Public Act 102-0700
 
SB0157 EnrolledLRB102 10128 HLH 16591 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
ARTICLE 5. EDGE CREDIT

 
    Section 5-5. The Economic Development for a Growing
Economy Tax Credit Act is amended by changing Sections 5-5,
5-15, 5-20, and 5-77 as follows:
 
    (35 ILCS 10/5-5)
    Sec. 5-5. Definitions. As used in this Act:
    "Agreement" means the Agreement between a Taxpayer and the
Department under the provisions of Section 5-50 of this Act.
    "Applicant" means a Taxpayer that is operating a business
located or that the Taxpayer plans to locate within the State
of Illinois and that is engaged in interstate or intrastate
commerce for the purpose of manufacturing, processing,
assembling, warehousing, or distributing products, conducting
research and development, providing tourism services, or
providing services in interstate commerce, office industries,
or agricultural processing, but excluding retail, retail food,
health, or professional services. "Applicant" does not include
a Taxpayer who closes or substantially reduces an operation at
one location in the State and relocates substantially the same
operation to another location in the State. This does not
prohibit a Taxpayer from expanding its operations at another
location in the State, provided that existing operations of a
similar nature located within the State are not closed or
substantially reduced. This also does not prohibit a Taxpayer
from moving its operations from one location in the State to
another location in the State for the purpose of expanding the
operation provided that the Department determines that
expansion cannot reasonably be accommodated within the
municipality in which the business is located, or in the case
of a business located in an incorporated area of the county,
within the county in which the business is located, after
conferring with the chief elected official of the municipality
or county and taking into consideration any evidence offered
by the municipality or county regarding the ability to
accommodate expansion within the municipality or county.
    "Credit" means the amount agreed to between the Department
and Applicant under this Act, but not to exceed the lesser of:
(1) the sum of (i) 50% of the Incremental Income Tax
attributable to New Employees at the Applicant's project and
(ii) 10% of the training costs of New Employees; or (2) 100% of
the Incremental Income Tax attributable to New Employees at
the Applicant's project. However, if the project is located in
an underserved area, then the amount of the Credit may not
exceed the lesser of: (1) the sum of (i) 75% of the Incremental
Income Tax attributable to New Employees at the Applicant's
project and (ii) 10% of the training costs of New Employees; or
(2) 100% of the Incremental Income Tax attributable to New
Employees at the Applicant's project. If an Applicant agrees
to hire the required number of New Employees, then the maximum
amount of the Credit for that Applicant may be increased by an
amount not to exceed 25% of the Incremental Income Tax
attributable to retained employees at the Applicant's project;
provided that, in order to receive the increase for retained
employees, the Applicant must provide the additional evidence
required under paragraph (3) of subsection (b) of Section
5-25.
    "Department" means the Department of Commerce and Economic
Opportunity.
    "Director" means the Director of Commerce and Economic
Opportunity.
    "Full-time Employee" means an individual who is employed
for consideration for at least 35 hours each week or who
renders any other standard of service generally accepted by
industry custom or practice as full-time employment. An
individual for whom a W-2 is issued by a Professional Employer
Organization (PEO) is a full-time employee if employed in the
service of the Applicant for consideration for at least 35
hours each week or who renders any other standard of service
generally accepted by industry custom or practice as full-time
employment to Applicant.
    "Incremental Income Tax" means the total amount withheld
during the taxable year from the compensation of New Employees
and, if applicable, retained employees under Article 7 of the
Illinois Income Tax Act arising from employment at a project
that is the subject of an Agreement.
    "New Construction EDGE Agreement" means the Agreement
between a Taxpayer and the Department under the provisions of
Section 5-51 of this Act.
    "New Construction EDGE Credit" means an amount agreed to
between the Department and the Applicant under this Act as
part of a New Construction EDGE Agreement that does not exceed
50% of the Incremental Income Tax attributable to New
Construction EDGE Employees at the Applicant's project;
however, if the New Construction EDGE Project is located in an
underserved area, then the amount of the New Construction EDGE
Credit may not exceed 75% of the Incremental Income Tax
attributable to New Construction EDGE Employees at the
Applicant's New Construction EDGE Project.
    "New Construction EDGE Employee" means a laborer or worker
who is employed by an Illinois contractor or subcontractor in
the actual construction work on the site of a New Construction
EDGE Project, pursuant to a New Construction EDGE Agreement.
    "New Construction EDGE Incremental Income Tax" means the
total amount withheld during the taxable year from the
compensation of New Construction EDGE Employees.
    "New Construction EDGE Project" means the building of a
Taxpayer's structure or building, or making improvements of
any kind to real property. "New Construction EDGE Project"
does not include the routine operation, routine repair, or
routine maintenance of existing structures, buildings, or real
property.
    "New Employee" means:
        (a) A Full-time Employee first employed by a Taxpayer
    in the project that is the subject of an Agreement and who
    is hired after the Taxpayer enters into the tax credit
    Agreement.
        (b) The term "New Employee" does not include:
            (1) an employee of the Taxpayer who performs a job
        that was previously performed by another employee, if
        that job existed for at least 6 months before hiring
        the employee;
            (2) an employee of the Taxpayer who was previously
        employed in Illinois by a Related Member of the
        Taxpayer and whose employment was shifted to the
        Taxpayer after the Taxpayer entered into the tax
        credit Agreement; or
            (3) a child, grandchild, parent, or spouse, other
        than a spouse who is legally separated from the
        individual, of any individual who has a direct or an
        indirect ownership interest of at least 5% in the
        profits, capital, or value of the Taxpayer.
        (c) Notwithstanding paragraph (1) of subsection (b),
    an employee may be considered a New Employee under the
    Agreement if the employee performs a job that was
    previously performed by an employee who was:
            (1) treated under the Agreement as a New Employee;
        and
            (2) promoted by the Taxpayer to another job.
        (d) Notwithstanding subsection (a), the Department may
    award Credit to an Applicant with respect to an employee
    hired prior to the date of the Agreement if:
            (1) the Applicant is in receipt of a letter from
        the Department stating an intent to enter into a
        credit Agreement;
            (2) the letter described in paragraph (1) is
        issued by the Department not later than 15 days after
        the effective date of this Act; and
            (3) the employee was hired after the date the
        letter described in paragraph (1) was issued.
    "Noncompliance Date" means, in the case of a Taxpayer that
is not complying with the requirements of the Agreement or the
provisions of this Act, the day following the last date upon
which the Taxpayer was in compliance with the requirements of
the Agreement and the provisions of this Act, as determined by
the Director, pursuant to Section 5-65.
    "Pass Through Entity" means an entity that is exempt from
the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
    "Professional Employer Organization" (PEO) means an
employee leasing company, as defined in Section 206.1(A)(2) of
the Illinois Unemployment Insurance Act.
    "Related Member" means a person that, with respect to the
Taxpayer during any portion of the taxable year, is any one of
the following:
        (1) An individual stockholder, if the stockholder and
    the members of the stockholder's family (as defined in
    Section 318 of the Internal Revenue Code) own directly,
    indirectly, beneficially, or constructively, in the
    aggregate, at least 50% of the value of the Taxpayer's
    outstanding stock.
        (2) A partnership, estate, or trust and any partner or
    beneficiary, if the partnership, estate, or trust, and its
    partners or beneficiaries own directly, indirectly,
    beneficially, or constructively, in the aggregate, at
    least 50% of the profits, capital, stock, or value of the
    Taxpayer.
        (3) A corporation, and any party related to the
    corporation in a manner that would require an attribution
    of stock from the corporation to the party or from the
    party to the corporation under the attribution rules of
    Section 318 of the Internal Revenue Code, if the Taxpayer
    owns directly, indirectly, beneficially, or constructively
    at least 50% of the value of the corporation's outstanding
    stock.
        (4) A corporation and any party related to that
    corporation in a manner that would require an attribution
    of stock from the corporation to the party or from the
    party to the corporation under the attribution rules of
    Section 318 of the Internal Revenue Code, if the
    corporation and all such related parties own in the
    aggregate at least 50% of the profits, capital, stock, or
    value of the Taxpayer.
        (5) A person to or from whom there is attribution of
    stock ownership in accordance with Section 1563(e) of the
    Internal Revenue Code, except, for purposes of determining
    whether a person is a Related Member under this paragraph,
    20% shall be substituted for 5% wherever 5% appears in
    Section 1563(e) of the Internal Revenue Code.
    "Startup taxpayer" means a corporation, partnership, or
other entity incorporated or organized no more than 5 years
before the filing of an application for an Agreement that has
never had any Illinois income tax liability, excluding any
Illinois income tax liability of a Related Member which shall
not be attributed to the startup taxpayer.
    "Taxpayer" means an individual, corporation, partnership,
or other entity that has any Illinois Income Tax liability.
    Until July 1, 2022, "underserved "Underserved area" means
a geographic area that meets one or more of the following
conditions:
        (1) the area has a poverty rate of at least 20%
    according to the 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) at least 20% of the households in the area receive
    assistance under the Supplemental Nutrition Assistance
    Program (SNAP); or
        (4) the area has an average unemployment rate, as
    determined by the Illinois 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.
    On and after July 1, 2022, "underserved area" means a
geographic area that meets one or more of the following
conditions:
        (1) the area has a poverty rate of at least 20%
    according to the latest American Community Survey;
        (2) 35% or more of the families with children in the
    area are living below 130% of the poverty line, according
    to the latest American Community Survey;
        (3) at least 20% of the households in the area receive
    assistance under the Supplemental Nutrition Assistance
    Program (SNAP); or
        (4) the area has an average unemployment rate, as
    determined by the Illinois 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.
(Source: P.A. 101-9, eff. 6-5-19; 102-330, eff. 1-1-22.)
 
    (35 ILCS 10/5-15)
    Sec. 5-15. Tax Credit Awards. Subject to the conditions
set forth in this Act, a Taxpayer is entitled to a Credit
against or, as described in subsection (g) of this Section, a
payment towards taxes imposed pursuant to subsections (a) and
(b) of Section 201 of the Illinois Income Tax Act that may be
imposed on the Taxpayer for a taxable year beginning on or
after January 1, 1999, if the Taxpayer is awarded a Credit by
the Department under this Act for that taxable year.
    (a) The Department shall make Credit awards under this Act
to foster job creation and retention in Illinois.
    (b) A person that proposes a project to create new jobs in
Illinois must enter into an Agreement with the Department for
the Credit under this Act.
    (c) The Credit shall be claimed for the taxable years
specified in the Agreement.
    (d) The Credit shall not exceed the Incremental Income Tax
attributable to the project that is the subject of the
Agreement.
    (e) Nothing herein shall prohibit a Tax Credit Award to an
Applicant that uses a PEO if all other award criteria are
satisfied.
    (f) In lieu of the Credit allowed under this Act against
the taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act for any taxable year
ending on or after December 31, 2009, for Taxpayers that
entered into Agreements prior to January 1, 2015 and otherwise
meet the criteria set forth in this subsection (f), the
Taxpayer may elect to claim the Credit against its obligation
to pay over withholding under Section 704A of the Illinois
Income Tax Act.
        (1) The election under this subsection (f) may be made
    only by a Taxpayer that (i) is primarily engaged in one of
    the following business activities: water purification and
    treatment, motor vehicle metal stamping, automobile
    manufacturing, automobile and light duty motor vehicle
    manufacturing, motor vehicle manufacturing, light truck
    and utility vehicle manufacturing, heavy duty truck
    manufacturing, motor vehicle body manufacturing, cable
    television infrastructure design or manufacturing, or
    wireless telecommunication or computing terminal device
    design or manufacturing for use on public networks and
    (ii) meets the following criteria:
            (A) the Taxpayer (i) had an Illinois net loss or an
        Illinois net loss deduction under Section 207 of the
        Illinois Income Tax Act for the taxable year in which
        the Credit is awarded, (ii) employed a minimum of
        1,000 full-time employees in this State during the
        taxable year in which the Credit is awarded, (iii) has
        an Agreement under this Act on December 14, 2009 (the
        effective date of Public Act 96-834), and (iv) is in
        compliance with all provisions of that Agreement;
            (B) the Taxpayer (i) had an Illinois net loss or an
        Illinois net loss deduction under Section 207 of the
        Illinois Income Tax Act for the taxable year in which
        the Credit is awarded, (ii) employed a minimum of
        1,000 full-time employees in this State during the
        taxable year in which the Credit is awarded, and (iii)
        has applied for an Agreement within 365 days after
        December 14, 2009 (the effective date of Public Act
        96-834);
            (C) the Taxpayer (i) had an Illinois net operating
        loss carryforward under Section 207 of the Illinois
        Income Tax Act in a taxable year ending during
        calendar year 2008, (ii) has applied for an Agreement
        within 150 days after the effective date of this
        amendatory Act of the 96th General Assembly, (iii)
        creates at least 400 new jobs in Illinois, (iv)
        retains at least 2,000 jobs in Illinois that would
        have been at risk of relocation out of Illinois over a
        10-year period, and (v) makes a capital investment of
        at least $75,000,000;
            (D) the Taxpayer (i) had an Illinois net operating
        loss carryforward under Section 207 of the Illinois
        Income Tax Act in a taxable year ending during
        calendar year 2009, (ii) has applied for an Agreement
        within 150 days after the effective date of this
        amendatory Act of the 96th General Assembly, (iii)
        creates at least 150 new jobs, (iv) retains at least
        1,000 jobs in Illinois that would have been at risk of
        relocation out of Illinois over a 10-year period, and
        (v) makes a capital investment of at least
        $57,000,000; or
            (E) the Taxpayer (i) employed at least 2,500
        full-time employees in the State during the year in
        which the Credit is awarded, (ii) commits to make at
        least $500,000,000 in combined capital improvements
        and project costs under the Agreement, (iii) applies
        for an Agreement between January 1, 2011 and June 30,
        2011, (iv) executes an Agreement for the Credit during
        calendar year 2011, and (v) was incorporated no more
        than 5 years before the filing of an application for an
        Agreement.
        (1.5) The election under this subsection (f) may also
    be made by a Taxpayer for any Credit awarded pursuant to an
    agreement that was executed between January 1, 2011 and
    June 30, 2011, if the Taxpayer (i) is primarily engaged in
    the manufacture of inner tubes or tires, or both, from
    natural and synthetic rubber, (ii) employs a minimum of
    2,400 full-time employees in Illinois at the time of
    application, (iii) creates at least 350 full-time jobs and
    retains at least 250 full-time jobs in Illinois that would
    have been at risk of being created or retained outside of
    Illinois, and (iv) makes a capital investment of at least
    $200,000,000 at the project location.
        (1.6) The election under this subsection (f) may also
    be made by a Taxpayer for any Credit awarded pursuant to an
    agreement that was executed within 150 days after the
    effective date of this amendatory Act of the 97th General
    Assembly, if the Taxpayer (i) is primarily engaged in the
    operation of a discount department store, (ii) maintains
    its corporate headquarters in Illinois, (iii) employs a
    minimum of 4,250 full-time employees at its corporate
    headquarters in Illinois at the time of application, (iv)
    retains at least 4,250 full-time jobs in Illinois that
    would have been at risk of being relocated outside of
    Illinois, (v) had a minimum of $40,000,000,000 in total
    revenue in 2010, and (vi) makes a capital investment of at
    least $300,000,000 at the project location.
        (1.7) Notwithstanding any other provision of law, the
    election under this subsection (f) may also be made by a
    Taxpayer for any Credit awarded pursuant to an agreement
    that was executed or applied for on or after July 1, 2011
    and on or before March 31, 2012, if the Taxpayer is
    primarily engaged in the manufacture of original and
    aftermarket filtration parts and products for automobiles,
    motor vehicles, light duty motor vehicles, light trucks
    and utility vehicles, and heavy duty trucks, (ii) employs
    a minimum of 1,000 full-time employees in Illinois at the
    time of application, (iii) creates at least 250 full-time
    jobs in Illinois, (iv) relocates its corporate
    headquarters to Illinois from another state, and (v) makes
    a capital investment of at least $4,000,000 at the project
    location.
        (1.8) Notwithstanding any other provision of law, the
    election under this subsection (f) may also be made by a
    startup taxpayer for any Credit awarded pursuant to an
    Agreement that was executed or applied for on or after the
    effective date of this amendatory Act of the 102nd General
    Assembly, if the startup taxpayer, without considering any
    Related Member or other investor, (i) has never had any
    Illinois income tax liability and (ii) was incorporated no
    more than 5 years before the filing of an application for
    an Agreement. Any such election under this paragraph (1.8)
    shall be effective unless and until such startup taxpayer
    has any Illinois income tax liability. This election under
    this paragraph (1.8) shall automatically terminate when
    the startup taxpayer has any Illinois income tax liability
    at the end of any taxable year during the term of the
    Agreement. Thereafter, the startup taxpayer may receive a
    Credit, taking into account any benefits previously
    enjoyed or received by way of the election under this
    paragraph (1.8), so long as the startup taxpayer remains
    in compliance with the terms and conditions of the
    Agreement.
        (2) An election under this subsection shall allow the
    credit to be taken against payments otherwise due under
    Section 704A of the Illinois Income Tax Act during the
    first calendar year beginning after the end of the taxable
    year in which the credit is awarded under this Act.
        (3) The election shall be made in the form and manner
    required by the Illinois Department of Revenue and, once
    made, shall be irrevocable.
        (4) If a Taxpayer who meets the requirements of
    subparagraph (A) of paragraph (1) of this subsection (f)
    elects to claim the Credit against its withholdings as
    provided in this subsection (f), then, on and after the
    date of the election, the terms of the Agreement between
    the Taxpayer and the Department may not be further amended
    during the term of the Agreement.
    (g) A pass-through entity that has been awarded a credit
under this Act, its shareholders, or its partners may treat
some or all of the credit awarded pursuant to this Act as a tax
payment for purposes of the Illinois Income Tax Act. The term
"tax payment" means a payment as described in Article 6 or
Article 8 of the Illinois Income Tax Act or a composite payment
made by a pass-through entity on behalf of any of its
shareholders or partners to satisfy such shareholders' or
partners' taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act. In no event shall
the amount of the award credited pursuant to this Act exceed
the Illinois income tax liability of the pass-through entity
or its shareholders or partners for the taxable year.
(Source: P.A. 100-511, eff. 9-18-17.)
 
    (35 ILCS 10/5-20)
    Sec. 5-20. Application for a project to create and retain
new jobs.
    (a) Any Taxpayer proposing a project located or planned to
be located in Illinois may request consideration for
designation of its project, by formal written letter of
request or by formal application to the Department, in which
the Applicant states its intent to make at least a specified
level of investment and intends to hire or retain a specified
number of full-time employees at a designated location in
Illinois. As circumstances require, the Department may require
a formal application from an Applicant and a formal letter of
request for assistance.
    (b) In order to qualify for Credits under this Act, an
Applicant's project must:
        (1) if the Applicant has more than 100 employees,
    involve an investment of at least $2,500,000 in capital
    improvements to be placed in service within the State as a
    direct result of the project; if the Applicant has 100 or
    fewer employees, then there is no capital investment
    requirement;
        (1.5) if the Applicant has more than 100 employees,
    employ a number of new employees in the State equal to the
    lesser of (A) 10% of the number of full-time employees
    employed by the applicant world-wide on the date the
    application is filed with the Department or (B) 50 New
    Employees; and, if the Applicant has 100 or fewer
    employees, employ a number of new employees in the State
    equal to the lesser of (A) 5% of the number of full-time
    employees employed by the applicant world-wide on the date
    the application is filed with the Department or (B) 50 New
    Employees;
        (1.6) if the Applicant is a startup taxpayer, the
    employees employed by Related Members shall not be
    attributed to the Applicant for purposes of determining
    the capital investment or job creation requirements under
    this subsection (b);
        (2) (blank);
        (3) (blank); and
        (4) include an annual sexual harassment policy report
    as provided under Section 5-58.
    (c) After receipt of an application, the Department may
enter into an Agreement with the Applicant if the application
is accepted in accordance with Section 5-25.
(Source: P.A. 100-511, eff. 9-18-17; 100-698, eff. 1-1-19;
101-81, eff. 7-12-19.)
 
    (35 ILCS 10/5-77)
    Sec. 5-77. Sunset of new Agreements. The Department shall
not enter into any new Agreements under the provisions of
Section 5-50 of this Act after June 30, 2027 June 30, 2022.
(Source: P.A. 99-925, eff. 1-20-17; 100-511, eff. 9-18-17.)
 
    Section 5-10. The River Edge Redevelopment Zone Act is
amended by changing Section 10-3 as follows:
 
    (65 ILCS 115/10-3)
    Sec. 10-3. Definitions. As used in this Act:
    "Department" means the Department of Commerce and Economic
Opportunity.
    "River Edge Redevelopment Zone" means an area of the State
certified by the Department as a River Edge Redevelopment Zone
pursuant to this Act.
    "Designated zone organization" means an association or
entity: (1) the members of which are substantially all
residents of the River Edge Redevelopment Zone or of the
municipality in which the River Edge Redevelopment Zone is
located; (2) the board of directors of which is elected by the
members of the organization; (3) that satisfies the criteria
set forth in Section 501(c) (3) or 501(c) (4) of the Internal
Revenue Code; and (4) that exists primarily for the purpose of
performing within the zone, for the benefit of the residents
and businesses thereof, any of the functions set forth in
Section 8 of this Act.
    "Incremental income tax" means the total amount withheld
during the taxable year from the compensation of River Edge
Construction Jobs Employees.
    "Agency" means: each officer, board, commission, and
agency created by the Constitution, in the executive branch of
State government, other than the State Board of Elections;
each officer, department, board, commission, agency,
institution, authority, university, and body politic and
corporate of the State; each administrative unit or corporate
outgrowth of the State government that is created by or
pursuant to statute, other than units of local government and
their officers, school districts, and boards of election
commissioners; and each administrative unit or corporate
outgrowth of the above and as may be created by executive order
of the Governor. No entity is an "agency" for the purposes of
this Act unless the entity is authorized by law to make rules
or regulations.
    "River Edge construction jobs credit" means an amount
equal to 50% of the incremental income tax attributable to
River Edge construction employees employed on a River Edge
construction jobs project. However, the amount may equal 75%
of the incremental income tax attributable to River Edge
construction employees employed on a River Edge construction
jobs project located in an underserved area. The total
aggregate amount of credits awarded under the Blue Collar Jobs
Act (Article 20 of this amendatory Act of the 101st General
Assembly) shall not exceed $20,000,000 in any State fiscal
year.
    "River Edge construction jobs employee" means a laborer or
worker who is employed by an Illinois contractor or
subcontractor in the actual construction work on the site of a
River Edge construction jobs project.
    "River Edge construction jobs project" means building a
structure or building, or making improvements of any kind to
real property, in a River Edge Redevelopment Zone that is
built or improved in the course of completing a qualified
rehabilitation plan. "River Edge construction jobs project"
does not include the routine operation, routine repair, or
routine maintenance of existing structures, buildings, or real
property.
    "Rule" means each agency statement of general
applicability that implements, applies, interprets, or
prescribes law or policy, but does not include (i) statements
concerning only the internal management of an agency and not
affecting private rights or procedures available to persons or
entities outside the agency, (ii) intra-agency memoranda, or
(iii) the prescription of standardized forms.
    Until July 1, 2022, "underserved "Underserved area" means
a geographic area that meets one or more of the following
conditions:
        (1) the area has a poverty rate of at least 20%
    according to the 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) at least 20% of the households in the area receive
    assistance under the Supplemental Nutrition Assistance
    Program (SNAP); or
        (4) the area has an average unemployment rate, as
    determined by the Illinois 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.
    Beginning July 1, 2022, "Underserved area" means a
geographic area that meets one or more of the following
conditions:
        (1) the area has a poverty rate of at least 20%
    according to the latest American Community Survey;
        (2) 35% or more of the families with children in the
    area are living below 130% of the poverty line, according
    to the latest American Community Survey;
        (3) at least 20% of the households in the area receive
    assistance under the Supplemental Nutrition Assistance
    Program (SNAP); or
        (4) the area has an average unemployment rate, as
    determined by the Illinois 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.
(Source: P.A. 101-9, eff. 6-5-19.)
 
ARTICLE 10. FILM PRODUCTION TAX CREDIT

 
    Section 10-5. The Illinois Income Tax Act is amended by
changing Section 213 as follows:
 
    (35 ILCS 5/213)
    Sec. 213. Film production services credit. For tax years
beginning on or after January 1, 2004, a taxpayer who has been
awarded a tax credit under the Film Production Services Tax
Credit Act or under the Film Production Services Tax Credit
Act of 2008 is entitled to a credit against the taxes imposed
under subsections (a) and (b) of Section 201 of this Act in an
amount determined by the Department of Commerce and Economic
Opportunity under those Acts. If the taxpayer is a partnership
or Subchapter S corporation, the credit is allowed to the
partners or shareholders 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.
    A transfer of this credit may be made by the taxpayer
earning the credit within one year after the credit is awarded
in accordance with rules adopted by the Department of Commerce
and Economic Opportunity. Beginning July 1, 2023, if a credit
is transferred under this Section by the taxpayer, then the
transferor taxpayer shall pay to the Department of Commerce
and Economic Opportunity, upon notification of a transfer, a
fee equal to 2.5% of the transferred credit amount eligible
for nonresident wages, as described in Section 10 of the Film
Production Services Tax Credit Act of 2008, and an additional
fee of 0.25% of the total amount of the transferred credit that
is not calculated on nonresident wages, which shall be
deposited into the Illinois Production Workforce Development
Fund.
    The Department, in cooperation with the Department of
Commerce and Economic Opportunity, must prescribe rules to
enforce and administer the provisions of this Section. This
Section is exempt from the provisions of Section 250 of this
Act.
    The credit may not be carried back. 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 credit
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one tax year
that are available to offset a liability, the earlier credit
shall be applied first. In no event shall a credit under this
Section reduce the taxpayer's liability to less than zero.
(Source: P.A. 94-171, eff. 7-11-05; 95-720, eff. 5-27-08.)
 
    Section 10-10. The Film Production Services Tax Credit Act
of 2008 is amended by changing Sections 10 and 42 and by adding
Section 46 as follows:
 
    (35 ILCS 16/10)
    Sec. 10. Definitions. As used in this Act:
    "Accredited production" means: (i) for productions
commencing before May 1, 2006, a film, video, or television
production that has been certified by the Department in which
the aggregate Illinois labor expenditures included in the cost
of the production, in the period that ends 12 months after the
time principal filming or taping of the production began,
exceed $100,000 for productions of 30 minutes or longer, or
$50,000 for productions of less than 30 minutes; and (ii) for
productions commencing on or after May 1, 2006, a film, video,
or television production that has been certified by the
Department in which the Illinois production spending included
in the cost of production in the period that ends 12 months
after the time principal filming or taping of the production
began exceeds $100,000 for productions of 30 minutes or longer
or exceeds $50,000 for productions of less than 30 minutes.
"Accredited production" does not include a production that:
        (1) is news, current events, or public programming, or
    a program that includes weather or market reports;
        (2) is a talk show;
        (3) is a production in respect of a game,
    questionnaire, or contest;
        (4) is a sports event or activity;
        (5) is a gala presentation or awards show;
        (6) is a finished production that solicits funds;
        (7) is a production produced by a film production
    company if records, as required by 18 U.S.C. 2257, are to
    be maintained by that film production company with respect
    to any performer portrayed in that single media or
    multimedia program; or
        (8) is a production produced primarily for industrial,
    corporate, or institutional purposes.
    "Accredited animated production" means an accredited
production in which movement and characters' performances are
created using a frame-by-frame technique and a significant
number of major characters are animated. Motion capture by
itself is not an animation technique.
    "Accredited production certificate" means a certificate
issued by the Department certifying that the production is an
accredited production that meets the guidelines of this Act.
    "Applicant" means a taxpayer that is a film production
company that is operating or has operated an accredited
production located within the State of Illinois and that (i)
owns the copyright in the accredited production throughout the
Illinois production period or (ii) has contracted directly
with the owner of the copyright in the accredited production
or a person acting on behalf of the owner to provide services
for the production, where the owner of the copyright is not an
eligible production corporation.
    "Credit" means:
        (1) for an accredited production approved by the
    Department on or before January 1, 2005 and commencing
    before May 1, 2006, the amount equal to 25% of the Illinois
    labor expenditure approved by the Department. The
    applicant is deemed to have paid, on its balance due day
    for the year, an amount equal to 25% of its qualified
    Illinois labor expenditure for the tax year. For Illinois
    labor expenditures generated by the employment of
    residents of geographic areas of high poverty or high
    unemployment, as determined by the Department, in an
    accredited production commencing before May 1, 2006 and
    approved by the Department after January 1, 2005, the
    applicant shall receive an enhanced credit of 10% in
    addition to the 25% credit; and
        (2) for an accredited production commencing on or
    after May 1, 2006, the amount equal to:
            (i) 20% of the Illinois production spending for
        the taxable year; plus
            (ii) 15% of the Illinois labor expenditures
        generated by the employment of residents of geographic
        areas of high poverty or high unemployment, as
        determined by the Department; and
        (3) for an accredited production commencing on or
    after January 1, 2009, the amount equal to:
            (i) 30% of the Illinois production spending for
        the taxable year; plus
            (ii) 15% of the Illinois labor expenditures
        generated by the employment of residents of geographic
        areas of high poverty or high unemployment, as
        determined by the Department.
    "Department" means the Department of Commerce and Economic
Opportunity.
    "Director" means the Director of Commerce and Economic
Opportunity.
    "Illinois labor expenditure" means salary or wages paid to
employees of the applicant for services on the accredited
production.
    To qualify as an Illinois labor expenditure, the
expenditure must be:
        (1) Reasonable in the circumstances.
        (2) Included in the federal income tax basis of the
    property.
        (3) Incurred by the applicant for services on or after
    January 1, 2004.
        (4) Incurred for the production stages of the
    accredited production, from the final script stage to the
    end of the post-production stage.
        (5) Limited to the first $25,000 of wages paid or
    incurred to each employee of a production commencing
    before May 1, 2006 and the first $100,000 of wages paid or
    incurred to each employee of a production commencing on or
    after May 1, 2006 and prior to July 1, 2022. For
    productions commencing on or after July 1, 2022, limited
    to the first $500,000 of wages paid or incurred to each
    nonresident or resident employee of a production company
    or loan out company that provides in-State services to a
    production, whether those wages are paid or incurred by
    the production company, loan out company, or both, subject
    to withholding payments provided for in Article 7 of the
    Illinois Income Tax Act. For purposes of calculating
    Illinois labor expenditures for a television series, the
    nonresident wage limitations provided under this
    subparagraph are applied to the entire season.
        (6) For a production commencing before May 1, 2006,
    exclusive of the salary or wages paid to or incurred for
    the 2 highest paid employees of the production.
        (7) Directly attributable to the accredited
    production.
        (8) (Blank).
        (9) Prior to July 1, 2022, paid Paid to persons
    resident in Illinois at the time the payments were made.
    For a production commencing on or after July 1, 2022, paid
    to persons resident in Illinois and nonresidents at the
    time the payments were made. For purposes of this
    subparagraph, only wages paid to nonresidents working in
    the following positions shall be considered Illinois labor
    expenditures: Writer, Director, Director of Photography,
    Production Designer, Costume Designer, Production
    Accountant, VFX Supervisor, Editor, Composer, and Actor,
    subject to the limitations set forth under this
    subparagraph. For an accredited Illinois production
    spending of $25,000,000 or less, no more than 2
    nonresident actors' wages shall qualify as an Illinois
    labor expenditure. For an accredited production with
    Illinois production spending of more than $25,000,000, no
    more than 4 nonresident actor's wages shall qualify as
    Illinois labor expenditures.
        (10) Paid for services rendered in Illinois.
    "Illinois production spending" means the expenses incurred
by the applicant for an accredited production, including,
without limitation, all of the following:
        (1) expenses to purchase, from vendors within
    Illinois, tangible personal property that is used in the
    accredited production;
        (2) expenses to acquire services, from vendors in
    Illinois, for film production, editing, or processing; and
        (3) for a production commencing before July 1, 2022,
    the compensation, not to exceed $100,000 for any one
    employee, for contractual or salaried employees who are
    Illinois residents performing services with respect to the
    accredited production. For a production commencing on or
    after July 1, 2022, the compensation, not to exceed
    $500,000 for any one employee, for contractual or salaried
    employees who are Illinois residents or nonresident
    employees, subject to the limitations set forth under
    Section 10 of this Act.
    "Loan out company" means a personal service corporation or
other entity that is under contract with the taxpayer to
provide specified individual personnel, such as artists, crew,
actors, producers, or directors for the performance of
services used directly in a production. "Loan out company"
does not include entities contracted with by the taxpayer to
provide goods or ancillary contractor services such as
catering, construction, trailers, equipment, or
transportation.
    "Qualified production facility" means stage facilities in
the State in which television shows and films are or are
intended to be regularly produced and that contain at least
one sound stage of at least 15,000 square feet.
    Rulemaking authority to implement Public Act 95-1006, if
any, is conditioned on the rules being adopted in accordance
with all provisions of the Illinois Administrative Procedure
Act and all rules and procedures of the Joint Committee on
Administrative Rules; any purported rule not so adopted, for
whatever reason, is unauthorized.
(Source: P.A. 102-558, eff. 8-20-21.)
 
    (35 ILCS 16/42)
    Sec. 42. Sunset of credits. The application of credits
awarded pursuant to this Act shall be limited by a reasonable
and appropriate sunset date. A taxpayer shall not be awarded
any new credits entitled to take a credit awarded pursuant to
this Act for tax years beginning on or after January 1, 2027.
(Source: P.A. 101-178, eff. 8-1-19.)
 
    (35 ILCS 16/46 new)
    Sec. 46. Illinois Production Workforce Development Fund.
    (a) The Illinois Production Workforce Development Fund is
created as a special fund in the State Treasury. Beginning
July 1, 2022, amounts paid to the Department of Commerce and
Economic Opportunity pursuant to Section 213 of the Illinois
Income Tax Act shall be deposited into the Fund. The Fund shall
be used exclusively to provide grants to community-based
organizations, labor organizations, private and public
universities, community colleges, and other organizations and
institutions that may be deemed appropriate by the Department
to administer workforce training programs that support efforts
to recruit, hire, promote, retain, develop, and train a
diverse and inclusive workforce in the film industry.
    (b) Pursuant to Section 213 of the Illinois Income Tax
Act, the Fund shall receive deposits in amounts not to exceed
0.25% of the amount of each credit certificate issued that is
not calculated on out-of-state wages and transferred or
claimed on an Illinois tax return in the quarter such credit
was transferred or claimed. In addition, such amount shall
also include 2.5% of the credit amount calculated on wages
paid to nonresidents that is transferred or claimed on an
Illinois tax return in the quarter such credit was transferred
or claimed.
    (c) At the request of the Department, the State
Comptroller and the State Treasurer may advance amounts to the
Fund on an annual basis not to exceed $1,000,000 in any fiscal
year. The fund from which the moneys are advanced shall be
reimbursed in the same fiscal year for any such advance
payments as described in this Section. The method of
reimbursement shall be set forth in rules.
    (d) Of the appropriated funds in a given fiscal year, 50%
of the appropriated funds shall be reserved for organizations
that meet one of the following criteria. The organization is:
(1) a minority-owned business, as defined by the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act; (2) located in an underserved area, as
defined by the Economic Development for a Growing Economy Tax
Credit Act; or (3) on an annual basis, training a cohort of
program participants where at least 50% of the program
participants are either a minority person, as defined by the
Business Enterprise for Minorities, Women, and Persons with
Disabilities Act, or reside in an underserved area, as defined
by the Economic Development for a Growing Economy Tax Credit
Act.
    (e) The Illinois Production Workforce Development Fund
shall be administered by the Department. The Department may
adopt rules necessary to administer the provisions of this
Section.
    (f) Notwithstanding any other law to the contrary, the
Illinois Production Workforce Development Fund is not subject
to sweeps, administrative charge-backs, or any other fiscal or
budgetary maneuver that would in any way transfer any amounts
from the Illinois Production Workforce Development Fund.
    (g) By June 30 of each fiscal year, the Department must
submit to the General Assembly a report that includes the
following information: (1) an identification of the
organizations and institutions that received funding to
administer workforce training programs during the fiscal year;
(2) the number of total persons trained and the number of
persons trained per workforce training program in the fiscal
year; and (3) in the aggregate, per organization, the number
of persons identified as a minority person or that reside in an
underserved area that received training in the fiscal year.
 
    Section 10-90. The State Finance Act is amended by adding
Section 5.970 as follows:
 
    (30 ILCS 105/5.970 new)
    Sec. 5.970. The Illinois Production Workforce Development
Fund.
 
ARTICLE 15. LIVE THEATER TAX CREDIT

 
    Section 15-5. The Live Theater Production Tax Credit Act
is amended by changing Section 10-20 as follows:
 
    (35 ILCS 17/10-20)
    Sec. 10-20. Tax credit award. Subject to the conditions
set forth in this Act, an applicant is entitled to a tax credit
award as approved by the Department for qualifying Illinois
labor expenditures and Illinois production spending for each
tax year in which the applicant is awarded an accredited
theater production certificate issued by the Department. The
amount of tax credits awarded pursuant to this Act shall not
exceed $2,000,000 for State fiscal years ending on or before
June 30, 2022 and ending on or after June 30, 2024. Due to the
impact of the COVID-19 pandemic, for the State fiscal year
ending on June 30, 2023, the amount of tax credits awarded
pursuant to this Act shall not exceed $4,000,000. For the
State fiscal year ending on June 30, 2023, credits awarded
under this Act in excess of $2,000,000 must be awarded to
applicants with Illinois production spending of not less than
$2,500,000, as shown on the applicant's application for the
credit. in any fiscal year. Credits shall be awarded on a
first-come, first-served basis. Notwithstanding the foregoing,
if the amount of credits applied for in any fiscal year exceeds
the amount authorized to be awarded under this Section, the
excess credit amount shall be awarded in the next fiscal year
in which credits remain available for award and shall be
treated as having been applied for on the first day of that
fiscal year.
(Source: P.A. 97-636, eff. 6-1-12.)
 
ARTICLE 20. BIODIESEL

 
    Section 20-5. The Use Tax Act is amended by changing
Sections 3-10 and 3-41 and by adding Sections 3-5.1 and 3-42.5
as follows:
 
    (35 ILCS 105/3-5.1 new)
    Sec. 3-5.1. Biodiesel, renewable diesel, and biodiesel
blends.
    (a) On and after January 1, 2024 and on or before December
31, 2030, the taxes imposed by this Act, the Service Use Tax
Act, the Service Occupation Tax Act, or the Retailers'
Occupation Tax Act apply to 100% of the proceeds of sales of
(i) biodiesel blends with no less than 1% and no more than 10%
of biodiesel and (ii) any diesel fuel containing no less than
1% and no more than 10% of renewable diesel.
    (b) From January 1, 2024 through March 31, 2024, the taxes
imposed by this Act, the Service Use Tax Act, the Service
Occupation Tax Act, or the Retailers' Occupation Tax Act do
not apply to the proceeds of sales of any diesel fuel
containing more than 10% biodiesel or renewable diesel.
    (c) From April 1, 2024 through November 30, 2024, the
taxes imposed by this Act, the Service Use Tax Act, the Service
Occupation Tax Act, or the Retailers' Occupation Tax Act do
not apply to the proceeds of sales of any diesel fuel
containing more than 13% biodiesel or renewable diesel.
    (d) From December 1, 2024 through March 31, 2025, the
taxes imposed by this Act, the Service Use Tax Act, the Service
Occupation Tax Act, or the Retailers' Occupation Tax Act do
not apply to the proceeds of sales of any diesel fuel
containing more than 10% biodiesel or renewable diesel.
    (e) From April 1, 2025 through November 30, 2025, the
taxes imposed by this Act, the Service Use Tax Act, the Service
Occupation Tax Act, or the Retailers' Occupation Tax Act do
not apply to the proceeds of sales of any diesel fuel
containing more than 16% biodiesel or renewable diesel.
    (f) From December 1, 2025 through March 31, 2026, the
taxes imposed by this Act, the Service Use Tax Act, the Service
Occupation Tax Act, or the Retailers' Occupation Tax Act do
not apply to the proceeds of sales of any diesel fuel
containing more than 10% biodiesel or renewable diesel.
    (g) On and after April 1, 2026 and on or before November
30, 2030, the taxes imposed by this Act, the Service Use Tax
Act, the Service Occupation Tax Act, or the Retailers'
Occupation Tax Act do not apply to the proceeds of sales of any
diesel fuel containing more than 19% biodiesel or renewable
diesel; except that, from December 1 of calendar years 2026,
2027, 2028, and 2029 through March 31 of the following
calendar year, and from December 1, 2030 through December 31,
2030, the taxes imposed by this Act, the Service Use Tax Act,
the Service Occupation Tax Act, or the Retailers' Occupation
Tax Act do not apply to the proceeds of sales of any diesel
fuel containing more than 10% biodiesel or renewable diesel.
    (h) This Section is exempt from the provisions of Section
3-90 of this Act, Section 3-75 of the Service Use Tax Act,
Section 3-55 of the Service Occupation Tax Act, and Section
2-70 of the Retailers' Occupation Tax Act.
 
    (35 ILCS 105/3-10)
    Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
either the selling price or the fair market value, if any, of
the tangible personal property. In all cases where property
functionally used or consumed is the same as the property that
was purchased at retail, then the tax is imposed on the selling
price of the property. In all cases where property
functionally used or consumed is a by-product or waste product
that has been refined, manufactured, or produced from property
purchased at retail, then the tax is imposed on the lower of
the fair market value, if any, of the specific property so used
in this State or on the selling price of the property purchased
at retail. For purposes of this Section "fair market value"
means the price at which property would change hands between a
willing buyer and a willing seller, neither being under any
compulsion to buy or sell and both having reasonable knowledge
of the relevant facts. The fair market value shall be
established by Illinois sales by the taxpayer of the same
property as that functionally used or consumed, or if there
are no such sales by the taxpayer, then comparable sales or
purchases of property of like kind and character in Illinois.
    Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
    Beginning on August 6, 2010 through August 15, 2010, with
respect to sales tax holiday items as defined in Section 3-6 of
this Act, the tax is imposed at the rate of 1.25%.
    With respect to gasohol, the tax imposed by this Act
applies to (i) 70% of the proceeds of sales made on or after
January 1, 1990, and before July 1, 2003, (ii) 80% of the
proceeds of sales made on or after July 1, 2003 and on or
before July 1, 2017, and (iii) 100% of the proceeds of sales
made thereafter. If, at any time, however, the tax under this
Act on sales of gasohol is imposed at the rate of 1.25%, then
the tax imposed by this Act applies to 100% of the proceeds of
sales of gasohol made during that time.
    With respect to majority blended ethanol fuel, the tax
imposed by this Act does not apply to the proceeds of sales
made on or after July 1, 2003 and on or before December 31,
2023 but applies to 100% of the proceeds of sales made
thereafter.
    With respect to biodiesel blends with no less than 1% and
no more than 10% biodiesel, the tax imposed by this Act applies
to (i) 80% of the proceeds of sales made on or after July 1,
2003 and on or before December 31, 2018 and (ii) 100% of the
proceeds of sales made after December 31, 2018 and before
January 1, 2024. On and after January 1, 2024 and on or before
December 31, 2030, the taxation of biodiesel, renewable
diesel, and biodiesel blends shall be as provided in Section
3-5.1 thereafter. If, at any time, however, the tax under this
Act on sales of biodiesel blends with no less than 1% and no
more than 10% biodiesel is imposed at the rate of 1.25%, then
the tax imposed by this Act applies to 100% of the proceeds of
sales of biodiesel blends with no less than 1% and no more than
10% biodiesel made during that time.
    With respect to 100% biodiesel and biodiesel blends with
more than 10% but no more than 99% biodiesel, the tax imposed
by this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023 but
applies to 100% of the proceeds of sales made thereafter. On
and after January 1, 2024 and on or before December 31, 2030,
the taxation of biodiesel, renewable diesel, and biodiesel
blends shall be as provided in Section 3-5.1.
    With respect to food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances, products classified as
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,
until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including but not limited to soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size; but
"soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" do not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
    Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
label includes:
        (A) A "Drug Facts" panel; or
        (B) A statement of the "active ingredient(s)" with a
    list of those ingredients contained in the compound,
    substance or preparation.
    Beginning on the effective date of this amendatory Act of
the 98th General Assembly, "prescription and nonprescription
medicines and drugs" includes medical cannabis purchased from
a registered dispensing organization under the Compassionate
Use of Medical Cannabis Program Act.
    As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
    If the property that is purchased at retail from a
retailer is acquired outside Illinois and used outside
Illinois before being brought to Illinois for use here and is
taxable under this Act, the "selling price" on which the tax is
computed shall be reduced by an amount that represents a
reasonable allowance for depreciation for the period of prior
out-of-state use.
(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
102-4, eff. 4-27-21.)
 
    (35 ILCS 105/3-41)
    Sec. 3-41. Biodiesel. "Biodiesel" means a renewable diesel
fuel that is not a hydrocarbon fuel and that is derived from
biomass that is intended for use in diesel engines.
(Source: P.A. 93-17, eff. 6-11-03.)
 
    (35 ILCS 105/3-42.5 new)
    Sec. 3-42.5. Renewable diesel. "Renewable diesel" means a
diesel fuel that is a hydrocarbon fuel derived from biomass
meeting the requirements of the latest version of ASTM
standards D975 or D396. Fuels that have been co-processed are
not considered renewable diesel.
 
    Section 20-10. The Service Use Tax Act is amended by
changing Section 3-10 as follows:
 
    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
    Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
the selling price of tangible personal property transferred as
an incident to the sale of service, but, for the purpose of
computing this tax, in no event shall the selling price be less
than the cost price of the property to the serviceman.
    Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
    With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act applies to (i) 70% of the selling price
of property transferred as an incident to the sale of service
on or after January 1, 1990, and before July 1, 2003, (ii) 80%
of the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
July 1, 2017, and (iii) 100% of the selling price thereafter.
If, at any time, however, the tax under this Act on sales of
gasohol, as defined in the Use Tax Act, is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of gasohol made during that time.
    With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
December 31, 2023 but applies to 100% of the selling price
thereafter.
    With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the selling
price of property transferred as an incident to the sale of
service on or after July 1, 2003 and on or before December 31,
2018 and (ii) 100% of the proceeds of the selling price after
December 31, 2018 and before January 1, 2024. On and after
January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax
Act thereafter. If, at any time, however, the tax under this
Act on sales of biodiesel blends, as defined in the Use Tax
Act, with no less than 1% and no more than 10% biodiesel is
imposed at the rate of 1.25%, then the tax imposed by this Act
applies to 100% of the proceeds of sales of biodiesel blends
with no less than 1% and no more than 10% biodiesel made during
that time.
    With respect to 100% biodiesel, as defined in the Use Tax
Act, and biodiesel blends, as defined in the Use Tax Act, with
more than 10% but no more than 99% biodiesel, the tax imposed
by this Act does not apply to the proceeds of the selling price
of property transferred as an incident to the sale of service
on or after July 1, 2003 and on or before December 31, 2023 but
applies to 100% of the selling price thereafter. On and after
January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act.
    At the election of any registered serviceman 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 tax imposed by this Act shall be based on the
serviceman's cost price of the tangible personal property
transferred as an incident to the sale of those services.
    The tax shall be imposed at the rate of 1% on food prepared
for immediate consumption and transferred incident to a sale
of service subject to this Act or the Service Occupation Tax
Act by an entity licensed under the Hospital Licensing Act,
the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. The tax shall also be
imposed at the rate of 1% on food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption and is not otherwise included in this
paragraph) and prescription and nonprescription medicines,
drugs, medical appliances, products classified as Class III
medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics. For the
purposes of this Section, until September 1, 2009: the term
"soft drinks" means any complete, finished, ready-to-use,
non-alcoholic drink, whether carbonated or not, including but
not limited to soda water, cola, fruit juice, vegetable juice,
carbonated water, and all other preparations commonly known as
soft drinks of whatever kind or description that are contained
in any closed or sealed bottle, can, carton, or container,
regardless of size; but "soft drinks" does not include coffee,
tea, non-carbonated water, infant formula, milk or milk
products as defined in the Grade A Pasteurized Milk and Milk
Products Act, or drinks containing 50% or more natural fruit
or vegetable juice.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" do not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
    Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
label includes:
        (A) A "Drug Facts" panel; or
        (B) A statement of the "active ingredient(s)" with a
    list of those ingredients contained in the compound,
    substance or preparation.
    Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and
drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
    As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
    If the property that is acquired from a serviceman is
acquired outside Illinois and used outside Illinois before
being brought to Illinois for use here and is taxable under
this Act, the "selling price" on which the tax is computed
shall be reduced by an amount that represents a reasonable
allowance for depreciation for the period of prior
out-of-state use.
(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
    Section 20-15. The Service Occupation Tax Act is amended
by changing Section 3-10 as follows:
 
    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
    Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
the "selling price", as defined in Section 2 of the Service Use
Tax Act, of the tangible personal property. For the purpose of
computing this tax, in no event shall the "selling price" be
less than the cost price to the serviceman of the tangible
personal property transferred. The selling price of each item
of tangible personal property transferred as an incident of a
sale of service may be shown as a distinct and separate item on
the serviceman's billing to the service customer. If the
selling price is not so shown, the selling price of the
tangible personal property is deemed to be 50% of the
serviceman's entire billing to the service customer. When,
however, a serviceman contracts to design, develop, and
produce special order machinery or equipment, the tax imposed
by this Act shall be based on the serviceman's cost price of
the tangible personal property transferred incident to the
completion of the contract.
    Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
    With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act shall apply to (i) 70% of the cost
price of property transferred as an incident to the sale of
service on or after January 1, 1990, and before July 1, 2003,
(ii) 80% of the selling price of property transferred as an
incident to the sale of service on or after July 1, 2003 and on
or before July 1, 2017, and (iii) 100% of the cost price
thereafter. If, at any time, however, the tax under this Act on
sales of gasohol, as defined in the Use Tax Act, is imposed at
the rate of 1.25%, then the tax imposed by this Act applies to
100% of the proceeds of sales of gasohol made during that time.
    With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
December 31, 2023 but applies to 100% of the selling price
thereafter.
    With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the selling
price of property transferred as an incident to the sale of
service on or after July 1, 2003 and on or before December 31,
2018 and (ii) 100% of the proceeds of the selling price after
December 31, 2018 and before January 1, 2024. On and after
January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax
Act thereafter. If, at any time, however, the tax under this
Act on sales of biodiesel blends, as defined in the Use Tax
Act, with no less than 1% and no more than 10% biodiesel is
imposed at the rate of 1.25%, then the tax imposed by this Act
applies to 100% of the proceeds of sales of biodiesel blends
with no less than 1% and no more than 10% biodiesel made during
that time.
    With respect to 100% biodiesel, as defined in the Use Tax
Act, and biodiesel blends, as defined in the Use Tax Act, with
more than 10% but no more than 99% biodiesel material, the tax
imposed by this Act does not apply to the proceeds of the
selling price of property transferred as an incident to the
sale of service on or after July 1, 2003 and on or before
December 31, 2023 but applies to 100% of the selling price
thereafter. On and after January 1, 2024 and on or before
December 31, 2030, the taxation of biodiesel, renewable
diesel, and biodiesel blends shall be as provided in Section
3-5.1 of the Use Tax Act.
    At the election of any registered serviceman 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 tax imposed by this Act shall be based on the
serviceman's cost price of the tangible personal property
transferred incident to the sale of those services.
    The tax shall be imposed at the rate of 1% on food prepared
for immediate consumption and transferred incident to a sale
of service subject to this Act or the Service Occupation Tax
Act by an entity licensed under the Hospital Licensing Act,
the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. The tax shall also be
imposed at the rate of 1% on food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption and is not otherwise included in this
paragraph) and prescription and nonprescription medicines,
drugs, medical appliances, products classified as Class III
medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics. For the
purposes of this Section, until September 1, 2009: the term
"soft drinks" means any complete, finished, ready-to-use,
non-alcoholic drink, whether carbonated or not, including but
not limited to soda water, cola, fruit juice, vegetable juice,
carbonated water, and all other preparations commonly known as
soft drinks of whatever kind or description that are contained
in any closed or sealed can, carton, or container, regardless
of size; but "soft drinks" does not include coffee, tea,
non-carbonated water, infant formula, milk or milk products as
defined in the Grade A Pasteurized Milk and Milk Products Act,
or drinks containing 50% or more natural fruit or vegetable
juice.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" do not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
    Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
label includes:
        (A) A "Drug Facts" panel; or
        (B) A statement of the "active ingredient(s)" with a
    list of those ingredients contained in the compound,
    substance or preparation.
    Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and
drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
    As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
    Section 20-20. The Retailers' Occupation Tax Act is
amended by changing Section 2-10 as follows:
 
    (35 ILCS 120/2-10)
    Sec. 2-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
gross receipts from sales of tangible personal property made
in the course of business.
    Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
    Beginning on August 6, 2010 through August 15, 2010, with
respect to sales tax holiday items as defined in Section 2-8 of
this Act, the tax is imposed at the rate of 1.25%.
    Within 14 days after the effective date of this amendatory
Act of the 91st General Assembly, each retailer of motor fuel
and gasohol shall cause the following notice to be posted in a
prominently visible place on each retail dispensing device
that is used to dispense motor fuel or gasohol in the State of
Illinois: "As of July 1, 2000, the State of Illinois has
eliminated the State's share of sales tax on motor fuel and
gasohol through December 31, 2000. The price on this pump
should reflect the elimination of the tax." The notice shall
be printed in bold print on a sign that is no smaller than 4
inches by 8 inches. The sign shall be clearly visible to
customers. Any retailer who fails to post or maintain a
required sign through December 31, 2000 is guilty of a petty
offense for which the fine shall be $500 per day per each
retail premises where a violation occurs.
    With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act applies to (i) 70% of the proceeds of
sales made on or after January 1, 1990, and before July 1,
2003, (ii) 80% of the proceeds of sales made on or after July
1, 2003 and on or before July 1, 2017, and (iii) 100% of the
proceeds of sales made thereafter. If, at any time, however,
the tax under this Act on sales of gasohol, as defined in the
Use Tax Act, is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the proceeds of sales of
gasohol made during that time.
    With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the proceeds of sales made on or after July 1, 2003 and on
or before December 31, 2023 but applies to 100% of the proceeds
of sales made thereafter.
    With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the proceeds
of sales made on or after July 1, 2003 and on or before
December 31, 2018 and (ii) 100% of the proceeds of sales made
after December 31, 2018 and before January 1, 2024. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act
thereafter. If, at any time, however, the tax under this Act on
sales of biodiesel blends, as defined in the Use Tax Act, with
no less than 1% and no more than 10% biodiesel is imposed at
the rate of 1.25%, then the tax imposed by this Act applies to
100% of the proceeds of sales of biodiesel blends with no less
than 1% and no more than 10% biodiesel made during that time.
    With respect to 100% biodiesel, as defined in the Use Tax
Act, and biodiesel blends, as defined in the Use Tax Act, with
more than 10% but no more than 99% biodiesel, the tax imposed
by this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023 but
applies to 100% of the proceeds of sales made thereafter. On
and after January 1, 2024 and on or before December 31, 2030,
the taxation of biodiesel, renewable diesel, and biodiesel
blends shall be as provided in Section 3-5.1 of the Use Tax
Act.
    With respect to food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances, products classified as
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,
until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including but not limited to soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size; but
"soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" do not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
    Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
label includes:
        (A) A "Drug Facts" panel; or
        (B) A statement of the "active ingredient(s)" with a
    list of those ingredients contained in the compound,
    substance or preparation.
    Beginning on the effective date of this amendatory Act of
the 98th General Assembly, "prescription and nonprescription
medicines and drugs" includes medical cannabis purchased from
a registered dispensing organization under the Compassionate
Use of Medical Cannabis Program Act.
    As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
102-4, eff. 4-27-21.)
 
    Section 20-25. The Motor Fuel Tax Law is amended by adding
Section 3d as follows:
 
    (35 ILCS 505/3d new)
    Sec. 3d. Right to blend.
    (a) A distributor who is properly licensed and permitted
as a blender pursuant to this Act may blend petroleum-based
diesel fuel with biodiesel and sell the blended or unblended
product on any premises owned and operated by the distributor
for the purpose of supporting or facilitating the retail sale
of motor fuel.
    (b) A refiner or supplier of petroleum-based diesel fuel
or biodiesel shall not refuse to sell or transport to a
distributor who is properly licensed and permitted as a
blender pursuant to this Act any petroleum-based diesel fuel
or biodiesel based on the distributor's or dealer's intent to
use that product for blending.
 
ARTICLE 25. HOSPITALS

 
    Section 25-5. The Illinois Income Tax Act is amended by
changing Section 223 as follows:
 
    (35 ILCS 5/223)
    Sec. 223. Hospital credit.
    (a) For tax years ending on or after December 31, 2012 and
ending on or before December 31, 2027 December 31, 2022, a
taxpayer that is the owner of a hospital licensed under the
Hospital Licensing Act, but not including an organization that
is exempt from federal income taxes under the Internal Revenue
Code, is entitled to a credit against the taxes imposed under
subsections (a) and (b) of Section 201 of this Act in an amount
equal to the lesser of the amount of real property taxes paid
during the tax year on real property used for hospital
purposes during the prior tax year or the cost of free or
discounted services provided during the tax year pursuant to
the hospital's charitable financial assistance policy,
measured at cost.
    (b) If the taxpayer is a partnership or Subchapter S
corporation, the credit is allowed to the partners or
shareholders 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. A transfer of
this credit may be made by the taxpayer earning the credit
within one year after the credit is earned in accordance with
rules adopted by the Department. The Department shall
prescribe rules to enforce and administer provisions of this
Section. If the amount of the credit exceeds the tax liability
for the year, then the excess credit may be carried forward and
applied to the tax liability of the 5 taxable years following
the excess credit year. The credit shall be applied to the
earliest year for which there is a tax liability. If there are
credits from more than one tax year that are available to
offset a liability, the earlier credit shall be applied first.
In no event shall a credit under this Section reduce the
taxpayer's liability to less than zero.
(Source: P.A. 100-587, eff. 6-4-18.)
 
    Section 25-10. The Use Tax Act is amended by changing
Section 3-8 as follows:
 
    (35 ILCS 105/3-8)
    Sec. 3-8. Hospital exemption.
    (a) Tangible Until July 1, 2022, tangible personal
property sold to or used by a hospital owner that owns one or
more hospitals licensed under the Hospital Licensing Act or
operated under the University of Illinois Hospital Act, or a
hospital affiliate that is not already exempt under another
provision of this Act and meets the criteria for an exemption
under this Section, is exempt from taxation under this Act.
    (b) A hospital owner or hospital affiliate satisfies the
conditions for an exemption under this Section if the value of
qualified services or activities listed in subsection (c) of
this Section for the hospital year equals or exceeds the
relevant hospital entity's estimated property tax liability,
without regard to any property tax exemption granted under
Section 15-86 of the Property Tax Code, for the calendar year
in which exemption or renewal of exemption is sought. For
purposes of making the calculations required by this
subsection (b), if the relevant hospital entity is a hospital
owner that owns more than one hospital, the value of the
services or activities listed in subsection (c) shall be
calculated on the basis of only those services and activities
relating to the hospital that includes the subject property,
and the relevant hospital entity's estimated property tax
liability shall be calculated only with respect to the
properties comprising that hospital. In the case of a
multi-state hospital system or hospital affiliate, the value
of the services or activities listed in subsection (c) shall
be calculated on the basis of only those services and
activities that occur in Illinois and the relevant hospital
entity's estimated property tax liability shall be calculated
only with respect to its property located in Illinois.
    (c) The following services and activities shall be
considered for purposes of making the calculations required by
subsection (b):
        (1) Charity care. Free or discounted services provided
    pursuant to the relevant hospital entity's financial
    assistance policy, measured at cost, including discounts
    provided under the Hospital Uninsured Patient Discount
    Act.
        (2) Health services to low-income and underserved
    individuals. Other unreimbursed costs of the relevant
    hospital entity for providing without charge, paying for,
    or subsidizing goods, activities, or services for the
    purpose of addressing the health of low-income or
    underserved individuals. Those activities or services may
    include, but are not limited to: financial or in-kind
    support to affiliated or unaffiliated hospitals, hospital
    affiliates, community clinics, or programs that treat
    low-income or underserved individuals; paying for or
    subsidizing health care professionals who care for
    low-income or underserved individuals; providing or
    subsidizing outreach or educational services to low-income
    or underserved individuals for disease management and
    prevention; free or subsidized goods, supplies, or
    services needed by low-income or underserved individuals
    because of their medical condition; and prenatal or
    childbirth outreach to low-income or underserved persons.
        (3) Subsidy of State or local governments. Direct or
    indirect financial or in-kind subsidies of State or local
    governments by the relevant hospital entity that pay for
    or subsidize activities or programs related to health care
    for low-income or underserved individuals.
        (4) Support for State health care programs for
    low-income individuals. At the election of the hospital
    applicant for each applicable year, either (A) 10% of
    payments to the relevant hospital entity and any hospital
    affiliate designated by the relevant hospital entity
    (provided that such hospital affiliate's operations
    provide financial or operational support for or receive
    financial or operational support from the relevant
    hospital entity) under Medicaid or other means-tested
    programs, including, but not limited to, General
    Assistance, the Covering ALL KIDS Health Insurance Act,
    and the State Children's Health Insurance Program or (B)
    the amount of subsidy provided by the relevant hospital
    entity and any hospital affiliate designated by the
    relevant hospital entity (provided that such hospital
    affiliate's operations provide financial or operational
    support for or receive financial or operational support
    from the relevant hospital entity) to State or local
    government in treating Medicaid recipients and recipients
    of means-tested programs, including but not limited to
    General Assistance, the Covering ALL KIDS Health Insurance
    Act, and the State Children's Health Insurance Program.
    The amount of subsidy for purpose of this item (4) is
    calculated in the same manner as unreimbursed costs are
    calculated for Medicaid and other means-tested government
    programs in the Schedule H of IRS Form 990 in effect on the
    effective date of this amendatory Act of the 97th General
    Assembly.
        (5) Dual-eligible subsidy. The amount of subsidy
    provided to government by treating dual-eligible
    Medicare/Medicaid patients. The amount of subsidy for
    purposes of this item (5) is calculated by multiplying the
    relevant hospital entity's unreimbursed costs for
    Medicare, calculated in the same manner as determined in
    the Schedule H of IRS Form 990 in effect on the effective
    date of this amendatory Act of the 97th General Assembly,
    by the relevant hospital entity's ratio of dual-eligible
    patients to total Medicare patients.
        (6) Relief of the burden of government related to
    health care. Except to the extent otherwise taken into
    account in this subsection, the portion of unreimbursed
    costs of the relevant hospital entity attributable to
    providing, paying for, or subsidizing goods, activities,
    or services that relieve the burden of government related
    to health care for low-income individuals. Such activities
    or services shall include, but are not limited to,
    providing emergency, trauma, burn, neonatal, psychiatric,
    rehabilitation, or other special services; providing
    medical education; and conducting medical research or
    training of health care professionals. The portion of
    those unreimbursed costs attributable to benefiting
    low-income individuals shall be determined using the ratio
    calculated by adding the relevant hospital entity's costs
    attributable to charity care, Medicaid, other means-tested
    government programs, Medicare patients with disabilities
    under age 65, and dual-eligible Medicare/Medicaid patients
    and dividing that total by the relevant hospital entity's
    total costs. Such costs for the numerator and denominator
    shall be determined by multiplying gross charges by the
    cost to charge ratio taken from the hospital's most
    recently filed Medicare cost report (CMS 2252-10
    Worksheet, Part I). In the case of emergency services, the
    ratio shall be calculated using costs (gross charges
    multiplied by the cost to charge ratio taken from the
    hospital's most recently filed Medicare cost report (CMS
    2252-10 Worksheet, Part I)) of patients treated in the
    relevant hospital entity's emergency department.
        (7) Any other activity by the relevant hospital entity
    that the Department determines relieves the burden of
    government or addresses the health of low-income or
    underserved individuals.
    (d) The hospital applicant shall include information in
its exemption application establishing that it satisfies the
requirements of subsection (b). For purposes of making the
calculations required by subsection (b), the hospital
applicant may for each year elect to use either (1) the value
of the services or activities listed in subsection (e) for the
hospital year or (2) the average value of those services or
activities for the 3 fiscal years ending with the hospital
year. If the relevant hospital entity has been in operation
for less than 3 completed fiscal years, then the latter
calculation, if elected, shall be performed on a pro rata
basis.
    (e) For purposes of making the calculations required by
this Section:
        (1) particular services or activities eligible for
    consideration under any of the paragraphs (1) through (7)
    of subsection (c) may not be counted under more than one of
    those paragraphs; and
        (2) the amount of unreimbursed costs and the amount of
    subsidy shall not be reduced by restricted or unrestricted
    payments received by the relevant hospital entity as
    contributions deductible under Section 170(a) of the
    Internal Revenue Code.
    (f) (Blank).
    (g) Estimation of Exempt Property Tax Liability. The
estimated property tax liability used for the determination in
subsection (b) shall be calculated as follows:
        (1) "Estimated property tax liability" means the
    estimated dollar amount of property tax that would be
    owed, with respect to the exempt portion of each of the
    relevant hospital entity's properties that are already
    fully or partially exempt, or for which an exemption in
    whole or in part is currently being sought, and then
    aggregated as applicable, as if the exempt portion of
    those properties were subject to tax, calculated with
    respect to each such property by multiplying:
            (A) the lesser of (i) the actual assessed value,
        if any, of the portion of the property for which an
        exemption is sought or (ii) an estimated assessed
        value of the exempt portion of such property as
        determined in item (2) of this subsection (g), by
            (B) the applicable State equalization rate
        (yielding the equalized assessed value), by
            (C) the applicable tax rate.
        (2) The estimated assessed value of the exempt portion
    of the property equals the sum of (i) the estimated fair
    market value of buildings on the property, as determined
    in accordance with subparagraphs (A) and (B) of this item
    (2), multiplied by the applicable assessment factor, and
    (ii) the estimated assessed value of the land portion of
    the property, as determined in accordance with
    subparagraph (C).
            (A) The "estimated fair market value of buildings
        on the property" means the replacement value of any
        exempt portion of buildings on the property, minus
        depreciation, determined utilizing the cost
        replacement method whereby the exempt square footage
        of all such buildings is multiplied by the replacement
        cost per square foot for Class A Average building
        found in the most recent edition of the Marshall &
        Swift Valuation Services Manual, adjusted by any
        appropriate current cost and local multipliers.
            (B) Depreciation, for purposes of calculating the
        estimated fair market value of buildings on the
        property, is applied by utilizing a weighted mean life
        for the buildings based on original construction and
        assuming a 40-year life for hospital buildings and the
        applicable life for other types of buildings as
        specified in the American Hospital Association
        publication "Estimated Useful Lives of Depreciable
        Hospital Assets". In the case of hospital buildings,
        the remaining life is divided by 40 and this ratio is
        multiplied by the replacement cost of the buildings to
        obtain an estimated fair market value of buildings. If
        a hospital building is older than 35 years, a
        remaining life of 5 years for residual value is
        assumed; and if a building is less than 8 years old, a
        remaining life of 32 years is assumed.
            (C) The estimated assessed value of the land
        portion of the property shall be determined by
        multiplying (i) the per square foot average of the
        assessed values of three parcels of land (not
        including farm land, and excluding the assessed value
        of the improvements thereon) reasonably comparable to
        the property, by (ii) the number of square feet
        comprising the exempt portion of the property's land
        square footage.
        (3) The assessment factor, State equalization rate,
    and tax rate (including any special factors such as
    Enterprise Zones) used in calculating the estimated
    property tax liability shall be for the most recent year
    that is publicly available from the applicable chief
    county assessment officer or officers at least 90 days
    before the end of the hospital year.
        (4) The method utilized to calculate estimated
    property tax liability for purposes of this Section 15-86
    shall not be utilized for the actual valuation,
    assessment, or taxation of property pursuant to the
    Property Tax Code.
    (h) For the purpose of this Section, the following terms
shall have the meanings set forth below:
        (1) "Hospital" means any institution, place, building,
    buildings on a campus, or other health care facility
    located in Illinois that is licensed under the Hospital
    Licensing Act and has a hospital owner.
        (2) "Hospital owner" means a not-for-profit
    corporation that is the titleholder of a hospital, or the
    owner of the beneficial interest in an Illinois land trust
    that is the titleholder of a hospital.
        (3) "Hospital affiliate" means any corporation,
    partnership, limited partnership, joint venture, limited
    liability company, association or other organization,
    other than a hospital owner, that directly or indirectly
    controls, is controlled by, or is under common control
    with one or more hospital owners and that supports, is
    supported by, or acts in furtherance of the exempt health
    care purposes of at least one of those hospital owners'
    hospitals.
        (4) "Hospital system" means a hospital and one or more
    other hospitals or hospital affiliates related by common
    control or ownership.
        (5) "Control" relating to hospital owners, hospital
    affiliates, or hospital systems means possession, direct
    or indirect, of the power to direct or cause the direction
    of the management and policies of the entity, whether
    through ownership of assets, membership interest, other
    voting or governance rights, by contract or otherwise.
        (6) "Hospital applicant" means a hospital owner or
    hospital affiliate that files an application for an
    exemption or renewal of exemption under this Section.
        (7) "Relevant hospital entity" means (A) the hospital
    owner, in the case of a hospital applicant that is a
    hospital owner, and (B) at the election of a hospital
    applicant that is a hospital affiliate, either (i) the
    hospital affiliate or (ii) the hospital system to which
    the hospital applicant belongs, including any hospitals or
    hospital affiliates that are related by common control or
    ownership.
        (8) "Subject property" means property used for the
    calculation under subsection (b) of this Section.
        (9) "Hospital year" means the fiscal year of the
    relevant hospital entity, or the fiscal year of one of the
    hospital owners in the hospital system if the relevant
    hospital entity is a hospital system with members with
    different fiscal years, that ends in the year for which
    the exemption is sought.
    (i) It is the intent of the General Assembly that any
exemptions taken, granted, or renewed under this Section prior
to the effective date of this amendatory Act of the 100th
General Assembly are hereby validated.
    (j) It is the intent of the General Assembly that the
exemption under this Section applies on a continuous basis. If
this amendatory Act of the 102nd General Assembly takes effect
after July 1, 2022, any exemptions taken, granted, or renewed
under this Section on or after July 1, 2022 and prior to the
effective date of this amendatory Act of the 102nd General
Assembly are hereby validated.
    (k) This Section is exempt from the provisions of Section
3-90.
(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
    Section 25-15. The Service Use Tax Act is amended by
changing Section 3-8 as follows:
 
    (35 ILCS 110/3-8)
    Sec. 3-8. Hospital exemption.
    (a) Tangible Until July 1, 2022, tangible personal
property sold to or used by a hospital owner that owns one or
more hospitals licensed under the Hospital Licensing Act or
operated under the University of Illinois Hospital Act, or a
hospital affiliate that is not already exempt under another
provision of this Act and meets the criteria for an exemption
under this Section, is exempt from taxation under this Act.
    (b) A hospital owner or hospital affiliate satisfies the
conditions for an exemption under this Section if the value of
qualified services or activities listed in subsection (c) of
this Section for the hospital year equals or exceeds the
relevant hospital entity's estimated property tax liability,
without regard to any property tax exemption granted under
Section 15-86 of the Property Tax Code, for the calendar year
in which exemption or renewal of exemption is sought. For
purposes of making the calculations required by this
subsection (b), if the relevant hospital entity is a hospital
owner that owns more than one hospital, the value of the
services or activities listed in subsection (c) shall be
calculated on the basis of only those services and activities
relating to the hospital that includes the subject property,
and the relevant hospital entity's estimated property tax
liability shall be calculated only with respect to the
properties comprising that hospital. In the case of a
multi-state hospital system or hospital affiliate, the value
of the services or activities listed in subsection (c) shall
be calculated on the basis of only those services and
activities that occur in Illinois and the relevant hospital
entity's estimated property tax liability shall be calculated
only with respect to its property located in Illinois.
    (c) The following services and activities shall be
considered for purposes of making the calculations required by
subsection (b):
        (1) Charity care. Free or discounted services provided
    pursuant to the relevant hospital entity's financial
    assistance policy, measured at cost, including discounts
    provided under the Hospital Uninsured Patient Discount
    Act.
        (2) Health services to low-income and underserved
    individuals. Other unreimbursed costs of the relevant
    hospital entity for providing without charge, paying for,
    or subsidizing goods, activities, or services for the
    purpose of addressing the health of low-income or
    underserved individuals. Those activities or services may
    include, but are not limited to: financial or in-kind
    support to affiliated or unaffiliated hospitals, hospital
    affiliates, community clinics, or programs that treat
    low-income or underserved individuals; paying for or
    subsidizing health care professionals who care for
    low-income or underserved individuals; providing or
    subsidizing outreach or educational services to low-income
    or underserved individuals for disease management and
    prevention; free or subsidized goods, supplies, or
    services needed by low-income or underserved individuals
    because of their medical condition; and prenatal or
    childbirth outreach to low-income or underserved persons.
        (3) Subsidy of State or local governments. Direct or
    indirect financial or in-kind subsidies of State or local
    governments by the relevant hospital entity that pay for
    or subsidize activities or programs related to health care
    for low-income or underserved individuals.
        (4) Support for State health care programs for
    low-income individuals. At the election of the hospital
    applicant for each applicable year, either (A) 10% of
    payments to the relevant hospital entity and any hospital
    affiliate designated by the relevant hospital entity
    (provided that such hospital affiliate's operations
    provide financial or operational support for or receive
    financial or operational support from the relevant
    hospital entity) under Medicaid or other means-tested
    programs, including, but not limited to, General
    Assistance, the Covering ALL KIDS Health Insurance Act,
    and the State Children's Health Insurance Program or (B)
    the amount of subsidy provided by the relevant hospital
    entity and any hospital affiliate designated by the
    relevant hospital entity (provided that such hospital
    affiliate's operations provide financial or operational
    support for or receive financial or operational support
    from the relevant hospital entity) to State or local
    government in treating Medicaid recipients and recipients
    of means-tested programs, including but not limited to
    General Assistance, the Covering ALL KIDS Health Insurance
    Act, and the State Children's Health Insurance Program.
    The amount of subsidy for purposes of this item (4) is
    calculated in the same manner as unreimbursed costs are
    calculated for Medicaid and other means-tested government
    programs in the Schedule H of IRS Form 990 in effect on the
    effective date of this amendatory Act of the 97th General
    Assembly.
        (5) Dual-eligible subsidy. The amount of subsidy
    provided to government by treating dual-eligible
    Medicare/Medicaid patients. The amount of subsidy for
    purposes of this item (5) is calculated by multiplying the
    relevant hospital entity's unreimbursed costs for
    Medicare, calculated in the same manner as determined in
    the Schedule H of IRS Form 990 in effect on the effective
    date of this amendatory Act of the 97th General Assembly,
    by the relevant hospital entity's ratio of dual-eligible
    patients to total Medicare patients.
        (6) Relief of the burden of government related to
    health care. Except to the extent otherwise taken into
    account in this subsection, the portion of unreimbursed
    costs of the relevant hospital entity attributable to
    providing, paying for, or subsidizing goods, activities,
    or services that relieve the burden of government related
    to health care for low-income individuals. Such activities
    or services shall include, but are not limited to,
    providing emergency, trauma, burn, neonatal, psychiatric,
    rehabilitation, or other special services; providing
    medical education; and conducting medical research or
    training of health care professionals. The portion of
    those unreimbursed costs attributable to benefiting
    low-income individuals shall be determined using the ratio
    calculated by adding the relevant hospital entity's costs
    attributable to charity care, Medicaid, other means-tested
    government programs, Medicare patients with disabilities
    under age 65, and dual-eligible Medicare/Medicaid patients
    and dividing that total by the relevant hospital entity's
    total costs. Such costs for the numerator and denominator
    shall be determined by multiplying gross charges by the
    cost to charge ratio taken from the hospital's most
    recently filed Medicare cost report (CMS 2252-10
    Worksheet, Part I). In the case of emergency services, the
    ratio shall be calculated using costs (gross charges
    multiplied by the cost to charge ratio taken from the
    hospital's most recently filed Medicare cost report (CMS
    2252-10 Worksheet, Part I)) of patients treated in the
    relevant hospital entity's emergency department.
        (7) Any other activity by the relevant hospital entity
    that the Department determines relieves the burden of
    government or addresses the health of low-income or
    underserved individuals.
    (d) The hospital applicant shall include information in
its exemption application establishing that it satisfies the
requirements of subsection (b). For purposes of making the
calculations required by subsection (b), the hospital
applicant may for each year elect to use either (1) the value
of the services or activities listed in subsection (e) for the
hospital year or (2) the average value of those services or
activities for the 3 fiscal years ending with the hospital
year. If the relevant hospital entity has been in operation
for less than 3 completed fiscal years, then the latter
calculation, if elected, shall be performed on a pro rata
basis.
    (e) For purposes of making the calculations required by
this Section:
        (1) particular services or activities eligible for
    consideration under any of the paragraphs (1) through (7)
    of subsection (c) may not be counted under more than one of
    those paragraphs; and
        (2) the amount of unreimbursed costs and the amount of
    subsidy shall not be reduced by restricted or unrestricted
    payments received by the relevant hospital entity as
    contributions deductible under Section 170(a) of the
    Internal Revenue Code.
    (f) (Blank).
    (g) Estimation of Exempt Property Tax Liability. The
estimated property tax liability used for the determination in
subsection (b) shall be calculated as follows:
        (1) "Estimated property tax liability" means the
    estimated dollar amount of property tax that would be
    owed, with respect to the exempt portion of each of the
    relevant hospital entity's properties that are already
    fully or partially exempt, or for which an exemption in
    whole or in part is currently being sought, and then
    aggregated as applicable, as if the exempt portion of
    those properties were subject to tax, calculated with
    respect to each such property by multiplying:
            (A) the lesser of (i) the actual assessed value,
        if any, of the portion of the property for which an
        exemption is sought or (ii) an estimated assessed
        value of the exempt portion of such property as
        determined in item (2) of this subsection (g), by
            (B) the applicable State equalization rate
        (yielding the equalized assessed value), by
            (C) the applicable tax rate.
        (2) The estimated assessed value of the exempt portion
    of the property equals the sum of (i) the estimated fair
    market value of buildings on the property, as determined
    in accordance with subparagraphs (A) and (B) of this item
    (2), multiplied by the applicable assessment factor, and
    (ii) the estimated assessed value of the land portion of
    the property, as determined in accordance with
    subparagraph (C).
            (A) The "estimated fair market value of buildings
        on the property" means the replacement value of any
        exempt portion of buildings on the property, minus
        depreciation, determined utilizing the cost
        replacement method whereby the exempt square footage
        of all such buildings is multiplied by the replacement
        cost per square foot for Class A Average building
        found in the most recent edition of the Marshall &
        Swift Valuation Services Manual, adjusted by any
        appropriate current cost and local multipliers.
            (B) Depreciation, for purposes of calculating the
        estimated fair market value of buildings on the
        property, is applied by utilizing a weighted mean life
        for the buildings based on original construction and
        assuming a 40-year life for hospital buildings and the
        applicable life for other types of buildings as
        specified in the American Hospital Association
        publication "Estimated Useful Lives of Depreciable
        Hospital Assets". In the case of hospital buildings,
        the remaining life is divided by 40 and this ratio is
        multiplied by the replacement cost of the buildings to
        obtain an estimated fair market value of buildings. If
        a hospital building is older than 35 years, a
        remaining life of 5 years for residual value is
        assumed; and if a building is less than 8 years old, a
        remaining life of 32 years is assumed.
            (C) The estimated assessed value of the land
        portion of the property shall be determined by
        multiplying (i) the per square foot average of the
        assessed values of three parcels of land (not
        including farm land, and excluding the assessed value
        of the improvements thereon) reasonably comparable to
        the property, by (ii) the number of square feet
        comprising the exempt portion of the property's land
        square footage.
        (3) The assessment factor, State equalization rate,
    and tax rate (including any special factors such as
    Enterprise Zones) used in calculating the estimated
    property tax liability shall be for the most recent year
    that is publicly available from the applicable chief
    county assessment officer or officers at least 90 days
    before the end of the hospital year.
        (4) The method utilized to calculate estimated
    property tax liability for purposes of this Section 15-86
    shall not be utilized for the actual valuation,
    assessment, or taxation of property pursuant to the
    Property Tax Code.
    (h) For the purpose of this Section, the following terms
shall have the meanings set forth below:
        (1) "Hospital" means any institution, place, building,
    buildings on a campus, or other health care facility
    located in Illinois that is licensed under the Hospital
    Licensing Act and has a hospital owner.
        (2) "Hospital owner" means a not-for-profit
    corporation that is the titleholder of a hospital, or the
    owner of the beneficial interest in an Illinois land trust
    that is the titleholder of a hospital.
        (3) "Hospital affiliate" means any corporation,
    partnership, limited partnership, joint venture, limited
    liability company, association or other organization,
    other than a hospital owner, that directly or indirectly
    controls, is controlled by, or is under common control
    with one or more hospital owners and that supports, is
    supported by, or acts in furtherance of the exempt health
    care purposes of at least one of those hospital owners'
    hospitals.
        (4) "Hospital system" means a hospital and one or more
    other hospitals or hospital affiliates related by common
    control or ownership.
        (5) "Control" relating to hospital owners, hospital
    affiliates, or hospital systems means possession, direct
    or indirect, of the power to direct or cause the direction
    of the management and policies of the entity, whether
    through ownership of assets, membership interest, other
    voting or governance rights, by contract or otherwise.
        (6) "Hospital applicant" means a hospital owner or
    hospital affiliate that files an application for an
    exemption or renewal of exemption under this Section.
        (7) "Relevant hospital entity" means (A) the hospital
    owner, in the case of a hospital applicant that is a
    hospital owner, and (B) at the election of a hospital
    applicant that is a hospital affiliate, either (i) the
    hospital affiliate or (ii) the hospital system to which
    the hospital applicant belongs, including any hospitals or
    hospital affiliates that are related by common control or
    ownership.
        (8) "Subject property" means property used for the
    calculation under subsection (b) of this Section.
        (9) "Hospital year" means the fiscal year of the
    relevant hospital entity, or the fiscal year of one of the
    hospital owners in the hospital system if the relevant
    hospital entity is a hospital system with members with
    different fiscal years, that ends in the year for which
    the exemption is sought.
    (i) It is the intent of the General Assembly that any
exemptions taken, granted, or renewed under this Section prior
to the effective date of this amendatory Act of the 100th
General Assembly are hereby validated.
    (j) It is the intent of the General Assembly that the
exemption under this Section applies on a continuous basis. If
this amendatory Act of the 102nd General Assembly takes effect
after July 1, 2022, any exemptions taken, granted, or renewed
under this Section on or after July 1, 2022 and prior to the
effective date of this amendatory Act of the 102nd General
Assembly are hereby validated.
    (k) This Section is exempt from the provisions of Section
3-75.
(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
    Section 25-20. The Service Occupation Tax Act is amended
by changing Section 3-8 as follows:
 
    (35 ILCS 115/3-8)
    Sec. 3-8. Hospital exemption.
    (a) Tangible Until July 1, 2022, tangible personal
property sold to or used by a hospital owner that owns one or
more hospitals licensed under the Hospital Licensing Act or
operated under the University of Illinois Hospital Act, or a
hospital affiliate that is not already exempt under another
provision of this Act and meets the criteria for an exemption
under this Section, is exempt from taxation under this Act.
    (b) A hospital owner or hospital affiliate satisfies the
conditions for an exemption under this Section if the value of
qualified services or activities listed in subsection (c) of
this Section for the hospital year equals or exceeds the
relevant hospital entity's estimated property tax liability,
without regard to any property tax exemption granted under
Section 15-86 of the Property Tax Code, for the calendar year
in which exemption or renewal of exemption is sought. For
purposes of making the calculations required by this
subsection (b), if the relevant hospital entity is a hospital
owner that owns more than one hospital, the value of the
services or activities listed in subsection (c) shall be
calculated on the basis of only those services and activities
relating to the hospital that includes the subject property,
and the relevant hospital entity's estimated property tax
liability shall be calculated only with respect to the
properties comprising that hospital. In the case of a
multi-state hospital system or hospital affiliate, the value
of the services or activities listed in subsection (c) shall
be calculated on the basis of only those services and
activities that occur in Illinois and the relevant hospital
entity's estimated property tax liability shall be calculated
only with respect to its property located in Illinois.
    (c) The following services and activities shall be
considered for purposes of making the calculations required by
subsection (b):
        (1) Charity care. Free or discounted services provided
    pursuant to the relevant hospital entity's financial
    assistance policy, measured at cost, including discounts
    provided under the Hospital Uninsured Patient Discount
    Act.
        (2) Health services to low-income and underserved
    individuals. Other unreimbursed costs of the relevant
    hospital entity for providing without charge, paying for,
    or subsidizing goods, activities, or services for the
    purpose of addressing the health of low-income or
    underserved individuals. Those activities or services may
    include, but are not limited to: financial or in-kind
    support to affiliated or unaffiliated hospitals, hospital
    affiliates, community clinics, or programs that treat
    low-income or underserved individuals; paying for or
    subsidizing health care professionals who care for
    low-income or underserved individuals; providing or
    subsidizing outreach or educational services to low-income
    or underserved individuals for disease management and
    prevention; free or subsidized goods, supplies, or
    services needed by low-income or underserved individuals
    because of their medical condition; and prenatal or
    childbirth outreach to low-income or underserved persons.
        (3) Subsidy of State or local governments. Direct or
    indirect financial or in-kind subsidies of State or local
    governments by the relevant hospital entity that pay for
    or subsidize activities or programs related to health care
    for low-income or underserved individuals.
        (4) Support for State health care programs for
    low-income individuals. At the election of the hospital
    applicant for each applicable year, either (A) 10% of
    payments to the relevant hospital entity and any hospital
    affiliate designated by the relevant hospital entity
    (provided that such hospital affiliate's operations
    provide financial or operational support for or receive
    financial or operational support from the relevant
    hospital entity) under Medicaid or other means-tested
    programs, including, but not limited to, General
    Assistance, the Covering ALL KIDS Health Insurance Act,
    and the State Children's Health Insurance Program or (B)
    the amount of subsidy provided by the relevant hospital
    entity and any hospital affiliate designated by the
    relevant hospital entity (provided that such hospital
    affiliate's operations provide financial or operational
    support for or receive financial or operational support
    from the relevant hospital entity) to State or local
    government in treating Medicaid recipients and recipients
    of means-tested programs, including but not limited to
    General Assistance, the Covering ALL KIDS Health Insurance
    Act, and the State Children's Health Insurance Program.
    The amount of subsidy for purposes of this item (4) is
    calculated in the same manner as unreimbursed costs are
    calculated for Medicaid and other means-tested government
    programs in the Schedule H of IRS Form 990 in effect on the
    effective date of this amendatory Act of the 97th General
    Assembly.
        (5) Dual-eligible subsidy. The amount of subsidy
    provided to government by treating dual-eligible
    Medicare/Medicaid patients. The amount of subsidy for
    purposes of this item (5) is calculated by multiplying the
    relevant hospital entity's unreimbursed costs for
    Medicare, calculated in the same manner as determined in
    the Schedule H of IRS Form 990 in effect on the effective
    date of this amendatory Act of the 97th General Assembly,
    by the relevant hospital entity's ratio of dual-eligible
    patients to total Medicare patients.
        (6) Relief of the burden of government related to
    health care. Except to the extent otherwise taken into
    account in this subsection, the portion of unreimbursed
    costs of the relevant hospital entity attributable to
    providing, paying for, or subsidizing goods, activities,
    or services that relieve the burden of government related
    to health care for low-income individuals. Such activities
    or services shall include, but are not limited to,
    providing emergency, trauma, burn, neonatal, psychiatric,
    rehabilitation, or other special services; providing
    medical education; and conducting medical research or
    training of health care professionals. The portion of
    those unreimbursed costs attributable to benefiting
    low-income individuals shall be determined using the ratio
    calculated by adding the relevant hospital entity's costs
    attributable to charity care, Medicaid, other means-tested
    government programs, Medicare patients with disabilities
    under age 65, and dual-eligible Medicare/Medicaid patients
    and dividing that total by the relevant hospital entity's
    total costs. Such costs for the numerator and denominator
    shall be determined by multiplying gross charges by the
    cost to charge ratio taken from the hospital's most
    recently filed Medicare cost report (CMS 2252-10
    Worksheet, Part I). In the case of emergency services, the
    ratio shall be calculated using costs (gross charges
    multiplied by the cost to charge ratio taken from the
    hospital's most recently filed Medicare cost report (CMS
    2252-10 Worksheet, Part I)) of patients treated in the
    relevant hospital entity's emergency department.
        (7) Any other activity by the relevant hospital entity
    that the Department determines relieves the burden of
    government or addresses the health of low-income or
    underserved individuals.
    (d) The hospital applicant shall include information in
its exemption application establishing that it satisfies the
requirements of subsection (b). For purposes of making the
calculations required by subsection (b), the hospital
applicant may for each year elect to use either (1) the value
of the services or activities listed in subsection (e) for the
hospital year or (2) the average value of those services or
activities for the 3 fiscal years ending with the hospital
year. If the relevant hospital entity has been in operation
for less than 3 completed fiscal years, then the latter
calculation, if elected, shall be performed on a pro rata
basis.
    (e) For purposes of making the calculations required by
this Section:
        (1) particular services or activities eligible for
    consideration under any of the paragraphs (1) through (7)
    of subsection (c) may not be counted under more than one of
    those paragraphs; and
        (2) the amount of unreimbursed costs and the amount of
    subsidy shall not be reduced by restricted or unrestricted
    payments received by the relevant hospital entity as
    contributions deductible under Section 170(a) of the
    Internal Revenue Code.
    (f) (Blank).
    (g) Estimation of Exempt Property Tax Liability. The
estimated property tax liability used for the determination in
subsection (b) shall be calculated as follows:
        (1) "Estimated property tax liability" means the
    estimated dollar amount of property tax that would be
    owed, with respect to the exempt portion of each of the
    relevant hospital entity's properties that are already
    fully or partially exempt, or for which an exemption in
    whole or in part is currently being sought, and then
    aggregated as applicable, as if the exempt portion of
    those properties were subject to tax, calculated with
    respect to each such property by multiplying:
            (A) the lesser of (i) the actual assessed value,
        if any, of the portion of the property for which an
        exemption is sought or (ii) an estimated assessed
        value of the exempt portion of such property as
        determined in item (2) of this subsection (g), by
            (B) the applicable State equalization rate
        (yielding the equalized assessed value), by
            (C) the applicable tax rate.
        (2) The estimated assessed value of the exempt portion
    of the property equals the sum of (i) the estimated fair
    market value of buildings on the property, as determined
    in accordance with subparagraphs (A) and (B) of this item
    (2), multiplied by the applicable assessment factor, and
    (ii) the estimated assessed value of the land portion of
    the property, as determined in accordance with
    subparagraph (C).
            (A) The "estimated fair market value of buildings
        on the property" means the replacement value of any
        exempt portion of buildings on the property, minus
        depreciation, determined utilizing the cost
        replacement method whereby the exempt square footage
        of all such buildings is multiplied by the replacement
        cost per square foot for Class A Average building
        found in the most recent edition of the Marshall &
        Swift Valuation Services Manual, adjusted by any
        appropriate current cost and local multipliers.
            (B) Depreciation, for purposes of calculating the
        estimated fair market value of buildings on the
        property, is applied by utilizing a weighted mean life
        for the buildings based on original construction and
        assuming a 40-year life for hospital buildings and the
        applicable life for other types of buildings as
        specified in the American Hospital Association
        publication "Estimated Useful Lives of Depreciable
        Hospital Assets". In the case of hospital buildings,
        the remaining life is divided by 40 and this ratio is
        multiplied by the replacement cost of the buildings to
        obtain an estimated fair market value of buildings. If
        a hospital building is older than 35 years, a
        remaining life of 5 years for residual value is
        assumed; and if a building is less than 8 years old, a
        remaining life of 32 years is assumed.
            (C) The estimated assessed value of the land
        portion of the property shall be determined by
        multiplying (i) the per square foot average of the
        assessed values of three parcels of land (not
        including farm land, and excluding the assessed value
        of the improvements thereon) reasonably comparable to
        the property, by (ii) the number of square feet
        comprising the exempt portion of the property's land
        square footage.
        (3) The assessment factor, State equalization rate,
    and tax rate (including any special factors such as
    Enterprise Zones) used in calculating the estimated
    property tax liability shall be for the most recent year
    that is publicly available from the applicable chief
    county assessment officer or officers at least 90 days
    before the end of the hospital year.
        (4) The method utilized to calculate estimated
    property tax liability for purposes of this Section 15-86
    shall not be utilized for the actual valuation,
    assessment, or taxation of property pursuant to the
    Property Tax Code.
    (h) For the purpose of this Section, the following terms
shall have the meanings set forth below:
        (1) "Hospital" means any institution, place, building,
    buildings on a campus, or other health care facility
    located in Illinois that is licensed under the Hospital
    Licensing Act and has a hospital owner.
        (2) "Hospital owner" means a not-for-profit
    corporation that is the titleholder of a hospital, or the
    owner of the beneficial interest in an Illinois land trust
    that is the titleholder of a hospital.
        (3) "Hospital affiliate" means any corporation,
    partnership, limited partnership, joint venture, limited
    liability company, association or other organization,
    other than a hospital owner, that directly or indirectly
    controls, is controlled by, or is under common control
    with one or more hospital owners and that supports, is
    supported by, or acts in furtherance of the exempt health
    care purposes of at least one of those hospital owners'
    hospitals.
        (4) "Hospital system" means a hospital and one or more
    other hospitals or hospital affiliates related by common
    control or ownership.
        (5) "Control" relating to hospital owners, hospital
    affiliates, or hospital systems means possession, direct
    or indirect, of the power to direct or cause the direction
    of the management and policies of the entity, whether
    through ownership of assets, membership interest, other
    voting or governance rights, by contract or otherwise.
        (6) "Hospital applicant" means a hospital owner or
    hospital affiliate that files an application for an
    exemption or renewal of exemption under this Section.
        (7) "Relevant hospital entity" means (A) the hospital
    owner, in the case of a hospital applicant that is a
    hospital owner, and (B) at the election of a hospital
    applicant that is a hospital affiliate, either (i) the
    hospital affiliate or (ii) the hospital system to which
    the hospital applicant belongs, including any hospitals or
    hospital affiliates that are related by common control or
    ownership.
        (8) "Subject property" means property used for the
    calculation under subsection (b) of this Section.
        (9) "Hospital year" means the fiscal year of the
    relevant hospital entity, or the fiscal year of one of the
    hospital owners in the hospital system if the relevant
    hospital entity is a hospital system with members with
    different fiscal years, that ends in the year for which
    the exemption is sought.
    (i) It is the intent of the General Assembly that any
exemptions taken, granted, or renewed under this Section prior
to the effective date of this amendatory Act of the 100th
General Assembly are hereby validated.
    (j) It is the intent of the General Assembly that the
exemption under this Section applies on a continuous basis. If
this amendatory Act of the 102nd General Assembly takes effect
after July 1, 2022, any exemptions taken, granted, or renewed
under this Section on or after July 1, 2022 and prior to the
effective date of this amendatory Act of the 102nd General
Assembly are hereby validated.
    (k) This Section is exempt from the provisions of Section
3-55.
(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
    Section 25-25. The Retailers' Occupation Tax Act is
amended by changing Section 2-9 as follows:
 
    (35 ILCS 120/2-9)
    Sec. 2-9. Hospital exemption.
    (a) Tangible Until July 1, 2022, tangible personal
property sold to or used by a hospital owner that owns one or
more hospitals licensed under the Hospital Licensing Act or
operated under the University of Illinois Hospital Act, or a
hospital affiliate that is not already exempt under another
provision of this Act and meets the criteria for an exemption
under this Section, is exempt from taxation under this Act.
    (b) A hospital owner or hospital affiliate satisfies the
conditions for an exemption under this Section if the value of
qualified services or activities listed in subsection (c) of
this Section for the hospital year equals or exceeds the
relevant hospital entity's estimated property tax liability,
without regard to any property tax exemption granted under
Section 15-86 of the Property Tax Code, for the calendar year
in which exemption or renewal of exemption is sought. For
purposes of making the calculations required by this
subsection (b), if the relevant hospital entity is a hospital
owner that owns more than one hospital, the value of the
services or activities listed in subsection (c) shall be
calculated on the basis of only those services and activities
relating to the hospital that includes the subject property,
and the relevant hospital entity's estimated property tax
liability shall be calculated only with respect to the
properties comprising that hospital. In the case of a
multi-state hospital system or hospital affiliate, the value
of the services or activities listed in subsection (c) shall
be calculated on the basis of only those services and
activities that occur in Illinois and the relevant hospital
entity's estimated property tax liability shall be calculated
only with respect to its property located in Illinois.
    (c) The following services and activities shall be
considered for purposes of making the calculations required by
subsection (b):
        (1) Charity care. Free or discounted services provided
    pursuant to the relevant hospital entity's financial
    assistance policy, measured at cost, including discounts
    provided under the Hospital Uninsured Patient Discount
    Act.
        (2) Health services to low-income and underserved
    individuals. Other unreimbursed costs of the relevant
    hospital entity for providing without charge, paying for,
    or subsidizing goods, activities, or services for the
    purpose of addressing the health of low-income or
    underserved individuals. Those activities or services may
    include, but are not limited to: financial or in-kind
    support to affiliated or unaffiliated hospitals, hospital
    affiliates, community clinics, or programs that treat
    low-income or underserved individuals; paying for or
    subsidizing health care professionals who care for
    low-income or underserved individuals; providing or
    subsidizing outreach or educational services to low-income
    or underserved individuals for disease management and
    prevention; free or subsidized goods, supplies, or
    services needed by low-income or underserved individuals
    because of their medical condition; and prenatal or
    childbirth outreach to low-income or underserved persons.
        (3) Subsidy of State or local governments. Direct or
    indirect financial or in-kind subsidies of State or local
    governments by the relevant hospital entity that pay for
    or subsidize activities or programs related to health care
    for low-income or underserved individuals.
        (4) Support for State health care programs for
    low-income individuals. At the election of the hospital
    applicant for each applicable year, either (A) 10% of
    payments to the relevant hospital entity and any hospital
    affiliate designated by the relevant hospital entity
    (provided that such hospital affiliate's operations
    provide financial or operational support for or receive
    financial or operational support from the relevant
    hospital entity) under Medicaid or other means-tested
    programs, including, but not limited to, General
    Assistance, the Covering ALL KIDS Health Insurance Act,
    and the State Children's Health Insurance Program or (B)
    the amount of subsidy provided by the relevant hospital
    entity and any hospital affiliate designated by the
    relevant hospital entity (provided that such hospital
    affiliate's operations provide financial or operational
    support for or receive financial or operational support
    from the relevant hospital entity) to State or local
    government in treating Medicaid recipients and recipients
    of means-tested programs, including but not limited to
    General Assistance, the Covering ALL KIDS Health Insurance
    Act, and the State Children's Health Insurance Program.
    The amount of subsidy for purposes of this item (4) is
    calculated in the same manner as unreimbursed costs are
    calculated for Medicaid and other means-tested government
    programs in the Schedule H of IRS Form 990 in effect on the
    effective date of this amendatory Act of the 97th General
    Assembly.
        (5) Dual-eligible subsidy. The amount of subsidy
    provided to government by treating dual-eligible
    Medicare/Medicaid patients. The amount of subsidy for
    purposes of this item (5) is calculated by multiplying the
    relevant hospital entity's unreimbursed costs for
    Medicare, calculated in the same manner as determined in
    the Schedule H of IRS Form 990 in effect on the effective
    date of this amendatory Act of the 97th General Assembly,
    by the relevant hospital entity's ratio of dual-eligible
    patients to total Medicare patients.
        (6) Relief of the burden of government related to
    health care. Except to the extent otherwise taken into
    account in this subsection, the portion of unreimbursed
    costs of the relevant hospital entity attributable to
    providing, paying for, or subsidizing goods, activities,
    or services that relieve the burden of government related
    to health care for low-income individuals. Such activities
    or services shall include, but are not limited to,
    providing emergency, trauma, burn, neonatal, psychiatric,
    rehabilitation, or other special services; providing
    medical education; and conducting medical research or
    training of health care professionals. The portion of
    those unreimbursed costs attributable to benefiting
    low-income individuals shall be determined using the ratio
    calculated by adding the relevant hospital entity's costs
    attributable to charity care, Medicaid, other means-tested
    government programs, Medicare patients with disabilities
    under age 65, and dual-eligible Medicare/Medicaid patients
    and dividing that total by the relevant hospital entity's
    total costs. Such costs for the numerator and denominator
    shall be determined by multiplying gross charges by the
    cost to charge ratio taken from the hospital's most
    recently filed Medicare cost report (CMS 2252-10
    Worksheet, Part I). In the case of emergency services, the
    ratio shall be calculated using costs (gross charges
    multiplied by the cost to charge ratio taken from the
    hospital's most recently filed Medicare cost report (CMS
    2252-10 Worksheet, Part I)) of patients treated in the
    relevant hospital entity's emergency department.
        (7) Any other activity by the relevant hospital entity
    that the Department determines relieves the burden of
    government or addresses the health of low-income or
    underserved individuals.
    (d) The hospital applicant shall include information in
its exemption application establishing that it satisfies the
requirements of subsection (b). For purposes of making the
calculations required by subsection (b), the hospital
applicant may for each year elect to use either (1) the value
of the services or activities listed in subsection (e) for the
hospital year or (2) the average value of those services or
activities for the 3 fiscal years ending with the hospital
year. If the relevant hospital entity has been in operation
for less than 3 completed fiscal years, then the latter
calculation, if elected, shall be performed on a pro rata
basis.
    (e) For purposes of making the calculations required by
this Section:
        (1) particular services or activities eligible for
    consideration under any of the paragraphs (1) through (7)
    of subsection (c) may not be counted under more than one of
    those paragraphs; and
        (2) the amount of unreimbursed costs and the amount of
    subsidy shall not be reduced by restricted or unrestricted
    payments received by the relevant hospital entity as
    contributions deductible under Section 170(a) of the
    Internal Revenue Code.
    (f) (Blank).
    (g) Estimation of Exempt Property Tax Liability. The
estimated property tax liability used for the determination in
subsection (b) shall be calculated as follows:
        (1) "Estimated property tax liability" means the
    estimated dollar amount of property tax that would be
    owed, with respect to the exempt portion of each of the
    relevant hospital entity's properties that are already
    fully or partially exempt, or for which an exemption in
    whole or in part is currently being sought, and then
    aggregated as applicable, as if the exempt portion of
    those properties were subject to tax, calculated with
    respect to each such property by multiplying:
            (A) the lesser of (i) the actual assessed value,
        if any, of the portion of the property for which an
        exemption is sought or (ii) an estimated assessed
        value of the exempt portion of such property as
        determined in item (2) of this subsection (g), by
            (B) the applicable State equalization rate
        (yielding the equalized assessed value), by
            (C) the applicable tax rate.
        (2) The estimated assessed value of the exempt portion
    of the property equals the sum of (i) the estimated fair
    market value of buildings on the property, as determined
    in accordance with subparagraphs (A) and (B) of this item
    (2), multiplied by the applicable assessment factor, and
    (ii) the estimated assessed value of the land portion of
    the property, as determined in accordance with
    subparagraph (C).
            (A) The "estimated fair market value of buildings
        on the property" means the replacement value of any
        exempt portion of buildings on the property, minus
        depreciation, determined utilizing the cost
        replacement method whereby the exempt square footage
        of all such buildings is multiplied by the replacement
        cost per square foot for Class A Average building
        found in the most recent edition of the Marshall &
        Swift Valuation Services Manual, adjusted by any
        appropriate current cost and local multipliers.
            (B) Depreciation, for purposes of calculating the
        estimated fair market value of buildings on the
        property, is applied by utilizing a weighted mean life
        for the buildings based on original construction and
        assuming a 40-year life for hospital buildings and the
        applicable life for other types of buildings as
        specified in the American Hospital Association
        publication "Estimated Useful Lives of Depreciable
        Hospital Assets". In the case of hospital buildings,
        the remaining life is divided by 40 and this ratio is
        multiplied by the replacement cost of the buildings to
        obtain an estimated fair market value of buildings. If
        a hospital building is older than 35 years, a
        remaining life of 5 years for residual value is
        assumed; and if a building is less than 8 years old, a
        remaining life of 32 years is assumed.
            (C) The estimated assessed value of the land
        portion of the property shall be determined by
        multiplying (i) the per square foot average of the
        assessed values of three parcels of land (not
        including farm land, and excluding the assessed value
        of the improvements thereon) reasonably comparable to
        the property, by (ii) the number of square feet
        comprising the exempt portion of the property's land
        square footage.
        (3) The assessment factor, State equalization rate,
    and tax rate (including any special factors such as
    Enterprise Zones) used in calculating the estimated
    property tax liability shall be for the most recent year
    that is publicly available from the applicable chief
    county assessment officer or officers at least 90 days
    before the end of the hospital year.
        (4) The method utilized to calculate estimated
    property tax liability for purposes of this Section 15-86
    shall not be utilized for the actual valuation,
    assessment, or taxation of property pursuant to the
    Property Tax Code.
    (h) For the purpose of this Section, the following terms
shall have the meanings set forth below:
        (1) "Hospital" means any institution, place, building,
    buildings on a campus, or other health care facility
    located in Illinois that is licensed under the Hospital
    Licensing Act and has a hospital owner.
        (2) "Hospital owner" means a not-for-profit
    corporation that is the titleholder of a hospital, or the
    owner of the beneficial interest in an Illinois land trust
    that is the titleholder of a hospital.
        (3) "Hospital affiliate" means any corporation,
    partnership, limited partnership, joint venture, limited
    liability company, association or other organization,
    other than a hospital owner, that directly or indirectly
    controls, is controlled by, or is under common control
    with one or more hospital owners and that supports, is
    supported by, or acts in furtherance of the exempt health
    care purposes of at least one of those hospital owners'
    hospitals.
        (4) "Hospital system" means a hospital and one or more
    other hospitals or hospital affiliates related by common
    control or ownership.
        (5) "Control" relating to hospital owners, hospital
    affiliates, or hospital systems means possession, direct
    or indirect, of the power to direct or cause the direction
    of the management and policies of the entity, whether
    through ownership of assets, membership interest, other
    voting or governance rights, by contract or otherwise.
        (6) "Hospital applicant" means a hospital owner or
    hospital affiliate that files an application for an
    exemption or renewal of exemption under this Section.
        (7) "Relevant hospital entity" means (A) the hospital
    owner, in the case of a hospital applicant that is a
    hospital owner, and (B) at the election of a hospital
    applicant that is a hospital affiliate, either (i) the
    hospital affiliate or (ii) the hospital system to which
    the hospital applicant belongs, including any hospitals or
    hospital affiliates that are related by common control or
    ownership.
        (8) "Subject property" means property used for the
    calculation under subsection (b) of this Section.
        (9) "Hospital year" means the fiscal year of the
    relevant hospital entity, or the fiscal year of one of the
    hospital owners in the hospital system if the relevant
    hospital entity is a hospital system with members with
    different fiscal years, that ends in the year for which
    the exemption is sought.
    (i) It is the intent of the General Assembly that any
exemptions taken, granted, or renewed under this Section prior
to the effective date of this amendatory Act of the 100th
General Assembly are hereby validated.
    (j) It is the intent of the General Assembly that the
exemption under this Section applies on a continuous basis. If
this amendatory Act of the 102nd General Assembly takes effect
after July 1, 2022, any exemptions taken, granted, or renewed
under this Section on or after July 1, 2022 and prior to the
effective date of this amendatory Act of the 102nd General
Assembly are hereby validated.
    (k) This Section is exempt from the provisions of Section
2-70.
(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
ARTICLE 30. ORGAN DONATION

 
    Section 30-5. The Illinois Income Tax Act is amended by
changing Section 704A as follows:
 
    (35 ILCS 5/704A)
    Sec. 704A. Employer's return and payment of tax withheld.
    (a) In general, every employer who deducts and withholds
or is required to deduct and withhold tax under this Act on or
after January 1, 2008 shall make those payments and returns as
provided in this Section.
    (b) Returns. Every employer shall, in the form and manner
required by the Department, make returns with respect to taxes
withheld or required to be withheld under this Article 7 for
each quarter beginning on or after January 1, 2008, on or
before the last day of the first month following the close of
that quarter.
    (c) Payments. With respect to amounts withheld or required
to be withheld on or after January 1, 2008:
        (1) Semi-weekly payments. For each calendar year, each
    employer who withheld or was required to withhold more
    than $12,000 during the one-year period ending on June 30
    of the immediately preceding calendar year, payment must
    be made:
            (A) on or before each Friday of the calendar year,
        for taxes withheld or required to be withheld on the
        immediately preceding Saturday, Sunday, Monday, or
        Tuesday;
            (B) on or before each Wednesday of the calendar
        year, for taxes withheld or required to be withheld on
        the immediately preceding Wednesday, Thursday, or
        Friday.
        Beginning with calendar year 2011, payments made under
    this paragraph (1) of subsection (c) must be made by
    electronic funds transfer.
        (2) Semi-weekly payments. Any employer who withholds
    or is required to withhold more than $12,000 in any
    quarter of a calendar year is required to make payments on
    the dates set forth under item (1) of this subsection (c)
    for each remaining quarter of that calendar year and for
    the subsequent calendar year.
        (3) Monthly payments. Each employer, other than an
    employer described in items (1) or (2) of this subsection,
    shall pay to the Department, on or before the 15th day of
    each month the taxes withheld or required to be withheld
    during the immediately preceding month.
        (4) Payments with returns. Each employer shall pay to
    the Department, on or before the due date for each return
    required to be filed under this Section, any tax withheld
    or required to be withheld during the period for which the
    return is due and not previously paid to the Department.
    (d) Regulatory authority. The Department may, by rule:
        (1) Permit employers, in lieu of the requirements of
    subsections (b) and (c), to file annual returns due on or
    before January 31 of the year for taxes withheld or
    required to be withheld during the previous calendar year
    and, if the aggregate amounts required to be withheld by
    the employer under this Article 7 (other than amounts
    required to be withheld under Section 709.5) do not exceed
    $1,000 for the previous calendar year, to pay the taxes
    required to be shown on each such return no later than the
    due date for such return.
        (2) Provide that any payment required to be made under
    subsection (c)(1) or (c)(2) is deemed to be timely to the
    extent paid by electronic funds transfer on or before the
    due date for deposit of federal income taxes withheld
    from, or federal employment taxes due with respect to, the
    wages from which the Illinois taxes were withheld.
        (3) Designate one or more depositories to which
    payment of taxes required to be withheld under this
    Article 7 must be paid by some or all employers.
        (4) Increase the threshold dollar amounts at which
    employers are required to make semi-weekly payments under
    subsection (c)(1) or (c)(2).
    (e) Annual return and payment. Every employer who deducts
and withholds or is required to deduct and withhold tax from a
person engaged in domestic service employment, as that term is
defined in Section 3510 of the Internal Revenue Code, may
comply with the requirements of this Section with respect to
such employees by filing an annual return and paying the taxes
required to be deducted and withheld on or before the 15th day
of the fourth month following the close of the employer's
taxable year. The Department may allow the employer's return
to be submitted with the employer's individual income tax
return or to be submitted with a return due from the employer
under Section 1400.2 of the Unemployment Insurance Act.
    (f) Magnetic media and electronic filing. With respect to
taxes withheld in calendar years prior to 2017, any W-2 Form
that, under the Internal Revenue Code and regulations
promulgated thereunder, is required to be submitted to the
Internal Revenue Service on magnetic media or electronically
must also be submitted to the Department on magnetic media or
electronically for Illinois purposes, if required by the
Department.
    With respect to taxes withheld in 2017 and subsequent
calendar years, the Department may, by rule, require that any
return (including any amended return) under this Section and
any W-2 Form that is required to be submitted to the Department
must be submitted on magnetic media or electronically.
    The due date for submitting W-2 Forms shall be as
prescribed by the Department by rule.
    (g) For amounts deducted or withheld after December 31,
2009, a taxpayer who makes an election under subsection (f) of
Section 5-15 of the Economic Development for a Growing Economy
Tax Credit Act for a taxable year shall be allowed a credit
against payments due under this Section for amounts withheld
during the first calendar year beginning after the end of that
taxable year equal to the amount of the credit for the
incremental income tax attributable to full-time employees of
the taxpayer awarded to the taxpayer by the Department of
Commerce and Economic Opportunity under the Economic
Development for a Growing Economy Tax Credit Act for the
taxable year and credits not previously claimed and allowed to
be carried forward under Section 211(4) of this Act as
provided in subsection (f) of Section 5-15 of the Economic
Development for a Growing Economy Tax Credit Act. The credit
or credits may not reduce the taxpayer's obligation for any
payment due under this Section to less than zero. If the amount
of the credit or credits exceeds the total payments due under
this Section with respect to amounts withheld during the
calendar year, the excess may be carried forward and applied
against the taxpayer's liability under this Section in the
succeeding calendar years as allowed to be carried forward
under paragraph (4) of Section 211 of this Act. The credit or
credits shall be applied to the earliest year for which there
is a tax liability. If there are credits from more than one
taxable year that are available to offset a liability, the
earlier credit shall be applied first. Each employer who
deducts and withholds or is required to deduct and withhold
tax under this Act and who retains income tax withholdings
under subsection (f) of Section 5-15 of the Economic
Development for a Growing Economy Tax Credit Act must make a
return with respect to such taxes and retained amounts in the
form and manner that the Department, by rule, requires and pay
to the Department or to a depositary designated by the
Department those withheld taxes not retained by the taxpayer.
For purposes of this subsection (g), the term taxpayer shall
include taxpayer and members of the taxpayer's unitary
business group as defined under paragraph (27) of subsection
(a) of Section 1501 of this Act. This Section is exempt from
the provisions of Section 250 of this Act. No credit awarded
under the Economic Development for a Growing Economy Tax
Credit Act for agreements entered into on or after January 1,
2015 may be credited against payments due under this Section.
    (g-1) For amounts deducted or withheld after December 31,
2024, a taxpayer who makes an election under the Reimagining
Electric Vehicles in Illinois Act shall be allowed a credit
against payments due under this Section for amounts withheld
during the first quarterly reporting period beginning after
the certificate is issued equal to the portion of the REV
Illinois Credit attributable to the incremental income tax
attributable to new employees and retained employees as
certified by the Department of Commerce and Economic
Opportunity pursuant to an agreement with the taxpayer under
the Reimagining Electric Vehicles in Illinois Act for the
taxable year. The credit or credits may not reduce the
taxpayer's obligation for any payment due under this Section
to less than zero. If the amount of the credit or credits
exceeds the total payments due under this Section with respect
to amounts withheld during the quarterly reporting period, the
excess may be carried forward and applied against the
taxpayer's liability under this Section in the succeeding
quarterly reporting period as allowed to be carried forward
under paragraph (4) of Section 211 of this Act. The credit or
credits shall be applied to the earliest quarterly reporting
period for which there is a tax liability. If there are credits
from more than one quarterly reporting period that are
available to offset a liability, the earlier credit shall be
applied first. Each employer who deducts and withholds or is
required to deduct and withhold tax under this Act and who
retains income tax withholdings this subsection must make a
return with respect to such taxes and retained amounts in the
form and manner that the Department, by rule, requires and pay
to the Department or to a depositary designated by the
Department those withheld taxes not retained by the taxpayer.
For purposes of this subsection (g-1), the term taxpayer shall
include taxpayer and members of the taxpayer's unitary
business group as defined under paragraph (27) of subsection
(a) of Section 1501 of this Act. This Section is exempt from
the provisions of Section 250 of this Act.
    (h) An employer may claim a credit against payments due
under this Section for amounts withheld during the first
calendar year ending after the date on which a tax credit
certificate was issued under Section 35 of the Small Business
Job Creation Tax Credit Act. The credit shall be equal to the
amount shown on the certificate, but may not reduce the
taxpayer's obligation for any payment due under this Section
to less than zero. If the amount of the credit exceeds the
total payments due under this Section with respect to amounts
withheld during the calendar year, the excess may be carried
forward and applied against the taxpayer's liability under
this Section in the 5 succeeding calendar years. The credit
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one calendar
year that are available to offset a liability, the earlier
credit shall be applied first. This Section is exempt from the
provisions of Section 250 of this Act.
    (i) Each employer with 50 or fewer full-time equivalent
employees during the reporting period may claim a credit
against the payments due under this Section for each qualified
employee in an amount equal to the maximum credit allowable.
The credit may be taken against payments due for reporting
periods that begin on or after January 1, 2020, and end on or
before December 31, 2027. An employer may not claim a credit
for an employee who has worked fewer than 90 consecutive days
immediately preceding the reporting period; however, such
credits may accrue during that 90-day period and be claimed
against payments under this Section for future reporting
periods after the employee has worked for the employer at
least 90 consecutive days. In no event may the credit exceed
the employer's liability for the reporting period. Each
employer who deducts and withholds or is required to deduct
and withhold tax under this Act and who retains income tax
withholdings under this subsection must make a return with
respect to such taxes and retained amounts in the form and
manner that the Department, by rule, requires and pay to the
Department or to a depositary designated by the Department
those withheld taxes not retained by the employer.
    For each reporting period, the employer may not claim a
credit or credits for more employees than the number of
employees making less than the minimum or reduced wage for the
current calendar year during the last reporting period of the
preceding calendar year. Notwithstanding any other provision
of this subsection, an employer shall not be eligible for
credits for a reporting period unless the average wage paid by
the employer per employee for all employees making less than
$55,000 during the reporting period is greater than the
average wage paid by the employer per employee for all
employees making less than $55,000 during the same reporting
period of the prior calendar year.
    For purposes of this subsection (i):
    "Compensation paid in Illinois" has the meaning ascribed
to that term under Section 304(a)(2)(B) of this Act.
    "Employer" and "employee" have the meaning ascribed to
those terms in the Minimum Wage Law, except that "employee"
also includes employees who work for an employer with fewer
than 4 employees. Employers that operate more than one
establishment pursuant to a franchise agreement or that
constitute members of a unitary business group shall aggregate
their employees for purposes of determining eligibility for
the credit.
    "Full-time equivalent employees" means the ratio of the
number of paid hours during the reporting period and the
number of working hours in that period.
    "Maximum credit" means the percentage listed below of the
difference between the amount of compensation paid in Illinois
to employees who are paid not more than the required minimum
wage reduced by the amount of compensation paid in Illinois to
employees who were paid less than the current required minimum
wage during the reporting period prior to each increase in the
required minimum wage on January 1. If an employer pays an
employee more than the required minimum wage and that employee
previously earned less than the required minimum wage, the
employer may include the portion that does not exceed the
required minimum wage as compensation paid in Illinois to
employees who are paid not more than the required minimum
wage.
        (1) 25% for reporting periods beginning on or after
    January 1, 2020 and ending on or before December 31, 2020;
        (2) 21% for reporting periods beginning on or after
    January 1, 2021 and ending on or before December 31, 2021;
        (3) 17% for reporting periods beginning on or after
    January 1, 2022 and ending on or before December 31, 2022;
        (4) 13% for reporting periods beginning on or after
    January 1, 2023 and ending on or before December 31, 2023;
        (5) 9% for reporting periods beginning on or after
    January 1, 2024 and ending on or before December 31, 2024;
        (6) 5% for reporting periods beginning on or after
    January 1, 2025 and ending on or before December 31, 2025.
    The amount computed under this subsection may continue to
be claimed for reporting periods beginning on or after January
1, 2026 and:
        (A) ending on or before December 31, 2026 for
    employers with more than 5 employees; or
        (B) ending on or before December 31, 2027 for
    employers with no more than 5 employees.
    "Qualified employee" means an employee who is paid not
more than the required minimum wage and has an average wage
paid per hour by the employer during the reporting period
equal to or greater than his or her average wage paid per hour
by the employer during each reporting period for the
immediately preceding 12 months. A new qualified employee is
deemed to have earned the required minimum wage in the
preceding reporting period.
    "Reporting period" means the quarter for which a return is
required to be filed under subsection (b) of this Section.
    (j) For reporting periods beginning on or after January 1,
2023, if a private employer grants all of its employees the
option of taking a paid leave of absence of at least 30 days
for the purpose of serving as an organ donor or bone marrow
donor, then the private employer may take a credit against the
payments due under this Section in an amount equal to the
amount withheld under this Section with respect to wages paid
while the employee is on organ donation leave, not to exceed
$1,000 in withholdings for each employee who takes organ
donation leave. To be eligible for the credit, such a leave of
absence must be taken without loss of pay, vacation time,
compensatory time, personal days, or sick time for at least
the first 30 days of the leave of absence. The private employer
shall adopt rules governing organ donation leave, including
rules that (i) establish conditions and procedures for
requesting and approving leave and (ii) require medical
documentation of the proposed organ or bone marrow donation
before leave is approved by the private employer. A private
employer must provide, in the manner required by the
Department, documentation from the employee's medical
provider, which the private employer receives from the
employee, that verifies the employee's organ donation. The
private employer must also provide, in the manner required by
the Department, documentation that shows that a qualifying
organ donor leave policy was in place and offered to all
qualifying employees at the time the leave was taken. For the
private employer to receive the tax credit, the employee
taking organ donor leave must allow for the applicable medical
records to be disclosed to the Department. If the private
employer cannot provide the required documentation to the
Department, then the private employer is ineligible for the
credit under this Section. A private employer must also
provide, in the form required by the Department, any
additional documentation or information required by the
Department to administer the credit under this Section. The
credit under this subsection (j) shall be taken within one
year after the date upon which the organ donation leave
begins. If the leave taken spans into a second tax year, the
employer qualifies for the allowable credit in the later of
the 2 years. If the amount of credit exceeds the tax liability
for the year, the excess may be carried and applied to the tax
liability for the 3 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 liability, the
earlier credit shall be applied first.
    Nothing in this subsection (j) prohibits a private
employer from providing an unpaid leave of absence to its
employees for the purpose of serving as an organ donor or bone
marrow donor; however, if the employer's policy provides for
fewer than 30 days of paid leave for organ or bone marrow
donation, then the employer shall not be eligible for the
credit under this Section.
    As used in this subsection (j):
        "Organ" means any biological tissue of the human body
    that may be donated by a living donor, including, but not
    limited to, the kidney, liver, lung, pancreas, intestine,
    bone, skin, or any subpart of those organs.
        "Organ donor" means a person from whose body an organ
    is taken to be transferred to the body of another person.
        "Private employer" means a sole proprietorship,
    corporation, partnership, limited liability company, or
    other entity with one or more employees. "Private
    employer" does not include a municipality, county, State
    agency, or other public employer.
    This subsection (j) is exempt from the provisions of
Section 250 of this Act.
(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21.)
 
ARTICLE 40. TAX REBATES

 
    Section 40-3. The Illinois Administrative Procedure Act is
amended by adding Section 5-45.21 as follows:
 
    (5 ILCS 100/5-45.21 new)
    Sec. 5-45.21. Emergency rulemaking. To provide for the
expeditious and timely implementation of this amendatory Act
of the 102nd General Assembly, emergency rules implementing
Sections 208.5 and 212.1 of the Illinois Income Tax Act may be
adopted in accordance with Section 5-45 by the Department of
Revenue. The adoption of emergency rules authorized by Section
5-45 and this Section is deemed to be necessary for the public
interest, safety, and welfare.
    This Section is repealed one year after the effective date
of this amendatory Act of the 102nd General Assembly.
 
    Section 40-5. The State Finance Act is amended by changing
Section 8g-1 as follows:
 
    (30 ILCS 105/8g-1)
    Sec. 8g-1. Fund transfers.
    (a) (Blank).
    (b) (Blank).
    (c) (Blank).
    (d) (Blank).
    (e) (Blank).
    (f) (Blank).
    (g) (Blank).
    (h) (Blank).
    (i) (Blank).
    (j) (Blank).
    (k) (Blank).
    (l) (Blank).
    (m) (Blank).
    (n) (Blank).
    (o) (Blank).
    (p) (Blank).
    (q) (Blank).
    (r) (Blank).
    (s) (Blank).
    (t) (Blank).
    (u) In addition to any other transfers that may be
provided for by law, on July 1, 2021, or as soon thereafter as
practical, only as directed by the Director of the Governor's
Office of Management and Budget, the State Comptroller shall
direct and the State Treasurer shall transfer the sum of
$5,000,000 from the General Revenue Fund to the DoIT Special
Projects Fund, and on June 1, 2022, or as soon thereafter as
practical, but no later than June 30, 2022, the State
Comptroller shall direct and the State Treasurer shall
transfer the sum so transferred from the DoIT Special Projects
Fund to the General Revenue Fund.
    (v) In addition to any other transfers that may be
provided for by law, on July 1, 2021, or as soon thereafter as
practical, the State Comptroller shall direct and the State
Treasurer shall transfer the sum of $500,000 from the General
Revenue Fund to the Governor's Administrative Fund.
    (w) In addition to any other transfers that may be
provided for by law, on July 1, 2021, or as soon thereafter as
practical, the State Comptroller shall direct and the State
Treasurer shall transfer the sum of $500,000 from the General
Revenue Fund to the Grant Accountability and Transparency
Fund.
    (x) In addition to any other transfers that may be
provided for by law, at a time or times during Fiscal Year 2022
as directed by the Governor, the State Comptroller shall
direct and the State Treasurer shall transfer up to a total of
$20,000,000 from the General Revenue Fund to the Illinois
Sports Facilities Fund to be credited to the Advance Account
within the Fund.
    (y) In addition to any other transfers that may be
provided for by law, on June 15, 2021, or as soon thereafter as
practical, but no later than June 30, 2021, the State
Comptroller shall direct and the State Treasurer shall
transfer the sum of $100,000,000 from the General Revenue Fund
to the Technology Management Revolving Fund.
    (z) In addition to any other transfers that may be
provided by law, on the effective date of this amendatory Act
of the 102nd General Assembly, or as soon thereafter as
practical, but no later than June 30, 2022, the State
Comptroller shall direct and the State Treasurer shall
transfer the sum of $685,000,000 from the General Revenue Fund
to the Income Tax Refund Fund. Moneys from this transfer shall
be used for the purpose of making the one-time rebate payments
provided under Section 212.1 of the Illinois Income Tax Act.
    (aa) In addition to any other transfers that may be
provided by law, beginning on the effective date of this
amendatory Act of the 102nd General Assembly and until
December 31, 2023, at the direction of the Department of
Revenue, the State Comptroller shall direct and the State
Treasurer shall transfer from the General Revenue Fund to the
Income Tax Refund Fund any amounts needed beyond the amounts
transferred in subsection (z) to make payments of the one-time
rebate payments provided under Section 212.1 of the Illinois
Income Tax Act.
(Source: P.A. 101-10, eff. 6-5-19; 101-636, eff. 6-10-20;
102-16, eff. 6-17-21.)
 
    Section 40-10. The Illinois Income Tax Act is amended by
changing Section 901 and by adding Sections 208.5 and 212.1 as
follows:
 
    (35 ILCS 5/208.5 new)
    Sec. 208.5. Residential real estate tax rebate.
    (a) The Department shall pay a one-time rebate to every
individual taxpayer who files with the Department, on or
before October 17, 2022, an Illinois income tax return for tax
year 2021 and who qualifies, in that tax year, under rules
adopted by the Department, for the income tax credit provided
under Section 208 of this Act. The amount of the one-time
rebate provided under this Section shall be the lesser of: (1)
the amount of the credit provided under Section 208 for tax
year 2021, including any amounts that would otherwise reduce a
taxpayer's liability to less than zero, or (2) $300 per
principal residence. The Department shall develop a process to
claim a rebate for taxpayers who otherwise would be eligible
for the rebate under this Section but who did not have an
obligation to file a 2021 Illinois income tax return because
their exemption allowance exceeded their Illinois base income.
    (b) On the effective date of this amendatory Act of the
102nd General Assembly, or as soon thereafter as practical,
but no later than June 30, 2022, the State Comptroller shall
direct and the State Treasurer shall transfer the sum of
$470,000,000 from the General Revenue Fund to the Income Tax
Refund Fund.
    (c) On July 1, 2022, or as soon thereafter as practical,
the State Comptroller shall direct and the State Treasurer
shall transfer the sum of $50,000,000 from the General Revenue
Fund to the Income Tax Refund Fund.
    (d) In addition to any other transfers that may be
provided for by law, beginning on the effective date of this
amendatory Act of the 102nd General Assembly and until June
30, 2023, the Director may certify additional transfer amounts
needed beyond the amounts specified in subsections (b) and
(c). The State Comptroller shall direct and the State
Treasurer shall transfer the amounts certified by the Director
from the General Revenue Fund to the Income Tax Refund Fund.
    (e) The one-time rebate payments provided under this
Section shall be paid from the Income Tax Refund Fund.
    (f) Beginning on July 5, 2022, the Department shall
certify to the Comptroller the names of the taxpayers who are
eligible for a one-time rebate under this Section, the amounts
of those rebates, and any other information that the
Comptroller requires to direct the payment of the rebates
provided under this Section to taxpayers.
    (g) The amount of a rebate under this Section shall not be
included in the taxpayer's income or resources for the
purposes of determining eligibility or benefit level in any
means-tested benefit program administered by a governmental
entity unless required by federal law.
    (h) Notwithstanding any other law to the contrary, the
rebates shall not be subject to offset by the Comptroller
against any liability owed either to the State or to any unit
of local government.
    (i) This Section is repealed on January 1, 2024.
 
    (35 ILCS 5/212.1 new)
    Sec. 212.1. Individual income tax rebates.
    (a) Each taxpayer who files an individual income tax
return under this Act, on or before October 17, 2022, for the
taxable year that began on January 1, 2021 and whose adjusted
gross income for the taxable year is less than (i) $400,000, in
the case of spouses filing a joint federal tax return, or (ii)
$200,000, in the case of all other taxpayers, is entitled to a
one-time rebate under this Section. The amount of the rebate
shall be $50 for single filers and $100 for spouses filing a
joint return, plus an additional $100 for each person who is
claimed as a dependent, up to 3 dependents, on the taxpayer's
federal income tax return for the taxable year that began on
January 1, 2021. A taxpayer who files an individual income tax
return under this Act for the taxable year that began on
January 1, 2021, and who is claimed as a dependent on another
individual's return for that year, is ineligible for the
rebate provided under this Section. Spouses who qualify for a
rebate under this Section and who file a joint return shall be
treated as a single taxpayer for the purposes of the rebate
under this Section. For a part-year resident, the amount of
the rebate under this Section shall be in proportion to the
amount of the taxpayer's income that is attributable to this
State for the taxable year that began on January 1, 2021.
Taxpayers who were non-residents for the taxable year that
began on January 1, 2021 are not entitled to a rebate under
this Section.
    (b) Beginning on July 5, 2022, the Department shall
certify to the Comptroller the names of the taxpayers who are
eligible for a one-time rebate under this Section, the amounts
of those rebates, and any other information that the
Comptroller requires to direct the payment of the rebates
provided under this Section to taxpayers.
    (c) If a taxpayer files an amended return indicating that
the taxpayer is entitled to a rebate under this Section that
the taxpayer did not receive, or indicating that the taxpayer
did not receive the full rebate amount to which the taxpayer is
entitled, then the rebate shall be processed in the same
manner as a claim for refund under Article 9. If the taxpayer
files an amended return indicating that the taxpayer received
a rebate under this Section to which the taxpayer is not
entitled, then the Department shall issue a notice of
deficiency as provided in Article 9.
    (d) The Department shall make the rebate payments
authorized by this Section from the Income Tax Refund Fund.
    (e) The amount of a rebate under this Section shall not be
included in the taxpayer's income or resources for the
purposes of determining eligibility or benefit level in any
means-tested benefit program administered by a governmental
entity unless required by federal law.
    (f) Nothing in this Section prevents a taxpayer from
receiving the earned income tax credit and the rebate under
this Section for the same taxable year.
    (g) Notwithstanding any other law to the contrary, the
rebates shall not be subject to offset by the Comptroller
against any liability owed either to the State or to any unit
of local government.
    (h) The Department shall adopt rules for the
implementation of this Section, including emergency rules
under Section 5-45.21 of the Illinois Administrative Procedure
Act.
    (i) This Section is repealed one year after the effective
date of this amendatory Act of the 102nd General Assembly.
 
    (35 ILCS 5/901)
    Sec. 901. Collection authority.
    (a) In general. The Department shall collect the taxes
imposed by this Act. The Department shall collect certified
past due child support amounts under Section 2505-650 of the
Department of Revenue Law of the Civil Administrative Code of
Illinois. Except as provided in subsections (b), (c), (e),
(f), (g), and (h) of this Section, money collected pursuant to
subsections (a) and (b) of Section 201 of this Act shall be
paid into the General Revenue Fund in the State treasury;
money collected pursuant to subsections (c) and (d) of Section
201 of this Act shall be paid into the Personal Property Tax
Replacement Fund, a special fund in the State Treasury; and
money collected under Section 2505-650 of the Department of
Revenue Law of the Civil Administrative Code of Illinois shall
be paid into the Child Support Enforcement Trust Fund, a
special fund outside the State Treasury, or to the State
Disbursement Unit established under Section 10-26 of the
Illinois Public Aid Code, as directed by the Department of
Healthcare and Family Services.
    (b) Local Government Distributive Fund. Beginning August
1, 2017, the Treasurer shall transfer each month from the
General Revenue Fund to the Local Government Distributive Fund
an amount equal to the sum of: (i) 6.06% (10% of the ratio of
the 3% individual income tax rate prior to 2011 to the 4.95%
individual income tax rate after July 1, 2017) of the net
revenue realized from the tax imposed by subsections (a) and
(b) of Section 201 of this Act upon individuals, trusts, and
estates during the preceding month; (ii) 6.85% (10% of the
ratio of the 4.8% corporate income tax rate prior to 2011 to
the 7% corporate income tax rate after July 1, 2017) of the net
revenue realized from the tax imposed by subsections (a) and
(b) of Section 201 of this Act upon corporations during the
preceding month; and (iii) beginning February 1, 2022, 6.06%
of the net revenue realized from the tax imposed by subsection
(p) of Section 201 of this Act upon electing pass-through
entities. Net revenue realized for a month shall be defined as
the revenue from the tax imposed by subsections (a) and (b) of
Section 201 of this Act which is deposited in the General
Revenue Fund, the Education Assistance Fund, the Income Tax
Surcharge Local Government Distributive Fund, the Fund for the
Advancement of Education, and the Commitment to Human Services
Fund during the month minus the amount paid out of the General
Revenue Fund in State warrants during that same month as
refunds to taxpayers for overpayment of liability under the
tax imposed by subsections (a) and (b) of Section 201 of this
Act.
    Notwithstanding any provision of law to the contrary,
beginning on July 6, 2017 (the effective date of Public Act
100-23), those amounts required under this subsection (b) to
be transferred by the Treasurer into the Local Government
Distributive Fund from the General Revenue Fund shall be
directly deposited into the Local Government Distributive Fund
as the revenue is realized from the tax imposed by subsections
(a) and (b) of Section 201 of this Act.
    (c) Deposits Into Income Tax Refund Fund.
        (1) Beginning on January 1, 1989 and thereafter, the
    Department shall deposit a percentage of the amounts
    collected pursuant to subsections (a) and (b)(1), (2), and
    (3) of Section 201 of this Act into a fund in the State
    treasury known as the Income Tax Refund Fund. Beginning
    with State fiscal year 1990 and for each fiscal year
    thereafter, the percentage deposited into the Income Tax
    Refund Fund during a fiscal year shall be the Annual
    Percentage. For fiscal year 2011, the Annual Percentage
    shall be 8.75%. For fiscal year 2012, the Annual
    Percentage shall be 8.75%. For fiscal year 2013, the
    Annual Percentage shall be 9.75%. For fiscal year 2014,
    the Annual Percentage shall be 9.5%. For fiscal year 2015,
    the Annual Percentage shall be 10%. For fiscal year 2018,
    the Annual Percentage shall be 9.8%. For fiscal year 2019,
    the Annual Percentage shall be 9.7%. For fiscal year 2020,
    the Annual Percentage shall be 9.5%. For fiscal year 2021,
    the Annual Percentage shall be 9%. For fiscal year 2022,
    the Annual Percentage shall be 9.25%. For all other fiscal
    years, the Annual Percentage shall be calculated as a
    fraction, the numerator of which shall be the amount of
    refunds approved for payment by the Department during the
    preceding fiscal year as a result of overpayment of tax
    liability under subsections (a) and (b)(1), (2), and (3)
    of Section 201 of this Act plus the amount of such refunds
    remaining approved but unpaid at the end of the preceding
    fiscal year, minus the amounts transferred into the Income
    Tax Refund Fund from the Tobacco Settlement Recovery Fund,
    and the denominator of which shall be the amounts which
    will be collected pursuant to subsections (a) and (b)(1),
    (2), and (3) of Section 201 of this Act during the
    preceding fiscal year; except that in State fiscal year
    2002, the Annual Percentage shall in no event exceed 7.6%.
    The Director of Revenue shall certify the Annual
    Percentage to the Comptroller on the last business day of
    the fiscal year immediately preceding the fiscal year for
    which it is to be effective.
        (2) Beginning on January 1, 1989 and thereafter, the
    Department shall deposit a percentage of the amounts
    collected pursuant to subsections (a) and (b)(6), (7), and
    (8), (c) and (d) of Section 201 of this Act into a fund in
    the State treasury known as the Income Tax Refund Fund.
    Beginning with State fiscal year 1990 and for each fiscal
    year thereafter, the percentage deposited into the Income
    Tax Refund Fund during a fiscal year shall be the Annual
    Percentage. For fiscal year 2011, the Annual Percentage
    shall be 17.5%. For fiscal year 2012, the Annual
    Percentage shall be 17.5%. For fiscal year 2013, the
    Annual Percentage shall be 14%. For fiscal year 2014, the
    Annual Percentage shall be 13.4%. For fiscal year 2015,
    the Annual Percentage shall be 14%. For fiscal year 2018,
    the Annual Percentage shall be 17.5%. For fiscal year
    2019, the Annual Percentage shall be 15.5%. For fiscal
    year 2020, the Annual Percentage shall be 14.25%. For
    fiscal year 2021, the Annual Percentage shall be 14%. For
    fiscal year 2022, the Annual Percentage shall be 15%. For
    all other fiscal years, the Annual Percentage shall be
    calculated as a fraction, the numerator of which shall be
    the amount of refunds approved for payment by the
    Department during the preceding fiscal year as a result of
    overpayment of tax liability under subsections (a) and
    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
    Act plus the amount of such refunds remaining approved but
    unpaid at the end of the preceding fiscal year, and the
    denominator of which shall be the amounts which will be
    collected pursuant to subsections (a) and (b)(6), (7), and
    (8), (c) and (d) of Section 201 of this Act during the
    preceding fiscal year; except that in State fiscal year
    2002, the Annual Percentage shall in no event exceed 23%.
    The Director of Revenue shall certify the Annual
    Percentage to the Comptroller on the last business day of
    the fiscal year immediately preceding the fiscal year for
    which it is to be effective.
        (3) The Comptroller shall order transferred and the
    Treasurer shall transfer from the Tobacco Settlement
    Recovery Fund to the Income Tax Refund Fund (i)
    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
    2002, and (iii) $35,000,000 in January, 2003.
    (d) Expenditures from Income Tax Refund Fund.
        (1) Beginning January 1, 1989, money in the Income Tax
    Refund Fund shall be expended exclusively for the purpose
    of paying refunds resulting from overpayment of tax
    liability under Section 201 of this Act and for making
    transfers pursuant to this subsection (d), except that in
    State fiscal years 2022 and 2023, moneys in the Income Tax
    Refund Fund shall also be used to pay one-time rebate
    payments as provided under Sections 208.5 and 212.1.
        (2) The Director shall order payment of refunds
    resulting from overpayment of tax liability under Section
    201 of this Act from the Income Tax Refund Fund only to the
    extent that amounts collected pursuant to Section 201 of
    this Act and transfers pursuant to this subsection (d) and
    item (3) of subsection (c) have been deposited and
    retained in the Fund.
        (3) As soon as possible after the end of each fiscal
    year, the Director shall order transferred and the State
    Treasurer and State Comptroller shall transfer from the
    Income Tax Refund Fund to the Personal Property Tax
    Replacement Fund an amount, certified by the Director to
    the Comptroller, equal to the excess of the amount
    collected pursuant to subsections (c) and (d) of Section
    201 of this Act deposited into the Income Tax Refund Fund
    during the fiscal year over the amount of refunds
    resulting from overpayment of tax liability under
    subsections (c) and (d) of Section 201 of this Act paid
    from the Income Tax Refund Fund during the fiscal year.
        (4) As soon as possible after the end of each fiscal
    year, the Director shall order transferred and the State
    Treasurer and State Comptroller shall transfer from the
    Personal Property Tax Replacement Fund to the Income Tax
    Refund Fund an amount, certified by the Director to the
    Comptroller, equal to the excess of the amount of refunds
    resulting from overpayment of tax liability under
    subsections (c) and (d) of Section 201 of this Act paid
    from the Income Tax Refund Fund during the fiscal year
    over the amount collected pursuant to subsections (c) and
    (d) of Section 201 of this Act deposited into the Income
    Tax Refund Fund during the fiscal year.
        (4.5) As soon as possible after the end of fiscal year
    1999 and of each fiscal year thereafter, the Director
    shall order transferred and the State Treasurer and State
    Comptroller shall transfer from the Income Tax Refund Fund
    to the General Revenue Fund any surplus remaining in the
    Income Tax Refund Fund as of the end of such fiscal year;
    excluding for fiscal years 2000, 2001, and 2002 amounts
    attributable to transfers under item (3) of subsection (c)
    less refunds resulting from the earned income tax credit,
    and excluding for fiscal year 2022 amounts attributable to
    transfers from the General Revenue Fund authorized by this
    amendatory Act of the 102nd General Assembly.
        (5) This Act shall constitute an irrevocable and
    continuing appropriation from the Income Tax Refund Fund
    for the purposes purpose of (i) paying refunds upon the
    order of the Director in accordance with the provisions of
    this Section and (ii) paying one-time rebate payments
    under Sections 208.5 and 212.1.
    (e) Deposits into the Education Assistance Fund and the
Income Tax Surcharge Local Government Distributive Fund. On
July 1, 1991, and thereafter, of the amounts collected
pursuant to subsections (a) and (b) of Section 201 of this Act,
minus deposits into the Income Tax Refund Fund, the Department
shall deposit 7.3% into the Education Assistance Fund in the
State Treasury. Beginning July 1, 1991, and continuing through
January 31, 1993, of the amounts collected pursuant to
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 3.0% into the Income Tax Surcharge
Local Government Distributive Fund in the State Treasury.
Beginning February 1, 1993 and continuing through June 30,
1993, of the amounts collected pursuant to subsections (a) and
(b) of Section 201 of the Illinois Income Tax Act, minus
deposits into the Income Tax Refund Fund, the Department shall
deposit 4.4% into the Income Tax Surcharge Local Government
Distributive Fund in the State Treasury. Beginning July 1,
1993, and continuing through June 30, 1994, of the amounts
collected under subsections (a) and (b) of Section 201 of this
Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 1.475% into the Income Tax Surcharge
Local Government Distributive Fund in the State Treasury.
    (f) Deposits into the Fund for the Advancement of
Education. Beginning February 1, 2015, the Department shall
deposit the following portions of the revenue realized from
the tax imposed upon individuals, trusts, and estates by
subsections (a) and (b) of Section 201 of this Act, minus
deposits into the Income Tax Refund Fund, into the Fund for the
Advancement of Education:
        (1) beginning February 1, 2015, and prior to February
    1, 2025, 1/30; and
        (2) beginning February 1, 2025, 1/26.
    If the rate of tax imposed by subsection (a) and (b) of
Section 201 is reduced pursuant to Section 201.5 of this Act,
the Department shall not make the deposits required by this
subsection (f) on or after the effective date of the
reduction.
    (g) Deposits into the Commitment to Human Services Fund.
Beginning February 1, 2015, the Department shall deposit the
following portions of the revenue realized from the tax
imposed upon individuals, trusts, and estates by subsections
(a) and (b) of Section 201 of this Act, minus deposits into the
Income Tax Refund Fund, into the Commitment to Human Services
Fund:
        (1) beginning February 1, 2015, and prior to February
    1, 2025, 1/30; and
        (2) beginning February 1, 2025, 1/26.
    If the rate of tax imposed by subsection (a) and (b) of
Section 201 is reduced pursuant to Section 201.5 of this Act,
the Department shall not make the deposits required by this
subsection (g) on or after the effective date of the
reduction.
    (h) Deposits into the Tax Compliance and Administration
Fund. 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 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, an amount equal to 1/12 of 5% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department from the tax imposed by
subsections (a), (b), (c), and (d) of Section 201 of this Act,
net of deposits into the Income Tax Refund Fund made from those
cash receipts.
(Source: P.A. 101-8, see Section 99 for effective date;
101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff.
6-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658,
eff. 8-27-21; revised 10-19-21.)
 
ARTICLE 45. MOTOR FUEL

 
    Section 45-3. The State Finance Act is amended by changing
Section 6z-108 as follows:
 
    (30 ILCS 105/6z-108)
    Sec. 6z-108. Transportation Renewal Fund.
    (a) The Transportation Renewal Fund is created as a
special fund in the State treasury and shall receive Motor
Fuel Tax revenues as directed by Sections 2a and Section 8b of
the Motor Fuel Tax Law.
    (b) Money in the Transportation Renewal Fund shall be used
exclusively for transportation-related purposes as described
in Section 11 of Article IX of the Illinois Constitution of
1970.
(Source: P.A. 101-30, eff. 6-28-19.)
 
    Section 45-5. The Motor Fuel Tax Law is amended by
changing Sections 2, 8a, and 17 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 and until July 1, 2020, the rate of tax imposed in this
paragraph shall be 38 cents per gallon. Beginning July 1, 2020
and until July 1, 2021, the rate of tax imposed in this
paragraph shall be 38.7 cents per gallon. Beginning July 1,
2021 and until January 1, 2023, the rate of tax imposed in this
paragraph shall be 39.2 cents per gallon. On January 1, 2023,
the rate of tax imposed in this paragraph shall be 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 September of 2022. On July 1, 2023, and on
July 1 of each subsequent year, the rate of tax imposed in this
paragraph shall be 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 the year in which the increase takes
place each year. The rate shall be rounded to the nearest
one-tenth of one cent.
    (a-5) Beginning on July 1, 2022 and through December 31,
2022, each retailer of motor fuel shall cause the following
notice to be posted in a prominently visible place on each
retail dispensing device that is used to dispense motor fuel
in the State of Illinois: "As of July 1, 2022, the State of
Illinois has suspended the inflation adjustment to the motor
fuel tax through December 31, 2022. The price on this pump
should reflect the suspension of the tax increase." The notice
shall be printed in bold print on a sign that is no smaller
than 4 inches by 8 inches. The sign shall be clearly visible to
customers. Any retailer who fails to post or maintain a
required sign through December 31, 2022 is guilty of a petty
offense for which the fine shall be $500 per day per each
retail premises where a violation occurs.
    (b) Until July 1, 2019, 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 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; 101-604, eff. 12-13-19.)
 
    (35 ILCS 505/8a)  (from Ch. 120, par. 424a)
    Sec. 8a. Deposit of proceeds. Until July 1, 2022 and
beginning again on July 1, 2023, all 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.
Beginning on July 1, 2022 and through June 30, 2023, all money
received by the Department under Section 2a shall be deposited
in the Transportation Renewal Fund.
(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
    (35 ILCS 505/17)  (from Ch. 120, par. 433)
    Sec. 17. It is the purpose of Sections 2 and 13a of this
Act to impose a tax upon the privilege of operating each motor
vehicle as defined in this Act upon the public highways and the
waters of this State, such tax to be based upon the consumption
of motor fuel in such motor vehicle, so far as the same may be
done, under the Constitution and statutes of the United
States, and the Constitution of the State of Illinois. It is
the purpose of Section 2a of this Act to impose a tax upon the
privilege of importing or receiving in this State fuel for
sale or use, such tax to be used to fund the Underground
Storage Tank Fund or the Transportation Renewal Fund. If any
of the provisions of this Act include transactions which are
not taxable or are in any other respect unconstitutional, it
is the intent of the General Assembly that, so far as possible,
the remaining provisions of the Act be given effect.
(Source: P.A. 86-125.)
 
    Section 45-10. The Environmental Impact Fee Law is amended
by changing Section 320 as follows:
 
    (415 ILCS 125/320)
    (Section scheduled to be repealed on January 1, 2025)
    Sec. 320. Deposit of fee receipts. Except as otherwise
provided in this paragraph, all money received by the
Department under this Law shall be deposited in the
Underground Storage Tank Fund created by Section 57.11 of the
Environmental Protection Act. All money received for aviation
fuel by the Department under this Law on or after December 1,
2019 and ending with returns due on January 20, 2021, shall be
immediately paid over by the Department to the State Aviation
Program Fund. The Department shall only pay such moneys into
the State Aviation Program 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. For purposes of this
Section, "aviation fuel" means jet fuel and aviation gasoline.
Beginning July 1, 2022 and through June 30, 2023, all money
received by the Department under this Law shall be deposited
into the Transportation Renewal Fund.
(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
ARTICLE 50. ELECTRIC VEHICLES

 
    Section 50-5. The Reimagining Electric Vehicles in
Illinois Act is amended by changing Sections 10 and 20 as
follows:
 
    (20 ILCS 686/10)
    Sec. 10. Definitions. As used in this Act:
    "Advanced battery" means a battery that consists of a
battery cell that can be integrated into a module, pack, or
system to be used in energy storage applications, including a
battery used in an electric vehicle or the electric grid.
    "Advanced battery component" means a component of an
advanced battery, including materials, enhancements,
enclosures, anodes, cathodes, electrolytes, cells, and other
associated technologies that comprise an advanced battery.
    "Agreement" means the agreement between a taxpayer and the
Department under the provisions of Section 45 of this Act.
    "Applicant" means a taxpayer that (i) operates a business
in Illinois or is planning to locate a business within the
State of Illinois and (ii) is engaged in interstate or
intrastate commerce for the purpose of manufacturing electric
vehicles, electric vehicle component parts, or electric
vehicle power supply equipment. "Applicant" does not include a
taxpayer who closes or substantially reduces by more than 50%
operations at one location in the State and relocates
substantially the same operation to another location in the
State. This does not prohibit a Taxpayer from expanding its
operations at another location in the State. This also does
not prohibit a Taxpayer from moving its operations from one
location in the State to another location in the State for the
purpose of expanding the operation, provided that the
Department determines that expansion cannot reasonably be
accommodated within the municipality or county in which the
business is located, or, in the case of a business located in
an incorporated area of the county, within the county in which
the business is located, after conferring with the chief
elected official of the municipality or county and taking into
consideration any evidence offered by the municipality or
county regarding the ability to accommodate expansion within
the municipality or county.
    "Battery raw materials" means the raw and processed form
of a mineral, metal, chemical, or other material used in an
advanced battery component.
    "Battery raw materials refining service provider" means a
business that operates a facility that filters, sifts, and
treats battery raw materials for use in an advanced battery.
    "Battery recycling and reuse manufacturer" means a
manufacturer that is primarily engaged in the recovery,
retrieval, processing, recycling, or recirculating of battery
raw materials for new use in electric vehicle batteries.
    "Capital improvements" means the purchase, renovation,
rehabilitation, or construction of permanent tangible land,
buildings, structures, equipment, and furnishings in an
approved project sited in Illinois and expenditures for goods
or services that are normally capitalized, including
organizational costs and research and development costs
incurred in Illinois. For land, buildings, structures, and
equipment that are leased, the lease must equal or exceed the
term of the agreement, and the cost of the property shall be
determined from the present value, using the corporate
interest rate prevailing at the time of the application, of
the lease payments.
    "Credit" means either a "REV Illinois Credit" or a "REV
Construction Jobs Credit" agreed to between the Department and
applicant under this Act.
    "Department" means the Department of Commerce and Economic
Opportunity.
    "Director" means the Director of Commerce and Economic
Opportunity.
    "Electric vehicle" means a vehicle that is exclusively
powered by and refueled by electricity, including electricity
generated through a hydrogen fuel cells or solar technology
must be plugged in to charge or utilize a pre-charged battery,
and is permitted to operate on public roadways. "Electric
vehicle" does not include hybrid electric vehicles, electric
bicycles, or and extended-range electric vehicles that are
also equipped with conventional fueled propulsion or auxiliary
engines.
    "Electric vehicle manufacturer" means a new or existing
manufacturer that is primarily focused on reequipping,
expanding, or establishing a manufacturing facility in
Illinois that produces electric vehicles as defined in this
Section.
    "Electric vehicle component parts manufacturer" means a
new or existing manufacturer that is primarily focused on
reequipping, expanding, or establishing a manufacturing
facility in Illinois that produces advanced battery components
or key components that directly support the electric functions
of electric vehicles, as defined by this Section.
    "Electric vehicle power supply equipment" means the
equipment used specifically for the purpose of delivering
electricity to an electric vehicle, including hydrogen fuel
cells or solar refueling infrastructure.
    "Electric vehicle power supply manufacturer" means a new
or existing manufacturer that is focused on reequipping,
expanding, or establishing a manufacturing facility in
Illinois that produces electric vehicle power supply equipment
used for the purpose of delivering electricity to an electric
vehicle, including hydrogen fuel cell or solar refueling
infrastructure.
    "Energy Transition Area" means a county with less than
100,000 people or a municipality that contains one or more of
the following:
        (1) a fossil fuel plant that was retired from service
    or has significant reduced service within 6 years before
    the time of the application or will be retired or have
    service significantly reduced within 6 years following the
    time of the application; or
        (2) a coal mine that was closed or had operations
    significantly reduced within 6 years before the time of
    the application or is anticipated to be closed or have
    operations significantly reduced within 6 years following
    the time of the application.
    "Full-time employee" means an individual who is employed
for consideration for at least 35 hours each week or who
renders any other standard of service generally accepted by
industry custom or practice as full-time employment. An
individual for whom a W-2 is issued by a Professional Employer
Organization (PEO) is a full-time employee if employed in the
service of the applicant for consideration for at least 35
hours each week.
    "Incremental income tax" means the total amount withheld
during the taxable year from the compensation of new employees
and, if applicable, retained employees under Article 7 of the
Illinois Income Tax Act arising from employment at a project
that is the subject of an agreement.
    "Institution of higher education" or "institution" means
any accredited public or private university, college,
community college, business, technical, or vocational school,
or other accredited educational institution offering degrees
and instruction beyond the secondary school level.
    "Minority person" means a minority person as defined in
the Business Enterprise for Minorities, Women, and Persons
with Disabilities Act.
    "New employee" means a newly-hired full-time employee
employed to work at the project site and whose work is directly
related to the project.
    "Noncompliance date" means, in the case of a taxpayer that
is not complying with the requirements of the agreement or the
provisions of this Act, the day following the last date upon
which the taxpayer was in compliance with the requirements of
the agreement and the provisions of this Act, as determined by
the Director, pursuant to Section 70.
    "Pass-through entity" means an entity that is exempt from
the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
    "Placed in service" means the state or condition of
readiness, availability for a specifically assigned function,
and the facility is constructed and ready to conduct its
facility operations to manufacture goods.
    "Professional employer organization" (PEO) means an
employee leasing company, as defined in Section 206.1 of the
Illinois Unemployment Insurance Act.
    "Program" means the Reimagining Electric Vehicles in
Illinois Program (the REV Illinois Program) established in
this Act.
    "Project" or "REV Illinois Project" means a for-profit
economic development activity for the manufacture of electric
vehicles, electric vehicle component parts, or electric
vehicle power supply equipment which is designated by the
Department as a REV Illinois Project and is the subject of an
agreement.
    "Recycling facility" means a location at which the
taxpayer disposes of batteries and other component parts in
manufacturing of electric vehicles, electric vehicle component
parts, or electric vehicle power supply equipment.
    "Related member" means a person that, with respect to the
taxpayer during any portion of the taxable year, is any one of
the following:
        (1) An individual stockholder, if the stockholder and
    the members of the stockholder's family (as defined in
    Section 318 of the Internal Revenue Code) own directly,
    indirectly, beneficially, or constructively, in the
    aggregate, at least 50% of the value of the taxpayer's
    outstanding stock.
        (2) A partnership, estate, trust and any partner or
    beneficiary, if the partnership, estate, or trust, and its
    partners or beneficiaries own directly, indirectly,
    beneficially, or constructively, in the aggregate, at
    least 50% of the profits, capital, stock, or value of the
    taxpayer.
        (3) A corporation, and any party related to the
    corporation in a manner that would require an attribution
    of stock from the corporation under the attribution rules
    of Section 318 of the Internal Revenue Code, if the
    Taxpayer owns directly, indirectly, beneficially, or
    constructively at least 50% of the value of the
    corporation's outstanding stock.
        (4) A corporation and any party related to that
    corporation in a manner that would require an attribution
    of stock from the corporation to the party or from the
    party to the corporation under the attribution rules of
    Section 318 of the Internal Revenue Code, if the
    corporation and all such related parties own in the
    aggregate at least 50% of the profits, capital, stock, or
    value of the taxpayer.
        (5) A person to or from whom there is an attribution of
    stock ownership in accordance with Section 1563(e) of the
    Internal Revenue Code, except, for purposes of determining
    whether a person is a related member under this paragraph,
    20% shall be substituted for 5% wherever 5% appears in
    Section 1563(e) of the Internal Revenue Code.
    "Retained employee" means a full-time employee employed by
the taxpayer prior to the term of the Agreement who continues
to be employed during the term of the agreement whose job
duties are directly and substantially related to the project.
For purposes of this definition, "directly and substantially
related to the project" means at least two-thirds of the
employee's job duties must be directly related to the project
and the employee must devote at least two-thirds of his or her
time to the project. The term "retained employee" does not
include any individual who has a direct or an indirect
ownership interest of at least 5% in the profits, equity,
capital, or value of the taxpayer or a child, grandchild,
parent, or spouse, other than a spouse who is legally
separated from the individual, of any individual who has a
direct or indirect ownership of at least 5% in the profits,
equity, capital, or value of the taxpayer.
    "REV Illinois credit" means a credit agreed to between the
Department and the applicant under this Act that is based on
the incremental income tax attributable to new employees and,
if applicable, retained employees, and on training costs for
such employees at the applicant's project.
    "REV construction jobs credit" means a credit agreed to
between the Department and the applicant under this Act that
is based on the incremental income tax attributable to
construction wages paid in connection with construction of the
project facilities.
    "Statewide baseline" means the total number of full-time
employees of the applicant and any related member employed by
such entities at the time of application for incentives under
this Act.
    "Taxpayer" means an individual, corporation, partnership,
or other entity that has a legal obligation to pay Illinois
income taxes and file an Illinois income tax return.
    "Training costs" means costs incurred to upgrade the
technological skills of full-time employees in Illinois and
includes: curriculum development; training materials
(including scrap product costs); trainee domestic travel
expenses; instructor costs (including wages, fringe benefits,
tuition and domestic travel expenses); rent, purchase or lease
of training equipment; and other usual and customary training
costs. "Training costs" do not include costs associated with
travel outside the United States (unless the Taxpayer receives
prior written approval for the travel by the Director based on
a showing of substantial need or other proof the training is
not reasonably available within the United States), wages and
fringe benefits of employees during periods of training, or
administrative cost related to full-time employees of the
taxpayer.
    "Underserved area" means any geographic areas as defined
in Section 5-5 of the Economic Development for a Growing
Economy Tax Credit Act.
(Source: P.A. 102-669, eff. 11-16-21.)
 
    (20 ILCS 686/20)
    Sec. 20. REV Illinois Program; project applications.
    (a) The Reimagining Electric Vehicles in Illinois (REV
Illinois) Program is hereby established and shall be
administered by the Department. The Program will provide
financial incentives to any one or more of the following: (1)
eligible manufacturers of electric vehicles, electric vehicle
component parts, and electric vehicle power supply equipment;
(2) battery recycling and reuse manufacturers; or (3) battery
raw materials refining service providers.
    (b) Any taxpayer planning a project to be located in
Illinois may request consideration for designation of its
project as a REV Illinois Project, by formal written letter of
request or by formal application to the Department, in which
the applicant states its intent to make at least a specified
level of investment and intends to hire a specified number of
full-time employees at a designated location in Illinois. As
circumstances require, the Department shall require a formal
application from an applicant and a formal letter of request
for assistance.
    (c) In order to qualify for credits under the REV Illinois
Program, an Applicant must:
        (1) for an electric vehicle manufacturer:
            (A) make an investment of at least $1,500,000,000
        in capital improvements at the project site;
            (B) to be placed in service within the State
        within a 60-month period after approval of the
        application; and
            (C) create at least 500 new full-time employee
        jobs; or
        (2) for an electric vehicle component parts
    manufacturer:
            (A) make an investment of at least $300,000,000 in
        capital improvements at the project site;
            (B) manufacture one or more parts that are
        primarily used for electric vehicle manufacturing;
            (C) to be placed in service within the State
        within a 60-month period after approval of the
        application; and
            (D) create at least 150 new full-time employee
        jobs; or
        (3) for an electric vehicle manufacturer, an electric
    vehicle power supply equipment manufacturer Manufacturer,
    an or electric vehicle component part manufacturer that
    does not qualify quality under paragraph (2) above, a
    battery recycling and reuse manufacturer, or a battery raw
    materials refining service provider:
            (A) make an investment of at least $20,000,000 in
        capital improvements at the project site;
            (B) for electric vehicle component part
        manufacturers, manufacture one or more parts that are
        primarily used for electric vehicle manufacturing;
            (C) to be placed in service within the State
        within a 48-month period after approval of the
        application; and
            (D) create at least 50 new full-time employee
        jobs; or
        (4) for an electric vehicle manufacturer or electric
    vehicle component parts manufacturer with existing
    operations within Illinois that intends to convert or
    expand, in whole or in part, the existing facility from
    traditional manufacturing to primarily electric vehicle
    manufacturing, electric vehicle component parts
    manufacturing, or electric vehicle power supply equipment
    manufacturing:
            (A) make an investment of at least $100,000,000 in
        capital improvements at the project site;
            (B) to be placed in service within the State
        within a 60-month period after approval of the
        application; and
            (C) create the lesser of 75 new full-time employee
        jobs or new full-time employee jobs equivalent to 10%
        of the Statewide baseline applicable to the taxpayer
        and any related member at the time of application.
    (d) For agreements entered into prior to the effective
date of this amendatory Act of the 102nd General Assembly, for
For any applicant creating the full-time employee jobs noted
in subsection (c), those jobs must have a total compensation
equal to or greater than 120% of the average wage paid to
full-time employees in the county where the project is
located, as determined by the U.S. Bureau of Labor Statistics.
For agreements entered into on or after the effective date of
this amendatory Act of the 102nd General Assembly, for any
applicant creating the full-time employee jobs noted in
subsection (c), those jobs must have a compensation equal to
or greater than 120% of the average wage paid to full-time
employees in a similar position within an occupational group
in the county where the project is located, as determined by
the U.S. Bureau of Labor Statistics.
    (e) For any applicant, within 24 months after being placed
in service, it must certify to the Department that it is carbon
neutral or has attained certification under one of more of the
following green building standards:
        (1) BREEAM for New Construction or BREEAM In-Use;
        (2) ENERGY STAR;
        (3) Envision;
        (4) ISO 50001 - energy management;
        (5) LEED for Building Design and Construction or LEED
    for Building Operations and Maintenance;
        (6) Green Globes for New Construction or Green Globes
    for Existing Buildings; or
        (7) UL 3223.
    (f) Each applicant must outline its hiring plan and
commitment to recruit and hire full-time employee positions at
the project site. The hiring plan may include a partnership
with an institution of higher education to provide
internships, including, but not limited to, internships
supported by the Clean Jobs Workforce Network Program, or
full-time permanent employment for students at the project
site. Additionally, the applicant may create or utilize
participants from apprenticeship programs that are approved by
and registered with the United States Department of Labor's
Bureau of Apprenticeship and Training. The Applicant may apply
for apprenticeship education expense credits in accordance
with the provisions set forth in 14 Ill. Admin. Code 522. Each
applicant is required to report annually, on or before April
15, on the diversity of its workforce in accordance with
Section 50 of this Act. For existing facilities of applicants
under paragraph (3) of subsection (b) above, if the taxpayer
expects a reduction in force due to its transition to
manufacturing electric vehicle, electric vehicle component
parts, or electric vehicle power supply equipment, the plan
submitted under this Section must outline the taxpayer's plan
to assist with retraining its workforce aligned with the
taxpayer's adoption of new technologies and anticipated
efforts to retrain employees through employment opportunities
within the taxpayer's workforce.
    (g) Each applicant must demonstrate a contractual or other
relationship with a recycling facility, or demonstrate its own
recycling capabilities, at the time of application and report
annually a continuing contractual or other relationship with a
recycling facility and the percentage of batteries used in
electric vehicles recycled throughout the term of the
agreement.
    (h) A taxpayer may not enter into more than one agreement
under this Act with respect to a single address or location for
the same period of time. Also, a taxpayer may not enter into an
agreement under this Act with respect to a single address or
location for the same period of time for which the taxpayer
currently holds an active agreement under the Economic
Development for a Growing Economy Tax Credit Act. This
provision does not preclude the applicant from entering into
an additional agreement after the expiration or voluntary
termination of an earlier agreement under this Act or under
the Economic Development for a Growing Economy Tax Credit Act
to the extent that the taxpayer's application otherwise
satisfies the terms and conditions of this Act and is approved
by the Department. An applicant with an existing agreement
under the Economic Development for a Growing Economy Tax
Credit Act may submit an application for an agreement under
this Act after it terminates any existing agreement under the
Economic Development for a Growing Economy Tax Credit Act with
respect to the same address or location.
(Source: P.A. 102-669, eff. 11-16-21.)
 
ARTICLE 55. EARNED INCOME TAX CREDIT

 
    Section 55-5. The Illinois Income Tax Act is amended by
changing Section 212 as follows:
 
    (35 ILCS 5/212)
    Sec. 212. Earned income tax credit.
    (a) With respect to the federal earned income tax credit
allowed for the taxable year under Section 32 of the federal
Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
is entitled to a credit against the tax imposed by subsections
(a) and (b) of Section 201 in an amount equal to (i) 5% of the
federal tax credit for each taxable year beginning on or after
January 1, 2000 and ending prior to December 31, 2012, (ii)
7.5% of the federal tax credit for each taxable year beginning
on or after January 1, 2012 and ending prior to December 31,
2013, (iii) 10% of the federal tax credit for each taxable year
beginning on or after January 1, 2013 and beginning prior to
January 1, 2017, (iv) 14% of the federal tax credit for each
taxable year beginning on or after January 1, 2017 and
beginning prior to January 1, 2018, and (v) 18% of the federal
tax credit for each taxable year beginning on or after January
1, 2018 and beginning prior to January 1, 2023, and (vi) 20% of
the federal tax credit for each taxable year beginning on or
after January 1, 2023.
    For a non-resident or part-year resident, the amount of
the credit under this Section shall be in proportion to the
amount of income attributable to this State.
    (b) For taxable years beginning before January 1, 2003, in
no event shall a credit under this Section reduce the
taxpayer's liability to less than zero. For each taxable year
beginning on or after January 1, 2003, if the amount of the
credit exceeds the income tax liability for the applicable tax
year, then the excess credit shall be refunded to the
taxpayer. The amount of a refund shall not be included in the
taxpayer's income or resources for the purposes of determining
eligibility or benefit level in any means-tested benefit
program administered by a governmental entity unless required
by federal law.
    (b-5) For taxable years beginning on or after January 1,
2023, each individual taxpayer who has attained the age of 18
during the taxable year but has not yet attained the age of 25
is entitled to the credit under paragraph (a) based on the
federal tax credit for which the taxpayer would have been
eligible without regard to any age requirements that would
otherwise apply to individuals without a qualifying child in
Section 32(c)(1)(A)(ii) of the federal Internal Revenue Code.
    (b-10) For taxable years beginning on or after January 1,
2023, each individual taxpayer who has attained the age of 65
or older during the taxable year is entitled to the credit
under paragraph (a) based on the federal tax credit for which
the taxpayer would have been eligible without regard to any
age requirements that would otherwise apply to individuals
without a qualifying child in Section 32(c)(1)(A)(ii) of the
federal Internal Revenue Code.
    (b-15) For taxable years beginning on or after January 1,
2023, each individual taxpayer filing a return using an
individual taxpayer identification number (ITIN) as prescribed
under Section 6109 of the Internal Revenue Code, other than a
Social Security number issued pursuant to Section 205(c)(2)(A)
of the Social Security Act, is entitled to the credit under
paragraph (a) based on the federal tax credit for which they
would have been eligible without applying the restrictions
regarding social security numbers in Section 32(m) of the
federal Internal Revenue Code.
    (c) This Section is exempt from the provisions of Section
250.
(Source: P.A. 100-22, eff. 7-6-17.)
 
ARTICLE 60. GROCERIES

 
    Section 60-5. The State Finance Act is amended by adding
Section 5.971 as follows:
 
    (30 ILCS 105/5.971 new)
    Sec. 5.971. The Grocery Tax Replacement Fund. This Section
is repealed January 1, 2024.
 
    Section 60-10. The State Finance Act is amended by
changing Sections 6z-17 and 6z-18 and by adding Section 6z-130
as follows:
 
    (30 ILCS 105/6z-17)  (from Ch. 127, par. 142z-17)
    Sec. 6z-17. State and Local Sales Tax Reform Fund.
    (a) After deducting the amount transferred to the Tax
Compliance and Administration Fund under subsection (b), of
the money paid into the State and Local Sales Tax Reform Fund:
(i) subject to appropriation to the Department of Revenue,
Municipalities having 1,000,000 or more inhabitants shall
receive 20% and may expend such amount to fund and establish a
program for developing and coordinating public and private
resources targeted to meet the affordable housing needs of
low-income and very low-income households within such
municipality, (ii) 10% shall be transferred into the Regional
Transportation Authority Occupation and Use Tax Replacement
Fund, a special fund in the State treasury which is hereby
created, (iii) until July 1, 2013, subject to appropriation to
the Department of Transportation, the Madison County Mass
Transit District shall receive .6%, and beginning on July 1,
2013, subject to appropriation to the Department of Revenue,
0.6% shall be distributed each month out of the Fund to the
Madison County Mass Transit District, (iv) the following
amounts, plus any cumulative deficiency in such transfers for
prior months, shall be transferred monthly into the Build
Illinois Fund and credited to the Build Illinois Bond Account
therein:
Fiscal YearAmount
1990$2,700,000
19911,850,000
19922,750,000
19932,950,000
    From Fiscal Year 1994 through Fiscal Year 2025 the
transfer shall total $3,150,000 monthly, plus any cumulative
deficiency in such transfers for prior months, and (v) the
remainder of the money paid into the State and Local Sales Tax
Reform Fund shall be transferred into the Local Government
Distributive Fund and, except for municipalities with
1,000,000 or more inhabitants which shall receive no portion
of such remainder, shall be distributed, subject to
appropriation, in the manner provided by Section 2 of "An Act
in relation to State revenue sharing with local government
entities", approved July 31, 1969, as now or hereafter
amended. Municipalities with more than 50,000 inhabitants
according to the 1980 U.S. Census and located within the Metro
East Mass Transit District receiving funds pursuant to
provision (v) of this paragraph may expend such amounts to
fund and establish a program for developing and coordinating
public and private resources targeted to meet the affordable
housing needs of low-income and very low-income households
within such municipality.
    Moneys transferred from the Grocery Tax Replacement Fund
to the State and Local Sales Tax Reform Fund under Section
6z-130 shall be treated under this Section in the same manner
as if they had been remitted with the return on which they were
reported.
    (b) Beginning on the first day of the first calendar month
to occur on or after the effective date of this amendatory Act
of the 98th General Assembly, each month the Department of
Revenue shall certify to the State Comptroller and the State
Treasurer, and the State Comptroller shall order transferred
and the State Treasurer shall transfer from the State and
Local Sales Tax Reform Fund to the Tax Compliance and
Administration Fund, an amount equal to 1/12 of 5% of 20% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department of Revenue 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. The
amount distributed under subsection (a) each month shall first
be reduced by the amount transferred to the Tax Compliance and
Administration Fund under this subsection (b). Moneys
transferred to the Tax Compliance and Administration Fund
under this subsection (b) shall be used, subject to
appropriation, to fund additional auditors and compliance
personnel at the Department of Revenue.
(Source: P.A. 98-44, eff. 6-28-13; 98-1098, eff. 8-26-14.)
 
    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
    Sec. 6z-18. Local Government Tax Fund. A portion of the
money paid into the Local Government Tax Fund from sales of
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act and the Service Occupation Tax
Act, which occurred in municipalities, shall be distributed to
each municipality based upon the sales which occurred in that
municipality. The remainder shall be distributed to each
county based upon the sales which occurred in the
unincorporated area of that county.
    Moneys transferred from the Grocery Tax Replacement Fund
to the Local Government Tax Fund under Section 6z-130 shall be
treated under this Section in the same manner as if they had
been remitted with the return on which they were reported.
    A portion of the money paid into the Local Government Tax
Fund from the 6.25% general use tax 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 any agency of this State's government shall be
distributed to municipalities as provided in this paragraph.
Each municipality shall receive the amount attributable to
sales for which Illinois addresses for titling or registration
purposes are given as being in such municipality. The
remainder of the money paid into the Local Government Tax Fund
from such sales shall be distributed to counties. Each county
shall receive the amount attributable to sales for which
Illinois addresses for titling or registration purposes are
given as being located in the unincorporated area of such
county.
    A portion of the money paid into the Local Government Tax
Fund from the 6.25% general rate (and, beginning July 1, 2000
and through December 31, 2000, the 1.25% rate on motor fuel and
gasohol, and beginning on August 6, 2010 through August 15,
2010, the 1.25% rate on sales tax holiday items) on sales
subject to taxation under the Retailers' Occupation Tax Act
and the Service Occupation Tax Act, which occurred in
municipalities, shall be distributed to each municipality,
based upon the sales which occurred in that municipality. The
remainder shall be distributed to each county, based upon the
sales which occurred in the unincorporated area of such
county.
    For the purpose of determining allocation to the local
government unit, 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.
    Whenever the Department determines that a refund of money
paid into the Local Government Tax Fund should be made 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 Local
Government Tax Fund.
    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
during the second preceding calendar month for sales within a
STAR bond district and deposited into the Local Government Tax
Fund, less 3% of that amount, which shall be transferred 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 the Innovation
Development and Economy Act.
    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
and counties, the municipalities and counties to be those
entitled to distribution of taxes or penalties paid to the
Department during the second preceding calendar month. The
amount to be paid to each municipality or county shall be the
amount (not including credit memoranda) collected during the
second preceding calendar month by the Department and paid
into the Local Government Tax Fund, 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, and not
including any amount which the Department determines is
necessary to offset any amounts which are payable to a
different taxing body but were erroneously paid to the
municipality or county, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt, by the Comptroller, of the disbursement
certification to the municipalities and counties, 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.
    When certifying the amount of monthly disbursement to a
municipality or county under this Section, the Department
shall increase or decrease that amount by an amount necessary
to offset any misallocation of previous disbursements. The
offset amount shall be the amount erroneously disbursed within
the 6 months preceding the time a misallocation is discovered.
    The provisions directing the distributions from the
special fund in the State Treasury provided for in this
Section shall constitute an irrevocable and continuing
appropriation of all amounts as provided herein. The State
Treasurer and State Comptroller are hereby authorized to make
distributions as provided in this Section.
    In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from
a county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed from
the Local Government Tax Fund.
    As soon as possible after the effective date of this
amendatory Act of the 98th General Assembly, the State
Comptroller shall order and the State Treasurer shall transfer
$6,600,000 from the Local Government Tax Fund to the Illinois
State Medical Disciplinary Fund.
(Source: P.A. 100-1171, eff. 1-4-19.)
 
    (30 ILCS 105/6z-130 new)
    Sec. 6z-130. Grocery Tax Replacement Fund.
    (a) The Grocery Tax Replacement Fund is hereby created as
a special fund in the State Treasury.
    (b) On the effective date of this amendatory Act of the
102nd General Assembly, or as soon thereafter as practical,
but no later than June 30, 2022, the State Comptroller shall
direct and the State Treasurer shall transfer the sum of
$325,000,000 from the General Revenue Fund to the Grocery Tax
Replacement Fund.
    (c) On July 1, 2022, or as soon thereafter as practical,
the State Comptroller shall direct and the State Treasurer
shall transfer the sum of $75,000,000 from the General Revenue
Fund to the Grocery Tax Replacement Fund.
    (d) In addition to any other transfers that may be
provided for by law, beginning on the effective date of this
amendatory Act of the 102nd General Assembly and until
November 30, 2023, the Director may certify additional
transfer amounts needed beyond the amounts specified in
subsections (b) and (c) to cover any additional amounts needed
to equal the net revenue that, but for the reduction of the
rate to 0% in the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act under this amendatory Act of the 102nd General Assembly,
would have been realized if the items that are subject to the
rate reduction had been taxed at the 1% rate during the period
of the reduction. The State Comptroller shall direct and the
State Treasurer shall transfer the amounts certified by the
Director from the General Revenue Fund to the Grocery Tax
Replacement Fund.
    (e) In addition to any other transfers that may be
provided for by law, beginning on July 1, 2022 and until
December 1, 2023, at the direction of the Department of
Revenue, the State Comptroller shall direct and the State
Treasurer shall transfer from the Grocery Tax Replacement Fund
to the State and Local Sales Tax Reform Fund any amounts needed
to equal the net revenue that, but for the reduction of the
rate to 0% in the Use Tax Act and Service Use Tax Act under
this amendatory Act of the 102nd General Assembly, would have
been deposited into the State and Local Sales Tax Reform Fund
if the items that are subject to the rate reduction had been
taxed at the 1% rate during the period of the reduction.
    (f) In addition to any other transfers that may be
provided for by law, beginning on July 1, 2022 and until
December 1, 2023, at the direction of the Department of
Revenue, the State Comptroller shall direct and the State
Treasurer shall transfer from the Grocery Tax Replacement Fund
to the Local Government Tax Fund any amounts needed to equal
the net revenue that, but for the reduction of the rate to 0%
in the Service Occupation Tax Act and the Retailers'
Occupation Tax Act under this amendatory Act of the 102nd
General Assembly, would have been deposited into the Local
Government Tax Fund if the items that are subject to the rate
reduction had been taxed at the 1% rate during the period of
the reduction.
    (g) The State Comptroller shall direct and the State
Treasurer shall transfer the remaining balance in the Grocery
Tax Replacement Fund to the General Revenue Fund on December
1, 2023, or as soon thereafter as practical. Upon completion
of the transfer, the Grocery Tax Replacement Fund is
dissolved.
    (h) This Section is repealed on January 1, 2024.
 
    Section 60-15. The Use Tax Act is amended by changing
Sections 3-10, 3a, and 9 as follows:
 
    (35 ILCS 105/3-10)
    Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
either the selling price or the fair market value, if any, of
the tangible personal property. In all cases where property
functionally used or consumed is the same as the property that
was purchased at retail, then the tax is imposed on the selling
price of the property. In all cases where property
functionally used or consumed is a by-product or waste product
that has been refined, manufactured, or produced from property
purchased at retail, then the tax is imposed on the lower of
the fair market value, if any, of the specific property so used
in this State or on the selling price of the property purchased
at retail. For purposes of this Section "fair market value"
means the price at which property would change hands between a
willing buyer and a willing seller, neither being under any
compulsion to buy or sell and both having reasonable knowledge
of the relevant facts. The fair market value shall be
established by Illinois sales by the taxpayer of the same
property as that functionally used or consumed, or if there
are no such sales by the taxpayer, then comparable sales or
purchases of property of like kind and character in Illinois.
    Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
    Beginning on August 6, 2010 through August 15, 2010, with
respect to sales tax holiday items as defined in Section 3-6 of
this Act, the tax is imposed at the rate of 1.25%.
    With respect to gasohol, the tax imposed by this Act
applies to (i) 70% of the proceeds of sales made on or after
January 1, 1990, and before July 1, 2003, (ii) 80% of the
proceeds of sales made on or after July 1, 2003 and on or
before July 1, 2017, and (iii) 100% of the proceeds of sales
made thereafter. If, at any time, however, the tax under this
Act on sales of gasohol is imposed at the rate of 1.25%, then
the tax imposed by this Act applies to 100% of the proceeds of
sales of gasohol made during that time.
    With respect to majority blended ethanol fuel, the tax
imposed by this Act does not apply to the proceeds of sales
made on or after July 1, 2003 and on or before December 31,
2023 but applies to 100% of the proceeds of sales made
thereafter.
    With respect to biodiesel blends with no less than 1% and
no more than 10% biodiesel, the tax imposed by this Act applies
to (i) 80% of the proceeds of sales made on or after July 1,
2003 and on or before December 31, 2018 and (ii) 100% of the
proceeds of sales made thereafter. If, at any time, however,
the tax under this Act on sales of biodiesel blends with no
less than 1% and no more than 10% biodiesel is imposed at the
rate of 1.25%, then the tax imposed by this Act applies to 100%
of the proceeds of sales of biodiesel blends with no less than
1% and no more than 10% biodiesel made during that time.
    With respect to 100% biodiesel and biodiesel blends with
more than 10% but no more than 99% biodiesel, the tax imposed
by this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023 but
applies to 100% of the proceeds of sales made thereafter.
    Until July 1, 2022 and beginning again on July 1, 2023,
with With respect to food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption), the tax is imposed at the rate of 1%.
Beginning on July 1, 2022 and until July 1, 2023, with respect
to food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption), the tax is imposed at the rate of 0%.
    With respect to and prescription and nonprescription
medicines, drugs, medical appliances, products classified as
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,
until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including but not limited to soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size; but
"soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" do not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
    Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
label includes:
        (A) A "Drug Facts" panel; or
        (B) A statement of the "active ingredient(s)" with a
    list of those ingredients contained in the compound,
    substance or preparation.
    Beginning on the effective date of this amendatory Act of
the 98th General Assembly, "prescription and nonprescription
medicines and drugs" includes medical cannabis purchased from
a registered dispensing organization under the Compassionate
Use of Medical Cannabis Program Act.
    As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
    If the property that is purchased at retail from a
retailer is acquired outside Illinois and used outside
Illinois before being brought to Illinois for use here and is
taxable under this Act, the "selling price" on which the tax is
computed shall be reduced by an amount that represents a
reasonable allowance for depreciation for the period of prior
out-of-state use.
(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
102-4, eff. 4-27-21.)
 
    (35 ILCS 105/3a)  (from Ch. 120, par. 439.3a)
    Sec. 3a. The tax imposed by the Act shall when collected be
stated as a distinct item separate and apart from the selling
price of the tangible personal property. However, where it is
not possible to state the sales tax separately in situations
such as sales from vending machines or sales of liquor by the
drink the Department may by rule exempt such sales from this
requirement so long as purchasers are notified by a sign that
the tax is included in the selling price.
    In addition, retailers who sell items that would have been
taxed at the 1% rate but for the 0% rate imposed under this
amendatory Act of the 102nd General Assembly shall, to the
extent feasible, include the following statement on any cash
register tape, receipt, invoice, or sales ticket issued to
customers: "From July 1, 2022 through July 1, 2023, the State
of Illinois sales tax on groceries is 0%.". If it is not
feasible for the retailer to include the statement on any cash
register tape, receipt, invoice, or sales ticket issued to
customers, then the retailer shall post the statement on a
sign that is clearly visible to customers. The sign shall be no
smaller than 4 inches by 8 inches.
(Source: P.A. 84-229.)
 
    (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. When determining the discount allowed under this
Section, retailers shall include the amount of tax that would
have been due at the 1% rate but for the 0% rate imposed under
this amendatory Act of the 102nd General Assembly. 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. The return shall include the gross receipts on food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
and food that has been prepared for immediate consumption)
which were received during the preceding calendar month,
quarter, or year, as appropriate, and upon which tax would
have been due but for the 0% rate imposed under this amendatory
Act of the 102nd General Assembly. The return shall also
include the amount of tax that would have been due on food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
and food that has been prepared for immediate consumption) but
for the 0% rate imposed under this amendatory Act of the 102nd
General Assembly.
    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 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 and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers 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,
"aviation fuel" means jet fuel and aviation gasoline.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Notwithstanding any other provision of this Act to the
contrary, 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. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
0% in this amendatory Act of the 102nd General Assembly on food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
and food that has been prepared for immediate consumption) had
not occurred. For quarter monthly payments due under this
paragraph on or after July 1, 2023 and through June 30, 2024,
"25% of the taxpayer's liability for the same calendar month
of the preceding year" shall be determined as if the rate
reduction to 0% in this amendatory Act of the 102nd General
Assembly had not occurred. 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
2021300,000,000
2022300,000,000
2023300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034375,000,000
2035375,000,000
2036450,000,000
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.
    Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
    Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
        Fiscal Year............................Total Deposit
        2024....................................$200,000,000
        2025....................................$206,000,000
        2026....................................$212,200,000
        2027....................................$218,500,000
        2028....................................$225,100,000
        2029....................................$288,700,000
        2030....................................$298,900,000
        2031....................................$309,300,000
        2032....................................$320,100,000
        2033....................................$331,200,000
        2034....................................$341,200,000
        2035....................................$351,400,000
        2036....................................$361,900,000
        2037....................................$372,800,000
        2038....................................$384,000,000
        2039....................................$395,500,000
        2040....................................$407,400,000
        2041....................................$419,600,000
        2042....................................$432,200,000
        2043....................................$445,100,000
    Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the 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 Law 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; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
    Section 60-20. The Service Use Tax Act is amended by
changing Sections 3-10 and 9 as follows:
 
    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
    Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
the selling price of tangible personal property transferred as
an incident to the sale of service, but, for the purpose of
computing this tax, in no event shall the selling price be less
than the cost price of the property to the serviceman.
    Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
    With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act applies to (i) 70% of the selling price
of property transferred as an incident to the sale of service
on or after January 1, 1990, and before July 1, 2003, (ii) 80%
of the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
July 1, 2017, and (iii) 100% of the selling price thereafter.
If, at any time, however, the tax under this Act on sales of
gasohol, as defined in the Use Tax Act, is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of gasohol made during that time.
    With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
December 31, 2023 but applies to 100% of the selling price
thereafter.
    With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the selling
price of property transferred as an incident to the sale of
service on or after July 1, 2003 and on or before December 31,
2018 and (ii) 100% of the proceeds of the selling price
thereafter. If, at any time, however, the tax under this Act on
sales of biodiesel blends, as defined in the Use Tax Act, with
no less than 1% and no more than 10% biodiesel is imposed at
the rate of 1.25%, then the tax imposed by this Act applies to
100% of the proceeds of sales of biodiesel blends with no less
than 1% and no more than 10% biodiesel made during that time.
    With respect to 100% biodiesel, as defined in the Use Tax
Act, and biodiesel blends, as defined in the Use Tax Act, with
more than 10% but no more than 99% biodiesel, the tax imposed
by this Act does not apply to the proceeds of the selling price
of property transferred as an incident to the sale of service
on or after July 1, 2003 and on or before December 31, 2023 but
applies to 100% of the selling price thereafter.
    At the election of any registered serviceman 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 tax imposed by this Act shall be based on the
serviceman's cost price of the tangible personal property
transferred as an incident to the sale of those services.
    Until July 1, 2022 and beginning again on July 1, 2023, the
The tax shall be imposed at the rate of 1% on food prepared for
immediate consumption and transferred incident to a sale of
service subject to this Act or the Service Occupation Tax Act
by an entity licensed under the Hospital Licensing Act, the
Nursing Home Care Act, the Assisted Living and Shared Housing
Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. Until July 1, 2022
and beginning again on July 1, 2023, the The tax shall also be
imposed at the rate of 1% on food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption and is not otherwise included in this
paragraph).
    Beginning on July 1, 2022 and until July 1, 2023, the tax
shall be imposed at the rate of 0% on food prepared for
immediate consumption and transferred incident to a sale of
service subject to this Act or the Service Occupation Tax Act
by an entity licensed under the Hospital Licensing Act, the
Nursing Home Care Act, the Assisted Living and Shared Housing
Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. Beginning on July 1,
2022 and until July 1, 2023, the tax shall also be imposed at
the rate of 0% on food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption and is not otherwise included in this
paragraph).
    The tax shall also be imposed at the rate of 1% on and
prescription and nonprescription medicines, drugs, medical
appliances, products classified as Class III medical devices
by the United States Food and Drug Administration that are
used for cancer treatment pursuant to a prescription, as well
as any accessories and components related to those devices,
modifications to a motor vehicle for the purpose of rendering
it usable by a person with a disability, and insulin, blood
sugar testing materials, syringes, and needles used by human
diabetics. For the purposes of this Section, until September
1, 2009: the term "soft drinks" means any complete, finished,
ready-to-use, non-alcoholic drink, whether carbonated or not,
including but not limited to soda water, cola, fruit juice,
vegetable juice, carbonated water, and all other preparations
commonly known as soft drinks of whatever kind or description
that are contained in any closed or sealed bottle, can,
carton, or container, regardless of size; but "soft drinks"
does not include coffee, tea, non-carbonated water, infant
formula, milk or milk products as defined in the Grade A
Pasteurized Milk and Milk Products Act, or drinks containing
50% or more natural fruit or vegetable juice.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" do not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
    Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
label includes:
        (A) A "Drug Facts" panel; or
        (B) A statement of the "active ingredient(s)" with a
    list of those ingredients contained in the compound,
    substance or preparation.
    Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and
drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
    As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
    If the property that is acquired from a serviceman is
acquired outside Illinois and used outside Illinois before
being brought to Illinois for use here and is taxable under
this Act, the "selling price" on which the tax is computed
shall be reduced by an amount that represents a reasonable
allowance for depreciation for the period of prior
out-of-state use.
(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
    (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. When
determining the discount allowed under this Section,
servicemen shall include the amount of tax that would have
been due at the 1% rate but for the 0% rate imposed under this
amendatory Act of the 102nd General Assembly. The discount
under this Section is not allowed for the 1.25% portion of
taxes paid on aviation fuel that is subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
discount allowed under this Section is allowed only for
returns that are filed in the manner required by this Act. The
Department may disallow the discount for servicemen whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. 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. The
return shall include the gross receipts which were received
during the preceding calendar month or quarter on the
following items upon which tax would have been due but for the
0% rate imposed under this amendatory Act of the 102nd General
Assembly: (i) food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption); and (ii) food prepared for immediate
consumption and transferred incident to a sale of service
subject to this Act or the Service Occupation Tax Act by an
entity licensed under the Hospital Licensing Act, the Nursing
Home Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act. The return shall also include
the amount of tax that would have been due on the items listed
in the previous sentence but for the 0% rate imposed under this
amendatory Act of the 102nd General Assembly.
    On and after January 1, 2018, with respect to servicemen
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in business as a serviceman in this
    State;
        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 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 tax on a separate aviation fuel
tax return. The requirements related to the return shall be as
otherwise provided in this Section. Notwithstanding any other
provisions of this Act to the contrary, servicemen 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, "aviation fuel" means jet fuel and
aviation gasoline.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
    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
2021300,000,000
2022300,000,000
2023300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034375,000,000
2035375,000,000
2036450,000,000
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.
    Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
    Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
        Fiscal Year............................Total Deposit
        2024....................................$200,000,000
        2025....................................$206,000,000
        2026....................................$212,200,000
        2027....................................$218,500,000
        2028....................................$225,100,000
        2029....................................$288,700,000
        2030....................................$298,900,000
        2031....................................$309,300,000
        2032....................................$320,100,000
        2033....................................$331,200,000
        2034....................................$341,200,000
        2035....................................$351,400,000
        2036....................................$361,900,000
        2037....................................$372,800,000
        2038....................................$384,000,000
        2039....................................$395,500,000
        2040....................................$407,400,000
        2041....................................$419,600,000
        2042....................................$432,200,000
        2043....................................$445,100,000
    Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the 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 Law 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; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
    Section 60-25. The Service Occupation Tax Act is amended
by changing Sections 3-10 and 9 as follows:
 
    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
    Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
the "selling price", as defined in Section 2 of the Service Use
Tax Act, of the tangible personal property. For the purpose of
computing this tax, in no event shall the "selling price" be
less than the cost price to the serviceman of the tangible
personal property transferred. The selling price of each item
of tangible personal property transferred as an incident of a
sale of service may be shown as a distinct and separate item on
the serviceman's billing to the service customer. If the
selling price is not so shown, the selling price of the
tangible personal property is deemed to be 50% of the
serviceman's entire billing to the service customer. When,
however, a serviceman contracts to design, develop, and
produce special order machinery or equipment, the tax imposed
by this Act shall be based on the serviceman's cost price of
the tangible personal property transferred incident to the
completion of the contract.
    Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
    With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act shall apply to (i) 70% of the cost
price of property transferred as an incident to the sale of
service on or after January 1, 1990, and before July 1, 2003,
(ii) 80% of the selling price of property transferred as an
incident to the sale of service on or after July 1, 2003 and on
or before July 1, 2017, and (iii) 100% of the cost price
thereafter. If, at any time, however, the tax under this Act on
sales of gasohol, as defined in the Use Tax Act, is imposed at
the rate of 1.25%, then the tax imposed by this Act applies to
100% of the proceeds of sales of gasohol made during that time.
    With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
December 31, 2023 but applies to 100% of the selling price
thereafter.
    With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the selling
price of property transferred as an incident to the sale of
service on or after July 1, 2003 and on or before December 31,
2018 and (ii) 100% of the proceeds of the selling price
thereafter. If, at any time, however, the tax under this Act on
sales of biodiesel blends, as defined in the Use Tax Act, with
no less than 1% and no more than 10% biodiesel is imposed at
the rate of 1.25%, then the tax imposed by this Act applies to
100% of the proceeds of sales of biodiesel blends with no less
than 1% and no more than 10% biodiesel made during that time.
    With respect to 100% biodiesel, as defined in the Use Tax
Act, and biodiesel blends, as defined in the Use Tax Act, with
more than 10% but no more than 99% biodiesel material, the tax
imposed by this Act does not apply to the proceeds of the
selling price of property transferred as an incident to the
sale of service on or after July 1, 2003 and on or before
December 31, 2023 but applies to 100% of the selling price
thereafter.
    At the election of any registered serviceman 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 tax imposed by this Act shall be based on the
serviceman's cost price of the tangible personal property
transferred incident to the sale of those services.
    Until July 1, 2022 and beginning again on July 1, 2023, the
The tax shall be imposed at the rate of 1% on food prepared for
immediate consumption and transferred incident to a sale of
service subject to this Act or the Service Use Occupation Tax
Act by an entity licensed under the Hospital Licensing Act,
the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. Until July 1, 2022
and beginning again on July 1, 2023, the The tax shall also be
imposed at the rate of 1% on food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption and is not otherwise included in this
paragraph).
    Beginning on July 1, 2022 and until July 1, 2023, the tax
shall be imposed at the rate of 0% on food prepared for
immediate consumption and transferred incident to a sale of
service subject to this Act or the Service Use Tax Act by an
entity licensed under the Hospital Licensing Act, the Nursing
Home Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act. Beginning July 1, 2022 and
until July 1, 2023, the tax shall also be imposed at the rate
of 0% on food for human consumption that is to be consumed off
the premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption and is not otherwise included in this paragraph).
    The tax shall also be imposed at the rate of 1% on and
prescription and nonprescription medicines, drugs, medical
appliances, products classified as Class III medical devices
by the United States Food and Drug Administration that are
used for cancer treatment pursuant to a prescription, as well
as any accessories and components related to those devices,
modifications to a motor vehicle for the purpose of rendering
it usable by a person with a disability, and insulin, blood
sugar testing materials, syringes, and needles used by human
diabetics. For the purposes of this Section, until September
1, 2009: the term "soft drinks" means any complete, finished,
ready-to-use, non-alcoholic drink, whether carbonated or not,
including but not limited to soda water, cola, fruit juice,
vegetable juice, carbonated water, and all other preparations
commonly known as soft drinks of whatever kind or description
that are contained in any closed or sealed can, carton, or
container, regardless of size; but "soft drinks" does not
include coffee, tea, non-carbonated water, infant formula,
milk or milk products as defined in the Grade A Pasteurized
Milk and Milk Products Act, or drinks containing 50% or more
natural fruit or vegetable juice.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" do not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
    Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
label includes:
        (A) A "Drug Facts" panel; or
        (B) A statement of the "active ingredient(s)" with a
    list of those ingredients contained in the compound,
    substance or preparation.
    Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and
drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
    As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
    (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. When determining the
discount allowed under this Section, servicemen shall include
the amount of tax that would have been due at the 1% rate but
for the 0% rate imposed under this amendatory Act of the 102nd
General Assembly. The discount under this Section is not
allowed for the 1.25% portion of taxes paid on aviation fuel
that is subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133. The discount allowed under this
Section is allowed only for returns that are filed in the
manner required by this Act. The Department may disallow the
discount for servicemen whose certificate of registration is
revoked at the time the return is filed, but only if the
Department's decision to revoke the certificate of
registration has become final.
    Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the serviceman, in collecting the tax may collect, for
each tax return period, only the tax applicable to the part of
the selling price actually received during such tax return
period.
    Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar
month in accordance with reasonable rules and regulations to
be promulgated by the Department of Revenue. Such return shall
be filed on a form prescribed by the Department and shall
contain such information as the Department may reasonably
require. The return shall include the gross receipts which
were received during the preceding calendar month or quarter
on the following items upon which tax would have been due but
for the 0% rate imposed under this amendatory Act of the 102nd
General Assembly: (i) food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption); and (ii) food prepared for immediate
consumption and transferred incident to a sale of service
subject to this Act or the Service Use Tax Act by an entity
licensed under the Hospital Licensing Act, the Nursing Home
Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act. The return shall also include
the amount of tax that would have been due on the items listed
in the previous sentence but for the 0% rate imposed under this
amendatory Act of the 102nd General Assembly.
    On and after January 1, 2018, with respect to servicemen
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in business as a serviceman in this
    State;
        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 serviceman required or authorized to collect the tax
herein imposed on aviation fuel acquired as an incident to the
purchase of a service in this State during the preceding
calendar month shall, instead of reporting and paying tax as
otherwise required by this Section, report and pay such tax on
a separate aviation fuel tax return. The requirements related
to the return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, servicemen transferring aviation fuel incident to
sales of service shall file all aviation fuel tax returns and
shall make all aviation fuel tax payments by electronic means
in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
    Prior to October 1, 2003, and on and after September 1,
2004 a serviceman may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Service Use
Tax as provided in Section 3-70 of the Service Use Tax Act if
the purchaser provides the appropriate documentation as
required by Section 3-70 of the Service Use Tax Act. A
Manufacturer's Purchase Credit certification, accepted prior
to October 1, 2003 or on or after September 1, 2004 by a
serviceman as provided in Section 3-70 of the Service Use Tax
Act, may be used by that serviceman to satisfy Service
Occupation Tax liability in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax
liability imposed under this Act, including any audit
liability.
    If the serviceman's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February and March of a given year being
due by April 20 of such year; with the return for April, May
and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
    If the serviceman's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 20 of the following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
    Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    Where a serviceman collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the serviceman refunds the selling price thereof
to the purchaser, such serviceman shall also refund, to the
purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax
to the purchaser, the serviceman may deduct the amount of the
tax so refunded by him to the purchaser from any other Service
Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
Use Tax which such serviceman may be required to pay or remit
to the Department, as shown by such return, provided that the
amount of the tax to be deducted shall previously have been
remitted to the Department by such serviceman. If the
serviceman shall not previously have remitted the amount of
such tax to the Department, he shall be entitled to no
deduction hereunder upon refunding such tax to the purchaser.
    If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, the Use Tax Act or the Service Use Tax Act, to furnish all
the return information required by all said Acts on the one
form.
    Where the serviceman has more than one business registered
with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each
registered business.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund the revenue realized
for the preceding month from the 1% tax imposed under this Act.
    Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
revenue realized for the preceding month from the 6.25%
general rate on sales of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
    Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the revenue
realized for the preceding month from the 6.25% general rate
on transfers of tangible personal property other than aviation
fuel sold on or after December 1, 2019. This exception for
aviation fuel only applies for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
    For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
    Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
    Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Retailers' Occupation Tax Act an amount equal to
the average monthly deficit in the Underground Storage Tank
Fund during the prior year, as certified annually by the
Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Use Tax Act, and the Retailers'
Occupation Tax Act shall not exceed $18,000,000 in any State
fiscal year. As used in this paragraph, the "average monthly
deficit" shall be equal to the difference between the average
monthly claims for payment by the fund and the average monthly
revenues deposited into the fund, excluding payments made
pursuant to this paragraph.
    Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Account in
the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
 
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
2021300,000,000
2022300,000,000
2023300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034375,000,000
2035375,000,000
2036450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
    Subject to payment of amounts into the Capital Projects
Fund, the Build Illinois Fund, and the McCormick Place
Expansion Project Fund pursuant to the preceding paragraphs or
in any amendments thereto hereafter enacted, for aviation fuel
sold on or after December 1, 2019, the Department shall each
month deposit into the Aviation Fuel Sales Tax Refund Fund an
amount estimated by the Department to be required for refunds
of the 80% portion of the tax on aviation fuel under this Act.
The Department shall only deposit moneys into the Aviation
Fuel Sales Tax Refund Fund under this paragraph for so long as
the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a
25-year period, the Department shall each month pay into the
Energy Infrastructure Fund 80% of the net revenue realized
from the 6.25% general rate on the selling price of
Illinois-mined coal that was sold to an eligible business. For
purposes of this paragraph, the term "eligible business" means
a new electric generating facility certified pursuant to
Section 605-332 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois.
    Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department under the Use Tax Act,
the Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
    Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
    Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
        Fiscal Year............................Total Deposit
        2024....................................$200,000,000
        2025....................................$206,000,000
        2026....................................$212,200,000
        2027....................................$218,500,000
        2028....................................$225,100,000
        2029....................................$288,700,000
        2030....................................$298,900,000
        2031....................................$309,300,000
        2032....................................$320,100,000
        2033....................................$331,200,000
        2034....................................$341,200,000
        2035....................................$351,400,000
        2036....................................$361,900,000
        2037....................................$372,800,000
        2038....................................$384,000,000
        2039....................................$395,500,000
        2040....................................$407,400,000
        2041....................................$419,600,000
        2042....................................$432,200,000
        2043....................................$445,100,000
    Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, the Energy Infrastructure Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 16% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2022 and until July 1, 2023,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 32% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. Beginning July 1, 2023 and
until July 1, 2024, subject to the payment of amounts into the
County and Mass Transit District Fund, the Local Government
Tax Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, the
Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2025, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
the Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 64% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning on July
1, 2025, subject to the payment of amounts into the County and
Mass Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 80% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. As used in this paragraph
"motor fuel" has the meaning given to that term in Section 1.1
of the Motor Fuel Tax Law 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; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
    Section 60-30. The Retailers' Occupation Tax Act is
amended by changing Sections 2-10 and 3 as follows:
 
    (35 ILCS 120/2-10)
    Sec. 2-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
gross receipts from sales of tangible personal property made
in the course of business.
    Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
    Beginning on August 6, 2010 through August 15, 2010, with
respect to sales tax holiday items as defined in Section 2-8 of
this Act, the tax is imposed at the rate of 1.25%.
    Within 14 days after the effective date of this amendatory
Act of the 91st General Assembly, each retailer of motor fuel
and gasohol shall cause the following notice to be posted in a
prominently visible place on each retail dispensing device
that is used to dispense motor fuel or gasohol in the State of
Illinois: "As of July 1, 2000, the State of Illinois has
eliminated the State's share of sales tax on motor fuel and
gasohol through December 31, 2000. The price on this pump
should reflect the elimination of the tax." The notice shall
be printed in bold print on a sign that is no smaller than 4
inches by 8 inches. The sign shall be clearly visible to
customers. Any retailer who fails to post or maintain a
required sign through December 31, 2000 is guilty of a petty
offense for which the fine shall be $500 per day per each
retail premises where a violation occurs.
    With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act applies to (i) 70% of the proceeds of
sales made on or after January 1, 1990, and before July 1,
2003, (ii) 80% of the proceeds of sales made on or after July
1, 2003 and on or before July 1, 2017, and (iii) 100% of the
proceeds of sales made thereafter. If, at any time, however,
the tax under this Act on sales of gasohol, as defined in the
Use Tax Act, is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the proceeds of sales of
gasohol made during that time.
    With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the proceeds of sales made on or after July 1, 2003 and on
or before December 31, 2023 but applies to 100% of the proceeds
of sales made thereafter.
    With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the proceeds
of sales made on or after July 1, 2003 and on or before
December 31, 2018 and (ii) 100% of the proceeds of sales made
thereafter. If, at any time, however, the tax under this Act on
sales of biodiesel blends, as defined in the Use Tax Act, with
no less than 1% and no more than 10% biodiesel is imposed at
the rate of 1.25%, then the tax imposed by this Act applies to
100% of the proceeds of sales of biodiesel blends with no less
than 1% and no more than 10% biodiesel made during that time.
    With respect to 100% biodiesel, as defined in the Use Tax
Act, and biodiesel blends, as defined in the Use Tax Act, with
more than 10% but no more than 99% biodiesel, the tax imposed
by this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023 but
applies to 100% of the proceeds of sales made thereafter.
    Until July 1, 2022 and beginning again on July 1, 2023,
with With respect to food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption), the tax is imposed at the rate of 1%.
Beginning July 1, 2022 and until July 1, 2023, with respect to
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption), the tax is imposed at the rate of 0%.
    With respect to and prescription and nonprescription
medicines, drugs, medical appliances, products classified as
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,
until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including but not limited to soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size; but
"soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" do not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
    Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
label includes:
        (A) A "Drug Facts" panel; or
        (B) A statement of the "active ingredient(s)" with a
    list of those ingredients contained in the compound,
    substance or preparation.
    Beginning on the effective date of this amendatory Act of
the 98th General Assembly, "prescription and nonprescription
medicines and drugs" includes medical cannabis purchased from
a registered dispensing organization under the Compassionate
Use of Medical Cannabis Program Act.
    As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
102-4, eff. 4-27-21.)
 
    (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, including gross receipts on
    food for human consumption that is to be consumed off the
    premises where it is sold (other than alcoholic beverages,
    food consisting of or infused with adult use cannabis,
    soft drinks, and food that has been prepared for immediate
    consumption) which were received during the preceding
    calendar month or quarter and upon which tax would have
    been due but for the 0% rate imposed under this amendatory
    Act of the 102nd General Assembly;
        7. The amount of credit provided in Section 2d of this
    Act;
        8. The amount of tax due, including the amount of tax
    that would have been due on food for human consumption
    that is to be consumed off the premises where it is sold
    (other than alcoholic beverages, food consisting of or
    infused with adult use cannabis, soft drinks, and food
    that has been prepared for immediate consumption) but for
    the 0% rate imposed under this amendatory Act of the 102nd
    General Assembly;
        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 Purchase
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 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
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, 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, "aviation
fuel" means jet fuel and aviation gasoline.
    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. On and after January 1,
2021, a certified service provider, as defined in the Leveling
the Playing Field for Illinois Retail Act, filing the return
under this Section on behalf of a remote retailer shall, at the
time of such return, pay to the Department the amount of tax
imposed by this Act less a discount of 1.75%. A remote retailer
using a certified service provider to file a return on its
behalf, as provided in the Leveling the Playing Field for
Illinois Retail Act, is not eligible for the discount. When
determining the discount allowed under this Section, retailers
shall include the amount of tax that would have been due at the
1% rate but for the 0% rate imposed under this amendatory Act
of the 102nd General Assembly. The discount under this Section
is not allowed for the 1.25% portion of taxes paid on aviation
fuel that is subject to the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133. 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. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
0% in this amendatory Act of the 102nd General Assembly on food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
and food that has been prepared for immediate consumption) had
not occurred. For quarter monthly payments due under this
paragraph on or after July 1, 2023 and through June 30, 2024,
"25% of the taxpayer's liability for the same calendar month
of the preceding year" shall be determined as if the rate
reduction to 0% in this amendatory Act of the 102nd General
Assembly had not occurred. 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 for 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.
    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% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
    Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. Beginning 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
2021300,000,000
2022300,000,000
2023300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033375,000,000
2034375,000,000
2035375,000,000
2036450,000,000
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.
    Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
    Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
        Fiscal Year.............................Total Deposit
        2024.....................................$200,000,000
        2025....................................$206,000,000
        2026....................................$212,200,000
        2027....................................$218,500,000
        2028....................................$225,100,000
        2029....................................$288,700,000
        2030....................................$298,900,000
        2031....................................$309,300,000
        2032....................................$320,100,000
        2033....................................$331,200,000
        2034....................................$341,200,000
        2035....................................$351,400,000
        2036....................................$361,900,000
        2037....................................$372,800,000
        2038....................................$384,000,000
        2039....................................$395,500,000
        2040....................................$407,400,000
        2041....................................$419,600,000
        2042....................................$432,200,000
        2043....................................$445,100,000
    Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, the Energy Infrastructure Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 16% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2022 and until July 1, 2023,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 32% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. Beginning July 1, 2023 and
until July 1, 2024, subject to the payment of amounts into the
County and Mass Transit District Fund, the Local Government
Tax Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, the
Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2025, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
the Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 64% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning on July
1, 2025, subject to the payment of amounts into the County and
Mass Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 80% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. As used in this paragraph
"motor fuel" has the meaning given to that term in Section 1.1
of the Motor Fuel Tax Law 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. 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; 101-604, eff. 12-13-19;
101-636, eff. 6-10-20; 102-634, eff. 8-27-21; revised
12-7-21.)
 
    Section 60-35. 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 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, including
that portion of the net revenue that would have been realized
but for the reduction of the rate to 0% under this amendatory
Act of the 102nd General Assembly, that is deposited or, under
this amendatory Act of the 102nd General Assembly, transferred
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 (plus all of the local sales tax that
would have been paid but for the reduction of the rate to 0%
under this amendatory Act of the 102nd General Assembly) by
destination users, destination hotels, and entertainment users
that is in excess of the local sales tax paid (plus all of the
local sales tax that would have been paid but for the reduction
of the rate to 0% under this amendatory Act of the 102nd
General Assembly) 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 (plus the local sales tax
that would have been paid but for the reduction of the rate to
0% under this amendatory Act of the 102nd General Assembly) by
taxpayers that are not destination users, destination hotels,
or entertainment users that is in excess of the local sales tax
paid (plus the local sales tax that would have been paid but
for the reduction of the rate to 0% under this amendatory Act
of the 102nd General Assembly) 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;
101-604, eff. 12-13-19.)
 
    (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 (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). 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. 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 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), 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 (or at the 0% rate imposed under this amendatory Act of the
102nd General Assembly). 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. 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 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), 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 Aviation Trust Fund under
this Section 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;
101-604, eff. 12-13-19.)
 
    Section 60-40. The Counties Code is amended by changing
Sections 5-1006, 5-1006.5, 5-1006.7, and 5-1007 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 (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). 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. For purposes of this Section, "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
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; 101-604, eff. 12-13-19.)
 
    (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 (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). 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. For purposes of this Section,
"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 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 (or at the 0% rate
imposed under this amendatory Act of the 102nd General
Assembly). 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. For
purposes of this Section, "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 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.
    (g-5) Every county authorized to levy a tax under this
Section shall, before it levies such tax, establish a 7-member
mental health board, which shall have the same powers and
duties and be constituted in the same manner as a community
mental health board established under the Community Mental
Health Act. Proceeds of the tax under this Section that are
earmarked for mental health or substance abuse purposes shall
be deposited into a special county occupation tax fund for
mental health and substance abuse. The 7-member mental health
board established under this subsection shall administer the
special county occupation tax fund for mental health and
substance abuse in the same manner as the community mental
health board administers the community mental health fund
under the Community Mental Health Act.
    (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. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
101-275, eff. 8-9-19; 101-604, eff. 12-13-19; 102-379, eff.
1-1-22.)
 
    (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 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 (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). 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. For purposes of this Section,
"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 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), 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 (or
at the 0% rate imposed under this amendatory Act of the 102nd
General Assembly). 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. For purposes of this Section, "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 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), 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), 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), 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 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),
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), 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
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) 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) 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; 101-604, eff. 12-13-19.)
 
    (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 (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). 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. For purposes of this Section, "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), 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
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; 101-604, eff. 12-13-19.)
 
    Section 60-45. 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, 8-11-5, and 11-74.3-6 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 (or at the
0% rate imposed under this amendatory Act of the 102nd General
Assembly). 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. For purposes of this Section,
"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), 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
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; 101-604, eff. 12-13-19.)
 
    (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 (or at the 0% rate
imposed under this amendatory Act of the 102nd General
Assembly). 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. For purposes of this Section,
"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), 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 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 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; 101-604, eff. 12-13-19.)
 
    (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 (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). 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. For purposes of this Section, "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), 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 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; 101-604, eff. 12-13-19.)
 
    (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 (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). 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. For purposes of this Section, "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), 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 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; 101-604, eff. 12-13-19.)
 
    (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 (or at the 0% rate
imposed under this amendatory Act of the 102nd General
Assembly). 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. For purposes of this Section,
"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 taxes and
penalties so collected in a 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), 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 Sections 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.
    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 8-11-1.6 of this Act.
    Person subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
servicemen'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 that
servicemen are authorized to collect under the Service Use Tax
Act, under 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. The 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 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 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 Tax Compliance and Administration Fund,
and the General Revenue 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.
    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.
    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.
(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; 101-604, eff. 12-13-19.)
 
    (65 ILCS 5/8-11-5)  (from Ch. 24, par. 8-11-5)
    Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
Act. The corporate authorities of a home rule municipality may
impose a tax upon all persons engaged, in such municipality,
in the business of making sales of service at the same rate of
tax imposed pursuant to Section 8-11-1, 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 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 Retailers' Occupation Tax Act (or at the 0%
rate imposed under this amendatory Act of the 102nd General
Assembly). Beginning December 1, 2019, this tax may not be
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 shall be
excluded from tax. Each municipality must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act. For
purposes of this Section, "airport-related purposes" has the
meaning ascribed in Section 6z-20.2 of the State Finance Act.
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. 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 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), 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 (except that credit memoranda issued hereunder may not
be used to discharge any State tax liability), 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 municipality pursuant
to this Section unless such municipality also imposes a tax at
the same rate pursuant to Section 8-11-1 of this Act.
    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 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 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
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 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 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. 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.
    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 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. 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.
    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 which has superseded a civil township.
    This Section shall be known and may be cited as the 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; 101-604, eff. 12-13-19.)
 
    (65 ILCS 5/11-74.3-6)
    Sec. 11-74.3-6. Business district revenue and obligations;
business district tax allocation fund.
    (a) If the corporate authorities of a municipality have
approved a business district plan, have designated a business
district, and have elected to impose a tax by ordinance
pursuant to subsection (10) or (11) of Section 11-74.3-3, then
each year after the date of the approval of the ordinance but
terminating upon the date all business district project costs
and all obligations paying or reimbursing business district
project costs, if any, have been paid, but in no event later
than the dissolution date, 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 municipality
imposing the tax and all amounts generated by the hotel
operators' occupation tax shall be collected and the tax shall
be enforced by the municipality in the same manner as all hotel
operators' occupation taxes imposed in the municipality
imposing the tax. The corporate authorities of the
municipality shall deposit the proceeds of the taxes imposed
under subsections (10) and (11) of Section 11-74.3-3 into a
special fund of the municipality called the "[Name of]
Business District Tax Allocation Fund" for the purpose of
paying or reimbursing business district project costs and
obligations incurred in the payment of those costs.
    (b) The corporate authorities of a municipality that has
designated a business district under this Law may, by
ordinance, impose a Business District 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 business district at a
rate not to exceed 1% of the gross receipts from the sales made
in the course of such business, to be imposed only in 0.25%
increments. The tax may not be imposed on tangible personal
property taxed at the rate of 1% under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). 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 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. For purposes of this
Section, "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 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), 4, 5, 5a, 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.
    Persons subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability
under this subsection 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 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 business district 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 subsection for deposit into the business
district 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 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.
    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 subsection 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
from the business district retailers' occupation tax fund, the
municipalities to be those from which retailers have paid
taxes or penalties under this subsection 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 under this subsection 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 2% of that
amount (except the amount collected on aviation fuel sold on
or after December 1, 2019), 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 subsection, 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. Within 10 days
after receipt by the Comptroller of the disbursement
certification to the municipalities provided for in this
subsection 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
municipalities under this subsection shall be deposited into
the Business District Tax Allocation Fund by the municipality.
    An ordinance imposing or discontinuing the tax under this
subsection 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 subsection
are met, shall proceed to administer and enforce this
subsection 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
subsection are met, the Department shall proceed to administer
and enforce this subsection 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 subsection, until the municipality also
provides, in the manner prescribed by the Department, the
boundaries of the business district and each address in the
business district in such a way that the Department can
determine by its address whether a business is located in the
business district. The municipality must provide this boundary
and address information to the Department on or before April 1
for administration and enforcement of the tax under this
subsection by the Department beginning on the following July 1
and on or before October 1 for administration and enforcement
of the tax under this subsection 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 business district or address change, addition, or deletion
until the municipality reports the boundary change or address
change, addition, or deletion to the Department in the manner
prescribed by the Department. The municipality must provide
this boundary change information or address change, addition,
or deletion to the Department on or before April 1 for
administration and enforcement by the Department of the change
beginning on the following July 1 and on or before October 1
for administration and enforcement by the Department of the
change beginning on the following January 1. The retailers in
the business district shall be responsible for charging the
tax imposed under this subsection. If a retailer is
incorrectly included or excluded from the list of those
required to collect the tax under this subsection, both the
Department of Revenue and the retailer shall be held harmless
if they reasonably relied on information provided by the
municipality.
    A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
    When certifying the amount of a monthly disbursement to a
municipality under this subsection, 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 subsection shall be construed to authorize
the 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.
    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
Business District Service Occupation Tax shall also be imposed
upon all persons engaged, in the business 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 business 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 business 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 (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). 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 District 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. 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 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 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 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; 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 business 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 municipality), 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), 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 municipality), 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.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman'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 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
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 business district 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, penalties, and interest
collected under this subsection for deposit into the business
district 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 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.
    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 subsection 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
from the business district retailers' occupation tax fund, the
municipalities to be those from which suppliers and servicemen
have paid taxes or penalties under this subsection 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 under this subsection during the second
preceding calendar month by the Department, less 2% of that
amount (except the amount collected on aviation fuel sold on
or after December 1, 2019), 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 subsection, 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. Within 10 days
after receipt, by the Comptroller, of the disbursement
certification to the municipalities, provided for in this
subsection 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 proceeds of the tax paid to
municipalities under this subsection shall be deposited into
the Business District Tax Allocation Fund by the municipality.
    An ordinance imposing or discontinuing the tax under this
subsection 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 subsection
are met, shall proceed to administer and enforce this
subsection 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 conditions of this subsection
are met, the Department shall proceed to administer and
enforce this subsection 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 subsection, until the municipality also
provides, in the manner prescribed by the Department, the
boundaries of the business district in such a way that the
Department can determine by its address whether a business is
located in the business district. The municipality must
provide this boundary and address information to the
Department on or before April 1 for administration and
enforcement of the tax under this subsection by the Department
beginning on the following July 1 and on or before October 1
for administration and enforcement of the tax under this
subsection 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 business
district or address change, addition, or deletion until the
municipality reports the boundary change or address change,
addition, or deletion to the Department in the manner
prescribed by the Department. The municipality must provide
this boundary change information or address change, addition,
or deletion to the Department on or before April 1 for
administration and enforcement by the Department of the change
beginning on the following July 1 and on or before October 1
for administration and enforcement by the Department of the
change beginning on the following January 1. The retailers in
the business district shall be responsible for charging the
tax imposed under this subsection. If a retailer is
incorrectly included or excluded from the list of those
required to collect the tax under this subsection, both the
Department of Revenue and the retailer shall be held harmless
if they reasonably relied on information provided by the
municipality.
    A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
    Nothing in this subsection shall be construed to authorize
the 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 the
State.
    If a tax is imposed under this subsection (c), a tax shall
also be imposed under subsection (b) of this Section.
    (d) By ordinance, a municipality that has designated a
business district under this Law may impose an occupation tax
upon all persons engaged in the business district in the
business of renting, leasing, or letting rooms in a hotel, as
defined in the Hotel Operators' Occupation Tax Act, at a rate
not to exceed 1% of the gross rental receipts from the renting,
leasing, or letting of hotel rooms within the business
district, to be imposed only in 0.25% increments, excluding,
however, from gross rental receipts the proceeds of renting,
leasing, or letting to permanent residents of a hotel, as
defined in the Hotel Operators' Occupation Tax Act, and
proceeds from the tax imposed under subsection (c) of Section
13 of the Metropolitan Pier and Exposition Authority Act.
    The tax imposed by the municipality under this subsection
and all civil penalties that may be assessed as an incident to
that tax shall be collected and enforced by the municipality
imposing the tax. The municipality 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 provided in this
subsection, 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 municipality and persons who are
subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers, and duties, shall be
subject to the same conditions, restrictions, limitations,
penalties, and definitions of terms, and shall employ the same
modes of procedure as are employed with respect to a tax
adopted by the municipality under Section 8-3-14 of this Code.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
tax liability for that tax by separately stating that tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes imposed under the Hotel
Operators' Occupation Tax Act, and with any other tax.
    Nothing in this subsection 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.
    The proceeds of the tax imposed under this subsection
shall be deposited into the Business District Tax Allocation
Fund.
    (e) Obligations secured by the Business District Tax
Allocation Fund may be issued to provide for the payment or
reimbursement of business district project costs. Those
obligations, when so issued, shall be retired in the manner
provided in the ordinance authorizing the issuance of those
obligations by the receipts of taxes imposed pursuant to
subsections (10) and (11) of Section 11-74.3-3 and by other
revenue designated or pledged by the municipality. A
municipality may in the ordinance pledge, for any period of
time up to and including the dissolution date, all or any part
of the funds in and to be deposited in the Business District
Tax Allocation Fund to the payment of business district
project costs and obligations. Whenever a municipality pledges
all of the funds to the credit of a business district tax
allocation fund to secure obligations issued or to be issued
to pay or reimburse business district project costs, the
municipality may specifically provide that funds remaining to
the credit of such business district tax allocation fund after
the payment of such obligations shall be accounted for
annually and shall be deemed to be "surplus" funds, and such
"surplus" funds shall be expended by the municipality for any
business district project cost as approved in the business
district plan. Whenever a municipality pledges less than all
of the monies to the credit of a business district tax
allocation fund to secure obligations issued or to be issued
to pay or reimburse business district project costs, the
municipality shall provide that monies to the credit of the
business district tax allocation fund and not subject to such
pledge or otherwise encumbered or required for payment of
contractual obligations for specific business district project
costs shall be calculated annually and shall be deemed to be
"surplus" funds, and such "surplus" funds shall be expended by
the municipality for any business district project cost as
approved in the business district plan.
    No obligation issued pursuant to this Law and secured by a
pledge of all or any portion of any revenues received or to be
received by the municipality from the imposition of taxes
pursuant to subsection (10) of Section 11-74.3-3, shall be
deemed to constitute an economic incentive agreement under
Section 8-11-20, notwithstanding the fact that such pledge
provides for the sharing, rebate, or payment of retailers'
occupation taxes or service occupation taxes imposed pursuant
to subsection (10) of Section 11-74.3-3 and received or to be
received by the municipality from the development or
redevelopment of properties in the business district.
    Without limiting the foregoing in this Section, the
municipality may further secure obligations secured by the
business district tax allocation fund with a pledge, for a
period not greater than the term of the obligations and in any
case not longer than the dissolution date, of any part or any
combination of the following: (i) net revenues of all or part
of any business district project; (ii) taxes levied or imposed
by the municipality on any or all property in the
municipality, including, specifically, taxes levied or imposed
by the municipality in a special service area pursuant to the
Special Service Area Tax Law; (iii) the full faith and credit
of the municipality; (iv) a mortgage on part or all of the
business district project; or (v) any other taxes or
anticipated receipts that the municipality may lawfully
pledge.
    Such obligations may be issued in one or more series, bear
such date or dates, become due at such time or times as therein
provided, but in any case not later than (i) 20 years after the
date of issue or (ii) the dissolution date, whichever is
earlier, bear interest payable at such intervals and at such
rate or rates as set forth therein, except as may be limited by
applicable law, which rate or rates may be fixed or variable,
be in such denominations, be in such form, either coupon,
registered, or book-entry, carry such conversion, registration
and exchange privileges, be subject to defeasance upon such
terms, have such rank or priority, be executed in such manner,
be payable in such medium or payment at such place or places
within or without the State, make provision for a corporate
trustee within or without the State with respect to such
obligations, prescribe the rights, powers, and duties thereof
to be exercised for the benefit of the municipality and the
benefit of the owners of such obligations, provide for the
holding in trust, investment, and use of moneys, funds, and
accounts held under an ordinance, provide for assignment of
and direct payment of the moneys to pay such obligations or to
be deposited into such funds or accounts directly to such
trustee, be subject to such terms of redemption with or
without premium, and be sold at such price, all as the
corporate authorities shall determine. No referendum approval
of the electors shall be required as a condition to the
issuance of obligations pursuant to this Law except as
provided in this Section.
    In the event the municipality authorizes the issuance of
obligations pursuant to the authority of this Law secured by
the full faith and credit of the municipality, or pledges ad
valorem taxes pursuant to this subsection, which obligations
are other than obligations which may be issued under home rule
powers provided by Section 6 of Article VII of the Illinois
Constitution or which ad valorem taxes are other than ad
valorem taxes which may be pledged under home rule powers
provided by Section 6 of Article VII of the Illinois
Constitution or which are levied in a special service area
pursuant to the Special Service Area Tax Law, the ordinance
authorizing the issuance of those obligations or pledging
those taxes shall be published within 10 days after the
ordinance has been adopted, in a newspaper having a general
circulation within the municipality. The publication of the
ordinance shall be accompanied by a notice of (i) the specific
number of voters required to sign a petition requesting the
question of the issuance of the obligations or pledging such
ad valorem taxes to be submitted to the electors; (ii) the time
within which the petition must be filed; and (iii) the date of
the prospective referendum. The municipal clerk shall provide
a petition form to any individual requesting one.
    If no petition is filed with the municipal clerk, as
hereinafter provided in this Section, within 21 days after the
publication of the ordinance, the ordinance shall be in
effect. However, if within that 21-day period a petition is
filed with the municipal clerk, signed by electors numbering
not less than 15% of the number of electors voting for the
mayor or president at the last general municipal election,
asking that the question of issuing obligations using full
faith and credit of the municipality as security for the cost
of paying or reimbursing business district project costs, or
of pledging such ad valorem taxes for the payment of those
obligations, or both, be submitted to the electors of the
municipality, the municipality shall not be authorized to
issue obligations of the municipality using the full faith and
credit of the municipality as security or pledging such ad
valorem taxes for the payment of those obligations, or both,
until the proposition has been submitted to and approved by a
majority of the voters voting on the proposition at a
regularly scheduled election. The municipality shall certify
the proposition to the proper election authorities for
submission in accordance with the general election law.
    The ordinance authorizing the obligations may provide that
the obligations shall contain a recital that they are issued
pursuant to this Law, which recital shall be conclusive
evidence of their validity and of the regularity of their
issuance.
    In the event the municipality authorizes issuance of
obligations pursuant to this Law secured by the full faith and
credit of the municipality, the ordinance authorizing the
obligations may provide for the levy and collection of a
direct annual tax upon all taxable property within the
municipality sufficient to pay the principal thereof and
interest thereon as it matures, which levy may be in addition
to and exclusive of the maximum of all other taxes authorized
to be levied by the municipality, which levy, however, shall
be abated to the extent that monies from other sources are
available for payment of the obligations and the municipality
certifies the amount of those monies available to the county
clerk.
    A certified copy of the ordinance shall be filed with the
county clerk of each county in which any portion of the
municipality is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited
in the business district tax allocation fund.
    A municipality may also issue its obligations to refund,
in whole or in part, obligations theretofore issued by the
municipality under the authority of this Law, whether at or
prior to maturity. However, the last maturity of the refunding
obligations shall not be expressed to mature later than the
dissolution date.
    In the event a municipality issues obligations under home
rule powers or other legislative authority, the proceeds of
which are pledged to pay or reimburse business district
project costs, the municipality may, if it has followed the
procedures in conformance with this Law, retire those
obligations from funds in the business district tax allocation
fund in amounts and in such manner as if those obligations had
been issued pursuant to the provisions of this Law.
    No obligations issued pursuant to this Law shall be
regarded as indebtedness of the municipality issuing those
obligations or any other taxing district for the purpose of
any limitation imposed by law.
    Obligations issued pursuant to this Law shall not be
subject to the provisions of the Bond Authorization Act.
    (f) When business district project costs, including,
without limitation, all obligations paying or reimbursing
business district project costs have been paid, any surplus
funds then remaining in the Business District Tax Allocation
Fund shall be distributed to the municipal treasurer for
deposit into the general corporate fund of the municipality.
Upon payment of all business district project costs and
retirement of all obligations paying or reimbursing business
district project costs, but in no event more than 23 years
after the date of adoption of the ordinance imposing taxes
pursuant to subsection (10) or (11) of Section 11-74.3-3, the
municipality shall adopt an ordinance immediately rescinding
the taxes imposed pursuant to subsection (10) or (11) of
Section 11-74.3-3.
(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
101-604, eff. 12-13-19.)
 
    Section 60-50. The Flood Prevention District Act is
amended by changing Section 25 as follows:
 
    (70 ILCS 750/25)
    Sec. 25. Flood prevention retailers' and service
occupation taxes.
    (a) If the Board of Commissioners of a flood prevention
district determines that an emergency situation exists
regarding levee repair or flood prevention, and upon an
ordinance confirming the determination adopted by the
affirmative vote of a majority of the members of the county
board of the county in which the district is situated, the
county may impose a flood prevention retailers' occupation tax
upon all persons engaged in the business of selling tangible
personal property at retail within the territory of the
district to provide revenue to pay the costs of providing
emergency levee repair and flood prevention and to secure the
payment of bonds, notes, and other evidences of indebtedness
issued under this Act for a period not to exceed 25 years or as
required to repay the bonds, notes, and other evidences of
indebtedness issued under this Act. The tax rate shall be
0.25% of the gross receipts from all taxable sales made in the
course of that business. 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 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. The tax imposed 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. The Department shall have full power to administer
and enforce this Section; to collect all 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.
    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 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.
    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), 4, 5,
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 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.
    Persons subject to any tax imposed under 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 taxes that sellers are required to collect
under the Use Tax Act, under any bracket schedules the
Department may prescribe.
    If a tax is imposed under this subsection (a), a tax shall
also be imposed under subsection (b) of this Section.
    (b) If a tax has been imposed under subsection (a), a flood
prevention service occupation tax shall also be imposed upon
all persons engaged within the territory of the district in
the business of making sales of service, who, as an incident to
making the sales of service, transfer tangible personal
property, either in the form of tangible personal property or
in the form of real estate as an incident to a sale of service
to provide revenue to pay the costs of providing emergency
levee repair and flood prevention and to secure the payment of
bonds, notes, and other evidences of indebtedness issued under
this Act for a period not to exceed 25 years or as required to
repay the bonds, notes, and other evidences of indebtedness.
The tax rate shall be 0.25% of the selling price of all
tangible personal property transferred. 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 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. 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 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 State Department of Revenue. The
Department shall have full power to administer and enforce
this subsection; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties 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
subsection 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 set forth in Sections 2 (except that the
reference to State in the definition of supplier maintaining a
place of business in this State means the district), 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
district), 5, 7, 8 (except that the jurisdiction to which the
tax is a debt to the extent indicated in that Section 8 is the
district), 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), 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 district), 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 hereunder by separately stating the
tax as an additional charge, that 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, under
any bracket schedules the Department may prescribe.
    (c) The taxes imposed in subsections (a) and (b) may not be
imposed on personal property titled or registered with an
agency of the State or on personal property taxed at the 1%
rate under the Retailers' Occupation Tax Act and the Service
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly).
    (d) Nothing in this Section shall be construed to
authorize the district 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.
    (e) The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act or a serviceman under the Service Occupation Tax Act
permits the retailer or serviceman to engage in a business
that is taxable without registering separately with the
Department under an ordinance or resolution under this
Section.
    (f) 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 Flood Prevention 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 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 the 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 county 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 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 county 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 counties
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 Flood Prevention Occupation Tax Fund or the Local
Government Aviation Trust Fund, as appropriate.
    (g) If a county imposes a tax under this Section, then the
county board shall, by ordinance, discontinue the tax upon the
payment of all indebtedness of the flood prevention district.
The tax shall not be discontinued until all indebtedness of
the District has been paid.
    (h) Any ordinance imposing the tax under this Section, or
any ordinance that discontinues the tax, must 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 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.
    (j) County Flood Prevention Occupation Tax Fund. All
proceeds received by a county from a tax distribution under
this Section must be maintained in a special fund known as the
[name of county] flood prevention occupation tax fund. The
county shall, at the direction of the flood prevention
district, use moneys in the fund to pay the costs of providing
emergency levee repair and flood prevention and to pay bonds,
notes, and other evidences of indebtedness issued under this
Act.
    (k) This Section may be cited as the Flood Prevention
Occupation Tax Law.
(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
101-604, eff. 12-13-19.)
 
    Section 60-55. The Metro-East Park and Recreation District
Act is amended by changing Section 30 as follows:
 
    (70 ILCS 1605/30)
    Sec. 30. Taxes.
    (a) The board shall 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 District on the
gross receipts from the sales made in the course of business.
This tax shall be imposed only at the rate of one-tenth of one
per cent.
    This additional tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). 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 it dedicates
aviation fuel tax revenue, then aviation fuel shall be
excluded from tax. The board must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act. 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 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 by the Board 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 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, 2-5, 2-5.5, 2-10 (in respect to all provisions
contained in those Sections other than the State rate of tax),
2-12, 2-15 through 2-70, 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 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, 11a, 12, and 13 of the Retailers'
Occupation Tax Act and 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 State Metro-East Park and Recreation
District 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 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 District 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 (or at the 0% rate
imposed under this amendatory Act of the 102nd General
Assembly). Beginning December 1, 2019 and through December 31,
2020, this tax may not be 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 it dedicates aviation fuel tax revenue, then
aviation fuel shall be excluded from tax. The board must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. 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 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 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 District), 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 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 District), 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), 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 District), Sections 15, 16, 17, 18,
19 and 20 of the Service Occupation Tax Act and 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 State Metro-East Park and Recreation
District Fund or the Local Government Aviation Trust Fund, as
appropriate.
    Nothing in this subsection shall be construed to authorize
the board 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 State Metro-East
Park and Recreation District 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
District.
    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. The Department shall make
this certification only if the Metro East Park and Recreation
District imposes a tax on real property as provided in the
definition of "local sales taxes" under the Innovation
Development and Economy Act.
    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 pursuant to Section 35 of
this Act to the District from which retailers have paid taxes
or penalties to the Department during the second preceding
calendar month. The amount to be paid to the District 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 District, (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
District, (iii) any amounts that are transferred to the STAR
Bonds Revenue Fund, and (iv) 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 District, 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 District 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.
    (d) 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 United States
Constitution as a sale in interstate or foreign commerce.
    (e) Nothing in this Section shall be construed to
authorize the board 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.
    (f) An ordinance imposing a tax under this Section or an
ordinance extending the imposition of a tax to an additional
county or counties shall be certified by the board and filed
with the 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.
    (g) When certifying the amount of a monthly disbursement
to the District under this Section, the Department shall
increase or decrease the amounts 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.
(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; 101-604, eff. 12-13-19.)
 
    Section 60-60. The Regional Transportation Authority Act
is amended by changing Section 4.03 as follows:
 
    (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
    Sec. 4.03. Taxes.
    (a) In order to carry out any of the powers or purposes of
the Authority, the Board may by ordinance adopted with the
concurrence of 12 of the then Directors, impose throughout the
metropolitan region any or all of the taxes provided in this
Section. Except as otherwise provided in this Act, taxes
imposed under this Section and civil penalties imposed
incident thereto shall be collected and enforced by the State
Department of Revenue. The Department shall have the power to
administer and enforce the taxes and to determine all rights
for refunds for erroneous payments of the taxes. Nothing in
Public Act 95-708 is intended to invalidate any taxes
currently imposed by the Authority. The increased vote
requirements to impose a tax shall only apply to actions taken
after January 1, 2008 (the effective date of Public Act
95-708).
    (b) The Board may impose a public transportation tax upon
all persons engaged in the metropolitan region in the business
of selling at retail motor fuel for operation of motor
vehicles upon public highways. The tax shall be at a rate not
to exceed 5% of the gross receipts from the sales of motor fuel
in the course of the business. As used in this Act, the term
"motor fuel" shall have the same meaning as in the Motor Fuel
Tax Law. The Board may provide for details of the tax. The
provisions of any tax shall conform, as closely as may be
practicable, to the provisions of the Municipal Retailers
Occupation Tax Act, including without limitation, conformity
to penalties with respect to the tax imposed and as to the
powers of the State Department of Revenue to promulgate and
enforce rules and regulations relating to the administration
and enforcement of the provisions of the tax imposed, except
that reference in the Act to any municipality shall refer to
the Authority and the tax shall be imposed only with regard to
receipts from sales of motor fuel in the metropolitan region,
at rates as limited by this Section.
    (c) In connection with the tax imposed under paragraph (b)
of this Section, the Board may impose a tax upon the privilege
of using in the metropolitan region motor fuel for the
operation of a motor vehicle upon public highways, the tax to
be at a rate not in excess of the rate of tax imposed under
paragraph (b) of this Section. The Board may provide for
details of the tax.
    (d) The Board may impose a motor vehicle parking tax upon
the privilege of parking motor vehicles at off-street parking
facilities in the metropolitan region at which a fee is
charged, and may provide for reasonable classifications in and
exemptions to the tax, for administration and enforcement
thereof and for civil penalties and refunds thereunder and may
provide criminal penalties thereunder, the maximum penalties
not to exceed the maximum criminal penalties provided in the
Retailers' Occupation Tax Act. The Authority may collect and
enforce the tax itself or by contract with any unit of local
government. The State Department of Revenue shall have no
responsibility for the collection and enforcement unless the
Department agrees with the Authority to undertake the
collection and enforcement. As used in this paragraph, the
term "parking facility" means a parking area or structure
having parking spaces for more than 2 vehicles at which motor
vehicles are permitted to park in return for an hourly, daily,
or other periodic fee, whether publicly or privately owned,
but does not include parking spaces on a public street, the use
of which is regulated by parking meters.
    (e) The Board may impose a Regional Transportation
Authority Retailers' Occupation Tax upon all persons engaged
in the business of selling tangible personal property at
retail in the metropolitan region. In Cook County, the tax
rate shall be 1.25% of the gross receipts from sales of
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly), and 1% of
the gross receipts from other taxable sales made in the course
of that business. In DuPage, Kane, Lake, McHenry, and Will
counties, the tax rate shall be 0.75% of the gross receipts
from all taxable sales made in the course of that business. The
rate of tax imposed in DuPage, Kane, Lake, McHenry, and Will
counties under this Section on sales of aviation fuel on or
after December 1, 2019 shall, however, be 0.25% unless the
Regional Transportation Authority in DuPage, Kane, Lake,
McHenry, and Will counties has an "airport-related purpose"
and the additional 0.50% of the 0.75% tax on aviation fuel is
expended for airport-related purposes. If there is no
airport-related purpose to which aviation fuel tax revenue is
dedicated, then aviation fuel is excluded from the additional
0.50% of the 0.75% tax. The tax imposed 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. The Department shall have full power to
administer and enforce this Section; to collect all 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, exclusions, exemptions,
and definitions of terms, and employ the same modes of
procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 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), 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.
    The Board and DuPage, Kane, Lake, McHenry, and Will
counties must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. For purposes of this Section,
"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
Authority.
    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 taxes that sellers
are required to collect under the Use Tax Act, under any
bracket schedules 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 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 Regional Transportation Authority tax
fund established under paragraph (n) of this Section or the
Local Government Aviation Trust Fund, as appropriate.
    If a tax is imposed under this subsection (e), a tax shall
also be imposed under subsections (f) and (g) 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 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.
    No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
    Nothing in this Section shall be construed to authorize
the Regional Transportation Authority 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.
    (f) If a tax has been imposed under paragraph (e), a
Regional Transportation Authority Service Occupation Tax shall
also be imposed upon all persons engaged, in the metropolitan
region in the business of making sales of service, who as an
incident to making the sales of service, transfer tangible
personal property within the metropolitan region, either in
the form of tangible personal property or in the form of real
estate as an incident to a sale of service. In Cook County, the
tax rate shall be: (1) 1.25% of the serviceman's cost price of
food prepared for immediate consumption and transferred
incident to a sale of service subject to the service
occupation tax by an entity licensed under the Hospital
Licensing Act, the Nursing Home Care Act, the Specialized
Mental Health Rehabilitation Act of 2013, the ID/DD Community
Care Act, or the MC/DD Act that is located in the metropolitan
region; (2) 1.25% of the selling price of tangible personal
property taxed at the 1% rate under the Service Occupation Tax
Act (or at the 0% rate imposed under this amendatory Act of the
102nd General Assembly); and (3) 1% of the selling price from
other taxable sales of tangible personal property transferred.
In DuPage, Kane, Lake, McHenry, and Will counties, the rate
shall be 0.75% of the selling price of all tangible personal
property transferred. The rate of tax imposed in DuPage, Kane,
Lake, McHenry, and Will counties under this Section on sales
of aviation fuel on or after December 1, 2019 shall, however,
be 0.25% unless the Regional Transportation Authority in
DuPage, Kane, Lake, McHenry, and Will counties has an
"airport-related purpose" and the additional 0.50% of the
0.75% tax on aviation fuel is expended for airport-related
purposes. If there is no airport-related purpose to which
aviation fuel tax revenue is dedicated, then aviation fuel is
excluded from the additional 0.5% of the 0.75% tax.
    The Board and DuPage, Kane, Lake, McHenry, and Will
counties must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. For purposes of this Section,
"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
Authority.
    The tax imposed under this paragraph and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties 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 paragraph, the Department and persons who
are subject to this paragraph 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 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
Authority), 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 Authority), 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), 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 Authority), 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.
    Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, that 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, under
any bracket schedules the Department may prescribe.
    Whenever the Department determines that a refund should be
made under this paragraph 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 Regional Transportation Authority tax
fund established under paragraph (n) of this Section or the
Local Government Aviation Trust Fund, as appropriate.
    Nothing in this paragraph shall be construed to authorize
the Authority 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.
    (g) If a tax has been imposed under paragraph (e), a tax
shall also be imposed upon the privilege of using in the
metropolitan region, any item of tangible personal property
that is purchased outside the metropolitan region at retail
from a retailer, and that is titled or registered with an
agency of this State's government. In Cook County, the tax
rate shall be 1% of the selling price of the tangible personal
property, as "selling price" is defined in the Use Tax Act. In
DuPage, Kane, Lake, McHenry, and Will counties, the tax rate
shall be 0.75% of the selling price of the tangible personal
property, as "selling price" is defined 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
metropolitan region. The tax shall be collected by the
Department of Revenue for the Regional Transportation
Authority. 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 shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties, and
interest due hereunder; to dispose of taxes, penalties, and
interest collected in the manner hereinafter provided; and to
determine all rights to credit memoranda or refunds arising on
account of the erroneous payment of tax, penalty, or interest
hereunder. In the administration of and compliance with this
paragraph, the Department and persons who are subject to this
paragraph 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 (except the
definition of "retailer maintaining a place of business in
this State"), 3 through 3-80 (except provisions pertaining to
the State rate of tax, and except provisions concerning
collection or refunding of the tax by retailers), 4, 11, 12,
12a, 14, 15, 19 (except the portions pertaining to claims by
retailers and except the last paragraph concerning refunds),
20, 21, and 22 of the Use Tax Act, and are not inconsistent
with this paragraph, as fully as if those provisions were set
forth herein.
    Whenever the Department determines that a refund should be
made under this paragraph 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 Regional Transportation Authority tax
fund established under paragraph (n) of this Section.
    (h) The Authority may impose a replacement vehicle tax of
$50 on any passenger car as defined in Section 1-157 of the
Illinois Vehicle Code purchased within the metropolitan region
by or on behalf of an insurance company to replace a passenger
car of an insured person in settlement of a total loss claim.
The tax imposed may not become effective before the first day
of the month following the passage of the ordinance imposing
the tax and receipt of a certified copy of the ordinance by the
Department of Revenue. The Department of Revenue shall collect
the tax for the Authority in accordance with Sections 3-2002
and 3-2003 of the Illinois Vehicle Code.
    The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes collected
hereunder.
    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 Authority. The
amount to be paid to the Authority shall be the amount
collected hereunder during the second preceding calendar month
by the Department, less any amount determined by the
Department to be necessary for the payment of refunds, and
less any amounts that are transferred to the STAR Bonds
Revenue Fund. Within 10 days after receipt by the Comptroller
of the disbursement certification to the Authority provided
for in this Section to be given to the Comptroller by the
Department, the Comptroller shall cause the orders to be drawn
for that amount in accordance with the directions contained in
the certification.
    (i) The Board may not impose any other taxes except as it
may from time to time be authorized by law to impose.
    (j) 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), (e), (f) or
(g) of this Section and no additional registration shall be
required under the tax. 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.
    (k) The provisions of any tax imposed under paragraph (c)
of this Section shall conform as closely as may be practicable
to the provisions of the Use Tax Act, including without
limitation conformity as to penalties with respect to the tax
imposed and as to the powers of the State Department of Revenue
to promulgate and enforce rules and regulations relating to
the administration and enforcement of the provisions of the
tax imposed. The taxes shall be imposed only on use within the
metropolitan region and at rates as provided in the paragraph.
    (l) The Board in imposing any tax as provided in
paragraphs (b) and (c) of this Section, shall, after seeking
the advice of the State Department of Revenue, provide means
for retailers, users or purchasers of motor fuel for purposes
other than those with regard to which the taxes may be imposed
as provided in those paragraphs to receive refunds of taxes
improperly paid, which provisions may be at variance with the
refund provisions as applicable under the Municipal Retailers
Occupation Tax Act. The State Department of Revenue may
provide for certificates of registration for users or
purchasers of motor fuel for purposes other than those with
regard to which taxes may be imposed as provided in paragraphs
(b) and (c) of this Section to facilitate the reporting and
nontaxability of the exempt sales or uses.
    (m) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the Regional Transportation
Authority as of September 1 next following such adoption and
filing. Beginning January 1, 1992, an ordinance or resolution
imposing or discontinuing the tax hereunder 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, increasing, decreasing, or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of the
first month to occur not less than 60 days following such
adoption and filing. Any ordinance or resolution of the
Authority imposing a tax under this Section and in effect on
August 1, 2007 shall remain in full force and effect and shall
be administered by the Department of Revenue under the terms
and conditions and rates of tax established by such ordinance
or resolution until the Department begins administering and
enforcing an increased tax under this Section as authorized by
Public Act 95-708. The tax rates authorized by Public Act
95-708 are effective only if imposed by ordinance of the
Authority.
    (n) Except as otherwise provided in this subsection (n),
the State Department of Revenue shall, upon collecting any
taxes as provided in this Section, pay the taxes over to the
State Treasurer as trustee for the Authority. The taxes shall
be held in a trust fund outside the State Treasury. If an
airport-related purpose has been certified, taxes and
penalties collected in DuPage, Kane, Lake, McHenry and Will
counties on aviation fuel sold on or after December 1, 2019
from the 0.50% of the 0.75% rate 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 Authority. On or before the
25th day of each calendar month, the State Department of
Revenue shall prepare and certify to the Comptroller of the
State of Illinois and to the Authority (i) the amount of taxes
collected in each county other than Cook County in the
metropolitan region, (not including, if an airport-related
purpose has been certified, the taxes and penalties collected
from the 0.50% of the 0.75% rate on aviation fuel sold on or
after December 1, 2019 that are deposited into the Local
Government Aviation Trust Fund) (ii) the amount of taxes
collected within the City of Chicago, and (iii) the amount
collected in that portion of Cook County outside of Chicago,
each amount less the amount necessary for the payment of
refunds to taxpayers located in those areas described in items
(i), (ii), and (iii), and less 1.5% of the remainder, which
shall be transferred from the trust fund into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the Authority, 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 certification of the amounts, the
Comptroller shall cause an order to be drawn for the transfer
of the amount certified into the Tax Compliance and
Administration Fund and the payment of two-thirds of the
amounts certified in item (i) of this subsection to the
Authority and one-third of the amounts certified in item (i)
of this subsection to the respective counties other than Cook
County and the amount certified in items (ii) and (iii) of this
subsection to the Authority.
    In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in July 1991 and each
year thereafter to the Regional Transportation Authority. The
allocation shall be made in an amount equal to the average
monthly distribution during the preceding calendar year
(excluding the 2 months of lowest receipts) and the allocation
shall include the amount of average monthly distribution from
the Regional Transportation Authority Occupation and Use Tax
Replacement Fund. The distribution made in July 1992 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 calendar year.
The Department of Revenue shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
    (o) Failure to adopt a budget ordinance or otherwise to
comply with Section 4.01 of this Act or to adopt a Five-year
Capital Program or otherwise to comply with paragraph (b) of
Section 2.01 of this Act shall not affect the validity of any
tax imposed by the Authority otherwise in conformity with law.
    (p) At no time shall a public transportation tax or motor
vehicle parking tax authorized under paragraphs (b), (c), and
(d) of this Section be in effect at the same time as any
retailers' occupation, use or service occupation tax
authorized under paragraphs (e), (f), and (g) of this Section
is in effect.
    Any taxes imposed under the authority provided in
paragraphs (b), (c), and (d) shall remain in effect only until
the time as any tax authorized by paragraph (e), (f), or (g) of
this Section are imposed and becomes effective. Once any tax
authorized by paragraph (e), (f), or (g) is imposed the Board
may not reimpose taxes as authorized in paragraphs (b), (c),
and (d) of the Section unless any tax authorized by paragraph
(e), (f), or (g) of this Section becomes ineffective by means
other than an ordinance of the Board.
    (q) Any existing rights, remedies and obligations
(including enforcement by the Regional Transportation
Authority) arising under any tax imposed under paragraph (b),
(c), or (d) of this Section shall not be affected by the
imposition of a tax under paragraph (e), (f), or (g) of this
Section.
(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; 101-604, eff. 12-13-19.)
 
ARTICLE 65. SCHOOL SUPPLY HOLIDAY

 
    Section 65-5. The Use Tax Act is amended by changing
Sections 3-6, 3-10 and 9 as follows:
 
    (35 ILCS 105/3-6)
    Sec. 3-6. Sales tax holiday items.
    (a) Any The tangible personal property described in this
subsection is a sales tax holiday item and qualifies for the
1.25% reduced rate of tax for the period set forth in Section
3-10 of this Act (hereinafter referred to as the Sales Tax
Holiday Period). The reduced rate on these items shall be
administered under the provisions of subsection (b) of this
Section. The following items are subject to the reduced rate:
        (1) Clothing items that each have a retail selling
    price of less than $125 $100.
        "Clothing" means, unless otherwise specified in this
    Section, all human wearing apparel suitable for general
    use. "Clothing" does not include clothing accessories,
    protective equipment, or sport or recreational equipment.
    "Clothing" includes, but is not limited to: household and
    shop aprons; athletic supporters; bathing suits and caps;
    belts and suspenders; boots; coats and jackets; ear muffs;
    footlets; gloves and mittens for general use; hats and
    caps; hosiery; insoles for shoes; lab coats; neckties;
    overshoes; pantyhose; rainwear; rubber pants; sandals;
    scarves; shoes and shoelaces; slippers; sneakers; socks
    and stockings; steel-toed shoes; underwear; and school
    uniforms.
        "Clothing accessories" means, but is not limited to:
    briefcases; cosmetics; hair notions, including, but not
    limited to barrettes, hair bows, and hair nets; handbags;
    handkerchiefs; jewelry; non-prescription sunglasses;
    umbrellas; wallets; watches; and wigs and hair pieces.
        "Protective equipment" means, but is not limited to:
    breathing masks; clean room apparel and equipment; ear and
    hearing protectors; face shields; hard hats; helmets;
    paint or dust respirators; protective gloves; safety
    glasses and goggles; safety belts; tool belts; and
    welder's gloves and masks.
        "Sport or recreational equipment" means, but is not
    limited to: ballet and tap shoes; cleated or spiked
    athletic shoes; gloves, including, but not limited to,
    baseball, bowling, boxing, hockey, and golf gloves;
    goggles; hand and elbow guards; life preservers and vests;
    mouth guards; roller and ice skates; shin guards; shoulder
    pads; ski boots; waders; and wetsuits and fins.
        (2) School supplies. "School supplies" means, unless
    otherwise specified in this Section, items used by a
    student in a course of study. The purchase of school
    supplies for use by persons other than students for use in
    a course of study are not eligible for the reduced rate of
    tax. "School supplies" do not include school art supplies;
    school instructional materials; cameras; film and memory
    cards; videocameras, tapes, and videotapes; computers;
    cell phones; Personal Digital Assistants (PDAs); handheld
    electronic schedulers; and school computer supplies.
        "School supplies" includes, but is not limited to:
    binders; book bags; calculators; cellophane tape;
    blackboard chalk; compasses; composition books; crayons;
    erasers; expandable, pocket, plastic, and manila folders;
    glue, paste, and paste sticks; highlighters; index cards;
    index card boxes; legal pads; lunch boxes; markers;
    notebooks; paper, including loose leaf ruled notebook
    paper, copy paper, graph paper, tracing paper, manila
    paper, colored paper, poster board, and construction
    paper; pencils; pencil leads; pens; ink and ink refills
    for pens; pencil boxes and other school supply boxes;
    pencil sharpeners; protractors; rulers; scissors; and
    writing tablets.
        "School art supply" means an item commonly used by a
    student in a course of study for artwork and includes only
    the following items: clay and glazes; acrylic, tempera,
    and oil paint; paintbrushes for artwork; sketch and
    drawing pads; and watercolors.
        "School instructional material" means written material
    commonly used by a student in a course of study as a
    reference and to learn the subject being taught and
    includes only the following items: reference books;
    reference maps and globes; textbooks; and workbooks.
        "School computer supply" means an item commonly used
    by a student in a course of study in which a computer is
    used and applies only to the following items: flashdrives
    and other computer data storage devices; data storage
    media, such as diskettes and compact disks; boxes and
    cases for disk storage; external ports or drives; computer
    cases; computer cables; computer printers; and printer
    cartridges, toner, and ink.
    (b) Administration. Notwithstanding any other provision of
this Act, the reduced rate of tax under Section 3-10 of this
Act for clothing and school supplies shall be administered by
the Department under the provisions of this subsection (b).
        (1) Bundled sales. Items that qualify for the reduced
    rate of tax that are bundled together with items that do
    not qualify for the reduced rate of tax and that are sold
    for one itemized price will be subject to the reduced rate
    of tax only if the value of the items that qualify for the
    reduced rate of tax exceeds the value of the items that do
    not qualify for the reduced rate of tax.
        (2) Coupons and discounts. An unreimbursed discount by
    the seller reduces the sales price of the property so that
    the discounted sales price determines whether the sales
    price is within a sales tax holiday price threshold. A
    coupon or other reduction in the sales price is treated as
    a discount if the seller is not reimbursed for the coupon
    or reduction amount by a third party.
        (3) Splitting of items normally sold together.
    Articles that are normally sold as a single unit must
    continue to be sold in that manner. Such articles cannot
    be priced separately and sold as individual items in order
    to obtain the reduced rate of tax. For example, a pair of
    shoes cannot have each shoe sold separately so that the
    sales price of each shoe is within a sales tax holiday
    price threshold.
        (4) Rain checks. A rain check is a procedure that
    allows a customer to purchase an item at a certain price at
    a later time because the particular item was out of stock.
    Eligible property that customers purchase during the Sales
    Tax Holiday Period with the use of a rain check will
    qualify for the reduced rate of tax regardless of when the
    rain check was issued. Issuance of a rain check during the
    Sales Tax Holiday Period will not qualify eligible
    property for the reduced rate of tax if the property is
    actually purchased after the Sales Tax Holiday Period.
        (5) Exchanges. The procedure for an exchange in
    regards to a sales tax holiday is as follows:
            (A) If a customer purchases an item of eligible
        property during the Sales Tax Holiday Period, but
        later exchanges the item for a similar eligible item,
        even if a different size, different color, or other
        feature, no additional tax is due even if the exchange
        is made after the Sales Tax Holiday Period.
            (B) If a customer purchases an item of eligible
        property during the Sales Tax Holiday Period, but
        after the Sales Tax Holiday Period has ended, the
        customer returns the item and receives credit on the
        purchase of a different item, the 6.25% general
        merchandise sales tax rate is due on the sale of the
        newly purchased item.
            (C) If a customer purchases an item of eligible
        property before the Sales Tax Holiday Period, but
        during the Sales Tax Holiday Period the customer
        returns the item and receives credit on the purchase
        of a different item of eligible property, the reduced
        rate of tax is due on the sale of the new item if the
        new item is purchased during the Sales Tax Holiday
        Period.
        (6) (Blank). Delivery charges. Delivery charges,
    including shipping, handling and service charges, are part
    of the sales price of eligible property.
        (7) Order date and back orders. For the purpose of a
    sales tax holiday, eligible property qualifies for the
    reduced rate of tax if: (i) the item is both delivered to
    and paid for by the customer during the Sales Tax Holiday
    Period or (ii) the customer orders and pays for the item
    and the seller accepts the order during the Sales Tax
    Holiday Period for immediate shipment, even if delivery is
    made after the Sales Tax Holiday Period. The seller
    accepts an order when the seller has taken action to fill
    the order for immediate shipment. Actions to fill an order
    include placement of an "in date" stamp on an order or
    assignment of an "order number" to an order within the
    Sales Tax Holiday Period. An order is for immediate
    shipment when the customer does not request delayed
    shipment. An order is for immediate shipment
    notwithstanding that the shipment may be delayed because
    of a backlog of orders or because stock is currently
    unavailable to, or on back order by, the seller.
        (8) Returns. For a 60-day period immediately after the
    Sales Tax Holiday Period, if a customer returns an item
    that would qualify for the reduced rate of tax, credit for
    or refund of sales tax shall be given only at the reduced
    rate unless the customer provides a receipt or invoice
    that shows tax was paid at the 6.25% general merchandise
    rate, or the seller has sufficient documentation to show
    that tax was paid at the 6.25% general merchandise rate on
    the specific item. This 60-day period is set solely for
    the purpose of designating a time period during which the
    customer must provide documentation that shows that the
    appropriate sales tax rate was paid on returned
    merchandise. The 60-day period is not intended to change a
    seller's policy on the time period during which the seller
    will accept returns.
    (c) The Department may implement the provisions of this
Section through the use of emergency rules, along with
permanent rules filed concurrently with such emergency rules,
in accordance with the provisions of Section 5-45 of the
Illinois Administrative Procedure Act. For purposes of the
Illinois Administrative Procedure Act, the adoption of rules
to implement the provisions of this Section shall be deemed an
emergency and necessary for the public interest, safety, and
welfare.
(Source: P.A. 96-1012, eff. 7-7-10.)
 
    (35 ILCS 105/3-10)
    Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
either the selling price or the fair market value, if any, of
the tangible personal property. In all cases where property
functionally used or consumed is the same as the property that
was purchased at retail, then the tax is imposed on the selling
price of the property. In all cases where property
functionally used or consumed is a by-product or waste product
that has been refined, manufactured, or produced from property
purchased at retail, then the tax is imposed on the lower of
the fair market value, if any, of the specific property so used
in this State or on the selling price of the property purchased
at retail. For purposes of this Section "fair market value"
means the price at which property would change hands between a
willing buyer and a willing seller, neither being under any
compulsion to buy or sell and both having reasonable knowledge
of the relevant facts. The fair market value shall be
established by Illinois sales by the taxpayer of the same
property as that functionally used or consumed, or if there
are no such sales by the taxpayer, then comparable sales or
purchases of property of like kind and character in Illinois.
    Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
    Beginning on August 6, 2010 through August 15, 2010, and
beginning again on August 5, 2022 through August 14, 2022,
with respect to sales tax holiday items as defined in Section
3-6 of this Act, the tax is imposed at the rate of 1.25%.
    With respect to gasohol, the tax imposed by this Act
applies to (i) 70% of the proceeds of sales made on or after
January 1, 1990, and before July 1, 2003, (ii) 80% of the
proceeds of sales made on or after July 1, 2003 and on or
before July 1, 2017, and (iii) 100% of the proceeds of sales
made thereafter. If, at any time, however, the tax under this
Act on sales of gasohol is imposed at the rate of 1.25%, then
the tax imposed by this Act applies to 100% of the proceeds of
sales of gasohol made during that time.
    With respect to majority blended ethanol fuel, the tax
imposed by this Act does not apply to the proceeds of sales
made on or after July 1, 2003 and on or before December 31,
2023 but applies to 100% of the proceeds of sales made
thereafter.
    With respect to biodiesel blends with no less than 1% and
no more than 10% biodiesel, the tax imposed by this Act applies
to (i) 80% of the proceeds of sales made on or after July 1,
2003 and on or before December 31, 2018 and (ii) 100% of the
proceeds of sales made thereafter. If, at any time, however,
the tax under this Act on sales of biodiesel blends with no
less than 1% and no more than 10% biodiesel is imposed at the
rate of 1.25%, then the tax imposed by this Act applies to 100%
of the proceeds of sales of biodiesel blends with no less than
1% and no more than 10% biodiesel made during that time.
    With respect to 100% biodiesel and biodiesel blends with
more than 10% but no more than 99% biodiesel, the tax imposed
by this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023 but
applies to 100% of the proceeds of sales made thereafter.
    With respect to food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances, products classified as
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,
until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including but not limited to soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size; but
"soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" do not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
    Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
label includes:
        (A) A "Drug Facts" panel; or
        (B) A statement of the "active ingredient(s)" with a
    list of those ingredients contained in the compound,
    substance or preparation.
    Beginning on the effective date of this amendatory Act of
the 98th General Assembly, "prescription and nonprescription
medicines and drugs" includes medical cannabis purchased from
a registered dispensing organization under the Compassionate
Use of Medical Cannabis Program Act.
    As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
    If the property that is purchased at retail from a
retailer is acquired outside Illinois and used outside
Illinois before being brought to Illinois for use here and is
taxable under this Act, the "selling price" on which the tax is
computed shall be reduced by an amount that represents a
reasonable allowance for depreciation for the period of prior
out-of-state use.
(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
102-4, eff. 4-27-21.)
 
    (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. When
determining the discount allowed under this Section, retailers
shall include the amount of tax that would have been due at the
6.25% rate but for the 1.25% rate imposed on sales tax holiday
items under this amendatory Act of the 102nd General Assembly.
The discount under this Section is not allowed for the 1.25%
portion of taxes paid on aviation fuel that is subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133. 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 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 and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers 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,
"aviation fuel" means jet fuel and aviation gasoline.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Notwithstanding any other provision of this Act to the
contrary, 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. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
1.25% in this amendatory Act of the 102nd General Assembly on
sales tax holiday items had not occurred. For quarter monthly
payments due on or after July 1, 2023 and through June 30,
2024, "25% of the taxpayer's liability for the same calendar
month of the preceding year" shall be determined as if the rate
reduction to 1.25% in this amendatory Act of the 102nd General
Assembly on sales tax holiday items had not occurred. 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. If, in any
month, the tax on sales tax holiday items, as defined in
Section 3-6, is imposed at the rate of 1.25%, then 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 that the preceding month from the 1.25%
rate on the selling price of sales tax holiday items into the
State and Local Sales Tax Reform Fund.
    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
2021300,000,000
2022300,000,000
2023300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034375,000,000
2035375,000,000
2036450,000,000
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.
    Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
    Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
        Fiscal Year............................Total Deposit
        2024....................................$200,000,000
        2025....................................$206,000,000
        2026....................................$212,200,000
        2027....................................$218,500,000
        2028....................................$225,100,000
        2029....................................$288,700,000
        2030....................................$298,900,000
        2031....................................$309,300,000
        2032....................................$320,100,000
        2033....................................$331,200,000
        2034....................................$341,200,000
        2035....................................$351,400,000
        2036....................................$361,900,000
        2037....................................$372,800,000
        2038....................................$384,000,000
        2039....................................$395,500,000
        2040....................................$407,400,000
        2041....................................$419,600,000
        2042....................................$432,200,000
        2043....................................$445,100,000
    Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the 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; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
    Section 65-10. The Retailers' Occupation Tax Act is
amended by changing Sections 2-8, 2-10 and 3 as follows:
 
    (35 ILCS 120/2-8)
    Sec. 2-8. Sales tax holiday items.
    (a) Any The tangible personal property described in this
subsection is a sales tax holiday item and qualifies for the
1.25% reduced rate of tax for the period set forth in Section
2-10 of this Act (hereinafter referred to as the Sales Tax
Holiday Period). The reduced rate on these items shall be
administered under the provisions of subsection (b) of this
Section. The following items are subject to the reduced rate:
        (1) Clothing items that each have a retail selling
    price of less than $125 $100.
        "Clothing" means, unless otherwise specified in this
    Section, all human wearing apparel suitable for general
    use. "Clothing" does not include clothing accessories,
    protective equipment, or sport or recreational equipment.
    "Clothing" includes, but is not limited to: household and
    shop aprons; athletic supporters; bathing suits and caps;
    belts and suspenders; boots; coats and jackets; ear muffs;
    footlets; gloves and mittens for general use; hats and
    caps; hosiery; insoles for shoes; lab coats; neckties;
    overshoes; pantyhose; rainwear; rubber pants; sandals;
    scarves; shoes and shoelaces; slippers; sneakers; socks
    and stockings; steel-toed shoes; underwear; and school
    uniforms.
        "Clothing accessories" means, but is not limited to:
    briefcases; cosmetics; hair notions, including, but not
    limited to barrettes, hair bows, and hair nets; handbags;
    handkerchiefs; jewelry; non-prescription sunglasses;
    umbrellas; wallets; watches; and wigs and hair pieces.
        "Protective equipment" means, but is not limited to:
    breathing masks; clean room apparel and equipment; ear and
    hearing protectors; face shields; hard hats; helmets;
    paint or dust respirators; protective gloves; safety
    glasses and goggles; safety belts; tool belts; and
    welder's gloves and masks.
        "Sport or recreational equipment" means, but is not
    limited to: ballet and tap shoes; cleated or spiked
    athletic shoes; gloves, including, but not limited to,
    baseball, bowling, boxing, hockey, and golf gloves;
    goggles; hand and elbow guards; life preservers and vests;
    mouth guards; roller and ice skates; shin guards; shoulder
    pads; ski boots; waders; and wetsuits and fins.
        (2) School supplies. "School supplies" means, unless
    otherwise specified in this Section, items used by a
    student in a course of study. The purchase of school
    supplies for use by persons other than students for use in
    a course of study are not eligible for the reduced rate of
    tax. "School supplies" do not include school art supplies;
    school instructional materials; cameras; film and memory
    cards; videocameras, tapes, and videotapes; computers;
    cell phones; Personal Digital Assistants (PDAs); handheld
    electronic schedulers; and school computer supplies.
        "School supplies" includes, but is not limited to:
    binders; book bags; calculators; cellophane tape;
    blackboard chalk; compasses; composition books; crayons;
    erasers; expandable, pocket, plastic, and manila folders;
    glue, paste, and paste sticks; highlighters; index cards;
    index card boxes; legal pads; lunch boxes; markers;
    notebooks; paper, including loose leaf ruled notebook
    paper, copy paper, graph paper, tracing paper, manila
    paper, colored paper, poster board, and construction
    paper; pencils; pencil leads; pens; ink and ink refills
    for pens; pencil boxes and other school supply boxes;
    pencil sharpeners; protractors; rulers; scissors; and
    writing tablets.
        "School art supply" means an item commonly used by a
    student in a course of study for artwork and includes only
    the following items: clay and glazes; acrylic, tempera,
    and oil paint; paintbrushes for artwork; sketch and
    drawing pads; and watercolors.
        "School instructional material" means written material
    commonly used by a student in a course of study as a
    reference and to learn the subject being taught and
    includes only the following items: reference books;
    reference maps and globes; textbooks; and workbooks.
        "School computer supply" means an item commonly used
    by a student in a course of study in which a computer is
    used and applies only to the following items: flashdrives
    and other computer data storage devices; data storage
    media, such as diskettes and compact disks; boxes and
    cases for disk storage; external ports or drives; computer
    cases; computer cables; computer printers; and printer
    cartridges, toner, and ink.
    (b) Administration. Notwithstanding any other provision of
this Act, the reduced rate of tax under Section 3-10 of this
Act for clothing and school supplies shall be administered by
the Department under the provisions of this subsection (b).
        (1) Bundled sales. Items that qualify for the reduced
    rate of tax that are bundled together with items that do
    not qualify for the reduced rate of tax and that are sold
    for one itemized price will be subject to the reduced rate
    of tax only if the value of the items that qualify for the
    reduced rate of tax exceeds the value of the items that do
    not qualify for the reduced rate of tax.
        (2) Coupons and discounts. An unreimbursed discount by
    the seller reduces the sales price of the property so that
    the discounted sales price determines whether the sales
    price is within a sales tax holiday price threshold. A
    coupon or other reduction in the sales price is treated as
    a discount if the seller is not reimbursed for the coupon
    or reduction amount by a third party.
        (3) Splitting of items normally sold together.
    Articles that are normally sold as a single unit must
    continue to be sold in that manner. Such articles cannot
    be priced separately and sold as individual items in order
    to obtain the reduced rate of tax. For example, a pair of
    shoes cannot have each shoe sold separately so that the
    sales price of each shoe is within a sales tax holiday
    price threshold.
        (4) Rain checks. A rain check is a procedure that
    allows a customer to purchase an item at a certain price at
    a later time because the particular item was out of stock.
    Eligible property that customers purchase during the Sales
    Tax Holiday Period with the use of a rain check will
    qualify for the reduced rate of tax regardless of when the
    rain check was issued. Issuance of a rain check during the
    Sales Tax Holiday Period will not qualify eligible
    property for the reduced rate of tax if the property is
    actually purchased after the Sales Tax Holiday Period.
        (5) Exchanges. The procedure for an exchange in
    regards to a sales tax holiday is as follows:
            (A) If a customer purchases an item of eligible
        property during the Sales Tax Holiday Period, but
        later exchanges the item for a similar eligible item,
        even if a different size, different color, or other
        feature, no additional tax is due even if the exchange
        is made after the Sales Tax Holiday Period.
            (B) If a customer purchases an item of eligible
        property during the Sales Tax Holiday Period, but
        after the Sales Tax Holiday Period has ended, the
        customer returns the item and receives credit on the
        purchase of a different item, the 6.25% general
        merchandise sales tax rate is due on the sale of the
        newly purchased item.
            (C) If a customer purchases an item of eligible
        property before the Sales Tax Holiday Period, but
        during the Sales Tax Holiday Period the customer
        returns the item and receives credit on the purchase
        of a different item of eligible property, the reduced
        rate of tax is due on the sale of the new item if the
        new item is purchased during the Sales Tax Holiday
        Period.
        (6) (Blank). Delivery charges. Delivery charges,
    including shipping, handling and service charges, are part
    of the sales price of eligible property.
        (7) Order date and back orders. For the purpose of a
    sales tax holiday, eligible property qualifies for the
    reduced rate of tax if: (i) the item is both delivered to
    and paid for by the customer during the Sales Tax Holiday
    Period or (ii) the customer orders and pays for the item
    and the seller accepts the order during the Sales Tax
    Holiday Period for immediate shipment, even if delivery is
    made after the Sales Tax Holiday Period. The seller
    accepts an order when the seller has taken action to fill
    the order for immediate shipment. Actions to fill an order
    include placement of an "in date" stamp on an order or
    assignment of an "order number" to an order within the
    Sales Tax Holiday Period. An order is for immediate
    shipment when the customer does not request delayed
    shipment. An order is for immediate shipment
    notwithstanding that the shipment may be delayed because
    of a backlog of orders or because stock is currently
    unavailable to, or on back order by, the seller.
        (8) Returns. For a 60-day period immediately after the
    Sales Tax Holiday Period, if a customer returns an item
    that would qualify for the reduced rate of tax, credit for
    or refund of sales tax shall be given only at the reduced
    rate unless the customer provides a receipt or invoice
    that shows tax was paid at the 6.25% general merchandise
    rate, or the seller has sufficient documentation to show
    that tax was paid at the 6.25% general merchandise rate on
    the specific item. This 60-day period is set solely for
    the purpose of designating a time period during which the
    customer must provide documentation that shows that the
    appropriate sales tax rate was paid on returned
    merchandise. The 60-day period is not intended to change a
    seller's policy on the time period during which the seller
    will accept returns.
    (c) The Department may implement the provisions of this
Section through the use of emergency rules, along with
permanent rules filed concurrently with such emergency rules,
in accordance with the provisions of Section 5-45 of the
Illinois Administrative Procedure Act. For purposes of the
Illinois Administrative Procedure Act, the adoption of rules
to implement the provisions of this Section shall be deemed an
emergency and necessary for the public interest, safety, and
welfare.
(Source: P.A. 96-1012, eff. 7-7-10.)
 
    (35 ILCS 120/2-10)
    Sec. 2-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
gross receipts from sales of tangible personal property made
in the course of business.
    Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
    Beginning on August 6, 2010 through August 15, 2010, and
beginning again on August 5, 2022 through August 14, 2022,
with respect to sales tax holiday items as defined in Section
2-8 of this Act, the tax is imposed at the rate of 1.25%.
    Within 14 days after the effective date of this amendatory
Act of the 91st General Assembly, each retailer of motor fuel
and gasohol shall cause the following notice to be posted in a
prominently visible place on each retail dispensing device
that is used to dispense motor fuel or gasohol in the State of
Illinois: "As of July 1, 2000, the State of Illinois has
eliminated the State's share of sales tax on motor fuel and
gasohol through December 31, 2000. The price on this pump
should reflect the elimination of the tax." The notice shall
be printed in bold print on a sign that is no smaller than 4
inches by 8 inches. The sign shall be clearly visible to
customers. Any retailer who fails to post or maintain a
required sign through December 31, 2000 is guilty of a petty
offense for which the fine shall be $500 per day per each
retail premises where a violation occurs.
    With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act applies to (i) 70% of the proceeds of
sales made on or after January 1, 1990, and before July 1,
2003, (ii) 80% of the proceeds of sales made on or after July
1, 2003 and on or before July 1, 2017, and (iii) 100% of the
proceeds of sales made thereafter. If, at any time, however,
the tax under this Act on sales of gasohol, as defined in the
Use Tax Act, is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the proceeds of sales of
gasohol made during that time.
    With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the proceeds of sales made on or after July 1, 2003 and on
or before December 31, 2023 but applies to 100% of the proceeds
of sales made thereafter.
    With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the proceeds
of sales made on or after July 1, 2003 and on or before
December 31, 2018 and (ii) 100% of the proceeds of sales made
thereafter. If, at any time, however, the tax under this Act on
sales of biodiesel blends, as defined in the Use Tax Act, with
no less than 1% and no more than 10% biodiesel is imposed at
the rate of 1.25%, then the tax imposed by this Act applies to
100% of the proceeds of sales of biodiesel blends with no less
than 1% and no more than 10% biodiesel made during that time.
    With respect to 100% biodiesel, as defined in the Use Tax
Act, and biodiesel blends, as defined in the Use Tax Act, with
more than 10% but no more than 99% biodiesel, the tax imposed
by this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023 but
applies to 100% of the proceeds of sales made thereafter.
    With respect to food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances, products classified as
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,
until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including but not limited to soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size; but
"soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" do not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
    Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
    Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
label includes:
        (A) A "Drug Facts" panel; or
        (B) A statement of the "active ingredient(s)" with a
    list of those ingredients contained in the compound,
    substance or preparation.
    Beginning on the effective date of this amendatory Act of
the 98th General Assembly, "prescription and nonprescription
medicines and drugs" includes medical cannabis purchased from
a registered dispensing organization under the Compassionate
Use of Medical Cannabis Program Act.
    As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
102-4, eff. 4-27-21.)
 
    (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 Purchase
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 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
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, 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, "aviation
fuel" means jet fuel and aviation gasoline.
    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. On and after January 1,
2021, a certified service provider, as defined in the Leveling
the Playing Field for Illinois Retail Act, filing the return
under this Section on behalf of a remote retailer shall, at the
time of such return, pay to the Department the amount of tax
imposed by this Act less a discount of 1.75%. A remote retailer
using a certified service provider to file a return on its
behalf, as provided in the Leveling the Playing Field for
Illinois Retail Act, is not eligible for the discount. When
determining the discount allowed under this Section, retailers
shall include the amount of tax that would have been due at the
6.25% rate but for the 1.25% rate imposed on sales tax holiday
items under this amendatory Act of the 102nd General Assembly.
The discount under this Section is not allowed for the 1.25%
portion of taxes paid on aviation fuel that is subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133. 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. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
1.25% in this amendatory Act of the 102nd General Assembly on
sales tax holiday items had not occurred. For quarter monthly
payments due on or after July 1, 2023 and through June 30,
2024, "25% of the taxpayer's liability for the same calendar
month of the preceding year" shall be determined as if the rate
reduction to 1.25% in this amendatory Act of the 102nd General
Assembly on sales tax holiday items had not occurred. 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 for 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.
    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. If, in any
month, the tax on sales tax holiday items, as defined in
Section 2-8, is imposed at the rate of 1.25%, then 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 that the preceding month from the 1.25%
rate on the selling price of sales tax holiday items into the
County and Mass Transit District Fund.
    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% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
    Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. If, in any month, the
tax on sales tax holiday items, as defined in Section 2-8, is
imposed at the rate of 1.25%, then Beginning September 1,
2010, each month the Department shall pay into the Local
Government Tax Fund 80% of the net revenue realized for that
the preceding month from the 1.25% rate on the selling price of
sales tax holiday items into the Local Government Tax Fund.
    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
2021300,000,000
2022300,000,000
2023300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033375,000,000
2034375,000,000
2035375,000,000
2036450,000,000
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.
    Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
    Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
        Fiscal Year.............................Total Deposit
        2024.....................................$200,000,000
        2025....................................$206,000,000
        2026....................................$212,200,000
        2027....................................$218,500,000
        2028....................................$225,100,000
        2029....................................$288,700,000
        2030....................................$298,900,000
        2031....................................$309,300,000
        2032....................................$320,100,000
        2033....................................$331,200,000
        2034....................................$341,200,000
        2035....................................$351,400,000
        2036....................................$361,900,000
        2037....................................$372,800,000
        2038....................................$384,000,000
        2039....................................$395,500,000
        2040....................................$407,400,000
        2041....................................$419,600,000
        2042....................................$432,200,000
        2043....................................$445,100,000
    Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, the Energy Infrastructure Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 16% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2022 and until July 1, 2023,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 32% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. Beginning July 1, 2023 and
until July 1, 2024, subject to the payment of amounts into the
County and Mass Transit District Fund, the Local Government
Tax Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, the
Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2025, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
the Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 64% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning on July
1, 2025, subject to the payment of amounts into the County and
Mass Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 80% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. As used in this paragraph
"motor fuel" has the meaning given to that term in Section 1.1
of the Motor Fuel Tax 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. 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; 101-604, eff. 12-13-19;
101-636, eff. 6-10-20; 102-634, eff. 8-27-21; revised
12-7-21.)
 
    Section 65-15. The State Finance Act is amended by
changing Sections 6z-18 and 6z-20 as follows:
 
    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
    Sec. 6z-18. Local Government Tax Fund. A portion of the
money paid into the Local Government Tax Fund from sales of
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act and the Service Occupation Tax
Act, which occurred in municipalities, shall be distributed to
each municipality based upon the sales which occurred in that
municipality. The remainder shall be distributed to each
county based upon the sales which occurred in the
unincorporated area of that county.
    A portion of the money paid into the Local Government Tax
Fund from the 6.25% general use tax 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 any agency of this State's government shall be
distributed to municipalities as provided in this paragraph.
Each municipality shall receive the amount attributable to
sales for which Illinois addresses for titling or registration
purposes are given as being in such municipality. The
remainder of the money paid into the Local Government Tax Fund
from such sales shall be distributed to counties. Each county
shall receive the amount attributable to sales for which
Illinois addresses for titling or registration purposes are
given as being located in the unincorporated area of such
county.
    A portion of the money paid into the Local Government Tax
Fund from the 6.25% general rate (and, beginning July 1, 2000
and through December 31, 2000, the 1.25% rate on motor fuel and
gasohol, and beginning on August 6, 2010 through August 15,
2010, and beginning again on August 5, 2022 through August 14,
2022, the 1.25% rate on sales tax holiday items) on sales
subject to taxation under the Retailers' Occupation Tax Act
and the Service Occupation Tax Act, which occurred in
municipalities, shall be distributed to each municipality,
based upon the sales which occurred in that municipality. The
remainder shall be distributed to each county, based upon the
sales which occurred in the unincorporated area of such
county.
    For the purpose of determining allocation to the local
government unit, 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.
    Whenever the Department determines that a refund of money
paid into the Local Government Tax Fund should be made 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 Local
Government Tax Fund.
    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
during the second preceding calendar month for sales within a
STAR bond district and deposited into the Local Government Tax
Fund, less 3% of that amount, which shall be transferred 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 the Innovation
Development and Economy Act.
    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
and counties, the municipalities and counties to be those
entitled to distribution of taxes or penalties paid to the
Department during the second preceding calendar month. The
amount to be paid to each municipality or county shall be the
amount (not including credit memoranda) collected during the
second preceding calendar month by the Department and paid
into the Local Government Tax Fund, 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, and not
including any amount which the Department determines is
necessary to offset any amounts which are payable to a
different taxing body but were erroneously paid to the
municipality or county, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt, by the Comptroller, of the disbursement
certification to the municipalities and counties, 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.
    When certifying the amount of monthly disbursement to a
municipality or county under this Section, the Department
shall increase or decrease that amount by an amount necessary
to offset any misallocation of previous disbursements. The
offset amount shall be the amount erroneously disbursed within
the 6 months preceding the time a misallocation is discovered.
    The provisions directing the distributions from the
special fund in the State Treasury provided for in this
Section shall constitute an irrevocable and continuing
appropriation of all amounts as provided herein. The State
Treasurer and State Comptroller are hereby authorized to make
distributions as provided in this Section.
    In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from
a county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed from
the Local Government Tax Fund.
    As soon as possible after the effective date of this
amendatory Act of the 98th General Assembly, the State
Comptroller shall order and the State Treasurer shall transfer
$6,600,000 from the Local Government Tax Fund to the Illinois
State Medical Disciplinary Fund.
(Source: P.A. 100-1171, eff. 1-4-19.)
 
    (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)
    Sec. 6z-20. County and Mass Transit District Fund. Of the
money received from the 6.25% general rate (and, beginning
July 1, 2000 and through December 31, 2000, the 1.25% rate on
motor fuel and gasohol, and beginning on August 6, 2010
through August 15, 2010, and beginning again on August 5, 2022
through August 14, 2022, the 1.25% rate on sales tax holiday
items) on sales subject to taxation under the Retailers'
Occupation Tax Act and Service Occupation Tax Act and paid
into the County and Mass Transit District Fund, distribution
to the Regional Transportation Authority tax fund, created
pursuant to Section 4.03 of the Regional Transportation
Authority Act, for deposit therein shall be made based upon
the retail sales occurring in a county having more than
3,000,000 inhabitants. The remainder shall be distributed to
each county having 3,000,000 or fewer inhabitants based upon
the retail sales occurring in each such county.
    For the purpose of determining allocation to the local
government unit, 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.
    Of the money received from the 6.25% general use tax rate
on tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by any agency of this State's government and paid
into the County and Mass Transit District Fund, the amount for
which Illinois addresses for titling or registration purposes
are given as being in each county having more than 3,000,000
inhabitants shall be distributed into the Regional
Transportation Authority tax fund, created pursuant to Section
4.03 of the Regional Transportation Authority Act. The
remainder of the money paid from such sales shall be
distributed to each county based on sales for which Illinois
addresses for titling or registration purposes are given as
being located in the county. Any money paid into the Regional
Transportation Authority Occupation and Use Tax Replacement
Fund from the County and Mass Transit District Fund prior to
January 14, 1991, which has not been paid to the Authority
prior to that date, shall be transferred to the Regional
Transportation Authority tax fund.
    Whenever the Department determines that a refund of money
paid into the County and Mass Transit District Fund should be
made 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 County
and Mass Transit District Fund.
    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
during the second preceding calendar month for sales within a
STAR bond district and deposited into the County and Mass
Transit District Fund, less 3% of that amount, which shall be
transferred 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 the
Innovation Development and Economy Act.
    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 Regional
Transportation Authority and to named counties, the counties
to be those entitled to distribution, as hereinabove provided,
of taxes or penalties paid to the Department during the second
preceding calendar month. The amount to be paid to the
Regional Transportation Authority and each county having
3,000,000 or fewer inhabitants shall be the amount (not
including credit memoranda) collected during the second
preceding calendar month by the Department and paid into the
County and Mass Transit District Fund, 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, 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
Regional Transportation Authority or county, and not including
any amounts that are transferred to the STAR Bonds Revenue
Fund, less 1.5% of the amount to be paid to the Regional
Transportation Authority, which shall be transferred into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the Regional
Transportation Authority, 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 Regional Transportation Authority,
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.
    When certifying the amount of a monthly disbursement to
the Regional Transportation Authority or to a county under
this Section, the Department shall increase or decrease that
amount by an amount necessary to offset any misallocation of
previous disbursements. The offset amount shall be the amount
erroneously disbursed within the 6 months preceding the time a
misallocation is discovered.
    The provisions directing the distributions from the
special fund in the State Treasury provided for in this
Section and from the Regional Transportation Authority tax
fund created by Section 4.03 of the Regional Transportation
Authority Act shall constitute an irrevocable and continuing
appropriation of all amounts as provided herein. The State
Treasurer and State Comptroller are hereby authorized to make
distributions as provided in this Section.
    In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from
a county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed from
the County and Mass Transit District Fund or Local Government
Distributive Fund, as the case may be.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
ARTICLE 70. BREAST PUMPS

 
    Section 70-5. The Use Tax Act is amended by changing
Section 3-5 as follows:
 
    (35 ILCS 105/3-5)
    Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
    (1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
    (2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
    (3) Personal property purchased by a not-for-profit arts
or cultural organization that establishes, by proof required
by the Department by rule, that it has received an exemption
under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
    (4) Personal property purchased by a governmental body, by
a corporation, society, association, foundation, or
institution organized and operated exclusively for charitable,
religious, or educational purposes, or by a not-for-profit
corporation, society, association, foundation, institution, or
organization that has no compensated officers or employees and
that 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. On and after July 1,
1987, however, no entity otherwise eligible for this exemption
shall make tax-free purchases unless it has an active
exemption identification number issued by the Department.
    (5) Until July 1, 2003, a passenger car that is a
replacement vehicle to the extent that the purchase price of
the car is subject to the Replacement Vehicle Tax.
    (6) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new
and used, and including that manufactured on special order,
certified by the purchaser to be used primarily for graphic
arts production, and including machinery and equipment
purchased for lease. Equipment includes chemicals or chemicals
acting as catalysts but only if the chemicals or chemicals
acting as catalysts effect a direct and immediate change upon
a graphic arts product. Beginning on July 1, 2017, graphic
arts machinery and equipment is included in the manufacturing
and assembling machinery and equipment exemption under
paragraph (18).
    (7) Farm chemicals.
    (8) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
    (9) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
    (10) A motor vehicle that is used for automobile renting,
as defined in the Automobile Renting Occupation and Use Tax
Act.
    (11) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and
equipment under this item (11). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from a
motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price
of the tender is separately stated.
    Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
    Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (11) is exempt from the
provisions of Section 3-90.
    (12) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a flight
destined for or returning from a location or locations outside
the United States without regard to previous or subsequent
domestic stopovers.
    Beginning July 1, 2013, fuel and petroleum products sold
to or used by an air carrier, certified by the carrier to be
used for consumption, shipment, or storage in the conduct of
its business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports
at least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
    (13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages purchased at retail from a retailer, to the
extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the
employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with
respect to which the service charge is imposed.
    (14) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
pipe and tubular goods, including casing and drill strings,
(iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field
exploration, drilling, and production equipment, and (vi)
machinery and equipment purchased for lease; but excluding
motor vehicles required to be registered under the Illinois
Vehicle Code.
    (15) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including
that manufactured on special order, certified by the purchaser
to be used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
    (16) Until July 1, 2023, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
    (17) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by the
retailer, 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 the user, and not subject to sale or resale.
    (18) Manufacturing and assembling machinery and equipment
used primarily in the process of manufacturing or assembling
tangible personal property for wholesale or retail sale or
lease, whether that 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 that sale or lease is made apart from or as
an incident to the seller's engaging in the service occupation
of producing machines, tools, dies, jigs, patterns, gauges, or
other similar items of no commercial value on special order
for a particular purchaser. The exemption provided by this
paragraph (18) includes production related tangible personal
property, as defined in Section 3-50, purchased on or after
July 1, 2019. The exemption provided by this paragraph (18)
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. Beginning on July 1,
2017, the exemption provided by this paragraph (18) includes,
but is not limited to, graphic arts machinery and equipment,
as defined in paragraph (6) of this Section.
    (19) Personal property delivered to a purchaser or
purchaser's donee inside Illinois when the purchase order for
that personal property was received by a florist located
outside Illinois who has a florist located inside Illinois
deliver the personal property.
    (20) Semen used for artificial insemination of livestock
for direct agricultural production.
    (21) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (21) is exempt from the
provisions of Section 3-90, and the exemption provided for
under this item (21) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after
January 1, 2008 for such taxes paid during the period
beginning May 30, 2000 and ending on January 1, 2008.
    (22) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used
in any other non-exempt manner, the lessor shall be liable for
the tax imposed under this Act or the Service Use Tax Act, as
the case may be, based on the fair market value of the property
at the time the non-qualifying use occurs. No lessor shall
collect or attempt to collect an amount (however designated)
that purports to reimburse that lessor for the tax imposed by
this Act or the Service Use Tax Act, as the case may be, if the
tax has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the
Department.
    (23) Personal property purchased by a lessor who leases
the property, under a lease of one year or longer executed or
in effect at the time the lessor would otherwise be subject to
the tax imposed by this Act, to a governmental body that has
been issued an active sales tax exemption identification
number by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner that
does not qualify for this exemption or used in any other
non-exempt manner, the lessor shall be liable for the tax
imposed under this Act or the Service Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the non-qualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the
Department.
    (24) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
    (25) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities located
in the declared disaster area within 6 months after the
disaster.
    (26) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-90.
    (27) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the
Department to be organized and operated exclusively for
educational purposes. For purposes of this exemption, "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for educational purposes" means all tax-supported public
schools, private schools that offer systematic instruction in
useful branches of learning by methods common to public
schools and that compare favorably in their scope and
intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes
organized and operated exclusively to provide a course of
study of not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial
occupation.
    (28) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-90.
    (29) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and
other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003, machines
and parts for machines used in commercial, coin-operated
amusement and vending business if a use or occupation tax is
paid on the gross receipts derived from the use of the
commercial, coin-operated amusement and vending machines. This
paragraph is exempt from the provisions of Section 3-90.
    (30) Beginning January 1, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
    (31) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
purchased by a lessor who leases the equipment, under a lease
of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this
Act, to a hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used
in any other nonexempt manner, the lessor shall be liable for
the tax imposed under this Act or the Service Use Tax Act, as
the case may be, based on the fair market value of the property
at the time the nonqualifying use occurs. No lessor shall
collect or attempt to collect an amount (however designated)
that purports to reimburse that lessor for the tax imposed by
this Act or the Service Use Tax Act, as the case may be, if the
tax has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of
Section 3-90.
    (32) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property purchased by a lessor
who leases the property, under a lease of one year or longer
executed or in effect at the time the lessor would otherwise be
subject to the tax imposed by this Act, to a governmental body
that has been issued an active sales tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the property is leased
in a manner that does not qualify for this exemption or used in
any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the
case may be, based on the fair market value of the property at
the time the nonqualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of
Section 3-90.
    (33) On and after July 1, 2003 and through June 30, 2004,
the use in this State of motor vehicles of the second division
with a gross vehicle weight in excess of 8,000 pounds and that
are 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, the term "used for
commercial purposes" means the transportation of persons or
property in furtherance of any commercial or industrial
enterprise, whether for-hire or not.
    (34) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued
under Title IV of the Environmental Protection Act. This
paragraph is exempt from the provisions of Section 3-90.
    (35) Beginning January 1, 2010 and continuing through
December 31, 2024, materials, parts, equipment, components,
and furnishings incorporated into or upon an aircraft as part
of the modification, refurbishment, completion, replacement,
repair, or maintenance of the aircraft. This exemption
includes consumable supplies used in the modification,
refurbishment, completion, replacement, repair, and
maintenance of aircraft, but excludes any materials, parts,
equipment, components, and consumable supplies used in the
modification, replacement, repair, and maintenance of aircraft
engines or power plants, whether such engines or power plants
are installed or uninstalled upon any such aircraft.
"Consumable supplies" include, but are not limited to,
adhesive, tape, sandpaper, general purpose lubricants,
cleaning solution, latex gloves, and protective films. This
exemption applies only to the use of qualifying tangible
personal property by persons who modify, refurbish, complete,
repair, replace, or maintain aircraft and who (i) hold an Air
Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part
129 of the Federal Aviation Regulations. The changes made to
this paragraph (35) by Public Act 98-534 are declarative of
existing law. It is the intent of the General Assembly that the
exemption under this paragraph (35) applies continuously from
January 1, 2010 through December 31, 2024; however, no claim
for credit or refund is allowed for taxes paid as a result of
the disallowance of this exemption on or after January 1, 2015
and prior to the effective date of this amendatory Act of the
101st General Assembly.
    (36) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt
instruments issued by the public-facilities corporation in
connection with the development of the municipal convention
hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions
of Section 3-90.
    (37) Beginning January 1, 2017 and through December 31,
2026, menstrual pads, tampons, and menstrual cups.
    (38) Merchandise that is subject to the Rental Purchase
Agreement Occupation and Use Tax. The purchaser must certify
that the item is purchased to be rented subject to a rental
purchase agreement, as defined in the Rental Purchase
Agreement Act, and provide proof of registration under the
Rental Purchase Agreement Occupation and Use Tax Act. This
paragraph is exempt from the provisions of Section 3-90.
    (39) Tangible personal property purchased by a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-90.
    (40) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had Public Act 101-31 been in effect may apply for and
obtain an exemption for subsequent purchases of computer
equipment or enabling software purchased or leased to upgrade,
supplement, or replace computer equipment or enabling software
purchased or leased in the original investment that would have
qualified.
    The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (40) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    For the purposes of this item (40):
        "Data center" means a building or a series of
    buildings rehabilitated or constructed to house working
    servers in one physical location or multiple sites within
    the State of Illinois.
        "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. The term "qualified tangible personal
    property" also includes building materials physically
    incorporated in to the qualifying data center. To document
    the exemption allowed under this Section, the retailer
    must obtain from the purchaser a copy of the certificate
    of eligibility issued by the Department of Commerce and
    Economic Opportunity.
    This item (40) is exempt from the provisions of Section
3-90.
    (41) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits. This
item (41) is exempt from the provisions of Section 3-90. As
used in this item (41):
        "Breast pump" means an electrically controlled or
    manually controlled pump device designed or marketed to be
    used to express milk from a human breast during lactation,
    including the pump device and any battery, AC adapter, or
    other power supply unit that is used to power the pump
    device and is packaged and sold with the pump device at the
    time of sale.
        "Breast pump collection and storage supplies" means
    items of tangible personal property designed or marketed
    to be used in conjunction with a breast pump to collect
    milk expressed from a human breast and to store collected
    milk until it is ready for consumption.
        "Breast pump collection and storage supplies"
    includes, but is not limited to: breast shields and breast
    shield connectors; breast pump tubes and tubing adapters;
    breast pump valves and membranes; backflow protectors and
    backflow protector adaptors; bottles and bottle caps
    specific to the operation of the breast pump; and breast
    milk storage bags.
        "Breast pump collection and storage supplies" does not
    include: (1) bottles and bottle caps not specific to the
    operation of the breast pump; (2) breast pump travel bags
    and other similar carrying accessories, including ice
    packs, labels, and other similar products; (3) breast pump
    cleaning supplies; (4) nursing bras, bra pads, breast
    shells, and other similar products; and (5) creams,
    ointments, and other similar products that relieve
    breastfeeding-related symptoms or conditions of the
    breasts or nipples, unless sold as part of a breast pump
    kit that is pre-packaged by the breast pump manufacturer
    or distributor.
        "Breast pump kit" means a kit that: (1) contains no
    more than a breast pump, breast pump collection and
    storage supplies, a rechargeable battery for operating the
    breast pump, a breastmilk cooler, bottle stands, ice
    packs, and a breast pump carrying case; and (2) is
    pre-packaged as a breast pump kit by the breast pump
    manufacturer or distributor.
(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
6-17-21.)
 
    Section 70-10. The Service Use Tax Act is amended by
changing Section 3-5 as follows:
 
    (35 ILCS 110/3-5)
    Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
    (1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
    (2) Personal property purchased by a non-profit Illinois
county fair association for use in conducting, operating, or
promoting the county fair.
    (3) Personal property purchased by a not-for-profit arts
or cultural organization that establishes, by proof required
by the Department by rule, that it has received an exemption
under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
    (4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
    (5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new
and used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on
July 1, 2017, graphic arts machinery and equipment is included
in the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
    (6) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
    (7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and
equipment under this item (7). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from a
motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price
of the tender is separately stated.
    Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
    Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-75.
    (8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a flight
destined for or returning from a location or locations outside
the United States without regard to previous or subsequent
domestic stopovers.
    Beginning July 1, 2013, fuel and petroleum products sold
to or used by an air carrier, certified by the carrier to be
used for consumption, shipment, or storage in the conduct of
its business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports
at least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
    (9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages acquired as an incident to the purchase of a
service from a serviceman, to the extent that the proceeds of
the service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
    (10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
pipe and tubular goods, including casing and drill strings,
(iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field
exploration, drilling, and production equipment, and (vi)
machinery and equipment purchased for lease; but excluding
motor vehicles required to be registered under the Illinois
Vehicle Code.
    (11) Proceeds from the sale of photoprocessing machinery
and equipment, including repair and replacement parts, both
new and used, including that manufactured on special order,
certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and
equipment purchased for lease.
    (12) Until July 1, 2023, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
    (13) Semen used for artificial insemination of livestock
for direct agricultural production.
    (14) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (14) is exempt from the
provisions of Section 3-75, and the exemption provided for
under this item (14) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after
January 1, 2008 (the effective date of Public Act 95-88) for
such taxes paid during the period beginning May 30, 2000 and
ending on January 1, 2008 (the effective date of Public Act
95-88).
    (15) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used
in any other non-exempt manner, the lessor shall be liable for
the tax imposed under this Act or the Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the non-qualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not
been paid by the lessor. If a lessor improperly collects any
such amount from the lessee, the lessee shall have a legal
right to claim a refund of that amount from the lessor. If,
however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department.
    (16) Personal property purchased by a lessor who leases
the property, under a lease of one year or longer executed or
in effect at the time the lessor would otherwise be subject to
the tax imposed by this Act, to a governmental body that has
been issued an active tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation
Tax Act. If the property is leased in a manner that does not
qualify for this exemption or is used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid
by the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that
amount is not refunded to the lessee for any reason, the lessor
is liable to pay that amount to the Department.
    (17) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
    (18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities located
in the declared disaster area within 6 months after the
disaster.
    (19) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-75.
    (20) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the
Department to be organized and operated exclusively for
educational purposes. For purposes of this exemption, "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for educational purposes" means all tax-supported public
schools, private schools that offer systematic instruction in
useful branches of learning by methods common to public
schools and that compare favorably in their scope and
intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes
organized and operated exclusively to provide a course of
study of not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial
occupation.
    (21) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-75.
    (22) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and
other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003, machines
and parts for machines used in commercial, coin-operated
amusement and vending business if a use or occupation tax is
paid on the gross receipts derived from the use of the
commercial, coin-operated amusement and vending machines. This
paragraph is exempt from the provisions of Section 3-75.
    (23) Beginning August 23, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
    (24) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
purchased by a lessor who leases the equipment, under a lease
of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this
Act, to a hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used
in any other nonexempt manner, the lessor shall be liable for
the tax imposed under this Act or the Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the nonqualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not
been paid by the lessor. If a lessor improperly collects any
such amount from the lessee, the lessee shall have a legal
right to claim a refund of that amount from the lessor. If,
however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of
Section 3-75.
    (25) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property purchased by a lessor
who leases the property, under a lease of one year or longer
executed or in effect at the time the lessor would otherwise be
subject to the tax imposed by this Act, to a governmental body
that has been issued an active tax exemption identification
number by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner that
does not qualify for this exemption or is used in any other
nonexempt manner, the lessor shall be liable for the tax
imposed under this Act or the Use Tax Act, as the case may be,
based on the fair market value of the property at the time the
nonqualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid
by the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that
amount is not refunded to the lessee for any reason, the lessor
is liable to pay that amount to the Department. This paragraph
is exempt from the provisions of Section 3-75.
    (26) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued
under Title IV of the Environmental Protection Act. This
paragraph is exempt from the provisions of Section 3-75.
    (27) Beginning January 1, 2010 and continuing through
December 31, 2024, materials, parts, equipment, components,
and furnishings incorporated into or upon an aircraft as part
of the modification, refurbishment, completion, replacement,
repair, or maintenance of the aircraft. This exemption
includes consumable supplies used in the modification,
refurbishment, completion, replacement, repair, and
maintenance of aircraft, but excludes any materials, parts,
equipment, components, and consumable supplies used in the
modification, replacement, repair, and maintenance of aircraft
engines or power plants, whether such engines or power plants
are installed or uninstalled upon any such aircraft.
"Consumable supplies" include, but are not limited to,
adhesive, tape, sandpaper, general purpose lubricants,
cleaning solution, latex gloves, and protective films. This
exemption applies only to the use of qualifying tangible
personal property transferred incident to the modification,
refurbishment, completion, replacement, repair, or maintenance
of aircraft by persons who (i) hold an Air Agency Certificate
and are empowered to operate an approved repair station by the
Federal Aviation Administration, (ii) have a Class IV Rating,
and (iii) conduct operations in accordance with Part 145 of
the Federal Aviation Regulations. The exemption does not
include aircraft operated by a commercial air carrier
providing scheduled passenger air service pursuant to
authority issued under Part 121 or Part 129 of the Federal
Aviation Regulations. The changes made to this paragraph (27)
by Public Act 98-534 are declarative of existing law. It is the
intent of the General Assembly that the exemption under this
paragraph (27) applies continuously from January 1, 2010
through December 31, 2024; however, no claim for credit or
refund is allowed for taxes paid as a result of the
disallowance of this exemption on or after January 1, 2015 and
prior to the effective date of this amendatory Act of the 101st
General Assembly.
    (28) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt
instruments issued by the public-facilities corporation in
connection with the development of the municipal convention
hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions
of Section 3-75.
    (29) Beginning January 1, 2017 and through December 31,
2026, menstrual pads, tampons, and menstrual cups.
    (30) Tangible personal property transferred to a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-75.
    (31) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had this amendatory Act of the 101st General Assembly
been in effect, may apply for and obtain an exemption for
subsequent purchases of computer equipment or enabling
software purchased or leased to upgrade, supplement, or
replace computer equipment or enabling software purchased or
leased in the original investment that would have qualified.
    The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (31) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    For the purposes of this item (31):
        "Data center" means a building or a series of
    buildings rehabilitated or constructed to house working
    servers in one physical location or multiple sites within
    the State of Illinois.
        "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. The term "qualified tangible personal
    property" also includes building materials physically
    incorporated in to the qualifying data center. To document
    the exemption allowed under this Section, the retailer
    must obtain from the purchaser a copy of the certificate
    of eligibility issued by the Department of Commerce and
    Economic Opportunity.
    This item (31) is exempt from the provisions of Section
3-75.
    (32) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits. This
item (32) is exempt from the provisions of Section 3-75. As
used in this item (32):
        "Breast pump" means an electrically controlled or
    manually controlled pump device designed or marketed to be
    used to express milk from a human breast during lactation,
    including the pump device and any battery, AC adapter, or
    other power supply unit that is used to power the pump
    device and is packaged and sold with the pump device at the
    time of sale.
        "Breast pump collection and storage supplies" means
    items of tangible personal property designed or marketed
    to be used in conjunction with a breast pump to collect
    milk expressed from a human breast and to store collected
    milk until it is ready for consumption.
        "Breast pump collection and storage supplies"
    includes, but is not limited to: breast shields and breast
    shield connectors; breast pump tubes and tubing adapters;
    breast pump valves and membranes; backflow protectors and
    backflow protector adaptors; bottles and bottle caps
    specific to the operation of the breast pump; and breast
    milk storage bags.
        "Breast pump collection and storage supplies" does not
    include: (1) bottles and bottle caps not specific to the
    operation of the breast pump; (2) breast pump travel bags
    and other similar carrying accessories, including ice
    packs, labels, and other similar products; (3) breast pump
    cleaning supplies; (4) nursing bras, bra pads, breast
    shells, and other similar products; and (5) creams,
    ointments, and other similar products that relieve
    breastfeeding-related symptoms or conditions of the
    breasts or nipples, unless sold as part of a breast pump
    kit that is pre-packaged by the breast pump manufacturer
    or distributor.
        "Breast pump kit" means a kit that: (1) contains no
    more than a breast pump, breast pump collection and
    storage supplies, a rechargeable battery for operating the
    breast pump, a breastmilk cooler, bottle stands, ice
    packs, and a breast pump carrying case; and (2) is
    pre-packaged as a breast pump kit by the breast pump
    manufacturer or distributor.
(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
    Section 70-15. The Service Occupation Tax Act is amended
by changing Section 3-5 as follows:
 
    (35 ILCS 115/3-5)
    Sec. 3-5. Exemptions. The following tangible personal
property is exempt from the tax imposed by this Act:
    (1) Personal property sold by a corporation, society,
association, foundation, institution, or organization, other
than a limited liability company, that is organized and
operated as a not-for-profit service enterprise for the
benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the purpose
of resale by the enterprise.
    (2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
    (3) Personal property purchased by any not-for-profit arts
or cultural organization that establishes, by proof required
by the Department by rule, that it has received an exemption
under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
    (4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
    (5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new
and used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on
July 1, 2017, graphic arts machinery and equipment is included
in the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
    (6) Personal property sold by a teacher-sponsored student
organization affiliated with an elementary or secondary school
located in Illinois.
    (7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and
equipment under this item (7). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from a
motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price
of the tender is separately stated.
    Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
    Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-55.
    (8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a flight
destined for or returning from a location or locations outside
the United States without regard to previous or subsequent
domestic stopovers.
    Beginning July 1, 2013, fuel and petroleum products sold
to or used by an air carrier, certified by the carrier to be
used for consumption, shipment, or storage in the conduct of
its business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports
at least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
    (9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
    (10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
pipe and tubular goods, including casing and drill strings,
(iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field
exploration, drilling, and production equipment, and (vi)
machinery and equipment purchased for lease; but excluding
motor vehicles required to be registered under the Illinois
Vehicle Code.
    (11) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including
that manufactured on special order, certified by the purchaser
to be used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
    (12) Until July 1, 2023, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
    (13) Beginning January 1, 1992 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks and food that has been prepared for immediate
consumption) and prescription and non-prescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
    (14) Semen used for artificial insemination of livestock
for direct agricultural production.
    (15) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (15) is exempt from the
provisions of Section 3-55, and the exemption provided for
under this item (15) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after
January 1, 2008 (the effective date of Public Act 95-88) for
such taxes paid during the period beginning May 30, 2000 and
ending on January 1, 2008 (the effective date of Public Act
95-88).
    (16) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act.
    (17) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body that
has been issued an active tax exemption identification number
by the Department under Section 1g of the Retailers'
Occupation Tax Act.
    (18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
    (19) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities located
in the declared disaster area within 6 months after the
disaster.
    (20) Beginning July 1, 1999, game or game birds sold at a
"game breeding and hunting preserve area" as that term is used
in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-55.
    (21) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the
Department to be organized and operated exclusively for
educational purposes. For purposes of this exemption, "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for educational purposes" means all tax-supported public
schools, private schools that offer systematic instruction in
useful branches of learning by methods common to public
schools and that compare favorably in their scope and
intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes
organized and operated exclusively to provide a course of
study of not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial
occupation.
    (22) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-55.
    (23) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and
other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003, machines
and parts for machines used in commercial, coin-operated
amusement and vending business if a use or occupation tax is
paid on the gross receipts derived from the use of the
commercial, coin-operated amusement and vending machines. This
paragraph is exempt from the provisions of Section 3-55.
    (24) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients sold to
a lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. This paragraph is exempt
from the provisions of Section 3-55.
    (25) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property sold to a lessor who
leases the property, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
governmental body that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. This paragraph is exempt
from the provisions of Section 3-55.
    (26) Beginning on January 1, 2002 and through June 30,
2016, tangible personal property purchased from an Illinois
retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property
in Illinois, temporarily store the property in Illinois (i)
for the purpose of subsequently transporting it outside this
State for use or consumption thereafter solely outside this
State or (ii) for the purpose of being processed, fabricated,
or manufactured into, attached to, or incorporated into other
tangible personal property to be transported outside this
State and thereafter used or consumed solely outside this
State. The Director of Revenue shall, pursuant to rules
adopted in accordance with the Illinois Administrative
Procedure Act, issue a permit to any taxpayer in good standing
with the Department who is eligible for the exemption under
this paragraph (26). The permit issued under this paragraph
(26) shall authorize the holder, to the extent and in the
manner specified in the rules adopted under this Act, to
purchase tangible personal property from a retailer exempt
from the taxes imposed by this Act. Taxpayers shall maintain
all necessary books and records to substantiate the use and
consumption of all such tangible personal property outside of
the State of Illinois.
    (27) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued
under Title IV of the Environmental Protection Act. This
paragraph is exempt from the provisions of Section 3-55.
    (28) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt
instruments issued by the public-facilities corporation in
connection with the development of the municipal convention
hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions
of Section 3-55.
    (29) Beginning January 1, 2010 and continuing through
December 31, 2024, materials, parts, equipment, components,
and furnishings incorporated into or upon an aircraft as part
of the modification, refurbishment, completion, replacement,
repair, or maintenance of the aircraft. This exemption
includes consumable supplies used in the modification,
refurbishment, completion, replacement, repair, and
maintenance of aircraft, but excludes any materials, parts,
equipment, components, and consumable supplies used in the
modification, replacement, repair, and maintenance of aircraft
engines or power plants, whether such engines or power plants
are installed or uninstalled upon any such aircraft.
"Consumable supplies" include, but are not limited to,
adhesive, tape, sandpaper, general purpose lubricants,
cleaning solution, latex gloves, and protective films. This
exemption applies only to the transfer of qualifying tangible
personal property incident to the modification, refurbishment,
completion, replacement, repair, or maintenance of an aircraft
by persons who (i) hold an Air Agency Certificate and are
empowered to operate an approved repair station by the Federal
Aviation Administration, (ii) have a Class IV Rating, and
(iii) conduct operations in accordance with Part 145 of the
Federal Aviation Regulations. The exemption does not include
aircraft operated by a commercial air carrier providing
scheduled passenger air service pursuant to authority issued
under Part 121 or Part 129 of the Federal Aviation
Regulations. The changes made to this paragraph (29) by Public
Act 98-534 are declarative of existing law. It is the intent of
the General Assembly that the exemption under this paragraph
(29) applies continuously from January 1, 2010 through
December 31, 2024; however, no claim for credit or refund is
allowed for taxes paid as a result of the disallowance of this
exemption on or after January 1, 2015 and prior to the
effective date of this amendatory Act of the 101st General
Assembly.
    (30) Beginning January 1, 2017 and through December 31,
2026, menstrual pads, tampons, and menstrual cups.
    (31) Tangible personal property transferred to a purchaser
who is exempt from tax by operation of federal law. This
paragraph is exempt from the provisions of Section 3-55.
    (32) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had this amendatory Act of the 101st General Assembly
been in effect, may apply for and obtain an exemption for
subsequent purchases of computer equipment or enabling
software purchased or leased to upgrade, supplement, or
replace computer equipment or enabling software purchased or
leased in the original investment that would have qualified.
    The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (32) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    For the purposes of this item (32):
        "Data center" means a building or a series of
    buildings rehabilitated or constructed to house working
    servers in one physical location or multiple sites within
    the State of Illinois.
        "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. The term "qualified tangible personal
    property" also includes building materials physically
    incorporated in to the qualifying data center. To document
    the exemption allowed under this Section, the retailer
    must obtain from the purchaser a copy of the certificate
    of eligibility issued by the Department of Commerce and
    Economic Opportunity.
    This item (32) is exempt from the provisions of Section
3-55.
    (33) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits. This
item (33) is exempt from the provisions of Section 3-55. As
used in this item (33):
        "Breast pump" means an electrically controlled or
    manually controlled pump device designed or marketed to be
    used to express milk from a human breast during lactation,
    including the pump device and any battery, AC adapter, or
    other power supply unit that is used to power the pump
    device and is packaged and sold with the pump device at the
    time of sale.
        "Breast pump collection and storage supplies" means
    items of tangible personal property designed or marketed
    to be used in conjunction with a breast pump to collect
    milk expressed from a human breast and to store collected
    milk until it is ready for consumption.
        "Breast pump collection and storage supplies"
    includes, but is not limited to: breast shields and breast
    shield connectors; breast pump tubes and tubing adapters;
    breast pump valves and membranes; backflow protectors and
    backflow protector adaptors; bottles and bottle caps
    specific to the operation of the breast pump; and breast
    milk storage bags.
        "Breast pump collection and storage supplies" does not
    include: (1) bottles and bottle caps not specific to the
    operation of the breast pump; (2) breast pump travel bags
    and other similar carrying accessories, including ice
    packs, labels, and other similar products; (3) breast pump
    cleaning supplies; (4) nursing bras, bra pads, breast
    shells, and other similar products; and (5) creams,
    ointments, and other similar products that relieve
    breastfeeding-related symptoms or conditions of the
    breasts or nipples, unless sold as part of a breast pump
    kit that is pre-packaged by the breast pump manufacturer
    or distributor.
        "Breast pump kit" means a kit that: (1) contains no
    more than a breast pump, breast pump collection and
    storage supplies, a rechargeable battery for operating the
    breast pump, a breastmilk cooler, bottle stands, ice
    packs, and a breast pump carrying case; and (2) is
    pre-packaged as a breast pump kit by the breast pump
    manufacturer or distributor.
(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
    Section 70-20. The Retailers' Occupation Tax Act is
amended by changing Section 2-5 as follows:
 
    (35 ILCS 120/2-5)
    Sec. 2-5. Exemptions. Gross receipts from proceeds from
the sale of the following tangible personal property are
exempt from the tax imposed by this Act:
        (1) Farm chemicals.
        (2) Farm machinery and equipment, both new and used,
    including that manufactured on special order, certified by
    the purchaser to be used primarily for production
    agriculture or State or federal agricultural programs,
    including individual replacement parts for the machinery
    and equipment, including machinery and equipment purchased
    for lease, and including implements of husbandry defined
    in Section 1-130 of the Illinois Vehicle Code, farm
    machinery and agricultural chemical and fertilizer
    spreaders, and nurse wagons required to be registered
    under Section 3-809 of the Illinois Vehicle Code, but
    excluding other motor vehicles required to be registered
    under the Illinois Vehicle Code. Horticultural polyhouses
    or hoop houses used for propagating, growing, or
    overwintering plants shall be considered farm machinery
    and equipment under this item (2). Agricultural chemical
    tender tanks and dry boxes shall include units sold
    separately from a motor vehicle required to be licensed
    and units sold mounted on a motor vehicle required to be
    licensed, if the selling price of the tender is separately
    stated.
        Farm machinery and equipment shall include precision
    farming equipment that is installed or purchased to be
    installed on farm machinery and equipment including, but
    not limited to, tractors, harvesters, sprayers, planters,
    seeders, or spreaders. Precision farming equipment
    includes, but is not limited to, soil testing sensors,
    computers, monitors, software, global positioning and
    mapping systems, and other such equipment.
        Farm machinery and equipment also includes computers,
    sensors, software, and related equipment used primarily in
    the computer-assisted operation of production agriculture
    facilities, equipment, and activities such as, but not
    limited to, the collection, monitoring, and correlation of
    animal and crop data for the purpose of formulating animal
    diets and agricultural chemicals. This item (2) is exempt
    from the provisions of Section 2-70.
        (3) Until July 1, 2003, distillation machinery and
    equipment, sold as a unit or kit, assembled or installed
    by the retailer, 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 the user, and not subject to sale
    or resale.
        (4) Until July 1, 2003 and beginning again September
    1, 2004 through August 30, 2014, graphic arts machinery
    and equipment, including repair and replacement parts,
    both new and used, and including that manufactured on
    special order or purchased for lease, certified by the
    purchaser to be used primarily for graphic arts
    production. Equipment includes chemicals or chemicals
    acting as catalysts but only if the chemicals or chemicals
    acting as catalysts effect a direct and immediate change
    upon a graphic arts product. Beginning on July 1, 2017,
    graphic arts machinery and equipment is included in the
    manufacturing and assembling machinery and equipment
    exemption under paragraph (14).
        (5) A motor vehicle that is used for automobile
    renting, as defined in the Automobile Renting Occupation
    and Use Tax Act. This paragraph is exempt from the
    provisions of Section 2-70.
        (6) Personal property sold by a teacher-sponsored
    student organization affiliated with an elementary or
    secondary school located in Illinois.
        (7) Until July 1, 2003, proceeds of that portion of
    the selling price of a passenger car the sale of which is
    subject to the Replacement Vehicle Tax.
        (8) Personal property sold to an Illinois county fair
    association for use in conducting, operating, or promoting
    the county fair.
        (9) Personal property sold to a not-for-profit arts or
    cultural organization that establishes, by proof required
    by the Department by rule, that it has received an
    exemption under Section 501(c)(3) of the Internal Revenue
    Code and that is organized and operated primarily for the
    presentation or support of arts or cultural programming,
    activities, or services. These organizations include, but
    are not limited to, music and dramatic arts organizations
    such as symphony orchestras and theatrical groups, arts
    and cultural service organizations, local arts councils,
    visual arts organizations, and media arts organizations.
    On and after July 1, 2001 (the effective date of Public Act
    92-35), however, an entity otherwise eligible for this
    exemption shall not make tax-free purchases unless it has
    an active identification number issued by the Department.
        (10) Personal property sold by a corporation, society,
    association, foundation, institution, or organization,
    other than a limited liability company, that is organized
    and operated as a not-for-profit service enterprise for
    the benefit of persons 65 years of age or older if the
    personal property was not purchased by the enterprise for
    the purpose of resale by the enterprise.
        (11) Personal property sold to a governmental body, to
    a corporation, society, association, foundation, or
    institution organized and operated exclusively for
    charitable, religious, or educational purposes, or to a
    not-for-profit corporation, society, association,
    foundation, institution, or organization that has no
    compensated officers or employees and that 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. On and after July 1,
    1987, however, no entity otherwise eligible for this
    exemption shall make tax-free purchases unless it has an
    active identification number issued by the Department.
        (12) (Blank).
        (12-5) On and after July 1, 2003 and through June 30,
    2004, motor vehicles of the second division with a gross
    vehicle weight in excess of 8,000 pounds that are 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.
        (13) Proceeds from sales to owners, lessors, or
    shippers of tangible personal property that 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.
        (14) Machinery and equipment that will be used by the
    purchaser, or a lessee of the purchaser, primarily in the
    process of manufacturing or assembling tangible personal
    property for wholesale or retail sale or lease, whether
    the 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 the sale or lease is made apart from or
    as an incident to the seller's engaging in the service
    occupation of producing machines, tools, dies, jigs,
    patterns, gauges, or other similar items of no commercial
    value on special order for a particular purchaser. The
    exemption provided by this paragraph (14) 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. Beginning on July 1, 2017, the exemption
    provided by this paragraph (14) includes, but is not
    limited to, graphic arts machinery and equipment, as
    defined in paragraph (4) of this Section.
        (15) Proceeds of mandatory service charges separately
    stated on customers' bills for purchase and consumption of
    food and beverages, to the extent that the proceeds of the
    service charge are in fact turned over as tips or as a
    substitute for tips to the employees who participate
    directly in preparing, serving, hosting or cleaning up the
    food or beverage function with respect to which the
    service charge is imposed.
        (16) Tangible personal property sold to a purchaser if
    the purchaser is exempt from use tax by operation of
    federal law. This paragraph is exempt from the provisions
    of Section 2-70.
        (17) Tangible personal property sold to a common
    carrier by rail or motor that receives the physical
    possession of the property in Illinois and that transports
    the property, or shares with another common carrier in the
    transportation of the property, out of Illinois on a
    standard uniform bill of lading showing the seller of the
    property as the shipper or consignor of the property to a
    destination outside Illinois, for use outside Illinois.
        (18) Legal tender, currency, medallions, or gold or
    silver coinage issued by the State of Illinois, the
    government of the United States of America, or the
    government of any foreign country, and bullion.
        (19) Until July 1, 2003, oil field exploration,
    drilling, and production equipment, including (i) rigs and
    parts of rigs, rotary rigs, cable tool rigs, and workover
    rigs, (ii) pipe and tubular goods, including casing and
    drill strings, (iii) pumps and pump-jack units, (iv)
    storage tanks and flow lines, (v) any individual
    replacement part for oil field exploration, drilling, and
    production equipment, and (vi) machinery and equipment
    purchased for lease; but excluding motor vehicles required
    to be registered under the Illinois Vehicle Code.
        (20) Photoprocessing machinery and equipment,
    including repair and replacement parts, both new and used,
    including that manufactured on special order, certified by
    the purchaser to be used primarily for photoprocessing,
    and including photoprocessing machinery and equipment
    purchased for lease.
        (21) Until July 1, 2023, coal and aggregate
    exploration, mining, off-highway hauling, processing,
    maintenance, and reclamation equipment, including
    replacement parts and equipment, and including equipment
    purchased for lease, but excluding motor vehicles required
    to be registered under the Illinois Vehicle Code. The
    changes made to this Section by Public Act 97-767 apply on
    and after July 1, 2003, but no claim for credit or refund
    is allowed on or after August 16, 2013 (the effective date
    of Public Act 98-456) for such taxes paid during the
    period beginning July 1, 2003 and ending on August 16,
    2013 (the effective date of Public Act 98-456).
        (22) Until June 30, 2013, fuel and petroleum products
    sold to or used by an air carrier, certified by the carrier
    to be used for consumption, shipment, or storage in the
    conduct of its business as an air common carrier, for a
    flight destined for or returning from a location or
    locations outside the United States without regard to
    previous or subsequent domestic stopovers.
        Beginning July 1, 2013, fuel and petroleum products
    sold to or used by an air carrier, certified by the carrier
    to be used for consumption, shipment, or storage in the
    conduct of its business as an air common carrier, for a
    flight that (i) is engaged in foreign trade or is engaged
    in trade between the United States and any of its
    possessions and (ii) transports at least one individual or
    package for hire from the city of origination to the city
    of final destination on the same aircraft, without regard
    to a change in the flight number of that aircraft.
        (23) A transaction in which the purchase order is
    received by a florist who is located outside Illinois, but
    who has a florist located in Illinois deliver the property
    to the purchaser or the purchaser's donee in Illinois.
        (24) Fuel consumed or used in the operation of ships,
    barges, or vessels that are used primarily in or for the
    transportation of property or the conveyance of persons
    for hire on rivers bordering on this State if the fuel is
    delivered by the seller to the purchaser's barge, ship, or
    vessel while it is afloat upon that bordering river.
        (25) Except as provided in item (25-5) of this
    Section, a motor vehicle sold in this State to a
    nonresident even though the motor vehicle is delivered to
    the nonresident in this State, if the motor vehicle is not
    to be titled in this State, and if a drive-away permit is
    issued to the motor vehicle as provided in Section 3-603
    of the Illinois Vehicle Code or if the nonresident
    purchaser has vehicle registration plates to transfer to
    the motor vehicle upon returning to his or her home state.
    The issuance of the drive-away permit or having the
    out-of-state registration plates to be transferred is
    prima facie evidence that the motor vehicle will not be
    titled in this State.
        (25-5) The exemption under item (25) does not apply if
    the state in which the motor vehicle will be titled does
    not allow a reciprocal exemption for a motor vehicle sold
    and delivered in that state to an Illinois resident but
    titled in Illinois. The tax collected under this Act on
    the sale of a motor vehicle in this State to a resident of
    another state that does not allow a reciprocal exemption
    shall be imposed at a rate equal to the state's rate of tax
    on taxable property in the state in which the purchaser is
    a resident, except that the tax shall not exceed the tax
    that would otherwise be imposed under this Act. At the
    time of the sale, the purchaser shall execute a statement,
    signed under penalty of perjury, of his or her intent to
    title the vehicle in the state in which the purchaser is a
    resident within 30 days after the sale and of the fact of
    the payment to the State of Illinois of tax in an amount
    equivalent to the state's rate of tax on taxable property
    in his or her state of residence and shall submit the
    statement to the appropriate tax collection agency in his
    or her state of residence. In addition, the retailer must
    retain a signed copy of the statement in his or her
    records. Nothing in this item shall be construed to
    require the removal of the vehicle from this state
    following the filing of an intent to title the vehicle in
    the purchaser's state of residence if the purchaser titles
    the vehicle in his or her state of residence within 30 days
    after the date of sale. The tax collected under this Act in
    accordance with this item (25-5) shall be proportionately
    distributed as if the tax were collected at the 6.25%
    general rate imposed under this Act.
        (25-7) Beginning on July 1, 2007, no tax is imposed
    under this Act on the sale of an aircraft, as defined in
    Section 3 of the Illinois Aeronautics Act, if all of the
    following conditions are met:
            (1) the aircraft leaves this State within 15 days
        after the later of either the issuance of the final
        billing for the sale of the aircraft, or the
        authorized approval for return to service, completion
        of the maintenance record entry, and completion of the
        test flight and ground test for inspection, as
        required by 14 C.F.R. 91.407;
            (2) the aircraft is not based or registered in
        this State after the sale of the aircraft; and
            (3) the seller retains in his or her books and
        records and provides to the Department a signed and
        dated certification from the purchaser, on a form
        prescribed by the Department, certifying that the
        requirements of this item (25-7) are met. The
        certificate must also include the name and address of
        the purchaser, the address of the location where the
        aircraft is to be titled or registered, the address of
        the primary physical location of the aircraft, and
        other information that the Department may reasonably
        require.
        For purposes of this item (25-7):
        "Based in this State" means hangared, stored, or
    otherwise used, excluding post-sale customizations as
    defined in this Section, for 10 or more days in each
    12-month period immediately following the date of the sale
    of the aircraft.
        "Registered in this State" means an aircraft
    registered with the Department of Transportation,
    Aeronautics Division, or titled or registered with the
    Federal Aviation Administration to an address located in
    this State.
        This paragraph (25-7) is exempt from the provisions of
    Section 2-70.
        (26) Semen used for artificial insemination of
    livestock for direct agricultural production.
        (27) Horses, or interests in horses, registered with
    and meeting the requirements of any of the Arabian Horse
    Club Registry of America, Appaloosa Horse Club, American
    Quarter Horse Association, United States Trotting
    Association, or Jockey Club, as appropriate, used for
    purposes of breeding or racing for prizes. This item (27)
    is exempt from the provisions of Section 2-70, and the
    exemption provided for under this item (27) applies for
    all periods beginning May 30, 1995, but no claim for
    credit or refund is allowed on or after January 1, 2008
    (the effective date of Public Act 95-88) for such taxes
    paid during the period beginning May 30, 2000 and ending
    on January 1, 2008 (the effective date of Public Act
    95-88).
        (28) Computers and communications equipment utilized
    for any hospital purpose and equipment used in the
    diagnosis, analysis, or treatment of hospital patients
    sold to a lessor who leases the equipment, under a lease of
    one year or longer executed or in effect at the time of the
    purchase, to a hospital that has been issued an active tax
    exemption identification number by the Department under
    Section 1g of this Act.
        (29) Personal property sold to a lessor who leases the
    property, under a lease of one year or longer executed or
    in effect at the time of the purchase, to a governmental
    body that has been issued an active tax exemption
    identification number by the Department under Section 1g
    of this Act.
        (30) Beginning with taxable years ending on or after
    December 31, 1995 and ending with taxable years ending on
    or before December 31, 2004, personal property that is
    donated for disaster relief to be used in a State or
    federally declared disaster area in Illinois or bordering
    Illinois by a manufacturer or retailer that is registered
    in this State to a corporation, society, association,
    foundation, or institution that has been issued a sales
    tax exemption identification number by the Department that
    assists victims of the disaster who reside within the
    declared disaster area.
        (31) Beginning with taxable years ending on or after
    December 31, 1995 and ending with taxable years ending on
    or before December 31, 2004, personal property that is
    used in the performance of infrastructure repairs in this
    State, including but not limited to municipal roads and
    streets, access roads, bridges, sidewalks, waste disposal
    systems, water and sewer line extensions, water
    distribution and purification facilities, storm water
    drainage and retention facilities, and sewage treatment
    facilities, resulting from a State or federally declared
    disaster in Illinois or bordering Illinois when such
    repairs are initiated on facilities located in the
    declared disaster area within 6 months after the disaster.
        (32) Beginning July 1, 1999, game or game birds sold
    at a "game breeding and hunting preserve area" as that
    term is used in the Wildlife Code. This paragraph is
    exempt from the provisions of Section 2-70.
        (33) A motor vehicle, as that term is defined in
    Section 1-146 of the Illinois Vehicle Code, that is
    donated to a corporation, limited liability company,
    society, association, foundation, or institution that is
    determined by the Department to be organized and operated
    exclusively for educational purposes. For purposes of this
    exemption, "a corporation, limited liability company,
    society, association, foundation, or institution organized
    and operated exclusively for educational purposes" means
    all tax-supported public schools, private schools that
    offer systematic instruction in useful branches of
    learning by methods common to public schools and that
    compare favorably in their scope and intensity with the
    course of study presented in tax-supported schools, and
    vocational or technical schools or institutes organized
    and operated exclusively to provide a course of study of
    not less than 6 weeks duration and designed to prepare
    individuals to follow a trade or to pursue a manual,
    technical, mechanical, industrial, business, or commercial
    occupation.
        (34) Beginning January 1, 2000, personal property,
    including food, purchased through fundraising events for
    the benefit of a public or private elementary or secondary
    school, a group of those schools, or one or more school
    districts if the events are sponsored by an entity
    recognized by the school district that consists primarily
    of volunteers and includes parents and teachers of the
    school children. This paragraph does not apply to
    fundraising events (i) for the benefit of private home
    instruction or (ii) for which the fundraising entity
    purchases the personal property sold at the events from
    another individual or entity that sold the property for
    the purpose of resale by the fundraising entity and that
    profits from the sale to the fundraising entity. This
    paragraph is exempt from the provisions of Section 2-70.
        (35) Beginning January 1, 2000 and through December
    31, 2001, new or used automatic vending machines that
    prepare and serve hot food and beverages, including
    coffee, soup, and other items, and replacement parts for
    these machines. Beginning January 1, 2002 and through June
    30, 2003, machines and parts for machines used in
    commercial, coin-operated amusement and vending business
    if a use or occupation tax is paid on the gross receipts
    derived from the use of the commercial, coin-operated
    amusement and vending machines. This paragraph is exempt
    from the provisions of Section 2-70.
        (35-5) Beginning August 23, 2001 and through June 30,
    2016, food for human consumption that is to be consumed
    off the premises where it is sold (other than alcoholic
    beverages, soft drinks, and food that has been prepared
    for immediate consumption) and prescription and
    nonprescription medicines, drugs, medical appliances, and
    insulin, urine testing materials, syringes, and needles
    used by diabetics, for human use, when purchased for use
    by a person receiving medical assistance under Article V
    of the Illinois Public Aid Code who resides in a licensed
    long-term care facility, as defined in the Nursing Home
    Care Act, or a licensed facility as defined in the ID/DD
    Community Care Act, the MC/DD Act, or the Specialized
    Mental Health Rehabilitation Act of 2013.
        (36) Beginning August 2, 2001, computers and
    communications equipment utilized for any hospital purpose
    and equipment used in the diagnosis, analysis, or
    treatment of hospital patients sold to a lessor who leases
    the equipment, under a lease of one year or longer
    executed or in effect at the time of the purchase, to a
    hospital that has been issued an active tax exemption
    identification number by the Department under Section 1g
    of this Act. This paragraph is exempt from the provisions
    of Section 2-70.
        (37) Beginning August 2, 2001, personal property sold
    to a lessor who leases the property, under a lease of one
    year or longer executed or in effect at the time of the
    purchase, to a governmental body that has been issued an
    active tax exemption identification number by the
    Department under Section 1g of this Act. This paragraph is
    exempt from the provisions of Section 2-70.
        (38) Beginning on January 1, 2002 and through June 30,
    2016, tangible personal property purchased from an
    Illinois retailer by a taxpayer engaged in centralized
    purchasing activities in Illinois who will, upon receipt
    of the property in Illinois, temporarily store the
    property in Illinois (i) for the purpose of subsequently
    transporting it outside this State for use or consumption
    thereafter solely outside this State or (ii) for the
    purpose of being processed, fabricated, or manufactured
    into, attached to, or incorporated into other tangible
    personal property to be transported outside this State and
    thereafter used or consumed solely outside this State. The
    Director of Revenue shall, pursuant to rules adopted in
    accordance with the Illinois Administrative Procedure Act,
    issue a permit to any taxpayer in good standing with the
    Department who is eligible for the exemption under this
    paragraph (38). The permit issued under this paragraph
    (38) shall authorize the holder, to the extent and in the
    manner specified in the rules adopted under this Act, to
    purchase tangible personal property from a retailer exempt
    from the taxes imposed by this Act. Taxpayers shall
    maintain all necessary books and records to substantiate
    the use and consumption of all such tangible personal
    property outside of the State of Illinois.
        (39) Beginning January 1, 2008, tangible personal
    property used in the construction or maintenance of a
    community water supply, as defined under Section 3.145 of
    the Environmental Protection Act, that is operated by a
    not-for-profit corporation that holds a valid water supply
    permit issued under Title IV of the Environmental
    Protection Act. This paragraph is exempt from the
    provisions of Section 2-70.
        (40) Beginning January 1, 2010 and continuing through
    December 31, 2024, materials, parts, equipment,
    components, and furnishings incorporated into or upon an
    aircraft as part of the modification, refurbishment,
    completion, replacement, repair, or maintenance of the
    aircraft. This exemption includes consumable supplies used
    in the modification, refurbishment, completion,
    replacement, repair, and maintenance of aircraft, but
    excludes any materials, parts, equipment, components, and
    consumable supplies used in the modification, replacement,
    repair, and maintenance of aircraft engines or power
    plants, whether such engines or power plants are installed
    or uninstalled upon any such aircraft. "Consumable
    supplies" include, but are not limited to, adhesive, tape,
    sandpaper, general purpose lubricants, cleaning solution,
    latex gloves, and protective films. This exemption applies
    only to the sale of qualifying tangible personal property
    to persons who modify, refurbish, complete, replace, or
    maintain an aircraft and who (i) hold an Air Agency
    Certificate and are empowered to operate an approved
    repair station by the Federal Aviation Administration,
    (ii) have a Class IV Rating, and (iii) conduct operations
    in accordance with Part 145 of the Federal Aviation
    Regulations. The exemption does not include aircraft
    operated by a commercial air carrier providing scheduled
    passenger air service pursuant to authority issued under
    Part 121 or Part 129 of the Federal Aviation Regulations.
    The changes made to this paragraph (40) by Public Act
    98-534 are declarative of existing law. It is the intent
    of the General Assembly that the exemption under this
    paragraph (40) applies continuously from January 1, 2010
    through December 31, 2024; however, no claim for credit or
    refund is allowed for taxes paid as a result of the
    disallowance of this exemption on or after January 1, 2015
    and prior to the effective date of this amendatory Act of
    the 101st General Assembly.
        (41) Tangible personal property sold to a
    public-facilities corporation, as described in Section
    11-65-10 of the Illinois Municipal Code, for purposes of
    constructing or furnishing a municipal convention hall,
    but only if the legal title to the municipal convention
    hall is transferred to the municipality without any
    further consideration by or on behalf of the municipality
    at the time of the completion of the municipal convention
    hall or upon the retirement or redemption of any bonds or
    other debt instruments issued by the public-facilities
    corporation in connection with the development of the
    municipal convention hall. This exemption includes
    existing public-facilities corporations as provided in
    Section 11-65-25 of the Illinois Municipal Code. This
    paragraph is exempt from the provisions of Section 2-70.
        (42) Beginning January 1, 2017 and through December
    31, 2026, menstrual pads, tampons, and menstrual cups.
        (43) Merchandise that is subject to the Rental
    Purchase Agreement Occupation and Use Tax. The purchaser
    must certify that the item is purchased to be rented
    subject to a rental purchase agreement, as defined in the
    Rental Purchase Agreement Act, and provide proof of
    registration under the Rental Purchase Agreement
    Occupation and Use Tax Act. This paragraph is exempt from
    the provisions of Section 2-70.
        (44) Qualified tangible personal property used in the
    construction or operation of a data center that has been
    granted a certificate of exemption by the Department of
    Commerce and Economic Opportunity, whether that tangible
    personal property is purchased by the owner, operator, or
    tenant of the data center or by a contractor or
    subcontractor of the owner, operator, or tenant. Data
    centers that would have qualified for a certificate of
    exemption prior to January 1, 2020 had this amendatory Act
    of the 101st General Assembly been in effect, may apply
    for and obtain an exemption for subsequent purchases of
    computer equipment or enabling software purchased or
    leased to upgrade, supplement, or replace computer
    equipment or enabling software purchased or leased in the
    original investment that would have qualified.
        The Department of Commerce and Economic Opportunity
    shall grant a certificate of exemption under this item
    (44) to qualified data centers as defined by Section
    605-1025 of the Department of Commerce and Economic
    Opportunity Law of the Civil Administrative Code of
    Illinois.
        For the purposes of this item (44):
            "Data center" means a building or a series of
        buildings rehabilitated or constructed to house
        working servers in one physical location or multiple
        sites within the State of Illinois.
            "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. The term "qualified tangible personal
        property" also includes building materials physically
        incorporated into in to the qualifying data center. To
        document the exemption allowed under this Section, the
        retailer must obtain from the purchaser a copy of the
        certificate of eligibility issued by the Department of
        Commerce and Economic Opportunity.
        This item (44) is exempt from the provisions of
    Section 2-70.
        (45) Beginning January 1, 2020 and through December
    31, 2020, sales of tangible personal property made by a
    marketplace seller over a marketplace for which tax is due
    under this Act but for which use tax has been collected and
    remitted to the Department by a marketplace facilitator
    under Section 2d of the Use Tax Act are exempt from tax
    under this Act. A marketplace seller claiming this
    exemption shall maintain books and records demonstrating
    that the use tax on such sales has been collected and
    remitted by a marketplace facilitator. Marketplace sellers
    that have properly remitted tax under this Act on such
    sales may file a claim for credit as provided in Section 6
    of this Act. No claim is allowed, however, for such taxes
    for which a credit or refund has been issued to the
    marketplace facilitator under the Use Tax Act, or for
    which the marketplace facilitator has filed a claim for
    credit or refund under the Use Tax Act.
        (46) Beginning July 1, 2022, breast pumps, breast pump
    collection and storage supplies, and breast pump kits.
    This item (46) is exempt from the provisions of Section
    2-70. As used in this item (46):
        "Breast pump" means an electrically controlled or
    manually controlled pump device designed or marketed to be
    used to express milk from a human breast during lactation,
    including the pump device and any battery, AC adapter, or
    other power supply unit that is used to power the pump
    device and is packaged and sold with the pump device at the
    time of sale.
        "Breast pump collection and storage supplies" means
    items of tangible personal property designed or marketed
    to be used in conjunction with a breast pump to collect
    milk expressed from a human breast and to store collected
    milk until it is ready for consumption.
        "Breast pump collection and storage supplies"
    includes, but is not limited to: breast shields and breast
    shield connectors; breast pump tubes and tubing adapters;
    breast pump valves and membranes; backflow protectors and
    backflow protector adaptors; bottles and bottle caps
    specific to the operation of the breast pump; and breast
    milk storage bags.
        "Breast pump collection and storage supplies" does not
    include: (1) bottles and bottle caps not specific to the
    operation of the breast pump; (2) breast pump travel bags
    and other similar carrying accessories, including ice
    packs, labels, and other similar products; (3) breast pump
    cleaning supplies; (4) nursing bras, bra pads, breast
    shells, and other similar products; and (5) creams,
    ointments, and other similar products that relieve
    breastfeeding-related symptoms or conditions of the
    breasts or nipples, unless sold as part of a breast pump
    kit that is pre-packaged by the breast pump manufacturer
    or distributor.
        "Breast pump kit" means a kit that: (1) contains no
    more than a breast pump, breast pump collection and
    storage supplies, a rechargeable battery for operating the
    breast pump, a breastmilk cooler, bottle stands, ice
    packs, and a breast pump carrying case; and (2) is
    pre-packaged as a breast pump kit by the breast pump
    manufacturer or distributor.
(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
8-27-21; revised 11-9-21.)
 
ARTICLE 75. USE AND OCCUPATION TAXES-EQUIPMENT

 
    Section 75-5. The Use Tax Act is amended by changing
Section 3-5 as follows:
 
    (35 ILCS 105/3-5)
    Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
    (1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
    (2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
    (3) Personal property purchased by a not-for-profit arts
or cultural organization that establishes, by proof required
by the Department by rule, that it has received an exemption
under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
    (4) Personal property purchased by a governmental body, by
a corporation, society, association, foundation, or
institution organized and operated exclusively for charitable,
religious, or educational purposes, or by a not-for-profit
corporation, society, association, foundation, institution, or
organization that has no compensated officers or employees and
that 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. On and after July 1,
1987, however, no entity otherwise eligible for this exemption
shall make tax-free purchases unless it has an active
exemption identification number issued by the Department.
    (5) Until July 1, 2003, a passenger car that is a
replacement vehicle to the extent that the purchase price of
the car is subject to the Replacement Vehicle Tax.
    (6) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new
and used, and including that manufactured on special order,
certified by the purchaser to be used primarily for graphic
arts production, and including machinery and equipment
purchased for lease. Equipment includes chemicals or chemicals
acting as catalysts but only if the chemicals or chemicals
acting as catalysts effect a direct and immediate change upon
a graphic arts product. Beginning on July 1, 2017, graphic
arts machinery and equipment is included in the manufacturing
and assembling machinery and equipment exemption under
paragraph (18).
    (7) Farm chemicals.
    (8) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
    (9) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
    (10) A motor vehicle that is used for automobile renting,
as defined in the Automobile Renting Occupation and Use Tax
Act.
    (11) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and
equipment under this item (11). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from a
motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price
of the tender is separately stated.
    Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
    Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (11) is exempt from the
provisions of Section 3-90.
    (12) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a flight
destined for or returning from a location or locations outside
the United States without regard to previous or subsequent
domestic stopovers.
    Beginning July 1, 2013, fuel and petroleum products sold
to or used by an air carrier, certified by the carrier to be
used for consumption, shipment, or storage in the conduct of
its business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports
at least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
    (13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages purchased at retail from a retailer, to the
extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the
employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with
respect to which the service charge is imposed.
    (14) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
pipe and tubular goods, including casing and drill strings,
(iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field
exploration, drilling, and production equipment, and (vi)
machinery and equipment purchased for lease; but excluding
motor vehicles required to be registered under the Illinois
Vehicle Code.
    (15) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including
that manufactured on special order, certified by the purchaser
to be used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
    (16) Until July 1, 2028 July 1, 2023, coal and aggregate
exploration, mining, off-highway hauling, processing,
maintenance, and reclamation equipment, including replacement
parts and equipment, and including equipment purchased for
lease, but excluding motor vehicles required to be registered
under the Illinois Vehicle Code. The changes made to this
Section by Public Act 97-767 apply on and after July 1, 2003,
but no claim for credit or refund is allowed on or after August
16, 2013 (the effective date of Public Act 98-456) for such
taxes paid during the period beginning July 1, 2003 and ending
on August 16, 2013 (the effective date of Public Act 98-456).
    (17) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by the
retailer, 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 the user, and not subject to sale or resale.
    (18) Manufacturing and assembling machinery and equipment
used primarily in the process of manufacturing or assembling
tangible personal property for wholesale or retail sale or
lease, whether that 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 that sale or lease is made apart from or as
an incident to the seller's engaging in the service occupation
of producing machines, tools, dies, jigs, patterns, gauges, or
other similar items of no commercial value on special order
for a particular purchaser. The exemption provided by this
paragraph (18) includes production related tangible personal
property, as defined in Section 3-50, purchased on or after
July 1, 2019. The exemption provided by this paragraph (18)
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. Beginning on July 1,
2017, the exemption provided by this paragraph (18) includes,
but is not limited to, graphic arts machinery and equipment,
as defined in paragraph (6) of this Section.
    (19) Personal property delivered to a purchaser or
purchaser's donee inside Illinois when the purchase order for
that personal property was received by a florist located
outside Illinois who has a florist located inside Illinois
deliver the personal property.
    (20) Semen used for artificial insemination of livestock
for direct agricultural production.
    (21) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (21) is exempt from the
provisions of Section 3-90, and the exemption provided for
under this item (21) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after
January 1, 2008 for such taxes paid during the period
beginning May 30, 2000 and ending on January 1, 2008.
    (22) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used
in any other non-exempt manner, the lessor shall be liable for
the tax imposed under this Act or the Service Use Tax Act, as
the case may be, based on the fair market value of the property
at the time the non-qualifying use occurs. No lessor shall
collect or attempt to collect an amount (however designated)
that purports to reimburse that lessor for the tax imposed by
this Act or the Service Use Tax Act, as the case may be, if the
tax has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the
Department.
    (23) Personal property purchased by a lessor who leases
the property, under a lease of one year or longer executed or
in effect at the time the lessor would otherwise be subject to
the tax imposed by this Act, to a governmental body that has
been issued an active sales tax exemption identification
number by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner that
does not qualify for this exemption or used in any other
non-exempt manner, the lessor shall be liable for the tax
imposed under this Act or the Service Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the non-qualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the
Department.
    (24) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
    (25) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities located
in the declared disaster area within 6 months after the
disaster.
    (26) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-90.
    (27) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the
Department to be organized and operated exclusively for
educational purposes. For purposes of this exemption, "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for educational purposes" means all tax-supported public
schools, private schools that offer systematic instruction in
useful branches of learning by methods common to public
schools and that compare favorably in their scope and
intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes
organized and operated exclusively to provide a course of
study of not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial
occupation.
    (28) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-90.
    (29) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and
other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003, machines
and parts for machines used in commercial, coin-operated
amusement and vending business if a use or occupation tax is
paid on the gross receipts derived from the use of the
commercial, coin-operated amusement and vending machines. This
paragraph is exempt from the provisions of Section 3-90.
    (30) Beginning January 1, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
    (31) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
purchased by a lessor who leases the equipment, under a lease
of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this
Act, to a hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used
in any other nonexempt manner, the lessor shall be liable for
the tax imposed under this Act or the Service Use Tax Act, as
the case may be, based on the fair market value of the property
at the time the nonqualifying use occurs. No lessor shall
collect or attempt to collect an amount (however designated)
that purports to reimburse that lessor for the tax imposed by
this Act or the Service Use Tax Act, as the case may be, if the
tax has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of
Section 3-90.
    (32) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property purchased by a lessor
who leases the property, under a lease of one year or longer
executed or in effect at the time the lessor would otherwise be
subject to the tax imposed by this Act, to a governmental body
that has been issued an active sales tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the property is leased
in a manner that does not qualify for this exemption or used in
any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the
case may be, based on the fair market value of the property at
the time the nonqualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of
Section 3-90.
    (33) On and after July 1, 2003 and through June 30, 2004,
the use in this State of motor vehicles of the second division
with a gross vehicle weight in excess of 8,000 pounds and that
are 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, the term "used for
commercial purposes" means the transportation of persons or
property in furtherance of any commercial or industrial
enterprise, whether for-hire or not.
    (34) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued
under Title IV of the Environmental Protection Act. This
paragraph is exempt from the provisions of Section 3-90.
    (35) Beginning January 1, 2010 and continuing through
December 31, 2024, materials, parts, equipment, components,
and furnishings incorporated into or upon an aircraft as part
of the modification, refurbishment, completion, replacement,
repair, or maintenance of the aircraft. This exemption
includes consumable supplies used in the modification,
refurbishment, completion, replacement, repair, and
maintenance of aircraft, but excludes any materials, parts,
equipment, components, and consumable supplies used in the
modification, replacement, repair, and maintenance of aircraft
engines or power plants, whether such engines or power plants
are installed or uninstalled upon any such aircraft.
"Consumable supplies" include, but are not limited to,
adhesive, tape, sandpaper, general purpose lubricants,
cleaning solution, latex gloves, and protective films. This
exemption applies only to the use of qualifying tangible
personal property by persons who modify, refurbish, complete,
repair, replace, or maintain aircraft and who (i) hold an Air
Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part
129 of the Federal Aviation Regulations. The changes made to
this paragraph (35) by Public Act 98-534 are declarative of
existing law. It is the intent of the General Assembly that the
exemption under this paragraph (35) applies continuously from
January 1, 2010 through December 31, 2024; however, no claim
for credit or refund is allowed for taxes paid as a result of
the disallowance of this exemption on or after January 1, 2015
and prior to the effective date of this amendatory Act of the
101st General Assembly.
    (36) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt
instruments issued by the public-facilities corporation in
connection with the development of the municipal convention
hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions
of Section 3-90.
    (37) Beginning January 1, 2017 and through December 31,
2026, menstrual pads, tampons, and menstrual cups.
    (38) Merchandise that is subject to the Rental Purchase
Agreement Occupation and Use Tax. The purchaser must certify
that the item is purchased to be rented subject to a rental
purchase agreement, as defined in the Rental Purchase
Agreement Act, and provide proof of registration under the
Rental Purchase Agreement Occupation and Use Tax Act. This
paragraph is exempt from the provisions of Section 3-90.
    (39) Tangible personal property purchased by a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-90.
    (40) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had Public Act 101-31 been in effect may apply for and
obtain an exemption for subsequent purchases of computer
equipment or enabling software purchased or leased to upgrade,
supplement, or replace computer equipment or enabling software
purchased or leased in the original investment that would have
qualified.
    The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (40) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    For the purposes of this item (40):
        "Data center" means a building or a series of
    buildings rehabilitated or constructed to house working
    servers in one physical location or multiple sites within
    the State of Illinois.
        "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. The term "qualified tangible personal
    property" also includes building materials physically
    incorporated in to the qualifying data center. To document
    the exemption allowed under this Section, the retailer
    must obtain from the purchaser a copy of the certificate
    of eligibility issued by the Department of Commerce and
    Economic Opportunity.
    This item (40) is exempt from the provisions of Section
3-90.
(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
6-17-21.)
 
    Section 75-10. The Service Use Tax Act is amended by
changing Section 3-5 as follows:
 
    (35 ILCS 110/3-5)
    Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
    (1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
    (2) Personal property purchased by a non-profit Illinois
county fair association for use in conducting, operating, or
promoting the county fair.
    (3) Personal property purchased by a not-for-profit arts
or cultural organization that establishes, by proof required
by the Department by rule, that it has received an exemption
under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
    (4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
    (5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new
and used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on
July 1, 2017, graphic arts machinery and equipment is included
in the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
    (6) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
    (7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and
equipment under this item (7). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from a
motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price
of the tender is separately stated.
    Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
    Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-75.
    (8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a flight
destined for or returning from a location or locations outside
the United States without regard to previous or subsequent
domestic stopovers.
    Beginning July 1, 2013, fuel and petroleum products sold
to or used by an air carrier, certified by the carrier to be
used for consumption, shipment, or storage in the conduct of
its business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports
at least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
    (9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages acquired as an incident to the purchase of a
service from a serviceman, to the extent that the proceeds of
the service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
    (10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
pipe and tubular goods, including casing and drill strings,
(iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field
exploration, drilling, and production equipment, and (vi)
machinery and equipment purchased for lease; but excluding
motor vehicles required to be registered under the Illinois
Vehicle Code.
    (11) Proceeds from the sale of photoprocessing machinery
and equipment, including repair and replacement parts, both
new and used, including that manufactured on special order,
certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and
equipment purchased for lease.
    (12) Until July 1, 2028 July 1, 2023, coal and aggregate
exploration, mining, off-highway hauling, processing,
maintenance, and reclamation equipment, including replacement
parts and equipment, and including equipment purchased for
lease, but excluding motor vehicles required to be registered
under the Illinois Vehicle Code. The changes made to this
Section by Public Act 97-767 apply on and after July 1, 2003,
but no claim for credit or refund is allowed on or after August
16, 2013 (the effective date of Public Act 98-456) for such
taxes paid during the period beginning July 1, 2003 and ending
on August 16, 2013 (the effective date of Public Act 98-456).
    (13) Semen used for artificial insemination of livestock
for direct agricultural production.
    (14) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (14) is exempt from the
provisions of Section 3-75, and the exemption provided for
under this item (14) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after
January 1, 2008 (the effective date of Public Act 95-88) for
such taxes paid during the period beginning May 30, 2000 and
ending on January 1, 2008 (the effective date of Public Act
95-88).
    (15) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used
in any other non-exempt manner, the lessor shall be liable for
the tax imposed under this Act or the Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the non-qualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not
been paid by the lessor. If a lessor improperly collects any
such amount from the lessee, the lessee shall have a legal
right to claim a refund of that amount from the lessor. If,
however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department.
    (16) Personal property purchased by a lessor who leases
the property, under a lease of one year or longer executed or
in effect at the time the lessor would otherwise be subject to
the tax imposed by this Act, to a governmental body that has
been issued an active tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation
Tax Act. If the property is leased in a manner that does not
qualify for this exemption or is used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid
by the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that
amount is not refunded to the lessee for any reason, the lessor
is liable to pay that amount to the Department.
    (17) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
    (18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities located
in the declared disaster area within 6 months after the
disaster.
    (19) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-75.
    (20) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the
Department to be organized and operated exclusively for
educational purposes. For purposes of this exemption, "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for educational purposes" means all tax-supported public
schools, private schools that offer systematic instruction in
useful branches of learning by methods common to public
schools and that compare favorably in their scope and
intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes
organized and operated exclusively to provide a course of
study of not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial
occupation.
    (21) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-75.
    (22) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and
other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003, machines
and parts for machines used in commercial, coin-operated
amusement and vending business if a use or occupation tax is
paid on the gross receipts derived from the use of the
commercial, coin-operated amusement and vending machines. This
paragraph is exempt from the provisions of Section 3-75.
    (23) Beginning August 23, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
    (24) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
purchased by a lessor who leases the equipment, under a lease
of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this
Act, to a hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used
in any other nonexempt manner, the lessor shall be liable for
the tax imposed under this Act or the Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the nonqualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not
been paid by the lessor. If a lessor improperly collects any
such amount from the lessee, the lessee shall have a legal
right to claim a refund of that amount from the lessor. If,
however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of
Section 3-75.
    (25) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property purchased by a lessor
who leases the property, under a lease of one year or longer
executed or in effect at the time the lessor would otherwise be
subject to the tax imposed by this Act, to a governmental body
that has been issued an active tax exemption identification
number by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner that
does not qualify for this exemption or is used in any other
nonexempt manner, the lessor shall be liable for the tax
imposed under this Act or the Use Tax Act, as the case may be,
based on the fair market value of the property at the time the
nonqualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid
by the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that
amount is not refunded to the lessee for any reason, the lessor
is liable to pay that amount to the Department. This paragraph
is exempt from the provisions of Section 3-75.
    (26) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued
under Title IV of the Environmental Protection Act. This
paragraph is exempt from the provisions of Section 3-75.
    (27) Beginning January 1, 2010 and continuing through
December 31, 2024, materials, parts, equipment, components,
and furnishings incorporated into or upon an aircraft as part
of the modification, refurbishment, completion, replacement,
repair, or maintenance of the aircraft. This exemption
includes consumable supplies used in the modification,
refurbishment, completion, replacement, repair, and
maintenance of aircraft, but excludes any materials, parts,
equipment, components, and consumable supplies used in the
modification, replacement, repair, and maintenance of aircraft
engines or power plants, whether such engines or power plants
are installed or uninstalled upon any such aircraft.
"Consumable supplies" include, but are not limited to,
adhesive, tape, sandpaper, general purpose lubricants,
cleaning solution, latex gloves, and protective films. This
exemption applies only to the use of qualifying tangible
personal property transferred incident to the modification,
refurbishment, completion, replacement, repair, or maintenance
of aircraft by persons who (i) hold an Air Agency Certificate
and are empowered to operate an approved repair station by the
Federal Aviation Administration, (ii) have a Class IV Rating,
and (iii) conduct operations in accordance with Part 145 of
the Federal Aviation Regulations. The exemption does not
include aircraft operated by a commercial air carrier
providing scheduled passenger air service pursuant to
authority issued under Part 121 or Part 129 of the Federal
Aviation Regulations. The changes made to this paragraph (27)
by Public Act 98-534 are declarative of existing law. It is the
intent of the General Assembly that the exemption under this
paragraph (27) applies continuously from January 1, 2010
through December 31, 2024; however, no claim for credit or
refund is allowed for taxes paid as a result of the
disallowance of this exemption on or after January 1, 2015 and
prior to the effective date of this amendatory Act of the 101st
General Assembly.
    (28) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt
instruments issued by the public-facilities corporation in
connection with the development of the municipal convention
hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions
of Section 3-75.
    (29) Beginning January 1, 2017 and through December 31,
2026, menstrual pads, tampons, and menstrual cups.
    (30) Tangible personal property transferred to a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-75.
    (31) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had this amendatory Act of the 101st General Assembly
been in effect, may apply for and obtain an exemption for
subsequent purchases of computer equipment or enabling
software purchased or leased to upgrade, supplement, or
replace computer equipment or enabling software purchased or
leased in the original investment that would have qualified.
    The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (31) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    For the purposes of this item (31):
        "Data center" means a building or a series of
    buildings rehabilitated or constructed to house working
    servers in one physical location or multiple sites within
    the State of Illinois.
        "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. The term "qualified tangible personal
    property" also includes building materials physically
    incorporated in to the qualifying data center. To document
    the exemption allowed under this Section, the retailer
    must obtain from the purchaser a copy of the certificate
    of eligibility issued by the Department of Commerce and
    Economic Opportunity.
    This item (31) is exempt from the provisions of Section
3-75.
(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
    Section 75-15. The Service Occupation Tax Act is amended
by changing Section 3-5 as follows:
 
    (35 ILCS 115/3-5)
    Sec. 3-5. Exemptions. The following tangible personal
property is exempt from the tax imposed by this Act:
    (1) Personal property sold by a corporation, society,
association, foundation, institution, or organization, other
than a limited liability company, that is organized and
operated as a not-for-profit service enterprise for the
benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the purpose
of resale by the enterprise.
    (2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
    (3) Personal property purchased by any not-for-profit arts
or cultural organization that establishes, by proof required
by the Department by rule, that it has received an exemption
under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
    (4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
    (5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new
and used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on
July 1, 2017, graphic arts machinery and equipment is included
in the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
    (6) Personal property sold by a teacher-sponsored student
organization affiliated with an elementary or secondary school
located in Illinois.
    (7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and
equipment under this item (7). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from a
motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price
of the tender is separately stated.
    Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
    Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-55.
    (8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a flight
destined for or returning from a location or locations outside
the United States without regard to previous or subsequent
domestic stopovers.
    Beginning July 1, 2013, fuel and petroleum products sold
to or used by an air carrier, certified by the carrier to be
used for consumption, shipment, or storage in the conduct of
its business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports
at least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
    (9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
    (10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
pipe and tubular goods, including casing and drill strings,
(iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field
exploration, drilling, and production equipment, and (vi)
machinery and equipment purchased for lease; but excluding
motor vehicles required to be registered under the Illinois
Vehicle Code.
    (11) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including
that manufactured on special order, certified by the purchaser
to be used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
    (12) Until July 1, 2028 July 1, 2023, coal and aggregate
exploration, mining, off-highway hauling, processing,
maintenance, and reclamation equipment, including replacement
parts and equipment, and including equipment purchased for
lease, but excluding motor vehicles required to be registered
under the Illinois Vehicle Code. The changes made to this
Section by Public Act 97-767 apply on and after July 1, 2003,
but no claim for credit or refund is allowed on or after August
16, 2013 (the effective date of Public Act 98-456) for such
taxes paid during the period beginning July 1, 2003 and ending
on August 16, 2013 (the effective date of Public Act 98-456).
    (13) Beginning January 1, 1992 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks and food that has been prepared for immediate
consumption) and prescription and non-prescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
    (14) Semen used for artificial insemination of livestock
for direct agricultural production.
    (15) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (15) is exempt from the
provisions of Section 3-55, and the exemption provided for
under this item (15) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after
January 1, 2008 (the effective date of Public Act 95-88) for
such taxes paid during the period beginning May 30, 2000 and
ending on January 1, 2008 (the effective date of Public Act
95-88).
    (16) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act.
    (17) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body that
has been issued an active tax exemption identification number
by the Department under Section 1g of the Retailers'
Occupation Tax Act.
    (18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
    (19) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities located
in the declared disaster area within 6 months after the
disaster.
    (20) Beginning July 1, 1999, game or game birds sold at a
"game breeding and hunting preserve area" as that term is used
in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-55.
    (21) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the
Department to be organized and operated exclusively for
educational purposes. For purposes of this exemption, "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for educational purposes" means all tax-supported public
schools, private schools that offer systematic instruction in
useful branches of learning by methods common to public
schools and that compare favorably in their scope and
intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes
organized and operated exclusively to provide a course of
study of not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial
occupation.
    (22) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-55.
    (23) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and
other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003, machines
and parts for machines used in commercial, coin-operated
amusement and vending business if a use or occupation tax is
paid on the gross receipts derived from the use of the
commercial, coin-operated amusement and vending machines. This
paragraph is exempt from the provisions of Section 3-55.
    (24) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients sold to
a lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. This paragraph is exempt
from the provisions of Section 3-55.
    (25) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property sold to a lessor who
leases the property, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
governmental body that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. This paragraph is exempt
from the provisions of Section 3-55.
    (26) Beginning on January 1, 2002 and through June 30,
2016, tangible personal property purchased from an Illinois
retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property
in Illinois, temporarily store the property in Illinois (i)
for the purpose of subsequently transporting it outside this
State for use or consumption thereafter solely outside this
State or (ii) for the purpose of being processed, fabricated,
or manufactured into, attached to, or incorporated into other
tangible personal property to be transported outside this
State and thereafter used or consumed solely outside this
State. The Director of Revenue shall, pursuant to rules
adopted in accordance with the Illinois Administrative
Procedure Act, issue a permit to any taxpayer in good standing
with the Department who is eligible for the exemption under
this paragraph (26). The permit issued under this paragraph
(26) shall authorize the holder, to the extent and in the
manner specified in the rules adopted under this Act, to
purchase tangible personal property from a retailer exempt
from the taxes imposed by this Act. Taxpayers shall maintain
all necessary books and records to substantiate the use and
consumption of all such tangible personal property outside of
the State of Illinois.
    (27) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued
under Title IV of the Environmental Protection Act. This
paragraph is exempt from the provisions of Section 3-55.
    (28) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt
instruments issued by the public-facilities corporation in
connection with the development of the municipal convention
hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions
of Section 3-55.
    (29) Beginning January 1, 2010 and continuing through
December 31, 2024, materials, parts, equipment, components,
and furnishings incorporated into or upon an aircraft as part
of the modification, refurbishment, completion, replacement,
repair, or maintenance of the aircraft. This exemption
includes consumable supplies used in the modification,
refurbishment, completion, replacement, repair, and
maintenance of aircraft, but excludes any materials, parts,
equipment, components, and consumable supplies used in the
modification, replacement, repair, and maintenance of aircraft
engines or power plants, whether such engines or power plants
are installed or uninstalled upon any such aircraft.
"Consumable supplies" include, but are not limited to,
adhesive, tape, sandpaper, general purpose lubricants,
cleaning solution, latex gloves, and protective films. This
exemption applies only to the transfer of qualifying tangible
personal property incident to the modification, refurbishment,
completion, replacement, repair, or maintenance of an aircraft
by persons who (i) hold an Air Agency Certificate and are
empowered to operate an approved repair station by the Federal
Aviation Administration, (ii) have a Class IV Rating, and
(iii) conduct operations in accordance with Part 145 of the
Federal Aviation Regulations. The exemption does not include
aircraft operated by a commercial air carrier providing
scheduled passenger air service pursuant to authority issued
under Part 121 or Part 129 of the Federal Aviation
Regulations. The changes made to this paragraph (29) by Public
Act 98-534 are declarative of existing law. It is the intent of
the General Assembly that the exemption under this paragraph
(29) applies continuously from January 1, 2010 through
December 31, 2024; however, no claim for credit or refund is
allowed for taxes paid as a result of the disallowance of this
exemption on or after January 1, 2015 and prior to the
effective date of this amendatory Act of the 101st General
Assembly.
    (30) Beginning January 1, 2017 and through December 31,
2026, menstrual pads, tampons, and menstrual cups.
    (31) Tangible personal property transferred to a purchaser
who is exempt from tax by operation of federal law. This
paragraph is exempt from the provisions of Section 3-55.
    (32) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had this amendatory Act of the 101st General Assembly
been in effect, may apply for and obtain an exemption for
subsequent purchases of computer equipment or enabling
software purchased or leased to upgrade, supplement, or
replace computer equipment or enabling software purchased or
leased in the original investment that would have qualified.
    The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (32) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    For the purposes of this item (32):
        "Data center" means a building or a series of
    buildings rehabilitated or constructed to house working
    servers in one physical location or multiple sites within
    the State of Illinois.
        "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. The term "qualified tangible personal
    property" also includes building materials physically
    incorporated in to the qualifying data center. To document
    the exemption allowed under this Section, the retailer
    must obtain from the purchaser a copy of the certificate
    of eligibility issued by the Department of Commerce and
    Economic Opportunity.
    This item (32) is exempt from the provisions of Section
3-55.
(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
    Section 75-20. The Retailers' Occupation Tax Act is
amended by changing Section 2-5 as follows:
 
    (35 ILCS 120/2-5)
    Sec. 2-5. Exemptions. Gross receipts from proceeds from
the sale of the following tangible personal property are
exempt from the tax imposed by this Act:
        (1) Farm chemicals.
        (2) Farm machinery and equipment, both new and used,
    including that manufactured on special order, certified by
    the purchaser to be used primarily for production
    agriculture or State or federal agricultural programs,
    including individual replacement parts for the machinery
    and equipment, including machinery and equipment purchased
    for lease, and including implements of husbandry defined
    in Section 1-130 of the Illinois Vehicle Code, farm
    machinery and agricultural chemical and fertilizer
    spreaders, and nurse wagons required to be registered
    under Section 3-809 of the Illinois Vehicle Code, but
    excluding other motor vehicles required to be registered
    under the Illinois Vehicle Code. Horticultural polyhouses
    or hoop houses used for propagating, growing, or
    overwintering plants shall be considered farm machinery
    and equipment under this item (2). Agricultural chemical
    tender tanks and dry boxes shall include units sold
    separately from a motor vehicle required to be licensed
    and units sold mounted on a motor vehicle required to be
    licensed, if the selling price of the tender is separately
    stated.
        Farm machinery and equipment shall include precision
    farming equipment that is installed or purchased to be
    installed on farm machinery and equipment including, but
    not limited to, tractors, harvesters, sprayers, planters,
    seeders, or spreaders. Precision farming equipment
    includes, but is not limited to, soil testing sensors,
    computers, monitors, software, global positioning and
    mapping systems, and other such equipment.
        Farm machinery and equipment also includes computers,
    sensors, software, and related equipment used primarily in
    the computer-assisted operation of production agriculture
    facilities, equipment, and activities such as, but not
    limited to, the collection, monitoring, and correlation of
    animal and crop data for the purpose of formulating animal
    diets and agricultural chemicals. This item (2) is exempt
    from the provisions of Section 2-70.
        (3) Until July 1, 2003, distillation machinery and
    equipment, sold as a unit or kit, assembled or installed
    by the retailer, 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 the user, and not subject to sale
    or resale.
        (4) Until July 1, 2003 and beginning again September
    1, 2004 through August 30, 2014, graphic arts machinery
    and equipment, including repair and replacement parts,
    both new and used, and including that manufactured on
    special order or purchased for lease, certified by the
    purchaser to be used primarily for graphic arts
    production. Equipment includes chemicals or chemicals
    acting as catalysts but only if the chemicals or chemicals
    acting as catalysts effect a direct and immediate change
    upon a graphic arts product. Beginning on July 1, 2017,
    graphic arts machinery and equipment is included in the
    manufacturing and assembling machinery and equipment
    exemption under paragraph (14).
        (5) A motor vehicle that is used for automobile
    renting, as defined in the Automobile Renting Occupation
    and Use Tax Act. This paragraph is exempt from the
    provisions of Section 2-70.
        (6) Personal property sold by a teacher-sponsored
    student organization affiliated with an elementary or
    secondary school located in Illinois.
        (7) Until July 1, 2003, proceeds of that portion of
    the selling price of a passenger car the sale of which is
    subject to the Replacement Vehicle Tax.
        (8) Personal property sold to an Illinois county fair
    association for use in conducting, operating, or promoting
    the county fair.
        (9) Personal property sold to a not-for-profit arts or
    cultural organization that establishes, by proof required
    by the Department by rule, that it has received an
    exemption under Section 501(c)(3) of the Internal Revenue
    Code and that is organized and operated primarily for the
    presentation or support of arts or cultural programming,
    activities, or services. These organizations include, but
    are not limited to, music and dramatic arts organizations
    such as symphony orchestras and theatrical groups, arts
    and cultural service organizations, local arts councils,
    visual arts organizations, and media arts organizations.
    On and after July 1, 2001 (the effective date of Public Act
    92-35), however, an entity otherwise eligible for this
    exemption shall not make tax-free purchases unless it has
    an active identification number issued by the Department.
        (10) Personal property sold by a corporation, society,
    association, foundation, institution, or organization,
    other than a limited liability company, that is organized
    and operated as a not-for-profit service enterprise for
    the benefit of persons 65 years of age or older if the
    personal property was not purchased by the enterprise for
    the purpose of resale by the enterprise.
        (11) Personal property sold to a governmental body, to
    a corporation, society, association, foundation, or
    institution organized and operated exclusively for
    charitable, religious, or educational purposes, or to a
    not-for-profit corporation, society, association,
    foundation, institution, or organization that has no
    compensated officers or employees and that 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. On and after July 1,
    1987, however, no entity otherwise eligible for this
    exemption shall make tax-free purchases unless it has an
    active identification number issued by the Department.
        (12) (Blank).
        (12-5) On and after July 1, 2003 and through June 30,
    2004, motor vehicles of the second division with a gross
    vehicle weight in excess of 8,000 pounds that are 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.
        (13) Proceeds from sales to owners, lessors, or
    shippers of tangible personal property that 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.
        (14) Machinery and equipment that will be used by the
    purchaser, or a lessee of the purchaser, primarily in the
    process of manufacturing or assembling tangible personal
    property for wholesale or retail sale or lease, whether
    the 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 the sale or lease is made apart from or
    as an incident to the seller's engaging in the service
    occupation of producing machines, tools, dies, jigs,
    patterns, gauges, or other similar items of no commercial
    value on special order for a particular purchaser. The
    exemption provided by this paragraph (14) 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. Beginning on July 1, 2017, the exemption
    provided by this paragraph (14) includes, but is not
    limited to, graphic arts machinery and equipment, as
    defined in paragraph (4) of this Section.
        (15) Proceeds of mandatory service charges separately
    stated on customers' bills for purchase and consumption of
    food and beverages, to the extent that the proceeds of the
    service charge are in fact turned over as tips or as a
    substitute for tips to the employees who participate
    directly in preparing, serving, hosting or cleaning up the
    food or beverage function with respect to which the
    service charge is imposed.
        (16) Tangible personal property sold to a purchaser if
    the purchaser is exempt from use tax by operation of
    federal law. This paragraph is exempt from the provisions
    of Section 2-70.
        (17) Tangible personal property sold to a common
    carrier by rail or motor that receives the physical
    possession of the property in Illinois and that transports
    the property, or shares with another common carrier in the
    transportation of the property, out of Illinois on a
    standard uniform bill of lading showing the seller of the
    property as the shipper or consignor of the property to a
    destination outside Illinois, for use outside Illinois.
        (18) Legal tender, currency, medallions, or gold or
    silver coinage issued by the State of Illinois, the
    government of the United States of America, or the
    government of any foreign country, and bullion.
        (19) Until July 1, 2003, oil field exploration,
    drilling, and production equipment, including (i) rigs and
    parts of rigs, rotary rigs, cable tool rigs, and workover
    rigs, (ii) pipe and tubular goods, including casing and
    drill strings, (iii) pumps and pump-jack units, (iv)
    storage tanks and flow lines, (v) any individual
    replacement part for oil field exploration, drilling, and
    production equipment, and (vi) machinery and equipment
    purchased for lease; but excluding motor vehicles required
    to be registered under the Illinois Vehicle Code.
        (20) Photoprocessing machinery and equipment,
    including repair and replacement parts, both new and used,
    including that manufactured on special order, certified by
    the purchaser to be used primarily for photoprocessing,
    and including photoprocessing machinery and equipment
    purchased for lease.
        (21) Until July 1, 2028 July 1, 2023, coal and
    aggregate exploration, mining, off-highway hauling,
    processing, maintenance, and reclamation equipment,
    including replacement parts and equipment, and including
    equipment purchased for lease, but excluding motor
    vehicles required to be registered under the Illinois
    Vehicle Code. The changes made to this Section by Public
    Act 97-767 apply on and after July 1, 2003, but no claim
    for credit or refund is allowed on or after August 16, 2013
    (the effective date of Public Act 98-456) for such taxes
    paid during the period beginning July 1, 2003 and ending
    on August 16, 2013 (the effective date of Public Act
    98-456).
        (22) Until June 30, 2013, fuel and petroleum products
    sold to or used by an air carrier, certified by the carrier
    to be used for consumption, shipment, or storage in the
    conduct of its business as an air common carrier, for a
    flight destined for or returning from a location or
    locations outside the United States without regard to
    previous or subsequent domestic stopovers.
        Beginning July 1, 2013, fuel and petroleum products
    sold to or used by an air carrier, certified by the carrier
    to be used for consumption, shipment, or storage in the
    conduct of its business as an air common carrier, for a
    flight that (i) is engaged in foreign trade or is engaged
    in trade between the United States and any of its
    possessions and (ii) transports at least one individual or
    package for hire from the city of origination to the city
    of final destination on the same aircraft, without regard
    to a change in the flight number of that aircraft.
        (23) A transaction in which the purchase order is
    received by a florist who is located outside Illinois, but
    who has a florist located in Illinois deliver the property
    to the purchaser or the purchaser's donee in Illinois.
        (24) Fuel consumed or used in the operation of ships,
    barges, or vessels that are used primarily in or for the
    transportation of property or the conveyance of persons
    for hire on rivers bordering on this State if the fuel is
    delivered by the seller to the purchaser's barge, ship, or
    vessel while it is afloat upon that bordering river.
        (25) Except as provided in item (25-5) of this
    Section, a motor vehicle sold in this State to a
    nonresident even though the motor vehicle is delivered to
    the nonresident in this State, if the motor vehicle is not
    to be titled in this State, and if a drive-away permit is
    issued to the motor vehicle as provided in Section 3-603
    of the Illinois Vehicle Code or if the nonresident
    purchaser has vehicle registration plates to transfer to
    the motor vehicle upon returning to his or her home state.
    The issuance of the drive-away permit or having the
    out-of-state registration plates to be transferred is
    prima facie evidence that the motor vehicle will not be
    titled in this State.
        (25-5) The exemption under item (25) does not apply if
    the state in which the motor vehicle will be titled does
    not allow a reciprocal exemption for a motor vehicle sold
    and delivered in that state to an Illinois resident but
    titled in Illinois. The tax collected under this Act on
    the sale of a motor vehicle in this State to a resident of
    another state that does not allow a reciprocal exemption
    shall be imposed at a rate equal to the state's rate of tax
    on taxable property in the state in which the purchaser is
    a resident, except that the tax shall not exceed the tax
    that would otherwise be imposed under this Act. At the
    time of the sale, the purchaser shall execute a statement,
    signed under penalty of perjury, of his or her intent to
    title the vehicle in the state in which the purchaser is a
    resident within 30 days after the sale and of the fact of
    the payment to the State of Illinois of tax in an amount
    equivalent to the state's rate of tax on taxable property
    in his or her state of residence and shall submit the
    statement to the appropriate tax collection agency in his
    or her state of residence. In addition, the retailer must
    retain a signed copy of the statement in his or her
    records. Nothing in this item shall be construed to
    require the removal of the vehicle from this state
    following the filing of an intent to title the vehicle in
    the purchaser's state of residence if the purchaser titles
    the vehicle in his or her state of residence within 30 days
    after the date of sale. The tax collected under this Act in
    accordance with this item (25-5) shall be proportionately
    distributed as if the tax were collected at the 6.25%
    general rate imposed under this Act.
        (25-7) Beginning on July 1, 2007, no tax is imposed
    under this Act on the sale of an aircraft, as defined in
    Section 3 of the Illinois Aeronautics Act, if all of the
    following conditions are met:
            (1) the aircraft leaves this State within 15 days
        after the later of either the issuance of the final
        billing for the sale of the aircraft, or the
        authorized approval for return to service, completion
        of the maintenance record entry, and completion of the
        test flight and ground test for inspection, as
        required by 14 C.F.R. 91.407;
            (2) the aircraft is not based or registered in
        this State after the sale of the aircraft; and
            (3) the seller retains in his or her books and
        records and provides to the Department a signed and
        dated certification from the purchaser, on a form
        prescribed by the Department, certifying that the
        requirements of this item (25-7) are met. The
        certificate must also include the name and address of
        the purchaser, the address of the location where the
        aircraft is to be titled or registered, the address of
        the primary physical location of the aircraft, and
        other information that the Department may reasonably
        require.
        For purposes of this item (25-7):
        "Based in this State" means hangared, stored, or
    otherwise used, excluding post-sale customizations as
    defined in this Section, for 10 or more days in each
    12-month period immediately following the date of the sale
    of the aircraft.
        "Registered in this State" means an aircraft
    registered with the Department of Transportation,
    Aeronautics Division, or titled or registered with the
    Federal Aviation Administration to an address located in
    this State.
        This paragraph (25-7) is exempt from the provisions of
    Section 2-70.
        (26) Semen used for artificial insemination of
    livestock for direct agricultural production.
        (27) Horses, or interests in horses, registered with
    and meeting the requirements of any of the Arabian Horse
    Club Registry of America, Appaloosa Horse Club, American
    Quarter Horse Association, United States Trotting
    Association, or Jockey Club, as appropriate, used for
    purposes of breeding or racing for prizes. This item (27)
    is exempt from the provisions of Section 2-70, and the
    exemption provided for under this item (27) applies for
    all periods beginning May 30, 1995, but no claim for
    credit or refund is allowed on or after January 1, 2008
    (the effective date of Public Act 95-88) for such taxes
    paid during the period beginning May 30, 2000 and ending
    on January 1, 2008 (the effective date of Public Act
    95-88).
        (28) Computers and communications equipment utilized
    for any hospital purpose and equipment used in the
    diagnosis, analysis, or treatment of hospital patients
    sold to a lessor who leases the equipment, under a lease of
    one year or longer executed or in effect at the time of the
    purchase, to a hospital that has been issued an active tax
    exemption identification number by the Department under
    Section 1g of this Act.
        (29) Personal property sold to a lessor who leases the
    property, under a lease of one year or longer executed or
    in effect at the time of the purchase, to a governmental
    body that has been issued an active tax exemption
    identification number by the Department under Section 1g
    of this Act.
        (30) Beginning with taxable years ending on or after
    December 31, 1995 and ending with taxable years ending on
    or before December 31, 2004, personal property that is
    donated for disaster relief to be used in a State or
    federally declared disaster area in Illinois or bordering
    Illinois by a manufacturer or retailer that is registered
    in this State to a corporation, society, association,
    foundation, or institution that has been issued a sales
    tax exemption identification number by the Department that
    assists victims of the disaster who reside within the
    declared disaster area.
        (31) Beginning with taxable years ending on or after
    December 31, 1995 and ending with taxable years ending on
    or before December 31, 2004, personal property that is
    used in the performance of infrastructure repairs in this
    State, including but not limited to municipal roads and
    streets, access roads, bridges, sidewalks, waste disposal
    systems, water and sewer line extensions, water
    distribution and purification facilities, storm water
    drainage and retention facilities, and sewage treatment
    facilities, resulting from a State or federally declared
    disaster in Illinois or bordering Illinois when such
    repairs are initiated on facilities located in the
    declared disaster area within 6 months after the disaster.
        (32) Beginning July 1, 1999, game or game birds sold
    at a "game breeding and hunting preserve area" as that
    term is used in the Wildlife Code. This paragraph is
    exempt from the provisions of Section 2-70.
        (33) A motor vehicle, as that term is defined in
    Section 1-146 of the Illinois Vehicle Code, that is
    donated to a corporation, limited liability company,
    society, association, foundation, or institution that is
    determined by the Department to be organized and operated
    exclusively for educational purposes. For purposes of this
    exemption, "a corporation, limited liability company,
    society, association, foundation, or institution organized
    and operated exclusively for educational purposes" means
    all tax-supported public schools, private schools that
    offer systematic instruction in useful branches of
    learning by methods common to public schools and that
    compare favorably in their scope and intensity with the
    course of study presented in tax-supported schools, and
    vocational or technical schools or institutes organized
    and operated exclusively to provide a course of study of
    not less than 6 weeks duration and designed to prepare
    individuals to follow a trade or to pursue a manual,
    technical, mechanical, industrial, business, or commercial
    occupation.
        (34) Beginning January 1, 2000, personal property,
    including food, purchased through fundraising events for
    the benefit of a public or private elementary or secondary
    school, a group of those schools, or one or more school
    districts if the events are sponsored by an entity
    recognized by the school district that consists primarily
    of volunteers and includes parents and teachers of the
    school children. This paragraph does not apply to
    fundraising events (i) for the benefit of private home
    instruction or (ii) for which the fundraising entity
    purchases the personal property sold at the events from
    another individual or entity that sold the property for
    the purpose of resale by the fundraising entity and that
    profits from the sale to the fundraising entity. This
    paragraph is exempt from the provisions of Section 2-70.
        (35) Beginning January 1, 2000 and through December
    31, 2001, new or used automatic vending machines that
    prepare and serve hot food and beverages, including
    coffee, soup, and other items, and replacement parts for
    these machines. Beginning January 1, 2002 and through June
    30, 2003, machines and parts for machines used in
    commercial, coin-operated amusement and vending business
    if a use or occupation tax is paid on the gross receipts
    derived from the use of the commercial, coin-operated
    amusement and vending machines. This paragraph is exempt
    from the provisions of Section 2-70.
        (35-5) Beginning August 23, 2001 and through June 30,
    2016, food for human consumption that is to be consumed
    off the premises where it is sold (other than alcoholic
    beverages, soft drinks, and food that has been prepared
    for immediate consumption) and prescription and
    nonprescription medicines, drugs, medical appliances, and
    insulin, urine testing materials, syringes, and needles
    used by diabetics, for human use, when purchased for use
    by a person receiving medical assistance under Article V
    of the Illinois Public Aid Code who resides in a licensed
    long-term care facility, as defined in the Nursing Home
    Care Act, or a licensed facility as defined in the ID/DD
    Community Care Act, the MC/DD Act, or the Specialized
    Mental Health Rehabilitation Act of 2013.
        (36) Beginning August 2, 2001, computers and
    communications equipment utilized for any hospital purpose
    and equipment used in the diagnosis, analysis, or
    treatment of hospital patients sold to a lessor who leases
    the equipment, under a lease of one year or longer
    executed or in effect at the time of the purchase, to a
    hospital that has been issued an active tax exemption
    identification number by the Department under Section 1g
    of this Act. This paragraph is exempt from the provisions
    of Section 2-70.
        (37) Beginning August 2, 2001, personal property sold
    to a lessor who leases the property, under a lease of one
    year or longer executed or in effect at the time of the
    purchase, to a governmental body that has been issued an
    active tax exemption identification number by the
    Department under Section 1g of this Act. This paragraph is
    exempt from the provisions of Section 2-70.
        (38) Beginning on January 1, 2002 and through June 30,
    2016, tangible personal property purchased from an
    Illinois retailer by a taxpayer engaged in centralized
    purchasing activities in Illinois who will, upon receipt
    of the property in Illinois, temporarily store the
    property in Illinois (i) for the purpose of subsequently
    transporting it outside this State for use or consumption
    thereafter solely outside this State or (ii) for the
    purpose of being processed, fabricated, or manufactured
    into, attached to, or incorporated into other tangible
    personal property to be transported outside this State and
    thereafter used or consumed solely outside this State. The
    Director of Revenue shall, pursuant to rules adopted in
    accordance with the Illinois Administrative Procedure Act,
    issue a permit to any taxpayer in good standing with the
    Department who is eligible for the exemption under this
    paragraph (38). The permit issued under this paragraph
    (38) shall authorize the holder, to the extent and in the
    manner specified in the rules adopted under this Act, to
    purchase tangible personal property from a retailer exempt
    from the taxes imposed by this Act. Taxpayers shall
    maintain all necessary books and records to substantiate
    the use and consumption of all such tangible personal
    property outside of the State of Illinois.
        (39) Beginning January 1, 2008, tangible personal
    property used in the construction or maintenance of a
    community water supply, as defined under Section 3.145 of
    the Environmental Protection Act, that is operated by a
    not-for-profit corporation that holds a valid water supply
    permit issued under Title IV of the Environmental
    Protection Act. This paragraph is exempt from the
    provisions of Section 2-70.
        (40) Beginning January 1, 2010 and continuing through
    December 31, 2024, materials, parts, equipment,
    components, and furnishings incorporated into or upon an
    aircraft as part of the modification, refurbishment,
    completion, replacement, repair, or maintenance of the
    aircraft. This exemption includes consumable supplies used
    in the modification, refurbishment, completion,
    replacement, repair, and maintenance of aircraft, but
    excludes any materials, parts, equipment, components, and
    consumable supplies used in the modification, replacement,
    repair, and maintenance of aircraft engines or power
    plants, whether such engines or power plants are installed
    or uninstalled upon any such aircraft. "Consumable
    supplies" include, but are not limited to, adhesive, tape,
    sandpaper, general purpose lubricants, cleaning solution,
    latex gloves, and protective films. This exemption applies
    only to the sale of qualifying tangible personal property
    to persons who modify, refurbish, complete, replace, or
    maintain an aircraft and who (i) hold an Air Agency
    Certificate and are empowered to operate an approved
    repair station by the Federal Aviation Administration,
    (ii) have a Class IV Rating, and (iii) conduct operations
    in accordance with Part 145 of the Federal Aviation
    Regulations. The exemption does not include aircraft
    operated by a commercial air carrier providing scheduled
    passenger air service pursuant to authority issued under
    Part 121 or Part 129 of the Federal Aviation Regulations.
    The changes made to this paragraph (40) by Public Act
    98-534 are declarative of existing law. It is the intent
    of the General Assembly that the exemption under this
    paragraph (40) applies continuously from January 1, 2010
    through December 31, 2024; however, no claim for credit or
    refund is allowed for taxes paid as a result of the
    disallowance of this exemption on or after January 1, 2015
    and prior to the effective date of this amendatory Act of
    the 101st General Assembly.
        (41) Tangible personal property sold to a
    public-facilities corporation, as described in Section
    11-65-10 of the Illinois Municipal Code, for purposes of
    constructing or furnishing a municipal convention hall,
    but only if the legal title to the municipal convention
    hall is transferred to the municipality without any
    further consideration by or on behalf of the municipality
    at the time of the completion of the municipal convention
    hall or upon the retirement or redemption of any bonds or
    other debt instruments issued by the public-facilities
    corporation in connection with the development of the
    municipal convention hall. This exemption includes
    existing public-facilities corporations as provided in
    Section 11-65-25 of the Illinois Municipal Code. This
    paragraph is exempt from the provisions of Section 2-70.
        (42) Beginning January 1, 2017 and through December
    31, 2026, menstrual pads, tampons, and menstrual cups.
        (43) Merchandise that is subject to the Rental
    Purchase Agreement Occupation and Use Tax. The purchaser
    must certify that the item is purchased to be rented
    subject to a rental purchase agreement, as defined in the
    Rental Purchase Agreement Act, and provide proof of
    registration under the Rental Purchase Agreement
    Occupation and Use Tax Act. This paragraph is exempt from
    the provisions of Section 2-70.
        (44) Qualified tangible personal property used in the
    construction or operation of a data center that has been
    granted a certificate of exemption by the Department of
    Commerce and Economic Opportunity, whether that tangible
    personal property is purchased by the owner, operator, or
    tenant of the data center or by a contractor or
    subcontractor of the owner, operator, or tenant. Data
    centers that would have qualified for a certificate of
    exemption prior to January 1, 2020 had this amendatory Act
    of the 101st General Assembly been in effect, may apply
    for and obtain an exemption for subsequent purchases of
    computer equipment or enabling software purchased or
    leased to upgrade, supplement, or replace computer
    equipment or enabling software purchased or leased in the
    original investment that would have qualified.
        The Department of Commerce and Economic Opportunity
    shall grant a certificate of exemption under this item
    (44) to qualified data centers as defined by Section
    605-1025 of the Department of Commerce and Economic
    Opportunity Law of the Civil Administrative Code of
    Illinois.
        For the purposes of this item (44):
            "Data center" means a building or a series of
        buildings rehabilitated or constructed to house
        working servers in one physical location or multiple
        sites within the State of Illinois.
            "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. The term "qualified tangible personal
        property" also includes building materials physically
        incorporated into in to the qualifying data center. To
        document the exemption allowed under this Section, the
        retailer must obtain from the purchaser a copy of the
        certificate of eligibility issued by the Department of
        Commerce and Economic Opportunity.
        This item (44) is exempt from the provisions of
    Section 2-70.
        (45) Beginning January 1, 2020 and through December
    31, 2020, sales of tangible personal property made by a
    marketplace seller over a marketplace for which tax is due
    under this Act but for which use tax has been collected and
    remitted to the Department by a marketplace facilitator
    under Section 2d of the Use Tax Act are exempt from tax
    under this Act. A marketplace seller claiming this
    exemption shall maintain books and records demonstrating
    that the use tax on such sales has been collected and
    remitted by a marketplace facilitator. Marketplace sellers
    that have properly remitted tax under this Act on such
    sales may file a claim for credit as provided in Section 6
    of this Act. No claim is allowed, however, for such taxes
    for which a credit or refund has been issued to the
    marketplace facilitator under the Use Tax Act, or for
    which the marketplace facilitator has filed a claim for
    credit or refund under the Use Tax Act.
(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
8-27-21; revised 11-9-21.)
 
ARTICLE 80. STATE FINANCE ACT

 
    Section 80-5. The State Finance Act is amended by changing
Section 8g-1 as follows:
 
    (30 ILCS 105/8g-1)
    Sec. 8g-1. Fund transfers.
    (a) (Blank).
    (b) (Blank).
    (c) (Blank).
    (d) (Blank).
    (e) (Blank).
    (f) (Blank).
    (g) (Blank).
    (h) (Blank).
    (i) (Blank).
    (j) (Blank).
    (k) (Blank).
    (l) (Blank).
    (m) (Blank).
    (n) (Blank).
    (o) (Blank).
    (p) (Blank).
    (q) (Blank).
    (r) (Blank).
    (s) (Blank).
    (t) (Blank).
    (u) In addition to any other transfers that may be
provided for by law, on July 1, 2021, or as soon thereafter as
practical, only as directed by the Director of the Governor's
Office of Management and Budget, the State Comptroller shall
direct and the State Treasurer shall transfer the sum of
$5,000,000 from the General Revenue Fund to the DoIT Special
Projects Fund, and on June 1, 2022, or as soon thereafter as
practical, but no later than June 30, 2022, the State
Comptroller shall direct and the State Treasurer shall
transfer the sum so transferred from the DoIT Special Projects
Fund to the General Revenue Fund.
    (v) In addition to any other transfers that may be
provided for by law, on July 1, 2021, or as soon thereafter as
practical, the State Comptroller shall direct and the State
Treasurer shall transfer the sum of $500,000 from the General
Revenue Fund to the Governor's Administrative Fund.
    (w) In addition to any other transfers that may be
provided for by law, on July 1, 2021, or as soon thereafter as
practical, the State Comptroller shall direct and the State
Treasurer shall transfer the sum of $500,000 from the General
Revenue Fund to the Grant Accountability and Transparency
Fund.
    (x) In addition to any other transfers that may be
provided for by law, at a time or times during Fiscal Year 2022
as directed by the Governor, the State Comptroller shall
direct and the State Treasurer shall transfer up to a total of
$20,000,000 from the General Revenue Fund to the Illinois
Sports Facilities Fund to be credited to the Advance Account
within the Fund.
    (y) In addition to any other transfers that may be
provided for by law, on June 15, 2021, or as soon thereafter as
practical, but no later than June 30, 2021, the State
Comptroller shall direct and the State Treasurer shall
transfer the sum of $100,000,000 from the General Revenue Fund
to the Technology Management Revolving Fund.
    (z) In addition to any other transfers that may be
provided for by law, on the effective date of this amendatory
Act of the 102nd General Assembly, or as soon thereafter as
practical, but no later than June 30, 2022, the State
Comptroller shall direct and the State Treasurer shall
transfer the sum of $720,000,000 from the General Revenue Fund
to the Budget Stabilization Fund.
    (aa) In addition to any other transfers that may be
provided for by law, on July 1, 2022, or as soon thereafter as
practical, the State Comptroller shall direct and the State
Treasurer shall transfer the sum of $280,000,000 from the
General Revenue Fund to the Budget Stabilization Fund.
    (bb) In addition to any other transfers that may be
provided for by law, on July 1, 2022, or as soon thereafter as
practical, the State Comptroller shall direct and the State
Treasurer shall transfer the sum of $200,000,000 from the
General Revenue Fund to the Pension Stabilization Fund.
(Source: P.A. 101-10, eff. 6-5-19; 101-636, eff. 6-10-20;
102-16, eff. 6-17-21.)
 
ARTICLE 85. INCOME TAX-INSTRUCTIONAL MATERIALS

 
    Section 85-5. The Illinois Income Tax Act is amended by
changing Section 225 as follows:
 
    (35 ILCS 5/225)
    Sec. 225. Credit for instructional materials and supplies.
For taxable years beginning on and after January 1, 2017, a
taxpayer shall be allowed a credit in the amount paid by the
taxpayer during the taxable year for instructional materials
and supplies with respect to classroom based instruction in a
qualified school, or the maximum credit amount $250, whichever
is less, provided that the taxpayer is a teacher, instructor,
counselor, principal, or aide in a qualified school for at
least 900 hours during a school year.
    The credit may not be carried back and may not 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.
    For purposes of this Section, the term "materials and
supplies" means amounts paid for instructional materials or
supplies that are designated for classroom use in any
qualified school. For purposes of this Section, the term
"qualified school" means a public school or non-public school
located in Illinois.
    For purposes of this Section, the term "maximum credit
amount" means (i) $250 for taxable years beginning prior to
January 1, 2023 and (ii) $500 for taxable years beginning on or
after January 1, 2023.
    This Section is exempt from the provisions of Section 250.
(Source: P.A. 100-22, eff. 7-6-17.)
 
ARTICLE 95. AGRITOURISM

 
    Section 95-3. The Illinois Administrative Procedure Act is
amended by adding Section 5-45.22 as follows:
 
    (5 ILCS 100/5-45.22 new)
    Sec. 5-45.22. Emergency rulemaking. To provide for the
expeditious and timely implementation of Article 95 of this
amendatory Act of the 102nd General Assembly, emergency rules
implementing Article 95 of this amendatory Act of the 102nd
General Assembly may be adopted in accordance with Section
5-45 by the Department of Agriculture. The adoption of
emergency rules authorized by Section 5-45 and this Section is
deemed to be necessary for the public interest, safety, and
welfare.
    This Section is repealed one year after the effective date
of this amendatory Act of the 102nd General Assembly.
 
    Section 95-5. The Illinois Income Tax Act is amended by
adding Section 232 as follows:
 
    (35 ILCS 5/232 new)
    Sec. 232. Tax credit for agritourism liability insurance.
    (a) For taxable years beginning on or after January 1,
2022 and ending on or before December 31, 2023, any individual
or entity that operates an agritourism operation in the State
during the taxable year shall be entitled to a tax credit
against the tax imposed by subsections (a) and (b) of Section
201 equal to the lesser of 100% of the liability insurance
premiums paid by that individual or entity during the taxable
year or $1,000. To claim the credit, the taxpayer must apply to
the Department of Agriculture for a certificate of credit in
the form and manner required by the Department of Agriculture
by rule. If granted, the taxpayer shall attach a copy of the
certificate of credit to his or her Illinois income tax return
for the taxable year. The total amount of credits that may be
awarded by the Department of Agriculture may not exceed
$1,000,000 in any calendar year.
    (b) For the purposes of this Section:
    "Agricultural property" means property that is used in
whole or in part for production agriculture, as defined in
Section 3-35 of the Use Tax Act, or used in connection with one
or more of the following:
        (1) the growing and harvesting of crops;
        (2) the feeding, breeding, and management of
    livestock;
        (3) dairying or any other agricultural or
    horticultural use or combination of those uses, including,
    but not limited to, the harvesting of hay, grain, fruit,
    or truck or vegetable crops, or floriculture, mushroom
    growing, plant or tree nurseries, orchards, forestry, sod
    farming, or greenhouses; or
        (4) the keeping, raising, and feeding of livestock or
    poultry, including dairying, poultry, swine, sheep, beef
    cattle, ponies or horses, fur farming, bees, fish and
    wildlife farming.
    "Agritourism activities" includes, but is not limited to,
the following:
        (1) historic, cultural, and on-site educational
    programs;
        (2) guided and self-guided tours, including school
    tours;
        (3) animal exhibitions or petting zoos;
        (4) agricultural crop mazes, such as corn or flower
    mazes;
        (5) harvest-your-own or U-pick operations;
        (6) horseback or pony rides; and
        (7) hayrides or sleigh rides.
    "Agritourism activities" does not include the following
activities:
        (1) hunting;
        (2) fishing;
        (3) amusement rides;
        (4) rodeos;
        (5) off-road biking or motorized off-highway or
    all-terrain vehicle activities;
        (6) boating, swimming, canoeing, hiking, camping,
    skiing, bounce houses, or similar activities; or
        (7) entertainment venues such as weddings or concerts.
    "Agritourism operation" means an individual or entity that
carries out agricultural activities on agricultural property
and allows members of the general public, for recreational,
entertainment, or educational purposes, to view or enjoy those
activities.
    (c) If the taxpayer is a partnership or Subchapter S
corporation, the credit shall be allowed to the partners or
shareholders 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.
    (d) 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.
 
ARTICLE 100. PARKING EXCISE TAX

 
    Section 100-5. The Parking Excise Tax Act is amended by
changing Section 10-5 as follows:
 
    (35 ILCS 525/10-5)
    Sec. 10-5. Definitions. As used in this Act:
    "Booking intermediary" means any person or entity that
facilitates the processing and fulfillment of reservation
transactions between an operator and a person or entity
desiring parking in a parking lot or garage of that operator.
    "Charge or fee paid for parking" means the gross amount of
consideration for the use or privilege of parking a motor
vehicle in or upon any parking lot or garage in the State,
collected by an operator and valued in money, whether received
in money or otherwise, including cash, credits, property, and
services, determined without any deduction for costs or
expenses, but not including charges that are added to the
charge or fee on account of the tax imposed by this Act or on
account of any other tax imposed on the charge or fee. "Charge
or fee paid for parking" excludes separately stated charges
not for the use or privilege or parking and excludes amounts
retained by or paid to a booking intermediary for services
provided by the booking intermediary. If any separately stated
charge is not optional, it shall be presumed that it is part of
the charge for the use or privilege or parking.
    "Department" means the Department of Revenue.
    "Operator" means any person who engages in the business of
operating a parking area or garage, or who, directly or
through an agreement or arrangement with another party,
collects the consideration for parking or storage of motor
vehicles, recreational vehicles, or other self-propelled
vehicles, at that parking place. This includes, but is not
limited to, any facilitator or aggregator that collects the
purchase price from the purchaser the charge or fee paid for
parking. "Operator" does not include a bank, credit card
company, payment processor, booking intermediary, or person
whose involvement is limited to performing functions that are
similar to those performed by a bank, credit card company, or
payment processor, or booking intermediary.
    "Parking area or garage" means any real estate, building,
structure, premises, enclosure or other place, whether
enclosed or not, except a public way, within the State, where
motor vehicles, recreational vehicles, or other self-propelled
vehicles, are stored, housed or parked for hire, charge, fee
or other valuable consideration in a condition ready for use,
or where rent or compensation is paid to the owner, manager,
operator or lessee of the premises for the housing, storing,
sheltering, keeping or maintaining motor vehicles,
recreational vehicles, or other self-propelled vehicles.
"Parking area or garage" includes any parking area or garage,
whether the vehicle is parked by the owner of the vehicle or by
the operator or an attendant.
    "Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian, or other representative appointed
by order of any court.
    "Purchase price" means the consideration paid for the
purchase of a parking space in a parking area or garage, valued
in money, whether received in money or otherwise, including
cash, gift cards, credits, and property, and shall be
determined without any deduction on account of the cost of
materials used, labor or service costs, or any other expense
whatsoever.
    "Purchase price" includes any and all charges that the
recipient pays related to or incidental to obtaining the use
or privilege of using a parking space in a parking area or
garage, including but not limited to any and all related
markups, service fees, convenience fees, facilitation fees,
cancellation fees, overtime fees, or other such charges,
regardless of terminology. However, "purchase price" shall not
include consideration paid for:
        (1) optional, separately stated charges not for the
    use or privilege of using a parking space in the parking
    area or garage;
        (2) any charge for a dishonored check;
        (3) any finance or credit charge, penalty or charge
    for delayed payment, or discount for prompt payment;
        (4) any purchase by a purchaser if the operator is
    prohibited by federal or State Constitution, treaty,
    convention, statute or court decision from collecting the
    tax from such purchaser;
        (5) the isolated or occasional sale of parking spaces
    subject to tax under this Act by a person who does not hold
    himself out as being engaged (or who does not habitually
    engage) in selling of parking spaces; and
        (6) any amounts added to a purchaser's bills because
    of charges made pursuant to the tax imposed by this Act. If
    credit is extended, then the amount thereof shall be
    included only as and when payments are made.
    "Purchaser" means any person who acquires a parking space
in a parking area or garage for use for valuable
consideration.
    "Use" means the exercise by any person of any right or
power over, or the enjoyment of, a parking space in a parking
area or garage subject to tax under this Act.
(Source: P.A. 101-31, eff. 6-28-19.)
 
ARTICLE 105. UNEMPLOYMENT BENEFITS

 
    Section 105-5. The Unemployment Insurance Act is amended
by changing Sections 401, 403, 703, 1505, 1506.6, and 2100 as
follows:
 
    (820 ILCS 405/401)  (from Ch. 48, par. 401)
    Sec. 401. Weekly Benefit Amount - Dependents' Allowances.
    A. With respect to any week beginning in a benefit year
beginning prior to January 4, 2004, an individual's weekly
benefit amount shall be an amount equal to the weekly benefit
amount as defined in the provisions of this Act as amended and
in effect on November 18, 2011.
    B. 1. With respect to any benefit year beginning on or
after January 4, 2004 and before January 6, 2008, an
individual's weekly benefit amount shall be 48% of his or her
prior average weekly wage, rounded (if not already a multiple
of one dollar) to the next higher dollar; provided, however,
that the weekly benefit amount cannot exceed the maximum
weekly benefit amount and cannot be less than $51. Except as
otherwise provided in this Section, with respect to any
benefit year beginning on or after January 6, 2008, an
individual's weekly benefit amount shall be 47% of his or her
prior average weekly wage, rounded (if not already a multiple
of one dollar) to the next higher dollar; provided, however,
that the weekly benefit amount cannot exceed the maximum
weekly benefit amount and cannot be less than $51. With
respect to any benefit year beginning on or after January 1,
2023 and before January 1, 2024 July 3, 2022, an individual's
weekly benefit amount shall be 42.4% of his or her prior
average weekly wage, rounded (if not already a multiple of one
dollar) to the next higher dollar; provided, however, that the
weekly benefit amount cannot exceed the maximum weekly benefit
amount and cannot be less than $51.
    2. For the purposes of this subsection:
    An individual's "prior average weekly wage" means the
total wages for insured work paid to that individual during
the 2 calendar quarters of his base period in which such total
wages were highest, divided by 26. If the quotient is not
already a multiple of one dollar, it shall be rounded to the
nearest dollar; however if the quotient is equally near 2
multiples of one dollar, it shall be rounded to the higher
multiple of one dollar.
    "Determination date" means June 1 and December 1 of each
calendar year except that, for the purposes of this Act only,
there shall be no June 1 determination date in any year.
    "Determination period" means, with respect to each June 1
determination date, the 12 consecutive calendar months ending
on the immediately preceding December 31 and, with respect to
each December 1 determination date, the 12 consecutive
calendar months ending on the immediately preceding June 30.
    "Benefit period" means the 12 consecutive calendar month
period beginning on the first day of the first calendar month
immediately following a determination date, except that, with
respect to any calendar year in which there is a June 1
determination date, "benefit period" shall mean the 6
consecutive calendar month period beginning on the first day
of the first calendar month immediately following the
preceding December 1 determination date and the 6 consecutive
calendar month period beginning on the first day of the first
calendar month immediately following the June 1 determination
date.
    "Gross wages" means all the wages paid to individuals
during the determination period immediately preceding a
determination date for insured work, and reported to the
Director by employers prior to the first day of the third
calendar month preceding that date.
    "Covered employment" for any calendar month means the
total number of individuals, as determined by the Director,
engaged in insured work at mid-month.
    "Average monthly covered employment" means one-twelfth of
the sum of the covered employment for the 12 months of a
determination period.
    "Statewide average annual wage" means the quotient,
obtained by dividing gross wages by average monthly covered
employment for the same determination period, rounded (if not
already a multiple of one cent) to the nearest cent.
    "Statewide average weekly wage" means the quotient,
obtained by dividing the statewide average annual wage by 52,
rounded (if not already a multiple of one cent) to the nearest
cent. Notwithstanding any provision of this Section to the
contrary, the statewide average weekly wage for any benefit
period prior to calendar year 2012 shall be as determined by
the provisions of this Act as amended and in effect on November
18, 2011. Notwithstanding any provisions of this Section to
the contrary, the statewide average weekly wage for the
benefit period of calendar year 2012 shall be $856.55 and for
each calendar year thereafter, the statewide average weekly
wage shall be the statewide average weekly wage, as determined
in accordance with this sentence, for the immediately
preceding benefit period plus (or minus) an amount equal to
the percentage change in the statewide average weekly wage, as
computed in accordance with the first sentence of this
paragraph, between the 2 immediately preceding benefit
periods, multiplied by the statewide average weekly wage, as
determined in accordance with this sentence, for the
immediately preceding benefit period. However, for purposes of
the Workers' Compensation Act, the statewide average weekly
wage will be computed using June 1 and December 1
determination dates of each calendar year and such
determination shall not be subject to the limitation of the
statewide average weekly wage as computed in accordance with
the preceding sentence of this paragraph.
    With respect to any week beginning in a benefit year
beginning prior to January 4, 2004, "maximum weekly benefit
amount" with respect to each week beginning within a benefit
period shall be as defined in the provisions of this Act as
amended and in effect on November 18, 2011.
    With respect to any benefit year beginning on or after
January 4, 2004 and before January 6, 2008, "maximum weekly
benefit amount" with respect to each week beginning within a
benefit period means 48% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar.
    Except as otherwise provided in this Section, with respect
to any benefit year beginning on or after January 6, 2008,
"maximum weekly benefit amount" with respect to each week
beginning within a benefit period means 47% of the statewide
average weekly wage, rounded (if not already a multiple of one
dollar) to the next higher dollar.
    With respect to any benefit year beginning on or after
January 1, 2023 and before January 1, 2024 July 3, 2022,
"maximum weekly benefit amount" with respect to each week
beginning within a benefit period means 42.4% of the statewide
average weekly wage, rounded (if not already a multiple of one
dollar) to the next higher dollar.
    C. With respect to any week beginning in a benefit year
beginning prior to January 4, 2004, an individual's
eligibility for a dependent allowance with respect to a
nonworking spouse or one or more dependent children shall be
as defined by the provisions of this Act as amended and in
effect on November 18, 2011.
    With respect to any benefit year beginning on or after
January 4, 2004 and before January 6, 2008, an individual to
whom benefits are payable with respect to any week shall, in
addition to those benefits, be paid, with respect to such
week, as follows: in the case of an individual with a
nonworking spouse, 9% of his or her prior average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar, provided, that the total amount payable to the
individual with respect to a week shall not exceed 57% of the
statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar; and in the
case of an individual with a dependent child or dependent
children, 17.2% of his or her prior average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar, provided that the total amount payable to the
individual with respect to a week shall not exceed 65.2% of the
statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar.
    With respect to any benefit year beginning on or after
January 6, 2008 and before January 1, 2010, an individual to
whom benefits are payable with respect to any week shall, in
addition to those benefits, be paid, with respect to such
week, as follows: in the case of an individual with a
nonworking spouse, 9% of his or her prior average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar, provided, that the total amount payable to the
individual with respect to a week shall not exceed 56% of the
statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar; and in the
case of an individual with a dependent child or dependent
children, 18.2% of his or her prior average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar, provided that the total amount payable to the
individual with respect to a week shall not exceed 65.2% of the
statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar.
    The additional amount paid pursuant to this subsection in
the case of an individual with a dependent child or dependent
children shall be referred to as the "dependent child
allowance", and the percentage rate by which an individual's
prior average weekly wage is multiplied pursuant to this
subsection to calculate the dependent child allowance shall be
referred to as the "dependent child allowance rate".
    Except as otherwise provided in this Section, with respect
to any benefit year beginning on or after January 1, 2010, an
individual to whom benefits are payable with respect to any
week shall, in addition to those benefits, be paid, with
respect to such week, as follows: in the case of an individual
with a nonworking spouse, the greater of (i) 9% of his or her
prior average weekly wage, rounded (if not already a multiple
of one dollar) to the next higher dollar, or (ii) $15, provided
that the total amount payable to the individual with respect
to a week shall not exceed 56% of the statewide average weekly
wage, rounded (if not already a multiple of one dollar) to the
next higher dollar; and in the case of an individual with a
dependent child or dependent children, the greater of (i) the
product of the dependent child allowance rate multiplied by
his or her prior average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar, or (ii) the
lesser of $50 or 50% of his or her weekly benefit amount,
rounded (if not already a multiple of one dollar) to the next
higher dollar, provided that the total amount payable to the
individual with respect to a week shall not exceed the product
of the statewide average weekly wage multiplied by the sum of
47% plus the dependent child allowance rate, rounded (if not
already a multiple of one dollar) to the next higher dollar.
    With respect to any benefit year beginning on or after
January 1, 2023 and before January 1, 2024 July 3, 2022, an
individual to whom benefits are payable with respect to any
week shall, in addition to those benefits, be paid, with
respect to such week, as follows: in the case of an individual
with a nonworking spouse, the greater of (i) 9% of his or her
prior average weekly wage, rounded (if not already a multiple
of one dollar) to the next higher dollar, or (ii) $15, provided
that the total amount payable to the individual with respect
to a week shall not exceed 51.4% of the statewide average
weekly wage, rounded (if not already a multiple of one dollar)
to the next higher dollar; and in the case of an individual
with a dependent child or dependent children, the greater of
(i) the product of the dependent child allowance rate
multiplied by his or her prior average weekly wage, rounded
(if not already a multiple of one dollar) to the next higher
dollar, or (ii) the lesser of $50 or 50% of his or her weekly
benefit amount, rounded (if not already a multiple of one
dollar) to the next higher dollar, provided that the total
amount payable to the individual with respect to a week shall
not exceed the product of the statewide average weekly wage
multiplied by the sum of 42.4% plus the dependent child
allowance rate, rounded (if not already a multiple of one
dollar) to the next higher dollar.
    With respect to each benefit year beginning after calendar
year 2012, the dependent child allowance rate shall be the sum
of the allowance adjustment applicable pursuant to Section
1400.1 to the calendar year in which the benefit year begins,
plus the dependent child allowance rate with respect to each
benefit year beginning in the immediately preceding calendar
year, except as otherwise provided in this subsection. The
dependent child allowance rate with respect to each benefit
year beginning in calendar year 2010 shall be 17.9%. The
dependent child allowance rate with respect to each benefit
year beginning in calendar year 2011 shall be 17.4%. The
dependent child allowance rate with respect to each benefit
year beginning in calendar year 2012 shall be 17.0% and, with
respect to each benefit year beginning after calendar year
2012, shall not be less than 17.0% or greater than 17.9%.
    For the purposes of this subsection:
    "Dependent" means a child or a nonworking spouse.
    "Child" means a natural child, stepchild, or adopted child
of an individual claiming benefits under this Act or a child
who is in the custody of any such individual by court order,
for whom the individual is supplying and, for at least 90
consecutive days (or for the duration of the parental
relationship if it has existed for less than 90 days)
immediately preceding any week with respect to which the
individual has filed a claim, has supplied more than one-half
the cost of support, or has supplied at least 1/4 of the cost
of support if the individual and the other parent, together,
are supplying and, during the aforesaid period, have supplied
more than one-half the cost of support, and are, and were
during the aforesaid period, members of the same household;
and who, on the first day of such week (a) is under 18 years of
age, or (b) is, and has been during the immediately preceding
90 days, unable to work because of illness or other
disability: provided, that no person who has been determined
to be a child of an individual who has been allowed benefits
with respect to a week in the individual's benefit year shall
be deemed to be a child of the other parent, and no other
person shall be determined to be a child of such other parent,
during the remainder of that benefit year.
    "Nonworking spouse" means the lawful husband or wife of an
individual claiming benefits under this Act, for whom more
than one-half the cost of support has been supplied by the
individual for at least 90 consecutive days (or for the
duration of the marital relationship if it has existed for
less than 90 days) immediately preceding any week with respect
to which the individual has filed a claim, but only if the
nonworking spouse is currently ineligible to receive benefits
under this Act by reason of the provisions of Section 500E.
    An individual who was obligated by law to provide for the
support of a child or of a nonworking spouse for the aforesaid
period of 90 consecutive days, but was prevented by illness or
injury from doing so, shall be deemed to have provided more
than one-half the cost of supporting the child or nonworking
spouse for that period.
(Source: P.A. 101-423, eff. 1-1-20; 101-633, eff. 6-5-20;
102-671, eff. 11-30-21.)
 
    (820 ILCS 405/403)  (from Ch. 48, par. 403)
    Sec. 403. Maximum total amount of benefits.
    A. With respect to any benefit year beginning prior to
September 30, 1979, any otherwise eligible individual shall be
entitled, during such benefit year, to a maximum total amount
of benefits as shall be determined in the manner set forth in
this Act as amended and in effect on November 9, 1977.
    B. With respect to any benefit year beginning on or after
September 30, 1979, except as otherwise provided in this
Section, any otherwise eligible individual shall be entitled,
during such benefit year, to a maximum total amount of
benefits equal to 26 times his or her weekly benefit amount
plus dependents' allowances, or to the total wages for insured
work paid to such individual during the individual's base
period, whichever amount is smaller. With respect to any
benefit year beginning in calendar year 2012, any otherwise
eligible individual shall be entitled, during such benefit
year, to a maximum total amount of benefits equal to 25 times
his or her weekly benefit amount plus dependents' allowances,
or to the total wages for insured work paid to such individual
during the individual's base period, whichever amount is
smaller. With respect to any benefit year beginning on or
after January 1, 2023 and before January 1, 2024 July 3, 2022,
any otherwise eligible individual shall be entitled, during
such benefit year, to a maximum total amount of benefits equal
to 24 times his or her weekly benefit amount plus dependents'
allowances, or to the total wages for insured work paid to such
individual during the individual's base period, whichever
amount is smaller.
(Source: P.A. 101-423, eff. 1-1-20; 102-671, eff. 11-30-21.)
 
    (820 ILCS 405/703)  (from Ch. 48, par. 453)
    Sec. 703. Reconsideration of findings or determinations.
The claims adjudicator may reconsider his finding at any time
within thirteen weeks after the close of the benefit year. He
may reconsider his determination at any time within one year
after the last day of the week for which the determination was
made, except that if the issue is whether or not, by reason of
a back pay award made by any governmental agency or pursuant to
arbitration proceedings, or by reason of a payment of wages
wrongfully withheld by an employing unit, an individual has
received wages for a week with respect to which he or she has
received benefits or if the issue is whether or not the
claimant misstated his earnings for the week, such
reconsidered determination may be made at any time within 3
years after the last day of the week, or if the issue is
whether or not an individual misstated earnings for any week
beginning on or after March 15, 2020, such reconsidered
determination may be made at any time within 5 years after the
last day of the week. No finding or determination shall be
reconsidered at any time after appeal therefrom has been taken
pursuant to the provisions of Section 800, except where a case
has been remanded to the claims adjudicator by a Referee, the
Director or the Board of Review, and except, further, that if
an issue as to whether or not the claimant misstated his
earnings is newly discovered, the determination may be
reconsidered after and notwithstanding the fact that the
decision upon the appeal has become final. Notice of such
reconsidered determination or reconsidered finding shall be
promptly given to the parties entitled to notice of the
original determination or finding, as the case may be, in the
same manner as is prescribed therefor, and such reconsidered
determination or reconsidered finding shall be subject to
appeal in the same manner and shall be given the same effect as
is provided for an original determination or finding.
    The changes made by this amendatory Act of the 102nd
General Assembly apply retroactively to March 15, 2020.
(Source: P.A. 92-396, eff. 1-1-02.)
 
    (820 ILCS 405/1505)  (from Ch. 48, par. 575)
    Sec. 1505. Adjustment of state experience factor. The
state experience factor shall be adjusted in accordance with
the following provisions:
    A. For calendar years prior to 1988, the state experience
factor shall be adjusted in accordance with the provisions of
this Act as amended and in effect on November 18, 2011.
    B. (Blank).
    C. For calendar year 1988 and each calendar year
thereafter, for which the state experience factor is being
determined.
        1. For every $50,000,000 (or fraction thereof) by
    which the adjusted trust fund balance falls below the
    target balance set forth in this subsection, the state
    experience factor for the succeeding year shall be
    increased one percent absolute.
        For every $50,000,000 (or fraction thereof) by which
    the adjusted trust fund balance exceeds the target balance
    set forth in this subsection, the state experience factor
    for the succeeding year shall be decreased by one percent
    absolute.
        The target balance in each calendar year prior to 2003
    is $750,000,000. The target balance in calendar year 2003
    is $920,000,000. The target balance in calendar year 2004
    is $960,000,000. The target balance in calendar year 2005
    and each calendar year thereafter is $1,000,000,000.
        2. For the purposes of this subsection:
        "Net trust fund balance" is the amount standing to the
    credit of this State's account in the unemployment trust
    fund as of June 30 of the calendar year immediately
    preceding the year for which a state experience factor is
    being determined.
        "Adjusted trust fund balance" is the net trust fund
    balance minus the sum of the benefit reserves for fund
    building for July 1, 1987 through June 30 of the year prior
    to the year for which the state experience factor is being
    determined. The adjusted trust fund balance shall not be
    less than zero. If the preceding calculation results in a
    number which is less than zero, the amount by which it is
    less than zero shall reduce the sum of the benefit
    reserves for fund building for subsequent years.
        For the purpose of determining the state experience
    factor for 1989 and for each calendar year thereafter, the
    following "benefit reserves for fund building" shall apply
    for each state experience factor calculation in which that
    12 month period is applicable:
            a. For the 12 month period ending on June 30, 1988,
        the "benefit reserve for fund building" shall be
        8/104th of the total benefits paid from January 1,
        1988 through June 30, 1988.
            b. For the 12 month period ending on June 30, 1989,
        the "benefit reserve for fund building" shall be the
        sum of:
                i. 8/104ths of the total benefits paid from
            July 1, 1988 through December 31, 1988, plus
                ii. 4/108ths of the total benefits paid from
            January 1, 1989 through June 30, 1989.
            c. For the 12 month period ending on June 30, 1990,
        the "benefit reserve for fund building" shall be
        4/108ths of the total benefits paid from July 1, 1989
        through December 31, 1989.
            d. For 1992 and for each calendar year thereafter,
        the "benefit reserve for fund building" for the 12
        month period ending on June 30, 1991 and for each
        subsequent 12 month period shall be zero.
        3. Notwithstanding the preceding provisions of this
    subsection, for calendar years 1988 through 2003, the
    state experience factor shall not be increased or
    decreased by more than 15 percent absolute.
    D. Notwithstanding the provisions of subsection C, the
adjusted state experience factor:
        1. Shall be 111 percent for calendar year 1988;
        2. Shall not be less than 75 percent nor greater than
    135 percent for calendar years 1989 through 2003; and
    shall not be less than 75% nor greater than 150% for
    calendar year 2004 and each calendar year thereafter, not
    counting any increase pursuant to subsection D-1, D-2, or
    D-3;
        3. Shall not be decreased by more than 5 percent
    absolute for any calendar year, beginning in calendar year
    1989 and through calendar year 1992, by more than 6%
    absolute for calendar years 1993 through 1995, by more
    than 10% absolute for calendar years 1999 through 2003 and
    by more than 12% absolute for calendar year 2004 and each
    calendar year thereafter, from the adjusted state
    experience factor of the calendar year preceding the
    calendar year for which the adjusted state experience
    factor is being determined;
        4. Shall not be increased by more than 15% absolute
    for calendar year 1993, by more than 14% absolute for
    calendar years 1994 and 1995, by more than 10% absolute
    for calendar years 1999 through 2003 and by more than 16%
    absolute for calendar year 2004 and each calendar year
    thereafter, from the adjusted state experience factor for
    the calendar year preceding the calendar year for which
    the adjusted state experience factor is being determined;
        5. Shall be 100% for calendar years 1996, 1997, and
    1998.
    D-1. The adjusted state experience factor for each of
calendar years 2013 through 2015 shall be increased by 5%
absolute above the adjusted state experience factor as
calculated without regard to this subsection. The adjusted
state experience factor for each of calendar years 2016
through 2018 shall be increased by 6% absolute above the
adjusted state experience factor as calculated without regard
to this subsection. The increase in the adjusted state
experience factor for calendar year 2018 pursuant to this
subsection shall not be counted for purposes of applying
paragraph 3 or 4 of subsection D to the calculation of the
adjusted state experience factor for calendar year 2019.
    D-2. (Blank).
    D-3. The adjusted state experience factor for the portion
of calendar year 2023 2022 beginning July 3, 2022 shall be
increased by 16% absolute above the adjusted state experience
factor as calculated without regard to this subsection. The
increase in the adjusted state experience factor for the
portion of calendar year 2023 2022 beginning July 3, 2022
pursuant to this subsection shall not be counted for purposes
of applying paragraph 3 or 4 of subsection D to the calculation
of the adjusted state experience factor for calendar year 2024
2023.
    E. The amount standing to the credit of this State's
account in the unemployment trust fund as of June 30 shall be
deemed to include as part thereof (a) any amount receivable on
that date from any Federal governmental agency, or as a
payment in lieu of contributions under the provisions of
Sections 1403 and 1405 B and paragraph 2 of Section 302C, in
reimbursement of benefits paid to individuals, and (b) amounts
credited by the Secretary of the Treasury of the United States
to this State's account in the unemployment trust fund
pursuant to Section 903 of the Federal Social Security Act, as
amended, including any such amounts which have been
appropriated by the General Assembly in accordance with the
provisions of Section 2100 B for expenses of administration,
except any amounts which have been obligated on or before that
date pursuant to such appropriation.
(Source: P.A. 101-423, eff. 1-1-20; 101-633, eff. 6-5-20;
102-671, eff. 11-30-21.)
 
    (820 ILCS 405/1506.6)
    Sec. 1506.6. Surcharge; specified period. For each
employer whose contribution rate for calendar year 2023 2022
is determined pursuant to Section 1500 or 1506.1, in addition
to the contribution rate established pursuant to Section
1506.3, for the portion of calendar year 2022 beginning July
3, 2022, an additional surcharge of 0.325% shall be added to
the contribution rate. The surcharge established by this
Section shall be due at the same time as other contributions
with respect to the quarter are due, as provided in Section
1400. Payments attributable to the surcharge established
pursuant to this Section shall be contributions and deposited
into the clearing account.
(Source: P.A. 101-423, eff. 1-1-20; 101-633, eff. 6-5-20;
102-671, eff. 11-30-21.)
 
    (820 ILCS 405/2100)  (from Ch. 48, par. 660)
    Sec. 2100. Handling of funds - Bond - Accounts.
    A. All contributions and payments in lieu of contributions
collected under this Act, including but not limited to fund
building receipts and receipts attributable to the surcharge
established pursuant to Section 1506.5, together with any
interest thereon; all penalties collected pursuant to this
Act; any property or securities acquired through the use
thereof; all moneys advanced to this State's account in the
unemployment trust fund pursuant to the provisions of Title
XII of the Social Security Act, as amended; all moneys
directed for transfer from the Master Bond Fund or the Title
XII Interest Fund to this State's account in the unemployment
trust fund; all moneys received from the Federal government as
reimbursements pursuant to Section 204 of the Federal-State
Extended Unemployment Compensation Act of 1970, as amended;
all moneys credited to this State's account in the
unemployment trust fund pursuant to Section 903 of the Federal
Social Security Act, as amended; all administrative fees
collected from individuals pursuant to Section 900 or from
employing units pursuant to Section 2206.1; funds directed for
deposit into the State's account in the Unemployment Trust
Fund from any other source; and all earnings of such property
or securities and any interest earned upon any such moneys
shall be paid or turned over to the Department and held by the
Director, as ex-officio custodian of the clearing account, the
unemployment trust fund account and the benefit account, and
by the State Treasurer, as ex-officio custodian of the special
administrative account, separate and apart from all public
moneys or funds of this State, as hereinafter provided. Such
moneys shall be administered by the Director exclusively for
the purposes of this Act.
    No such moneys shall be paid or expended except upon the
direction of the Director in accordance with such regulations
as he shall prescribe pursuant to the provisions of this Act.
    The State Treasurer shall be liable on his general
official bond for the faithful performance of his duties in
connection with the moneys in the special administrative
account provided for under this Act. Such liability on his
official bond shall exist in addition to the liability upon
any separate bond given by him. All sums recovered for losses
sustained by the account shall be deposited in that account.
    The Director shall be liable on his general official bond
for the faithful performance of his duties in connection with
the moneys in the clearing account, the benefit account and
unemployment trust fund account provided for under this Act.
Such liability on his official bond shall exist in addition to
the liability upon any separate bond given by him. All sums
recovered for losses sustained by any one of the accounts
shall be deposited in the account that sustained such loss.
    The Treasurer shall maintain for such moneys a special
administrative account. The Director shall maintain for such
moneys 3 separate accounts: a clearing account, a benefit
account, and an unemployment trust fund account. All moneys
payable under this Act (except moneys requisitioned from this
State's account in the unemployment trust fund and deposited
in the benefit account and moneys directed for deposit into
the Special Programs Fund provided for under Section 2107),
including but not limited to moneys directed for transfer from
the Master Bond Fund or the Title XII Interest Fund to this
State's account in the unemployment trust fund, upon receipt
thereof, shall be immediately deposited in the clearing
account; provided, however, that, except as is otherwise
provided in this Section, interest and penalties shall not be
deemed a part of the clearing account but shall be transferred
immediately upon clearance thereof to the special
administrative account; further provided that an amount not to
exceed $90,000,000 in payments attributable to the surcharge
established pursuant to Section 1506.5, including any interest
thereon, shall not be deemed a part of the clearing account but
shall be transferred immediately upon clearance thereof to the
Title XII Interest Fund.
    After clearance thereof, all other moneys in the clearing
account shall be immediately deposited by the Director with
the Secretary of the Treasury of the United States of America
to the credit of the account of this State in the unemployment
trust fund, established and maintained pursuant to the Federal
Social Security Act, as amended, except fund building
receipts, which shall be deposited into the Master Bond Fund.
The benefit account shall consist of all moneys requisitioned
from this State's account in the unemployment trust fund. The
moneys in the benefit account shall be expended in accordance
with regulations prescribed by the Director and solely for the
payment of benefits, refunds of contributions, interest and
penalties under the provisions of the Act, the payment of
health insurance in accordance with Section 410 of this Act,
and the transfer or payment of funds to any Federal or State
agency pursuant to reciprocal arrangements entered into by the
Director under the provisions of Section 2700E, except that
moneys credited to this State's account in the unemployment
trust fund pursuant to Section 903 of the Federal Social
Security Act, as amended, shall be used exclusively as
provided in subsection B. For purposes of this Section only,
to the extent allowed by applicable legal requirements, the
payment of benefits includes but is not limited to the payment
of principal on any bonds issued pursuant to the Illinois
Unemployment Insurance Trust Fund Financing Act, exclusive of
any interest or administrative expenses in connection with the
bonds. The Director shall, from time to time, requisition from
the unemployment trust fund such amounts, not exceeding the
amounts standing to the State's account therein, as he deems
necessary solely for the payment of such benefits, refunds,
and funds, for a reasonable future period. The Director, as
ex-officio custodian of the benefit account, which shall be
kept separate and apart from all other public moneys, shall
issue payment of such benefits, refunds, health insurance and
funds solely from the moneys so received into the benefit
account. However, after January 1, 1987, no payment shall be
drawn on such benefit account unless at the time of drawing
there is sufficient money in the account to make the payment.
The Director shall retain in the clearing account an amount of
interest and penalties equal to the amount of interest and
penalties to be refunded from the benefit account. After
clearance thereof, the amount so retained shall be immediately
deposited by the Director, as are all other moneys in the
clearing account, with the Secretary of the Treasury of the
United States. If, at any time, an insufficient amount of
interest and penalties is available for retention in the
clearing account, no refund of interest or penalties shall be
made from the benefit account until a sufficient amount is
available for retention and is so retained, or until the State
Treasurer, upon the direction of the Director, transfers to
the Director a sufficient amount from the special
administrative account, for immediate deposit in the benefit
account.
    Any balance of moneys requisitioned from the unemployment
trust fund which remains unclaimed or unpaid in the benefit
account after the expiration of the period for which such sums
were requisitioned shall either be deducted from estimates of
and may be utilized for authorized expenditures during
succeeding periods, or, in the discretion of the Director,
shall be redeposited with the Secretary of the Treasury of the
United States to the credit of the State's account in the
unemployment trust fund.
    Moneys in the clearing, benefit and special administrative
accounts shall not be commingled with other State funds but
they shall be deposited as required by law and maintained in
separate accounts on the books of a savings and loan
association or bank.
    No bank or savings and loan association shall receive
public funds as permitted by this Section, unless it has
complied with the requirements established pursuant to Section
6 of "An Act relating to certain investments of public funds by
public agencies", approved July 23, 1943, as now or hereafter
amended.
    B. Moneys credited to the account of this State in the
unemployment trust fund by the Secretary of the Treasury of
the United States pursuant to Section 903 of the Social
Security Act may be requisitioned from this State's account
and used as authorized by Section 903. Any interest required
to be paid on advances under Title XII of the Social Security
Act shall be paid in a timely manner and shall not be paid,
directly or indirectly, by an equivalent reduction in
contributions or payments in lieu of contributions from
amounts in this State's account in the unemployment trust
fund. Such moneys may be requisitioned and used for the
payment of expenses incurred for the administration of this
Act, but only pursuant to a specific appropriation by the
General Assembly and only if the expenses are incurred and the
moneys are requisitioned after the enactment of an
appropriation law which:
        1. Specifies the purpose or purposes for which such
    moneys are appropriated and the amount or amounts
    appropriated therefor;
        2. Limits the period within which such moneys may be
    obligated to a period ending not more than 2 years after
    the date of the enactment of the appropriation law; and
        3. Limits the amount which may be obligated during any
    fiscal year to an amount which does not exceed the amount
    by which (a) the aggregate of the amounts transferred to
    the account of this State pursuant to Section 903 of the
    Social Security Act exceeds (b) the aggregate of the
    amounts used by this State pursuant to this Act and
    charged against the amounts transferred to the account of
    this State.
    For purposes of paragraph (3) above, amounts obligated for
administrative purposes pursuant to an appropriation shall be
chargeable against transferred amounts at the exact time the
obligation is entered into. The appropriation, obligation, and
expenditure or other disposition of money appropriated under
this subsection shall be accounted for in accordance with
standards established by the United States Secretary of Labor.
    Moneys appropriated as provided herein for the payment of
expenses of administration shall be requisitioned by the
Director as needed for the payment of obligations incurred
under such appropriation. Upon requisition, such moneys shall
be deposited with the State Treasurer, who shall hold such
moneys, as ex-officio custodian thereof, in accordance with
the requirements of Section 2103 and, upon the direction of
the Director, shall make payments therefrom pursuant to such
appropriation. Moneys so deposited shall, until expended,
remain a part of the unemployment trust fund and, if any will
not be expended, shall be returned promptly to the account of
this State in the unemployment trust fund.
    C. The Governor is authorized to apply to the United
States Secretary of Labor for an advance or advances to this
State's account in the unemployment trust fund pursuant to the
conditions set forth in Title XII of the Federal Social
Security Act, as amended. The State's account in the
unemployment trust fund is authorized to receive
appropriations of State funds from other State accounts to
repay any such advance or advances. The amount of any such
advance may be repaid from this State's account in the
unemployment trust fund.
    D. The Director shall annually on or before the first day
of March report in writing to the Employment Security Advisory
Board concerning the deposits into and expenditures from this
State's account in the Unemployment Trust Fund.
    E. The changes made by this amendatory Act of the 102nd
General Assembly to subsection A and subsection C clarify
authority already provided by law.
(Source: P.A. 97-1, eff. 3-31-11; 97-621, eff. 11-18-11;
97-791, eff. 1-1-13.)
 
ARTICLE 110. MICRO ACT

 
    Section 110-1. Short title. This Article may be cited as
the Manufacturing Illinois Chips for Real Opportunity (MICRO)
Act. References in this Article to "this Act" mean this
Article.
 
    Section 110-5. Purpose. It is the intent of the General
Assembly that Illinois should lead the nation in production of
semiconductors and microchips as they become even more
prevalent in everyday life. The General Assembly finds that,
through investments in semiconductors and microchips, Illinois
will be on the forefront of reshoring semiconductor and
microchip production that fuels modern technologies that are
essential to the operation of computers, phones, vehicles and
any electric product that have become essential to modern
life. This Act will create good paying jobs, and generate
long-term economic investment in the Illinois business
economy, in addition to ensuring a vital product is made in the
United States. Illinois must aggressively adopt new business
development investment tools so that Illinois can compete with
domestic and foreign competitors for semiconductor and chip
manufacturing.
 
    Section 110-10. Definitions. As used in this Act:
    "Agreement" means the agreement between a taxpayer and the
Department under the provisions of this Act.
    "Applicant" means a taxpayer that: (i) operates a business
in Illinois as a semiconductor manufacturer, a microchip
manufacturer, or a manufacturer of semiconductor or microchip
component parts; or (ii) is planning to locate a business
within the State of Illinois as a semiconductor manufacturer,
a microchip manufacturer, or a manufacturer of semiconductor
or microchip component parts. "Applicant" does not include a
taxpayer who closes or substantially reduces by more than 50%
operations at one location in the State and relocates
substantially the same operation to another location in the
State. This does not prohibit a Taxpayer from expanding its
operations at another location in the State. This also does
not prohibit a Taxpayer from moving its operations from one
location in the State to another location in the State for the
purpose of expanding the operation, provided that the
Department determines that expansion cannot reasonably be
accommodated within the municipality or county in which the
business is located, or, in the case of a business located in
an incorporated area of the county, within the county in which
the business is located, after conferring with the chief
elected official of the municipality or county and taking into
consideration any evidence offered by the municipality or
county regarding the ability to accommodate expansion within
the municipality or county.
    "Capital improvements" means the purchase, renovation,
rehabilitation, or construction of permanent tangible land,
buildings, structures, equipment, and furnishings in an
approved project sited in Illinois and expenditures for goods
or services that are normally capitalized, including
organizational costs and research and development costs
incurred in Illinois. For land, buildings, structures, and
equipment that are leased, the lease must equal or exceed the
term of the agreement, and the cost of the property shall be
determined from the present value, using the corporate
interest rate prevailing at the time of the application, of
the lease payments.
    "Credit" or "MICRO credit" means a credit agreed to
between the Department and applicant under this Act.
    "Department" means the Department of Commerce and Economic
Opportunity.
    "Director" means the Director of Commerce and Economic
Opportunity.
    "Energy Transition Area" means a county with less than
100,000 people or a municipality that contains one or more of
the following:
        (1) a fossil fuel plant that was retired from service
    or has significant reduced service within 6 years before
    the time of the application or will be retired or have
    service significantly reduced within 6 years following the
    time of the application; or
        (2) a coal mine that was closed or had operations
    significantly reduced within 6 years before the time of
    the application or is anticipated to be closed or have
    operations significantly reduced within 6 years following
    the time of the application.
    "Full-time employee" means an individual who is employed
for consideration for at least 35 hours each week or who
renders any other standard of service generally accepted by
industry custom or practice as full-time employment. An
individual for whom a W-2 is issued by a Professional Employer
Organization (PEO) is a full-time employee if employed in the
service of the applicant for consideration for at least 35
hours each week.
    "Incremental income tax" means the total amount withheld
during the taxable year from the compensation of new employees
and, if applicable, retained employees under Article 7 of the
Illinois Income Tax Act arising from employment at a project
that is the subject of an agreement.
    "Institution of higher education" or "institution" means
any accredited public or private university, college,
community college, business, technical, or vocational school,
or other accredited educational institution offering degrees
and instruction beyond the secondary school level.
    "MICRO construction jobs credit" means a credit agreed to
between the Department and the applicant under this Act that
is based on the incremental income tax attributable to
construction wages paid in connection with construction of the
project facilities.
    "MICRO credit" means a credit agreed to between the
Department and the applicant under this Act that is based on
the incremental income tax attributable to new employees and,
if applicable, retained employees, and on training costs for
such employees at the applicant's project.
    "Microchip" means a wafer of semiconducting material that
is less than 15 millimeters long and less than 5 millimeters
wide and is used to make an integrated circuit.
    "Microchip manufacturer" means a new or existing
manufacturer that is focused on reequipping, expanding, or
establishing a manufacturing facility in Illinois that
produces microchips or key components that directly support
the functions of microchips.
    "Minority person" means a minority person as defined in
the Business Enterprise for Minorities, Women, and Persons
with Disabilities Act.
    "New employee" means a newly-hired full-time employee
employed to work at the project site and whose work is directly
related to the project.
    "Noncompliance date" means, in the case of a taxpayer that
is not complying with the requirements of the agreement or the
provisions of this Act, the day following the last date upon
which the taxpayer was in compliance with the requirements of
the agreement and the provisions of this Act, as determined by
the Director.
    "Pass-through entity" means an entity that is exempt from
the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
    "Placed in service" means the state or condition of
readiness, availability for a specifically assigned function,
and the facility is constructed and ready to conduct its
facility operations to manufacture goods.
    "Professional employer organization" (PEO) means an
employee leasing company, as defined in Section 206.1 of the
Illinois Unemployment Insurance Act.
    "Program" means the Manufacturing Illinois Chips for Real
Opportunity (MICRO) program established in this Act.
    "Project" means a for-profit economic development activity
for the manufacture of semiconductors and microchips.
    "Related member" means a person that, with respect to the
taxpayer during any portion of the taxable year, is any one of
the following:
        (1) An individual stockholder, if the stockholder and
    the members of the stockholder's family (as defined in
    Section 318 of the Internal Revenue Code) own directly,
    indirectly, beneficially, or constructively, in the
    aggregate, at least 50% of the value of the taxpayer's
    outstanding stock.
        (2) A partnership, estate, trust and any partner or
    beneficiary, if the partnership, estate, or trust, and its
    partners or beneficiaries own directly, indirectly,
    beneficially, or constructively, in the aggregate, at
    least 50% of the profits, capital, stock, or value of the
    taxpayer.
        (3) A corporation, and any party related to the
    corporation in a manner that would require an attribution
    of stock from the corporation under the attribution rules
    of Section 318 of the Internal Revenue Code, if the
    Taxpayer owns directly, indirectly, beneficially, or
    constructively at least 50% of the value of the
    corporation's outstanding stock.
        (4) A corporation and any party related to that
    corporation in a manner that would require an attribution
    of stock from the corporation to the party or from the
    party to the corporation under the attribution rules of
    Section 318 of the Internal Revenue Code, if the
    corporation and all such related parties own in the
    aggregate at least 50% of the profits, capital, stock, or
    value of the taxpayer.
        (5) A person to or from whom there is an attribution of
    stock ownership in accordance with Section 1563(e) of the
    Internal Revenue Code, except, for purposes of determining
    whether a person is a related member under this paragraph,
    20% shall be substituted for 5% wherever 5% appears in
    Section 1563(e) of the Internal Revenue Code.
    "Retained employee" means a full-time employee employed by
the taxpayer prior to the term of the Agreement who continues
to be employed during the term of the agreement whose job
duties are directly and substantially related to the project.
For purposes of this definition, "directly and substantially
related to the project" means at least two-thirds of the
employee's job duties must be directly related to the project
and the employee must devote at least two-thirds of his or her
time to the project. The term "retained employee" does not
include any individual who has a direct or an indirect
ownership interest of at least 5% in the profits, equity,
capital, or value of the taxpayer or a child, grandchild,
parent, or spouse, other than a spouse who is legally
separated from the individual, of any individual who has a
direct or indirect ownership of at least 5% in the profits,
equity, capital, or value of the taxpayer.
    "Semiconductor" means any class of crystalline solids
intermediate in electrical conductivity between a conductor
and an insulator.
    "Semiconductor manufacturer" means a new or existing
manufacturer that is focused on reequipping, expanding, or
establishing a manufacturing facility in Illinois that
produces semiconductors or key components that directly
support the functions of semiconductors.
    "Statewide baseline" means the total number of full-time
employees of the applicant and any related member employed by
such entities at the time of application for incentives under
this Act.
    "Taxpayer" means an individual, corporation, partnership,
or other entity that has a legal obligation to pay Illinois
income taxes and file an Illinois income tax return.
    "Training costs" means costs incurred to upgrade the
technological skills of full-time employees in Illinois and
includes: curriculum development; training materials
(including scrap product costs); trainee domestic travel
expenses; instructor costs (including wages, fringe benefits,
tuition and domestic travel expenses); rent, purchase or lease
of training equipment; and other usual and customary training
costs. "Training costs" do not include costs associated with
travel outside the United States (unless the Taxpayer receives
prior written approval for the travel by the Director based on
a showing of substantial need or other proof the training is
not reasonably available within the United States), wages and
fringe benefits of employees during periods of training, or
administrative cost related to Full-Time Employees of the
Taxpayer.
    "Underserved area" means any geographic areas as defined
in Section 5-5 of the Economic Development for a Growing
Economy Tax Credit Act.
 
    Section 110-15. Powers of the Department. The Department,
in addition to those powers granted under the Civil
Administrative Code of Illinois, is granted and shall have all
the powers necessary or convenient to administer the program
under this Act and to carry out and effectuate the purposes and
provisions of this Act, including, but not limited to, the
power and authority to:
        (1) adopt rules deemed necessary and appropriate for
    the administration of the program, the designation of
    projects, and the awarding of credits;
        (2) establish forms for applications, notifications,
    contracts, or any other agreements and accept applications
    at any time during the year;
        (3) assist taxpayers pursuant to the provisions of
    this Act and cooperate with taxpayers that are parties to
    agreements under this Act to promote, foster, and support
    economic development, capital investment, and job creation
    or retention within the State;
        (4) enter into agreements and memoranda of
    understanding for participation of, and engage in
    cooperation with, agencies of the federal government,
    units of local government, universities, research
    foundations or institutions, regional economic development
    corporations, or other organizations to implement the
    requirements and purposes of this Act;
        (5) gather information and conduct inquiries, in the
    manner and by the methods it deems desirable, including
    without limitation, gathering information with respect to
    applicants for the purpose of making any designations or
    certifications necessary or desirable or to gather
    information to assist the Department with any
    recommendation or guidance in the furtherance of the
    purposes of this Act;
        (6) establish, negotiate and effectuate agreements and
    any term, agreement, or other document with any person,
    necessary or appropriate to accomplish the purposes of
    this Act; and to consent, subject to the provisions of any
    agreement with another party, to the modification or
    restructuring of any agreement to which the Department is
    a party;
        (7) fix, determine, charge, and collect any premiums,
    fees, charges, costs, and expenses from applicants,
    including, without limitation, any application fees,
    commitment fees, program fees, financing charges, or
    publication fees as deemed appropriate to pay expenses
    necessary or incident to the administration, staffing, or
    operation in connection with the Department's activities
    under this Act, or for preparation, implementation, and
    enforcement of the terms of the agreement, or for
    consultation, advisory and legal fees, and other costs;
    however, all fees and expenses incident thereto shall be
    the responsibility of the applicant;
        (8) provide for sufficient personnel to permit
    administration, staffing, operation, and related support
    required to adequately discharge its duties and
    responsibilities described in this Act from funds made
    available through charges to applicants or from funds as
    may be appropriated by the General Assembly for the
    administration of this Act;
        (9) require applicants, upon written request, to issue
    any necessary authorization to the appropriate federal,
    State, or local authority for the release of information
    concerning a project being considered under the provisions
    of this Act, with the information requested to include,
    but not be limited to, financial reports, returns, or
    records relating to the taxpayer or its project;
        (10) require that a taxpayer shall at all times keep
    proper books of record and account in accordance with
    generally accepted accounting principles consistently
    applied, with the books, records, or papers related to the
    agreement in the custody or control of the taxpayer open
    for reasonable Department inspection and audits, and
    including, without limitation, the making of copies of the
    books, records, or papers, and the inspection or appraisal
    of any of the taxpayer or project assets;
        (11) take whatever actions are necessary or
    appropriate to protect the State's interest in the event
    of bankruptcy, default, foreclosure, or noncompliance with
    the terms and conditions of financial assistance or
    participation required under this Act, including the power
    to sell, dispose, lease, or rent, upon terms and
    conditions determined by the Director to be appropriate,
    real or personal property that the Department may receive
    as a result of these actions.
 
    Section 110-20. Manufacturing Illinois Chips for Real
Opportunity (MICRO) Program; project applications.
    (a) The Manufacturing Illinois Chips for Real Opportunity
(MICRO) Program is hereby established and shall be
administered by the Department. The Program will provide
financial incentives to eligible semiconductor manufacturers
and microchip manufacturers.
    (b) Any taxpayer planning a project to be located in
Illinois may request consideration for designation of its
project as a MICRO project, by formal written letter of
request or by formal application to the Department, in which
the applicant states its intent to make at least a specified
level of investment and intends to hire a specified number of
full-time employees at a designated location in Illinois. As
circumstances require, the Department shall require a formal
application from an applicant and a formal letter of request
for assistance.
    (c) In order to qualify for credits under the program, an
Applicant must:
        (1) for a semiconductor manufacturer or microchip
    manufacturer:
            (A) make an investment of at least $1,500,000,000
        in capital improvements at the project site;
            (B) to be placed in service within the State
        within a 60-month period after approval of the
        application; and
            (C) create at least 500 new full-time employee
        jobs; or
        (2) for a semiconductor or microchip component parts
    manufacturer:
            (A) make an investment of at least $300,000,000 in
        capital improvements at the project site;
            (B) manufacture one or more parts that are
        primarily used for the manufacture of semiconductors
        or microchips;
            (C) to be placed in service within the State
        within a 60-month period after approval of the
        application; and
            (D) create at least 150 new full-time employee
        jobs; or
        (3) for a semiconductor manufacturer or microchip
    manufacturer or a semiconductor or microchip component
    parts manufacturer that does not quality under paragraph
    (2) above:
            (A) make an investment of at least $20,000,000 in
        capital improvements at the project site;
            (B) to be placed in service within the State
        within a 48-month period after approval of the
        application; and
            (C) create at least 50 new full-time employee
        jobs; or
        (4) for a semiconductor manufacturer or microchip
    manufacturer or a semiconductor or microchip component
    parts manufacturer with existing operations in Illinois
    that intends to convert or expand, in whole or in part, the
    existing facility from traditional manufacturing to
    semiconductor manufacturing or microchip manufacturing or
    semiconductor or microchip component parts manufacturing:
            (A) make an investment of at least $100,000,000 in
        capital improvements at the project site;
            (B) to be placed in service within the State
        within a 60-month period after approval of the
        application; and
            (C) create the lesser of 75 new full-time employee
        jobs or new full-time employee jobs equivalent to 10%
        of the Statewide baseline applicable to the taxpayer
        and any related member at the time of application.
    (d) For any applicant creating the full-time employee jobs
noted in subsection (c), those jobs must have a total
compensation equal to or greater than 120% of the average wage
paid to full-time employees in the county where the project is
located, as determined by the U.S. Bureau of Labor Statistics.
    (e) Each applicant must outline its hiring plan and
commitment to recruit and hire full-time employee positions at
the project site. The hiring plan may include a partnership
with an institution of higher education to provide
internships, including, but not limited to, internships
supported by the Clean Jobs Workforce Network Program, or
full-time permanent employment for students at the project
site. Additionally, the applicant may create or utilize
participants from apprenticeship programs that are approved by
and registered with the United States Department of Labor's
Bureau of Apprenticeship and Training. The Applicant may apply
for apprenticeship education expense credits in accordance
with the provisions set forth in 14 Ill. Admin. Code 522. Each
applicant is required to report annually, on or before April
15, on the diversity of its workforce in accordance with
Section 110-50 of this Act. For existing facilities of
applicants under paragraph (3) of subsection (b) above, if the
taxpayer expects a reduction in force due to its transition to
manufacturing semiconductors, microchips, or semiconductor or
microchip component parts, the plan submitted under this
Section must outline the taxpayer's plan to assist with
retraining its workforce aligned with the taxpayer's adoption
of new technologies and anticipated efforts to retrain
employees through employment opportunities within the
taxpayer's workforce.
    (f) A taxpayer may not enter into more than one agreement
under this Act with respect to a single address or location for
the same period of time. Also, a taxpayer may not enter into an
agreement under this Act with respect to a single address or
location for the same period of time for which the taxpayer
currently holds an active agreement under the Economic
Development for a Growing Economy Tax Credit Act. This
provision does not preclude the applicant from entering into
an additional agreement after the expiration or voluntary
termination of an earlier agreement under this Act or under
the Economic Development for a Growing Economy Tax Credit Act
to the extent that the taxpayer's application otherwise
satisfies the terms and conditions of this Act and is approved
by the Department. An applicant with an existing agreement
under the Economic Development for a Growing Economy Tax
Credit Act may submit an application for an agreement under
this Act after it terminates any existing agreement under the
Economic Development for a Growing Economy Tax Credit Act with
respect to the same address or location.
 
    Section 110-25. Review of application. The Department
shall determine which projects will benefit the State. In
making its recommendation that an applicant's application for
credit should or should not be accepted, which shall occur
within a reasonable time frame as determined by the nature of
the application, the Department shall determine that all the
following conditions exist:
        (1) the applicant intends to make the required
    investment in the State and intends to hire the required
    number of full-time employees;
        (2) the applicant's project is economically sound,
    will benefit the people of the State by increasing
    opportunities for employment, and will strengthen the
    economy of the State;
        (3) awarding the credit will result in an overall
    positive fiscal impact to the State, as certified by the
    Department using the best available data; and
        (4) the credit is not prohibited under this Act.
 
    Section 110-30. Tax credit awards.
    (a) Subject to the conditions set forth in this Act, a
taxpayer is entitled to a credit against the tax imposed
pursuant to subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act for a taxable year beginning on or
after January 1, 2025 if the taxpayer is awarded a credit by
the Department in accordance with an agreement under this Act.
The Department has authority to award credits under this Act
on and after January 1, 2023.
    (b) A taxpayer may receive a tax credit against the tax
imposed under subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act, not to exceed the sum of (i) 75% of
the incremental income tax attributable to new employees at
the applicant's project and (ii) 10% of the training costs of
the new employees. If the project is located in an underserved
area or an energy transition area, then the amount of the
credit may not exceed the sum of (i) 100% of the incremental
income tax attributable to new employees at the applicant's
project; and (ii) 10% of the training costs of the new
employees. The percentage of training costs includable in the
calculation may be increased by an additional 15% for training
costs associated with new employees that are recent (2 years
or less) graduates, certificate holders, or credential
recipients from an institution of higher education in
Illinois, or, if the training is provided by an institution of
higher education in Illinois, the Clean Jobs Workforce Network
Program, or an apprenticeship and training program located in
Illinois and approved by and registered with the United States
Department of Labor's Bureau of Apprenticeship and Training.
An applicant is also eligible for a training credit that shall
not exceed 10% of the training costs of retained employees for
the purpose of upskilling to meet the operational needs of the
applicant or the project. The percentage of training costs
includable in the calculation shall not exceed a total of 25%.
If an applicant agrees to hire the required number of new
employees, then the maximum amount of the credit for that
applicant may be increased by an amount not to exceed 25% of
the incremental income tax attributable to retained employees
at the applicant's project; provided that, in order to receive
the increase for retained employees, the applicant must, if
applicable, meet or exceed the statewide baseline. If the
Project is in an underserved area or an energy transition
area, the maximum amount of the credit attributable to
retained employees for the applicant may be increased to an
amount not to exceed 50% of the incremental income tax
attributable to retained employees at the applicant's project;
provided that, in order to receive the increase for retained
employees, the applicant must meet or exceed the statewide
baseline. Credits awarded may include credit earned for
incremental income tax withheld and training costs incurred by
the taxpayer beginning on or after January 1, 2023. Credits so
earned and certified by the Department may be applied against
the tax imposed by subsections (a) and (b) of Section 201 of
the Illinois Income Tax Act for taxable years beginning on or
after January 1, 2025.
    (c) MICRO Construction Jobs Credit. For construction wages
associated with a project that qualified for a credit under
subsection (b), the taxpayer may receive a tax credit against
the tax imposed under subsections (a) and (b) of Section 201 of
the Illinois Income Tax Act in an amount equal to 50% of the
incremental income tax attributable to construction wages paid
in connection with construction of the project facilities, as
a jobs credit for workers hired to construct the project.
    The MICRO Construction Jobs Credit may not exceed 75% of
the amount of the incremental income tax attributable to
construction wages paid in connection with construction of the
project facilities if the project is in an underserved area or
an energy transition area.
    (d) The Department shall certify to the Department of
Revenue: (1) the identity of Taxpayers that are eligible for
the MICRO Credit and MICRO Construction Jobs Credit; (2) the
amount of the MICRO Credits and MICRO Construction Jobs
Credits awarded in each calendar year; and (3) the amount of
the MICRO Credit and MICRO Construction Jobs Credit claimed in
each calendar year. MICRO Credits awarded may include credit
earned for Incremental Income Tax withheld and Training Costs
incurred by the Taxpayer beginning on or after January 1,
2023. Credits so earned and certified by the Department may be
applied against the tax imposed by Section 201(a) and (b) of
the Illinois Income Tax Act for taxable years beginning on or
after January 1, 2025.
    (e) Applicants seeking certification for a tax credits
related to the construction of the project facilities in the
State shall require the contractor to enter into a project
labor agreement that conforms with the Project Labor
Agreements Act.
    (f) Any applicant issued a certificate for a tax credit or
tax exemption under this Act must annually report to the
Department the total project tax benefits received. Reports
are due no later than May 31 of each year and shall cover the
previous calendar year. The first report is for the 2023
calendar year and is due no later than May 31, 2023.
    (g) Nothing in this Act shall prohibit an award of credit
to an applicant that uses a PEO if all other award criteria are
satisfied.
    (h) With respect to any portion of a Credit that is based
on the incremental income tax attributable to new employees or
retained employees, in lieu of the Credit allowed under this
Act against the taxes imposed pursuant to subsections (a) and
(b) of Section 201 of the Illinois Income Tax Act, a taxpayer
that otherwise meets the criteria set forth in this Section,
the taxpayer may elect to claim the credit, on or after January
1, 2025, against its obligation to pay over withholding under
Section 704A of the Illinois Income Tax Act. The election
shall be made in the manner prescribed by the Department of
Revenue and once made shall be irrevocable.
 
    Section 110-35. Relocation of jobs in Illinois. A taxpayer
is not entitled to claim a credit provided by this Act with
respect to any jobs that the Taxpayer relocates from one site
in Illinois to another site in Illinois. Any full-time
employee relocated to Illinois in connection with a qualifying
project is deemed to be a new employee for purposes of this
Act. Determinations under this Section shall be made by the
Department.
 
    Section 110-40. Amount and duration of the credits;
limitation to amount of costs of specified items. The
Department shall determine the amount and duration of the
credit awarded under this Act, subject to the limitations set
forth in this Act. For a project that qualified under
paragraph (1), (2), or (4) of subsection (c) of Section
110-20, the duration of the credit may not exceed 15 taxable
years. For project that qualified under paragraph (3) of
subsection (c) of Section 110-20, the duration of the credit
may not exceed 10 taxable years. The credit may be stated as a
percentage of the incremental income tax and training costs
attributable to the applicant's project and may include a
fixed dollar limitation.
    Nothing in this Section shall prevent the Department, in
consultation with the Department of Revenue, from adopting
rules to extend the sunset of any earned, existing, and unused
tax credit or credits a taxpayer may be in possession of.
 
    Section 110-45. Contents of agreements with applicants.
    (a) The Department shall enter into an agreement with an
applicant that is awarded a credit under this Act. The
agreement shall include all of the following:
        (1) A detailed description of the project that is the
    subject of the agreement, including the location and
    amount of the investment and jobs created or retained.
        (2) The duration of the credit, the first taxable year
    for which the credit may be awarded, and the first taxable
    year in which the credit may be used by the taxpayer.
        (3) The credit amount that will be allowed for each
    taxable year.
        (4) For a project qualified under paragraphs (1), (2),
    or (4) of subsection (c) of Section 110-20, a requirement
    that the taxpayer shall maintain operations at the project
    location a minimum number of years not to exceed 15. For
    project qualified under paragraph (3) of subsection (c) of
    Section 110-20, a requirement that the taxpayer shall
    maintain operations at the project location a minimum
    number of years not to exceed 10.
        (5) A specific method for determining the number of
    new employees and, if applicable, retained employees,
    employed during a taxable year.
        (6) A requirement that the taxpayer shall annually
    report to the Department the number of new employees, the
    incremental income tax withheld in connection with the new
    employees, and any other information the Department deems
    necessary and appropriate to perform its duties under this
    Act.
        (7) A requirement that the Director is authorized to
    verify with the appropriate State agencies the amounts
    reported under paragraph (6), and after doing so shall
    issue a certificate to the taxpayer stating that the
    amounts have been verified.
        (8) A requirement that the taxpayer shall provide
    written notification to the Director not more than 30 days
    after the taxpayer makes or receives a proposal that would
    transfer the taxpayer's State tax liability obligations to
    a successor taxpayer.
        (9) A detailed description of the number of new
    employees to be hired, and the occupation and payroll of
    full-time jobs to be created or retained because of the
    project.
        (10) The minimum investment the taxpayer will make in
    capital improvements, the time period for placing the
    property in service, and the designated location in
    Illinois for the investment.
        (11) A requirement that the taxpayer shall provide
    written notification to the Director and the Director's
    designee not more than 30 days after the taxpayer
    determines that the minimum job creation or retention,
    employment payroll, or investment no longer is or will be
    achieved or maintained as set forth in the terms and
    conditions of the agreement. Additionally, the
    notification should outline to the Department the number
    of layoffs, date of the layoffs, and detail taxpayer's
    efforts to provide career and training counseling for the
    impacted workers with industry-related certifications and
    trainings.
        (12) A provision that, if the total number of new
    employees falls below a specified level, the allowance of
    credit shall be suspended until the number of new
    employees equals or exceeds the agreement amount.
        (13) If applicable, a provision that specifies the
    statewide baseline at the time of application for retained
    employees. Additionally, the agreement must have a
    provision addressing if the total number retained
    employees falls below the statewide baseline, the
    allowance of the credit shall be suspended until the
    number of retained employees equals or exceeds the
    agreement amount.
        (14) A detailed description of the items for which the
    costs incurred by the Taxpayer will be included in the
    limitation on the Credit.
        (15) A provision stating that if the taxpayer fails to
    meet either the investment or job creation and retention
    requirements specified in the agreement during the entire
    5-year period beginning on the first day of the first
    taxable year in which the agreement is executed and ending
    on the last day of the fifth taxable year after the
    agreement is executed, then the agreement is automatically
    terminated on the last day of the fifth taxable year after
    the agreement is executed, and the taxpayer is not
    entitled to the award of any credits for any of that 5-year
    period.
        (16) A provision stating that if the taxpayer ceases
    principal operations with the intent to permanently shut
    down the project in the State during the term of the
    Agreement, then the entire credit amount awarded to the
    taxpayer prior to the date the taxpayer ceases principal
    operations shall be returned to the Department and shall
    be reallocated to the local workforce investment area in
    which the project was located.
        (17) A provision stating that the Taxpayer must
    provide the reports outlined in Sections 110-50 and 110-55
    on or before April 15 each year.
        (18) A provision requiring the taxpayer to report
    annually its contractual obligations or otherwise with a
    recycling facility for its operations.
        (19) Any other performance conditions or contract
    provisions the Department determines are necessary or
    appropriate.
        (20) Each taxpayer under paragraph (1) of subsection
    (c) of Section 110-20 above shall maintain labor
    neutrality toward any union organizing campaign for any
    employees of the taxpayer assigned to work on the premises
    of the project. This paragraph shall not apply to a
    manufacturer who is subject to collective bargaining
    agreement entered into prior to the taxpayer filing an
    application pursuant to this Act.
    (b) The Department shall post on its website the terms of
each agreement entered into under this Act. Such information
shall be posted within 10 days after entering into the
agreement and must include the following:
        (1) the name of the taxpayer;
        (2) the location of the project;
        (3) the estimated value of the credit;
        (4) the number of new employee jobs and, if
    applicable, number of retained employee jobs at the
    project; and
        (5) whether or not the project is in an underserved
    area or energy transition area.
 
    Section 110-50. Diversity report on the taxpayer's
workforce, board of directors, and vendors.
    (a) Each taxpayer with a workforce of 100 or more
employees and with an agreement for a credit under this Act
shall, starting on April 15, 2026, and every year thereafter
prior to April 15, for which the Taxpayer has an Agreement
under this Act, submit to the Department an annual report
detailing the diversity of the taxpayer's own workforce,
including full-time and part-time employees, contractors, and
board of directors' membership. Any taxpayer seeking to claim
a credit under this Act that fails to timely submit the
required report shall not receive a credit for that taxable
year unless and until such report is finalized and submitted
to the Department. The report should also address the
Taxpayer's best efforts to meet or exceed the recruitment and
hiring plan outlined in the application referenced in Section
110-20. Those reports shall be submitted in the form and
manner required by the Department.
    (b) Vendor diversity and annual report. Each taxpayer with
a workforce of 100 or more full-time employees shall, starting
on April 15, 2025 and every year thereafter for which the
taxpayer has an Agreement under this Act, report on the
diversity of the vendors that it utilizes, for publication on
the Department's website, and include the following
information:
        (1) a point of contact for potential vendors to
    register with the taxpayer's project;
        (2) certifications that the taxpayer accepts or
    recognizes for minority and women-owned businesses as
    entities;
        (3) the taxpayer's goals to contract with diverse
    vendors, if any, for the next fiscal year for the entire
    budget of the taxpayer's project;
        (4) for the last fiscal year, the actual contractual
    spending for the entire budget of the project and the
    actual spending for minority-owned businesses and
    women-owned businesses, expressed as a percentage of the
    total budget for actual spending for the project;
        (5) a narrative explaining the results of the report
    and the taxpayer's plan to address the voluntary goals for
    the next fiscal year; and
        (6) a copy of the taxpayer's submission of vendor
    diversity information to the federal government, including
    but not limited to vendor diversity goals and actual
    contractual spending for minority-and women-owned
    businesses, if the Taxpayer is a federal contractor and is
    required by the federal government to submit such
    information.
 
    Section 110-55. Sexual harassment policy report. Each
taxpayer claiming a credit under this Act shall, prior to
April 15 of each taxable year for which the taxpayer claims a
credit under this Act, submit to the Department a report
detailing that taxpayer's sexual harassment policy, which
contains, at a minimum, the following information: (i) the
illegality of sexual harassment; (ii) the definition of sexual
harassment under State law; (iii) a description of sexual
harassment, utilizing examples; (iv) the vendor's internal
complaint process, including penalties; (v) the legal recourse
and investigative and complaint processes available through
the Department; (vi) directions on how to contact the
Department; and (vii) protection against retaliation as
provided by Section 6-101 of the Illinois Human Rights Act. A
copy of the policy shall be provided to the Department upon
request. The reports required under this Section shall be
submitted in a form and manner determined by the Department.
 
    Section 110-60. Certificate of verification; submission to
the Department of Revenue.
    (a) A taxpayer claiming a credit under this Act shall
submit to the Department of Revenue a copy of the Director's
certificate of verification under this Act for the taxable
year. However, failure to submit a copy of the certificate
with the taxpayer's tax return shall not invalidate a claim
for a credit.
    (b) For a taxpayer to be eligible for a certificate of
verification, the taxpayer shall provide proof as required by
the Department, prior to the end of each calendar year,
including, but not limited to, attestation by the taxpayer
that:
        (1) The project has achieved the level of new employee
    jobs specified in the agreement.
        (2) The project has achieved the level of annual
    payroll in Illinois specified in its agreement.
        (3) The project has achieved the level of capital
    improvements in Illinois specified in its agreement.
 
    Section 110-65. Certified payroll.
    (a) Each contractor and subcontractor that is engaged in
construction work on project facilities for a taxpayer who
seeks to apply for a MICRO Construction Jobs Credit shall:
        (1) make and keep, for a period of 5 years from the
    date of the last payment made on a contract or subcontract
    for construction of facilities for a project pursuant to
    an agreement, records of all laborers and other workers
    employed by the contractor or subcontractor on the
    project; the records shall include:
            (A) the worker's name;
            (B) the worker's address;
            (C) the worker's telephone number, if available;
            (D) the worker's social security number;
            (E) the worker's classification or
        classifications;
            (F) the worker's gross and net wages paid in each
        pay period;
            (G) the worker's number of hours worked in each
        day;
            (H) the worker's starting and ending times of work
        each day;
            (I) the worker's hourly wage rate; and
            (J) the worker's hourly overtime wage rate; and
        (2) no later than the 15th day of each calendar month,
    provide a certified payroll for the immediately preceding
    month to the taxpayer in charge of the project; within 5
    business days after receiving the certified payroll, the
    Taxpayer shall file the certified payroll with the
    Department of Labor and the Department; a certified
    payroll must be filed for only those calendar months
    during which construction on the project facilities has
    occurred; the certified payroll shall consist of a
    complete copy of the records identified in paragraph (1),
    but may exclude the starting and ending times of work each
    day; the certified payroll shall be accompanied by a
    statement signed by the contractor or subcontractor or an
    officer, employee, or agent of the contractor or
    subcontractor which avers that:
            (A) he or she has examined the certified payroll
        records required to be submitted by the Act and such
        records are true and accurate; and
            (B) the contractor or subcontractor is aware that
        filing a certified payroll that he or she knows to be
        false is a Class A misdemeanor.
    A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
    (b) Any contractor or subcontractor subject to this
Section, and any officer, employee, or agent of such
contractor or subcontractor whose duty as an officer,
employee, or agent it is to file a certified payroll under this
Section, who willfully fails to file such a certified payroll,
on or before the date such certified payroll is required to be
filed and any person who willfully files a false certified
payroll as to any material fact is in violation of this Act and
guilty of a Class A misdemeanor and may be enforced by the
Illinois Department of Labor or the Department. The Attorney
General shall represented the Illinois Department of Labor or
the Department in the proceeding.
    (c) The taxpayer in charge of the project shall keep the
records submitted in accordance with this Section for a period
of 5 years from the date of the last payment for work on a
contract or subcontract for the project.
    (d) The records submitted in accordance with this Section
shall be considered public records, except an employee's
address, telephone number, and social security number, which
shall be redacted. The records shall be made publicly
available in accordance with the Freedom of Information Act.
The contractor or subcontractor shall submit reports to the
Department of Labor electronically that meet the requirements
of this subsection and shall share the information with the
Department to comply with the awarding of the MICRO
Construction Jobs Credit. A contractor, subcontractor, or
public body may retain records required under this Section in
paper or electronic format.
    (e) Upon 7 business days' notice, the contractor and each
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in paragraph (1) of this subsection to the
Taxpayer in charge of the Project, its officers and agents,
the Director of the Department of Labor and his/her deputies
and agents, and to federal, State, or local law enforcement
agencies and prosecutors.
 
    Section 110-70. Noncompliance; notice; assessment. If the
Director determines that a taxpayer who has received a credit
under this Act is not complying with the requirements of the
agreement or all of the provisions of this Act, the Director
shall provide notice to the taxpayer of the alleged
noncompliance and allow the taxpayer a hearing under the
provisions of the Illinois Administrative Procedure Act. If,
after such notice and any hearing, the Director determines
that a noncompliance exists, the Director shall issue to the
Department of Revenue notice to that effect, stating the
noncompliance date. If, during the term of an agreement, the
taxpayer ceases operations at a project location that is the
subject of that agreement with the intent to terminate
operations in the State, the Department and the Department of
Revenue shall recapture from the taxpayer the entire credit
amount awarded under that agreement prior to the date the
taxpayer ceases operations. The Department shall, subject to
appropriation, reallocate the recaptured amounts within 6
months to the local workforce investment area in which the
project was located for purposes of workforce development,
expanded opportunities for unemployed persons, and expanded
opportunities for women and minority persons in the workforce.
The taxpayer will be ineligible for future funding under other
State tax credit or exemption programs for a 36-month period.
Noncompliance of the agreement with result in a default of
other agreements for State tax credits and exemption programs
for the project.
 
    Section 110-75. Annual report.
    (a) On or before July 1 each year, the Department shall
submit a report on the tax credit program under this Act to the
Governor and the General Assembly. The report shall include
information on the number of agreements that were entered into
under this Act during the preceding calendar year, a
description of the project that is the subject of each
agreement, an update on the status of projects under
agreements entered into before the preceding calendar year,
and the sum of the credits awarded under this Act. A copy of
the report shall be delivered to the Governor and to each
member of the General Assembly.
    (b) The report must include, for each agreement:
        (1) the original estimates of the value of the credit
    and the number of new employee jobs to be created and, if
    applicable, the number of retained employee jobs;
        (2) any relevant modifications to existing agreements;
        (3) a statement of the progress made by each taxpayer
    in meeting the terms of the original agreement;
        (4) a statement of wages paid to new employees and, if
    applicable, retained employees in the State; and
        (5) a copy of the original agreement or link to the
    agreement on the Department's website.
 
    Section 110-80. Evaluation of tax credit program. The
Department shall evaluate the tax credit program every three
years and issue a report. The evaluation shall include an
assessment of the effectiveness of the program in creating new
jobs in Illinois and of the revenue impact of the program and
may include a review of the practices and experiences of other
states with similar programs. The Director shall submit a
report on the evaluation to the Governor and the General
Assembly three years after the Effective Date of the Act and
every three years thereafter.
 
    Section 110-85. Sunset of new agreements. The Department
shall not enter into any new Agreements under the provisions
of this Act after December 31, 2028.
 
    Section 110-95. Utility tax exemptions for MICRO projects.
The Department may certify a taxpayer with a credit for a
project that meets the qualifications under paragraphs (1),
(2), and (4) of subsection (c) of Section 110-20, subject to an
agreement under this Act, for an exemption from the tax
imposed at the project site by Section 2-4 of the Electricity
Excise Tax Law. To receive such certification, the taxpayer
must be registered to self-assess that tax. The taxpayer is
also exempt from any additional charges added to the
taxpayer's utility bills at the project site as a pass-on of
State utility taxes under Section 9-222 of the Public
Utilities Act. The taxpayer must meet any other the criteria
for certification set by the Department.
    The Department shall determine the period during which the
exemption from the Electricity Excise Tax Law and the charges
imposed under Section 9-222 of the Public Utilities Act are in
effect, which shall not exceed 10 years from the date of the
taxpayer's initial receipt of certification from the
Department under this Section.
    The Department is authorized to adopt rules to carry out
the provisions of this Section, including procedures to apply
for the exemptions; to define the amounts and types of
eligible investments that an applicant must make in order to
receive electricity excise tax exemptions or exemptions from
the additional charges imposed under Section 9-222 and the
Public Utilities Act; to approve such electricity excise tax
exemptions for applicants whose investments are not yet placed
in service; and to require that an applicant granted an
electricity excise tax exemption or an exemption from
additional charges under Section 9-222 of the Public Utilities
Act repay the exempted amount if the Applicant fails to comply
with the terms and conditions of the agreement.
    Upon certification by the Department under this Section,
the Department shall notify the Department of Revenue of the
certification. The Department of Revenue shall notify the
public utilities of the exempt status of any taxpayer
certified for exemption under this Act from the electricity
excise tax or pass-on charges. The exemption status shall take
effect within 3 months after certification of the taxpayer and
notice to the Department of Revenue by the Department.
 
    Section 110-100. Investment tax credits for MICRO
projects. Subject to the conditions set forth in this Act, a
Taxpayer is entitled to an investment tax credit toward taxes
imposed pursuant to subsections (a) and (b) of Section 201 of
the Illinois Income Tax Act for a taxable year in which the
Taxpayer, in accordance with an Agreement under this Act for
that taxable year, invests in qualified property which is
placed in service at the site of a project. The Department has
authority to certify the amount of such investment tax credits
to the Department of Revenue. The credit shall be 0.5% of the
basis for such property and shall be determined in accordance
with Section 239 of the Illinois Income Tax Act. The credit
shall be available only in the taxable year in which the
property is placed in service and shall not be allowed to the
extent that it would reduce a taxpayer's liability for the tax
imposed by subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act to below zero. Unused credit may be
carried forward in accordance with Section 239 of the Illinois
Income Tax Act for use in future taxable years. Any taxpayer
qualifying for the Investment Tax Credit shall not be eligible
for either the investment tax credits in Section 201(e), (f),
or (h) of the Illinois Income Tax Act.
 
    Section 110-105. Building materials exemptions for project
sites.
    (a) The Department may certify a Taxpayer with a project
that meets the qualifications under paragraphs (1), (2), or
(4) of subsection (c) of Section 110-20, subject to an
agreement under this Act, for an exemption from any State or
local use tax or retailers' occupation tax on building
materials for the construction of its project facilities. The
taxpayer must meet any criteria for certification set by the
Department under this Act.
    The Department shall determine the period during which the
exemption from State and local use tax and retailers'
occupation tax are in effect, but in no event shall exceed 5
years in accordance with Section 5m of the Retailers'
Occupation Tax Act.
    The Department is authorized to promulgate rules and
regulations to carry out the provisions of this Section,
including procedures to apply for the exemption; to define the
amounts and types of eligible investments that an applicant
must make in order to receive tax exemption; to approve such
tax exemption for an applicant whose investments are not yet
placed in service; and to require that an applicant granted
exemption repay the exempted amount if the applicant fails to
comply with the terms and conditions of the agreement with the
Department.
    Upon certification by the Department under this Section,
the Department shall notify the Department of Revenue of the
certification. The exemption status shall take effect within 3
months after certification of the taxpayer and notice to the
Department of Revenue by the Department.
 
    Section 110-905. The Illinois Income Tax Act is amended by
changing Section 704A and by adding Sections 238 and 239 as
follows:
 
    (35 ILCS 5/238 new)
    Sec. 238. MICRO credits.
(a) For tax years beginning on or after January 1, 2025, a
taxpayer who has entered into an agreement under the
Manufacturing Illinois Chips for Real Opportunity (MICRO) Act
is entitled to a credit against the taxes imposed under
subsections (a) and (b) of Section 201 of this Act in an amount
to be determined in the Agreement. The taxpayer may elect to
claim the credit, on or after January 1, 2026, against its
obligation to pay over withholding under Section 704A of this
Act as provided in this Section. If the taxpayer is a
partnership or Subchapter S corporation, the credit shall be
allowed to the partners or shareholders 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. The Department, in cooperation with the Department of
Commerce and Economic Opportunity, shall adopt rules to
enforce and administer the provisions of this Section. This
Section is exempt from the provisions of Section 250 of this
Act.
    (b) The credit is subject to the conditions set forth in
the agreement and the following limitations:
        (1) The tax credit may be in the form of either or both
    the MICRO Illinois Credit or the MICRO Construction Jobs
    Credit and shall not exceed the percentage of incremental
    income tax and percentage of training costs permitted in
    that Act and in the agreement with respect to the project.
        (2) The amount of the credit allowed during a tax year
    plus the sum of all amounts allowed in prior tax years
    shall not exceed the maximum amount of credit established
    in the agreement.
        (3) The amount of the credit shall be determined on an
    annual basis. Except as applied in a carryover year
    pursuant to paragraph (4), the credit may not be applied
    against any State income tax liability in more than 15
    taxable years.
        (4) The credit may not exceed the amount of taxes
    imposed pursuant to subsections (a) and (b) of Section 201
    of this Act. Any credit that is unused in the year the
    credit is computed may be carried forward and applied to
    the tax liability of the 5 taxable years following the
    excess credit year. The credit shall be applied to the
    earliest year for which there is a tax liability. If there
    are credits from more than one tax year that are available
    to offset a liability, the earlier credit shall be applied
    first.
        (5) No credit shall be allowed with respect to any
    agreement for any taxable year ending after the
    noncompliance date. Upon receiving notification by the
    Department of Commerce and Economic Opportunity of the
    noncompliance of a taxpayer with an agreement, the
    Department shall notify the taxpayer that no credit is
    allowed with respect to that agreement for any taxable
    year ending after the noncompliance date, as stated in
    such notification. If any credit has been allowed with
    respect to an agreement for a taxable year ending after
    the noncompliance date for that agreement, 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.
        If, during any taxable year, a taxpayer ceases
    operations at a project location that is the subject of
    that agreement with the intent to terminate operations in
    the State, the tax imposed under subsections (a) and (b)
    of Section 201 of this Act for such taxable year shall be
    increased by the amount of any credit allowed under the
    Agreement for that Project location prior to the date the
    Taxpayer ceases operations.
        (6) Instead of claiming the credit against the taxes
    imposed under subsections (a) and (b) of Section 201 of
    this Act, with respect to the portion of a MICRO Illinois
    credit that is calculated based on the Incremental Income
    Tax attributable to new employees and retained employees,
    the taxpayer may elect, in accordance with the
    Manufacturing Illinois Chips for Real Opportunity (MICRO)
    Act, to claim the credit, on or after January 1, 2026,
    against its obligation to pay over withholding under
    Section 704A of the Illinois Income Tax Act. Any credit
    for which a Taxpayer makes such an election shall not be
    claimed against the taxes imposed under subsections (a)
    and (b) of Section 201 of this Act.
 
    (35 ILCS 5/239 new)
    Sec. 239. MICRO Investment Tax credits.
    (a) For tax years beginning on or after January 1, 2025, a
taxpayer shall be allowed a credit against the tax imposed by
subsections (a) and (b) of Section 201 for investment in
qualified property which is placed in service at the site of a
project that is subject to an agreement between the taxpayer
and the Department of Commerce and Economic Opportunity
pursuant to the Manufacturing Illinois Chips for Real
Opportunity (MICRO) Act. If the taxpayer is a partnership or a
Subchapter S corporation, the credit shall be allowed to the
partners or shareholders 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. The
credit shall be 0.5% of the basis for such property. The credit
shall be available only in the taxable year in which the
property is placed in service and shall not be allowed to the
extent that it would reduce a taxpayer's liability for the tax
imposed by subsections (a) and (b) of Section 201 to below
zero. The credit shall be allowed for the tax year in which the
property is placed in service, or, if the amount of the credit
exceeds the tax liability for that year, whether it exceeds
the original liability or the liability as later amended, such
excess may be carried forward and applied to the tax liability
of the 5 taxable years following the excess credit year. The
credit shall be applied to the earliest year for which there is
a liability. If there is credit from more than one tax year
that is available to offset a liability, the credit accruing
first in time shall be applied first.
    (b) The term qualified property means property which:
        (1) is tangible, whether new or used, including
    buildings and structural components of buildings;
        (2) is depreciable pursuant to Section 167 of the
    Internal Revenue Code, except that "3-year property" as
    defined in Section 168(c)(2)(A) of that Code is not
    eligible for the credit provided by this Section;
        (3) is acquired by purchase as defined in Section
    179(d) of the Internal Revenue Code;
        (4) is used at the site of the MICRO Illinois project
    by the taxpayer; and
        (5) has not been previously used in Illinois in such a
    manner and by such a person as would qualify for the credit
    provided by this Section.
    (c) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal income
tax purposes.
    (d) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed in
service at the site of the project by the taxpayer, the amount
of such increase shall be deemed property placed in service on
the date of such increase in basis.
    (e) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
    (f) If during any taxable year, any property ceases to be
qualified property in the hands of the taxpayer within 48
months after being placed in service, or the situs of any
qualified property is moved from the project site within 48
months after being placed in service, the tax imposed under
subsections (a) and (b) of Section 201 for such taxable year
shall be increased. Such increase shall be determined by (i)
recomputing the investment credit which would have been
allowed for the year in which credit for such property was
originally allowed by eliminating such property from such
computation, and (ii) subtracting such recomputed credit from
the amount of credit previously allowed. For the purposes of
this subsection (f), a reduction of the basis of qualified
property resulting from a redetermination of the purchase
price shall be deemed a disposition of qualified property to
the extent of such reduction.
 
    (35 ILCS 5/704A)
    Sec. 704A. Employer's return and payment of tax withheld.
    (a) In general, every employer who deducts and withholds
or is required to deduct and withhold tax under this Act on or
after January 1, 2008 shall make those payments and returns as
provided in this Section.
    (b) Returns. Every employer shall, in the form and manner
required by the Department, make returns with respect to taxes
withheld or required to be withheld under this Article 7 for
each quarter beginning on or after January 1, 2008, on or
before the last day of the first month following the close of
that quarter.
    (c) Payments. With respect to amounts withheld or required
to be withheld on or after January 1, 2008:
        (1) Semi-weekly payments. For each calendar year, each
    employer who withheld or was required to withhold more
    than $12,000 during the one-year period ending on June 30
    of the immediately preceding calendar year, payment must
    be made:
            (A) on or before each Friday of the calendar year,
        for taxes withheld or required to be withheld on the
        immediately preceding Saturday, Sunday, Monday, or
        Tuesday;
            (B) on or before each Wednesday of the calendar
        year, for taxes withheld or required to be withheld on
        the immediately preceding Wednesday, Thursday, or
        Friday.
        Beginning with calendar year 2011, payments made under
    this paragraph (1) of subsection (c) must be made by
    electronic funds transfer.
        (2) Semi-weekly payments. Any employer who withholds
    or is required to withhold more than $12,000 in any
    quarter of a calendar year is required to make payments on
    the dates set forth under item (1) of this subsection (c)
    for each remaining quarter of that calendar year and for
    the subsequent calendar year.
        (3) Monthly payments. Each employer, other than an
    employer described in items (1) or (2) of this subsection,
    shall pay to the Department, on or before the 15th day of
    each month the taxes withheld or required to be withheld
    during the immediately preceding month.
        (4) Payments with returns. Each employer shall pay to
    the Department, on or before the due date for each return
    required to be filed under this Section, any tax withheld
    or required to be withheld during the period for which the
    return is due and not previously paid to the Department.
    (d) Regulatory authority. The Department may, by rule:
        (1) Permit employers, in lieu of the requirements of
    subsections (b) and (c), to file annual returns due on or
    before January 31 of the year for taxes withheld or
    required to be withheld during the previous calendar year
    and, if the aggregate amounts required to be withheld by
    the employer under this Article 7 (other than amounts
    required to be withheld under Section 709.5) do not exceed
    $1,000 for the previous calendar year, to pay the taxes
    required to be shown on each such return no later than the
    due date for such return.
        (2) Provide that any payment required to be made under
    subsection (c)(1) or (c)(2) is deemed to be timely to the
    extent paid by electronic funds transfer on or before the
    due date for deposit of federal income taxes withheld
    from, or federal employment taxes due with respect to, the
    wages from which the Illinois taxes were withheld.
        (3) Designate one or more depositories to which
    payment of taxes required to be withheld under this
    Article 7 must be paid by some or all employers.
        (4) Increase the threshold dollar amounts at which
    employers are required to make semi-weekly payments under
    subsection (c)(1) or (c)(2).
    (e) Annual return and payment. Every employer who deducts
and withholds or is required to deduct and withhold tax from a
person engaged in domestic service employment, as that term is
defined in Section 3510 of the Internal Revenue Code, may
comply with the requirements of this Section with respect to
such employees by filing an annual return and paying the taxes
required to be deducted and withheld on or before the 15th day
of the fourth month following the close of the employer's
taxable year. The Department may allow the employer's return
to be submitted with the employer's individual income tax
return or to be submitted with a return due from the employer
under Section 1400.2 of the Unemployment Insurance Act.
    (f) Magnetic media and electronic filing. With respect to
taxes withheld in calendar years prior to 2017, any W-2 Form
that, under the Internal Revenue Code and regulations
promulgated thereunder, is required to be submitted to the
Internal Revenue Service on magnetic media or electronically
must also be submitted to the Department on magnetic media or
electronically for Illinois purposes, if required by the
Department.
    With respect to taxes withheld in 2017 and subsequent
calendar years, the Department may, by rule, require that any
return (including any amended return) under this Section and
any W-2 Form that is required to be submitted to the Department
must be submitted on magnetic media or electronically.
    The due date for submitting W-2 Forms shall be as
prescribed by the Department by rule.
    (g) For amounts deducted or withheld after December 31,
2009, a taxpayer who makes an election under subsection (f) of
Section 5-15 of the Economic Development for a Growing Economy
Tax Credit Act for a taxable year shall be allowed a credit
against payments due under this Section for amounts withheld
during the first calendar year beginning after the end of that
taxable year equal to the amount of the credit for the
incremental income tax attributable to full-time employees of
the taxpayer awarded to the taxpayer by the Department of
Commerce and Economic Opportunity under the Economic
Development for a Growing Economy Tax Credit Act for the
taxable year and credits not previously claimed and allowed to
be carried forward under Section 211(4) of this Act as
provided in subsection (f) of Section 5-15 of the Economic
Development for a Growing Economy Tax Credit Act. The credit
or credits may not reduce the taxpayer's obligation for any
payment due under this Section to less than zero. If the amount
of the credit or credits exceeds the total payments due under
this Section with respect to amounts withheld during the
calendar year, the excess may be carried forward and applied
against the taxpayer's liability under this Section in the
succeeding calendar years as allowed to be carried forward
under paragraph (4) of Section 211 of this Act. The credit or
credits shall be applied to the earliest year for which there
is a tax liability. If there are credits from more than one
taxable year that are available to offset a liability, the
earlier credit shall be applied first. Each employer who
deducts and withholds or is required to deduct and withhold
tax under this Act and who retains income tax withholdings
under subsection (f) of Section 5-15 of the Economic
Development for a Growing Economy Tax Credit Act must make a
return with respect to such taxes and retained amounts in the
form and manner that the Department, by rule, requires and pay
to the Department or to a depositary designated by the
Department those withheld taxes not retained by the taxpayer.
For purposes of this subsection (g), the term taxpayer shall
include taxpayer and members of the taxpayer's unitary
business group as defined under paragraph (27) of subsection
(a) of Section 1501 of this Act. This Section is exempt from
the provisions of Section 250 of this Act. No credit awarded
under the Economic Development for a Growing Economy Tax
Credit Act for agreements entered into on or after January 1,
2015 may be credited against payments due under this Section.
    (g-1) For amounts deducted or withheld after December 31,
2024, a taxpayer who makes an election under the Reimagining
Electric Vehicles in Illinois Act shall be allowed a credit
against payments due under this Section for amounts withheld
during the first quarterly reporting period beginning after
the certificate is issued equal to the portion of the REV
Illinois Credit attributable to the incremental income tax
attributable to new employees and retained employees as
certified by the Department of Commerce and Economic
Opportunity pursuant to an agreement with the taxpayer under
the Reimagining Electric Vehicles in Illinois Act for the
taxable year. The credit or credits may not reduce the
taxpayer's obligation for any payment due under this Section
to less than zero. If the amount of the credit or credits
exceeds the total payments due under this Section with respect
to amounts withheld during the quarterly reporting period, the
excess may be carried forward and applied against the
taxpayer's liability under this Section in the succeeding
quarterly reporting period as allowed to be carried forward
under paragraph (4) of Section 211 of this Act. The credit or
credits shall be applied to the earliest quarterly reporting
period for which there is a tax liability. If there are credits
from more than one quarterly reporting period that are
available to offset a liability, the earlier credit shall be
applied first. Each employer who deducts and withholds or is
required to deduct and withhold tax under this Act and who
retains income tax withholdings this subsection must make a
return with respect to such taxes and retained amounts in the
form and manner that the Department, by rule, requires and pay
to the Department or to a depositary designated by the
Department those withheld taxes not retained by the taxpayer.
For purposes of this subsection (g-1), the term taxpayer shall
include taxpayer and members of the taxpayer's unitary
business group as defined under paragraph (27) of subsection
(a) of Section 1501 of this Act. This Section is exempt from
the provisions of Section 250 of this Act.
    (g-2) For amounts deducted or withheld after December 31,
2024, a taxpayer who makes an election under the Manufacturing
Illinois Chips for Real Opportunity (MICRO) Act shall be
allowed a credit against payments due under this Section for
amounts withheld during the first quarterly reporting period
beginning after the certificate is issued equal to the portion
of the MICRO Illinois Credit attributable to the incremental
income tax attributable to new employees and retained
employees as certified by the Department of Commerce and
Economic Opportunity pursuant to an agreement with the
taxpayer under the Manufacturing Illinois Chips for Real
Opportunity (MICRO) Act for the taxable year. The credit or
credits may not reduce the taxpayer's obligation for any
payment due under this Section to less than zero. If the amount
of the credit or credits exceeds the total payments due under
this Section with respect to amounts withheld during the
quarterly reporting period, the excess may be carried forward
and applied against the taxpayer's liability under this
Section in the succeeding quarterly reporting period as
allowed to be carried forward under paragraph (4) of Section
211 of this Act. The credit or credits shall be applied to the
earliest quarterly reporting period for which there is a tax
liability. If there are credits from more than one quarterly
reporting period that are available to offset a liability, the
earlier credit shall be applied first. Each employer who
deducts and withholds or is required to deduct and withhold
tax under this Act and who retains income tax withholdings
this subsection must make a return with respect to such taxes
and retained amounts in the form and manner that the
Department, by rule, requires and pay to the Department or to a
depositary designated by the Department those withheld taxes
not retained by the taxpayer. For purposes of this subsection,
the term taxpayer shall include taxpayer and members of the
taxpayer's unitary business group as defined under paragraph
(27) of subsection (a) of Section 1501 of this Act. This
Section is exempt from the provisions of Section 250 of this
Act.
    (h) An employer may claim a credit against payments due
under this Section for amounts withheld during the first
calendar year ending after the date on which a tax credit
certificate was issued under Section 35 of the Small Business
Job Creation Tax Credit Act. The credit shall be equal to the
amount shown on the certificate, but may not reduce the
taxpayer's obligation for any payment due under this Section
to less than zero. If the amount of the credit exceeds the
total payments due under this Section with respect to amounts
withheld during the calendar year, the excess may be carried
forward and applied against the taxpayer's liability under
this Section in the 5 succeeding calendar years. The credit
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one calendar
year that are available to offset a liability, the earlier
credit shall be applied first. This Section is exempt from the
provisions of Section 250 of this Act.
    (i) Each employer with 50 or fewer full-time equivalent
employees during the reporting period may claim a credit
against the payments due under this Section for each qualified
employee in an amount equal to the maximum credit allowable.
The credit may be taken against payments due for reporting
periods that begin on or after January 1, 2020, and end on or
before December 31, 2027. An employer may not claim a credit
for an employee who has worked fewer than 90 consecutive days
immediately preceding the reporting period; however, such
credits may accrue during that 90-day period and be claimed
against payments under this Section for future reporting
periods after the employee has worked for the employer at
least 90 consecutive days. In no event may the credit exceed
the employer's liability for the reporting period. Each
employer who deducts and withholds or is required to deduct
and withhold tax under this Act and who retains income tax
withholdings under this subsection must make a return with
respect to such taxes and retained amounts in the form and
manner that the Department, by rule, requires and pay to the
Department or to a depositary designated by the Department
those withheld taxes not retained by the employer.
    For each reporting period, the employer may not claim a
credit or credits for more employees than the number of
employees making less than the minimum or reduced wage for the
current calendar year during the last reporting period of the
preceding calendar year. Notwithstanding any other provision
of this subsection, an employer shall not be eligible for
credits for a reporting period unless the average wage paid by
the employer per employee for all employees making less than
$55,000 during the reporting period is greater than the
average wage paid by the employer per employee for all
employees making less than $55,000 during the same reporting
period of the prior calendar year.
    For purposes of this subsection (i):
    "Compensation paid in Illinois" has the meaning ascribed
to that term under Section 304(a)(2)(B) of this Act.
    "Employer" and "employee" have the meaning ascribed to
those terms in the Minimum Wage Law, except that "employee"
also includes employees who work for an employer with fewer
than 4 employees. Employers that operate more than one
establishment pursuant to a franchise agreement or that
constitute members of a unitary business group shall aggregate
their employees for purposes of determining eligibility for
the credit.
    "Full-time equivalent employees" means the ratio of the
number of paid hours during the reporting period and the
number of working hours in that period.
    "Maximum credit" means the percentage listed below of the
difference between the amount of compensation paid in Illinois
to employees who are paid not more than the required minimum
wage reduced by the amount of compensation paid in Illinois to
employees who were paid less than the current required minimum
wage during the reporting period prior to each increase in the
required minimum wage on January 1. If an employer pays an
employee more than the required minimum wage and that employee
previously earned less than the required minimum wage, the
employer may include the portion that does not exceed the
required minimum wage as compensation paid in Illinois to
employees who are paid not more than the required minimum
wage.
        (1) 25% for reporting periods beginning on or after
    January 1, 2020 and ending on or before December 31, 2020;
        (2) 21% for reporting periods beginning on or after
    January 1, 2021 and ending on or before December 31, 2021;
        (3) 17% for reporting periods beginning on or after
    January 1, 2022 and ending on or before December 31, 2022;
        (4) 13% for reporting periods beginning on or after
    January 1, 2023 and ending on or before December 31, 2023;
        (5) 9% for reporting periods beginning on or after
    January 1, 2024 and ending on or before December 31, 2024;
        (6) 5% for reporting periods beginning on or after
    January 1, 2025 and ending on or before December 31, 2025.
    The amount computed under this subsection may continue to
be claimed for reporting periods beginning on or after January
1, 2026 and:
        (A) ending on or before December 31, 2026 for
    employers with more than 5 employees; or
        (B) ending on or before December 31, 2027 for
    employers with no more than 5 employees.
    "Qualified employee" means an employee who is paid not
more than the required minimum wage and has an average wage
paid per hour by the employer during the reporting period
equal to or greater than his or her average wage paid per hour
by the employer during each reporting period for the
immediately preceding 12 months. A new qualified employee is
deemed to have earned the required minimum wage in the
preceding reporting period.
    "Reporting period" means the quarter for which a return is
required to be filed under subsection (b) of this Section.
(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21.)
 
    Section 110-907. The Use Tax Act is amended by changing
Section 12 as follows:
 
    (35 ILCS 105/12)  (from Ch. 120, par. 439.12)
    Sec. 12. Applicability of Retailers' Occupation Tax Act
and Uniform Penalty and Interest Act. All of the provisions of
Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation
provisions shall run from the date when the tax is due rather
than from the date when gross receipts are received), 5
(except that the time limitation provisions on the issuance of
notices of tax liability shall run from the date when the tax
is due rather than from the date when gross receipts are
received and except that in the case of a failure to file a
return required by this Act, no notice of tax liability shall
be issued on and after each July 1 and January 1 covering tax
due with that return during any month or period more than 6
years before that July 1 or January 1, respectively), 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5n, 7, 8, 9, 10, 11 and 12
of the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, which are not inconsistent
with this Act, shall apply, as far as practicable, to the
subject matter of this Act to the same extent as if such
provisions were included herein.
(Source: P.A. 98-1098, eff. 8-26-14.)
 
    Section 110-908. The Service Use Tax Act is amended by
changing Section 12 as follows:
 
    (35 ILCS 110/12)  (from Ch. 120, par. 439.42)
    Sec. 12. Applicability of Retailers' Occupation Tax Act
and Uniform Penalty and Interest Act. All of the provisions of
Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
2-54, 2a, 2b, 2c, 3 (except as to the disposition by the
Department of the money collected under this Act), 4 (except
that the time limitation provisions shall run from the date
when gross receipts are received), 5 (except that the time
limitation provisions on the issuance of notices of tax
liability shall run from the date when the tax is due rather
than from the date when gross receipts are received and except
that in the case of a failure to file a return required by this
Act, no notice of tax liability shall be issued on and after
July 1 and January 1 covering tax due with that return during
any month or period more than 6 years before that July 1 or
January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k,
5l, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers' Occupation
Tax Act which are not inconsistent with this Act, and Section
3-7 of the Uniform Penalty and Interest Act, shall apply, as
far as practicable, to the subject matter of this Act to the
same extent as if such provisions were included herein.
(Source: P.A. 98-1098, eff. 8-26-14; 99-217, eff. 7-31-15.)
 
    Section 110-909. The Service Occupation Tax Act is amended
by changing Section 12 as follows:
 
    (35 ILCS 115/12)  (from Ch. 120, par. 439.112)
    Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i,
1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, 2-54, 2a, 2b, 2c, 3
(except as to the disposition by the Department of the tax
collected under this Act), 4 (except that the time limitation
provisions shall run from the date when the tax is due rather
than from the date when gross receipts are received), 5
(except that the time limitation provisions on the issuance of
notices of tax liability shall run from the date when the tax
is due rather than from the date when gross receipts are
received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5n, 6d, 7,
8, 9, 10, 11 and 12 of the "Retailers' Occupation Tax Act"
which are not inconsistent with this Act, and Section 3-7 of
the Uniform Penalty and Interest Act shall apply, as far as
practicable, to the subject matter of this Act to the same
extent as if such provisions were included herein.
(Source: P.A. 98-1098, eff. 8-26-14; 99-217, eff. 7-31-15.)
 
    Section 110-910. The Retailers' Occupation Tax Act is
amended by adding Section 5n as follows:
 
    (35 ILCS 120/5n new)
    Sec. 5n. Building materials exemption; microchip and
semiconductor manufacturing. Each retailer who makes a sale of
building materials that will be incorporated into real estate
in a qualified facility for which a certificate of exemption
has been issued by the Department of Commerce and Economic
Opportunity under Section 110-105 of the Manufacturing
Illinois Chips for Real Opportunity (MICRO) Act, may deduct
receipts from such sales when calculating any State or local
use and occupation taxes. No retailer who is eligible for the
deduction or credit under Section 5k of this Act related to
enterprise zones or Section 5l of this Act related to High
Impact Businesses for a given sale shall be eligible for the
deduction or credit authorized under this Section for that
same sale.
    In addition to any other requirements to document the
exemption allowed under this Section, the retailer must obtain
the purchaser's exemption certificate number issued by the
Department. A construction contractor or other entity shall
not make tax-free purchases unless it has an active exemption
certificate issued by the Department at the time of purchase.
    Upon request from a person that has been certified by the
Department of Commerce and Economic Opportunity under the
Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
the Department shall issue a MICRO Illinois Building Materials
Exemption Certificate for each construction contractor or
other entity identified by the person so certified. The
Department shall make the MICRO Illinois Building Materials
Exemption Certificates available to each construction
contractor or other entity as well as the person certified
under the Manufacturing Illinois Chips for Real Opportunity
(MICRO) Act. The request for MICRO Illinois Building Materials
Exemption Certificates must include the following information:
        (1) the name and address of the construction
    contractor or other entity;
        (2) the name and location or address of the building
    project site;
        (3) the estimated amount of the exemption for each
    construction contractor or other entity for which a
    request for an exemption certificate is made, based on a
    stated estimated average tax rate and the percentage of
    the contract that consists of materials;
        (4) the period of time over which supplies for the
    project are expected to be purchased; and
        (5) other reasonable information as the Department may
    require, including but not limited to FEIN numbers, to
    determine if the contractor or other entity, or any
    partner, or a corporate officer, and in the case of a
    limited liability company, any manager or member, of the
    construction contractor or other entity, is or has been
    the owner, a partner, a corporate officer, and in the case
    of a limited liability company, a manager or member, of a
    person that is in default for moneys due to the Department
    under this Act or any other tax or fee Act administered by
    the Department.
    The Department shall issue the exemption certificate
within 3 business days after receipt of request. This
requirement does not apply in circumstances where the
Department, for reasonable cause, is unable to issue the
exemption certificate within 3 business days. The Department
may refuse to issue an exemption certificate under this
Section if the owner, any partner, or a corporate officer, and
in the case of a limited liability company, any manager or
member, of the construction contractor or other entity is or
has been the owner, a partner, a corporate officer, and in the
case of a limited liability company, a manager or member, of a
person that is in default for moneys due to the Department
under this Act or any other tax or fee Act administered by the
Department.
    The MICRO Illinois Building Materials Exemption
Certificate shall contain language stating that, if the
construction contractor or other entity who is issued the
exemption certificate makes a tax-exempt purchase, as
described in this Section, that is not eligible for exemption
under this Section or allows another person to make a
tax-exempt purchase, as described in this Section, that is not
eligible for exemption under this Section, then, in addition
to any tax or other penalty imposed, the construction
contractor or other entity is subject to a penalty equal to the
tax that would have been paid by the retailer under this Act as
well as any applicable local retailers' occupation tax on the
purchase that is not eligible for the exemption.
    The Department, in its discretion, may require that the
request for a MICRO Illinois Exemption Certificate be
submitted electronically. The Department may, in its
discretion, issue the exemption certificates electronically.
The MICRO Illinois Building Materials Exemption Certificate
number shall be designed in such a way that the Department can
identify from the unique number on the exemption certificate
issued to a given construction contractor or other entity, the
name of the entity to whom the exemption certificate is
issued. The MICRO Illinois Building Materials Exemption
Certificate shall contain an expiration date, which shall be
no more than 5 years after the date of issuance. At the request
of the entity to whom the exemption certificate is issued, the
Department may renew an exemption certificate issued under
this Section. After the Department issues exemption
certificates under this Section, the certified entity may
notify the Department of additional construction contractors
or other entities eligible for an exemption certificate under
this Section. Upon such a notification and subject to the
other provisions of this Section, the Department shall issue
an exemption certificate to each additional qualified
construction contractor or other entity so identified. A
certified entity may notify the Department to rescind an
exemption certificate previously issued by the Department that
has not yet expired. Upon such a notification and subject to
the other provisions of this Section, the Department shall
rescind the exemption certificate.
    If the Department of Revenue determines that a
construction contractor or other entity that was issued an
exemption certificate under this Section made a tax-exempt
purchase, as described in this Section, that was not eligible
for exemption under this Section or allowed another person to
make a tax-exempt purchase, as described in this Section, that
was not eligible for exemption under this Section, then, in
addition to any tax or other penalty imposed, the construction
contractor or other entity is subject to a penalty equal to the
tax that would have been paid by the retailer under this Act as
well as any applicable local retailers' occupation tax on the
purchase that was not eligible for the exemption.
    This Section is exempt from the provisions of Section
2-70.
 
    Section 110-915. The Property Tax Code is amended by
adding Section 18-184.20 as follows:
 
    (35 ILCS 200/18-184.20 new)
    Sec. 18-184.20. MICRO Illinois project facilities. Any
taxing district, upon a majority vote of its governing body,
may, after determination of the assessed value as set forth in
this Code, order the clerk of the appropriate municipality or
county to abate any portion of real property taxes otherwise
levied or extended by the taxing district on a MICRO Illinois
Project facility owned by a semiconductor manufacturer or
microchip manufacturer or a semiconductor or microchip
component parts manufacturer that is subject to an agreement
with the Department of Commerce and Economic Opportunity under
the Manufacturing Illinois Chips for Real Opportunity (MICRO)
Act, during the period of time such agreement is in effect as
specified by the Department of Commerce and Economic
Opportunity.
 
    Section 110-920. The Telecommunications Excise Tax Act is
amended by changing Section 2 as follows:
 
    (35 ILCS 630/2)  (from Ch. 120, par. 2002)
    Sec. 2. As used in this Article, unless the context
clearly requires otherwise:
    (a) "Gross charge" means the amount paid for the act or
privilege of originating or receiving telecommunications in
this State and for all services and equipment provided in
connection therewith by a retailer, valued in money whether
paid in money or otherwise, including cash, credits, services
and property of every kind or nature, and shall be determined
without any deduction on account of the cost of such
telecommunications, the cost of materials used, labor or
service costs or any other expense whatsoever. In case credit
is extended, the amount thereof shall be included only as and
when paid. "Gross charges" for private line service shall
include charges imposed at each channel termination point
within this State, charges for the channel mileage between
each channel termination point within this State, and charges
for that portion of the interstate inter-office channel
provided within Illinois. Charges for that portion of the
interstate inter-office channel provided in Illinois shall be
determined by the retailer as follows: (i) for interstate
inter-office channels having 2 channel termination points,
only one of which is in Illinois, 50% of the total charge
imposed; or (ii) for interstate inter-office channels having
more than 2 channel termination points, one or more of which
are in Illinois, an amount equal to the total charge
multiplied by a fraction, the numerator of which is the number
of channel termination points within Illinois and the
denominator of which is the total number of channel
termination points. Prior to January 1, 2004, any method
consistent with this paragraph or other method that reasonably
apportions the total charges for interstate inter-office
channels among the states in which channel terminations points
are located shall be accepted as a reasonable method to
determine the charges for that portion of the interstate
inter-office channel provided within Illinois for that period.
However, "gross charges" shall not include any of the
following:
        (1) Any amounts added to a purchaser's bill because of
    a charge made pursuant to (i) the tax imposed by this
    Article; (ii) charges added to customers' bills pursuant
    to the provisions of Sections 9-221 or 9-222 of the Public
    Utilities Act, as amended, or any similar charges added to
    customers' bills by retailers who are not subject to rate
    regulation by the Illinois Commerce Commission for the
    purpose of recovering any of the tax liabilities or other
    amounts specified in such provisions of such Act; (iii)
    the tax imposed by Section 4251 of the Internal Revenue
    Code; (iv) 911 surcharges; or (v) the tax imposed by the
    Simplified Municipal Telecommunications Tax Act.
        (2) Charges for a sent collect telecommunication
    received outside of the State.
        (3) Charges for leased time on equipment or charges
    for the storage of data or information for subsequent
    retrieval or the processing of data or information
    intended to change its form or content. Such equipment
    includes, but is not limited to, the use of calculators,
    computers, data processing equipment, tabulating equipment
    or accounting equipment and also includes the usage of
    computers under a time-sharing agreement.
        (4) Charges for customer equipment, including such
    equipment that is leased or rented by the customer from
    any source, wherein such charges are disaggregated and
    separately identified from other charges.
        (5) Charges to business enterprises certified under
    Section 9-222.1 of the Public Utilities Act, as amended,
    or to electric vehicle manufacturers, electric vehicle
    component parts manufacturers, or electric vehicle power
    supply manufacturers at REV Illinois Project sites for
    which a certificate of exemption has been issued by the
    Department of Commerce and Economic Opportunity under
    Section 95 of the Reimagining Electric Vehicles in
    Illinois Act, to the extent of such exemption and during
    the period of time specified by the Department of Commerce
    and Economic Opportunity.
        (5.1) Charges to business enterprises certified under
    the Manufacturing Illinois Chips for Real Opportunity
    (MICRO) Act.
        (6) Charges for telecommunications and all services
    and equipment provided in connection therewith between a
    parent corporation and its wholly owned subsidiaries or
    between wholly owned subsidiaries when the tax imposed
    under this Article has already been paid to a retailer and
    only to the extent that the charges between the parent
    corporation and wholly owned subsidiaries or between
    wholly owned subsidiaries represent expense allocation
    between the corporations and not the generation of profit
    for the corporation rendering such service.
        (7) Bad debts. Bad debt means any portion of a debt
    that is related to a sale at retail for which gross charges
    are not otherwise deductible or excludable that has become
    worthless or uncollectable, as determined under applicable
    federal income tax standards. If the portion of the debt
    deemed to be bad is subsequently paid, the retailer shall
    report and pay the tax on that portion during the
    reporting period in which the payment is made.
        (8) Charges paid by inserting coins in coin-operated
    telecommunication devices.
        (9) Amounts paid by telecommunications retailers under
    the Telecommunications Municipal Infrastructure
    Maintenance Fee Act.
        (10) Charges for nontaxable services or
    telecommunications if (i) those charges are aggregated
    with other charges for telecommunications that are
    taxable, (ii) those charges are not separately stated on
    the customer bill or invoice, and (iii) the retailer can
    reasonably identify the nontaxable charges on the
    retailer's books and records kept in the regular course of
    business. If the nontaxable charges cannot reasonably be
    identified, the gross charge from the sale of both taxable
    and nontaxable services or telecommunications billed on a
    combined basis shall be attributed to the taxable services
    or telecommunications. The burden of proving nontaxable
    charges shall be on the retailer of the
    telecommunications.
    (b) "Amount paid" means the amount charged to the
taxpayer's service address in this State regardless of where
such amount is billed or paid.
    (c) "Telecommunications", in addition to the meaning
ordinarily and popularly ascribed to it, includes, without
limitation, messages or information transmitted through use of
local, toll and wide area telephone service; private line
services; channel services; telegraph services;
teletypewriter; computer exchange services; cellular mobile
telecommunications service; specialized mobile radio;
stationary two way radio; paging service; or any other form of
mobile and portable one-way or two-way communications; or any
other transmission of messages or information by electronic or
similar means, between or among points by wire, cable,
fiber-optics, laser, microwave, radio, satellite or similar
facilities. As used in this Act, "private line" means a
dedicated non-traffic sensitive service for a single customer,
that entitles the customer to exclusive or priority use of a
communications channel or group of channels, from one or more
specified locations to one or more other specified locations.
The definition of "telecommunications" shall not include value
added services in which computer processing applications are
used to act on the form, content, code and protocol of the
information for purposes other than transmission.
"Telecommunications" shall not include purchases of
telecommunications by a telecommunications service provider
for use as a component part of the service provided by him to
the ultimate retail consumer who originates or terminates the
taxable end-to-end communications. Carrier access charges,
right of access charges, charges for use of inter-company
facilities, and all telecommunications resold in the
subsequent provision of, used as a component of, or integrated
into end-to-end telecommunications service shall be
non-taxable as sales for resale.
    (d) "Interstate telecommunications" means all
telecommunications that either originate or terminate outside
this State.
    (e) "Intrastate telecommunications" means all
telecommunications that originate and terminate within this
State.
    (f) "Department" means the Department of Revenue of the
State of Illinois.
    (g) "Director" means the Director of Revenue for the
Department of Revenue of the State of Illinois.
    (h) "Taxpayer" means a person who individually or through
his agents, employees or permittees engages in the act or
privilege of originating or receiving telecommunications in
this State and who incurs a tax liability under this Article.
    (i) "Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian or other representative appointed
by order of any court, the Federal and State governments,
including State universities created by statute or any city,
town, county or other political subdivision of this State.
    (j) "Purchase at retail" means the acquisition,
consumption or use of telecommunication through a sale at
retail.
    (k) "Sale at retail" means the transmitting, supplying or
furnishing of telecommunications and all services and
equipment provided in connection therewith for a consideration
to persons other than the Federal and State governments, and
State universities created by statute and other than between a
parent corporation and its wholly owned subsidiaries or
between wholly owned subsidiaries for their use or consumption
and not for resale.
    (l) "Retailer" means and includes every person engaged in
the business of making sales at retail as defined in this
Article. The Department may, in its discretion, upon
application, authorize the collection of the tax hereby
imposed by any retailer not maintaining a place of business
within this State, who, to the satisfaction of the Department,
furnishes adequate security to insure collection and payment
of the tax. Such retailer shall be issued, without charge, a
permit to collect such tax. When so authorized, it shall be the
duty of such retailer to collect the tax upon all of the gross
charges for telecommunications in this State in the same
manner and subject to the same requirements as a retailer
maintaining a place of business within this State. The permit
may be revoked by the Department at its discretion.
    (m) "Retailer maintaining a place of business in this
State", or any like term, means and includes any retailer
having or maintaining within this State, directly or by a
subsidiary, an office, distribution facilities, transmission
facilities, sales office, warehouse or other place of
business, or any agent or other representative operating
within this State under the authority of the retailer or its
subsidiary, irrespective of whether such place of business or
agent or other representative is located here permanently or
temporarily, or whether such retailer or subsidiary is
licensed to do business in this State.
    (n) "Service address" means the location of
telecommunications equipment from which the telecommunications
services are originated or at which telecommunications
services are received by a taxpayer. In the event this may not
be a defined location, as in the case of mobile phones, paging
systems, maritime systems, service address means the
customer's place of primary use as defined in the Mobile
Telecommunications Sourcing Conformity Act. For air-to-ground
systems and the like, service address shall mean the location
of a taxpayer's primary use of the telecommunications
equipment as defined by telephone number, authorization code,
or location in Illinois where bills are sent.
    (o) "Prepaid telephone calling arrangements" mean the
right to exclusively purchase telephone or telecommunications
services that must be paid for in advance and enable the
origination of one or more intrastate, interstate, or
international telephone calls or other telecommunications
using an access number, an authorization code, or both,
whether manually or electronically dialed, for which payment
to a retailer must be made in advance, provided that, unless
recharged, no further service is provided once that prepaid
amount of service has been consumed. Prepaid telephone calling
arrangements include the recharge of a prepaid calling
arrangement. For purposes of this subsection, "recharge" means
the purchase of additional prepaid telephone or
telecommunications services whether or not the purchaser
acquires a different access number or authorization code.
"Prepaid telephone calling arrangement" does not include an
arrangement whereby a customer purchases a payment card and
pursuant to which the service provider reflects the amount of
such purchase as a credit on an invoice issued to that customer
under an existing subscription plan.
(Source: P.A. 102-669, eff. 11-16-21.)
 
    Section 110-925. The Electricity Excise Tax Law is amended
by changing Section 2-4 as follows:
 
    (35 ILCS 640/2-4)
    Sec. 2-4. Tax imposed.
    (a) Except as provided in subsection (b), a tax is imposed
on the privilege of using in this State electricity purchased
for use or consumption and not for resale, other than by
municipal corporations owning and operating a local
transportation system for public service, at the following
rates per kilowatt-hour delivered to the purchaser:
        (i) For the first 2000 kilowatt-hours used or consumed
    in a month: 0.330 cents per kilowatt-hour;
        (ii) For the next 48,000 kilowatt-hours used or
    consumed in a month: 0.319 cents per kilowatt-hour;
        (iii) For the next 50,000 kilowatt-hours used or
    consumed in a month: 0.303 cents per kilowatt-hour;
        (iv) For the next 400,000 kilowatt-hours used or
    consumed in a month: 0.297 cents per kilowatt-hour;
        (v) For the next 500,000 kilowatt-hours used or
    consumed in a month: 0.286 cents per kilowatt-hour;
        (vi) For the next 2,000,000 kilowatt-hours used or
    consumed in a month: 0.270 cents per kilowatt-hour;
        (vii) For the next 2,000,000 kilowatt-hours used or
    consumed in a month: 0.254 cents per kilowatt-hour;
        (viii) For the next 5,000,000 kilowatt-hours used or
    consumed in a month: 0.233 cents per kilowatt-hour;
        (ix) For the next 10,000,000 kilowatt-hours used or
    consumed in a month: 0.207 cents per kilowatt-hour;
        (x) For all electricity in excess of 20,000,000
    kilowatt-hours used or consumed in a month: 0.202 cents
    per kilowatt-hour.
    Provided, that in lieu of the foregoing rates, the tax is
imposed on a self-assessing purchaser at the rate of 5.1% of
the self-assessing purchaser's purchase price for all
electricity distributed, supplied, furnished, sold,
transmitted and delivered to the self-assessing purchaser in a
month.
    (b) A tax is imposed on the privilege of using in this
State electricity purchased from a municipal system or
electric cooperative, as defined in Article XVII of the Public
Utilities Act, which has not made an election as permitted by
either Section 17-200 or Section 17-300 of such Act, at the
lesser of 0.32 cents per kilowatt hour of all electricity
distributed, supplied, furnished, sold, transmitted, and
delivered by such municipal system or electric cooperative to
the purchaser or 5% of each such purchaser's purchase price
for all electricity distributed, supplied, furnished, sold,
transmitted, and delivered by such municipal system or
electric cooperative to the purchaser, whichever is the lower
rate as applied to each purchaser in each billing period.
    (c) The tax imposed by this Section 2-4 is not imposed with
respect to any use of electricity by business enterprises
certified under Section 9-222.1 or 9-222.1A of the Public
Utilities Act, as amended, to the extent of such exemption and
during the time specified by the Department of Commerce and
Economic Opportunity; or with respect to any transaction in
interstate commerce, or otherwise, to the extent to which such
transaction may not, under the Constitution and statutes of
the United States, be made the subject of taxation by this
State.
    (d) The tax imposed by this Section 2-4 is not imposed with
respect to any use of electricity at a REV Illinois Project
site that has received a certification for tax exemption from
the Department of Commerce and Economic Opportunity pursuant
to Section 95 of the Reimagining Electric Vehicles in Illinois
Act, to the extent of such exemption, which shall be no more
than 10 years.
    (e) The tax imposed by this Section 2-4 is not imposed with
respect to any use of electricity at a project site that has
received a certification for tax exemption from the Department
of Commerce and Economic Opportunity pursuant to the
Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
to the extent of such exemption, which shall be no more than 10
years.
(Source: P.A. 102-669, eff. 11-16-21.)
 
    Section 110-930. The Public Utilities Act is amended by
changing Section 9-222 as follows:
 
    (220 ILCS 5/9-222)  (from Ch. 111 2/3, par. 9-222)
    Sec. 9-222. Whenever a tax is imposed upon a public
utility engaged in the business of distributing, supplying,
furnishing, or selling gas for use or consumption pursuant to
Section 2 of the Gas Revenue Tax Act, or whenever a tax is
required to be collected by a delivering supplier pursuant to
Section 2-7 of the Electricity Excise Tax Act, or whenever a
tax is imposed upon a public utility pursuant to Section 2-202
of this Act, such utility may charge its customers, other than
customers who are high impact businesses under Section 5.5 of
the Illinois Enterprise Zone Act, electric vehicle
manufacturers, electric vehicle component parts manufacturers,
or electric vehicle power supply equipment manufacturers at
REV Illinois Project sites as certified under Section 95 of
the Reimagining Electric Vehicles in Illinois Act,
manufacturers under the Manufacturing Illinois Chips for Real
Opportunity (MICRO) Act, or certified business enterprises
under Section 9-222.1 of this Act, to the extent of such
exemption and during the period in which such exemption is in
effect, in addition to any rate authorized by this Act, an
additional charge equal to the total amount of such taxes. The
exemption of this Section relating to high impact businesses
shall be subject to the provisions of subsections (a), (b),
and (b-5) of Section 5.5 of the Illinois Enterprise Zone Act.
This requirement shall not apply to taxes on invested capital
imposed pursuant to the Messages Tax Act, the Gas Revenue Tax
Act and the Public Utilities Revenue Act. Such utility shall
file with the Commission a supplemental schedule which shall
specify such additional charge and which shall become
effective upon filing without further notice. Such additional
charge shall be shown separately on the utility bill to each
customer. The Commission shall have the power to investigate
whether or not such supplemental schedule correctly specifies
such additional charge, but shall have no power to suspend
such supplemental schedule. If the Commission finds, after a
hearing, that such supplemental schedule does not correctly
specify such additional charge, it shall by order require a
refund to the appropriate customers of the excess, if any,
with interest, in such manner as it shall deem just and
reasonable, and in and by such order shall require the utility
to file an amended supplemental schedule corresponding to the
finding and order of the Commission. Except with respect to
taxes imposed on invested capital, such tax liabilities shall
be recovered from customers solely by means of the additional
charges authorized by this Section.
(Source: P.A. 102-669, eff. 11-16-21.)
 
ARTICLE 999. EFFECTIVE DATE

 
    Section 999-99. Effective date. This Act takes effect upon
becoming law, except that Article 100 takes effect on July 1,
2023.