certification notice, the
certification shall lapse and the entity may not issue the
qualified equity investment without reapplying to the
Department for certification. A certification that lapses
reverts back to the Department and may be reissued only in
accordance with the application process outline in this Section
25.
    (g) Allocation rounds enabled by this Act shall be applied
for according to the following schedule:
        (1) on January 2, 2019, $125,000,000 of qualified
    equity investments; and
        (2) not less than 45 days after but not more than 90
    days after the Community Development Financial
    Institutions Fund of the United States Department of the
    Treasury announces allocation awards under a Notice of
    Funding Availability that is published in the Federal
    Register after September 6, 2019, on January 2, 2020,
    $125,000,000 of qualified equity investments.
(Source: P.A. 100-408, eff. 8-25-17.)
 
    Section 10-10. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois is
amended by changing Section 605-1025 as follows:
 
    (20 ILCS 605/605-1025)
    Sec. 605-1025. Data center investment.
    (a) The Department shall issue certificates of exemption
from the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act, and the Service Occupation Tax Act, all
locally-imposed retailers' occupation taxes administered and
collected by the Department, the Chicago non-titled Use Tax,
the Electricity Excise Tax Act, and a credit certification
against the taxes imposed under subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act to qualifying
Illinois data centers.
    (b) For taxable years beginning on or after January 1,
2019, the Department shall award credits against the taxes
imposed under subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act as provided in Section 229 of the
Illinois Income Tax Act.
    (c) For purposes of this Section:
        "Data center" means a facility: (1) whose primary
    services are the storage, management, and processing of
    digital data; and (2) that is used to house (i) computer
    and network systems, including associated components such
    as servers, network equipment and appliances,
    telecommunications, and data storage systems, (ii) systems
    for monitoring and managing infrastructure performance,
    (iii) Internet-related equipment and services, (iv) data
    communications connections, (v) environmental controls,
    (vi) fire protection systems, and (vii) security systems
    and services.
        "Qualifying Illinois data center" means a new or
    existing data center that:
            (1) is located in the State of Illinois;
            (2) in the case of an existing data center, made a
        capital investment of at least $250,000,000
        collectively by the data center operator and the
        tenants of the data center all of its data centers over
        the 60-month period immediately prior to January 1,
        2020 or committed to make a capital investment of at
        least $250,000,000 over a 60-month period commencing
        before January 1, 2020 and ending after January 1,
        2020; or
            (3) in the case of a new data center, or an
        existing data center making an upgrade, makes a capital
        investment of at least $250,000,000 over a 60-month
        period beginning on or after January 1, 2020; and
            (4) in the case of both existing and new data
        centers, results in the creation of at least 20
        full-time or full-time equivalent new jobs over a
        period of 60 months by the data center operator and the
        tenants of the data center, collectively, associated
        with the operation or maintenance of the data center;
        those jobs must have a total compensation equal to or
        greater than 120% of the average median wage paid to
        full-time employees in the county where the data center
        is located, as determined by the U.S. Bureau of Labor
        Statistics; and
            (5) within 90 days after being placed in service,
        certifies to the Department that it is carbon neutral
        or has attained attains certification under one or more
        of the following green building standards:
                (A) BREEAM for New Construction or BREEAM
            In-Use;
                (B) ENERGY STAR;
                (C) Envision;
                (D) ISO 50001-energy management;
                (E) LEED for Building Design and Construction
            or LEED for Operations and Maintenance;
                (F) Green Globes for New Construction or Green
            Globes for Existing Buildings;
                (G) UL 3223; or
                (H) an equivalent program approved by the
            Department of Commerce and Economic Opportunity.
        "Full-time equivalent job" means a job in which the new
    employee works for the owner, operator, contractor, or
    tenant of a data center or for a corporation under contract
    with the owner, operator or tenant of a data center at a
    rate of at least 35 hours per week. An owner, operator or
    tenant who employs labor or services at a specific site or
    facility under contract with another may declare one
    full-time, permanent job for every 1,820 man hours worked
    per year under that contract. Vacations, paid holidays, and
    sick time are included in this computation. Overtime is not
    considered a part of regular hours.
        "Qualified tangible personal property" means:
    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. "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.
    (d) New and existing data centers seeking a certificate of
exemption for new or existing facilities shall apply to the
Department in the manner specified by the Department. The
Department shall determine the duration of the certificate of
exemption awarded under this Act. The duration of the
certificate of exemption may not exceed 20 calendar years. The
Department and any data center seeking the exemption, including
a data center operator on behalf of itself and its tenants,
must enter into a memorandum of understanding that at a minimum
provides:
        (1) the details for determining the amount of capital
    investment to be made;
        (2) the number of new jobs created;
        (3) the timeline for achieving the capital investment
    and new job goals;
        (4) the repayment obligation should those goals not be
    achieved and any conditions under which repayment by the
    qualifying data center or data center tenant claiming the
    exemption will be required;
        (5) the duration of the exemption; and
        (6) other provisions as deemed necessary by the
    Department.
    (e) Beginning July 1, 2021, and each year thereafter, the
Department shall annually report to the Governor and the
General Assembly on the outcomes and effectiveness of Public
Act 101-31 this amendatory Act of the 101st General Assembly
that shall include the following:
        (1) the name of each recipient business;
        (2) the location of the project;
        (3) the estimated value of the credit;
        (4) the number of new jobs and, if applicable, retained
    jobs pledged as a result of the project; and
        (5) whether or not the project is located in an
    underserved area.
    (f) New and existing data centers seeking a certificate of
exemption related to the rehabilitation or construction of data
centers in the State shall require the contractor and all
subcontractors to comply with the requirements of Section 30-22
of the Illinois Procurement Code as they apply to responsible
bidders and to present satisfactory evidence of that compliance
to the Department.
    (g) New and existing data centers seeking a certificate of
exemption for the rehabilitation or construction of data
centers in the State shall require the contractor to enter into
a project labor agreement approved by the Department.
    (h) Any qualifying data center issued a certificate of
exemption under this Section must annually report to the
Department the total data center tax benefits that are received
by the business. Reports are due no later than May 31 of each
year and shall cover the previous calendar year. The first
report is for the 2019 calendar year and is due no later than
May 31, 2020.
    To the extent that a business issued a certificate of
exemption under this Section has obtained an Enterprise Zone
Building Materials Exemption Certificate or a High Impact
Business Building Materials Exemption Certificate, no
additional reporting for those building materials exemption
benefits is required under this Section.
    Failure to file a report under this subsection (h) may
result in suspension or revocation of the certificate of
exemption. The Department shall adopt rules governing
suspension or revocation of the certificate of exemption,
including the length of suspension. Factors to be considered in
determining whether a data center certificate of exemption
shall be suspended or revoked include, but are not limited to,
prior compliance with the reporting requirements, cooperation
in discontinuing and correcting violations, the extent of the
violation, and whether the violation was willful or
inadvertent.
    (i) The Department shall not issue any new certificates of
exemption under the provisions of this Section after July 1,
2029. This sunset shall not affect any existing certificates of
exemption in effect on July 1, 2029.
    (j) The Department shall adopt rules to implement and
administer this Section.
(Source: P.A. 101-31, eff. 6-28-19; revised 10-18-19.)
 
    Section 10-15. The State Finance Act is amended by adding
Section 8.53 as follows:
 
    (30 ILCS 105/8.53 new)
    Sec. 8.53. Fund transfers. As soon as practical after the
effective date of this amendatory Act of the 101st General
Assembly, for Fiscal Year 2020 only, the State Comptroller
shall direct and the State Treasurer shall transfer the amount
of $1,500,000 from the State and Local Sales Tax Reform Fund to
the Sound-Reducing Windows and Doors Replacement Fund. Any
amounts transferred under this Section shall be repaid no later
than June 30, 2020.
 
    Section 10-20. The Illinois Income Tax Act is amended by
changing Section 229 as follows:
 
    (35 ILCS 5/229)
    Sec. 229. Data center construction employment tax credit.
    (a) A taxpayer who has been awarded a credit by the
Department of Commerce and Economic Opportunity under Section
605-1025 of the Department of Commerce and Economic Opportunity
Law of the Civil Administrative Code of Illinois is entitled to
a credit against the taxes imposed under subsections (a) and
(b) of Section 201 of this Act. The amount of the credit shall
be 20% of the wages paid during the taxable year to a full-time
or part-time employee of a construction contractor employed by
a certified data center if those wages are paid for the
construction of a new data center in a geographic area that
meets any one of the following criteria:
        (1) the area has a poverty rate of at least 20%,
    according to the U.S. Census Bureau American Community
    Survey 5-Year Estimates latest federal decennial census;
        (2) 75% or more of the children in the area participate
    in the federal free lunch program, according to reported
    statistics from the State Board of Education;
        (3) 20% or more of the households in the area receive
    assistance under the Supplemental Nutrition Assistance
    Program (SNAP), according to data from the U.S. Census
    Bureau American Community Survey 5-year Estimates; or
        (4) the area has an average unemployment rate, as
    determined by the Department of Employment Security, that
    is more than 120% of the national unemployment average, as
    determined by the U.S. Department of Labor, for a period of
    at least 2 consecutive calendar years preceding the date of
    the application.
    If the taxpayer is a partnership, a Subchapter S
corporation, or a limited liability company that has elected
partnership tax treatment, the credit shall be allowed to the
partners, shareholders, or members in accordance with the
determination of income and distributive share of income under
Sections 702 and 704 and subchapter S of the Internal Revenue
Code, as applicable. The Department, in cooperation with the
Department of Commerce and Economic Opportunity, shall adopt
rules to enforce and administer this Section. This Section is
exempt from the provisions of Section 250 of this Act.
    (b) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
    (c) No credit shall be allowed with respect to any
certification for any taxable year ending after the revocation
of the certification by the Department of Commerce and Economic
Opportunity. Upon receiving notification by the Department of
Commerce and Economic Opportunity of the revocation of
certification, the Department shall notify the taxpayer that no
credit is allowed for any taxable year ending after the
revocation date, as stated in such notification. If any credit
has been allowed with respect to a certification for a taxable
year ending after the revocation date, any refund paid to the
taxpayer for that taxable year shall, to the extent of that
credit allowed, be an erroneous refund within the meaning of
Section 912 of this Act.
(Source: P.A. 101-31, eff. 6-28-19.)
 
    Section 10-25. The Use Tax Act is amended by changing
Sections 3-50 and 9 as follows:
 
    (35 ILCS 105/3-50)  (from Ch. 120, par. 439.3-50)
    Sec. 3-50. Manufacturing and assembly exemption. The
manufacturing and assembling machinery and equipment exemption
includes machinery and equipment that replaces machinery and
equipment in an existing manufacturing facility as well as
machinery and equipment that are for use in an expanded or new
manufacturing facility. The machinery and equipment exemption
also includes machinery and equipment used in the general
maintenance or repair of exempt machinery and equipment or for
in-house manufacture of exempt machinery and equipment.
Beginning on July 1, 2017, the manufacturing and assembling
machinery and equipment exemption also includes graphic arts
machinery and equipment, as defined in paragraph (6) of Section
3-5. The machinery and equipment exemption does not include
machinery and equipment used in (i) the generation of
electricity for wholesale or retail sale; (ii) the generation
or treatment of natural or artificial gas for wholesale or
retail sale that is delivered to customers through pipes,
pipelines, or mains; or (iii) the treatment of water for
wholesale or retail sale that is delivered to customers through
pipes, pipelines, or mains. The provisions of this amendatory
Act of the 98th General Assembly are declaratory of existing
law as to the meaning and scope of this exemption. For the
purposes of this exemption, terms have the following meanings:
        (1) "Manufacturing process" means the production of an
    article of tangible personal property, whether the article
    is a finished product or an article for use in the process
    of manufacturing or assembling a different article of
    tangible personal property, by a procedure commonly
    regarded as manufacturing, processing, fabricating, or
    refining that changes some existing material into a
    material with a different form, use, or name. In relation
    to a recognized integrated business composed of a series of
    operations that collectively constitute manufacturing, or
    individually constitute manufacturing operations, the
    manufacturing process commences with the first operation
    or stage of production in the series and does not end until
    the completion of the final product in the last operation
    or stage of production in the series. For purposes of this
    exemption, photoprocessing is a manufacturing process of
    tangible personal property for wholesale or retail sale.
        (2) "Assembling process" means the production of an
    article of tangible personal property, whether the article
    is a finished product or an article for use in the process
    of manufacturing or assembling a different article of
    tangible personal property, by the combination of existing
    materials in a manner commonly regarded as assembling that
    results in an article or material of a different form, use,
    or name.
        (3) "Machinery" means major mechanical machines or
    major components of those machines contributing to a
    manufacturing or assembling process.
        (4) "Equipment" includes an independent device or tool
    separate from machinery but essential to an integrated
    manufacturing or assembly process; including computers
    used primarily in a manufacturer's computer assisted
    design, computer assisted manufacturing (CAD/CAM) system;
    any subunit or assembly comprising a component of any
    machinery or auxiliary, adjunct, or attachment parts of
    machinery, such as tools, dies, jigs, fixtures, patterns,
    and molds; and any parts that require periodic replacement
    in the course of normal operation; but does not include
    hand tools. 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 product being manufactured or assembled for
    wholesale or retail sale or lease.
        (5) "Production related tangible personal property"
    means all tangible personal property that is used or
    consumed by the purchaser in a manufacturing facility in
    which a manufacturing process takes place and includes,
    without limitation, tangible personal property that is
    purchased for incorporation into real estate within a
    manufacturing facility, supplies and consumables used in a
    manufacturing facility including fuels, coolants,
    solvents, oils, lubricants, and adhesives, hand tools,
    protective apparel, and fire and safety equipment used or
    consumed within a manufacturing facility, and tangible
    personal property that is used or consumed in activities
    such as research and development, preproduction material
    handling, receiving, quality control, inventory control,
    storage, staging, and packaging for shipping and
    transportation purposes. "Production related tangible
    personal property" does not include (i) tangible personal
    property that is used, within or without a manufacturing
    facility, in sales, purchasing, accounting, fiscal
    management, marketing, personnel recruitment or selection,
    or landscaping or (ii) tangible personal property that is
    required to be titled or registered with a department,
    agency, or unit of federal, State, or local government.
    The manufacturing and assembling machinery and equipment
exemption includes production related tangible personal
property that is purchased on or after July 1, 2007 and on or
before June 30, 2008 and on or after July 1, 2019. The
exemption for production related tangible personal property
purchased on or after July 1, 2007 and on or before June 30,
2008 is subject to both of the following limitations:
        (1) The maximum amount of the exemption for any one
    taxpayer may not exceed 5% of the purchase price of
    production related tangible personal property that is
    purchased on or after July 1, 2007 and on or before June
    30, 2008. A credit under Section 3-85 of this Act may not
    be earned by the purchase of production related tangible
    personal property for which an exemption is received under
    this Section.
        (2) The maximum aggregate amount of the exemptions for
    production related tangible personal property purchased on
    or after July 1, 2007 and on or before June 30, 2008
    awarded under this Act and the Retailers' Occupation Tax
    Act to all taxpayers may not exceed $10,000,000. If the
    claims for the exemption exceed $10,000,000, then the
    Department shall reduce the amount of the exemption to each
    taxpayer on a pro rata basis.
The Department shall adopt rules to implement and administer
the exemption for production related tangible personal
property.
    The manufacturing and assembling machinery and equipment
exemption includes the sale of materials to a purchaser who
produces exempted types of machinery, equipment, or tools and
who rents or leases that machinery, equipment, or tools to a
manufacturer of tangible personal property. This exemption
also includes the sale of materials to a purchaser who
manufactures those materials into an exempted type of
machinery, equipment, or tools that the purchaser uses himself
or herself in the manufacturing of tangible personal property.
This exemption includes the sale of exempted types of machinery
or equipment to a purchaser who is not the manufacturer, but
who rents or leases the use of the property to a manufacturer.
The purchaser of the machinery and equipment who has an active
resale registration number shall furnish that number to the
seller at the time of purchase. A purchaser user of the
machinery, equipment, or tools without an active resale
registration number shall prepare a certificate of exemption
for each transaction stating facts establishing the exemption
for that transaction, and that certificate shall be available
to the Department for inspection or audit. The Department shall
prescribe the form of the certificate. Informal rulings,
opinions, or letters issued by the Department in response to an
inquiry or request for an opinion from any person regarding the
coverage and applicability of this exemption to specific
devices shall be published, maintained as a public record, and
made available for public inspection and copying. If the
informal ruling, opinion, or letter contains trade secrets or
other confidential information, where possible, the Department
shall delete that information before publication. Whenever
informal rulings, opinions, or letters contain a policy of
general applicability, the Department shall formulate and
adopt that policy as a rule in accordance with the Illinois
Administrative Procedure Act.
    The manufacturing and assembling machinery and equipment
exemption is exempt from the provisions of Section 3-90.
(Source: P.A. 100-22, eff. 7-6-17; 101-9, eff. 6-5-19.)
 
    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request. 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 are deposited into the State Aviation Program Fund under
this Act. In the case of retailers who report and pay the tax
on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax
remittance instead of when such retailer files his periodic
return. 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 retailers 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. A retailer need
not remit that part of any tax collected by him to the extent
that he is required to remit and does remit the tax imposed by
the Retailers' Occupation Tax Act, with respect to the sale of
the same property.
    Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period, only the tax applicable to that part of
the selling price actually received during such tax return
period.
    Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall be
filed on forms prescribed by the Department and shall furnish
such information as the Department may reasonably require. On
and after January 1, 2018, except for returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. Retailers 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 the business of selling tangible
    personal property at retail in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month from sales of tangible
    personal property by him during such preceding calendar
    month, including receipts from charge and time sales, but
    less all deductions allowed by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department
    may require.
    Each Beginning on January 1, 2020, each retailer required
or authorized to collect the tax imposed by this Act on
aviation fuel sold at retail in this State during the preceding
calendar month shall, instead of reporting and paying tax on
aviation fuel as otherwise required by this Section, report
file and pay such tax to the Department on a separate an
aviation fuel tax return, on or before the twentieth day of
each calendar month. The requirements related to the return
shall be as otherwise provided in this Section. Notwithstanding
any other provisions of this Act to the contrary, retailers
collecting tax on aviation fuel shall file all aviation fuel
tax returns and shall make all aviation fuel tax fee payments
by electronic means in the manner and form required by the
Department. For purposes of this Section paragraph, "aviation
fuel" means jet fuel and aviation gasoline a product that is
intended for use or offered for sale as fuel for an aircraft.
    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, retailers 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.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the Service
Use Tax Act was $10,000 or more during the preceding 4 complete
calendar quarters, he shall file a return with the Department
each month by the 20th day of the month next following the
month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th,
22nd and last day of the month during which such liability is
incurred. On and after October 1, 2000, if the taxpayer's
average monthly tax liability to the Department under this Act,
the Retailers' Occupation Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985, and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987, and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department shall continue until such taxpayer's average
monthly liability to the Department during the preceding 4
complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until such taxpayer's average monthly liability to
the Department as computed for each calendar quarter of the 4
preceding complete calendar quarter period is less than
$10,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $10,000 threshold stated above, then such
taxpayer may petition the Department for change in such
taxpayer's reporting status. On and after October 1, 2000, once
applicable, the requirement of the making of quarter monthly
payments to the Department shall continue until such taxpayer's
average monthly liability to the Department during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly liability
to the Department as computed for each calendar quarter of the
4 preceding complete calendar quarter period is less than
$20,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $20,000 threshold stated above, then such
taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such
taxpayer's reporting status unless it finds that such change is
seasonal in nature and not likely to be long term. If any such
quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between the
minimum amount due and the amount of such quarter monthly
payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the
Department in excess of the minimum payments previously due as
provided in this Section. The Department shall make reasonable
rules and regulations to govern the quarter monthly payment
amount and quarter monthly payment dates for taxpayers who file
on other than a calendar monthly basis.
    If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
be reduced by 2.1% or 1.75% of the difference between the
credit taken and that actually due, and the taxpayer shall be
liable for penalties and interest on such difference.
    If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of such
year; with the return for July, August and September of a given
year being due by October 20 of such year, and with the return
for October, November and December of a given year being due by
January 20 of the following year.
    If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle or
trailer retailer for the purpose of resale or (ii) a retailer
of aircraft, watercraft, motor vehicles, or trailers transfers
more than one aircraft, watercraft, motor vehicle, or trailer
to a purchaser for use as a qualifying rolling stock as
provided in Section 3-55 of this Act, then that seller may
report the transfer of all the aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means a
Class 2, Class 3, or Class 4 watercraft as defined in Section
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting the
transfer of all the aircraft, watercraft, motor vehicles, or
trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
    The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of the Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 2 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of the Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
    The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
    Such transaction reporting return shall be filed not later
than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
    With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois
certificate or other evidence of title or registration to such
tangible personal property.
    No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
    If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
    Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the retailer may deduct the amount of the tax so
refunded by him to the purchaser from any other use tax which
such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
    Any retailer filing a return under this Section shall also
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
    If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
    Where the retailer has more than one business registered
with the Department under separate registration under this Act,
such retailer may not file each return that is due as a single
return covering all such registered businesses, but shall file
separate returns for each such registered business.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax
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
net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal property
which is purchased outside Illinois at retail from a retailer
and which is titled or registered by an agency of this State's
government.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than (i) tangible
personal property which is purchased outside Illinois at retail
from a retailer and which is titled or registered by an agency
of this State's government and (ii) 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 Fuels 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 State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
State and Local Sales Tax Reform Fund 100% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
    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, 2011, each month the Department shall pay
into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act Permit Fund under this Act and
the Retailers' Occupation Tax Act shall not exceed $2,000,000
in any fiscal year.
    Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation 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 Service Use Tax Act, the Service Occupation 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 this Act, the Service Use Tax
Act, the Service Occupation Tax 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 Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (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.
Fiscal YearTotal 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
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
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 Clean Air Act Permit 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 (except the amount
collected on aviation fuel sold on or after December 1, 2019).
    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 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 55 of
the Public-Private Partnership for Civic and Transit
Infrastructure Project Act. As used in this paragraph, "civic
build", "private entity", "public-private private public
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 State and Local Sales Tax
Reform 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
State and Local Sales Tax Reform 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 State and Local Sales Tax Reform 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 State and
Local Sales Tax Reform 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 State
and Local Sales Tax Reform 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 Act, and "gasohol" has the
meaning given to that term in Section 3-40 of this Act.
    Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
    For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
15, Section 15-10, eff. 6-5-19; 101-10, Article 25, Section
25-105, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
6-28-19; revised 7-29-19.)
 
    Section 10-30. The Service Use Tax Act is amended by
changing Sections 2 and 9 as follows:
 
    (35 ILCS 110/2)  (from Ch. 120, par. 439.32)
    Sec. 2. Definitions. In this Act:
    "Use" means the exercise by any person of any right or
power over tangible personal property incident to the ownership
of that property, but does not include the sale or use for
demonstration by him of that property in any form as tangible
personal property in the regular course of business. "Use" does
not mean the interim use of tangible personal property nor the
physical incorporation of tangible personal property, as an
ingredient or constituent, into other tangible personal
property, (a) which is sold in the regular course of business
or (b) which the person incorporating such ingredient or
constituent therein has undertaken at the time of such purchase
to cause to be transported in interstate commerce to
destinations outside the State of Illinois.
    "Purchased from a serviceman" means the acquisition of the
ownership of, or title to, tangible personal property through a
sale of service.
    "Purchaser" means any person who, through a sale of
service, acquires the ownership of, or title to, any tangible
personal property.
    "Cost price" means the consideration paid by the serviceman
for a purchase valued in money, whether paid in money or
otherwise, including cash, credits and services, and shall be
determined without any deduction on account of the supplier's
cost of the property sold or on account of any other expense
incurred by the supplier. When a serviceman contracts out part
or all of the services required in his sale of service, it
shall be presumed that the cost price to the serviceman of the
property transferred to him or her by his or her subcontractor
is equal to 50% of the subcontractor's charges to the
serviceman in the absence of proof of the consideration paid by
the subcontractor for the purchase of such property.
    "Selling price" means the consideration for a sale valued
in money whether received in money or otherwise, including
cash, credits and service, and shall be determined without any
deduction on account of the serviceman's cost of the property
sold, the cost of materials used, labor or service cost or any
other expense whatsoever, but does not include interest or
finance charges which appear as separate items on the bill of
sale or sales contract nor charges that are added to prices by
sellers on account of the seller's duty to collect, from the
purchaser, the tax that is imposed by this Act.
    "Department" means the Department of Revenue.
    "Person" means any natural individual, firm, partnership,
association, joint stock company, joint venture, public or
private corporation, limited liability company, and any
receiver, executor, trustee, guardian or other representative
appointed by order of any court.
    "Sale of service" means any transaction except:
        (1) a retail sale of tangible personal property taxable
    under the Retailers' Occupation Tax Act or under the Use
    Tax Act.
        (2) a sale of tangible personal property for the
    purpose of resale made in compliance with Section 2c of the
    Retailers' Occupation Tax Act.
        (3) except as hereinafter provided, a sale or transfer
    of tangible personal property as an incident to the
    rendering of service for or by any governmental body, or
    for or by any corporation, society, association,
    foundation or institution organized and operated
    exclusively for charitable, religious or educational
    purposes or any not-for-profit corporation, society,
    association, foundation, institution or organization which
    has no compensated officers or employees and which is
    organized and operated primarily for the recreation of
    persons 55 years of age or older. A limited liability
    company may qualify for the exemption under this paragraph
    only if the limited liability company is organized and
    operated exclusively for educational purposes.
        (4) (blank).
        (4a) a sale or transfer of tangible personal property
    as an incident to the rendering of service for owners,
    lessors, or shippers of tangible personal property which is
    utilized by interstate carriers for hire for use as rolling
    stock moving in interstate commerce so long as so used by
    interstate carriers for hire, and equipment operated by a
    telecommunications provider, licensed as a common carrier
    by the Federal Communications Commission, which is
    permanently installed in or affixed to aircraft moving in
    interstate commerce.
        (4a-5) on and after July 1, 2003 and through June 30,
    2004, a sale or transfer of a motor vehicle of the second
    division with a gross vehicle weight in excess of 8,000
    pounds as an incident to the rendering of service if that
    motor vehicle is subject to the commercial distribution fee
    imposed under Section 3-815.1 of the Illinois Vehicle Code.
    Beginning on July 1, 2004 and through June 30, 2005, the
    use in this State of motor vehicles of the second division:
    (i) with a gross vehicle weight rating in excess of 8,000
    pounds; (ii) that are subject to the commercial
    distribution fee imposed under Section 3-815.1 of the
    Illinois Vehicle Code; and (iii) that are primarily used
    for commercial purposes. Through June 30, 2005, this
    exemption applies to repair and replacement parts added
    after the initial purchase of such a motor vehicle if that
    motor vehicle is used in a manner that would qualify for
    the rolling stock exemption otherwise provided for in this
    Act. For purposes of this paragraph, "used for commercial
    purposes" means the transportation of persons or property
    in furtherance of any commercial or industrial enterprise
    whether for-hire or not.
        (5) a sale or transfer of machinery and equipment used
    primarily in the process of the manufacturing or
    assembling, either in an existing, an expanded or a new
    manufacturing facility, of tangible personal property for
    wholesale or retail sale or lease, whether such sale or
    lease is made directly by the manufacturer or by some other
    person, whether the materials used in the process are owned
    by the manufacturer or some other person, or whether such
    sale or lease is made apart from or as an incident to the
    seller's engaging in a service occupation and the
    applicable tax is a Service Use Tax or Service Occupation
    Tax, rather than Use Tax or Retailers' Occupation Tax. The
    exemption provided by this paragraph (5) includes
    production related tangible personal property, as defined
    in Section 3-50 of the Use Tax Act, purchased on or after
    July 1, 2019. The exemption provided by this paragraph (5)
    does not include machinery and equipment used in (i) the
    generation of electricity for wholesale or retail sale;
    (ii) the generation or treatment of natural or artificial
    gas for wholesale or retail sale that is delivered to
    customers through pipes, pipelines, or mains; or (iii) the
    treatment of water for wholesale or retail sale that is
    delivered to customers through pipes, pipelines, or mains.
    The provisions of Public Act 98-583 are declaratory of
    existing law as to the meaning and scope of this exemption.
    The exemption under this paragraph (5) is exempt from the
    provisions of Section 3-75.
        (5a) the repairing, reconditioning or remodeling, for
    a common carrier by rail, of tangible personal property
    which belongs to such carrier for hire, and as to which
    such carrier receives the physical possession of the
    repaired, reconditioned or remodeled item of tangible
    personal property in Illinois, and which such carrier
    transports, or shares with another common carrier in the
    transportation of such property, out of Illinois on a
    standard uniform bill of lading showing the person who
    repaired, reconditioned or remodeled the property to a
    destination outside Illinois, for use outside Illinois.
        (5b) a sale or transfer of tangible personal property
    which is produced by the seller thereof on special order in
    such a way as to have made the applicable tax the Service
    Occupation Tax or the Service Use Tax, rather than the
    Retailers' Occupation Tax or the Use Tax, for an interstate
    carrier by rail which receives the physical possession of
    such property in Illinois, and which transports such
    property, or shares with another common carrier in the
    transportation of such property, out of Illinois on a
    standard uniform bill of lading showing the seller of the
    property as the shipper or consignor of such property to a
    destination outside Illinois, for use outside Illinois.
        (6) until July 1, 2003, a sale or transfer of
    distillation machinery and equipment, sold as a unit or kit
    and assembled or installed by the retailer, which machinery
    and equipment is certified by the user to be used only for
    the production of ethyl alcohol that will be used for
    consumption as motor fuel or as a component of motor fuel
    for the personal use of such user and not subject to sale
    or resale.
        (7) at the election of any serviceman not required to
    be otherwise registered as a retailer under Section 2a of
    the Retailers' Occupation Tax Act, made for each fiscal
    year sales of service in which the aggregate annual cost
    price of tangible personal property transferred as an
    incident to the sales of service is less than 35%, or 75%
    in the case of servicemen transferring prescription drugs
    or servicemen engaged in graphic arts production, of the
    aggregate annual total gross receipts from all sales of
    service. The purchase of such tangible personal property by
    the serviceman shall be subject to tax under the Retailers'
    Occupation Tax Act and the Use Tax Act. However, if a
    primary serviceman who has made the election described in
    this paragraph subcontracts service work to a secondary
    serviceman who has also made the election described in this
    paragraph, the primary serviceman does not incur a Use Tax
    liability if the secondary serviceman (i) has paid or will
    pay Use Tax on his or her cost price of any tangible
    personal property transferred to the primary serviceman
    and (ii) certifies that fact in writing to the primary
    serviceman.
    Tangible personal property transferred incident to the
completion of a maintenance agreement is exempt from the tax
imposed pursuant to this Act.
    Exemption (5) also includes machinery and equipment used in
the general maintenance or repair of such exempt machinery and
equipment or for in-house manufacture of exempt machinery and
equipment. On and after July 1, 2017, exemption (5) also
includes graphic arts machinery and equipment, as defined in
paragraph (5) of Section 3-5. The machinery and equipment
exemption does not include machinery and equipment used in (i)
the generation of electricity for wholesale or retail sale;
(ii) the generation or treatment of natural or artificial gas
for wholesale or retail sale that is delivered to customers
through pipes, pipelines, or mains; or (iii) the treatment of
water for wholesale or retail sale that is delivered to
customers through pipes, pipelines, or mains. The provisions of
Public Act 98-583 are declaratory of existing law as to the
meaning and scope of this exemption. For the purposes of
exemption (5), each of these terms shall have the following
meanings: (1) "manufacturing process" shall mean the
production of any article of tangible personal property,
whether such article is a finished product or an article for
use in the process of manufacturing or assembling a different
article of tangible personal property, by procedures commonly
regarded as manufacturing, processing, fabricating, or
refining which changes some existing material or materials into
a material with a different form, use or name. In relation to a
recognized integrated business composed of a series of
operations which collectively constitute manufacturing, or
individually constitute manufacturing operations, the
manufacturing process shall be deemed to commence with the
first operation or stage of production in the series, and shall
not be deemed to end until the completion of the final product
in the last operation or stage of production in the series; and
further, for purposes of exemption (5), photoprocessing is
deemed to be a manufacturing process of tangible personal
property for wholesale or retail sale; (2) "assembling process"
shall mean the production of any article of tangible personal
property, whether such article is a finished product or an
article for use in the process of manufacturing or assembling a
different article of tangible personal property, by the
combination of existing materials in a manner commonly regarded
as assembling which results in a material of a different form,
use or name; (3) "machinery" shall mean major mechanical
machines or major components of such machines contributing to a
manufacturing or assembling process; and (4) "equipment" shall
include any independent device or tool separate from any
machinery but essential to an integrated manufacturing or
assembly process; including computers used primarily in a
manufacturer's computer assisted design, computer assisted
manufacturing (CAD/CAM) system; or any subunit or assembly
comprising a component of any machinery or auxiliary, adjunct
or attachment parts of machinery, such as tools, dies, jigs,
fixtures, patterns and molds; or any parts which require
periodic replacement in the course of normal operation; but
shall not include hand tools. 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 product being manufactured or assembled for
wholesale or retail sale or lease. The purchaser of such
machinery and equipment who has an active resale registration
number shall furnish such number to the seller at the time of
purchase. The purchaser user of such machinery and equipment
and tools without an active resale registration number shall
prepare a certificate of exemption for each transaction stating
facts establishing the exemption for that transaction, which
certificate shall be available to the Department for inspection
or audit. The Department shall prescribe the form of the
certificate.
    Any informal rulings, opinions or letters issued by the
Department in response to an inquiry or request for any opinion
from any person regarding the coverage and applicability of
exemption (5) to specific devices shall be published,
maintained as a public record, and made available for public
inspection and copying. If the informal ruling, opinion or
letter contains trade secrets or other confidential
information, where possible the Department shall delete such
information prior to publication. Whenever such informal
rulings, opinions, or letters contain any policy of general
applicability, the Department shall formulate and adopt such
policy as a rule in accordance with the provisions of the
Illinois Administrative Procedure Act.
    On and after July 1, 1987, no entity otherwise eligible
under exemption (3) of this Section shall make tax-free
purchases unless it has an active exemption identification
number issued by the Department.
    The purchase, employment and transfer of such tangible
personal property as newsprint and ink for the primary purpose
of conveying news (with or without other information) is not a
purchase, use or sale of service or of tangible personal
property within the meaning of this Act.
    "Serviceman" means any person who is engaged in the
occupation of making sales of service.
    "Sale at retail" means "sale at retail" as defined in the
Retailers' Occupation Tax Act.
    "Supplier" means any person who makes sales of tangible
personal property to servicemen for the purpose of resale as an
incident to a sale of service.
    "Serviceman maintaining a place of business in this State",
or any like term, means and includes any serviceman:
        (1) having or maintaining within this State, directly
    or by a subsidiary, an office, distribution house, sales
    house, warehouse or other place of business, or any agent
    or other representative operating within this State under
    the authority of the serviceman or its subsidiary,
    irrespective of whether such place of business or agent or
    other representative is located here permanently or
    temporarily, or whether such serviceman or subsidiary is
    licensed to do business in this State;
        (1.1) having a contract with a person located in this
    State under which the person, for a commission or other
    consideration based on the sale of service by the
    serviceman, directly or indirectly refers potential
    customers to the serviceman by providing to the potential
    customers a promotional code or other mechanism that allows
    the serviceman to track purchases referred by such persons.
    Examples of mechanisms that allow the serviceman to track
    purchases referred by such persons include but are not
    limited to the use of a link on the person's Internet
    website, promotional codes distributed through the
    person's hand-delivered or mailed material, and
    promotional codes distributed by the person through radio
    or other broadcast media. The provisions of this paragraph
    (1.1) shall apply only if the cumulative gross receipts
    from sales of service by the serviceman to customers who
    are referred to the serviceman by all persons in this State
    under such contracts exceed $10,000 during the preceding 4
    quarterly periods ending on the last day of March, June,
    September, and December; a serviceman meeting the
    requirements of this paragraph (1.1) shall be presumed to
    be maintaining a place of business in this State but may
    rebut this presumption by submitting proof that the
    referrals or other activities pursued within this State by
    such persons were not sufficient to meet the nexus
    standards of the United States Constitution during the
    preceding 4 quarterly periods;
        (1.2) beginning July 1, 2011, having a contract with a
    person located in this State under which:
            (A) the serviceman sells the same or substantially
        similar line of services as the person located in this
        State and does so using an identical or substantially
        similar name, trade name, or trademark as the person
        located in this State; and
            (B) the serviceman provides a commission or other
        consideration to the person located in this State based
        upon the sale of services by the serviceman.
    The provisions of this paragraph (1.2) shall apply only if
    the cumulative gross receipts from sales of service by the
    serviceman to customers in this State under all such
    contracts exceed $10,000 during the preceding 4 quarterly
    periods ending on the last day of March, June, September,
    and December;
        (2) soliciting orders for tangible personal property
    by means of a telecommunication or television shopping
    system (which utilizes toll free numbers) which is intended
    by the retailer to be broadcast by cable television or
    other means of broadcasting, to consumers located in this
    State;
        (3) pursuant to a contract with a broadcaster or
    publisher located in this State, soliciting orders for
    tangible personal property by means of advertising which is
    disseminated primarily to consumers located in this State
    and only secondarily to bordering jurisdictions;
        (4) soliciting orders for tangible personal property
    by mail if the solicitations are substantial and recurring
    and if the retailer benefits from any banking, financing,
    debt collection, telecommunication, or marketing
    activities occurring in this State or benefits from the
    location in this State of authorized installation,
    servicing, or repair facilities;
        (5) being owned or controlled by the same interests
    which own or control any retailer engaging in business in
    the same or similar line of business in this State;
        (6) having a franchisee or licensee operating under its
    trade name if the franchisee or licensee is required to
    collect the tax under this Section;
        (7) pursuant to a contract with a cable television
    operator located in this State, soliciting orders for
    tangible personal property by means of advertising which is
    transmitted or distributed over a cable television system
    in this State;
        (8) engaging in activities in Illinois, which
    activities in the state in which the supply business
    engaging in such activities is located would constitute
    maintaining a place of business in that state; or
        (9) beginning October 1, 2018, making sales of service
    to purchasers in Illinois from outside of Illinois if:
            (A) the cumulative gross receipts from sales of
        service to purchasers in Illinois are $100,000 or more;
        or
            (B) the serviceman enters into 200 or more separate
        transactions for sales of service to purchasers in
        Illinois.
        The serviceman shall determine on a quarterly basis,
    ending on the last day of March, June, September, and
    December, whether he or she meets the criteria of either
    subparagraph (A) or (B) of this paragraph (9) for the
    preceding 12-month period. If the serviceman meets the
    criteria of either subparagraph (A) or (B) for a 12-month
    period, he or she is considered a serviceman maintaining a
    place of business in this State and is required to collect
    and remit the tax imposed under this Act and file returns
    for one year. At the end of that one-year period, the
    serviceman shall determine whether the serviceman met the
    criteria of either subparagraph (A) or (B) during the
    preceding 12-month period. If the serviceman met the
    criteria in either subparagraph (A) or (B) for the
    preceding 12-month period, he or she is considered a
    serviceman maintaining a place of business in this State
    and is required to collect and remit the tax imposed under
    this Act and file returns for the subsequent year. If at
    the end of a one-year period a serviceman that was required
    to collect and remit the tax imposed under this Act
    determines that he or she did not meet the criteria in
    either subparagraph (A) or (B) during the preceding
    12-month period, the serviceman subsequently shall
    determine on a quarterly basis, ending on the last day of
    March, June, September, and December, whether he or she
    meets the criteria of either subparagraph (A) or (B) for
    the preceding 12-month period.
        Beginning January 1, 2020, neither the gross receipts
    from nor the number of separate transactions for sales of
    service to purchasers in Illinois that a serviceman makes
    through a marketplace facilitator and for which the
    serviceman has received a certification from the
    marketplace facilitator pursuant to Section 2d of this Act
    shall be included for purposes of determining whether he or
    she has met the thresholds of this paragraph (9).
        (10) Beginning January 1, 2020, a marketplace
    facilitator, as defined in Section 2d of this Act.
(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
100-587, eff. 6-4-18; 100-863, eff. 8-14-18; 101-9, Article 10,
Section 10-15, eff. 6-5-19; 101-9, Article 25, Section 25-10,
eff. 6-5-19; revised 7-10-19.)
 
    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
    Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax, keeping
records, preparing and filing returns, remitting the tax and
supplying data to the Department on request. 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 are
deposited into the State Aviation Program Fund under this Act.
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. A serviceman need
not remit that part of any tax collected by him to the extent
that he is required to pay and does pay the tax imposed by the
Service Occupation Tax Act with respect to his sale of service
involving the incidental transfer by him of the same property.
    Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable Rules and Regulations to be
promulgated by the Department. Such return shall be filed on a
form prescribed by the Department and shall contain such
information as the Department may reasonably require. 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;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month, including receipts
    from charge and time sales, but less all deductions allowed
    by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department
    may require.
    Each Beginning on January 1, 2020, each serviceman required
or authorized to collect the tax imposed by this Act on
aviation fuel transferred as an incident of a sale of service
in this State during the preceding calendar month shall,
instead of reporting and paying tax on aviation fuel as
otherwise required by this Section, report and pay such the tax
on a separate by filing an aviation fuel tax return with the
Department on or before the twentieth day of each calendar
month. 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 collecting
tax on aviation fuel 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 paragraph, "aviation fuel" means jet
fuel and aviation gasoline a product that is intended for use
or offered for sale as fuel for an aircraft.
    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.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
    If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
    Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds the
selling price thereof to the purchaser, such serviceman shall
also refund, to the purchaser, the tax so collected from the
purchaser. When filing his return for the period in which he
refunds such tax to the purchaser, the serviceman may deduct
the amount of the tax so refunded by him to the purchaser from
any other Service Use Tax, Service Occupation Tax, retailers'
occupation tax or use tax which such serviceman may be required
to pay or remit to the Department, as shown by such return,
provided that the amount of the tax to be deducted shall
previously have been remitted to the Department by such
serviceman. If the serviceman shall not previously have
remitted the amount of such tax to the Department, he shall be
entitled to no deduction hereunder upon refunding such tax to
the purchaser.
    Any serviceman filing a return hereunder shall also include
the total tax upon the selling price of tangible personal
property purchased for use by him as an incident to a sale of
service, and such serviceman shall remit the amount of such tax
to the Department when filing such return.
    If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
    Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State Treasury, the net revenue realized for the preceding
month from the 1% tax imposed under this Act.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than (i) tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government and (ii)
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 State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
    Beginning 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
Occupation 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 Occupation 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, this Act, the
Service Occupation Tax 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 Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (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.
Fiscal YearTotal 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
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
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 Clean Air Act Permit 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 (except the amount
collected on aviation fuel sold on or after December 1, 2019).
    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 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 55 of
the Public-Private Partnership for Civic and Transit
Infrastructure Project Act. As used in this paragraph, "civic
build", "private entity", "public-private private public
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 State and Local Sales Tax
Reform 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
State and Local Sales Tax Reform 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 State and Local Sales Tax Reform 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 State and
Local Sales Tax Reform 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 State
and Local Sales Tax Reform 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 Act, 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% thereof 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.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
15, Section 15-15, eff. 6-5-19; 101-10, Article 25, Section
25-110, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
6-28-19; revised 8-20-19.)
 
    Section 10-35. The Service Occupation Tax Act is amended by
changing Sections 2 and 9 as follows:
 
    (35 ILCS 115/2)  (from Ch. 120, par. 439.102)
    Sec. 2. In this Act:
    "Transfer" means any transfer of the title to property or
of the ownership of property whether or not the transferor
retains title as security for the payment of amounts due him
from the transferee.
    "Cost Price" means the consideration paid by the serviceman
for a purchase valued in money, whether paid in money or
otherwise, including cash, credits and services, and shall be
determined without any deduction on account of the supplier's
cost of the property sold or on account of any other expense
incurred by the supplier. When a serviceman contracts out part
or all of the services required in his sale of service, it
shall be presumed that the cost price to the serviceman of the
property transferred to him by his or her subcontractor is
equal to 50% of the subcontractor's charges to the serviceman
in the absence of proof of the consideration paid by the
subcontractor for the purchase of such property.
    "Department" means the Department of Revenue.
    "Person" means any natural individual, firm, partnership,
association, joint stock company, joint venture, public or
private corporation, limited liability company, and any
receiver, executor, trustee, guardian or other representative
appointed by order of any court.
    "Sale of Service" means any transaction except:
    (a) A retail sale of tangible personal property taxable
under the Retailers' Occupation Tax Act or under the Use Tax
Act.
    (b) A sale of tangible personal property for the purpose of
resale made in compliance with Section 2c of the Retailers'
Occupation Tax Act.
    (c) Except as hereinafter provided, a sale or transfer of
tangible personal property as an incident to the rendering of
service for or by any governmental body or for or by any
corporation, society, association, foundation or institution
organized and operated exclusively for charitable, religious
or educational purposes or any not-for-profit corporation,
society, association, foundation, institution or organization
which has no compensated officers or employees and which is
organized and operated primarily for the recreation of persons
55 years of age or older. A limited liability company may
qualify for the exemption under this paragraph only if the
limited liability company is organized and operated
exclusively for educational purposes.
    (d) (Blank).
    (d-1) A sale or transfer of tangible personal property as
an incident to the rendering of service for owners, lessors or
shippers of tangible personal property which is utilized by
interstate carriers for hire for use as rolling stock moving in
interstate commerce, and equipment operated by a
telecommunications provider, licensed as a common carrier by
the Federal Communications Commission, which is permanently
installed in or affixed to aircraft moving in interstate
commerce.
    (d-1.1) On and after July 1, 2003 and through June 30,
2004, a sale or transfer of a motor vehicle of the second
division with a gross vehicle weight in excess of 8,000 pounds
as an incident to the rendering of service if that motor
vehicle is subject to the commercial distribution fee imposed
under Section 3-815.1 of the Illinois Vehicle Code. Beginning
on July 1, 2004 and through June 30, 2005, the use in this
State of motor vehicles of the second division: (i) with a
gross vehicle weight rating in excess of 8,000 pounds; (ii)
that are subject to the commercial distribution fee imposed
under Section 3-815.1 of the Illinois Vehicle Code; and (iii)
that are primarily used for commercial purposes. Through June
30, 2005, this exemption applies to repair and replacement
parts added after the initial purchase of such a motor vehicle
if that motor vehicle is used in a manner that would qualify
for the rolling stock exemption otherwise provided for in this
Act. For purposes of this paragraph, "used for commercial
purposes" means the transportation of persons or property in
furtherance of any commercial or industrial enterprise whether
for-hire or not.
    (d-2) The repairing, reconditioning or remodeling, for a
common carrier by rail, of tangible personal property which
belongs to such carrier for hire, and as to which such carrier
receives the physical possession of the repaired,
reconditioned or remodeled item of tangible personal property
in Illinois, and which such carrier transports, or shares with
another common carrier in the transportation of such property,
out of Illinois on a standard uniform bill of lading showing
the person who repaired, reconditioned or remodeled the
property as the shipper or consignor of such property to a
destination outside Illinois, for use outside Illinois.
    (d-3) A sale or transfer of tangible personal property
which is produced by the seller thereof on special order in
such a way as to have made the applicable tax the Service
Occupation Tax or the Service Use Tax, rather than the
Retailers' Occupation Tax or the Use Tax, for an interstate
carrier by rail which receives the physical possession of such
property in Illinois, and which transports such property, or
shares with another common carrier in the transportation of
such property, out of Illinois on a standard uniform bill of
lading showing the seller of the property as the shipper or
consignor of such property to a destination outside Illinois,
for use outside Illinois.
    (d-4) Until January 1, 1997, a sale, by a registered
serviceman paying tax under this Act to the Department, of
special order printed materials delivered outside Illinois and
which are not returned to this State, if delivery is made by
the seller or agent of the seller, including an agent who
causes the product to be delivered outside Illinois by a common
carrier or the U.S. postal service.
    (e) A sale or transfer of machinery and equipment used
primarily in the process of the manufacturing or assembling,
either in an existing, an expanded or a new manufacturing
facility, of tangible personal property for wholesale or retail
sale or lease, whether such sale or lease is made directly by
the manufacturer or by some other person, whether the materials
used in the process are owned by the manufacturer or some other
person, or whether such sale or lease is made apart from or as
an incident to the seller's engaging in a service occupation
and the applicable tax is a Service Occupation Tax or Service
Use Tax, rather than Retailers' Occupation Tax or Use Tax. The
exemption provided by this paragraph (e) includes production
related tangible personal property, as defined in Section 3-50
of the Use Tax Act, purchased on or after July 1, 2019. The
exemption provided by this paragraph (e) does not include
machinery and equipment used in (i) the generation of
electricity for wholesale or retail sale; (ii) the generation
or treatment of natural or artificial gas for wholesale or
retail sale that is delivered to customers through pipes,
pipelines, or mains; or (iii) the treatment of water for
wholesale or retail sale that is delivered to customers through
pipes, pipelines, or mains. The provisions of Public Act 98-583
are declaratory of existing law as to the meaning and scope of
this exemption. The exemption under this subsection (e) is
exempt from the provisions of Section 3-75.
    (f) Until July 1, 2003, the sale or transfer of
distillation machinery and equipment, sold as a unit or kit and
assembled or installed by the retailer, which machinery and
equipment is certified by the user to be used only for the
production of ethyl alcohol that will be used for consumption
as motor fuel or as a component of motor fuel for the personal
use of such user and not subject to sale or resale.
    (g) At the election of any serviceman not required to be
otherwise registered as a retailer under Section 2a of the
Retailers' Occupation Tax Act, made for each fiscal year sales
of service in which the aggregate annual cost price of tangible
personal property transferred as an incident to the sales of
service is less than 35% (75% in the case of servicemen
transferring prescription drugs or servicemen engaged in
graphic arts production) of the aggregate annual total gross
receipts from all sales of service. The purchase of such
tangible personal property by the serviceman shall be subject
to tax under the Retailers' Occupation Tax Act and the Use Tax
Act. However, if a primary serviceman who has made the election
described in this paragraph subcontracts service work to a
secondary serviceman who has also made the election described
in this paragraph, the primary serviceman does not incur a Use
Tax liability if the secondary serviceman (i) has paid or will
pay Use Tax on his or her cost price of any tangible personal
property transferred to the primary serviceman and (ii)
certifies that fact in writing to the primary serviceman.
    Tangible personal property transferred incident to the
completion of a maintenance agreement is exempt from the tax
imposed pursuant to this Act.
    Exemption (e) also includes machinery and equipment used in
the general maintenance or repair of such exempt machinery and
equipment or for in-house manufacture of exempt machinery and
equipment. On and after July 1, 2017, exemption (e) also
includes graphic arts machinery and equipment, as defined in
paragraph (5) of Section 3-5. The machinery and equipment
exemption does not include machinery and equipment used in (i)
the generation of electricity for wholesale or retail sale;
(ii) the generation or treatment of natural or artificial gas
for wholesale or retail sale that is delivered to customers
through pipes, pipelines, or mains; or (iii) the treatment of
water for wholesale or retail sale that is delivered to
customers through pipes, pipelines, or mains. The provisions of
Public Act 98-583 are declaratory of existing law as to the
meaning and scope of this exemption. For the purposes of
exemption (e), each of these terms shall have the following
meanings: (1) "manufacturing process" shall mean the
production of any article of tangible personal property,
whether such article is a finished product or an article for
use in the process of manufacturing or assembling a different
article of tangible personal property, by procedures commonly
regarded as manufacturing, processing, fabricating, or
refining which changes some existing material or materials into
a material with a different form, use or name. In relation to a
recognized integrated business composed of a series of
operations which collectively constitute manufacturing, or
individually constitute manufacturing operations, the
manufacturing process shall be deemed to commence with the
first operation or stage of production in the series, and shall
not be deemed to end until the completion of the final product
in the last operation or stage of production in the series; and
further for purposes of exemption (e), photoprocessing is
deemed to be a manufacturing process of tangible personal
property for wholesale or retail sale; (2) "assembling process"
shall mean the production of any article of tangible personal
property, whether such article is a finished product or an
article for use in the process of manufacturing or assembling a
different article of tangible personal property, by the
combination of existing materials in a manner commonly regarded
as assembling which results in a material of a different form,
use or name; (3) "machinery" shall mean major mechanical
machines or major components of such machines contributing to a
manufacturing or assembling process; and (4) "equipment" shall
include any independent device or tool separate from any
machinery but essential to an integrated manufacturing or
assembly process; including computers used primarily in a
manufacturer's computer assisted design, computer assisted
manufacturing (CAD/CAM) system; or any subunit or assembly
comprising a component of any machinery or auxiliary, adjunct
or attachment parts of machinery, such as tools, dies, jigs,
fixtures, patterns and molds; or any parts which require
periodic replacement in the course of normal operation; but
shall not include hand tools. 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 product being manufactured or assembled for
wholesale or retail sale or lease. The purchaser of such
machinery and equipment who has an active resale registration
number shall furnish such number to the seller at the time of
purchase. The purchaser of such machinery and equipment and
tools without an active resale registration number shall
furnish to the seller a certificate of exemption for each
transaction stating facts establishing the exemption for that
transaction, which certificate shall be available to the
Department for inspection or audit.
    Except as provided in Section 2d of this Act, the rolling
stock exemption applies to rolling stock used by an interstate
carrier for hire, even just between points in Illinois, if such
rolling stock transports, for hire, persons whose journeys or
property whose shipments originate or terminate outside
Illinois.
    Any informal rulings, opinions or letters issued by the
Department in response to an inquiry or request for any opinion
from any person regarding the coverage and applicability of
exemption (e) to specific devices shall be published,
maintained as a public record, and made available for public
inspection and copying. If the informal ruling, opinion or
letter contains trade secrets or other confidential
information, where possible the Department shall delete such
information prior to publication. Whenever such informal
rulings, opinions, or letters contain any policy of general
applicability, the Department shall formulate and adopt such
policy as a rule in accordance with the provisions of the
Illinois Administrative Procedure Act.
    On and after July 1, 1987, no entity otherwise eligible
under exemption (c) of this Section shall make tax-free
purchases unless it has an active exemption identification
number issued by the Department.
    "Serviceman" means any person who is engaged in the
occupation of making sales of service.
    "Sale at Retail" means "sale at retail" as defined in the
Retailers' Occupation Tax Act.
    "Supplier" means any person who makes sales of tangible
personal property to servicemen for the purpose of resale as an
incident to a sale of service.
(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
100-863, eff. 8-14-18; 101-9, eff. 6-5-19.)
 
    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
    Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax at the time when he is required to file his return
for the period during which such tax was collectible, less a
discount of 2.1% prior to January 1, 1990, and 1.75% on and
after January 1, 1990, or $5 per calendar year, whichever is
greater, which is allowed to reimburse the serviceman for
expenses incurred in collecting the tax, keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. 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 are deposited into
the State Aviation Program Fund under this Act. 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. 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;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month, including receipts
    from charge and time sales, but less all deductions allowed
    by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department
    may require.
    Each Beginning on January 1, 2020, 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 file an aviation
fuel tax return with the Department on or before the twentieth
day of each calendar month. 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 paragraph, "aviation fuel" means jet fuel and
aviation gasoline a product that is intended for use or offered
for sale as fuel for an aircraft.
    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.
    For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 4% 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 4% 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 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% 16% 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% 16% 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.
Fiscal YearTotal 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
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
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 (except the amount
collected on aviation fuel sold on or after December 1, 2019).
    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 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 55 of
the Public-Private Partnership for Civic and Transit
Infrastructure Project Act. As used in this paragraph, "civic
build", "private entity", "public-private private public
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 Act, 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 liable
    for a penalty equal to 1/6 of 1% of the tax due from such
    taxpayer under this Act during the period to be covered by
    the annual return for each month or fraction of a month
    until such return is filed as required, the penalty to be
    assessed and collected in the same manner as any other
    penalty provided for in this Act.
        (ii) On and after January 1, 1994, the taxpayer shall
    be liable for a penalty as described in Section 3-4 of the
    Uniform Penalty and Interest Act.
    The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
    The foregoing portion of this Section concerning the filing
of an annual information return shall not apply to a serviceman
who is not required to file an income tax return with the
United States Government.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
    For greater simplicity of administration, it shall be
permissible for manufacturers, importers and wholesalers whose
products are sold by numerous servicemen in Illinois, and who
wish to do so, to assume the responsibility for accounting and
paying to the Department all tax accruing under this Act with
respect to such sales, if the servicemen who are affected do
not make written objection to the Department to this
arrangement.
(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
15, Section 15-20, eff. 6-5-19; 101-10, Article 25, Section
25-115, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
6-28-19; revised 7-23-19.)
 
    Section 10-40. The Retailers' Occupation Tax Act is amended
by changing Sections 2-45 and 3 and by adding Section 2-22 as
follows:
 
    (35 ILCS 120/2-22 new)
    Sec. 2-22. Certification of airport-related purpose.
    (a) Initial certification and annual recertification. If a
unit of local government has an airport-related purpose, as
defined in Section 6z-20.2 of the State Finance Act, which
would allow any retailers' occupation tax and service
occupation tax imposed by the unit of local government and
administered by the Department to include tax on aviation fuel,
then, on or before September 1, 2019, and on or before each
April 1 thereafter, the unit of local government must certify
to the Department of Transportation, in the form and manner
required by the Department of Transportation, that it has an
airport-related purpose. All disputes regarding whether or not
a unit of local government has an airport-related purpose shall
be resolved by the Department of Transportation.
    On or before October 1, 2019, and on or before each May 1
thereafter, the Department of Transportation shall provide to
the Department a list of units of local government that have
certified to the Department of Transportation that they have an
airport-related purpose. If a unit of local government is
included in the list of units of local government that have
certified that they have an airport-related purpose that is
provided by the Department of Transportation to the Department
on or before October 1, 2019, then, beginning on December 1,
2019, any retailers' occupation tax and service occupation tax
imposed by the unit of local government and administered by the
Department shall continue to be collected on aviation fuel sold
in that unit of local government. Failure by a unit of local
government to file an initial certification shall be treated as
confirmation that the unit of local government does not have an
airport-related purpose, thereby exempting, beginning on
December 1, 2019, aviation fuel from any retailers' occupation
tax and service occupation tax imposed by the unit of local
government and administered by the Department.
    Beginning in 2020 and in each year thereafter, if a unit of
local government is included in the list of units of local
government that have certified that they have an
airport-related purpose that is provided by the Department of
Transportation to the Department on or before May 1, then any
retailers' occupation tax and service occupation tax imposed by
the unit of local government and administered by the Department
shall continue to be (or begin to be, as the case may be)
collected on aviation fuel sold in that unit of local
government beginning on the following July 1. Once a unit of
local government has certified that it has an airport-related
purpose, failure during an annual recertification period to
file a certification that it has an airport-related purpose
shall be treated as confirmation that it no longer has an
airport-related purpose, thereby exempting, beginning on July
1 of that year, aviation fuel from any retailers' occupation
tax and service occupation tax imposed by the unit of local
government and administered by the Department.
    (b) Penalties. If a unit of local government certifies that
it has an airport-related purpose and therefore receives tax
revenues from a tax imposed by the unit of local government and
administered by the Department of Revenue on sales of aviation
fuel, but the Federal Aviation Administration thereafter
determines that the tax revenues on aviation fuel generated by
that tax were expended by the unit of local government for a
purpose other than an airport-related purpose and the Federal
Aviation Administration imposes a penalty on the State of
Illinois as a result, then the State is authorized to pass this
penalty on to the unit of local government by withholding an
amount up to the amount of the penalty out of local retailers'
occupation taxes and service occupation taxes to be allocated
to the unit of local government by the State.
 
    (35 ILCS 120/2-45)  (from Ch. 120, par. 441-45)
    Sec. 2-45. Manufacturing and assembly exemption. The
manufacturing and assembly machinery and equipment exemption
includes machinery and equipment that replaces machinery and
equipment in an existing manufacturing facility as well as
machinery and equipment that are for use in an expanded or new
manufacturing facility.
    The machinery and equipment exemption also includes
machinery and equipment used in the general maintenance or
repair of exempt machinery and equipment or for in-house
manufacture of exempt machinery and equipment. Beginning on
July 1, 2017, the manufacturing and assembling machinery and
equipment exemption also includes graphic arts machinery and
equipment, as defined in paragraph (4) of Section 2-5. The
machinery and equipment exemption does not include machinery
and equipment used in (i) the generation of electricity for
wholesale or retail sale; (ii) the generation or treatment of
natural or artificial gas for wholesale or retail sale that is
delivered to customers through pipes, pipelines, or mains; or
(iii) the treatment of water for wholesale or retail sale that
is delivered to customers through pipes, pipelines, or mains.
The provisions of this amendatory Act of the 98th General
Assembly are declaratory of existing law as to the meaning and
scope of this exemption. For the purposes of this exemption,
terms have the following meanings:
        (1) "Manufacturing process" means the production of an
    article of tangible personal property, whether the article
    is a finished product or an article for use in the process
    of manufacturing or assembling a different article of
    tangible personal property, by a procedure commonly
    regarded as manufacturing, processing, fabricating, or
    refining that changes some existing material or materials
    into a material with a different form, use, or name. In
    relation to a recognized integrated business composed of a
    series of operations that collectively constitute
    manufacturing, or individually constitute manufacturing
    operations, the manufacturing process commences with the
    first operation or stage of production in the series and
    does not end until the completion of the final product in
    the last operation or stage of production in the series.
    For purposes of this exemption, photoprocessing is a
    manufacturing process of tangible personal property for
    wholesale or retail sale.
        (2) "Assembling process" means the production of an
    article of tangible personal property, whether the article
    is a finished product or an article for use in the process
    of manufacturing or assembling a different article of
    tangible personal property, by the combination of existing
    materials in a manner commonly regarded as assembling that
    results in a material of a different form, use, or name.
        (3) "Machinery" means major mechanical machines or
    major components of those machines contributing to a
    manufacturing or assembling process.
        (4) "Equipment" includes an independent device or tool
    separate from machinery but essential to an integrated
    manufacturing or assembly process; including computers
    used primarily in a manufacturer's computer assisted
    design, computer assisted manufacturing (CAD/CAM) system;
    any subunit or assembly comprising a component of any
    machinery or auxiliary, adjunct, or attachment parts of
    machinery, such as tools, dies, jigs, fixtures, patterns,
    and molds; and any parts that require periodic replacement
    in the course of normal operation; but does not include
    hand tools. 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 product being manufactured or assembled for
    wholesale or retail sale or lease.
        (5) "Production related tangible personal property"
    means all tangible personal property that is used or
    consumed by the purchaser in a manufacturing facility in
    which a manufacturing process takes place and includes,
    without limitation, tangible personal property that is
    purchased for incorporation into real estate within a
    manufacturing facility, supplies and consumables used in a
    manufacturing facility including fuels, coolants,
    solvents, oils, lubricants, and adhesives, hand tools,
    protective apparel, and fire and safety equipment used or
    consumed within a manufacturing facility, and tangible
    personal property that is used or consumed in activities
    such as research and development, preproduction material
    handling, receiving, quality control, inventory control,
    storage, staging, and packaging for shipping and
    transportation purposes. "Production related tangible
    personal property" does not include (i) tangible personal
    property that is used, within or without a manufacturing
    facility, in sales, purchasing, accounting, fiscal
    management, marketing, personnel recruitment or selection,
    or landscaping or (ii) tangible personal property that is
    required to be titled or registered with a department,
    agency, or unit of federal, State, or local government.
    The manufacturing and assembling machinery and equipment
exemption includes production related tangible personal
property that is purchased on or after July 1, 2007 and on or
before June 30, 2008 and on or after July 1, 2019. The
exemption for production related tangible personal property
purchased on or after July 1, 2007 and before June 30, 2008 is
subject to both of the following limitations:
        (1) The maximum amount of the exemption for any one
    taxpayer may not exceed 5% of the purchase price of
    production related tangible personal property that is
    purchased on or after July 1, 2007 and on or before June
    30, 2008. A credit under Section 3-85 of this Act may not
    be earned by the purchase of production related tangible
    personal property for which an exemption is received under
    this Section.
        (2) The maximum aggregate amount of the exemptions for
    production related tangible personal property awarded
    under this Act and the Use Tax Act to all taxpayers may not
    exceed $10,000,000. If the claims for the exemption exceed
    $10,000,000, then the Department shall reduce the amount of
    the exemption to each taxpayer on a pro rata basis.
The Department shall adopt rules to implement and administer
the exemption for production related tangible personal
property.
    The manufacturing and assembling machinery and equipment
exemption includes the sale of materials to a purchaser who
produces exempted types of machinery, equipment, or tools and
who rents or leases that machinery, equipment, or tools to a
manufacturer of tangible personal property. This exemption
also includes the sale of materials to a purchaser who
manufactures those materials into an exempted type of
machinery, equipment, or tools that the purchaser uses himself
or herself in the manufacturing of tangible personal property.
The purchaser of the machinery and equipment who has an active
resale registration number shall furnish that number to the
seller at the time of purchase. A purchaser of the machinery,
equipment, and tools without an active resale registration
number shall furnish to the seller a certificate of exemption
for each transaction stating facts establishing the exemption
for that transaction, and that certificate shall be available
to the Department for inspection or audit. Informal rulings,
opinions, or letters issued by the Department in response to an
inquiry or request for an opinion from any person regarding the
coverage and applicability of this exemption to specific
devices shall be published, maintained as a public record, and
made available for public inspection and copying. If the
informal ruling, opinion, or letter contains trade secrets or
other confidential information, where possible, the Department
shall delete that information before publication. Whenever
informal rulings, opinions, or letters contain a policy of
general applicability, the Department shall formulate and
adopt that policy as a rule in accordance with the Illinois
Administrative Procedure Act.
    The manufacturing and assembling machinery and equipment
exemption is exempt from the provisions of Section 2-70.
(Source: P.A. 100-22, eff. 7-6-17; 101-9, eff. 6-5-19.)
 
    (35 ILCS 120/3)  (from Ch. 120, par. 442)
    Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
        1. The name of the seller;
        2. His residence address and the address of his
    principal place of business and the address of the
    principal place of business (if that is a different
    address) from which he engages in the business of selling
    tangible personal property at retail in this State;
        3. Total amount of receipts received by him during the
    preceding calendar month or quarter, as the case may be,
    from sales of tangible personal property, and from services
    furnished, by him during such preceding calendar month or
    quarter;
        4. Total amount received by him during the preceding
    calendar month or quarter on charge and time sales of
    tangible personal property, and from services furnished,
    by him prior to the month or quarter for which the return
    is filed;
        5. Deductions allowed by law;
        6. Gross receipts which were received by him during the
    preceding calendar month or quarter and upon the basis of
    which the tax is imposed;
        7. The amount of credit provided in Section 2d of this
    Act;
        8. The amount of tax due;
        9. The signature of the taxpayer; and
        10. Such other reasonable information as the
    Department may require.
    On and after January 1, 2018, except for returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. Retailers 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.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
    Prior to October 1, 2003, and on and after September 1,
2004 a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. 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
Purchaser 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.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in the business of selling tangible
    personal property at retail in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month from sales of tangible
    personal property by him during such preceding calendar
    month, including receipts from charge and time sales, but
    less all deductions allowed by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due; and
        6. Such other reasonable information as the Department
    may require.
    Every Beginning on January 1, 2020, every person engaged in
the business of selling aviation fuel at retail 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 file an aviation fuel tax return
with the Department on or before the twentieth day of each
calendar month. The requirements related to the return shall be
as otherwise provided in this Section. Notwithstanding any
other provisions of this Act to the contrary, retailers selling
aviation fuel 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 paragraph, "aviation fuel" means jet fuel and
aviation gasoline a product that is intended for use or offered
for sale as fuel for an aircraft.
    Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall file
a statement with the Department of Revenue, in a format and at
a time prescribed by the Department, showing the total amount
paid for alcoholic liquor purchased during the preceding month
and such other information as is reasonably required by the
Department. The Department may adopt rules to require that this
statement be filed in an electronic or telephonic format. Such
rules may provide for exceptions from the filing requirements
of this paragraph. For the purposes of this paragraph, the term
"alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
    Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined in
the Liquor Control Act of 1934, shall file a statement with the
Department of Revenue, no later than the 10th day of the month
for the preceding month during which transactions occurred, by
electronic means, showing the total amount of gross receipts
from the sale of alcoholic liquor sold or distributed during
the preceding month to purchasers; identifying the purchaser to
whom it was sold or distributed; the purchaser's tax
registration number; and such other information reasonably
required by the Department. A distributor, importing
distributor, or manufacturer of alcoholic liquor must
personally deliver, mail, or provide by electronic means to
each retailer listed on the monthly statement a report
containing a cumulative total of that distributor's, importing
distributor's, or manufacturer's total sales of alcoholic
liquor to that retailer no later than the 10th day of the month
for the preceding month during which the transaction occurred.
The distributor, importing distributor, or manufacturer shall
notify the retailer as to the method by which the distributor,
importing distributor, or manufacturer will provide the sales
information. If the retailer is unable to receive the sales
information by electronic means, the distributor, importing
distributor, or manufacturer shall furnish the sales
information by personal delivery or by mail. For purposes of
this paragraph, the term "electronic means" includes, but is
not limited to, the use of a secure Internet website, e-mail,
or facsimile.
    If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less than
50 cents and shall be increased to $1 if it is 50 cents or more.
    Notwithstanding any other provision of this Act to the
contrary, retailers 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.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
    If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
    If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
    Where the same person has more than one business registered
with the Department under separate registrations under this
Act, such person may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle
retailer or trailer retailer for the purpose of resale or (ii)
a retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle, or
trailer to a purchaser for use as a qualifying rolling stock as
provided in Section 2-5 of this Act, then that seller may
report the transfer of all aircraft, watercraft, motor vehicles
or trailers involved in that transaction to the Department on
the same uniform invoice-transaction reporting return form.
For purposes of this Section, "watercraft" means a Class 2,
Class 3, or Class 4 watercraft as defined in Section 3-2 of the
Boat Registration and Safety Act, a personal watercraft, or any
boat equipped with an inboard motor.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting the
transfer of all the aircraft, watercraft, motor vehicles, or
trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
    Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise required
to file monthly or quarterly returns, need not file monthly or
quarterly returns. However, those retailers shall be required
to file returns on an annual basis.
    The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of the Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 1 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of the Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
    The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
    Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and such
agency or State officer determine that this procedure will
expedite the processing of applications for title or
registration.
    With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State officer
with whom, he must title or register the tangible personal
property that is involved (if titling or registration is
required) in support of such purchaser's application for an
Illinois certificate or other evidence of title or registration
to such tangible personal property.
    No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
    If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
the tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
    Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
    Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
    Where the seller is a limited liability company, the return
filed on behalf of the limited liability company shall be
signed by a manager, member, or properly accredited agent of
the limited liability company.
    Except as provided in this Section, the retailer filing the
return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. 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 are deposited into
the State Aviation Program Fund under this Act. Any prepayment
made pursuant to Section 2d of this Act shall be included in
the amount on which such 2.1% or 1.75% discount is computed. In
the case of retailers who report and pay the tax on a
transaction by transaction basis, as provided in this Section,
such discount shall be taken with each such tax remittance
instead of when such retailer files his periodic return. 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 retailers 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.
    Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was $10,000
or more during the preceding 4 complete calendar quarters, he
shall file a return with the Department each month by the 20th
day of the month next following the month during which such tax
liability is incurred and shall make payments to the Department
on or before the 7th, 15th, 22nd and last day of the month
during which such liability is incurred. On and after October
1, 2000, if the taxpayer's average monthly tax liability to the
Department under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Service Use Tax Act, excluding any
liability for prepaid sales tax to be remitted in accordance
with Section 2d of this Act, was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985 and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987 and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department by taxpayers having an average monthly tax liability
of $10,000 or more as determined in the manner provided above
shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000 or
more as determined in the manner provided above shall continue
until such taxpayer's average monthly liability to the
Department during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarter period is less than $20,000. However, if a taxpayer can
show the Department that a substantial change in the taxpayer's
business has occurred which causes the taxpayer to anticipate
that his average monthly tax liability for the reasonably
foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a
change in such taxpayer's reporting status. The Department
shall change such taxpayer's reporting status unless it finds
that such change is seasonal in nature and not likely to be
long term. If any such quarter monthly payment is not paid at
the time or in the amount required by this Section, then the
taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due as a payment and the
amount of such quarter monthly payment actually and timely
paid, except insofar as the taxpayer has previously made
payments for that month to the Department in excess of the
minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to
govern the quarter monthly payment amount and quarter monthly
payment dates for taxpayers who file on other than a calendar
monthly basis.
    The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to
September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or after
January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or 27.5%
of the taxpayer's liability for the same calendar month of the
preceding calendar year. If the month during which such tax
liability is incurred begins on or after January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year.
The amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month filed under this Section or Section 2f, as the case
may be. Once applicable, the requirement of the making of
quarter monthly payments to the Department pursuant to this
paragraph shall continue until such taxpayer's average monthly
prepaid tax collections during the preceding 2 complete
calendar quarters is $25,000 or less. If any such quarter
monthly payment is not paid at the time or in the amount
required, the taxpayer shall be liable for penalties and
interest on such difference, except insofar as the taxpayer has
previously made payments for that month in excess of the
minimum payments previously due.
    The provisions of this paragraph apply on and after October
1, 2001. Without regard to whether a taxpayer is required to
make quarter monthly payments as specified above, any taxpayer
who is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes that average in
excess of $20,000 per month during the preceding 4 complete
calendar quarters shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which the liability is incurred. Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 25% of the taxpayer's liability for
the same calendar month of the preceding year. The amount of
the quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month
filed under this Section or Section 2f, as the case may be.
Once applicable, the requirement of the making of quarter
monthly payments to the Department pursuant to this paragraph
shall continue until the taxpayer's average monthly prepaid tax
collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarters is less than $20,000. If any such quarter monthly
payment is not paid at the time or in the amount required, the
taxpayer shall be liable for penalties and interest on such
difference, except insofar as the taxpayer has previously made
payments for that month in excess of the minimum payments
previously due.
    If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's 2.1%
and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
of the difference between the credit taken and that actually
due, and that taxpayer shall be liable for penalties and
interest on such difference.
    If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act.
    Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate 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 4% 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 4% 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 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
September 1, 2010, 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 sales tax holiday items.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property 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% 16% 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% 16% 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 September 1,
2010, 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
sales tax holiday items.
    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, 2011, each month the Department shall pay
into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act Permit Fund under this Act and
the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
    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 Service 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 Service 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, the Service Occupation Tax Act, and this 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 this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts; the
"Annual Specified Amount" means the amounts specified below for
fiscal years 1986 through 1993:
Fiscal YearAnnual Specified Amount
1986$54,800,000
1987$76,650,000
1988$80,480,000
1989$88,510,000
1990$115,330,000
1991$145,470,000
1992$182,730,000
1993$206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued and
outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (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 moneys deposited in the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section
13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys received
by the Department pursuant to the Tax Acts to the Build
Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal 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
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
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 Clean Air Act Permit 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 (except the amount
collected on aviation fuel sold on or after December 1, 2019).
    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 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 55 of
the Public-Private Partnership for Civic and Transit
Infrastructure Project Act. As used in this paragraph, "civic
build", "private entity", "public-private private public
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 Act, 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% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
    The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to the
Department shall also disclose the cost of goods sold by the
retailer during the year covered by such return, opening and
closing inventories of such goods for such year, costs of goods
used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such retailer as provided for in
this Section.
    If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
        (i) Until January 1, 1994, the taxpayer shall be liable
    for a penalty equal to 1/6 of 1% of the tax due from such
    taxpayer under this Act during the period to be covered by
    the annual return for each month or fraction of a month
    until such return is filed as required, the penalty to be
    assessed and collected in the same manner as any other
    penalty provided for in this Act.
        (ii) On and after January 1, 1994, the taxpayer shall
    be liable for a penalty as described in Section 3-4 of the
    Uniform Penalty and Interest Act.
    The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
    The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
    For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
    Any person who promotes, organizes, provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets and similar exhibitions or
events, including any transient merchant as defined by Section
2 of the Transient Merchant Act of 1987, is required to file a
report with the Department providing the name of the merchant's
business, the name of the person or persons engaged in
merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event and other reasonable
information that the Department may require. The report must be
filed not later than the 20th day of the month next following
the month during which the event with retail sales was held.
Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to
exceed $250.
    Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at the
exhibition or event, or other evidence of a significant risk of
loss of revenue to the State. The Department shall notify
concessionaires and other sellers affected by the imposition of
this requirement. In the absence of notification by the
Department, the concessionaires and other sellers shall file
their returns as otherwise required in this Section.
(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
15, Section 15-25, eff. 6-5-19; 101-10, Article 25, Section
25-120, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
6-28-19; revised 7-17-19.)
 
    Section 10-45. The Cigarette Tax Act is amended by changing
Section 2 as follows:
 
    (35 ILCS 130/2)  (from Ch. 120, par. 453.2)
    Sec. 2. Tax imposed; rate; collection, payment, and
distribution; discount.
    (a) Beginning on July 1, 2019, in place of the aggregate
tax rate of 99 mills previously imposed by this Act, a tax is
imposed upon any person engaged in business as a retailer of
cigarettes at the rate of 149 mills per cigarette sold or
otherwise disposed of in the course of such business in this
State.
    (b) The payment of such taxes shall be evidenced by a stamp
affixed to each original package of cigarettes, or an
authorized substitute for such stamp imprinted on each original
package of such cigarettes underneath the sealed transparent
outside wrapper of such original package, as hereinafter
provided. However, such taxes are not imposed upon any activity
in such business in interstate commerce or otherwise, which
activity may not under the Constitution and statutes of the
United States be made the subject of taxation by this State.
    Out of the 149 mills per cigarette tax imposed by
subsection (a), the revenues received from 4 mills shall be
paid into the Common School Fund each month, not to exceed
$9,000,000 per month. Out of the 149 mills per cigarette tax
imposed by subsection (a), all of the revenues received from 7
mills shall be paid into the Common School Fund each month. Out
of the 149 mills per cigarette tax imposed by subsection (a),
50 mills per cigarette each month shall be paid into the
Healthcare Provider Relief Fund.
    Beginning on July 1, 2006, all of the moneys received by
the Department of Revenue pursuant to this Act and the
Cigarette Use Tax Act, other than the moneys that are dedicated
to the Common School Fund and, beginning on the effective date
of this amendatory Act of the 97th General Assembly, other than
the moneys from the additional taxes imposed by this amendatory
Act of the 97th General Assembly that must be paid each month
into the Healthcare Provider Relief Fund, and other than the
moneys from the additional taxes imposed by this amendatory Act
of the 101st General Assembly that must be paid each month
under subsection (c), shall be distributed each month as
follows: first, there shall be paid into the General Revenue
Fund an amount that, when added to the amount paid into the
Common School Fund for that month, equals $29,200,000; then,
from the moneys remaining, if any amounts required to be paid
into the General Revenue Fund in previous months remain unpaid,
those amounts shall be paid into the General Revenue Fund; then
from the moneys remaining, $5,000,000 per month shall be paid
into the School Infrastructure Fund; then, if any amounts
required to be paid into the School Infrastructure Fund in
previous months remain unpaid, those amounts shall be paid into
the School Infrastructure Fund; then the moneys remaining, if
any, shall be paid into the Long-Term Care Provider Fund.
    (c) Beginning on July 1, 2019, all of the moneys from the
additional taxes imposed by Public Act 101-31, except for
moneys received from the tax on electronic cigarettes, this
amendatory Act of the 101st General Assembly received by the
Department of Revenue pursuant to this Act, and the Cigarette
Use Tax Act, and the Tobacco Products Tax Act of 1995 shall be
distributed each month into the Capital Projects Fund.
    (d) Except for moneys received from the additional taxes
imposed by Public Act 101-31, moneys Moneys collected from the
tax imposed on little cigars under Section 10-10 of the Tobacco
Products Tax Act of 1995 shall be included with the moneys
collected under the Cigarette Tax Act and the Cigarette Use Tax
Act when making distributions to the Common School Fund, the
Healthcare Provider Relief Fund, the General Revenue Fund, the
School Infrastructure Fund, and the Long-Term Care Provider
Fund under this Section.
    (e) If the tax imposed herein terminates or has terminated,
distributors who have bought stamps while such tax was in
effect and who therefore paid such tax, but who can show, to
the Department's satisfaction, that they sold the cigarettes to
which they affixed such stamps after such tax had terminated
and did not recover the tax or its equivalent from purchasers,
shall be allowed by the Department to take credit for such
absorbed tax against subsequent tax stamp purchases from the
Department by such distributor.
    (f) The impact of the tax levied by this Act is imposed
upon the retailer and shall be prepaid or pre-collected by the
distributor for the purpose of convenience and facility only,
and the amount of the tax shall be added to the price of the
cigarettes sold by such distributor. Collection of the tax
shall be evidenced by a stamp or stamps affixed to each
original package of cigarettes, as hereinafter provided. Any
distributor who purchases stamps may credit any excess payments
verified by the Department against amounts subsequently due for
the purchase of additional stamps, until such time as no excess
payment remains.
    (g) Each distributor shall collect the tax from the
retailer at or before the time of the sale, shall affix the
stamps as hereinafter required, and shall remit the tax
collected from retailers to the Department, as hereinafter
provided. Any distributor who fails to properly collect and pay
the tax imposed by this Act shall be liable for the tax.
    (h) Any distributor having cigarettes in his or her
possession on July 1, 2019 to which tax stamps have been
affixed, and any distributor having stamps in his or her
possession on July 1, 2019 that have not been affixed to
packages of cigarettes before July 1, 2019, is required to pay
the additional tax that begins on July 1, 2019 imposed by this
amendatory Act of the 101st General Assembly to the extent that
the volume of affixed and unaffixed stamps in the distributor's
possession on July 1, 2019 exceeds the average monthly volume
of cigarette stamps purchased by the distributor in calendar
year 2018. This payment, less the discount provided in
subsection (l), is due when the distributor first makes a
purchase of cigarette stamps on or after July 1, 2019 or on the
first due date of a return under this Act occurring on or after
July 1, 2019, whichever occurs first. Those distributors may
elect to pay the additional tax on packages of cigarettes to
which stamps have been affixed and on any stamps in the
distributor's possession that have not been affixed to packages
of cigarettes in their possession on July 1, 2019 over a period
not to exceed 12 months from the due date of the additional tax
by notifying the Department in writing. The first payment for
distributors making such election is due when the distributor
first makes a purchase of cigarette tax stamps on or after July
1, 2019 or on the first due date of a return under this Act
occurring on or after July 1, 2019, whichever occurs first.
Distributors making such an election are not entitled to take
the discount provided in subsection (l) on such payments.
    (i) Any retailer having cigarettes in its possession on
July 1, 2019 to which tax stamps have been affixed is not
required to pay the additional tax that begins on July 1, 2019
imposed by this amendatory Act of the 101st General Assembly on
those stamped cigarettes.
    (j) Distributors making sales of cigarettes to secondary
distributors shall add the amount of the tax to the price of
the cigarettes sold by the distributors. Secondary
distributors making sales of cigarettes to retailers shall
include the amount of the tax in the price of the cigarettes
sold to retailers. The amount of tax shall not be less than the
amount of taxes imposed by the State and all local
jurisdictions. The amount of local taxes shall be calculated
based on the location of the retailer's place of business shown
on the retailer's certificate of registration or
sub-registration issued to the retailer pursuant to Section 2a
of the Retailers' Occupation Tax Act. The original packages of
cigarettes sold to the retailer shall bear all the required
stamps, or other indicia, for the taxes included in the price
of cigarettes.
    (k) The amount of the Cigarette Tax imposed by this Act
shall be separately stated, apart from the price of the goods,
by distributors, manufacturer representatives, secondary
distributors, and retailers, in all bills and sales invoices.
    (l) The distributor shall be required to collect the tax
provided under paragraph (a) hereof, and, to cover the costs of
such collection, shall be allowed a discount during any year
commencing July 1st and ending the following June 30th in
accordance with the schedule set out hereinbelow, which
discount shall be allowed at the time of purchase of the stamps
when purchase is required by this Act, or at the time when the
tax is remitted to the Department without the purchase of
stamps from the Department when that method of paying the tax
is required or authorized by this Act.
    On and after December 1, 1985, a discount equal to 1.75% of
the amount of the tax payable under this Act up to and
including the first $3,000,000 paid hereunder by such
distributor to the Department during any such year and 1.5% of
the amount of any additional tax paid hereunder by such
distributor to the Department during any such year shall apply.
    Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled by
the same interests shall be treated as a single distributor for
the purpose of computing the discount.
    (m) The taxes herein imposed are in addition to all other
occupation or privilege taxes imposed by the State of Illinois,
or by any political subdivision thereof, or by any municipal
corporation.
(Source: P.A. 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19.)
 
    Section 10-50. The Motor Fuel Tax Law is amended by
changing Sections 2, 2a, 2b, and 8a as follows:
 
    (35 ILCS 505/2)  (from Ch. 120, par. 418)
    Sec. 2. A tax is imposed on the privilege of operating
motor vehicles upon the public highways and recreational-type
watercraft upon the waters of this State.
    (a) Prior to August 1, 1989, the tax is imposed at the rate
of 13 cents per gallon on all motor fuel used in motor vehicles
operating on the public highways and recreational type
watercraft operating upon the waters of this State. Beginning
on August 1, 1989 and until January 1, 1990, the rate of the
tax imposed in this paragraph shall be 16 cents per gallon.
Beginning January 1, 1990 and until July 1, 2019, the rate of
tax imposed in this paragraph, including the tax on compressed
natural gas, shall be 19 cents per gallon. Beginning July 1,
2019, the rate of tax imposed in this paragraph shall be 38
cents per gallon and increased on July 1 of each subsequent
year by an amount equal to the percentage increase, if any, in
the Consumer Price Index for All Urban Consumers for all items
published by the United States Department of Labor for the 12
months ending in March of each year. The rate shall be rounded
to the nearest one-tenth of one cent.
    (b) Until July 1, 2019, the The tax on the privilege of
operating motor vehicles which use diesel fuel, liquefied
natural gas, or propane shall be the rate according to
paragraph (a) plus an additional 2 1/2 cents per gallon.
Beginning July 1, 2019, the tax on the privilege of operating
motor vehicles which use diesel fuel, liquefied natural gas, or
propane rate of tax imposed in this paragraph shall be the rate
according to subsection (a) plus an additional 7.5 cents per
gallon. "Diesel fuel" is defined as any product intended for
use or offered for sale as a fuel for engines in which the fuel
is injected into the combustion chamber and ignited by pressure
without electric spark.
    (c) A tax is imposed upon the privilege of engaging in the
business of selling motor fuel as a retailer or reseller on all
motor fuel used in motor vehicles operating on the public
highways and recreational type watercraft operating upon the
waters of this State: (1) at the rate of 3 cents per gallon on
motor fuel owned or possessed by such retailer or reseller at
12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents per
gallon on motor fuel owned or possessed by such retailer or
reseller at 12:01 A.M. on January 1, 1990.
    Retailers and resellers who are subject to this additional
tax shall be required to inventory such motor fuel and pay this
additional tax in a manner prescribed by the Department of
Revenue.
    The tax imposed in this paragraph (c) shall be in addition
to all other taxes imposed by the State of Illinois or any unit
of local government in this State.
    (d) Except as provided in Section 2a, the collection of a
tax based on gallonage of gasoline used for the propulsion of
any aircraft is prohibited on and after October 1, 1979, and
the collection of a tax based on gallonage of special fuel used
for the propulsion of any aircraft is prohibited on and after
December 1, 2019.
    (e) The collection of a tax, based on gallonage of all
products commonly or commercially known or sold as 1-K
kerosene, regardless of its classification or uses, is
prohibited (i) on and after July 1, 1992 until December 31,
1999, except when the 1-K kerosene is either: (1) delivered
into bulk storage facilities of a bulk user, or (2) delivered
directly into the fuel supply tanks of motor vehicles and (ii)
on and after January 1, 2000. Beginning on January 1, 2000, the
collection of a tax, based on gallonage of all products
commonly or commercially known or sold as 1-K kerosene,
regardless of its classification or uses, is prohibited except
when the 1-K kerosene is delivered directly into a storage tank
that is located at a facility that has withdrawal facilities
that are readily accessible to and are capable of dispensing
1-K kerosene into the fuel supply tanks of motor vehicles. For
purposes of this subsection (e), a facility is considered to
have withdrawal facilities that are not "readily accessible to
and capable of dispensing 1-K kerosene into the fuel supply
tanks of motor vehicles" only if the 1-K kerosene is delivered
from: (i) a dispenser hose that is short enough so that it will
not reach the fuel supply tank of a motor vehicle or (ii) a
dispenser that is enclosed by a fence or other physical barrier
so that a vehicle cannot pull alongside the dispenser to permit
fueling.
    Any person who sells or uses 1-K kerosene for use in motor
vehicles upon which the tax imposed by this Law has not been
paid shall be liable for any tax due on the sales or use of 1-K
kerosene.
(Source: P.A. 100-9, eff. 7-1-17; 101-10, eff. 6-5-19; 101-32,
eff. 6-28-19; revised 7-12-19.)
 
    (35 ILCS 505/2a)  (from Ch. 120, par. 418a)
    Sec. 2a. Except as hereinafter provided, on and after
January 1, 1990 and before January 1, 2025, a tax of
three-tenths of a cent per gallon is imposed upon the privilege
of being a receiver in this State of fuel for sale or use.
Beginning January 1, 2021, this tax is not imposed on sales of
aviation fuel 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.
    The tax shall be paid by the receiver in this State who
first sells or uses fuel. In the case of a sale, the tax shall
be stated as a separate item on the invoice.
    For the purpose of the tax imposed by this Section, being a
receiver of "motor fuel" as defined by Section 1.1 of this Act,
and aviation fuels, home heating oil and kerosene, but
excluding liquified petroleum gases, is subject to tax without
regard to whether the fuel is intended to be used for operation
of motor vehicles on the public highways and waters. However,
no such tax shall be imposed upon the importation or receipt of
aviation fuels and kerosene at airports with over 300,000
operations per year, for years prior to 1991, and over 170,000
operations per year beginning in 1991, located in a city of
more than 1,000,000 inhabitants for sale to or use by holders
of certificates of public convenience and necessity or foreign
air carrier permits, issued by the United States Department of
Transportation, and their air carrier affiliates, or upon the
importation or receipt of aviation fuels and kerosene at
facilities owned or leased by those certificate or permit
holders and used in their activities at an airport described
above. In addition, no such tax shall be imposed upon the
importation or receipt of diesel fuel or liquefied natural gas
sold to or used by a rail carrier registered pursuant to
Section 18c-7201 of the Illinois Vehicle Code or otherwise
recognized by the Illinois Commerce Commission as a rail
carrier, to the extent used directly in railroad operations. In
addition, no such tax shall be imposed when the sale is made
with delivery to a purchaser outside this State or when the
sale is made to a person holding a valid license as a receiver.
In addition, no tax shall be imposed upon diesel fuel or
liquefied natural gas consumed or used in the operation of
ships, barges, or vessels, that are used primarily in or for
the transportation of property in interstate commerce for hire
on rivers bordering on this State, if the diesel fuel or
liquefied natural gas is delivered by a licensed receiver to
the purchaser's barge, ship, or vessel while it is afloat upon
that bordering river. A specific notation thereof shall be made
on the invoices or sales slips covering each sale.
(Source: P.A. 100-9, eff. 7-1-17.)
 
    (35 ILCS 505/2b)  (from Ch. 120, par. 418b)
    Sec. 2b. Receiver's monthly return. In addition to the tax
collection and reporting responsibilities imposed elsewhere in
this Act, a person who is required to pay the tax imposed by
Section 2a of this Act shall pay the tax to the Department by
return showing all fuel purchased, acquired or received and
sold, distributed or used during the preceding calendar month
including losses of fuel as the result of evaporation or
shrinkage due to temperature variations, and such other
reasonable information as the Department may require. Losses of
fuel as the result of evaporation or shrinkage due to
temperature variations may not exceed 1% of the total gallons
in storage at the beginning of the month, plus the receipts of
gallonage during the month, minus the gallonage remaining in
storage at the end of the month. Any loss reported that is in
excess of this amount shall be subject to the tax imposed by
Section 2a of this Law. On and after July 1, 2001, for each
6-month period January through June, net losses of fuel (for
each category of fuel that is required to be reported on a
return) as the result of evaporation or shrinkage due to
temperature variations may not exceed 1% of the total gallons
in storage at the beginning of each January, plus the receipts
of gallonage each January through June, minus the gallonage
remaining in storage at the end of each June. On and after July
1, 2001, for each 6-month period July through December, net
losses of fuel (for each category of fuel that is required to
be reported on a return) as the result of evaporation or
shrinkage due to temperature variations may not exceed 1% of
the total gallons in storage at the beginning of each July,
plus the receipts of gallonage each July through December,
minus the gallonage remaining in storage at the end of each
December. Any net loss reported that is in excess of this
amount shall be subject to the tax imposed by Section 2a of
this Law. For purposes of this Section, "net loss" means the
number of gallons gained through temperature variations minus
the number of gallons lost through temperature variations or
evaporation for each of the respective 6-month periods.
    The return shall be prescribed by the Department and shall
be filed between the 1st and 20th days of each calendar month.
The Department may, in its discretion, combine the returns
filed under this Section, Section 5, and Section 5a of this
Act. The return must be accompanied by appropriate
computer-generated magnetic media supporting schedule data in
the format required by the Department, unless, as provided by
rule, the Department grants an exception upon petition of a
taxpayer. If the return is filed timely, the seller shall take
a discount of 2% through June 30, 2003 and 1.75% thereafter
which is allowed to reimburse the seller for the expenses
incurred in keeping records, preparing and filing returns,
collecting and remitting the tax and supplying data to the
Department on request. The discount, however, shall be
applicable only to the amount of payment which accompanies a
return that is filed timely in accordance with this Section.
The discount under this Section is not allowed for taxes paid
on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
deposited into the State Aviation Program Fund under this Act.
    Beginning on January 1, 2020 and ending with returns due on
January 20, 2021, each person who is required to pay the tax
imposed under Section 2a of this Act on aviation fuel sold or
used in this State during the preceding calendar month shall,
instead of reporting and paying tax on aviation fuel as
otherwise required by this Section, report and pay such tax on
a separate aviation fuel tax return or a separate line on the
return , on or before the twentieth day of each calendar month.
The requirements related to the return shall be as otherwise
provided in this Section. Notwithstanding any other provisions
of this Act to the contrary, a person required to pay the tax
imposed by Section 2a of this Act on aviation fuel 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 Law paragraph,
"aviation fuel" means jet fuel and aviation gasoline a product
that is intended for use or offered for sale as fuel for an
aircraft.
    If any payment provided for in this Section exceeds the
receiver's liabilities under this Act, as shown on an original
return, the Department may authorize the receiver to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the receiver, the receiver's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that receiver shall be liable for penalties
and interest on such difference.
(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19.)
 
    (35 ILCS 505/8a)  (from Ch. 120, par. 424a)
    Sec. 8a. All money received by the Department under Section
2a of this Act, except money received from taxes on aviation
fuel sold or used on or after December 1, 2019 and through
December 31, 2020, shall be deposited in the Underground
Storage Tank Fund created by Section 57.11 of the Environmental
Protection Act, as now or hereafter amended. All money received
by the Department under Section 2a of this Act for aviation
fuel sold or used on or after December 1, 2019, shall be
deposited into the State Aviation Program Fund. 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 purposes of this Section, "aviation
fuel" means jet fuel and aviation gasoline a product that is
intended for use or offered for sale as fuel for an aircraft.
(Source: P.A. 101-10, eff. 6-5-19.)
 
    Section 10-55. The Innovation Development and Economy Act
is amended by changing Sections 10 and 31 as follows:
 
    (50 ILCS 470/10)
    Sec. 10. Definitions. As used in this Act, the following
words and phrases shall have the following meanings unless a
different meaning clearly appears from the context:
    "Base year" means the calendar year immediately prior to
the calendar year in which the STAR bond district is
established.
    "Commence work" means the manifest commencement of actual
operations on the development site, such as, erecting a
building, general on-site and off-site grading and utility
installations, commencing design and construction
documentation, ordering lead-time materials, excavating the
ground to lay a foundation or a basement, or work of like
description which a reasonable person would recognize as being
done with the intention and purpose to continue work until the
project is completed.
    "County" means the county in which a proposed STAR bond
district is located.
    "De minimis" means an amount less than 15% of the land area
within a STAR bond district.
    "Department of Revenue" means the Department of Revenue of
the State of Illinois.
    "Destination user" means an owner, operator, licensee,
co-developer, subdeveloper, or tenant (i) that operates a
business within a STAR bond district that is a retail store
having at least 150,000 square feet of sales floor area; (ii)
that at the time of opening does not have another Illinois
location within a 70 mile radius; (iii) that has an annual
average of not less than 30% of customers who travel from at
least 75 miles away or from out-of-state, as demonstrated by
data from a comparable existing store or stores, or, if there
is no comparable existing store, as demonstrated by an economic
analysis that shows that the proposed retailer will have an
annual average of not less than 30% of customers who travel
from at least 75 miles away or from out-of-state; and (iv) that
makes an initial capital investment, including project costs
and other direct costs, of not less than $30,000,000 for such
retail store.
    "Destination hotel" means a hotel (as that term is defined
in Section 2 of the Hotel Operators' Occupation Tax Act)
complex having at least 150 guest rooms and which also includes
a venue for entertainment attractions, rides, or other
activities oriented toward the entertainment and amusement of
its guests and other patrons.
    "Developer" means any individual, corporation, trust,
estate, partnership, limited liability partnership, limited
liability company, or other entity. The term does not include a
not-for-profit entity, political subdivision, or other agency
or instrumentality of the State.
    "Director" means the Director of Revenue, who shall consult
with the Director of Commerce and Economic Opportunity in any
approvals or decisions required by the Director under this Act.
    "Economic impact study" means a study conducted by an
independent economist to project the financial benefit of the
proposed STAR bond project to the local, regional, and State
economies, consider the proposed adverse impacts on similar
projects and businesses, as well as municipalities within the
projected market area, and draw conclusions about the net
effect of the proposed STAR bond project on the local,
regional, and State economies. A copy of the economic impact
study shall be provided to the Director for review.
    "Eligible area" means any improved or vacant area that (i)
is contiguous and is not, in the aggregate, less than 250 acres
nor more than 500 acres which must include only parcels of real
property directly and substantially benefited by the proposed
STAR bond district plan, (ii) is adjacent to a federal
interstate highway, (iii) is within one mile of 2 State
highways, (iv) is within one mile of an entertainment user, or
a major or minor league sports stadium or other similar
entertainment venue that had an initial capital investment of
at least $20,000,000, and (v) includes land that was previously
surface or strip mined. The area may be bisected by streets,
highways, roads, alleys, railways, bike paths, streams,
rivers, and other waterways and still be deemed contiguous. In
addition, in order to constitute an eligible area one of the
following requirements must be satisfied and all of which are
subject to the review and approval of the Director as provided
in subsection (d) of Section 15:
        (a) the governing body of the political subdivision
    shall have determined that the area meets the requirements
    of a "blighted area" as defined under the Tax Increment
    Allocation Redevelopment Act; or
        (b) the governing body of the political subdivision
    shall have determined that the area is a blighted area as
    determined under the provisions of Section 11-74.3-5 of the
    Illinois Municipal Code; or
        (c) the governing body of the political subdivision
    shall make the following findings:
            (i) that the vacant portions of the area have
        remained vacant for at least one year, or that any
        building located on a vacant portion of the property
        was demolished within the last year and that the
        building would have qualified under item (ii) of this
        subsection;
            (ii) if portions of the area are currently
        developed, that the use, condition, and character of
        the buildings on the property are not consistent with
        the purposes set forth in Section 5;
            (iii) that the STAR bond district is expected to
        create or retain job opportunities within the
        political subdivision;
            (iv) that the STAR bond district will serve to
        further the development of adjacent areas;
            (v) that without the availability of STAR bonds,
        the projects described in the STAR bond district plan
        would not be possible;
            (vi) that the master developer meets high
        standards of creditworthiness and financial strength
        as demonstrated by one or more of the following: (i)
        corporate debenture ratings of BBB or higher by
        Standard & Poor's Corporation or Baa or higher by
        Moody's Investors Service, Inc.; (ii) a letter from a
        financial institution with assets of $10,000,000 or
        more attesting to the financial strength of the master
        developer; or (iii) specific evidence of equity
        financing for not less than 10% of the estimated total
        STAR bond project costs;
            (vii) that the STAR bond district will strengthen
        the commercial sector of the political subdivision;
            (viii) that the STAR bond district will enhance the
        tax base of the political subdivision; and
            (ix) that the formation of a STAR bond district is
        in the best interest of the political subdivision.
    "Entertainment user" means an owner, operator, licensee,
co-developer, subdeveloper, or tenant that operates a business
within a STAR bond district that has a primary use of providing
a venue for entertainment attractions, rides, or other
activities oriented toward the entertainment and amusement of
its patrons, occupies at least 20 acres of land in the STAR
bond district, and makes an initial capital investment,
including project costs and other direct and indirect costs, of
not less than $25,000,000 for that venue.
    "Feasibility study" means a feasibility study as defined in
subsection (b) of Section 20.
    "Infrastructure" means the public improvements and private
improvements that serve the public purposes set forth in
Section 5 of this Act and that benefit the STAR bond district
or any STAR bond projects, including, but not limited to,
streets, drives and driveways, traffic and directional signs
and signals, parking lots and parking facilities,
interchanges, highways, sidewalks, bridges, underpasses and
overpasses, bike and walking trails, sanitary storm sewers and
lift stations, drainage conduits, channels, levees, canals,
storm water detention and retention facilities, utilities and
utility connections, water mains and extensions, and street and
parking lot lighting and connections.
    "Local sales taxes" means any locally-imposed locally
imposed taxes received by a municipality, county, or other
local governmental entity arising from sales by retailers and
servicemen within a STAR bond district, including business
district sales taxes and STAR bond occupation taxes, and that
portion of the net revenue realized under the Retailers'
Occupation Tax Act, the Use Tax Act, the Service Use Tax Act,
and the Service Occupation Tax Act from transactions at places
of business located within a STAR bond district that is
deposited into the Local Government Tax Fund and the County and
Mass Transit District Fund. For the purpose of this Act, "local
sales taxes" does not include (i) any taxes authorized pursuant
to the Local Mass Transit District Act or the Metro-East Park
and Recreation District Act for so long as the applicable
taxing district does not impose a tax on real property, (ii)
county school facility and resources occupation taxes imposed
pursuant to Section 5-1006.7 of the Counties Code, or (iii) any
taxes authorized under the Flood Prevention District Act.
    "Local sales tax increment" means, except as otherwise
provided in this Section, with respect to local sales taxes
administered by the Illinois Department of Revenue, (i) all of
the local sales tax paid by destination users, destination
hotels, and entertainment users that is in excess of the local
sales tax paid by destination users, destination hotels, and
entertainment users for the same month in the base year, as
determined by the Illinois Department of Revenue, (ii) in the
case of a municipality forming a STAR bond district that is
wholly within the corporate boundaries of the municipality and
in the case of a municipality and county forming a STAR bond
district that is only partially within such municipality, that
portion of the local sales tax paid by taxpayers that are not
destination users, destination hotels, or entertainment users
that is in excess of the local sales tax paid by taxpayers that
are not destination users, destination hotels, or
entertainment users for the same month in the base year, as
determined by the Illinois Department of Revenue, and (iii) in
the case of a county in which a STAR bond district is formed
that is wholly within a municipality, that portion of the local
sales tax paid by taxpayers that are not destination users,
destination hotels, or entertainment users that is in excess of
the local sales tax paid by taxpayers that are not destination
users, destination hotels, or entertainment users for the same
month in the base year, as determined by the Illinois
Department of Revenue, but only if the corporate authorities of
the county adopts an ordinance, and files a copy with the
Department within the same time frames as required for STAR
bond occupation taxes under Section 31, that designates the
taxes referenced in this clause (iii) as part of the local
sales tax increment under this Act. "Local sales tax increment"
means, with respect to local sales taxes administered by a
municipality, county, or other unit of local government, that
portion of the local sales tax that is in excess of the local
sales tax for the same month in the base year, as determined by
the respective municipality, county, or other unit of local
government. If any portion of local sales taxes are, at the
time of formation of a STAR bond district, already subject to
tax increment financing under the Tax Increment Allocation
Redevelopment Act, then the local sales tax increment for such
portion shall be frozen at the base year established in
accordance with this Act, and all future incremental increases
shall be included in the "local sales tax increment" under this
Act. Any party otherwise entitled to receipt of incremental
local sales tax revenues through an existing tax increment
financing district shall be entitled to continue to receive
such revenues up to the amount frozen in the base year. Nothing
in this Act shall affect the prior qualification of existing
redevelopment project costs incurred that are eligible for
reimbursement under the Tax Increment Allocation Redevelopment
Act. In such event, prior to approving a STAR bond district,
the political subdivision forming the STAR bond district shall
take such action as is necessary, including amending the
existing tax increment financing district redevelopment plan,
to carry out the provisions of this Act. The Illinois
Department of Revenue shall allocate the local sales tax
increment only if the local sales tax is administered by the
Department. "Local sales tax increment" does not include taxes
and penalties collected on aviation fuel, as defined in Section
3 of the Retailers' Occupation Tax, sold on or after December
1, 2019 and through December 31, 2020.
    "Market study" means a study to determine the ability of
the proposed STAR bond project to gain market share locally and
regionally and to remain profitable past the term of repayment
of STAR bonds.
    "Master developer" means a developer cooperating with a
political subdivision to plan, develop, and implement a STAR
bond project plan for a STAR bond district. Subject to the
limitations of Section 25, the master developer may work with
and transfer certain development rights to other developers for
the purpose of implementing STAR bond project plans and
achieving the purposes of this Act. A master developer for a
STAR bond district shall be appointed by a political
subdivision in the resolution establishing the STAR bond
district, and the master developer must, at the time of
appointment, own or have control of, through purchase
agreements, option contracts, or other means, not less than 50%
of the acreage within the STAR bond district and the master
developer or its affiliate must have ownership or control on
June 1, 2010.
    "Master development agreement" means an agreement between
the master developer and the political subdivision to govern a
STAR bond district and any STAR bond projects.
    "Municipality" means the city, village, or incorporated
town in which a proposed STAR bond district is located.
    "Pledged STAR revenues" means those sales tax and revenues
and other sources of funds pledged to pay debt service on STAR
bonds or to pay project costs pursuant to Section 30.
Notwithstanding any provision to the contrary, the following
revenues shall not constitute pledged STAR revenues or be
available to pay principal and interest on STAR bonds: any
State sales tax increment or local sales tax increment from a
retail entity initiating operations in a STAR bond district
while terminating operations at another Illinois location
within 25 miles of the STAR bond district. For purposes of this
paragraph, "terminating operations" means a closing of a retail
operation that is directly related to the opening of the same
operation or like retail entity owned or operated by more than
50% of the original ownership in a STAR bond district within
one year before or after initiating operations in the STAR bond
district, but it does not mean closing an operation for reasons
beyond the control of the retail entity, as documented by the
retail entity, subject to a reasonable finding by the
municipality (or county if such retail operation is not located
within a municipality) in which the terminated operations were
located that the closed location contained inadequate space,
had become economically obsolete, or was no longer a viable
location for the retailer or serviceman.
    "Political subdivision" means a municipality or county
which undertakes to establish a STAR bond district pursuant to
the provisions of this Act.
    "Project costs" means and includes the sum total of all
costs incurred or estimated to be incurred on or following the
date of establishment of a STAR bond district that are
reasonable or necessary to implement a STAR bond district plan
or any STAR bond project plans, or both, including costs
incurred for public improvements and private improvements that
serve the public purposes set forth in Section 5 of this Act.
Such costs include without limitation the following:
        (a) costs of studies, surveys, development of plans and
    specifications, formation, implementation, and
    administration of a STAR bond district, STAR bond district
    plan, any STAR bond projects, or any STAR bond project
    plans, including, but not limited to, staff and
    professional service costs for architectural, engineering,
    legal, financial, planning, or other services, provided
    however that no charges for professional services may be
    based on a percentage of the tax increment collected and no
    contracts for professional services, excluding
    architectural and engineering services, may be entered
    into if the terms of the contract extend beyond a period of
    3 years;
        (b) property assembly costs, including, but not
    limited to, acquisition of land and other real property or
    rights or interests therein, located within the boundaries
    of a STAR bond district, demolition of buildings, site
    preparation, site improvements that serve as an engineered
    barrier addressing ground level or below ground
    environmental contamination, including, but not limited
    to, parking lots and other concrete or asphalt barriers,
    the clearing and grading of land, and importing additional
    soil and fill materials, or removal of soil and fill
    materials from the site;
        (c) subject to paragraph (d), costs of buildings and
    other vertical improvements that are located within the
    boundaries of a STAR bond district and owned by a political
    subdivision or other public entity, including without
    limitation police and fire stations, educational
    facilities, and public restrooms and rest areas;
        (c-1) costs of buildings and other vertical
    improvements that are located within the boundaries of a
    STAR bond district and owned by a destination user or
    destination hotel; except that only 2 destination users in
    a STAR bond district and one destination hotel are eligible
    to include the cost of those vertical improvements as
    project costs;
        (c-5) costs of buildings; rides and attractions, which
    include carousels, slides, roller coasters, displays,
    models, towers, works of art, and similar theme and
    amusement park improvements; and other vertical
    improvements that are located within the boundaries of a
    STAR bond district and owned by an entertainment user;
    except that only one entertainment user in a STAR bond
    district is eligible to include the cost of those vertical
    improvements as project costs;
        (d) costs of the design and construction of
    infrastructure and public works located within the
    boundaries of a STAR bond district that are reasonable or
    necessary to implement a STAR bond district plan or any
    STAR bond project plans, or both, except that project costs
    shall not include the cost of constructing a new municipal
    public building principally used to provide offices,
    storage space, or conference facilities or vehicle
    storage, maintenance, or repair for administrative, public
    safety, or public works personnel and that is not intended
    to replace an existing public building unless the political
    subdivision makes a reasonable determination in a STAR bond
    district plan or any STAR bond project plans, supported by
    information that provides the basis for that
    determination, that the new municipal building is required
    to meet an increase in the need for public safety purposes
    anticipated to result from the implementation of the STAR
    bond district plan or any STAR bond project plans;
        (e) costs of the design and construction of the
    following improvements located outside the boundaries of a
    STAR bond district, provided that the costs are essential
    to further the purpose and development of a STAR bond
    district plan and either (i) part of and connected to
    sewer, water, or utility service lines that physically
    connect to the STAR bond district or (ii) significant
    improvements for adjacent offsite highways, streets,
    roadways, and interchanges that are approved by the
    Illinois Department of Transportation. No other cost of
    infrastructure and public works improvements located
    outside the boundaries of a STAR bond district may be
    deemed project costs;
        (f) costs of job training and retraining projects,
    including the cost of "welfare to work" programs
    implemented by businesses located within a STAR bond
    district;
        (g) financing costs, including, but not limited to, all
    necessary and incidental expenses related to the issuance
    of obligations and which may include payment of interest on
    any obligations issued hereunder including interest
    accruing during the estimated period of construction of any
    improvements in a STAR bond district or any STAR bond
    projects for which such obligations are issued and for not
    exceeding 36 months thereafter and including reasonable
    reserves related thereto;
        (h) to the extent the political subdivision by written
    agreement accepts and approves the same, all or a portion
    of a taxing district's capital costs resulting from a STAR
    bond district or STAR bond projects necessarily incurred or
    to be incurred within a taxing district in furtherance of
    the objectives of a STAR bond district plan or STAR bond
    project plans;
        (i) interest cost incurred by a developer for project
    costs related to the acquisition, formation,
    implementation, development, construction, and
    administration of a STAR bond district, STAR bond district
    plan, STAR bond projects, or any STAR bond project plans
    provided that:
            (i) payment of such costs in any one year may not
        exceed 30% of the annual interest costs incurred by the
        developer with regard to the STAR bond district or any
        STAR bond projects during that year; and
            (ii) the total of such interest payments paid
        pursuant to this Act may not exceed 30% of the total
        cost paid or incurred by the developer for a STAR bond
        district or STAR bond projects, plus project costs,
        excluding any property assembly costs incurred by a
        political subdivision pursuant to this Act;
        (j) costs of common areas located within the boundaries
    of a STAR bond district;
        (k) costs of landscaping and plantings, retaining
    walls and fences, man-made lakes and ponds, shelters,
    benches, lighting, and similar amenities located within
    the boundaries of a STAR bond district;
        (l) costs of mounted building signs, site monument, and
    pylon signs located within the boundaries of a STAR bond
    district; or
        (m) if included in the STAR bond district plan and
    approved in writing by the Director, salaries or a portion
    of salaries for local government employees to the extent
    the same are directly attributable to the work of such
    employees on the establishment and management of a STAR
    bond district or any STAR bond projects.
    Except as specified in items (a) through (m), "project
costs" shall not include:
        (i) the cost of construction of buildings that are
    privately owned or owned by a municipality and leased to a
    developer or retail user for non-entertainment retail
    uses;
        (ii) moving expenses for employees of the businesses
    locating within the STAR bond district;
        (iii) property taxes for property located in the STAR
    bond district;
        (iv) lobbying costs; and
        (v) general overhead or administrative costs of the
    political subdivision that would still have been incurred
    by the political subdivision if the political subdivision
    had not established a STAR bond district.
    "Project development agreement" means any one or more
agreements, including any amendments thereto, between a master
developer and any co-developer or subdeveloper in connection
with a STAR bond project, which project development agreement
may include the political subdivision as a party.
    "Projected market area" means any area within the State in
which a STAR bond district or STAR bond project is projected to
have a significant fiscal or market impact as determined by the
Director.
    "Resolution" means a resolution, order, ordinance, or
other appropriate form of legislative action of a political
subdivision or other applicable public entity approved by a
vote of a majority of a quorum at a meeting of the governing
body of the political subdivision or applicable public entity.
    "STAR bond" means a sales tax and revenue bond, note, or
other obligation payable from pledged STAR revenues and issued
by a political subdivision, the proceeds of which shall be used
only to pay project costs as defined in this Act.
    "STAR bond district" means the specific area declared to be
an eligible area as determined by the political subdivision,
and approved by the Director, in which the political
subdivision may develop one or more STAR bond projects.
    "STAR bond district plan" means the preliminary or
conceptual plan that generally identifies the proposed STAR
bond project areas and identifies in a general manner the
buildings, facilities, and improvements to be constructed or
improved in each STAR bond project area.
    "STAR bond project" means a project within a STAR bond
district which is approved pursuant to Section 20.
    "STAR bond project area" means the geographic area within a
STAR bond district in which there may be one or more STAR bond
projects.
    "STAR bond project plan" means the written plan adopted by
a political subdivision for the development of a STAR bond
project in a STAR bond district; the plan may include, but is
not limited to, (i) project costs incurred prior to the date of
the STAR bond project plan and estimated future STAR bond
project costs, (ii) proposed sources of funds to pay those
costs, (iii) the nature and estimated term of any obligations
to be issued by the political subdivision to pay those costs,
(iv) the most recent equalized assessed valuation of the STAR
bond project area, (v) an estimate of the equalized assessed
valuation of the STAR bond district or applicable project area
after completion of a STAR bond project, (vi) a general
description of the types of any known or proposed developers,
users, or tenants of the STAR bond project or projects included
in the plan, (vii) a general description of the type,
structure, and character of the property or facilities to be
developed or improved, (viii) a description of the general land
uses to apply to the STAR bond project, and (ix) a general
description or an estimate of the type, class, and number of
employees to be employed in the operation of the STAR bond
project.
    "State sales tax" means all of the net revenue realized
under the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act, and the Service Occupation Tax Act from
transactions at places of business located within a STAR bond
district, excluding that portion of the net revenue realized
under the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act, and the Service Occupation Tax Act from
transactions at places of business located within a STAR bond
district that is deposited into the Local Government Tax Fund
and the County and Mass Transit District Fund.
    "State sales tax increment" means (i) 100% of that portion
of the State sales tax that is in excess of the State sales tax
for the same month in the base year, as determined by the
Department of Revenue, from transactions at up to 2 destination
users, one destination hotel, and one entertainment user
located within a STAR bond district, which destination users,
destination hotel, and entertainment user shall be designated
by the master developer and approved by the political
subdivision and the Director in conjunction with the applicable
STAR bond project approval, and (ii) 25% of that portion of the
State sales tax that is in excess of the State sales tax for
the same month in the base year, as determined by the
Department of Revenue, from all other transactions within a
STAR bond district. If any portion of State sales taxes are, at
the time of formation of a STAR bond district, already subject
to tax increment financing under the Tax Increment Allocation
Redevelopment Act, then the State sales tax increment for such
portion shall be frozen at the base year established in
accordance with this Act, and all future incremental increases
shall be included in the State sales tax increment under this
Act. Any party otherwise entitled to receipt of incremental
State sales tax revenues through an existing tax increment
financing district shall be entitled to continue to receive
such revenues up to the amount frozen in the base year. Nothing
in this Act shall affect the prior qualification of existing
redevelopment project costs incurred that are eligible for
reimbursement under the Tax Increment Allocation Redevelopment
Act. In such event, prior to approving a STAR bond district,
the political subdivision forming the STAR bond district shall
take such action as is necessary, including amending the
existing tax increment financing district redevelopment plan,
to carry out the provisions of this Act.
    "Substantial change" means a change wherein the proposed
STAR bond project plan differs substantially in size, scope, or
use from the approved STAR bond district plan or STAR bond
project plan.
    "Taxpayer" means an individual, partnership, corporation,
limited liability company, trust, estate, or other entity that
is subject to the Illinois Income Tax Act.
    "Total development costs" means the aggregate public and
private investment in a STAR bond district, including project
costs and other direct and indirect costs related to the
development of the STAR bond district.
    "Traditional retail use" means the operation of a business
that derives at least 90% of its annual gross revenue from
sales at retail, as that phrase is defined by Section 1 of the
Retailers' Occupation Tax Act, but does not include the
operations of destination users, entertainment users,
restaurants, hotels, retail uses within hotels, or any other
non-retail uses.
    "Vacant" means that portion of the land in a proposed STAR
bond district that is not occupied by a building, facility, or
other vertical improvement.
(Source: P.A. 101-10, eff. 6-5-19; 101-455, eff. 8-23-19;
revised 9-25-19.)
 
    (50 ILCS 470/31)
    Sec. 31. STAR bond occupation taxes.
    (a) If the corporate authorities of a political subdivision
have established a STAR bond district and have elected to
impose a tax by ordinance pursuant to subsection (b) or (c) of
this Section, each year after the date of the adoption of the
ordinance and until all STAR bond project costs and all
political subdivision obligations financing the STAR bond
project costs, if any, have been paid in accordance with the
STAR bond project plans, but in no event longer than the
maximum maturity date of the last of the STAR bonds issued for
projects in the STAR bond district, all amounts generated by
the retailers' occupation tax and service occupation tax shall
be collected and the tax shall be enforced by the Department of
Revenue in the same manner as all retailers' occupation taxes
and service occupation taxes imposed in the political
subdivision imposing the tax. The corporate authorities of the
political subdivision shall deposit the proceeds of the taxes
imposed under subsections (b) and (c) into either (i) a special
fund held by the corporate authorities of the political
subdivision called the STAR Bonds Tax Allocation Fund for the
purpose of paying STAR bond project costs and obligations
incurred in the payment of those costs if such taxes are
designated as pledged STAR revenues by resolution or ordinance
of the political subdivision or (ii) the political
subdivision's general corporate fund if such taxes are not
designated as pledged STAR revenues by resolution or ordinance.
    The tax imposed under this Section by a municipality may be
imposed only on the portion of a STAR bond district that is
within the boundaries of the municipality. For any part of a
STAR bond district that lies outside of the boundaries of that
municipality, the municipality in which the other part of the
STAR bond district lies (or the county, in cases where a
portion of the STAR bond district lies in the unincorporated
area of a county) is authorized to impose the tax under this
Section on that part of the STAR bond district.
    (b) The corporate authorities of a political subdivision
that has established a STAR bond district under this Act may,
by ordinance or resolution, impose a STAR Bond Retailers'
Occupation Tax upon all persons engaged in the business of
selling tangible personal property, other than an item of
tangible personal property titled or registered with an agency
of this State's government, at retail in the STAR bond district
at a rate not to exceed 1% of the gross receipts from the sales
made in the course of that business, to be imposed only in
0.25% increments. The tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act. Beginning December 1, 2019 and through
December 31, 2020, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the District does not have an airport-related
purpose to which aviation fuel tax revenue is dedicated, then
aviation fuel is excluded from the tax. The municipality must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act 8-11-22 of the Illinois Municipal Code. For purposes of
this Act, "airport-related purposes" has the meaning ascribed
in Section 6z-20.2 of the State Finance Act. Beginning January
1, 2021, this tax is not imposed on sales of aviation fuel This
exclusion 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 District.
    The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department to
a retailer under the Retailers' Occupation Tax Act shall permit
the retailer to engage in a business that is taxable under any
ordinance or resolution enacted pursuant to this subsection
without registering separately with the Department under such
ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection, to collect all taxes and penalties due
under this subsection in the manner hereinafter provided, and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty under this
subsection. In the administration of, and compliance with, this
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same
conditions, restrictions, limitations, penalties, exclusions,
exemptions, and definitions of terms and employ the same modes
of procedure, as are prescribed in Sections 1, 1a through 1o, 2
through 2-65 (in respect to all provisions therein other than
the State rate of tax), 2c through 2h, 3 (except as to the
disposition of taxes and penalties collected, and except that
the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 deposited into the
Local Government Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d,
5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12,
13, and 14 of the Retailers' Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully as
if those provisions were set forth herein.
    If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsection (c) of this Section.
    (c) If a tax has been imposed under subsection (b), a STAR
Bond Service Occupation Tax shall also be imposed upon all
persons engaged, in the STAR bond district, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the STAR bond district, either in the form of tangible personal
property or in the form of real estate as an incident to a sale
of service. The tax shall be imposed at the same rate as the
tax imposed in subsection (b) and shall not exceed 1% of the
selling price of tangible personal property so transferred
within the STAR bond district, to be imposed only in 0.25%
increments. The tax may not be imposed on tangible personal
property taxed at the 1% rate under the Service Occupation Tax
Act. Beginning December 1, 2019 and through December 31, 2020,
this tax is not imposed on sales of aviation fuel unless the
tax revenue is expended for airport-related purposes. If the
District does not have an airport-related purpose to which
aviation fuel tax revenue is dedicated, then aviation fuel is
excluded from the tax. The municipality must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act 8-11-22 of
the Illinois Municipal Code. For purposes of this Act,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. Beginning January 1, 2021,
this tax is not imposed on sales of aviation fuel This
exclusion 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 District.
    The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department to
a retailer under the Retailers' Occupation Tax Act or under the
Service Occupation Tax Act shall permit the registrant to
engage in a business that is taxable under any ordinance or
resolution enacted pursuant to this subsection without
registering separately with the Department under that
ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection, to collect all taxes and penalties due
under this subsection, to dispose of taxes and penalties so
collected in the manner hereinafter provided, and to determine
all rights to credit memoranda arising on account of the
erroneous payment of tax or penalty under this subsection. In
the administration of, and compliance with this subsection, the
Department and persons who are subject to this subsection shall
have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions,
and definitions of terms and employ the same modes of procedure
as are prescribed in Sections 2, 2a through 2d, 3 through 3-50
(in respect to all provisions therein other than the State rate
of tax), 4 (except that the reference to the State shall be to
the STAR bond district), 5, 7, 8 (except that the jurisdiction
to which the tax shall be a debt to the extent indicated in
that Section 8 shall be the political subdivision), 9 (except
as to the disposition of taxes and penalties collected, and
except that the returned merchandise credit for this tax may
not be taken against any State tax, and except that the
retailer's discount is not allowed for taxes paid on aviation
fuel that are subject to the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 deposited into the Local
Government Aviation Trust Fund), 10, 11, 12 (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the political subdivision), the first paragraph of Section 15,
and Sections 16, 17, 18, 19 and 20 of the Service Occupation
Tax Act and all provisions of the Uniform Penalty and Interest
Act, as fully as if those provisions were set forth herein.
    If a tax is imposed under this subsection (c), a tax shall
also be imposed under subsection (b) of this Section.
    (d) Persons subject to any tax imposed under this Section
may reimburse themselves for their seller's tax liability under
this Section by separately stating the tax as an additional
charge, which charge may be stated in combination, in a single
amount, with State taxes that sellers are required to collect
under the Use Tax Act, in accordance with such bracket
schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the STAR Bond Retailers' Occupation Tax Fund
or the Local Government Aviation Trust Fund, as appropriate.
    Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes, penalties, and interest
collected under this Section for deposit into the STAR Bond
Retailers' Occupation Tax Fund. Taxes and penalties collected
on aviation fuel sold on or after December 1, 2019, shall be
immediately paid over by the Department to the State Treasurer,
ex officio, as trustee, for deposit into the Local Government
Aviation Trust Fund. The Department shall only pay moneys into
the Local Government State Aviation Trust Program Fund under
this Section 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
District. On or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named political
subdivisions from the STAR Bond Retailers' Occupation Tax Fund,
the political subdivisions to be those from which retailers
have paid taxes or penalties under this Section to the
Department during the second preceding calendar month. The
amount to be paid to each political subdivision shall be the
amount (not including credit memoranda and not including taxes
and penalties collected on aviation fuel sold on or after
December 1, 2019) collected under this Section during the
second preceding calendar month by the Department plus an
amount the Department determines is necessary to offset any
amounts that were erroneously paid to a different taxing body,
and not including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department,
less 3% of that amount, which shall be deposited into the Tax
Compliance and Administration Fund and shall be used by the
Department, subject to appropriation, to cover the costs of the
Department in administering and enforcing the provisions of
this Section, on behalf of such political subdivision, and not
including any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
political subdivision. Within 10 days after receipt by the
Comptroller of the disbursement certification to the political
subdivisions provided for in this Section to be given to the
Comptroller by the Department, the Comptroller shall cause the
orders to be drawn for the respective amounts in accordance
with the directions contained in the certification. The
proceeds of the tax paid to political subdivisions under this
Section shall be deposited into either (i) the STAR Bonds Tax
Allocation Fund by the political subdivision if the political
subdivision has designated them as pledged STAR revenues by
resolution or ordinance or (ii) the political subdivision's
general corporate fund if the political subdivision has not
designated them as pledged STAR revenues.
    An ordinance or resolution imposing or discontinuing the
tax under this Section or effecting a change in the rate
thereof shall either (i) be adopted and a certified copy
thereof filed with the Department on or before the first day of
April, whereupon the Department, if all other requirements of
this Section are met, shall proceed to administer and enforce
this Section as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other requirements of this Section
are met, the Department shall proceed to administer and enforce
this Section as of the first day of January next following the
adoption and filing.
    The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this Section until the political subdivision also
provides, in the manner prescribed by the Department, the
boundaries of the STAR bond district and each address in the
STAR bond district in such a way that the Department can
determine by its address whether a business is located in the
STAR bond district. The political subdivision must provide this
boundary and address information to the Department on or before
April 1 for administration and enforcement of the tax under
this Section by the Department beginning on the following July
1 and on or before October 1 for administration and enforcement
of the tax under this Section by the Department beginning on
the following January 1. The Department of Revenue shall not
administer or enforce any change made to the boundaries of a
STAR bond district or any address change, addition, or deletion
until the political subdivision reports the boundary change or
address change, addition, or deletion to the Department in the
manner prescribed by the Department. The political subdivision
must provide this boundary change or address change, addition,
or deletion information to the Department on or before April 1
for administration and enforcement by the Department of the
change, addition, or deletion beginning on the following July 1
and on or before October 1 for administration and enforcement
by the Department of the change, addition, or deletion
beginning on the following January 1. The retailers in the STAR
bond district shall be responsible for charging the tax imposed
under this Section. If a retailer is incorrectly included or
excluded from the list of those required to collect the tax
under this Section, both the Department of Revenue and the
retailer shall be held harmless if they reasonably relied on
information provided by the political subdivision.
    A political subdivision that imposes the tax under this
Section must submit to the Department of Revenue any other
information as the Department may require that is necessary for
the administration and enforcement of the tax.
    When certifying the amount of a monthly disbursement to a
political subdivision under this Section, the Department shall
increase or decrease the amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
    Nothing in this Section shall be construed to authorize the
political subdivision to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this
State.
    (e) When STAR bond project costs, including, without
limitation, all political subdivision obligations financing
STAR bond project costs, have been paid, any surplus funds then
remaining in the STAR Bonds Tax Allocation Fund shall be
distributed to the treasurer of the political subdivision for
deposit into the political subdivision's general corporate
fund. Upon payment of all STAR bond project costs and
retirement of obligations, but in no event later than the
maximum maturity date of the last of the STAR bonds issued in
the STAR bond district, the political subdivision shall adopt
an ordinance immediately rescinding the taxes imposed pursuant
to this Section and file a certified copy of the ordinance with
the Department in the form and manner as described in this
Section.
(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19.)
 
    Section 10-60. The Counties Code is amended by changing
Sections 5-1006, 5-1006.5, 5-1006.7, 5-1007, 5-1008.5, and
5-1035.1 as follows:
 
    (55 ILCS 5/5-1006)  (from Ch. 34, par. 5-1006)
    Sec. 5-1006. Home Rule County Retailers' Occupation Tax
Law. Any county that is a home rule unit may impose a tax upon
all persons engaged in the business of selling tangible
personal property, other than an item of tangible personal
property titled or registered with an agency of this State's
government, at retail in the county on the gross receipts from
such sales made in the course of their business. If imposed,
this tax shall only be imposed in 1/4% increments. On and after
September 1, 1991, this additional tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act. Beginning December 1, 2019, this
tax is not imposed on sales of aviation fuel unless the tax
revenue is expended for airport-related purposes. If the county
does not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel is excluded from
the tax. The county must comply with the certification
requirements for airport-related purposes under Section 2-22
of the Retailers' Occupation Tax Act 5-1184. For purposes of
this Section Act, "airport-related purposes" has the meaning
ascribed in Section 6z-20.2 of the State Finance Act. This
exclusion 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 county. The changes made to this
Section by this amendatory Act of the 101st General Assembly
are a denial and limitation of home rule powers and functions
under subsection (g) of Section 6 of Article VII of the
Illinois Constitution. The tax imposed by a home rule county
pursuant to this Section and all civil penalties that may be
assessed as an incident thereof shall be collected and enforced
by the State Department of Revenue. The certificate of
registration that is issued by the Department to a retailer
under the Retailers' Occupation Tax Act shall permit the
retailer to engage in a business that is taxable under any
ordinance or resolution enacted pursuant to this Section
without registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;
to collect all taxes and penalties due hereunder; to dispose of
taxes and penalties so collected in the manner hereinafter
provided; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section, the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
1k, 1m, 1n, 2 through 2-65 (in respect to all provisions
therein other than the State rate of tax), 3 (except as to the
disposition of taxes and penalties collected, and except that
the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
    No tax may be imposed by a home rule county pursuant to
this Section unless the county also imposes a tax at the same
rate pursuant to Section 5-1007.
    Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their seller's tax liability hereunder by separately stating
such tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the home rule county retailers' occupation tax
fund or the Local Government Aviation Trust Fund, as
appropriate.
    Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Home Rule County Retailers'
Occupation Tax Fund. Taxes and penalties collected on aviation
fuel sold on or after December 1, 2019, shall be immediately
paid over by the Department to the State Treasurer, ex officio,
as trustee, for deposit into the Local Government Aviation
Trust Fund. The Department shall only pay moneys into the Local
Government Aviation Trust Fund under this Section 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 county.
    As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named counties, the
counties to be those from which retailers have paid taxes or
penalties hereunder to the Department during the second
preceding calendar month. The amount to be paid to each county
shall be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019) collected hereunder during the
second preceding calendar month by the Department plus an
amount the Department determines is necessary to offset any
amounts that were erroneously paid to a different taxing body,
and not including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department on
behalf of such county, and not including any amount which the
Department determines is necessary to offset any amounts which
were payable to a different taxing body but were erroneously
paid to the county, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the counties, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
Section. Within 10 days after receipt, by the Comptroller, of
the disbursement certification to the counties and the Tax
Compliance and Administration Fund provided for in this Section
to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in the certification.
    In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in March of each year to
each county that received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.
The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year
(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
    For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to coal
or other mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale
is exempt under the United States Constitution as a sale in
interstate or foreign commerce.
    Nothing in this Section shall be construed to authorize a
county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
    An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following such adoption and filing.
Beginning April 1, 1998, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall either (i) be adopted and a certified copy
thereof filed with the Department on or before the first day of
April, whereupon the Department shall proceed to administer and
enforce this Section as of the first day of July next following
the adoption and filing; or (ii) be adopted and a certified
copy thereof filed with the Department on or before the first
day of October, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
January next following the adoption and filing.
    When certifying the amount of a monthly disbursement to a
county under this Section, the Department shall increase or
decrease such amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
    This Section shall be known and may be cited as the Home
Rule County Retailers' Occupation Tax Law.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
7-12-19.)
 
    (55 ILCS 5/5-1006.5)
    Sec. 5-1006.5. Special County Retailers' Occupation Tax
For Public Safety, Public Facilities, Mental Health, Substance
Abuse, or Transportation.
    (a) The county board of any county may impose a tax upon
all persons engaged in the business of selling tangible
personal property, other than personal property titled or
registered with an agency of this State's government, at retail
in the county on the gross receipts from the sales made in the
course of business to provide revenue to be used exclusively
for public safety, public facility, mental health, substance
abuse, or transportation purposes in that county (except as
otherwise provided in this Section), if a proposition for the
tax has been submitted to the electors of that county and
approved by a majority of those voting on the question. If
imposed, this tax shall be imposed only in one-quarter percent
increments. By resolution, the county board may order the
proposition to be submitted at any election. If the tax is
imposed for transportation purposes for expenditures for
public highways or as authorized under the Illinois Highway
Code, the county board must publish notice of the existence of
its long-range highway transportation plan as required or
described in Section 5-301 of the Illinois Highway Code and
must make the plan publicly available prior to approval of the
ordinance or resolution imposing the tax. If the tax is imposed
for transportation purposes for expenditures for passenger
rail transportation, the county board must publish notice of
the existence of its long-range passenger rail transportation
plan and must make the plan publicly available prior to
approval of the ordinance or resolution imposing the tax.
    If a tax is imposed for public facilities purposes, then
the name of the project may be included in the proposition at
the discretion of the county board as determined in the
enabling resolution. For example, the "XXX Nursing Home" or the
"YYY Museum".
    The county clerk shall certify the question to the proper
election authority, who shall submit the proposition at an
election in accordance with the general election law.
        (1) The proposition for public safety purposes shall be
    in substantially the following form:
        "To pay for public safety purposes, shall (name of
    county) be authorized to impose an increase on its share of
    local sales taxes by (insert rate)?"
        As additional information on the ballot below the
    question shall appear the following:
        "This would mean that a consumer would pay an
    additional (insert amount) in sales tax for every $100 of
    tangible personal property bought at retail."
        The county board may also opt to establish a sunset
    provision at which time the additional sales tax would
    cease being collected, if not terminated earlier by a vote
    of the county board. If the county board votes to include a
    sunset provision, the proposition for public safety
    purposes shall be in substantially the following form:
        "To pay for public safety purposes, shall (name of
    county) be authorized to impose an increase on its share of
    local sales taxes by (insert rate) for a period not to
    exceed (insert number of years)?"
        As additional information on the ballot below the
    question shall appear the following:
        "This would mean that a consumer would pay an
    additional (insert amount) in sales tax for every $100 of
    tangible personal property bought at retail. If imposed,
    the additional tax would cease being collected at the end
    of (insert number of years), if not terminated earlier by a
    vote of the county board."
        For the purposes of the paragraph, "public safety
    purposes" means crime prevention, detention, fire
    fighting, police, medical, ambulance, or other emergency
    services.
        Votes shall be recorded as "Yes" or "No".
        Beginning on the January 1 or July 1, whichever is
    first, that occurs not less than 30 days after May 31, 2015
    (the effective date of Public Act 99-4), Adams County may
    impose a public safety retailers' occupation tax and
    service occupation tax at the rate of 0.25%, as provided in
    the referendum approved by the voters on April 7, 2015,
    notwithstanding the omission of the additional information
    that is otherwise required to be printed on the ballot
    below the question pursuant to this item (1).
        (2) The proposition for transportation purposes shall
    be in substantially the following form:
        "To pay for improvements to roads and other
    transportation purposes, shall (name of county) be
    authorized to impose an increase on its share of local
    sales taxes by (insert rate)?"
        As additional information on the ballot below the
    question shall appear the following:
        "This would mean that a consumer would pay an
    additional (insert amount) in sales tax for every $100 of
    tangible personal property bought at retail."
        The county board may also opt to establish a sunset
    provision at which time the additional sales tax would
    cease being collected, if not terminated earlier by a vote
    of the county board. If the county board votes to include a
    sunset provision, the proposition for transportation
    purposes shall be in substantially the following form:
        "To pay for road improvements and other transportation
    purposes, shall (name of county) be authorized to impose an
    increase on its share of local sales taxes by (insert rate)
    for a period not to exceed (insert number of years)?"
        As additional information on the ballot below the
    question shall appear the following:
        "This would mean that a consumer would pay an
    additional (insert amount) in sales tax for every $100 of
    tangible personal property bought at retail. If imposed,
    the additional tax would cease being collected at the end
    of (insert number of years), if not terminated earlier by a
    vote of the county board."
        For the purposes of this paragraph, transportation
    purposes means construction, maintenance, operation, and
    improvement of public highways, any other purpose for which
    a county may expend funds under the Illinois Highway Code,
    and passenger rail transportation.
        The votes shall be recorded as "Yes" or "No".
        (3) The proposition for public facilities purposes
    shall be in substantially the following form:
        "To pay for public facilities purposes, shall (name of
    county) be authorized to impose an increase on its share of
    local sales taxes by (insert rate)?"
        As additional information on the ballot below the
    question shall appear the following:
        "This would mean that a consumer would pay an
    additional (insert amount) in sales tax for every $100 of
    tangible personal property bought at retail."
        The county board may also opt to establish a sunset
    provision at which time the additional sales tax would
    cease being collected, if not terminated earlier by a vote
    of the county board. If the county board votes to include a
    sunset provision, the proposition for public facilities
    purposes shall be in substantially the following form:
        "To pay for public facilities purposes, shall (name of
    county) be authorized to impose an increase on its share of
    local sales taxes by (insert rate) for a period not to
    exceed (insert number of years)?"
        As additional information on the ballot below the
    question shall appear the following:
        "This would mean that a consumer would pay an
    additional (insert amount) in sales tax for every $100 of
    tangible personal property bought at retail. If imposed,
    the additional tax would cease being collected at the end
    of (insert number of years), if not terminated earlier by a
    vote of the county board."
        For purposes of this Section, "public facilities
    purposes" means the acquisition, development,
    construction, reconstruction, rehabilitation, improvement,
    financing, architectural planning, and installation of
    capital facilities consisting of buildings, structures,
    and durable equipment and for the acquisition and
    improvement of real property and interest in real property
    required, or expected to be required, in connection with
    the public facilities, for use by the county for the
    furnishing of governmental services to its citizens,
    including, but not limited to, museums and nursing homes.
        The votes shall be recorded as "Yes" or "No".
        (4) The proposition for mental health purposes shall be
    in substantially the following form:
        "To pay for mental health purposes, shall (name of
    county) be authorized to impose an increase on its share of
    local sales taxes by (insert rate)?"
        As additional information on the ballot below the
    question shall appear the following:
        "This would mean that a consumer would pay an
    additional (insert amount) in sales tax for every $100 of
    tangible personal property bought at retail."
        The county board may also opt to establish a sunset
    provision at which time the additional sales tax would
    cease being collected, if not terminated earlier by a vote
    of the county board. If the county board votes to include a
    sunset provision, the proposition for public facilities
    purposes shall be in substantially the following form:
        "To pay for mental health purposes, shall (name of
    county) be authorized to impose an increase on its share of
    local sales taxes by (insert rate) for a period not to
    exceed (insert number of years)?"
        As additional information on the ballot below the
    question shall appear the following:
        "This would mean that a consumer would pay an
    additional (insert amount) in sales tax for every $100 of
    tangible personal property bought at retail. If imposed,
    the additional tax would cease being collected at the end
    of (insert number of years), if not terminated earlier by a
    vote of the county board."
        The votes shall be recorded as "Yes" or "No".
        (5) The proposition for substance abuse purposes shall
    be in substantially the following form:
        "To pay for substance abuse purposes, shall (name of
    county) be authorized to impose an increase on its share of
    local sales taxes by (insert rate)?"
        As additional information on the ballot below the
    question shall appear the following:
        "This would mean that a consumer would pay an
    additional (insert amount) in sales tax for every $100 of
    tangible personal property bought at retail."
        The county board may also opt to establish a sunset
    provision at which time the additional sales tax would
    cease being collected, if not terminated earlier by a vote
    of the county board. If the county board votes to include a
    sunset provision, the proposition for public facilities
    purposes shall be in substantially the following form:
        "To pay for substance abuse purposes, shall (name of
    county) be authorized to impose an increase on its share of
    local sales taxes by (insert rate) for a period not to
    exceed (insert number of years)?"
        As additional information on the ballot below the
    question shall appear the following:
        "This would mean that a consumer would pay an
    additional (insert amount) in sales tax for every $100 of
    tangible personal property bought at retail. If imposed,
    the additional tax would cease being collected at the end
    of (insert number of years), if not terminated earlier by a
    vote of the county board."
        The votes shall be recorded as "Yes" or "No".
    If a majority of the electors voting on the proposition
vote in favor of it, the county may impose the tax. A county
may not submit more than one proposition authorized by this
Section to the electors at any one time.
    This additional tax may not be imposed on tangible personal
property taxed at the 1% rate under the Retailers' Occupation
Tax Act. Beginning December 1, 2019 and through December 31,
2020, this tax is not imposed on sales of aviation fuel unless
the tax revenue is expended for airport-related purposes. If
the county does not have an airport-related purpose to which it
dedicates aviation fuel tax revenue, then aviation fuel is
excluded from the tax. The county must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act 5-1184. For
purposes of this Section Act, "airport-related purposes" has
the meaning ascribed in Section 6z-20.2 of the State Finance
Act. Beginning January 1, 2021, this tax is not imposed on
sales of aviation fuel This exclusion 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 county.
The tax imposed by a county under this Section and all civil
penalties that may be assessed as an incident of the tax shall
be collected and enforced by the Illinois Department of Revenue
and deposited into a special fund created for that purpose. The
certificate of registration that is issued by the Department to
a retailer under the Retailers' Occupation Tax Act shall permit
the retailer to engage in a business that is taxable without
registering separately with the Department under an ordinance
or resolution under this Section. The Department has full power
to administer and enforce this Section, to collect all taxes
and penalties due under this Section, to dispose of taxes and
penalties so collected in the manner provided in this Section,
and to determine all rights to credit memoranda arising on
account of the erroneous payment of a tax or penalty under this
Section. In the administration of and compliance with this
Section, the Department and persons who are subject to this
Section shall (i) have the same rights, remedies, privileges,
immunities, powers, and duties, (ii) be subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-70 (in respect to all
provisions contained in those Sections other than the State
rate of tax), 2a, 2b, 2c, 3 (except provisions relating to
transaction returns and quarter monthly payments, and except
that the retailer's discount is not allowed for taxes paid on
aviation fuel that are deposited into the Local Government
Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
of the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act as if those provisions were
set forth in this Section.
    Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
sellers' tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax which sellers are required
to collect under the Use Tax Act, pursuant to such bracketed
schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Public Safety, Public Facilities,
Mental Health, Substance Abuse, or Transportation Retailers'
Occupation Tax Fund or the Local Government Aviation Trust
Fund, as appropriate.
    (b) If a tax has been imposed under subsection (a), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the county, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the county as an incident to a sale of service. This tax may
not be imposed on tangible personal property taxed at the 1%
rate under the Service Occupation Tax Act. Beginning December
1, 2019 and through December 31, 2020, this tax is not imposed
on sales of aviation fuel unless the tax revenue is expended
for airport-related purposes. If the county does not have an
airport-related purpose to which it dedicates aviation fuel tax
revenue, then aviation fuel is excluded from the tax. The
county must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act 5-1184. For purposes of this Section Act,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. Beginning January 1, 2021,
this tax is not imposed on sales of aviation fuel This
exclusion 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 county. The tax imposed under this
subsection and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the
Department of Revenue. The Department has full power to
administer and enforce this subsection; to collect all taxes
and penalties due hereunder; to dispose of taxes and penalties
so collected in the manner hereinafter provided; and to
determine all rights to credit memoranda arising on account of
the erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with this subsection, the
Department and persons who are subject to this paragraph shall
(i) have the same rights, remedies, privileges, immunities,
powers, and duties, (ii) be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions,
and definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 2 (except that the
reference to State in the definition of supplier maintaining a
place of business in this State shall mean the county), 2a, 2b,
2c, 3 through 3-50 (in respect to all provisions therein other
than the State rate of tax), 4 (except that the reference to
the State shall be to the county), 5, 7, 8 (except that the
jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the county), 9 (except as
to the disposition of taxes and penalties collected, and except
that the retailer's discount is not allowed for taxes paid on
aviation fuel that are deposited into the Local Government
Aviation Trust Fund), 10, 11, 12 (except the reference therein
to Section 2b of the Retailers' Occupation Tax Act), 13 (except
that any reference to the State shall mean the county), Section
15, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act,
and Section 3-7 of the Uniform Penalty and Interest Act, as
fully as if those provisions were set forth herein.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
    Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Public Safety, Public Facilities,
Mental Health, Substance Abuse, or Transportation Retailers'
Occupation Fund or the Local Government Aviation Trust Fund, as
appropriate.
    Nothing in this subsection shall be construed to authorize
the county to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by the State.
    (c) Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes and penalties collected under
this Section to be deposited into the County Public Safety,
Public Facilities, Mental Health, Substance Abuse, or
Transportation Retailers' Occupation Tax Fund, which shall be
an unappropriated trust fund held outside of the State
treasury. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019 and through December 31, 2020,
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust 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 county.
    As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the counties from which
retailers have paid taxes or penalties to the Department during
the second preceding calendar month. The amount to be paid to
each county, and deposited by the county into its special fund
created for the purposes of this Section, shall be the amount
(not including credit memoranda and not including taxes and
penalties collected on aviation fuel sold on or after December
1, 2019 and through December 31, 2020) collected under this
Section during the second preceding calendar month by the
Department plus an amount the Department determines is
necessary to offset any amounts that were erroneously paid to a
different taxing body, and not including (i) an amount equal to
the amount of refunds made during the second preceding calendar
month by the Department on behalf of the county, (ii) any
amount that the Department determines is necessary to offset
any amounts that were payable to a different taxing body but
were erroneously paid to the county, (iii) any amounts that are
transferred to the STAR Bonds Revenue Fund, and (iv) 1.5% of
the remainder, which shall be transferred into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the counties, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
subsection. Within 10 days after receipt by the Comptroller of
the disbursement certification to the counties and the Tax
Compliance and Administration Fund provided for in this Section
to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
    In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in March of each year to
each county that received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.
The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year
(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
    (d) For the purpose of determining the local governmental
unit whose tax is applicable, a retail sale by a producer of
coal or another mineral mined in Illinois is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or another mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
    (e) Nothing in this Section shall be construed to authorize
a county to impose a tax upon the privilege of engaging in any
business that under the Constitution of the United States may
not be made the subject of taxation by this State.
    (e-5) If a county imposes a tax under this Section, the
county board may, by ordinance, discontinue or lower the rate
of the tax. If the county board lowers the tax rate or
discontinues the tax, a referendum must be held in accordance
with subsection (a) of this Section in order to increase the
rate of the tax or to reimpose the discontinued tax.
    (f) Beginning April 1, 1998 and through December 31, 2013,
the results of any election authorizing a proposition to impose
a tax under this Section or effecting a change in the rate of
tax, or any ordinance lowering the rate or discontinuing the
tax, shall be certified by the county clerk and filed with the
Illinois Department of Revenue either (i) on or before the
first day of April, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of July next
following the filing; or (ii) on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce the tax as of the first day of January next
following the filing.
    Beginning January 1, 2014, the results of any election
authorizing a proposition to impose a tax under this Section or
effecting an increase in the rate of tax, along with the
ordinance adopted to impose the tax or increase the rate of the
tax, or any ordinance adopted to lower the rate or discontinue
the tax, shall be certified by the county clerk and filed with
the Illinois Department of Revenue either (i) on or before the
first day of May, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of July next
following the adoption and filing; or (ii) on or before the
first day of October, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of January
next following the adoption and filing.
    (g) When certifying the amount of a monthly disbursement to
a county under this Section, the Department shall increase or
decrease the amounts by an amount necessary to offset any
miscalculation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a miscalculation is discovered.
    (h) This Section may be cited as the "Special County
Occupation Tax For Public Safety, Public Facilities, Mental
Health, Substance Abuse, or Transportation Law".
    (i) For purposes of this Section, "public safety" includes,
but is not limited to, crime prevention, detention, fire
fighting, police, medical, ambulance, or other emergency
services. The county may share tax proceeds received under this
Section for public safety purposes, including proceeds
received before August 4, 2009 (the effective date of Public
Act 96-124), with any fire protection district located in the
county. For the purposes of this Section, "transportation"
includes, but is not limited to, the construction, maintenance,
operation, and improvement of public highways, any other
purpose for which a county may expend funds under the Illinois
Highway Code, and passenger rail transportation. For the
purposes of this Section, "public facilities purposes"
includes, but is not limited to, the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning, and installation of capital
facilities consisting of buildings, structures, and durable
equipment and for the acquisition and improvement of real
property and interest in real property required, or expected to
be required, in connection with the public facilities, for use
by the county for the furnishing of governmental services to
its citizens, including, but not limited to, museums and
nursing homes.
    (j) The Department may promulgate rules to implement Public
Act 95-1002 only to the extent necessary to apply the existing
rules for the Special County Retailers' Occupation Tax for
Public Safety to this new purpose for public facilities.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
100-1167, eff. 1-4-19; 100-1171, eff. 1-4-19; 101-10, eff.
6-5-19; 101-81, eff. 7-12-19; 101-275, eff. 8-9-19; revised
9-10-19.)
 
    (55 ILCS 5/5-1006.7)
    Sec. 5-1006.7. School facility and resources occupation
taxes.
    (a) In any county, a tax shall be imposed upon all persons
engaged in the business of selling tangible personal property,
other than personal property titled or registered with an
agency of this State's government, at retail in the county on
the gross receipts from the sales made in the course of
business to provide revenue to be used exclusively (i) for (i)
school facility purposes (except as otherwise provided in this
Section), (ii) school resource officers and mental health
professionals, or (iii) school facility purposes, school
resource officers, and mental health professionals if a
proposition for the tax has been submitted to the electors of
that county and approved by a majority of those voting on the
question as provided in subsection (c). The tax under this
Section shall be imposed only in one-quarter percent increments
and may not exceed 1%.
    This additional tax may not be imposed on tangible personal
property taxed at the 1% rate under the Retailers' Occupation
Tax Act. Beginning December 1, 2019 and through December 31,
2020, this tax is not imposed on sales of aviation fuel unless
the tax revenue is expended for airport-related purposes. If
the county does not have an airport-related purpose to which it
dedicates aviation fuel tax revenue, then aviation fuel is
excluded from the tax. The county must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act 5-1184. For
purposes of this Section Act, "airport-related purposes" has
the meaning ascribed in Section 6z-20.2 of the State Finance
Act. Beginning January 1, 2021, this tax is not imposed on
sales of aviation fuel This exclusion 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 county.
The Department of Revenue has full power to administer and
enforce this subsection, to collect all taxes and penalties due
under this subsection, to dispose of taxes and penalties so
collected in the manner provided in this subsection, and to
determine all rights to credit memoranda arising on account of
the erroneous payment of a tax or penalty under this
subsection. The Department shall deposit all taxes and
penalties collected under this subsection into a special fund
created for that purpose.
    In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection (i) have the same rights, remedies, privileges,
immunities, powers, and duties, (ii) are subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) shall employ the same modes of
procedure as are set forth in Sections 1 through 1o, 2 through
2-70 (in respect to all provisions contained in those Sections
other than the State rate of tax), 2a through 2h, 3 (except as
to the disposition of taxes and penalties collected, and except
that the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 that are deposited
into the Local Government Aviation Trust Fund), 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8,
9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
and all provisions of the Uniform Penalty and Interest Act as
if those provisions were set forth in this subsection.
    The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act permits the retailer to engage in a business that is
taxable without registering separately with the Department
under an ordinance or resolution under this subsection.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
seller's tax liability by separately stating that tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that sellers are required to
collect under the Use Tax Act, pursuant to any bracketed
schedules set forth by the Department.
    (b) If a tax has been imposed under subsection (a), then a
service occupation tax must also be imposed at the same rate
upon all persons engaged, in the county, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the county as an incident to a sale of service.
    This tax may not be imposed on tangible personal property
taxed at the 1% rate under the Service Occupation Tax Act.
Beginning December 1, 2019 and through December 31, 2020, this
tax is not imposed on sales of aviation fuel unless the tax
revenue is expended for airport-related purposes. If the county
does not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel is excluded from
the tax. The county must comply with the certification
requirements for airport-related purposes under Section 2-22
of the Retailers' Occupation Tax Act 5-1184. For purposes of
this Section Act, "airport-related purposes" has the meaning
ascribed in Section 6z-20.2 of the State Finance Act. Beginning
January 1, 2021, this tax is not imposed on sales of aviation
fuel This exclusion 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 county.
    The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department and deposited into a
special fund created for that purpose. The Department has full
power to administer and enforce this subsection, to collect all
taxes and penalties due under this subsection, to dispose of
taxes and penalties so collected in the manner provided in this
subsection, and to determine all rights to credit memoranda
arising on account of the erroneous payment of a tax or penalty
under this subsection.
    In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall (i) have the same rights, remedies,
privileges, immunities, powers and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties and
definition of terms, and (iii) employ the same modes of
procedure as are set forth in Sections 2 (except that that
reference to State in the definition of supplier maintaining a
place of business in this State means the county), 2a through
2d, 3 through 3-50 (in respect to all provisions contained in
those Sections other than the State rate of tax), 4 (except
that the reference to the State shall be to the county), 5, 7,
8 (except that the jurisdiction to which the tax is a debt to
the extent indicated in that Section 8 is the county), 9
(except as to the disposition of taxes and penalties collected,
and except that the retailer's discount is not allowed for
taxes paid on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 that are
deposited into the Local Government Aviation Trust Fund), 10,
11, 12 (except the reference therein to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference
to the State means the county), Section 15, 16, 17, 18, 19, and
20 of the Service Occupation Tax Act and all provisions of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that servicemen are authorized to
collect under the Service Use Tax Act, pursuant to any
bracketed schedules set forth by the Department.
    (c) The tax under this Section may not be imposed until the
question of imposing the tax has been submitted to the electors
of the county at a regular election and approved by a majority
of the electors voting on the question. For all regular
elections held prior to August 23, 2011 (the effective date of
Public Act 97-542), upon a resolution by the county board or a
resolution by school district boards that represent at least
51% of the student enrollment within the county, the county
board must certify the question to the proper election
authority in accordance with the Election Code.
    For all regular elections held prior to August 23, 2011
(the effective date of Public Act 97-542), the election
authority must submit the question in substantially the
following form:
        Shall (name of county) be authorized to impose a
    retailers' occupation tax and a service occupation tax
    (commonly referred to as a "sales tax") at a rate of
    (insert rate) to be used exclusively for school facility
    purposes?
    The election authority must record the votes as "Yes" or
"No".
    If a majority of the electors voting on the question vote
in the affirmative, then the county may, thereafter, impose the
tax.
    For all regular elections held on or after August 23, 2011
(the effective date of Public Act 97-542), the regional
superintendent of schools for the county must, upon receipt of
a resolution or resolutions of school district boards that
represent more than 50% of the student enrollment within the
county, certify the question to the proper election authority
for submission to the electors of the county at the next
regular election at which the question lawfully may be
submitted to the electors, all in accordance with the Election
Code.
    For all regular elections held on or after August 23, 2011
(the effective date of Public Act 97-542) and before August 23,
2019 (the effective date of Public Act 101-455) this amendatory
Act of the 101st General Assembly, the election authority must
submit the question in substantially the following form:
        Shall a retailers' occupation tax and a service
    occupation tax (commonly referred to as a "sales tax") be
    imposed in (name of county) at a rate of (insert rate) to
    be used exclusively for school facility purposes?
    The election authority must record the votes as "Yes" or
"No".
    If a majority of the electors voting on the question vote
in the affirmative, then the tax shall be imposed at the rate
set forth in the question.
    For all regular elections held on or after August 23, 2019
(the effective date of Public Act 101-455) this amendatory Act
of the 101st General Assembly, the election authority must
submit the question as follows:
        (1) If the referendum is to expand the use of revenues
    from a currently imposed tax exclusively for school
    facility purposes to include school resource officers and
    mental health professionals, the question shall be in
    substantially the following form:
            In addition to school facility purposes, shall
        (name of county) school districts be authorized to use
        revenues from the tax commonly referred to as the
        school facility sales tax that is currently imposed in
        (name of county) at a rate of (insert rate) for school
        resource officers and mental health professionals?
        (2) If the referendum is to increase the rate of a tax
    currently imposed exclusively for school facility purposes
    at less than 1% and dedicate the additional revenues for
    school resource officers and mental health professionals,
    the question shall be in substantially the following form:
            Shall the tax commonly referred to as the school
        facility sales tax that is currently imposed in (name
        of county) at the rate of (insert rate) be increased to
        a rate of (insert rate) with the additional revenues
        used exclusively for school resource officers and
        mental health professionals?
        (3) If the referendum is to impose a tax in a county
    that has not previously imposed a tax under this Section
    exclusively for school facility purposes, the question
    shall be in substantially the following form:
            Shall a retailers' occupation tax and a service
        occupation tax (commonly referred to as a sales tax) be
        imposed in (name of county) at a rate of (insert rate)
        to be used exclusively for school facility purposes?
        (4) If the referendum is to impose a tax in a county
    that has not previously imposed a tax under this Section
    exclusively for school resource officers and mental health
    professionals, the question shall be in substantially the
    following form:
            Shall a retailers' occupation tax and a service
        occupation tax (commonly referred to as a sales tax) be
        imposed in (name of county) at a rate of (insert rate)
        to be used exclusively for school resource officers and
        mental health professionals?
        (5) If the referendum is to impose a tax in a county
    that has not previously imposed a tax under this Section
    exclusively for school facility purposes, school resource
    officers, and mental health professionals, the question
    shall be in substantially the following form:
            Shall a retailers' occupation tax and a service
        occupation tax (commonly referred to as a sales tax) be
        imposed in (name of county) at a rate of (insert rate)
        to be used exclusively for school facility purposes,
        school resource officers, and mental health
        professionals?
    The election authority must record the votes as "Yes" or
"No".
    If a majority of the electors voting on the question vote
in the affirmative, then the tax shall be imposed at the rate
set forth in the question.
    For the purposes of this subsection (c), "enrollment" means
the head count of the students residing in the county on the
last school day of September of each year, which must be
reported on the Illinois State Board of Education Public School
Fall Enrollment/Housing Report.
    (d) Except as otherwise provided, the Department shall
immediately pay over to the State Treasurer, ex officio, as
trustee, all taxes and penalties collected under this Section
to be deposited into the School Facility Occupation Tax Fund,
which shall be an unappropriated trust fund held outside the
State treasury. Taxes and penalties collected on aviation fuel
sold on or after December 1, 2019 and through December 31,
2020, shall be immediately paid over by the Department to the
State Treasurer, ex officio, as trustee, for deposit into the
Local Government Aviation Trust Fund. The Department shall only
pay moneys into the Local Government Aviation Trust Fund under
this Section 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
county.
    On or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the regional
superintendents of schools in counties from which retailers or
servicemen have paid taxes or penalties to the Department
during the second preceding calendar month. The amount to be
paid to each regional superintendent of schools and disbursed
to him or her in accordance with Section 3-14.31 of the School
Code, is equal to the amount (not including credit memoranda
and not including taxes and penalties collected on aviation
fuel sold on or after December 1, 2019 and through December 31,
2020) collected from the county under this Section during the
second preceding calendar month by the Department, (i) less 2%
of that amount (except the amount collected on aviation fuel
sold on or after December 1, 2019 and through December 31,
2020), which shall be deposited into the Tax Compliance and
Administration Fund and shall be used by the Department,
subject to appropriation, to cover the costs of the Department
in administering and enforcing the provisions of this Section,
on behalf of the county, (ii) plus an amount that the
Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body; (iii) less an
amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of the
county; and (iv) less any amount that the Department determines
is necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the county.
When certifying the amount of a monthly disbursement to a
regional superintendent of schools under this Section, the
Department shall increase or decrease the amounts by an amount
necessary to offset any miscalculation of previous
disbursements within the previous 6 months from the time a
miscalculation is discovered.
    Within 10 days after receipt by the Comptroller from the
Department of the disbursement certification to the regional
superintendents of the schools provided for in this Section,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
    If the Department determines that a refund should be made
under this Section to a claimant instead of issuing a credit
memorandum, then the Department shall notify the Comptroller,
who shall cause the order to be drawn for the amount specified
and to the person named in the notification from the
Department. The refund shall be paid by the Treasurer out of
the School Facility Occupation Tax Fund or the Local Government
Aviation Trust Fund, as appropriate.
    (e) For the purposes of determining the local governmental
unit whose tax is applicable, a retail sale by a producer of
coal or another mineral mined in Illinois is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This subsection does not apply to
coal or another mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
    (f) Nothing in this Section may be construed to authorize a
tax to be imposed upon the privilege of engaging in any
business that under the Constitution of the United States may
not be made the subject of taxation by this State.
    (g) If a county board imposes a tax under this Section
pursuant to a referendum held before August 23, 2011 (the
effective date of Public Act 97-542) at a rate below the rate
set forth in the question approved by a majority of electors of
that county voting on the question as provided in subsection
(c), then the county board may, by ordinance, increase the rate
of the tax up to the rate set forth in the question approved by
a majority of electors of that county voting on the question as
provided in subsection (c). If a county board imposes a tax
under this Section pursuant to a referendum held before August
23, 2011 (the effective date of Public Act 97-542), then the
board may, by ordinance, discontinue or reduce the rate of the
tax. If a tax is imposed under this Section pursuant to a
referendum held on or after August 23, 2011 (the effective date
of Public Act 97-542) and before August 23, 2019 (the effective
date of Public Act 101-455) this amendatory Act of the 101st
General Assembly, then the county board may reduce or
discontinue the tax, but only in accordance with subsection
(h-5) of this Section. If a tax is imposed under this Section
pursuant to a referendum held on or after August 23, 2019 (the
effective date of Public Act 101-455) this amendatory Act of
the 101st General Assembly, then the county board may reduce or
discontinue the tax, but only in accordance with subsection
(h-10). If, however, a school board issues bonds that are
secured by the proceeds of the tax under this Section, then the
county board may not reduce the tax rate or discontinue the tax
if that rate reduction or discontinuance would adversely affect
the school board's ability to pay the principal and interest on
those bonds as they become due or necessitate the extension of
additional property taxes to pay the principal and interest on
those bonds. If the county board reduces the tax rate or
discontinues the tax, then a referendum must be held in
accordance with subsection (c) of this Section in order to
increase the rate of the tax or to reimpose the discontinued
tax.
    Until January 1, 2014, the results of any election that
imposes, reduces, or discontinues a tax under this Section must
be certified by the election authority, and any ordinance that
increases or lowers the rate or discontinues the tax must be
certified by the county clerk and, in each case, filed with the
Illinois Department of Revenue either (i) on or before the
first day of April, whereupon the Department shall proceed to
administer and enforce the tax or change in the rate as of the
first day of July next following the filing; or (ii) on or
before the first day of October, whereupon the Department shall
proceed to administer and enforce the tax or change in the rate
as of the first day of January next following the filing.
    Beginning January 1, 2014, the results of any election that
imposes, reduces, or discontinues a tax under this Section must
be certified by the election authority, and any ordinance that
increases or lowers the rate or discontinues the tax must be
certified by the county clerk and, in each case, filed with the
Illinois Department of Revenue either (i) on or before the
first day of May, whereupon the Department shall proceed to
administer and enforce the tax or change in the rate as of the
first day of July next following the filing; or (ii) on or
before the first day of October, whereupon the Department shall
proceed to administer and enforce the tax or change in the rate
as of the first day of January next following the filing.
    (h) For purposes of this Section, "school facility
purposes" means (i) the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning, and installation of capital
facilities consisting of buildings, structures, and durable
equipment and for the acquisition and improvement of real
property and interest in real property required, or expected to
be required, in connection with the capital facilities and (ii)
the payment of bonds or other obligations heretofore or
hereafter issued, including bonds or other obligations
heretofore or hereafter issued to refund or to continue to
refund bonds or other obligations issued, for school facility
purposes, provided that the taxes levied to pay those bonds are
abated by the amount of the taxes imposed under this Section
that are used to pay those bonds. "School facility
School-facility purposes" also includes fire prevention,
safety, energy conservation, accessibility, school security,
and specified repair purposes set forth under Section 17-2.11
of the School Code.
    (h-5) A county board in a county where a tax has been
imposed under this Section pursuant to a referendum held on or
after August 23, 2011 (the effective date of Public Act 97-542)
and before August 23, 2019 (the effective date of Public Act
101-455) this amendatory Act of the 101st General Assembly may,
by ordinance or resolution, submit to the voters of the county
the question of reducing or discontinuing the tax. In the
ordinance or resolution, the county board shall certify the
question to the proper election authority in accordance with
the Election Code. The election authority must submit the
question in substantially the following form:
        Shall the school facility retailers' occupation tax
    and service occupation tax (commonly referred to as the
    "school facility sales tax") currently imposed in (name of
    county) at a rate of (insert rate) be (reduced to (insert
    rate))(discontinued)?
If a majority of the electors voting on the question vote in
the affirmative, then, subject to the provisions of subsection
(g) of this Section, the tax shall be reduced or discontinued
as set forth in the question.
    (h-10) A county board in a county where a tax has been
imposed under this Section pursuant to a referendum held on or
after August 23, 2019 (the effective date of Public Act
101-455) this amendatory Act of the 101st General Assembly may,
by ordinance or resolution, submit to the voters of the county
the question of reducing or discontinuing the tax. In the
ordinance or resolution, the county board shall certify the
question to the proper election authority in accordance with
the Election Code. The election authority must submit the
question in substantially the following form:
        Shall the school facility and resources retailers'
    occupation tax and service occupation tax (commonly
    referred to as the school facility and resources sales tax)
    currently imposed in (name of county) at a rate of (insert
    rate) be (reduced to (insert rate)) (discontinued)?
    The election authority must record the votes as "Yes" or
"No".
    If a majority of the electors voting on the question vote
in the affirmative, then, subject to the provisions of
subsection (g) of this Section, the tax shall be reduced or
discontinued as set forth in the question.
    (i) This Section does not apply to Cook County.
    (j) This Section may be cited as the County School Facility
and Resources Occupation Tax Law.
(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
101-455, eff. 8-23-19; revised 9-10-19.)
 
    (55 ILCS 5/5-1007)  (from Ch. 34, par. 5-1007)
    Sec. 5-1007. Home Rule County Service Occupation Tax Law.
The corporate authorities of a home rule county may impose a
tax upon all persons engaged, in such county, in the business
of making sales of service at the same rate of tax imposed
pursuant to Section 5-1006 of the selling price of all tangible
personal property transferred by such servicemen either in the
form of tangible personal property or in the form of real
estate as an incident to a sale of service. If imposed, such
tax shall only be imposed in 1/4% increments. On and after
September 1, 1991, this additional tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act. Beginning December 1, 2019, this
tax is not imposed on sales of aviation fuel unless the tax
revenue is expended for airport-related purposes. If the county
does not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel is excluded from
the tax. The county must comply with the certification
requirements for airport-related purposes under Section 2-22
of the Retailers' Occupation Tax Act 5-1184. For purposes of
this Section Act, "airport-related purposes" has the meaning
ascribed in Section 6z-20.2 of the State Finance Act. This
exclusion 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 county. The changes made to this
Section by this amendatory Act of the 101st General Assembly
are a denial and limitation of home rule powers and functions
under subsection (g) of Section 6 of Article VII of the
Illinois Constitution. The tax imposed by a home rule county
pursuant to this Section and all civil penalties that may be
assessed as an incident thereof shall be collected and enforced
by the State Department of Revenue. The certificate of
registration which is issued by the Department to a retailer
under the Retailers' Occupation Tax Act or under the Service
Occupation Tax Act shall permit such registrant to engage in a
business which is taxable under any ordinance or resolution
enacted pursuant to this Section without registering
separately with the Department under such ordinance or
resolution or under this Section. The Department shall have
full power to administer and enforce this Section; to collect
all taxes and penalties due hereunder; to dispose of taxes and
penalties so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with, this Section the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
provisions therein other than the State rate of tax), 4 (except
that the reference to the State shall be to the taxing county),
5, 7, 8 (except that the jurisdiction to which the tax shall be
a debt to the extent indicated in that Section 8 shall be the
taxing county), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this county tax may not be taken against any State
tax, and except that the retailer's discount is not allowed for
taxes paid on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133
deposited into the Local Government Aviation Trust Fund), 10,
11, 12 (except the reference therein to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference
to the State shall mean the taxing county), the first paragraph
of Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
Tax Act and Section 3-7 of the Uniform Penalty and Interest
Act, as fully as if those provisions were set forth herein.
    No tax may be imposed by a home rule county pursuant to
this Section unless such county also imposes a tax at the same
rate pursuant to Section 5-1006.
    Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax which
servicemen are authorized to collect under the Service Use Tax
Act, pursuant to such bracket schedules as the Department may
prescribe.
    Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing credit
memorandum, the Department shall notify the State Comptroller,
who shall cause the order to be drawn for the amount specified,
and to the person named, in such notification from the
Department. Such refund shall be paid by the State Treasurer
out of the home rule county retailers' occupation tax fund or
the Local Government Aviation Trust Fund, as appropriate.
    Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Home Rule County Retailers'
Occupation Tax Fund. Taxes and penalties collected on aviation
fuel sold on or after December 1, 2019, shall be immediately
paid over by the Department to the State Treasurer, ex officio,
as trustee, for deposit into the Local Government Aviation
Trust Fund. The Department shall only pay moneys into the Local
Government Aviation Trust Fund under this Section 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 county.
    As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named counties, the
counties to be those from which suppliers and servicemen have
paid taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
county shall be the amount (not including credit memoranda and
not including taxes and penalties collected on aviation fuel
sold on or after December 1, 2019) collected hereunder during
the second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on behalf
of such county, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the counties, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
Section. Within 10 days after receipt, by the Comptroller, of
the disbursement certification to the counties and the Tax
Compliance and Administration Fund provided for in this Section
to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in such certification.
    In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in each year to each
county which received more than $500,000 in disbursements under
the preceding paragraph in the preceding calendar year. The
allocation shall be in an amount equal to the average monthly
distribution made to each such county under the preceding
paragraph during the preceding calendar year (excluding the 2
months of highest receipts). The distribution made in March of
each year subsequent to the year in which an allocation was
made pursuant to this paragraph and the preceding paragraph
shall be reduced by the amount allocated and disbursed under
this paragraph in the preceding calendar year. The Department
shall prepare and certify to the Comptroller for disbursement
the allocations made in accordance with this paragraph.
    Nothing in this Section shall be construed to authorize a
county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
    An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following such adoption and filing.
Beginning April 1, 1998, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall either (i) be adopted and a certified copy
thereof filed with the Department on or before the first day of
April, whereupon the Department shall proceed to administer and
enforce this Section as of the first day of July next following
the adoption and filing; or (ii) be adopted and a certified
copy thereof filed with the Department on or before the first
day of October, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
January next following the adoption and filing.
    This Section shall be known and may be cited as the Home
Rule County Service Occupation Tax Law.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
7-12-19.)
 
    (55 ILCS 5/5-1008.5)
    Sec. 5-1008.5. Use and occupation taxes.
    (a) The Rock Island County Board may adopt a resolution
that authorizes a referendum on the question of whether the
county shall be authorized to impose a retailers' occupation
tax, a service occupation tax, and a use tax at a rate of 1/4 of
1% on behalf of the economic development activities of Rock
Island County and communities located within the county. The
county board shall certify the question to the proper election
authorities who shall submit the question to the voters of the
county at the next regularly scheduled election in accordance
with the general election law. The question shall be in
substantially the following form:
        Shall Rock Island County be authorized to impose a
    retailers' occupation tax, a service occupation tax, and a
    use tax at the rate of 1/4 of 1% for the sole purpose of
    economic development activities, including creation and
    retention of job opportunities, support of affordable
    housing opportunities, and enhancement of quality of life
    improvements?
    Votes shall be recorded as "yes" or "no". If a majority of
all votes cast on the proposition are in favor of the
proposition, the county is authorized to impose the tax.
    (b) The county shall impose the retailers' occupation tax
upon all persons engaged in the business of selling tangible
personal property at retail in the county, at the rate approved
by referendum, on the gross receipts from the sales made in the
course of those businesses within the county. This additional
tax may not be imposed on tangible personal property taxed at
the 1% rate under the Retailers' Occupation Tax Act. Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the county does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. The county must comply
with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act 5-1184. For purposes of this Section Act, "airport-related
purposes" has the meaning ascribed in Section 6z-20.2 of the
State Finance Act. This exclusion 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 county.
The tax imposed under this Section and all civil penalties that
may be assessed as an incident of the tax shall be collected
and enforced by the Department of Revenue. The Department has
full power to administer and enforce this Section; to collect
all taxes and penalties so collected in the manner provided in
this Section; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this Section. In the administration of, and compliance
with, this Section, the Department and persons who are subject
to this Section shall (i) have the same rights, remedies,
privileges, immunities, powers and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties,
exclusions, exemptions, and definitions of terms, and (iii)
employ the same modes of procedure as are prescribed in
Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2,
2-5, 2-5.5, 2-10 (in respect to all provisions other than the
State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except as
to the disposition of taxes and penalties collected and
provisions related to quarter monthly payments, and except that
the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 deposited into the
Local Government Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d,
5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a,
12, and 13 of the Retailers' Occupation Tax Act and Section 3-7
of the Uniform Penalty and Interest Act, as fully as if those
provisions were set forth in this subsection.
    Persons subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability by
separately stating the tax as an additional charge, which
charge may be stated in combination, in a single amount, with
State taxes that sellers are required to collect, in accordance
with bracket schedules prescribed by the Department.
    Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g) of
this Section or the Local Government Aviation Trust Fund, as
appropriate.
    If a tax is imposed under this subsection (b), a tax shall
also be imposed at the same rate under subsections (c) and (d)
of this Section.
    For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a producer
of coal or another mineral mined in Illinois, is a sale at
retail at the place where the coal or other mineral mined in
Illinois is extracted from the earth. This paragraph does not
apply to coal or another mineral when it is delivered or
shipped by the seller to the purchaser at a point outside
Illinois so that the sale is exempt under the federal
Constitution as a sale in interstate or foreign commerce.
    Nothing in this Section shall be construed to authorize the
county to impose a tax upon the privilege of engaging in any
business that under the Constitution of the United States may
not be made the subject of taxation by this State.
    (c) If a tax has been imposed under subsection (b), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the county, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the county as an incident to a sale of service. This additional
tax may not be imposed on tangible personal property taxed at
the 1% rate under the Service Occupation Tax Act. Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the county does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. The county must comply
with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act 5-1184. For purposes of this Section Act, "airport-related
purposes" has the meaning ascribed in Section 6z-20.2 of the
State Finance Act. This exclusion 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 county.
The tax imposed under this subsection and all civil penalties
that may be assessed as an incident of the tax shall be
collected and enforced by the Department of Revenue. The
Department has full power to administer and enforce this
paragraph; to collect all taxes and penalties due under this
Section; to dispose of taxes and penalties so collected in the
manner provided in this Section; and to determine all rights to
credit memoranda arising on account of the erroneous payment of
tax or penalty under this Section. In the administration of,
and compliance with this paragraph, the Department and persons
who are subject to this paragraph shall (i) have the same
rights, remedies, privileges, immunities, powers, and duties,
(ii) be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 2 (except that the
reference to State in the definition of supplier maintaining a
place of business in this State shall mean the county), 2a, 2b,
3 through 3-55 (in respect to all provisions other than the
State rate of tax), 4 (except that the reference to the State
shall be to the county), 5, 7, 8 (except that the jurisdiction
to which the tax shall be a debt to the extent indicated in
that Section 8 shall be the county), 9 (except as to the
disposition of taxes and penalties collected, and except that
the returned merchandise credit for this tax may not be taken
against any State tax, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 deposited into the Local Government Aviation Trust
Fund), 11, 12 (except the reference to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference
to the State shall mean the county), 15, 16, 17, 18, 19 and 20
of the Service Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth in this subsection.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, in
accordance with bracket schedules prescribed by the
Department.
    Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g) of
this Section or the Local Government Aviation Trust Fund, as
appropriate.
    Nothing in this paragraph shall be construed to authorize
the county to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by the State.
    (d) If a tax has been imposed under subsection (b), a use
tax shall also be imposed at the same rate upon the privilege
of using, in the county, any item of tangible personal property
that is purchased outside the county at retail from a retailer,
and that is titled or registered at a location within the
county with an agency of this State's government. "Selling
price" is defined as in the Use Tax Act. The tax shall be
collected from persons whose Illinois address for titling or
registration purposes is given as being in the county. The tax
shall be collected by the Department of Revenue for the county.
The tax must be paid to the State, or an exemption
determination must be obtained from the Department of Revenue,
before the title or certificate of registration for the
property may be issued. The tax or proof of exemption may be
transmitted to the Department by way of the State agency with
which, or the State officer with whom, the tangible personal
property must be titled or registered if the Department and the
State agency or State officer determine that this procedure
will expedite the processing of applications for title or
registration.
    The Department has full power to administer and enforce
this paragraph; to collect all taxes, penalties, and interest
due under this Section; to dispose of taxes, penalties, and
interest so collected in the manner provided in this Section;
and to determine all rights to credit memoranda or refunds
arising on account of the erroneous payment of tax, penalty, or
interest under this Section. In the administration of, and
compliance with, this subsection, the Department and persons
who are subject to this paragraph shall (i) have the same
rights, remedies, privileges, immunities, powers, and duties,
(ii) be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 2 (except the
definition of "retailer maintaining a place of business in this
State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6,
7, 8 (except that the jurisdiction to which the tax shall be a
debt to the extent indicated in that Section 8 shall be the
county), 9 (except provisions relating to quarter monthly
payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22
of the Use Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act, that are not inconsistent with this paragraph, as
fully as if those provisions were set forth in this subsection.
    Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g) of
this Section.
    (e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (c), or (d)
of this Section and no additional registration shall be
required. A certificate issued under the Use Tax Act or the
Service Use Tax Act shall be applicable with regard to any tax
imposed under paragraph (c) of this Section.
    (f) The results of any election authorizing a proposition
to impose a tax under this Section or effecting a change in the
rate of tax shall be certified by the proper election
authorities and filed with the Illinois Department on or before
the first day of October. In addition, an ordinance imposing,
discontinuing, or effecting a change in the rate of tax under
this Section shall be adopted and a certified copy of the
ordinance filed with the Department on or before the first day
of October. After proper receipt of the certifications, the
Department shall proceed to administer and enforce this Section
as of the first day of January next following the adoption and
filing.
    (g) Except as otherwise provided in paragraph (g-2), the
Department of Revenue shall, upon collecting any taxes and
penalties as provided in this Section, pay the taxes and
penalties over to the State Treasurer as trustee for the
county. The taxes and penalties shall be held in a trust fund
outside the State Treasury. On or before the 25th day of each
calendar month, the Department of Revenue shall prepare and
certify to the Comptroller of the State of Illinois the amount
to be paid to the county, which shall be the balance in the
fund, less any amount determined by the Department to be
necessary for the payment of refunds. Within 10 days after
receipt by the Comptroller of the certification of the amount
to be paid to the county, the Comptroller shall cause an order
to be drawn for payment for the amount in accordance with the
directions contained in the certification. Amounts received
from the tax imposed under this Section shall be used only for
the economic development activities of the county and
communities located within the county.
    (g-2) Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019, shall be immediately paid over by
the Department to the State Treasurer, ex officio, as trustee,
for deposit into the Local Government Aviation Trust Fund. The
Department shall only pay moneys into the Local Government
Aviation Trust Fund under this Section 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 county.
    (h) When certifying the amount of a monthly disbursement to
the county under this Section, the Department shall increase or
decrease the amounts by an amount necessary to offset any
miscalculation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a miscalculation is discovered.
    (i) This Section may be cited as the Rock Island County Use
and Occupation Tax Law.
(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19.)
 
    (55 ILCS 5/5-1035.1)  (from Ch. 34, par. 5-1035.1)
    Sec. 5-1035.1. County Motor Fuel Tax Law.
    (a) The county board of the counties of DuPage, Kane, Lake,
Will, and McHenry may, by an ordinance or resolution adopted by
an affirmative vote of a majority of the members elected or
appointed to the county board, impose a tax upon all persons
engaged in the county in the business of selling motor fuel, as
now or hereafter defined in the Motor Fuel Tax Law, at retail
for the operation of motor vehicles upon public highways or for
the operation of recreational watercraft upon waterways. The
collection of a tax under this Section based on gallonage of
gasoline used for the propulsion of any aircraft is prohibited,
and the collection of a tax based on gallonage of special fuel
used for the propulsion of any aircraft is prohibited on and
after December 1, 2019. Kane County may exempt diesel fuel from
the tax imposed pursuant to this Section. The initial tax rate
may not be less than 4 cents per gallon of motor fuel sold at
retail within the county for the purpose of use or consumption
and not for the purpose of resale and may not exceed 8 cents
per gallon of motor fuel sold at retail within the county for
the purpose of use or consumption and not for the purpose of
resale. The proceeds from the tax shall be used by the county
solely for the purposes purpose of operating, constructing, and
improving public highways and waterways, and acquiring real
property and rights-of-way right-of-ways for public highways
and waterways within the county imposing the tax.
    (a-5) By June 1, 2020, and by June 1 of each year
thereafter, the Department of Revenue shall determine an annual
rate increase to take effect on July 1 of that calendar year
and continue through June 30 of the next calendar year. Not
later than June 1 of each year, the Department of Revenue shall
publish on its website the rate that will take effect on July 1
of that calendar year. The rate shall be equal to the product
of the rate in effect increased by an amount equal to the
percentage increase, if any, in the Consumer Price Index for
All Urban Consumers for all items, published by the United
States Department of Labor for the 12 months ending in March of
each year multiplied by the transportation fee index factor
determined under Section 2e of the Motor Fuel Tax Law. The rate
shall be rounded to the nearest one-tenth of a one cent. Each
new rate may not exceed the rate in effect on June 30 of the
previous year plus one cent.
    (b) A tax imposed pursuant to this Section, and all civil
penalties that may be assessed as an incident thereof, shall be
administered, collected, and enforced by the Illinois
Department of Revenue in the same manner as the tax imposed
under the Retailers' Occupation Tax Act, as now or hereafter
amended, insofar as may be practicable; except that in the
event of a conflict with the provisions of this Section, this
Section shall control. The Department of Revenue shall have
full power: to administer and enforce this Section; to collect
all taxes and penalties due hereunder; to dispose of taxes and
penalties so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty hereunder.
    (b-5) Persons subject to any tax imposed under the
authority granted in this Section may reimburse themselves for
their seller's tax liability hereunder by separately stating
that tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
    (c) Whenever the Department determines that a refund shall
be made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Option Motor Fuel Tax Fund.
    (d) The Department shall forthwith pay over to the State
Treasurer, ex officio ex-officio, as trustee, all taxes and
penalties collected hereunder, which shall be deposited into
the County Option Motor Fuel Tax Fund, a special fund in the
State Treasury which is hereby created. On or before the 25th
day of each calendar month, the Department shall prepare and
certify to the State Comptroller the disbursement of stated
sums of money to named counties for which taxpayers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
county shall be the amount (not including credit memoranda)
collected hereunder from retailers within the county during the
second preceding calendar month by the Department, but not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on behalf
of the county; less 2% of the balance, which sum shall be
retained by the State Treasurer to cover the costs incurred by
the Department in administering and enforcing the provisions of
this Section. The Department, at the time of each monthly
disbursement to the counties, shall prepare and certify to the
Comptroller the amount so retained by the State Treasurer,
which shall be transferred into the Tax Compliance and
Administration Fund.
    (e) (f) Nothing in this Section shall be construed to
authorize a county to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this
State.
    (f) Until January 1, 2020, an (g) An ordinance or
resolution imposing a tax hereunder or effecting a change in
the rate thereof shall be effective on the first day of the
second calendar month next following the month in which the
ordinance or resolution is adopted and a certified copy thereof
is filed with the Department of Revenue, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the county as of the effective date
of the ordinance or resolution.
    On and after January 1, 2020, an ordinance or resolution
imposing or discontinuing the tax hereunder or effecting a
change in the rate thereof shall either: (i) be adopted and a
certified copy thereof filed with the Department on or before
the first day of April, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
July next following the adoption and filing; or (ii) be adopted
and a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following the adoption and filing.
    Upon a change in rate of a tax levied hereunder, or upon
the discontinuance of the tax, the county board of the county
shall, on or not later than 5 days after the effective date of
the ordinance or resolution discontinuing the tax or effecting
a change in rate, transmit to the Department of Revenue a
certified copy of the ordinance or resolution effecting the
change or discontinuance.
    (g) (h) This Section shall be known and may be cited as the
County Motor Fuel Tax Law.
(Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;
101-275, eff. 8-9-19; revised 9-10-19.)
 
    (55 ILCS 5/5-1184 rep.)
    Section 10-65. The Counties Code is amended by repealing
Section 5-1184.
 
    Section 10-70. The Illinois Municipal Code is amended by
changing Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
8-11-1.7, 8-11-2.3, 8-11-5, 11-74.3-6, and 11-101-3 as
follows:
 
    (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)
    Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
Act. The corporate authorities of a home rule municipality may
impose a tax upon all persons engaged in the business of
selling tangible personal property, other than an item of
tangible personal property titled or registered with an agency
of this State's government, at retail in the municipality on
the gross receipts from these sales made in the course of such
business. If imposed, the tax shall only be imposed in 1/4%
increments. On and after September 1, 1991, this additional tax
may not be imposed on tangible personal property taxed at the
1% rate under the Retailers' Occupation Tax Act. Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If a municipality does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. Each municipality must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act 8-11-22. For purposes of this Section Act, "airport-related
purposes" has the meaning ascribed in Section 6z-20.2 of the
State Finance Act. This exclusion 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
municipality. The changes made to this Section by this
amendatory Act of the 101st General Assembly are a denial and
limitation of home rule powers and functions under subsection
(g) of Section 6 of Article VII of the Illinois Constitution.
The tax imposed by a home rule municipality under this Section
and all civil penalties that may be assessed as an incident of
the tax shall be collected and enforced by the State Department
of Revenue. The certificate of registration that is issued by
the Department to a retailer under the Retailers' Occupation
Tax Act shall permit the retailer to engage in a business that
is taxable under any ordinance or resolution enacted pursuant
to this Section without registering separately with the
Department under such ordinance or resolution or under this
Section. The Department shall have full power to administer and
enforce this Section; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights to
credit memoranda arising on account of the erroneous payment of
tax or penalty hereunder. In the administration of, and
compliance with, this Section the Department and persons who
are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,
1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
provisions therein other than the State rate of tax), 2c, 3
(except as to the disposition of taxes and penalties collected,
and except that the retailer's discount is not allowed for
taxes paid on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133
deposited into the Local Government Aviation Trust Fund), 4, 5,
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
6d, 7, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax
Act and Section 3-7 of the Uniform Penalty and Interest Act, as
fully as if those provisions were set forth herein.
    No tax may be imposed by a home rule municipality under
this Section unless the municipality also imposes a tax at the
same rate under Section 8-11-5 of this Act.
    Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that tax
as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the home rule municipal retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
    Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Home Rule Municipal Retailers'
Occupation Tax Fund. Taxes and penalties collected on aviation
fuel sold on or after December 1, 2019, shall be immediately
paid over by the Department to the State Treasurer, ex officio,
as trustee, for deposit into the Local Government Aviation
Trust Fund. The Department shall only pay moneys into the Local
Government Aviation Trust Fund under this Section 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.
    As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019) collected
hereunder during the second preceding calendar month by the
Department plus an amount the Department determines is
necessary to offset any amounts that were erroneously paid to a
different taxing body, and not including an amount equal to the
amount of refunds made during the second preceding calendar
month by the Department on behalf of such municipality, and not
including any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
    In addition to the disbursement required by the preceding
paragraph and in order to mitigate delays caused by
distribution procedures, an allocation shall, if requested, be
made within 10 days after January 14, 1991, and in November of
1991 and each year thereafter, to each municipality that
received more than $500,000 during the preceding fiscal year,
(July 1 through June 30) whether collected by the municipality
or disbursed by the Department as required by this Section.
Within 10 days after January 14, 1991, participating
municipalities shall notify the Department in writing of their
intent to participate. In addition, for the initial
distribution, participating municipalities shall certify to
the Department the amounts collected by the municipality for
each month under its home rule occupation and service
occupation tax during the period July 1, 1989 through June 30,
1990. The allocation within 10 days after January 14, 1991,
shall be in an amount equal to the monthly average of these
amounts, excluding the 2 months of highest receipts. The
monthly average for the period of July 1, 1990 through June 30,
1991 will be determined as follows: the amounts collected by
the municipality under its home rule occupation and service
occupation tax during the period of July 1, 1990 through
September 30, 1990, plus amounts collected by the Department
and paid to such municipality through June 30, 1991, excluding
the 2 months of highest receipts. The monthly average for each
subsequent period of July 1 through June 30 shall be an amount
equal to the monthly distribution made to each such
municipality under the preceding paragraph during this period,
excluding the 2 months of highest receipts. The distribution
made in November 1991 and each year thereafter under this
paragraph and the preceding paragraph shall be reduced by the
amount allocated and disbursed under this paragraph in the
preceding period of July 1 through June 30. The Department
shall prepare and certify to the Comptroller for disbursement
the allocations made in accordance with this paragraph.
    For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to coal
or other mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale
is exempt under the United States Constitution as a sale in
interstate or foreign commerce.
    Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by this State.
    An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following the adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following the adoption and filing.
However, a municipality located in a county with a population
in excess of 3,000,000 that elected to become a home rule unit
at the general primary election in 1994 may adopt an ordinance
or resolution imposing the tax under this Section and file a
certified copy of the ordinance or resolution with the
Department on or before July 1, 1994. The Department shall then
proceed to administer and enforce this Section as of October 1,
1994. Beginning April 1, 1998, an ordinance or resolution
imposing or discontinuing the tax hereunder or effecting a
change in the rate thereof shall either (i) be adopted and a
certified copy thereof filed with the Department on or before
the first day of April, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
July next following the adoption and filing; or (ii) be adopted
and a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following the adoption and filing.
    When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
    Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which fund
was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods prior
to January 1, 1990, shall be paid into the Local Government Tax
Fund for distribution as provided by this Section prior to the
enactment of Public Act 85-1135. All receipts of municipal tax
as a result of an assessment not arising from an audit, for
liability periods prior to January 1, 1990, shall be paid into
the Local Government Tax Fund for distribution before July 1,
1990, as provided by this Section prior to the enactment of
Public Act 85-1135; and on and after July 1, 1990, all such
receipts shall be distributed as provided in Section 6z-18 of
the State Finance Act.
    As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town that has superseded a civil township.
    This Section shall be known and may be cited as the Home
Rule Municipal Retailers' Occupation Tax Act.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
7-12-19.)
 
    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
Occupation Tax Act. The corporate authorities of a non-home
rule municipality may impose a tax upon all persons engaged in
the business of selling tangible personal property, other than
on an item of tangible personal property which is titled and
registered by an agency of this State's Government, at retail
in the municipality for expenditure on public infrastructure or
for property tax relief or both as defined in Section 8-11-1.2
if approved by referendum as provided in Section 8-11-1.1, of
the gross receipts from such sales made in the course of such
business. If the tax is approved by referendum on or after July
14, 2010 (the effective date of Public Act 96-1057), the
corporate authorities of a non-home rule municipality may,
until July 1, 2030, use the proceeds of the tax for expenditure
on municipal operations, in addition to or in lieu of any
expenditure on public infrastructure or for property tax
relief. The tax imposed may not be more than 1% and may be
imposed only in 1/4% increments. The tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act. Beginning December 1, 2019, this
tax is not imposed on sales of aviation fuel unless the tax
revenue is expended for airport-related purposes. If a
municipality does not have an airport-related purpose to which
it dedicates aviation fuel tax revenue, then aviation fuel is
excluded from the tax. Each municipality must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act 8-11-22. For
purposes of this Section Act, "airport-related purposes" has
the meaning ascribed in Section 6z-20.2 of the State Finance
Act. This exclusion 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 municipality. The tax imposed
by a municipality pursuant to this Section and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
certificate of registration which is issued by the Department
to a retailer under the Retailers' Occupation Tax Act shall
permit such retailer to engage in a business which is taxable
under any ordinance or resolution enacted pursuant to this
Section without registering separately with the Department
under such ordinance or resolution or under this Section. The
Department shall have full power to administer and enforce this
Section; to collect all taxes and penalties due hereunder; to
dispose of taxes and penalties so collected in the manner
hereinafter provided, and to determine all rights to credit
memoranda, arising on account of the erroneous payment of tax
or penalty hereunder. In the administration of, and compliance
with, this Section, the Department and persons who are subject
to this Section shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to
the same conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
2 through 2-65 (in respect to all provisions therein other than
the State rate of tax), 2c, 3 (except as to the disposition of
taxes and penalties collected, and except that the retailer's
discount is not allowed for taxes paid on aviation fuel that
are subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133 deposited into the Local
Government Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
the Uniform Penalty and Interest Act as fully as if those
provisions were set forth herein.
    No municipality may impose a tax under this Section unless
the municipality also imposes a tax at the same rate under
Section 8-11-1.4 of this Code.
    Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their seller's tax liability hereunder by separately stating
such tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such notification
from the Department. Such refund shall be paid by the State
Treasurer out of the non-home rule municipal retailers'
occupation tax fund or the Local Government Aviation Trust
Fund, as appropriate.
    Except as otherwise provided, the Department shall
forthwith pay over to the State Treasurer, ex officio, as
trustee, all taxes and penalties collected hereunder for
deposit into the Non-Home Rule Municipal Retailers' Occupation
Tax Fund. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019, shall be immediately paid over by
the Department to the State Treasurer, ex officio, as trustee,
for deposit into the Local Government Aviation Trust Fund. The
Department shall only pay moneys into the Local Government
Aviation Trust Fund under this Section 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 municipality.
    As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019) collected
hereunder during the second preceding calendar month by the
Department plus an amount the Department determines is
necessary to offset any amounts which were erroneously paid to
a different taxing body, and not including an amount equal to
the amount of refunds made during the second preceding calendar
month by the Department on behalf of such municipality, and not
including any amount which the Department determines is
necessary to offset any amounts which were payable to a
different taxing body but were erroneously paid to the
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
    For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale, by a producer of coal
or other mineral mined in Illinois, is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to coal
or other mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale
is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
    Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
    When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease such amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
    The Department of Revenue shall implement Public Act 91-649
so as to collect the tax on and after January 1, 2002.
    As used in this Section, "municipal" and "municipality"
mean means a city, village, or incorporated town, including an
incorporated town which has superseded a civil township.
    This Section shall be known and may be cited as the
"Non-Home Rule Municipal Retailers' Occupation Tax Act".
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-47, eff.
1-1-20; 101-81, eff. 7-12-19; revised 8-19-19.)
 
    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
Tax Act. The corporate authorities of a non-home rule
municipality may impose a tax upon all persons engaged, in such
municipality, in the business of making sales of service for
expenditure on public infrastructure or for property tax relief
or both as defined in Section 8-11-1.2 if approved by
referendum as provided in Section 8-11-1.1, of the selling
price of all tangible personal property transferred by such
servicemen either in the form of tangible personal property or
in the form of real estate as an incident to a sale of service.
If the tax is approved by referendum on or after July 14, 2010
(the effective date of Public Act 96-1057), the corporate
authorities of a non-home rule municipality may, until December
31, 2020, use the proceeds of the tax for expenditure on
municipal operations, in addition to or in lieu of any
expenditure on public infrastructure or for property tax
relief. The tax imposed may not be more than 1% and may be
imposed only in 1/4% increments. The tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act. Beginning December 1, 2019, this
tax is not imposed on sales of aviation fuel unless the tax
revenue is expended for airport-related purposes. If a
municipality does not have an airport-related purpose to which
it dedicates aviation fuel tax revenue, then aviation fuel is
excluded from the tax. Each municipality must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act 8-11-22. For
purposes of this Section Act, "airport-related purposes" has
the meaning ascribed in Section 6z-20.2 of the State Finance
Act. This exclusion 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 municipality. The tax imposed
by a municipality pursuant to this Section and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
certificate of registration which is issued by the Department
to a retailer under the Retailers' Occupation Tax Act or under
the Service Occupation Tax Act shall permit such registrant to
engage in a business which is taxable under any ordinance or
resolution enacted pursuant to this Section without
registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;
to collect all taxes and penalties due hereunder; to dispose of
taxes and penalties so collected in the manner hereinafter
provided, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the
taxing municipality), 5, 7, 8 (except that the jurisdiction to
which the tax shall be a debt to the extent indicated in that
Section 8 shall be the taxing municipality), 9 (except as to
the disposition of taxes and penalties collected, and except
that the returned merchandise credit for this municipal tax may
not be taken against any State tax, and except that the
retailer's discount is not allowed for taxes paid on aviation
fuel that are subject to the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 deposited into the Local
Government Aviation Trust Fund), 10, 11, 12 (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the taxing municipality), the first paragraph of Section 15,
16, 17, 18, 19 and 20 of the Service Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
    No municipality may impose a tax under this Section unless
the municipality also imposes a tax at the same rate under
Section 8-11-1.3 of this Code.
    Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax which
servicemen are authorized to collect under the Service Use Tax
Act, pursuant to such bracket schedules as the Department may
prescribe.
    Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing credit
memorandum, the Department shall notify the State Comptroller,
who shall cause the order to be drawn for the amount specified,
and to the person named, in such notification from the
Department. Such refund shall be paid by the State Treasurer
out of the municipal retailers' occupation tax fund or the
Local Government Aviation Trust Fund, as appropriate.
    Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the municipal retailers' occupation
tax fund. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019, shall be immediately paid over by
the Department to the State Treasurer, ex officio, as trustee,
for deposit into the Local Government Aviation Trust Fund. The
Department shall only pay moneys into the Local Government
Aviation Trust Fund under this Section 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 municipality.
    As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which suppliers and
servicemen have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda and not including taxes and
penalties collected on aviation fuel sold on or after December
1, 2019) collected hereunder during the second preceding
calendar month by the Department, and not including an amount
equal to the amount of refunds made during the second preceding
calendar month by the Department on behalf of such
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities, the General Revenue Fund, and the Tax
Compliance and Administration Fund provided for in this Section
to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in such certification.
    The Department of Revenue shall implement Public Act 91-649
so as to collect the tax on and after January 1, 2002.
    Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
    As used in this Section, "municipal" or "municipality"
means or refers to a city, village or incorporated town,
including an incorporated town which has superseded a civil
township.
    This Section shall be known and may be cited as the
"Non-Home Rule Municipal Service Occupation Tax Act".
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
7-12-19.)
 
    (65 ILCS 5/8-11-1.6)
    Sec. 8-11-1.6. Non-home rule municipal retailers'
occupation tax; municipalities between 20,000 and 25,000. The
corporate authorities of a non-home rule municipality with a
population of more than 20,000 but less than 25,000 that has,
prior to January 1, 1987, established a Redevelopment Project
Area that has been certified as a State Sales Tax Boundary and
has issued bonds or otherwise incurred indebtedness to pay for
costs in excess of $5,000,000, which is secured in part by a
tax increment allocation fund, in accordance with the
provisions of Division 11-74.4 of this Code may, by passage of
an ordinance, impose a tax upon all persons engaged in the
business of selling tangible personal property, other than on
an item of tangible personal property that is titled and
registered by an agency of this State's Government, at retail
in the municipality. This tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act. Beginning December 1, 2019, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If a municipality does
not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel is excluded from
the tax. Each municipality must comply with the certification
requirements for airport-related purposes under Section 2-22
of the Retailers' Occupation Tax Act 8-11-22. For purposes of
this Section Act, "airport-related purposes" has the meaning
ascribed in Section 6z-20.2 of the State Finance Act. This
exclusion 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 municipality. If imposed, the tax
shall only be imposed in .25% increments of the gross receipts
from such sales made in the course of business. Any tax imposed
by a municipality under this Section and all civil penalties
that may be assessed as an incident thereof shall be collected
and enforced by the State Department of Revenue. An ordinance
imposing a tax hereunder or effecting a change in the rate
thereof shall be adopted and a certified copy thereof filed
with the Department on or before the first day of October,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of January next
following such adoption and filing. The certificate of
registration that is issued by the Department to a retailer
under the Retailers' Occupation Tax Act shall permit the
retailer to engage in a business that is taxable under any
ordinance or resolution enacted under this Section without
registering separately with the Department under the ordinance
or resolution or under this Section. The Department shall have
full power to administer and enforce this Section, to collect
all taxes and penalties due hereunder, to dispose of taxes and
penalties so collected in the manner hereinafter provided, and
to determine all rights to credit memoranda, arising on account
of the erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with this Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties, and definitions of
terms, and employ the same modes of procedure, as are
prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
through 2-65 (in respect to all provisions therein other than
the State rate of tax), 2c, 3 (except as to the disposition of
taxes and penalties collected, and except that the retailer's
discount is not allowed for taxes paid on aviation fuel that
are subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133 deposited into the Local
Government Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
the Uniform Penalty and Interest Act as fully as if those
provisions were set forth herein.
    A tax may not be imposed by a municipality under this
Section unless the municipality also imposes a tax at the same
rate under Section 8-11-1.7 of this Act.
    Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax
as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be
made under this Section to a claimant, instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Non-Home Rule Municipal Retailers'
Occupation Tax Fund, which is hereby created or the Local
Government Aviation Trust Fund, as appropriate.
    Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Non-Home Rule Municipal
Retailers' Occupation Tax Fund. Taxes and penalties collected
on aviation fuel sold on or after December 1, 2019, shall be
immediately paid over by the Department to the State Treasurer,
ex officio, as trustee, for deposit into the Local Government
Aviation Trust Fund. The Department shall only pay moneys into
the Local Government Aviation Trust Fund under this Section 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 municipality.
    As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019) collected
hereunder during the second preceding calendar month by the
Department plus an amount the Department determines is
necessary to offset any amounts that were erroneously paid to a
different taxing body, and not including an amount equal to the
amount of refunds made during the second preceding calendar
month by the Department on behalf of the municipality, and not
including any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
    For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to coal
or other mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale
is exempt under the federal Constitution as a sale in
interstate or foreign commerce.
    Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
    When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
    As used in this Section, "municipal" and "municipality"
means a city, village, or incorporated town, including an
incorporated town that has superseded a civil township.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, eff.
6-5-19; 101-81, eff. 7-12-19.)
 
    (65 ILCS 5/8-11-1.7)
    Sec. 8-11-1.7. Non-home rule municipal service occupation
tax; municipalities between 20,000 and 25,000. The corporate
authorities of a non-home rule municipality with a population
of more than 20,000 but less than 25,000 as determined by the
last preceding decennial census that has, prior to January 1,
1987, established a Redevelopment Project Area that has been
certified as a State Sales Tax Boundary and has issued bonds or
otherwise incurred indebtedness to pay for costs in excess of
$5,000,000, which is secured in part by a tax increment
allocation fund, in accordance with the provisions of Division
11-74.4 of this Code may, by passage of an ordinance, impose a
tax upon all persons engaged in the municipality in the
business of making sales of service. If imposed, the tax shall
only be imposed in .25% increments of the selling price of all
tangible personal property transferred by such servicemen
either in the form of tangible personal property or in the form
of real estate as an incident to a sale of service. This tax
may not be imposed on tangible personal property taxed at the
1% rate under the Service Occupation Tax Act. Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If a municipality does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. Each municipality must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act 8-11-22. For purposes of this Section Act, "airport-related
purposes" has the meaning ascribed in Section 6z-20.2 of the
State Finance Act. This exclusion 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
municipality. The tax imposed by a municipality under this
Section and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. An ordinance imposing a tax hereunder or
effecting a change in the rate thereof shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following such adoption and filing. The
certificate of registration that is issued by the Department to
a retailer under the Retailers' Occupation Tax Act or under the
Service Occupation Tax Act shall permit the registrant to
engage in a business that is taxable under any ordinance or
resolution enacted under this Section without registering
separately with the Department under the ordinance or
resolution or under this Section. The Department shall have
full power to administer and enforce this Section, to collect
all taxes and penalties due hereunder, to dispose of tax