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HB2755 Enrolled LRB104 08253 BDA 18303 b
1 AN ACT concerning government.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 ARTICLE 5
5 Section 5-5. The Tax Delinquency Amnesty Act is amended by
6 changing Section 10 as follows:
7 (35 ILCS 745/10)
8 Sec. 10. Amnesty program. The Department shall establish
9 an amnesty program for all taxpayers owing any tax imposed by
10 reason of or pursuant to authorization by any law of the State
11 of Illinois and collected by the Department.
12 The amnesty program shall be for a period from October 1,
13 2003 through November 15, 2003, and for a period beginning on
14 October 1, 2010 and ending November 8, 2010, and for a period
15 beginning on October 1, 2019 and ending on November 15, 2019,
16 and for a period from October 1, 2025 through November 15,
17 2025.
18 The amnesty program shall provide that, upon payment by a
19 taxpayer of all taxes due from that taxpayer to the State of
20 Illinois for any taxable period ending (i) after June 30, 1983
21 and prior to July 1, 2002 for the tax amnesty period occurring
22 from October 1, 2003 through November 15, 2003, (ii) after
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1 June 30, 2002 and prior to July 1, 2009 for the tax amnesty
2 period beginning on October 1, 2010 through November 8, 2010,
3 and (iii) after June 30, 2011 and prior to July 1, 2018 for the
4 tax amnesty period beginning on October 1, 2019 through
5 November 15, 2019, and (iv) after June 30, 2018 and before July
6 1, 2024 for the tax amnesty period beginning on October 1, 2025
7 through November 17, 2025, the Department shall abate and not
8 seek to collect any interest or penalties that may be
9 applicable and the Department shall not seek civil or criminal
10 prosecution for any taxpayer for the period of time for which
11 amnesty has been granted to the taxpayer. Failure to pay all
12 taxes due to the State for a taxable period shall invalidate
13 any amnesty granted under this Act. Amnesty shall be granted
14 only if all amnesty conditions are satisfied by the taxpayer.
15 Amnesty shall not be granted to taxpayers who are a party
16 to any criminal investigation or to any civil or criminal
17 litigation that is pending in any circuit court or appellate
18 court or the Supreme Court of this State for nonpayment,
19 delinquency, or fraud in relation to any State tax imposed by
20 any law of the State of Illinois.
21 Participation in an amnesty program shall not preclude a
22 taxpayer from claiming a refund for an overpayment of tax on an
23 issue unrelated to the issues for which the taxpayer claimed
24 amnesty or for an overpayment of tax by taxpayers estimating a
25 non-final liability for the amnesty program pursuant to
26 Section 506(b) of the Illinois Income Tax Act (35 ILCS
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1 5/506(b)).
2 Voluntary payments made under this Act shall be made by
3 cash, check, guaranteed remittance, or ACH debit.
4 The Department shall adopt rules as necessary to implement
5 the provisions of this Act.
6 Except as otherwise provided in this Section, all money
7 collected under this Act that would otherwise be deposited
8 into the General Revenue Fund shall be deposited as follows:
9 (i) one-half into the Common School Fund; (ii) one-half into
10 the General Revenue Fund. Two percent of all money collected
11 under this Act shall be deposited by the State Treasurer into
12 the Tax Compliance and Administration Fund and, subject to
13 appropriation, shall be used by the Department to cover costs
14 associated with the administration of this Act.
15 (Source: P.A. 101-9, eff. 6-5-19.)
16 Section 5-10. The Use Tax Act is amended by changing
17 Section 9 as follows:
18 (35 ILCS 105/9)
19 Sec. 9. Except as to motor vehicles, watercraft, aircraft,
20 and trailers that are required to be registered with an agency
21 of this State, each retailer required or authorized to collect
22 the tax imposed by this Act shall pay to the Department the
23 amount of such tax (except as otherwise provided) at the time
24 when he is required to file his return for the period during
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1 which such tax was collected, less a discount of 2.1% prior to
2 January 1, 1990, and 1.75% on and after January 1, 1990, or $5
3 per calendar year, whichever is greater, which is allowed to
4 reimburse the retailer for expenses incurred in collecting the
5 tax, keeping records, preparing and filing returns, remitting
6 the tax and supplying data to the Department on request.
7 Beginning with returns due on or after January 1, 2025, the
8 discount allowed in this Section, the Retailers' Occupation
9 Tax Act, the Service Occupation Tax Act, and the Service Use
10 Tax Act, including any local tax administered by the
11 Department and reported on the same return, shall not exceed
12 $1,000 per month in the aggregate for returns other than
13 transaction returns filed during the month. When determining
14 the discount allowed under this Section, retailers shall
15 include the amount of tax that would have been due at the 6.25%
16 rate but for the 1.25% rate imposed on sales tax holiday items
17 under Public Act 102-700. The discount under this Section is
18 not allowed for the 1.25% portion of taxes paid on aviation
19 fuel that is subject to the revenue use requirements of 49
20 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining the
21 discount allowed under this Section, retailers shall include
22 the amount of tax that would have been due at the 1% rate but
23 for the 0% rate imposed under Public Act 102-700. In the case
24 of retailers who report and pay the tax on a transaction by
25 transaction basis, as provided in this Section, such discount
26 shall be taken with each such tax remittance instead of when
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1 such retailer files his periodic return, but, beginning with
2 returns due on or after January 1, 2025, the discount allowed
3 under this Section and the Retailers' Occupation Tax Act,
4 including any local tax administered by the Department and
5 reported on the same transaction return, shall not exceed
6 $1,000 per month for all transaction returns filed during the
7 month. The discount allowed under this Section is allowed only
8 for returns that are filed in the manner required by this Act.
9 The Department may disallow the discount for retailers whose
10 certificate of registration is revoked at the time the return
11 is filed, but only if the Department's decision to revoke the
12 certificate of registration has become final. A retailer need
13 not remit that part of any tax collected by him to the extent
14 that he is required to remit and does remit the tax imposed by
15 the Retailers' Occupation Tax Act, with respect to the sale of
16 the same property.
17 Where such tangible personal property is sold under a
18 conditional sales contract, or under any other form of sale
19 wherein the payment of the principal sum, or a part thereof, is
20 extended beyond the close of the period for which the return is
21 filed, the retailer, in collecting the tax (except as to motor
22 vehicles, watercraft, aircraft, and trailers that are required
23 to be registered with an agency of this State), may collect for
24 each tax return period only the tax applicable to that part of
25 the selling price actually received during such tax return
26 period.
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1 In the case of leases, except as otherwise provided in
2 this Act, the lessor, in collecting the tax, may collect for
3 each tax return period only the tax applicable to that part of
4 the selling price actually received during such tax return
5 period.
6 Except as provided in this Section, on or before the
7 twentieth day of each calendar month, such retailer shall file
8 a return for the preceding calendar month. Such return shall
9 be filed on forms prescribed by the Department and shall
10 furnish such information as the Department may reasonably
11 require. The return shall include the gross receipts on food
12 for human consumption that is to be consumed off the premises
13 where it is sold (other than alcoholic beverages, food
14 consisting of or infused with adult use cannabis, soft drinks,
15 and food that has been prepared for immediate consumption)
16 which were received during the preceding calendar month,
17 quarter, or year, as appropriate, and upon which tax would
18 have been due but for the 0% rate imposed under Public Act
19 102-700. The return shall also include the amount of tax that
20 would have been due on food for human consumption that is to be
21 consumed off the premises where it is sold (other than
22 alcoholic beverages, food consisting of or infused with adult
23 use cannabis, soft drinks, and food that has been prepared for
24 immediate consumption) but for the 0% rate imposed under
25 Public Act 102-700.
26 On and after January 1, 2018, except for returns required
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1 to be filed prior to January 1, 2023 for motor vehicles,
2 watercraft, aircraft, and trailers that are required to be
3 registered with an agency of this State, with respect to
4 retailers whose annual gross receipts average $20,000 or more,
5 all returns required to be filed pursuant to this Act shall be
6 filed electronically. On and after January 1, 2023, with
7 respect to retailers whose annual gross receipts average
8 $20,000 or more, all returns required to be filed pursuant to
9 this Act, including, but not limited to, returns for motor
10 vehicles, watercraft, aircraft, and trailers that are required
11 to be registered with an agency of this State, shall be filed
12 electronically. Retailers who demonstrate that they do not
13 have access to the Internet or demonstrate hardship in filing
14 electronically may petition the Department to waive the
15 electronic filing requirement.
16 The Department may require returns to be filed on a
17 quarterly basis. If so required, a return for each calendar
18 quarter shall be filed on or before the twentieth day of the
19 calendar month following the end of such calendar quarter. The
20 taxpayer shall also file a return with the Department for each
21 of the first two months of each calendar quarter, on or before
22 the twentieth day of the following calendar month, stating:
23 1. The name of the seller;
24 2. The address of the principal place of business from
25 which he engages in the business of selling tangible
26 personal property at retail in this State;
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1 3. The total amount of taxable receipts received by
2 him during the preceding calendar month from sales of
3 tangible personal property by him during such preceding
4 calendar month, including receipts from charge and time
5 sales, but less all deductions allowed by law;
6 4. The amount of credit provided in Section 2d of this
7 Act;
8 5. The amount of tax due;
9 5-5. The signature of the taxpayer; and
10 6. Such other reasonable information as the Department
11 may require.
12 Each retailer required or authorized to collect the tax
13 imposed by this Act on aviation fuel sold at retail in this
14 State during the preceding calendar month shall, instead of
15 reporting and paying tax on aviation fuel as otherwise
16 required by this Section, report and pay such tax on a separate
17 aviation fuel tax return. The requirements related to the
18 return shall be as otherwise provided in this Section.
19 Notwithstanding any other provisions of this Act to the
20 contrary, retailers collecting tax on aviation fuel shall file
21 all aviation fuel tax returns and shall make all aviation fuel
22 tax payments by electronic means in the manner and form
23 required by the Department. For purposes of this Section,
24 "aviation fuel" means jet fuel and aviation gasoline.
25 If a taxpayer fails to sign a return within 30 days after
26 the proper notice and demand for signature by the Department,
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1 the return shall be considered valid and any amount shown to be
2 due on the return shall be deemed assessed.
3 Notwithstanding any other provision of this Act to the
4 contrary, retailers subject to tax on cannabis shall file all
5 cannabis tax returns and shall make all cannabis tax payments
6 by electronic means in the manner and form required by the
7 Department.
8 Beginning October 1, 1993, a taxpayer who has an average
9 monthly tax liability of $150,000 or more shall make all
10 payments required by rules of the Department by electronic
11 funds transfer. Beginning October 1, 1994, a taxpayer who has
12 an average monthly tax liability of $100,000 or more shall
13 make all payments required by rules of the Department by
14 electronic funds transfer. Beginning October 1, 1995, a
15 taxpayer who has an average monthly tax liability of $50,000
16 or more shall make all payments required by rules of the
17 Department by electronic funds transfer. Beginning October 1,
18 2000, a taxpayer who has an annual tax liability of $200,000 or
19 more shall make all payments required by rules of the
20 Department by electronic funds transfer. The term "annual tax
21 liability" shall be the sum of the taxpayer's liabilities
22 under this Act, and under all other State and local occupation
23 and use tax laws administered by the Department, for the
24 immediately preceding calendar year. The term "average monthly
25 tax liability" means the sum of the taxpayer's liabilities
26 under this Act, and under all other State and local occupation
HB2755 Enrolled - 10 - LRB104 08253 BDA 18303 b
1 and use tax laws administered by the Department, for the
2 immediately preceding calendar year divided by 12. Beginning
3 on October 1, 2002, a taxpayer who has a tax liability in the
4 amount set forth in subsection (b) of Section 2505-210 of the
5 Department of Revenue Law shall make all payments required by
6 rules of the Department by electronic funds transfer.
7 Before August 1 of each year beginning in 1993, the
8 Department shall notify all taxpayers required to make
9 payments by electronic funds transfer. All taxpayers required
10 to make payments by electronic funds transfer shall make those
11 payments for a minimum of one year beginning on October 1.
12 Any taxpayer not required to make payments by electronic
13 funds transfer may make payments by electronic funds transfer
14 with the permission of the Department.
15 All taxpayers required to make payment by electronic funds
16 transfer and any taxpayers authorized to voluntarily make
17 payments by electronic funds transfer shall make those
18 payments in the manner authorized by the Department.
19 The Department shall adopt such rules as are necessary to
20 effectuate a program of electronic funds transfer and the
21 requirements of this Section.
22 Before October 1, 2000, if the taxpayer's average monthly
23 tax liability to the Department under this Act, the Retailers'
24 Occupation Tax Act, the Service Occupation Tax Act, the
25 Service Use Tax Act was $10,000 or more during the preceding 4
26 complete calendar quarters, he shall file a return with the
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1 Department each month by the 20th day of the month next
2 following the month during which such tax liability is
3 incurred and shall make payments to the Department on or
4 before the 7th, 15th, 22nd and last day of the month during
5 which such liability is incurred. On and after October 1,
6 2000, if the taxpayer's average monthly tax liability to the
7 Department under this Act, the Retailers' Occupation Tax Act,
8 the Service Occupation Tax Act, and the Service Use Tax Act was
9 $20,000 or more during the preceding 4 complete calendar
10 quarters, he shall file a return with the Department each
11 month by the 20th day of the month next following the month
12 during which such tax liability is incurred and shall make
13 payment to the Department on or before the 7th, 15th, 22nd and
14 last day of the month during which such liability is incurred.
15 If the month during which such tax liability is incurred began
16 prior to January 1, 1985, each payment shall be in an amount
17 equal to 1/4 of the taxpayer's actual liability for the month
18 or an amount set by the Department not to exceed 1/4 of the
19 average monthly liability of the taxpayer to the Department
20 for the preceding 4 complete calendar quarters (excluding the
21 month of highest liability and the month of lowest liability
22 in such 4 quarter period). If the month during which such tax
23 liability is incurred begins on or after January 1, 1985, and
24 prior to January 1, 1987, each payment shall be in an amount
25 equal to 22.5% of the taxpayer's actual liability for the
26 month or 27.5% of the taxpayer's liability for the same
HB2755 Enrolled - 12 - LRB104 08253 BDA 18303 b
1 calendar month of the preceding year. If the month during
2 which such tax liability is incurred begins on or after
3 January 1, 1987, and prior to January 1, 1988, each payment
4 shall be in an amount equal to 22.5% of the taxpayer's actual
5 liability for the month or 26.25% of the taxpayer's liability
6 for the same calendar month of the preceding year. If the month
7 during which such tax liability is incurred begins on or after
8 January 1, 1988, and prior to January 1, 1989, or begins on or
9 after January 1, 1996, each payment shall be in an amount equal
10 to 22.5% of the taxpayer's actual liability for the month or
11 25% of the taxpayer's liability for the same calendar month of
12 the preceding year. If the month during which such tax
13 liability is incurred begins on or after January 1, 1989, and
14 prior to January 1, 1996, each payment shall be in an amount
15 equal to 22.5% of the taxpayer's actual liability for the
16 month or 25% of the taxpayer's liability for the same calendar
17 month of the preceding year or 100% of the taxpayer's actual
18 liability for the quarter monthly reporting period. The amount
19 of such quarter monthly payments shall be credited against the
20 final tax liability of the taxpayer's return for that month.
21 Before October 1, 2000, once applicable, the requirement of
22 the making of quarter monthly payments to the Department shall
23 continue until such taxpayer's average monthly liability to
24 the Department during the preceding 4 complete calendar
25 quarters (excluding the month of highest liability and the
26 month of lowest liability) is less than $9,000, or until such
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1 taxpayer's average monthly liability to the Department as
2 computed for each calendar quarter of the 4 preceding complete
3 calendar quarter period is less than $10,000. However, if a
4 taxpayer can show the Department that a substantial change in
5 the taxpayer's business has occurred which causes the taxpayer
6 to anticipate that his average monthly tax liability for the
7 reasonably foreseeable future will fall below the $10,000
8 threshold stated above, then such taxpayer may petition the
9 Department for change in such taxpayer's reporting status. On
10 and after October 1, 2000, once applicable, the requirement of
11 the making of quarter monthly payments to the Department shall
12 continue until such taxpayer's average monthly liability to
13 the Department during the preceding 4 complete calendar
14 quarters (excluding the month of highest liability and the
15 month of lowest liability) is less than $19,000 or until such
16 taxpayer's average monthly liability to the Department as
17 computed for each calendar quarter of the 4 preceding complete
18 calendar quarter period is less than $20,000. However, if a
19 taxpayer can show the Department that a substantial change in
20 the taxpayer's business has occurred which causes the taxpayer
21 to anticipate that his average monthly tax liability for the
22 reasonably foreseeable future will fall below the $20,000
23 threshold stated above, then such taxpayer may petition the
24 Department for a change in such taxpayer's reporting status.
25 The Department shall change such taxpayer's reporting status
26 unless it finds that such change is seasonal in nature and not
HB2755 Enrolled - 14 - LRB104 08253 BDA 18303 b
1 likely to be long term. Quarter monthly payment status shall
2 be determined under this paragraph as if the rate reduction to
3 1.25% in Public Act 102-700 on sales tax holiday items had not
4 occurred. For quarter monthly payments due on or after July 1,
5 2023 and through June 30, 2024, "25% of the taxpayer's
6 liability for the same calendar month of the preceding year"
7 shall be determined as if the rate reduction to 1.25% in Public
8 Act 102-700 on sales tax holiday items had not occurred.
9 Quarter monthly payment status shall be determined under this
10 paragraph as if the rate reduction to 0% in Public Act 102-700
11 on food for human consumption that is to be consumed off the
12 premises where it is sold (other than alcoholic beverages,
13 food consisting of or infused with adult use cannabis, soft
14 drinks, and food that has been prepared for immediate
15 consumption) had not occurred. For quarter monthly payments
16 due under this paragraph on or after July 1, 2023 and through
17 June 30, 2024, "25% of the taxpayer's liability for the same
18 calendar month of the preceding year" shall be determined as
19 if the rate reduction to 0% in Public Act 102-700 had not
20 occurred. If any such quarter monthly payment is not paid at
21 the time or in the amount required by this Section, then the
22 taxpayer shall be liable for penalties and interest on the
23 difference between the minimum amount due and the amount of
24 such quarter monthly payment actually and timely paid, except
25 insofar as the taxpayer has previously made payments for that
26 month to the Department in excess of the minimum payments
HB2755 Enrolled - 15 - LRB104 08253 BDA 18303 b
1 previously due as provided in this Section. The Department
2 shall make reasonable rules and regulations to govern the
3 quarter monthly payment amount and quarter monthly payment
4 dates for taxpayers who file on other than a calendar monthly
5 basis.
6 If any such payment provided for in this Section exceeds
7 the taxpayer's liabilities under this Act, the Retailers'
8 Occupation Tax Act, the Service Occupation Tax Act and the
9 Service Use Tax Act, as shown by an original monthly return,
10 the Department shall issue to the taxpayer a credit memorandum
11 no later than 30 days after the date of payment, which
12 memorandum may be submitted by the taxpayer to the Department
13 in payment of tax liability subsequently to be remitted by the
14 taxpayer to the Department or be assigned by the taxpayer to a
15 similar taxpayer under this Act, the Retailers' Occupation Tax
16 Act, the Service Occupation Tax Act or the Service Use Tax Act,
17 in accordance with reasonable rules and regulations to be
18 prescribed by the Department, except that if such excess
19 payment is shown on an original monthly return and is made
20 after December 31, 1986, no credit memorandum shall be issued,
21 unless requested by the taxpayer. If no such request is made,
22 the taxpayer may credit such excess payment against tax
23 liability subsequently to be remitted by the taxpayer to the
24 Department under this Act, the Retailers' Occupation Tax Act,
25 the Service Occupation Tax Act or the Service Use Tax Act, in
26 accordance with reasonable rules and regulations prescribed by
HB2755 Enrolled - 16 - LRB104 08253 BDA 18303 b
1 the Department. If the Department subsequently determines that
2 all or any part of the credit taken was not actually due to the
3 taxpayer, the taxpayer's vendor's discount shall be reduced,
4 if necessary, to reflect the difference between the credit
5 taken and that actually due, and the taxpayer shall be liable
6 for penalties and interest on such difference.
7 If the retailer is otherwise required to file a monthly
8 return and if the retailer's average monthly tax liability to
9 the Department does not exceed $200, the Department may
10 authorize his returns to be filed on a quarter annual basis,
11 with the return for January, February, and March of a given
12 year being due by April 20 of such year; with the return for
13 April, May and June of a given year being due by July 20 of
14 such year; with the return for July, August and September of a
15 given year being due by October 20 of such year, and with the
16 return for October, November and December of a given year
17 being due by January 20 of the following year.
18 If the retailer is otherwise required to file a monthly or
19 quarterly return and if the retailer's average monthly tax
20 liability to the Department does not exceed $50, the
21 Department may authorize his returns to be filed on an annual
22 basis, with the return for a given year being due by January 20
23 of the following year.
24 Such quarter annual and annual returns, as to form and
25 substance, shall be subject to the same requirements as
26 monthly returns.
HB2755 Enrolled - 17 - LRB104 08253 BDA 18303 b
1 Notwithstanding any other provision in this Act concerning
2 the time within which a retailer may file his return, in the
3 case of any retailer who ceases to engage in a kind of business
4 which makes him responsible for filing returns under this Act,
5 such retailer shall file a final return under this Act with the
6 Department not more than one month after discontinuing such
7 business.
8 In addition, with respect to motor vehicles, watercraft,
9 aircraft, and trailers that are required to be registered with
10 an agency of this State, except as otherwise provided in this
11 Section, every retailer selling this kind of tangible personal
12 property shall file, with the Department, upon a form to be
13 prescribed and supplied by the Department, a separate return
14 for each such item of tangible personal property which the
15 retailer sells, except that if, in the same transaction, (i) a
16 retailer of aircraft, watercraft, motor vehicles or trailers
17 transfers more than one aircraft, watercraft, motor vehicle or
18 trailer to another aircraft, watercraft, motor vehicle or
19 trailer retailer for the purpose of resale or (ii) a retailer
20 of aircraft, watercraft, motor vehicles, or trailers transfers
21 more than one aircraft, watercraft, motor vehicle, or trailer
22 to a purchaser for use as a qualifying rolling stock as
23 provided in Section 3-55 of this Act, then that seller may
24 report the transfer of all the aircraft, watercraft, motor
25 vehicles or trailers involved in that transaction to the
26 Department on the same uniform invoice-transaction reporting
HB2755 Enrolled - 18 - LRB104 08253 BDA 18303 b
1 return form. For purposes of this Section, "watercraft" means
2 a Class 2, Class 3, or Class 4 watercraft as defined in Section
3 3-2 of the Boat Registration and Safety Act, a personal
4 watercraft, or any boat equipped with an inboard motor.
5 In addition, with respect to motor vehicles, watercraft,
6 aircraft, and trailers that are required to be registered with
7 an agency of this State, every person who is engaged in the
8 business of leasing or renting such items and who, in
9 connection with such business, sells any such item to a
10 retailer for the purpose of resale is, notwithstanding any
11 other provision of this Section to the contrary, authorized to
12 meet the return-filing requirement of this Act by reporting
13 the transfer of all the aircraft, watercraft, motor vehicles,
14 or trailers transferred for resale during a month to the
15 Department on the same uniform invoice-transaction reporting
16 return form on or before the 20th of the month following the
17 month in which the transfer takes place. Notwithstanding any
18 other provision of this Act to the contrary, all returns filed
19 under this paragraph must be filed by electronic means in the
20 manner and form as required by the Department.
21 The transaction reporting return in the case of motor
22 vehicles or trailers that are required to be registered with
23 an agency of this State, shall be the same document as the
24 Uniform Invoice referred to in Section 5-402 of the Illinois
25 Vehicle Code and must show the name and address of the seller;
26 the name and address of the purchaser; the amount of the
HB2755 Enrolled - 19 - LRB104 08253 BDA 18303 b
1 selling price including the amount allowed by the retailer for
2 traded-in property, if any; the amount allowed by the retailer
3 for the traded-in tangible personal property, if any, to the
4 extent to which Section 2 of this Act allows an exemption for
5 the value of traded-in property; the balance payable after
6 deducting such trade-in allowance from the total selling
7 price; the amount of tax due from the retailer with respect to
8 such transaction; the amount of tax collected from the
9 purchaser by the retailer on such transaction (or satisfactory
10 evidence that such tax is not due in that particular instance,
11 if that is claimed to be the fact); the place and date of the
12 sale; a sufficient identification of the property sold; such
13 other information as is required in Section 5-402 of the
14 Illinois Vehicle Code, and such other information as the
15 Department may reasonably require.
16 The transaction reporting return in the case of watercraft
17 and aircraft must show the name and address of the seller; the
18 name and address of the purchaser; the amount of the selling
19 price including the amount allowed by the retailer for
20 traded-in property, if any; the amount allowed by the retailer
21 for the traded-in tangible personal property, if any, to the
22 extent to which Section 2 of this Act allows an exemption for
23 the value of traded-in property; the balance payable after
24 deducting such trade-in allowance from the total selling
25 price; the amount of tax due from the retailer with respect to
26 such transaction; the amount of tax collected from the
HB2755 Enrolled - 20 - LRB104 08253 BDA 18303 b
1 purchaser by the retailer on such transaction (or satisfactory
2 evidence that such tax is not due in that particular instance,
3 if that is claimed to be the fact); the place and date of the
4 sale, a sufficient identification of the property sold, and
5 such other information as the Department may reasonably
6 require.
7 Such transaction reporting return shall be filed not later
8 than 20 days after the date of delivery of the item that is
9 being sold, but may be filed by the retailer at any time sooner
10 than that if he chooses to do so. The transaction reporting
11 return and tax remittance or proof of exemption from the tax
12 that is imposed by this Act may be transmitted to the
13 Department by way of the State agency with which, or State
14 officer with whom, the tangible personal property must be
15 titled or registered (if titling or registration is required)
16 if the Department and such agency or State officer determine
17 that this procedure will expedite the processing of
18 applications for title or registration.
19 With each such transaction reporting return, the retailer
20 shall remit the proper amount of tax due (or shall submit
21 satisfactory evidence that the sale is not taxable if that is
22 the case), to the Department or its agents, whereupon the
23 Department shall issue, in the purchaser's name, a tax receipt
24 (or a certificate of exemption if the Department is satisfied
25 that the particular sale is tax exempt) which such purchaser
26 may submit to the agency with which, or State officer with
HB2755 Enrolled - 21 - LRB104 08253 BDA 18303 b
1 whom, he must title or register the tangible personal property
2 that is involved (if titling or registration is required) in
3 support of such purchaser's application for an Illinois
4 certificate or other evidence of title or registration to such
5 tangible personal property.
6 No retailer's failure or refusal to remit tax under this
7 Act precludes a user, who has paid the proper tax to the
8 retailer, from obtaining his certificate of title or other
9 evidence of title or registration (if titling or registration
10 is required) upon satisfying the Department that such user has
11 paid the proper tax (if tax is due) to the retailer. The
12 Department shall adopt appropriate rules to carry out the
13 mandate of this paragraph.
14 If the user who would otherwise pay tax to the retailer
15 wants the transaction reporting return filed and the payment
16 of tax or proof of exemption made to the Department before the
17 retailer is willing to take these actions and such user has not
18 paid the tax to the retailer, such user may certify to the fact
19 of such delay by the retailer, and may (upon the Department
20 being satisfied of the truth of such certification) transmit
21 the information required by the transaction reporting return
22 and the remittance for tax or proof of exemption directly to
23 the Department and obtain his tax receipt or exemption
24 determination, in which event the transaction reporting return
25 and tax remittance (if a tax payment was required) shall be
26 credited by the Department to the proper retailer's account
HB2755 Enrolled - 22 - LRB104 08253 BDA 18303 b
1 with the Department, but without the vendor's discount
2 provided for in this Section being allowed. When the user pays
3 the tax directly to the Department, he shall pay the tax in the
4 same amount and in the same form in which it would be remitted
5 if the tax had been remitted to the Department by the retailer.
6 On and after January 1, 2025, with respect to the lease of
7 trailers, other than semitrailers as defined in Section 1-187
8 of the Illinois Vehicle Code, that are required to be
9 registered with an agency of this State and that are subject to
10 the tax on lease receipts under this Act, notwithstanding any
11 other provision of this Act to the contrary, for the purpose of
12 reporting and paying tax under this Act on those lease
13 receipts, lessors shall file returns in addition to and
14 separate from the transaction reporting return. Lessors shall
15 file those lease returns and make payment to the Department by
16 electronic means on or before the 20th day of each month
17 following the month, quarter, or year, as applicable, in which
18 lease receipts were received. All lease receipts received by
19 the lessor from the lease of those trailers during the same
20 reporting period shall be reported and tax shall be paid on a
21 single return form to be prescribed by the Department.
22 Where a retailer collects the tax with respect to the
23 selling price of tangible personal property which he sells and
24 the purchaser thereafter returns such tangible personal
25 property and the retailer refunds the selling price thereof to
26 the purchaser, such retailer shall also refund, to the
HB2755 Enrolled - 23 - LRB104 08253 BDA 18303 b
1 purchaser, the tax so collected from the purchaser. When
2 filing his return for the period in which he refunds such tax
3 to the purchaser, the retailer may deduct the amount of the tax
4 so refunded by him to the purchaser from any other use tax
5 which such retailer may be required to pay or remit to the
6 Department, as shown by such return, if the amount of the tax
7 to be deducted was previously remitted to the Department by
8 such retailer. If the retailer has not previously remitted the
9 amount of such tax to the Department, he is entitled to no
10 deduction under this Act upon refunding such tax to the
11 purchaser.
12 Any retailer filing a return under this Section shall also
13 include (for the purpose of paying tax thereon) the total tax
14 covered by such return upon the selling price of tangible
15 personal property purchased by him at retail from a retailer,
16 but as to which the tax imposed by this Act was not collected
17 from the retailer filing such return, and such retailer shall
18 remit the amount of such tax to the Department when filing such
19 return.
20 If experience indicates such action to be practicable, the
21 Department may prescribe and furnish a combination or joint
22 return which will enable retailers, who are required to file
23 returns hereunder and also under the Retailers' Occupation Tax
24 Act, to furnish all the return information required by both
25 Acts on the one form.
26 Where the retailer has more than one business registered
HB2755 Enrolled - 24 - LRB104 08253 BDA 18303 b
1 with the Department under separate registration under this
2 Act, such retailer may not file each return that is due as a
3 single return covering all such registered businesses, but
4 shall file separate returns for each such registered business.
5 Beginning January 1, 1990, each month the Department shall
6 pay into the State and Local Sales Tax Reform Fund, a special
7 fund in the State Treasury which is hereby created, the net
8 revenue realized for the preceding month from the 1% tax
9 imposed under this Act.
10 Beginning January 1, 1990, each month the Department shall
11 pay into the County and Mass Transit District Fund 4% of the
12 net revenue realized for the preceding month from the 6.25%
13 general rate on the selling price of tangible personal
14 property which is purchased outside Illinois at retail from a
15 retailer and which is titled or registered by an agency of this
16 State's government.
17 Beginning January 1, 1990, each month the Department shall
18 pay into the State and Local Sales Tax Reform Fund, a special
19 fund in the State Treasury, 20% of the net revenue realized for
20 the preceding month from the 6.25% general rate on the selling
21 price of tangible personal property, other than (i) tangible
22 personal property which is purchased outside Illinois at
23 retail from a retailer and which is titled or registered by an
24 agency of this State's government and (ii) aviation fuel sold
25 on or after December 1, 2019. This exception for aviation fuel
26 only applies for so long as the revenue use requirements of 49
HB2755 Enrolled - 25 - LRB104 08253 BDA 18303 b
1 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
2 For aviation fuel sold on or after December 1, 2019, each
3 month the Department shall pay into the State Aviation Program
4 Fund 20% of the net revenue realized for the preceding month
5 from the 6.25% general rate on the selling price of aviation
6 fuel, less an amount estimated by the Department to be
7 required for refunds of the 20% portion of the tax on aviation
8 fuel under this Act, which amount shall be deposited into the
9 Aviation Fuel Sales Tax Refund Fund. The Department shall only
10 pay moneys into the State Aviation Program Fund and the
11 Aviation Fuels Sales Tax Refund Fund under this Act for so long
12 as the revenue use requirements of 49 U.S.C. 47107(b) and 49
13 U.S.C. 47133 are binding on the State.
14 Beginning August 1, 2000, each month the Department shall
15 pay into the State and Local Sales Tax Reform Fund 100% of the
16 net revenue realized for the preceding month from the 1.25%
17 rate on the selling price of motor fuel and gasohol. If, in any
18 month, the tax on sales tax holiday items, as defined in
19 Section 3-6, is imposed at the rate of 1.25%, then the
20 Department shall pay 100% of the net revenue realized for that
21 month from the 1.25% rate on the selling price of sales tax
22 holiday items into the State and Local Sales Tax Reform Fund.
23 Beginning January 1, 1990, each month the Department shall
24 pay into the Local Government Tax Fund 16% of the net revenue
25 realized for the preceding month from the 6.25% general rate
26 on the selling price of tangible personal property which is
HB2755 Enrolled - 26 - LRB104 08253 BDA 18303 b
1 purchased outside Illinois at retail from a retailer and which
2 is titled or registered by an agency of this State's
3 government.
4 Beginning October 1, 2009, each month the Department shall
5 pay into the Capital Projects Fund an amount that is equal to
6 an amount estimated by the Department to represent 80% of the
7 net revenue realized for the preceding month from the sale of
8 candy, grooming and hygiene products, and soft drinks that had
9 been taxed at a rate of 1% prior to September 1, 2009 but that
10 are now taxed at 6.25%.
11 Beginning July 1, 2011, each month the Department shall
12 pay into the Clean Air Act Permit Fund 80% of the net revenue
13 realized for the preceding month from the 6.25% general rate
14 on the selling price of sorbents used in Illinois in the
15 process of sorbent injection as used to comply with the
16 Environmental Protection Act or the federal Clean Air Act, but
17 the total payment into the Clean Air Act Permit Fund under this
18 Act and the Retailers' Occupation Tax Act shall not exceed
19 $2,000,000 in any fiscal year.
20 Beginning July 1, 2013, each month the Department shall
21 pay into the Underground Storage Tank Fund from the proceeds
22 collected under this Act, the Service Use Tax Act, the Service
23 Occupation Tax Act, and the Retailers' Occupation Tax Act an
24 amount equal to the average monthly deficit in the Underground
25 Storage Tank Fund during the prior year, as certified annually
26 by the Illinois Environmental Protection Agency, but the total
HB2755 Enrolled - 27 - LRB104 08253 BDA 18303 b
1 payment into the Underground Storage Tank Fund under this Act,
2 the Service Use Tax Act, the Service Occupation Tax Act, and
3 the Retailers' Occupation Tax Act shall not exceed $18,000,000
4 in any State fiscal year. As used in this paragraph, the
5 "average monthly deficit" shall be equal to the difference
6 between the average monthly claims for payment by the fund and
7 the average monthly revenues deposited into the fund,
8 excluding payments made pursuant to this paragraph.
9 Beginning July 1, 2015, of the remainder of the moneys
10 received by the Department under this Act, the Service Use Tax
11 Act, the Service Occupation Tax Act, and the Retailers'
12 Occupation Tax Act, each month the Department shall deposit
13 $500,000 into the State Crime Laboratory Fund.
14 Of the remainder of the moneys received by the Department
15 pursuant to this Act, (a) 1.75% thereof shall be paid into the
16 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
17 and after July 1, 1989, 3.8% thereof shall be paid into the
18 Build Illinois Fund; provided, however, that if in any fiscal
19 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
20 may be, of the moneys received by the Department and required
21 to be paid into the Build Illinois Fund pursuant to Section 3
22 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
23 Act, Section 9 of the Service Use Tax Act, and Section 9 of the
24 Service Occupation Tax Act, such Acts being hereinafter called
25 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
26 may be, of moneys being hereinafter called the "Tax Act
HB2755 Enrolled - 28 - LRB104 08253 BDA 18303 b
1 Amount", and (2) the amount transferred to the Build Illinois
2 Fund from the State and Local Sales Tax Reform Fund shall be
3 less than the Annual Specified Amount (as defined in Section 3
4 of the Retailers' Occupation Tax Act), an amount equal to the
5 difference shall be immediately paid into the Build Illinois
6 Fund from other moneys received by the Department pursuant to
7 the Tax Acts; and further provided, that if on the last
8 business day of any month the sum of (1) the Tax Act Amount
9 required to be deposited into the Build Illinois Bond Account
10 in the Build Illinois Fund during such month and (2) the amount
11 transferred during such month to the Build Illinois Fund from
12 the State and Local Sales Tax Reform Fund shall have been less
13 than 1/12 of the Annual Specified Amount, an amount equal to
14 the difference shall be immediately paid into the Build
15 Illinois Fund from other moneys received by the Department
16 pursuant to the Tax Acts; and, further provided, that in no
17 event shall the payments required under the preceding proviso
18 result in aggregate payments into the Build Illinois Fund
19 pursuant to this clause (b) for any fiscal year in excess of
20 the greater of (i) the Tax Act Amount or (ii) the Annual
21 Specified Amount for such fiscal year; and, further provided,
22 that the amounts payable into the Build Illinois Fund under
23 this clause (b) shall be payable only until such time as the
24 aggregate amount on deposit under each trust indenture
25 securing Bonds issued and outstanding pursuant to the Build
26 Illinois Bond Act is sufficient, taking into account any
HB2755 Enrolled - 29 - LRB104 08253 BDA 18303 b
1 future investment income, to fully provide, in accordance with
2 such indenture, for the defeasance of or the payment of the
3 principal of, premium, if any, and interest on the Bonds
4 secured by such indenture and on any Bonds expected to be
5 issued thereafter and all fees and costs payable with respect
6 thereto, all as certified by the Director of the Bureau of the
7 Budget (now Governor's Office of Management and Budget). If on
8 the last business day of any month in which Bonds are
9 outstanding pursuant to the Build Illinois Bond Act, the
10 aggregate of the moneys deposited in the Build Illinois Bond
11 Account in the Build Illinois Fund in such month shall be less
12 than the amount required to be transferred in such month from
13 the Build Illinois Bond Account to the Build Illinois Bond
14 Retirement and Interest Fund pursuant to Section 13 of the
15 Build Illinois Bond Act, an amount equal to such deficiency
16 shall be immediately paid from other moneys received by the
17 Department pursuant to the Tax Acts to the Build Illinois
18 Fund; provided, however, that any amounts paid to the Build
19 Illinois Fund in any fiscal year pursuant to this sentence
20 shall be deemed to constitute payments pursuant to clause (b)
21 of the preceding sentence and shall reduce the amount
22 otherwise payable for such fiscal year pursuant to clause (b)
23 of the preceding sentence. The moneys received by the
24 Department pursuant to this Act and required to be deposited
25 into the Build Illinois Fund are subject to the pledge, claim
26 and charge set forth in Section 12 of the Build Illinois Bond
HB2755 Enrolled - 30 - LRB104 08253 BDA 18303 b
1 Act.
2 Subject to payment of amounts into the Build Illinois Fund
3 as provided in the preceding paragraph or in any amendment
4 thereto hereafter enacted, the following specified monthly
5 installment of the amount requested in the certificate of the
6 Chairman of the Metropolitan Pier and Exposition Authority
7 provided under Section 8.25f of the State Finance Act, but not
8 in excess of the sums designated as "Total Deposit", shall be
9 deposited in the aggregate from collections under Section 9 of
10 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
11 9 of the Service Occupation Tax Act, and Section 3 of the
12 Retailers' Occupation Tax Act into the McCormick Place
13 Expansion Project Fund in the specified fiscal years.
14 Fiscal Year Total Deposit
15 1993 $0
16 1994 53,000,000
17 1995 58,000,000
18 1996 61,000,000
19 1997 64,000,000
20 1998 68,000,000
21 1999 71,000,000
22 2000 75,000,000
23 2001 80,000,000
24 2002 93,000,000
25 2003 99,000,000
26 2004 103,000,000
HB2755 Enrolled - 31 - LRB104 08253 BDA 18303 b
1 2005 108,000,000
113,000,000
2 2006 119,000,000
126,000,000
3 2007 132,000,000
139,000,000
4 2008 146,000,000
153,000,000
5 2009 161,000,000
170,000,000
6 2010 179,000,000
189,000,000
7 2011 199,000,000
210,000,000
8 2012 221,000,000
233,000,000
9 2013 300,000,000
300,000,000
10 2014 300,000,000
300,000,000
11 2015 300,000,000
300,000,000
12 2016 375,000,000
375,000,000
13 2017 375,000,000
375,000,000
14 2018
15 2019
16 2020
17 2021
18 2022
19 2023
20 2024
21 2025
22 2026
23 2027
24 2028
25 2029
26 2030
HB2755 Enrolled - 32 - LRB104 08253 BDA 18303 b
1 2031 375,000,000
2 2032 375,000,000
3 2033 375,000,000
4 2034 375,000,000
5 2035 375,000,000
6 2036 450,000,000
7 and
8 each fiscal year
9 thereafter that bonds
10 are outstanding under
11 Section 13.2 of the
12 Metropolitan Pier and
13 Exposition Authority Act,
14 but not after fiscal year 2060.
15 Beginning July 20, 1993 and in each month of each fiscal
16 year thereafter, one-eighth of the amount requested in the
17 certificate of the Chairman of the Metropolitan Pier and
18 Exposition Authority for that fiscal year, less the amount
19 deposited into the McCormick Place Expansion Project Fund by
20 the State Treasurer in the respective month under subsection
21 (g) of Section 13 of the Metropolitan Pier and Exposition
22 Authority Act, plus cumulative deficiencies in the deposits
23 required under this Section for previous months and years,
24 shall be deposited into the McCormick Place Expansion Project
25 Fund, until the full amount requested for the fiscal year, but
26 not in excess of the amount specified above as "Total
HB2755 Enrolled - 33 - LRB104 08253 BDA 18303 b
1 Deposit", has been deposited.
2 Subject to payment of amounts into the Capital Projects
3 Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
4 and the McCormick Place Expansion Project Fund pursuant to the
5 preceding paragraphs or in any amendments thereto hereafter
6 enacted, for aviation fuel sold on or after December 1, 2019,
7 the Department shall each month deposit into the Aviation Fuel
8 Sales Tax Refund Fund an amount estimated by the Department to
9 be required for refunds of the 80% portion of the tax on
10 aviation fuel under this Act. The Department shall only
11 deposit moneys into the Aviation Fuel Sales Tax Refund Fund
12 under this paragraph for so long as the revenue use
13 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
14 binding on the State.
15 Subject to payment of amounts into the Build Illinois Fund
16 and the McCormick Place Expansion Project Fund pursuant to the
17 preceding paragraphs or in any amendments thereto hereafter
18 enacted, beginning July 1, 1993 and ending on September 30,
19 2013, the Department shall each month pay into the Illinois
20 Tax Increment Fund 0.27% of 80% of the net revenue realized for
21 the preceding month from the 6.25% general rate on the selling
22 price of tangible personal property.
23 Subject to payment of amounts into the Build Illinois
24 Fund, the McCormick Place Expansion Project Fund, the Illinois
25 Tax Increment Fund, and the Energy Infrastructure Fund
26 pursuant to the preceding paragraphs or in any amendments to
HB2755 Enrolled - 34 - LRB104 08253 BDA 18303 b
1 this Section hereafter enacted, beginning on the first day of
2 the first calendar month to occur on or after August 26, 2014
3 (the effective date of Public Act 98-1098), each month, from
4 the collections made under Section 9 of the Use Tax Act,
5 Section 9 of the Service Use Tax Act, Section 9 of the Service
6 Occupation Tax Act, and Section 3 of the Retailers' Occupation
7 Tax Act, the Department shall pay into the Tax Compliance and
8 Administration Fund, to be used, subject to appropriation, to
9 fund additional auditors and compliance personnel at the
10 Department of Revenue, an amount equal to 1/12 of 5% of 80% of
11 the cash receipts collected during the preceding fiscal year
12 by the Audit Bureau of the Department under the Use Tax Act,
13 the Service Use Tax Act, the Service Occupation Tax Act, the
14 Retailers' Occupation Tax Act, and associated local occupation
15 and use taxes administered by the Department.
16 Subject to payments of amounts into the Build Illinois
17 Fund, the McCormick Place Expansion Project Fund, the Illinois
18 Tax Increment Fund, and the Tax Compliance and Administration
19 Fund as provided in this Section, beginning on July 1, 2018 the
20 Department shall pay each month into the Downstate Public
21 Transportation Fund the moneys required to be so paid under
22 Section 2-3 of the Downstate Public Transportation Act.
23 Subject to successful execution and delivery of a
24 public-private agreement between the public agency and private
25 entity and completion of the civic build, beginning on July 1,
26 2023, of the remainder of the moneys received by the
HB2755 Enrolled - 35 - LRB104 08253 BDA 18303 b
1 Department under the Use Tax Act, the Service Use Tax Act, the
2 Service Occupation Tax Act, and this Act, the Department shall
3 deposit the following specified deposits in the aggregate from
4 collections under the Use Tax Act, the Service Use Tax Act, the
5 Service Occupation Tax Act, and the Retailers' Occupation Tax
6 Act, as required under Section 8.25g of the State Finance Act
7 for distribution consistent with the Public-Private
8 Partnership for Civic and Transit Infrastructure Project Act.
9 The moneys received by the Department pursuant to this Act and
10 required to be deposited into the Civic and Transit
11 Infrastructure Fund are subject to the pledge, claim, and
12 charge set forth in Section 25-55 of the Public-Private
13 Partnership for Civic and Transit Infrastructure Project Act.
14 As used in this paragraph, "civic build", "private entity",
15 "public-private agreement", and "public agency" have the
16 meanings provided in Section 25-10 of the Public-Private
17 Partnership for Civic and Transit Infrastructure Project Act.
18 Fiscal Year ............................ Total Deposit
19 2024 .................................... $200,000,000
20 2025 .................................... $206,000,000
21 2026 .................................... $212,200,000
22 2027 .................................... $218,500,000
23 2028 .................................... $225,100,000
24 2029 .................................... $288,700,000
25 2030 .................................... $298,900,000
26 2031 .................................... $309,300,000
HB2755 Enrolled - 36 - LRB104 08253 BDA 18303 b
1 2032 .................................... $320,100,000
2 2033 .................................... $331,200,000
3 2034 .................................... $341,200,000
4 2035 .................................... $351,400,000
5 2036 .................................... $361,900,000
6 2037 .................................... $372,800,000
7 2038 .................................... $384,000,000
8 2039 .................................... $395,500,000
9 2040 .................................... $407,400,000
10 2041 .................................... $419,600,000
11 2042 .................................... $432,200,000
12 2043 .................................... $445,100,000
13 Beginning July 1, 2021 and until July 1, 2022, subject to
14 the payment of amounts into the State and Local Sales Tax
15 Reform Fund, the Build Illinois Fund, the McCormick Place
16 Expansion Project Fund, the Illinois Tax Increment Fund, and
17 the Tax Compliance and Administration Fund as provided in this
18 Section, the Department shall pay each month into the Road
19 Fund the amount estimated to represent 16% of the net revenue
20 realized from the taxes imposed on motor fuel and gasohol.
21 Beginning July 1, 2022 and until July 1, 2023, subject to the
22 payment of amounts into the State and Local Sales Tax Reform
23 Fund, the Build Illinois Fund, the McCormick Place Expansion
24 Project Fund, the Illinois Tax Increment Fund, and the Tax
25 Compliance and Administration Fund as provided in this
26 Section, the Department shall pay each month into the Road
HB2755 Enrolled - 37 - LRB104 08253 BDA 18303 b
1 Fund the amount estimated to represent 32% of the net revenue
2 realized from the taxes imposed on motor fuel and gasohol.
3 Beginning July 1, 2023 and until July 1, 2024, subject to the
4 payment of amounts into the State and Local Sales Tax Reform
5 Fund, the Build Illinois Fund, the McCormick Place Expansion
6 Project Fund, the Illinois Tax Increment Fund, and the Tax
7 Compliance and Administration Fund as provided in this
8 Section, the Department shall pay each month into the Road
9 Fund the amount estimated to represent 48% of the net revenue
10 realized from the taxes imposed on motor fuel and gasohol.
11 Beginning July 1, 2024 and until July 1, 2026 July 1, 2025,
12 subject to the payment of amounts into the State and Local
13 Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
14 Place Expansion Project Fund, the Illinois Tax Increment Fund,
15 and the Tax Compliance and Administration Fund as provided in
16 this Section, the Department shall pay each month into the
17 Road Fund the amount estimated to represent 64% of the net
18 revenue realized from the taxes imposed on motor fuel and
19 gasohol. Beginning on July 1, 2026 July 1, 2025, subject to the
20 payment of amounts into the State and Local Sales Tax Reform
21 Fund, the Build Illinois Fund, the McCormick Place Expansion
22 Project Fund, the Illinois Tax Increment Fund, and the Tax
23 Compliance and Administration Fund as provided in this
24 Section, the Department shall pay each month into the Road
25 Fund the amount estimated to represent 80% of the net revenue
26 realized from the taxes imposed on motor fuel and gasohol. As
HB2755 Enrolled - 38 - LRB104 08253 BDA 18303 b
1 used in this paragraph "motor fuel" has the meaning given to
2 that term in Section 1.1 of the Motor Fuel Tax Law, and
3 "gasohol" has the meaning given to that term in Section 3-40 of
4 this Act.
5 Of the remainder of the moneys received by the Department
6 pursuant to this Act, 75% thereof shall be paid into the State
7 Treasury and 25% shall be reserved in a special account and
8 used only for the transfer to the Common School Fund as part of
9 the monthly transfer from the General Revenue Fund in
10 accordance with Section 8a of the State Finance Act.
11 As soon as possible after the first day of each month, upon
12 certification of the Department of Revenue, the Comptroller
13 shall order transferred and the Treasurer shall transfer from
14 the General Revenue Fund to the Motor Fuel Tax Fund an amount
15 equal to 1.7% of 80% of the net revenue realized under this Act
16 for the second preceding month. Beginning April 1, 2000, this
17 transfer is no longer required and shall not be made.
18 Net revenue realized for a month shall be the revenue
19 collected by the State pursuant to this Act, less the amount
20 paid out during that month as refunds to taxpayers for
21 overpayment of liability.
22 For greater simplicity of administration, manufacturers,
23 importers and wholesalers whose products are sold at retail in
24 Illinois by numerous retailers, and who wish to do so, may
25 assume the responsibility for accounting and paying to the
26 Department all tax accruing under this Act with respect to
HB2755 Enrolled - 39 - LRB104 08253 BDA 18303 b
1 such sales, if the retailers who are affected do not make
2 written objection to the Department to this arrangement.
3 (Source: P.A. 102-700, Article 60, Section 60-15, eff.
4 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
5 102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff.
6 7-28-23; 103-592, Article 75, Section 75-5, eff. 1-1-25;
7 103-592, Article 110, Section 110-5, eff. 6-7-24; 103-1055,
8 eff. 12-20-24.)
9 Section 5-15. The Service Use Tax Act is amended by
10 changing Section 9 as follows:
11 (35 ILCS 110/9)
12 Sec. 9. Each serviceman required or authorized to collect
13 the tax herein imposed shall pay to the Department the amount
14 of such tax (except as otherwise provided) at the time when he
15 is required to file his return for the period during which such
16 tax was collected, less a discount of 2.1% prior to January 1,
17 1990 and 1.75% on and after January 1, 1990, or $5 per calendar
18 year, whichever is greater, which is allowed to reimburse the
19 serviceman for expenses incurred in collecting the tax,
20 keeping records, preparing and filing returns, remitting the
21 tax, and supplying data to the Department on request.
22 Beginning with returns due on or after January 1, 2025, the
23 vendor's discount allowed in this Section, the Retailers'
24 Occupation Tax Act, the Service Occupation Tax Act, and the
HB2755 Enrolled - 40 - LRB104 08253 BDA 18303 b
1 Use Tax Act, including any local tax administered by the
2 Department and reported on the same return, shall not exceed
3 $1,000 per month in the aggregate. When determining the
4 discount allowed under this Section, servicemen shall include
5 the amount of tax that would have been due at the 1% rate but
6 for the 0% rate imposed under Public Act 102-700 this
7 amendatory Act of the 102nd General Assembly. The discount
8 under this Section is not allowed for the 1.25% portion of
9 taxes paid on aviation fuel that is subject to the revenue use
10 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
11 discount allowed under this Section is allowed only for
12 returns that are filed in the manner required by this Act. The
13 Department may disallow the discount for servicemen whose
14 certificate of registration is revoked at the time the return
15 is filed, but only if the Department's decision to revoke the
16 certificate of registration has become final. A serviceman
17 need not remit that part of any tax collected by him to the
18 extent that he is required to pay and does pay the tax imposed
19 by the Service Occupation Tax Act with respect to his sale of
20 service involving the incidental transfer by him of the same
21 property.
22 Except as provided hereinafter in this Section, on or
23 before the twentieth day of each calendar month, such
24 serviceman shall file a return for the preceding calendar
25 month in accordance with reasonable Rules and Regulations to
26 be promulgated by the Department. Such return shall be filed
HB2755 Enrolled - 41 - LRB104 08253 BDA 18303 b
1 on a form prescribed by the Department and shall contain such
2 information as the Department may reasonably require. The
3 return shall include the gross receipts which were received
4 during the preceding calendar month or quarter on the
5 following items upon which tax would have been due but for the
6 0% rate imposed under Public Act 102-700 this amendatory Act
7 of the 102nd General Assembly: (i) food for human consumption
8 that is to be consumed off the premises where it is sold (other
9 than alcoholic beverages, food consisting of or infused with
10 adult use cannabis, soft drinks, and food that has been
11 prepared for immediate consumption); and (ii) food prepared
12 for immediate consumption and transferred incident to a sale
13 of service subject to this Act or the Service Occupation Tax
14 Act by an entity licensed under the Hospital Licensing Act,
15 the Nursing Home Care Act, the Assisted Living and Shared
16 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
17 Specialized Mental Health Rehabilitation Act of 2013, or the
18 Child Care Act of 1969, or an entity that holds a permit issued
19 pursuant to the Life Care Facilities Act. The return shall
20 also include the amount of tax that would have been due on the
21 items listed in the previous sentence but for the 0% rate
22 imposed under Public Act 102-700 this amendatory Act of the
23 102nd General Assembly.
24 In the case of leases, except as otherwise provided in
25 this Act, the lessor, in collecting the tax, may collect for
26 each tax return period, only the tax applicable to that part of
HB2755 Enrolled - 42 - LRB104 08253 BDA 18303 b
1 the selling price actually received during such tax return
2 period.
3 On and after January 1, 2018, with respect to servicemen
4 whose annual gross receipts average $20,000 or more, all
5 returns required to be filed pursuant to this Act shall be
6 filed electronically. Servicemen who demonstrate that they do
7 not have access to the Internet or demonstrate hardship in
8 filing electronically may petition the Department to waive the
9 electronic filing requirement.
10 The Department may require returns to be filed on a
11 quarterly basis. If so required, a return for each calendar
12 quarter shall be filed on or before the twentieth day of the
13 calendar month following the end of such calendar quarter. The
14 taxpayer shall also file a return with the Department for each
15 of the first two months of each calendar quarter, on or before
16 the twentieth day of the following calendar month, stating:
17 1. The name of the seller;
18 2. The address of the principal place of business from
19 which he engages in business as a serviceman in this
20 State;
21 3. The total amount of taxable receipts received by
22 him during the preceding calendar month, including
23 receipts from charge and time sales, but less all
24 deductions allowed by law;
25 4. The amount of credit provided in Section 2d of this
26 Act;
HB2755 Enrolled - 43 - LRB104 08253 BDA 18303 b
1 5. The amount of tax due;
2 5-5. The signature of the taxpayer; and
3 6. Such other reasonable information as the Department
4 may require.
5 Each serviceman required or authorized to collect the tax
6 imposed by this Act on aviation fuel transferred as an
7 incident of a sale of service in this State during the
8 preceding calendar month shall, instead of reporting and
9 paying tax on aviation fuel as otherwise required by this
10 Section, report and pay such tax on a separate aviation fuel
11 tax return. The requirements related to the return shall be as
12 otherwise provided in this Section. Notwithstanding any other
13 provisions of this Act to the contrary, servicemen collecting
14 tax on aviation fuel shall file all aviation fuel tax returns
15 and shall make all aviation fuel tax payments by electronic
16 means in the manner and form required by the Department. For
17 purposes of this Section, "aviation fuel" means jet fuel and
18 aviation gasoline.
19 If a taxpayer fails to sign a return within 30 days after
20 the proper notice and demand for signature by the Department,
21 the return shall be considered valid and any amount shown to be
22 due on the return shall be deemed assessed.
23 Notwithstanding any other provision of this Act to the
24 contrary, servicemen subject to tax on cannabis shall file all
25 cannabis tax returns and shall make all cannabis tax payments
26 by electronic means in the manner and form required by the
HB2755 Enrolled - 44 - LRB104 08253 BDA 18303 b
1 Department.
2 Beginning October 1, 1993, a taxpayer who has an average
3 monthly tax liability of $150,000 or more shall make all
4 payments required by rules of the Department by electronic
5 funds transfer. Beginning October 1, 1994, a taxpayer who has
6 an average monthly tax liability of $100,000 or more shall
7 make all payments required by rules of the Department by
8 electronic funds transfer. Beginning October 1, 1995, a
9 taxpayer who has an average monthly tax liability of $50,000
10 or more shall make all payments required by rules of the
11 Department by electronic funds transfer. Beginning October 1,
12 2000, a taxpayer who has an annual tax liability of $200,000 or
13 more shall make all payments required by rules of the
14 Department by electronic funds transfer. The term "annual tax
15 liability" shall be the sum of the taxpayer's liabilities
16 under this Act, and under all other State and local occupation
17 and use tax laws administered by the Department, for the
18 immediately preceding calendar year. The term "average monthly
19 tax liability" means the sum of the taxpayer's liabilities
20 under this Act, and under all other State and local occupation
21 and use tax laws administered by the Department, for the
22 immediately preceding calendar year divided by 12. Beginning
23 on October 1, 2002, a taxpayer who has a tax liability in the
24 amount set forth in subsection (b) of Section 2505-210 of the
25 Department of Revenue Law shall make all payments required by
26 rules of the Department by electronic funds transfer.
HB2755 Enrolled - 45 - LRB104 08253 BDA 18303 b
1 Before August 1 of each year beginning in 1993, the
2 Department shall notify all taxpayers required to make
3 payments by electronic funds transfer. All taxpayers required
4 to make payments by electronic funds transfer shall make those
5 payments for a minimum of one year beginning on October 1.
6 Any taxpayer not required to make payments by electronic
7 funds transfer may make payments by electronic funds transfer
8 with the permission of the Department.
9 All taxpayers required to make payment by electronic funds
10 transfer and any taxpayers authorized to voluntarily make
11 payments by electronic funds transfer shall make those
12 payments in the manner authorized by the Department.
13 The Department shall adopt such rules as are necessary to
14 effectuate a program of electronic funds transfer and the
15 requirements of this Section.
16 If the serviceman is otherwise required to file a monthly
17 return and if the serviceman's average monthly tax liability
18 to the Department does not exceed $200, the Department may
19 authorize his returns to be filed on a quarter annual basis,
20 with the return for January, February, and March of a given
21 year being due by April 20 of such year; with the return for
22 April, May, and June of a given year being due by July 20 of
23 such year; with the return for July, August, and September of a
24 given year being due by October 20 of such year, and with the
25 return for October, November, and December of a given year
26 being due by January 20 of the following year.
HB2755 Enrolled - 46 - LRB104 08253 BDA 18303 b
1 If the serviceman is otherwise required to file a monthly
2 or quarterly return and if the serviceman's average monthly
3 tax liability to the Department does not exceed $50, the
4 Department may authorize his returns to be filed on an annual
5 basis, with the return for a given year being due by January 20
6 of the following year.
7 Such quarter annual and annual returns, as to form and
8 substance, shall be subject to the same requirements as
9 monthly returns.
10 Notwithstanding any other provision in this Act concerning
11 the time within which a serviceman may file his return, in the
12 case of any serviceman who ceases to engage in a kind of
13 business which makes him responsible for filing returns under
14 this Act, such serviceman shall file a final return under this
15 Act with the Department not more than one 1 month after
16 discontinuing such business.
17 Where a serviceman collects the tax with respect to the
18 selling price of property which he sells and the purchaser
19 thereafter returns such property and the serviceman refunds
20 the selling price thereof to the purchaser, such serviceman
21 shall also refund, to the purchaser, the tax so collected from
22 the purchaser. When filing his return for the period in which
23 he refunds such tax to the purchaser, the serviceman may
24 deduct the amount of the tax so refunded by him to the
25 purchaser from any other Service Use Tax, Service Occupation
26 Tax, retailers' occupation tax, or use tax which such
HB2755 Enrolled - 47 - LRB104 08253 BDA 18303 b
1 serviceman may be required to pay or remit to the Department,
2 as shown by such return, provided that the amount of the tax to
3 be deducted shall previously have been remitted to the
4 Department by such serviceman. If the serviceman shall not
5 previously have remitted the amount of such tax to the
6 Department, he shall be entitled to no deduction hereunder
7 upon refunding such tax to the purchaser.
8 Any serviceman filing a return hereunder shall also
9 include the total tax upon the selling price of tangible
10 personal property purchased for use by him as an incident to a
11 sale of service, and such serviceman shall remit the amount of
12 such tax to the Department when filing such return.
13 If experience indicates such action to be practicable, the
14 Department may prescribe and furnish a combination or joint
15 return which will enable servicemen, who are required to file
16 returns hereunder and also under the Service Occupation Tax
17 Act, to furnish all the return information required by both
18 Acts on the one form.
19 Where the serviceman has more than one business registered
20 with the Department under separate registration hereunder,
21 such serviceman shall not file each return that is due as a
22 single return covering all such registered businesses, but
23 shall file separate returns for each such registered business.
24 Beginning January 1, 1990, each month the Department shall
25 pay into the State and Local Tax Reform Fund, a special fund in
26 the State treasury Treasury, the net revenue realized for the
HB2755 Enrolled - 48 - LRB104 08253 BDA 18303 b
1 preceding month from the 1% tax imposed under this Act.
2 Beginning January 1, 1990, each month the Department shall
3 pay into the State and Local Sales Tax Reform Fund 20% of the
4 net revenue realized for the preceding month from the 6.25%
5 general rate on transfers of tangible personal property, other
6 than (i) tangible personal property which is purchased outside
7 Illinois at retail from a retailer and which is titled or
8 registered by an agency of this State's government and (ii)
9 aviation fuel sold on or after December 1, 2019. This
10 exception for aviation fuel only applies for so long as the
11 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
12 47133 are binding on the State.
13 For aviation fuel sold on or after December 1, 2019, each
14 month the Department shall pay into the State Aviation Program
15 Fund 20% of the net revenue realized for the preceding month
16 from the 6.25% general rate on the selling price of aviation
17 fuel, less an amount estimated by the Department to be
18 required for refunds of the 20% portion of the tax on aviation
19 fuel under this Act, which amount shall be deposited into the
20 Aviation Fuel Sales Tax Refund Fund. The Department shall only
21 pay moneys into the State Aviation Program Fund and the
22 Aviation Fuel Sales Tax Refund Fund under this Act for so long
23 as the revenue use requirements of 49 U.S.C. 47107(b) and 49
24 U.S.C. 47133 are binding on the State.
25 Beginning August 1, 2000, each month the Department shall
26 pay into the State and Local Sales Tax Reform Fund 100% of the
HB2755 Enrolled - 49 - LRB104 08253 BDA 18303 b
1 net revenue realized for the preceding month from the 1.25%
2 rate on the selling price of motor fuel and gasohol.
3 Beginning October 1, 2009, each month the Department shall
4 pay into the Capital Projects Fund an amount that is equal to
5 an amount estimated by the Department to represent 80% of the
6 net revenue realized for the preceding month from the sale of
7 candy, grooming and hygiene products, and soft drinks that had
8 been taxed at a rate of 1% prior to September 1, 2009 but that
9 are now taxed at 6.25%.
10 Beginning July 1, 2013, each month the Department shall
11 pay into the Underground Storage Tank Fund from the proceeds
12 collected under this Act, the Use Tax Act, the Service
13 Occupation Tax Act, and the Retailers' Occupation Tax Act an
14 amount equal to the average monthly deficit in the Underground
15 Storage Tank Fund during the prior year, as certified annually
16 by the Illinois Environmental Protection Agency, but the total
17 payment into the Underground Storage Tank Fund under this Act,
18 the Use Tax Act, the Service Occupation Tax Act, and the
19 Retailers' Occupation Tax Act shall not exceed $18,000,000 in
20 any State fiscal year. As used in this paragraph, the "average
21 monthly deficit" shall be equal to the difference between the
22 average monthly claims for payment by the fund and the average
23 monthly revenues deposited into the fund, excluding payments
24 made pursuant to this paragraph.
25 Beginning July 1, 2015, of the remainder of the moneys
26 received by the Department under the Use Tax Act, this Act, the
HB2755 Enrolled - 50 - LRB104 08253 BDA 18303 b
1 Service Occupation Tax Act, and the Retailers' Occupation Tax
2 Act, each month the Department shall deposit $500,000 into the
3 State Crime Laboratory Fund.
4 Of the remainder of the moneys received by the Department
5 pursuant to this Act, (a) 1.75% thereof shall be paid into the
6 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
7 and after July 1, 1989, 3.8% thereof shall be paid into the
8 Build Illinois Fund; provided, however, that if in any fiscal
9 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
10 may be, of the moneys received by the Department and required
11 to be paid into the Build Illinois Fund pursuant to Section 3
12 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
13 Act, Section 9 of the Service Use Tax Act, and Section 9 of the
14 Service Occupation Tax Act, such Acts being hereinafter called
15 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
16 may be, of moneys being hereinafter called the "Tax Act
17 Amount", and (2) the amount transferred to the Build Illinois
18 Fund from the State and Local Sales Tax Reform Fund shall be
19 less than the Annual Specified Amount (as defined in Section 3
20 of the Retailers' Occupation Tax Act), an amount equal to the
21 difference shall be immediately paid into the Build Illinois
22 Fund from other moneys received by the Department pursuant to
23 the Tax Acts; and further provided, that if on the last
24 business day of any month the sum of (1) the Tax Act Amount
25 required to be deposited into the Build Illinois Bond Account
26 in the Build Illinois Fund during such month and (2) the amount
HB2755 Enrolled - 51 - LRB104 08253 BDA 18303 b
1 transferred during such month to the Build Illinois Fund from
2 the State and Local Sales Tax Reform Fund shall have been less
3 than 1/12 of the Annual Specified Amount, an amount equal to
4 the difference shall be immediately paid into the Build
5 Illinois Fund from other moneys received by the Department
6 pursuant to the Tax Acts; and, further provided, that in no
7 event shall the payments required under the preceding proviso
8 result in aggregate payments into the Build Illinois Fund
9 pursuant to this clause (b) for any fiscal year in excess of
10 the greater of (i) the Tax Act Amount or (ii) the Annual
11 Specified Amount for such fiscal year; and, further provided,
12 that the amounts payable into the Build Illinois Fund under
13 this clause (b) shall be payable only until such time as the
14 aggregate amount on deposit under each trust indenture
15 securing Bonds issued and outstanding pursuant to the Build
16 Illinois Bond Act is sufficient, taking into account any
17 future investment income, to fully provide, in accordance with
18 such indenture, for the defeasance of or the payment of the
19 principal of, premium, if any, and interest on the Bonds
20 secured by such indenture and on any Bonds expected to be
21 issued thereafter and all fees and costs payable with respect
22 thereto, all as certified by the Director of the Bureau of the
23 Budget (now Governor's Office of Management and Budget). If on
24 the last business day of any month in which Bonds are
25 outstanding pursuant to the Build Illinois Bond Act, the
26 aggregate of the moneys deposited in the Build Illinois Bond
HB2755 Enrolled - 52 - LRB104 08253 BDA 18303 b
1 Account in the Build Illinois Fund in such month shall be less
2 than the amount required to be transferred in such month from
3 the Build Illinois Bond Account to the Build Illinois Bond
4 Retirement and Interest Fund pursuant to Section 13 of the
5 Build Illinois Bond Act, an amount equal to such deficiency
6 shall be immediately paid from other moneys received by the
7 Department pursuant to the Tax Acts to the Build Illinois
8 Fund; provided, however, that any amounts paid to the Build
9 Illinois Fund in any fiscal year pursuant to this sentence
10 shall be deemed to constitute payments pursuant to clause (b)
11 of the preceding sentence and shall reduce the amount
12 otherwise payable for such fiscal year pursuant to clause (b)
13 of the preceding sentence. The moneys received by the
14 Department pursuant to this Act and required to be deposited
15 into the Build Illinois Fund are subject to the pledge, claim
16 and charge set forth in Section 12 of the Build Illinois Bond
17 Act.
18 Subject to payment of amounts into the Build Illinois Fund
19 as provided in the preceding paragraph or in any amendment
20 thereto hereafter enacted, the following specified monthly
21 installment of the amount requested in the certificate of the
22 Chairman of the Metropolitan Pier and Exposition Authority
23 provided under Section 8.25f of the State Finance Act, but not
24 in excess of the sums designated as "Total Deposit", shall be
25 deposited in the aggregate from collections under Section 9 of
26 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
HB2755 Enrolled - 53 - LRB104 08253 BDA 18303 b
1 9 of the Service Occupation Tax Act, and Section 3 of the
2 Retailers' Occupation Tax Act into the McCormick Place
3 Expansion Project Fund in the specified fiscal years.
4 Fiscal Year Total Deposit
$0
5 1993
53,000,000
6 1994 58,000,000
61,000,000
7 1995 64,000,000
68,000,000
8 1996 71,000,000
75,000,000
9 1997 80,000,000
93,000,000
10 1998 99,000,000
103,000,000
11 1999 108,000,000
113,000,000
12 2000 119,000,000
126,000,000
13 2001 132,000,000
139,000,000
14 2002 146,000,000
153,000,000
15 2003 161,000,000
16 2004
17 2005
18 2006
19 2007
20 2008
21 2009
22 2010
23 2011
24 2012
25 2013
HB2755 Enrolled - 54 - LRB104 08253 BDA 18303 b
1 2014 170,000,000
179,000,000
2 2015 189,000,000
199,000,000
3 2016 210,000,000
221,000,000
4 2017 233,000,000
300,000,000
5 2018 300,000,000
300,000,000
6 2019 300,000,000
300,000,000
7 2020 300,000,000
375,000,000
8 2021 375,000,000
375,000,000
9 2022 375,000,000
375,000,000
10 2023 375,000,000
375,000,000
11 2024 375,000,000
375,000,000
12 2025 450,000,000
13 2026
14 2027
15 2028
16 2029
17 2030
18 2031
19 2032
20 2033
21 2034
22 2035
23 2036
24 and
25 each fiscal year
26 thereafter that bonds
HB2755 Enrolled - 55 - LRB104 08253 BDA 18303 b
1 are outstanding under
2 Section 13.2 of the
3 Metropolitan Pier and
4 Exposition Authority Act,
5 but not after fiscal year 2060.
6 Beginning July 20, 1993 and in each month of each fiscal
7 year thereafter, one-eighth of the amount requested in the
8 certificate of the Chairman of the Metropolitan Pier and
9 Exposition Authority for that fiscal year, less the amount
10 deposited into the McCormick Place Expansion Project Fund by
11 the State Treasurer in the respective month under subsection
12 (g) of Section 13 of the Metropolitan Pier and Exposition
13 Authority Act, plus cumulative deficiencies in the deposits
14 required under this Section for previous months and years,
15 shall be deposited into the McCormick Place Expansion Project
16 Fund, until the full amount requested for the fiscal year, but
17 not in excess of the amount specified above as "Total
18 Deposit", has been deposited.
19 Subject to payment of amounts into the Capital Projects
20 Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
21 and the McCormick Place Expansion Project Fund pursuant to the
22 preceding paragraphs or in any amendments thereto hereafter
23 enacted, for aviation fuel sold on or after December 1, 2019,
24 the Department shall each month deposit into the Aviation Fuel
25 Sales Tax Refund Fund an amount estimated by the Department to
26 be required for refunds of the 80% portion of the tax on
HB2755 Enrolled - 56 - LRB104 08253 BDA 18303 b
1 aviation fuel under this Act. The Department shall only
2 deposit moneys into the Aviation Fuel Sales Tax Refund Fund
3 under this paragraph for so long as the revenue use
4 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
5 binding on the State.
6 Subject to payment of amounts into the Build Illinois Fund
7 and the McCormick Place Expansion Project Fund pursuant to the
8 preceding paragraphs or in any amendments thereto hereafter
9 enacted, beginning July 1, 1993 and ending on September 30,
10 2013, the Department shall each month pay into the Illinois
11 Tax Increment Fund 0.27% of 80% of the net revenue realized for
12 the preceding month from the 6.25% general rate on the selling
13 price of tangible personal property.
14 Subject to payment of amounts into the Build Illinois
15 Fund, the McCormick Place Expansion Project Fund, the Illinois
16 Tax Increment Fund, pursuant to the preceding paragraphs or in
17 any amendments to this Section hereafter enacted, beginning on
18 the first day of the first calendar month to occur on or after
19 August 26, 2014 (the effective date of Public Act 98-1098),
20 each month, from the collections made under Section 9 of the
21 Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of
22 the Service Occupation Tax Act, and Section 3 of the
23 Retailers' Occupation Tax Act, the Department shall pay into
24 the Tax Compliance and Administration Fund, to be used,
25 subject to appropriation, to fund additional auditors and
26 compliance personnel at the Department of Revenue, an amount
HB2755 Enrolled - 57 - LRB104 08253 BDA 18303 b
1 equal to 1/12 of 5% of 80% of the cash receipts collected
2 during the preceding fiscal year by the Audit Bureau of the
3 Department under the Use Tax Act, the Service Use Tax Act, the
4 Service Occupation Tax Act, the Retailers' Occupation Tax Act,
5 and associated local occupation and use taxes administered by
6 the Department.
7 Subject to payments of amounts into the Build Illinois
8 Fund, the McCormick Place Expansion Project Fund, the Illinois
9 Tax Increment Fund, and the Tax Compliance and Administration
10 Fund as provided in this Section, beginning on July 1, 2018 the
11 Department shall pay each month into the Downstate Public
12 Transportation Fund the moneys required to be so paid under
13 Section 2-3 of the Downstate Public Transportation Act.
14 Subject to successful execution and delivery of a
15 public-private agreement between the public agency and private
16 entity and completion of the civic build, beginning on July 1,
17 2023, of the remainder of the moneys received by the
18 Department under the Use Tax Act, the Service Use Tax Act, the
19 Service Occupation Tax Act, and this Act, the Department shall
20 deposit the following specified deposits in the aggregate from
21 collections under the Use Tax Act, the Service Use Tax Act, the
22 Service Occupation Tax Act, and the Retailers' Occupation Tax
23 Act, as required under Section 8.25g of the State Finance Act
24 for distribution consistent with the Public-Private
25 Partnership for Civic and Transit Infrastructure Project Act.
26 The moneys received by the Department pursuant to this Act and
HB2755 Enrolled - 58 - LRB104 08253 BDA 18303 b
1 required to be deposited into the Civic and Transit
2 Infrastructure Fund are subject to the pledge, claim, and
3 charge set forth in Section 25-55 of the Public-Private
4 Partnership for Civic and Transit Infrastructure Project Act.
5 As used in this paragraph, "civic build", "private entity",
6 "public-private agreement", and "public agency" have the
7 meanings provided in Section 25-10 of the Public-Private
8 Partnership for Civic and Transit Infrastructure Project Act.
9 Fiscal Year ............................ Total Deposit
10 2024 .................................... $200,000,000
11 2025 .................................... $206,000,000
12 2026 .................................... $212,200,000
13 2027 .................................... $218,500,000
14 2028 .................................... $225,100,000
15 2029 .................................... $288,700,000
16 2030 .................................... $298,900,000
17 2031 .................................... $309,300,000
18 2032 .................................... $320,100,000
19 2033 .................................... $331,200,000
20 2034 .................................... $341,200,000
21 2035 .................................... $351,400,000
22 2036 .................................... $361,900,000
23 2037 .................................... $372,800,000
24 2038 .................................... $384,000,000
25 2039 .................................... $395,500,000
26 2040 .................................... $407,400,000
HB2755 Enrolled - 59 - LRB104 08253 BDA 18303 b
1 2041 .................................... $419,600,000
2 2042 .................................... $432,200,000
3 2043 .................................... $445,100,000
4 Beginning July 1, 2021 and until July 1, 2022, subject to
5 the payment of amounts into the State and Local Sales Tax
6 Reform Fund, the Build Illinois Fund, the McCormick Place
7 Expansion Project Fund, the Energy Infrastructure Fund, and
8 the Tax Compliance and Administration Fund as provided in this
9 Section, the Department shall pay each month into the Road
10 Fund the amount estimated to represent 16% of the net revenue
11 realized from the taxes imposed on motor fuel and gasohol.
12 Beginning July 1, 2022 and until July 1, 2023, subject to the
13 payment of amounts into the State and Local Sales Tax Reform
14 Fund, the Build Illinois Fund, the McCormick Place Expansion
15 Project Fund, the Illinois Tax Increment Fund, and the Tax
16 Compliance and Administration Fund as provided in this
17 Section, the Department shall pay each month into the Road
18 Fund the amount estimated to represent 32% of the net revenue
19 realized from the taxes imposed on motor fuel and gasohol.
20 Beginning July 1, 2023 and until July 1, 2024, subject to the
21 payment of amounts into the State and Local Sales Tax Reform
22 Fund, the Build Illinois Fund, the McCormick Place Expansion
23 Project Fund, the Illinois Tax Increment Fund, and the Tax
24 Compliance and Administration Fund as provided in this
25 Section, the Department shall pay each month into the Road
26 Fund the amount estimated to represent 48% of the net revenue
HB2755 Enrolled - 60 - LRB104 08253 BDA 18303 b
1 realized from the taxes imposed on motor fuel and gasohol.
2 Beginning July 1, 2024 and until July 1, 2026 July 1, 2025,
3 subject to the payment of amounts into the State and Local
4 Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
5 Place Expansion Project Fund, the Illinois Tax Increment Fund,
6 and the Tax Compliance and Administration Fund as provided in
7 this Section, the Department shall pay each month into the
8 Road Fund the amount estimated to represent 64% of the net
9 revenue realized from the taxes imposed on motor fuel and
10 gasohol. Beginning on July 1, 2026 July 1, 2025, subject to the
11 payment of amounts into the State and Local Sales Tax Reform
12 Fund, the Build Illinois Fund, the McCormick Place Expansion
13 Project Fund, the Illinois Tax Increment Fund, and the Tax
14 Compliance and Administration Fund as provided in this
15 Section, the Department shall pay each month into the Road
16 Fund the amount estimated to represent 80% of the net revenue
17 realized from the taxes imposed on motor fuel and gasohol. As
18 used in this paragraph "motor fuel" has the meaning given to
19 that term in Section 1.1 of the Motor Fuel Tax Law, and
20 "gasohol" has the meaning given to that term in Section 3-40 of
21 the Use Tax Act.
22 Of the remainder of the moneys received by the Department
23 pursuant to this Act, 75% thereof shall be paid into the
24 General Revenue Fund of the State treasury Treasury and 25%
25 shall be reserved in a special account and used only for the
26 transfer to the Common School Fund as part of the monthly
HB2755 Enrolled - 61 - LRB104 08253 BDA 18303 b
1 transfer from the General Revenue Fund in accordance with
2 Section 8a of the State Finance Act.
3 As soon as possible after the first day of each month, upon
4 certification of the Department of Revenue, the Comptroller
5 shall order transferred and the Treasurer shall transfer from
6 the General Revenue Fund to the Motor Fuel Tax Fund an amount
7 equal to 1.7% of 80% of the net revenue realized under this Act
8 for the second preceding month. Beginning April 1, 2000, this
9 transfer is no longer required and shall not be made.
10 Net revenue realized for a month shall be the revenue
11 collected by the State pursuant to this Act, less the amount
12 paid out during that month as refunds to taxpayers for
13 overpayment of liability.
14 (Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23;
15 103-592, Article 75, Section 75-10, eff. 1-1-25; 103-592,
16 Article 110, Section 110-10, eff. 6-7-24; revised 11-26-24.)
17 Section 5-20. The Service Occupation Tax Act is amended by
18 changing Section 9 as follows:
19 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
20 Sec. 9. Each serviceman required or authorized to collect
21 the tax herein imposed shall pay to the Department the amount
22 of such tax at the time when he is required to file his return
23 for the period during which such tax was collectible, less a
24 discount of 2.1% prior to January 1, 1990, and 1.75% on and
HB2755 Enrolled - 62 - LRB104 08253 BDA 18303 b
1 after January 1, 1990, or $5 per calendar year, whichever is
2 greater, which is allowed to reimburse the serviceman for
3 expenses incurred in collecting the tax, keeping records,
4 preparing and filing returns, remitting the tax, and supplying
5 data to the Department on request. Beginning with returns due
6 on or after January 1, 2025, the vendor's discount allowed in
7 this Section, the Retailers' Occupation Tax Act, the Use Tax
8 Act, and the Service Use Tax Act, including any local tax
9 administered by the Department and reported on the same
10 return, shall not exceed $1,000 per month in the aggregate.
11 When determining the discount allowed under this Section,
12 servicemen shall include the amount of tax that would have
13 been due at the 1% rate but for the 0% rate imposed under
14 Public Act 102-700. The discount under this Section is not
15 allowed for the 1.25% portion of taxes paid on aviation fuel
16 that is subject to the revenue use requirements of 49 U.S.C.
17 47107(b) and 49 U.S.C. 47133. The discount allowed under this
18 Section is allowed only for returns that are filed in the
19 manner required by this Act. The Department may disallow the
20 discount for servicemen whose certificate of registration is
21 revoked at the time the return is filed, but only if the
22 Department's decision to revoke the certificate of
23 registration has become final.
24 Where such tangible personal property is sold under a
25 conditional sales contract, or under any other form of sale
26 wherein the payment of the principal sum, or a part thereof, is
HB2755 Enrolled - 63 - LRB104 08253 BDA 18303 b
1 extended beyond the close of the period for which the return is
2 filed, the serviceman, in collecting the tax may collect, for
3 each tax return period, only the tax applicable to the part of
4 the selling price actually received during such tax return
5 period.
6 Except as provided hereinafter in this Section, on or
7 before the twentieth day of each calendar month, such
8 serviceman shall file a return for the preceding calendar
9 month in accordance with reasonable rules and regulations to
10 be promulgated by the Department of Revenue. Such return shall
11 be filed on a form prescribed by the Department and shall
12 contain such information as the Department may reasonably
13 require. The return shall include the gross receipts which
14 were received during the preceding calendar month or quarter
15 on the following items upon which tax would have been due but
16 for the 0% rate imposed under Public Act 102-700: (i) food for
17 human consumption that is to be consumed off the premises
18 where it is sold (other than alcoholic beverages, food
19 consisting of or infused with adult use cannabis, soft drinks,
20 and food that has been prepared for immediate consumption);
21 and (ii) food prepared for immediate consumption and
22 transferred incident to a sale of service subject to this Act
23 or the Service Use Tax Act by an entity licensed under the
24 Hospital Licensing Act, the Nursing Home Care Act, the
25 Assisted Living and Shared Housing Act, the ID/DD Community
26 Care Act, the MC/DD Act, the Specialized Mental Health
HB2755 Enrolled - 64 - LRB104 08253 BDA 18303 b
1 Rehabilitation Act of 2013, or the Child Care Act of 1969, or
2 an entity that holds a permit issued pursuant to the Life Care
3 Facilities Act. The return shall also include the amount of
4 tax that would have been due on the items listed in the
5 previous sentence but for the 0% rate imposed under Public Act
6 102-700.
7 On and after January 1, 2018, with respect to servicemen
8 whose annual gross receipts average $20,000 or more, all
9 returns required to be filed pursuant to this Act shall be
10 filed electronically. Servicemen who demonstrate that they do
11 not have access to the Internet or demonstrate hardship in
12 filing electronically may petition the Department to waive the
13 electronic filing requirement.
14 The Department may require returns to be filed on a
15 quarterly basis. If so required, a return for each calendar
16 quarter shall be filed on or before the twentieth day of the
17 calendar month following the end of such calendar quarter. The
18 taxpayer shall also file a return with the Department for each
19 of the first two months of each calendar quarter, on or before
20 the twentieth day of the following calendar month, stating:
21 1. The name of the seller;
22 2. The address of the principal place of business from
23 which he engages in business as a serviceman in this
24 State;
25 3. The total amount of taxable receipts received by
26 him during the preceding calendar month, including
HB2755 Enrolled - 65 - LRB104 08253 BDA 18303 b
1 receipts from charge and time sales, but less all
2 deductions allowed by law;
3 4. The amount of credit provided in Section 2d of this
4 Act;
5 5. The amount of tax due;
6 5-5. The signature of the taxpayer; and
7 6. Such other reasonable information as the Department
8 may require.
9 Each serviceman required or authorized to collect the tax
10 herein imposed on aviation fuel acquired as an incident to the
11 purchase of a service in this State during the preceding
12 calendar month shall, instead of reporting and paying tax as
13 otherwise required by this Section, report and pay such tax on
14 a separate aviation fuel tax return. The requirements related
15 to the return shall be as otherwise provided in this Section.
16 Notwithstanding any other provisions of this Act to the
17 contrary, servicemen transferring aviation fuel incident to
18 sales of service shall file all aviation fuel tax returns and
19 shall make all aviation fuel tax payments by electronic means
20 in the manner and form required by the Department. For
21 purposes of this Section, "aviation fuel" means jet fuel and
22 aviation gasoline.
23 If a taxpayer fails to sign a return within 30 days after
24 the proper notice and demand for signature by the Department,
25 the return shall be considered valid and any amount shown to be
26 due on the return shall be deemed assessed.
HB2755 Enrolled - 66 - LRB104 08253 BDA 18303 b
1 Notwithstanding any other provision of this Act to the
2 contrary, servicemen subject to tax on cannabis shall file all
3 cannabis tax returns and shall make all cannabis tax payments
4 by electronic means in the manner and form required by the
5 Department.
6 Prior to October 1, 2003, and on and after September 1,
7 2004 a serviceman may accept a Manufacturer's Purchase Credit
8 certification from a purchaser in satisfaction of Service Use
9 Tax as provided in Section 3-70 of the Service Use Tax Act if
10 the purchaser provides the appropriate documentation as
11 required by Section 3-70 of the Service Use Tax Act. A
12 Manufacturer's Purchase Credit certification, accepted prior
13 to October 1, 2003 or on or after September 1, 2004 by a
14 serviceman as provided in Section 3-70 of the Service Use Tax
15 Act, may be used by that serviceman to satisfy Service
16 Occupation Tax liability in the amount claimed in the
17 certification, not to exceed 6.25% of the receipts subject to
18 tax from a qualifying purchase. A Manufacturer's Purchase
19 Credit reported on any original or amended return filed under
20 this Act after October 20, 2003 for reporting periods prior to
21 September 1, 2004 shall be disallowed. Manufacturer's Purchase
22 Credit reported on annual returns due on or after January 1,
23 2005 will be disallowed for periods prior to September 1,
24 2004. No Manufacturer's Purchase Credit may be used after
25 September 30, 2003 through August 31, 2004 to satisfy any tax
26 liability imposed under this Act, including any audit
HB2755 Enrolled - 67 - LRB104 08253 BDA 18303 b
1 liability.
2 Beginning on July 1, 2023 and through December 31, 2032, a
3 serviceman may accept a Sustainable Aviation Fuel Purchase
4 Credit certification from an air common carrier-purchaser in
5 satisfaction of Service Use Tax as provided in Section 3-72 of
6 the Service Use Tax Act if the purchaser provides the
7 appropriate documentation as required by Section 3-72 of the
8 Service Use Tax Act. A Sustainable Aviation Fuel Purchase
9 Credit certification accepted by a serviceman in accordance
10 with this paragraph may be used by that serviceman to satisfy
11 service occupation tax liability (but not in satisfaction of
12 penalty or interest) in the amount claimed in the
13 certification, not to exceed 6.25% of the receipts subject to
14 tax from a sale of aviation fuel. In addition, for a sale of
15 aviation fuel to qualify to earn the Sustainable Aviation Fuel
16 Purchase Credit, servicemen must retain in their books and
17 records a certification from the producer of the aviation fuel
18 that the aviation fuel sold by the serviceman and for which a
19 sustainable aviation fuel purchase credit was earned meets the
20 definition of sustainable aviation fuel under Section 3-72 of
21 the Service Use Tax Act. The documentation must include detail
22 sufficient for the Department to determine the number of
23 gallons of sustainable aviation fuel sold.
24 If the serviceman's average monthly tax liability to the
25 Department does not exceed $200, the Department may authorize
26 his returns to be filed on a quarter annual basis, with the
HB2755 Enrolled - 68 - LRB104 08253 BDA 18303 b
1 return for January, February, and March of a given year being
2 due by April 20 of such year; with the return for April, May,
3 and June of a given year being due by July 20 of such year;
4 with the return for July, August, and September of a given year
5 being due by October 20 of such year, and with the return for
6 October, November, and December of a given year being due by
7 January 20 of the following year.
8 If the serviceman's average monthly tax liability to the
9 Department does not exceed $50, the Department may authorize
10 his returns to be filed on an annual basis, with the return for
11 a given year being due by January 20 of the following year.
12 Such quarter annual and annual returns, as to form and
13 substance, shall be subject to the same requirements as
14 monthly returns.
15 Notwithstanding any other provision in this Act concerning
16 the time within which a serviceman may file his return, in the
17 case of any serviceman who ceases to engage in a kind of
18 business which makes him responsible for filing returns under
19 this Act, such serviceman shall file a final return under this
20 Act with the Department not more than one month after
21 discontinuing such business.
22 Beginning October 1, 1993, a taxpayer who has an average
23 monthly tax liability of $150,000 or more shall make all
24 payments required by rules of the Department by electronic
25 funds transfer. Beginning October 1, 1994, a taxpayer who has
26 an average monthly tax liability of $100,000 or more shall
HB2755 Enrolled - 69 - LRB104 08253 BDA 18303 b
1 make all payments required by rules of the Department by
2 electronic funds transfer. Beginning October 1, 1995, a
3 taxpayer who has an average monthly tax liability of $50,000
4 or more shall make all payments required by rules of the
5 Department by electronic funds transfer. Beginning October 1,
6 2000, a taxpayer who has an annual tax liability of $200,000 or
7 more shall make all payments required by rules of the
8 Department by electronic funds transfer. The term "annual tax
9 liability" shall be the sum of the taxpayer's liabilities
10 under this Act, and under all other State and local occupation
11 and use tax laws administered by the Department, for the
12 immediately preceding calendar year. The term "average monthly
13 tax liability" means the sum of the taxpayer's liabilities
14 under this Act, and under all other State and local occupation
15 and use tax laws administered by the Department, for the
16 immediately preceding calendar year divided by 12. Beginning
17 on October 1, 2002, a taxpayer who has a tax liability in the
18 amount set forth in subsection (b) of Section 2505-210 of the
19 Department of Revenue Law shall make all payments required by
20 rules of the Department by electronic funds transfer.
21 Before August 1 of each year beginning in 1993, the
22 Department shall notify all taxpayers required to make
23 payments by electronic funds transfer. All taxpayers required
24 to make payments by electronic funds transfer shall make those
25 payments for a minimum of one year beginning on October 1.
26 Any taxpayer not required to make payments by electronic
HB2755 Enrolled - 70 - LRB104 08253 BDA 18303 b
1 funds transfer may make payments by electronic funds transfer
2 with the permission of the Department.
3 All taxpayers required to make payment by electronic funds
4 transfer and any taxpayers authorized to voluntarily make
5 payments by electronic funds transfer shall make those
6 payments in the manner authorized by the Department.
7 The Department shall adopt such rules as are necessary to
8 effectuate a program of electronic funds transfer and the
9 requirements of this Section.
10 Where a serviceman collects the tax with respect to the
11 selling price of tangible personal property which he sells and
12 the purchaser thereafter returns such tangible personal
13 property and the serviceman refunds the selling price thereof
14 to the purchaser, such serviceman shall also refund, to the
15 purchaser, the tax so collected from the purchaser. When
16 filing his return for the period in which he refunds such tax
17 to the purchaser, the serviceman may deduct the amount of the
18 tax so refunded by him to the purchaser from any other Service
19 Occupation Tax, Service Use Tax, Retailers' Occupation Tax, or
20 Use Tax which such serviceman may be required to pay or remit
21 to the Department, as shown by such return, provided that the
22 amount of the tax to be deducted shall previously have been
23 remitted to the Department by such serviceman. If the
24 serviceman shall not previously have remitted the amount of
25 such tax to the Department, he shall be entitled to no
26 deduction hereunder upon refunding such tax to the purchaser.
HB2755 Enrolled - 71 - LRB104 08253 BDA 18303 b
1 If experience indicates such action to be practicable, the
2 Department may prescribe and furnish a combination or joint
3 return which will enable servicemen, who are required to file
4 returns hereunder and also under the Retailers' Occupation Tax
5 Act, the Use Tax Act, or the Service Use Tax Act, to furnish
6 all the return information required by all said Acts on the one
7 form.
8 Where the serviceman has more than one business registered
9 with the Department under separate registrations hereunder,
10 such serviceman shall file separate returns for each
11 registered business.
12 Beginning January 1, 1990, each month the Department shall
13 pay into the Local Government Tax Fund the revenue realized
14 for the preceding month from the 1% tax imposed under this Act.
15 Beginning January 1, 1990, each month the Department shall
16 pay into the County and Mass Transit District Fund 4% of the
17 revenue realized for the preceding month from the 6.25%
18 general rate on sales of tangible personal property other than
19 aviation fuel sold on or after December 1, 2019. This
20 exception for aviation fuel only applies for so long as the
21 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
22 47133 are binding on the State.
23 Beginning August 1, 2000, each month the Department shall
24 pay into the County and Mass Transit District Fund 20% of the
25 net revenue realized for the preceding month from the 1.25%
26 rate on the selling price of motor fuel and gasohol.
HB2755 Enrolled - 72 - LRB104 08253 BDA 18303 b
1 Beginning January 1, 1990, each month the Department shall
2 pay into the Local Government Tax Fund 16% of the revenue
3 realized for the preceding month from the 6.25% general rate
4 on transfers of tangible personal property other than aviation
5 fuel sold on or after December 1, 2019. This exception for
6 aviation fuel only applies for so long as the revenue use
7 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
8 binding on the State.
9 For aviation fuel sold on or after December 1, 2019, each
10 month the Department shall pay into the State Aviation Program
11 Fund 20% of the net revenue realized for the preceding month
12 from the 6.25% general rate on the selling price of aviation
13 fuel, less an amount estimated by the Department to be
14 required for refunds of the 20% portion of the tax on aviation
15 fuel under this Act, which amount shall be deposited into the
16 Aviation Fuel Sales Tax Refund Fund. The Department shall only
17 pay moneys into the State Aviation Program Fund and the
18 Aviation Fuel Sales Tax Refund Fund under this Act for so long
19 as the revenue use requirements of 49 U.S.C. 47107(b) and 49
20 U.S.C. 47133 are binding on the State.
21 Beginning August 1, 2000, each month the Department shall
22 pay into the Local Government Tax Fund 80% of the net revenue
23 realized for the preceding month from the 1.25% rate on the
24 selling price of motor fuel and gasohol.
25 Beginning October 1, 2009, each month the Department shall
26 pay into the Capital Projects Fund an amount that is equal to
HB2755 Enrolled - 73 - LRB104 08253 BDA 18303 b
1 an amount estimated by the Department to represent 80% of the
2 net revenue realized for the preceding month from the sale of
3 candy, grooming and hygiene products, and soft drinks that had
4 been taxed at a rate of 1% prior to September 1, 2009 but that
5 are now taxed at 6.25%.
6 Beginning July 1, 2013, each month the Department shall
7 pay into the Underground Storage Tank Fund from the proceeds
8 collected under this Act, the Use Tax Act, the Service Use Tax
9 Act, and the Retailers' Occupation Tax Act an amount equal to
10 the average monthly deficit in the Underground Storage Tank
11 Fund during the prior year, as certified annually by the
12 Illinois Environmental Protection Agency, but the total
13 payment into the Underground Storage Tank Fund under this Act,
14 the Use Tax Act, the Service Use Tax Act, and the Retailers'
15 Occupation Tax Act shall not exceed $18,000,000 in any State
16 fiscal year. As used in this paragraph, the "average monthly
17 deficit" shall be equal to the difference between the average
18 monthly claims for payment by the fund and the average monthly
19 revenues deposited into the fund, excluding payments made
20 pursuant to this paragraph.
21 Beginning July 1, 2015, of the remainder of the moneys
22 received by the Department under the Use Tax Act, the Service
23 Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
24 each month the Department shall deposit $500,000 into the
25 State Crime Laboratory Fund.
26 Of the remainder of the moneys received by the Department
HB2755 Enrolled - 74 - LRB104 08253 BDA 18303 b
1 pursuant to this Act, (a) 1.75% thereof shall be paid into the
2 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
3 and after July 1, 1989, 3.8% thereof shall be paid into the
4 Build Illinois Fund; provided, however, that if in any fiscal
5 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
6 may be, of the moneys received by the Department and required
7 to be paid into the Build Illinois Fund pursuant to Section 3
8 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
9 Act, Section 9 of the Service Use Tax Act, and Section 9 of the
10 Service Occupation Tax Act, such Acts being hereinafter called
11 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
12 may be, of moneys being hereinafter called the "Tax Act
13 Amount", and (2) the amount transferred to the Build Illinois
14 Fund from the State and Local Sales Tax Reform Fund shall be
15 less than the Annual Specified Amount (as defined in Section 3
16 of the Retailers' Occupation Tax Act), an amount equal to the
17 difference shall be immediately paid into the Build Illinois
18 Fund from other moneys received by the Department pursuant to
19 the Tax Acts; and further provided, that if on the last
20 business day of any month the sum of (1) the Tax Act Amount
21 required to be deposited into the Build Illinois Account in
22 the Build Illinois Fund during such month and (2) the amount
23 transferred during such month to the Build Illinois Fund from
24 the State and Local Sales Tax Reform Fund shall have been less
25 than 1/12 of the Annual Specified Amount, an amount equal to
26 the difference shall be immediately paid into the Build
HB2755 Enrolled - 75 - LRB104 08253 BDA 18303 b
1 Illinois Fund from other moneys received by the Department
2 pursuant to the Tax Acts; and, further provided, that in no
3 event shall the payments required under the preceding proviso
4 result in aggregate payments into the Build Illinois Fund
5 pursuant to this clause (b) for any fiscal year in excess of
6 the greater of (i) the Tax Act Amount or (ii) the Annual
7 Specified Amount for such fiscal year; and, further provided,
8 that the amounts payable into the Build Illinois Fund under
9 this clause (b) shall be payable only until such time as the
10 aggregate amount on deposit under each trust indenture
11 securing Bonds issued and outstanding pursuant to the Build
12 Illinois Bond Act is sufficient, taking into account any
13 future investment income, to fully provide, in accordance with
14 such indenture, for the defeasance of or the payment of the
15 principal of, premium, if any, and interest on the Bonds
16 secured by such indenture and on any Bonds expected to be
17 issued thereafter and all fees and costs payable with respect
18 thereto, all as certified by the Director of the Bureau of the
19 Budget (now Governor's Office of Management and Budget). If on
20 the last business day of any month in which Bonds are
21 outstanding pursuant to the Build Illinois Bond Act, the
22 aggregate of the moneys deposited in the Build Illinois Bond
23 Account in the Build Illinois Fund in such month shall be less
24 than the amount required to be transferred in such month from
25 the Build Illinois Bond Account to the Build Illinois Bond
26 Retirement and Interest Fund pursuant to Section 13 of the
HB2755 Enrolled - 76 - LRB104 08253 BDA 18303 b
1 Build Illinois Bond Act, an amount equal to such deficiency
2 shall be immediately paid from other moneys received by the
3 Department pursuant to the Tax Acts to the Build Illinois
4 Fund; provided, however, that any amounts paid to the Build
5 Illinois Fund in any fiscal year pursuant to this sentence
6 shall be deemed to constitute payments pursuant to clause (b)
7 of the preceding sentence and shall reduce the amount
8 otherwise payable for such fiscal year pursuant to clause (b)
9 of the preceding sentence. The moneys received by the
10 Department pursuant to this Act and required to be deposited
11 into the Build Illinois Fund are subject to the pledge, claim
12 and charge set forth in Section 12 of the Build Illinois Bond
13 Act.
14 Subject to payment of amounts into the Build Illinois Fund
15 as provided in the preceding paragraph or in any amendment
16 thereto hereafter enacted, the following specified monthly
17 installment of the amount requested in the certificate of the
18 Chairman of the Metropolitan Pier and Exposition Authority
19 provided under Section 8.25f of the State Finance Act, but not
20 in excess of the sums designated as "Total Deposit", shall be
21 deposited in the aggregate from collections under Section 9 of
22 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
23 9 of the Service Occupation Tax Act, and Section 3 of the
24 Retailers' Occupation Tax Act into the McCormick Place
25 Expansion Project Fund in the specified fiscal years.
HB2755 Enrolled - 77 - LRB104 08253 BDA 18303 b
1 Fiscal Year Total Deposit
$0
2 1993
53,000,000
3 1994 58,000,000
61,000,000
4 1995 64,000,000
68,000,000
5 1996 71,000,000
75,000,000
6 1997 80,000,000
93,000,000
7 1998 99,000,000
103,000,000
8 1999 108,000,000
113,000,000
9 2000 119,000,000
126,000,000
10 2001 132,000,000
139,000,000
11 2002 146,000,000
153,000,000
12 2003 161,000,000
170,000,000
13 2004 179,000,000
189,000,000
14 2005 199,000,000
15 2006
16 2007
17 2008
18 2009
19 2010
20 2011
21 2012
22 2013
23 2014
24 2015
25 2016
26 2017
HB2755 Enrolled - 78 - LRB104 08253 BDA 18303 b
1 2018 210,000,000
221,000,000
2 2019 233,000,000
300,000,000
3 2020 300,000,000
300,000,000
4 2021 300,000,000
300,000,000
5 2022 300,000,000
375,000,000
6 2023 375,000,000
375,000,000
7 2024 375,000,000
375,000,000
8 2025 375,000,000
375,000,000
9 2026 375,000,000
375,000,000
10 2027 450,000,000
11 2028
12 2029
13 2030
14 2031
15 2032
16 2033
17 2034
18 2035
19 2036
20 and
21 each fiscal year
22 thereafter that bonds
23 are outstanding under
24 Section 13.2 of the
25 Metropolitan Pier and
26 Exposition Authority Act,
HB2755 Enrolled - 79 - LRB104 08253 BDA 18303 b
1 but not after fiscal year 2060.
2 Beginning July 20, 1993 and in each month of each fiscal
3 year thereafter, one-eighth of the amount requested in the
4 certificate of the Chairman of the Metropolitan Pier and
5 Exposition Authority for that fiscal year, less the amount
6 deposited into the McCormick Place Expansion Project Fund by
7 the State Treasurer in the respective month under subsection
8 (g) of Section 13 of the Metropolitan Pier and Exposition
9 Authority Act, plus cumulative deficiencies in the deposits
10 required under this Section for previous months and years,
11 shall be deposited into the McCormick Place Expansion Project
12 Fund, until the full amount requested for the fiscal year, but
13 not in excess of the amount specified above as "Total
14 Deposit", has been deposited.
15 Subject to payment of amounts into the Capital Projects
16 Fund, the Build Illinois Fund, and the McCormick Place
17 Expansion Project Fund pursuant to the preceding paragraphs or
18 in any amendments thereto hereafter enacted, for aviation fuel
19 sold on or after December 1, 2019, the Department shall each
20 month deposit into the Aviation Fuel Sales Tax Refund Fund an
21 amount estimated by the Department to be required for refunds
22 of the 80% portion of the tax on aviation fuel under this Act.
23 The Department shall only deposit moneys into the Aviation
24 Fuel Sales Tax Refund Fund under this paragraph for so long as
25 the revenue use requirements of 49 U.S.C. 47107(b) and 49
26 U.S.C. 47133 are binding on the State.
HB2755 Enrolled - 80 - LRB104 08253 BDA 18303 b
1 Subject to payment of amounts into the Build Illinois Fund
2 and the McCormick Place Expansion Project Fund pursuant to the
3 preceding paragraphs or in any amendments thereto hereafter
4 enacted, beginning July 1, 1993 and ending on September 30,
5 2013, the Department shall each month pay into the Illinois
6 Tax Increment Fund 0.27% of 80% of the net revenue realized for
7 the preceding month from the 6.25% general rate on the selling
8 price of tangible personal property.
9 Subject to payment of amounts into the Build Illinois
10 Fund, the McCormick Place Expansion Project Fund, and the
11 Illinois Tax Increment Fund pursuant to the preceding
12 paragraphs or in any amendments to this Section hereafter
13 enacted, beginning on the first day of the first calendar
14 month to occur on or after August 26, 2014 (the effective date
15 of Public Act 98-1098), each month, from the collections made
16 under Section 9 of the Use Tax Act, Section 9 of the Service
17 Use Tax Act, Section 9 of the Service Occupation Tax Act, and
18 Section 3 of the Retailers' Occupation Tax Act, the Department
19 shall pay into the Tax Compliance and Administration Fund, to
20 be used, subject to appropriation, to fund additional auditors
21 and compliance personnel at the Department of Revenue, an
22 amount equal to 1/12 of 5% of 80% of the cash receipts
23 collected during the preceding fiscal year by the Audit Bureau
24 of the Department under the Use Tax Act, the Service Use Tax
25 Act, the Service Occupation Tax Act, the Retailers' Occupation
26 Tax Act, and associated local occupation and use taxes
HB2755 Enrolled - 81 - LRB104 08253 BDA 18303 b
1 administered by the Department.
2 Subject to payments of amounts into the Build Illinois
3 Fund, the McCormick Place Expansion Project Fund, the Illinois
4 Tax Increment Fund, and the Tax Compliance and Administration
5 Fund as provided in this Section, beginning on July 1, 2018 the
6 Department shall pay each month into the Downstate Public
7 Transportation Fund the moneys required to be so paid under
8 Section 2-3 of the Downstate Public Transportation Act.
9 Subject to successful execution and delivery of a
10 public-private agreement between the public agency and private
11 entity and completion of the civic build, beginning on July 1,
12 2023, of the remainder of the moneys received by the
13 Department under the Use Tax Act, the Service Use Tax Act, the
14 Service Occupation Tax Act, and this Act, the Department shall
15 deposit the following specified deposits in the aggregate from
16 collections under the Use Tax Act, the Service Use Tax Act, the
17 Service Occupation Tax Act, and the Retailers' Occupation Tax
18 Act, as required under Section 8.25g of the State Finance Act
19 for distribution consistent with the Public-Private
20 Partnership for Civic and Transit Infrastructure Project Act.
21 The moneys received by the Department pursuant to this Act and
22 required to be deposited into the Civic and Transit
23 Infrastructure Fund are subject to the pledge, claim and
24 charge set forth in Section 25-55 of the Public-Private
25 Partnership for Civic and Transit Infrastructure Project Act.
26 As used in this paragraph, "civic build", "private entity",
HB2755 Enrolled - 82 - LRB104 08253 BDA 18303 b
1 "public-private agreement", and "public agency" have the
2 meanings provided in Section 25-10 of the Public-Private
3 Partnership for Civic and Transit Infrastructure Project Act.
4 Fiscal Year ............................ Total Deposit
5 2024 .................................... $200,000,000
6 2025 .................................... $206,000,000
7 2026 .................................... $212,200,000
8 2027 .................................... $218,500,000
9 2028 .................................... $225,100,000
10 2029 .................................... $288,700,000
11 2030 .................................... $298,900,000
12 2031 .................................... $309,300,000
13 2032 .................................... $320,100,000
14 2033 .................................... $331,200,000
15 2034 .................................... $341,200,000
16 2035 .................................... $351,400,000
17 2036 .................................... $361,900,000
18 2037 .................................... $372,800,000
19 2038 .................................... $384,000,000
20 2039 .................................... $395,500,000
21 2040 .................................... $407,400,000
22 2041 .................................... $419,600,000
23 2042 .................................... $432,200,000
24 2043 .................................... $445,100,000
25 Beginning July 1, 2021 and until July 1, 2022, subject to
26 the payment of amounts into the County and Mass Transit
HB2755 Enrolled - 83 - LRB104 08253 BDA 18303 b
1 District Fund, the Local Government Tax Fund, the Build
2 Illinois Fund, the McCormick Place Expansion Project Fund, the
3 Illinois Tax Increment Fund, and the Tax Compliance and
4 Administration Fund as provided in this Section, the
5 Department shall pay each month into the Road Fund the amount
6 estimated to represent 16% of the net revenue realized from
7 the taxes imposed on motor fuel and gasohol. Beginning July 1,
8 2022 and until July 1, 2023, subject to the payment of amounts
9 into the County and Mass Transit District Fund, the Local
10 Government Tax Fund, the Build Illinois Fund, the McCormick
11 Place Expansion Project Fund, the Illinois Tax Increment Fund,
12 and the Tax Compliance and Administration Fund as provided in
13 this Section, the Department shall pay each month into the
14 Road Fund the amount estimated to represent 32% of the net
15 revenue realized from the taxes imposed on motor fuel and
16 gasohol. Beginning July 1, 2023 and until July 1, 2024,
17 subject to the payment of amounts into the County and Mass
18 Transit District Fund, the Local Government Tax Fund, the
19 Build Illinois Fund, the McCormick Place Expansion Project
20 Fund, the Illinois Tax Increment Fund, and the Tax Compliance
21 and Administration Fund as provided in this Section, the
22 Department shall pay each month into the Road Fund the amount
23 estimated to represent 48% of the net revenue realized from
24 the taxes imposed on motor fuel and gasohol. Beginning July 1,
25 2024 and until July 1, 2026 July 1, 2025, subject to the
26 payment of amounts into the County and Mass Transit District
HB2755 Enrolled - 84 - LRB104 08253 BDA 18303 b
1 Fund, the Local Government Tax Fund, the Build Illinois Fund,
2 the McCormick Place Expansion Project Fund, the Illinois Tax
3 Increment Fund, and the Tax Compliance and Administration Fund
4 as provided in this Section, the Department shall pay each
5 month into the Road Fund the amount estimated to represent 64%
6 of the net revenue realized from the taxes imposed on motor
7 fuel and gasohol. Beginning on July 1, 2026 July 1, 2025,
8 subject to the payment of amounts into the County and Mass
9 Transit District Fund, the Local Government Tax Fund, the
10 Build Illinois Fund, the McCormick Place Expansion Project
11 Fund, the Illinois Tax Increment Fund, and the Tax Compliance
12 and Administration Fund as provided in this Section, the
13 Department shall pay each month into the Road Fund the amount
14 estimated to represent 80% of the net revenue realized from
15 the taxes imposed on motor fuel and gasohol. As used in this
16 paragraph "motor fuel" has the meaning given to that term in
17 Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
18 meaning given to that term in Section 3-40 of the Use Tax Act.
19 Of the remainder of the moneys received by the Department
20 pursuant to this Act, 75% shall be paid into the General
21 Revenue Fund of the State treasury and 25% shall be reserved in
22 a special account and used only for the transfer to the Common
23 School Fund as part of the monthly transfer from the General
24 Revenue Fund in accordance with Section 8a of the State
25 Finance Act.
26 The Department may, upon separate written notice to a
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1 taxpayer, require the taxpayer to prepare and file with the
2 Department on a form prescribed by the Department within not
3 less than 60 days after receipt of the notice an annual
4 information return for the tax year specified in the notice.
5 Such annual return to the Department shall include a statement
6 of gross receipts as shown by the taxpayer's last federal
7 income tax return. If the total receipts of the business as
8 reported in the federal income tax return do not agree with the
9 gross receipts reported to the Department of Revenue for the
10 same period, the taxpayer shall attach to his annual return a
11 schedule showing a reconciliation of the 2 amounts and the
12 reasons for the difference. The taxpayer's annual return to
13 the Department shall also disclose the cost of goods sold by
14 the taxpayer during the year covered by such return, opening
15 and closing inventories of such goods for such year, cost of
16 goods used from stock or taken from stock and given away by the
17 taxpayer during such year, pay roll information of the
18 taxpayer's business during such year and any additional
19 reasonable information which the Department deems would be
20 helpful in determining the accuracy of the monthly, quarterly
21 or annual returns filed by such taxpayer as hereinbefore
22 provided for in this Section.
23 If the annual information return required by this Section
24 is not filed when and as required, the taxpayer shall be liable
25 as follows:
26 (i) Until January 1, 1994, the taxpayer shall be
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1 liable for a penalty equal to 1/6 of 1% of the tax due from
2 such taxpayer under this Act during the period to be
3 covered by the annual return for each month or fraction of
4 a month until such return is filed as required, the
5 penalty to be assessed and collected in the same manner as
6 any other penalty provided for in this Act.
7 (ii) On and after January 1, 1994, the taxpayer shall
8 be liable for a penalty as described in Section 3-4 of the
9 Uniform Penalty and Interest Act.
10 The chief executive officer, proprietor, owner, or highest
11 ranking manager shall sign the annual return to certify the
12 accuracy of the information contained therein. Any person who
13 willfully signs the annual return containing false or
14 inaccurate information shall be guilty of perjury and punished
15 accordingly. The annual return form prescribed by the
16 Department shall include a warning that the person signing the
17 return may be liable for perjury.
18 The foregoing portion of this Section concerning the
19 filing of an annual information return shall not apply to a
20 serviceman who is not required to file an income tax return
21 with the United States Government.
22 As soon as possible after the first day of each month, upon
23 certification of the Department of Revenue, the Comptroller
24 shall order transferred and the Treasurer shall transfer from
25 the General Revenue Fund to the Motor Fuel Tax Fund an amount
26 equal to 1.7% of 80% of the net revenue realized under this Act
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1 for the second preceding month. Beginning April 1, 2000, this
2 transfer is no longer required and shall not be made.
3 Net revenue realized for a month shall be the revenue
4 collected by the State pursuant to this Act, less the amount
5 paid out during that month as refunds to taxpayers for
6 overpayment of liability.
7 For greater simplicity of administration, it shall be
8 permissible for manufacturers, importers and wholesalers whose
9 products are sold by numerous servicemen in Illinois, and who
10 wish to do so, to assume the responsibility for accounting and
11 paying to the Department all tax accruing under this Act with
12 respect to such sales, if the servicemen who are affected do
13 not make written objection to the Department to this
14 arrangement.
15 (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
16 103-363, eff. 7-28-23; 103-592, eff. 6-7-24; 103-605, eff.
17 7-1-24.)
18 Section 5-25. The Retailers' Occupation Tax Act is amended
19 by changing Section 3 as follows:
20 (35 ILCS 120/3)
21 Sec. 3. Except as provided in this Section, on or before
22 the twentieth day of each calendar month, every person engaged
23 in the business of selling, which, on and after January 1,
24 2025, includes leasing, tangible personal property at retail
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1 in this State during the preceding calendar month shall file a
2 return with the Department, stating:
3 1. The name of the seller;
4 2. His residence address and the address of his
5 principal place of business and the address of the
6 principal place of business (if that is a different
7 address) from which he engages in the business of selling
8 tangible personal property at retail in this State;
9 3. Total amount of receipts received by him during the
10 preceding calendar month or quarter, as the case may be,
11 from sales of tangible personal property, and from
12 services furnished, by him during such preceding calendar
13 month or quarter;
14 4. Total amount received by him during the preceding
15 calendar month or quarter on charge and time sales of
16 tangible personal property, and from services furnished,
17 by him prior to the month or quarter for which the return
18 is filed;
19 5. Deductions allowed by law;
20 6. Gross receipts which were received by him during
21 the preceding calendar month or quarter and upon the basis
22 of which the tax is imposed, including gross receipts on
23 food for human consumption that is to be consumed off the
24 premises where it is sold (other than alcoholic beverages,
25 food consisting of or infused with adult use cannabis,
26 soft drinks, and food that has been prepared for immediate
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1 consumption) which were received during the preceding
2 calendar month or quarter and upon which tax would have
3 been due but for the 0% rate imposed under Public Act
4 102-700;
5 7. The amount of credit provided in Section 2d of this
6 Act;
7 8. The amount of tax due, including the amount of tax
8 that would have been due on food for human consumption
9 that is to be consumed off the premises where it is sold
10 (other than alcoholic beverages, food consisting of or
11 infused with adult use cannabis, soft drinks, and food
12 that has been prepared for immediate consumption) but for
13 the 0% rate imposed under Public Act 102-700;
14 9. The signature of the taxpayer; and
15 10. Such other reasonable information as the
16 Department may require.
17 In the case of leases, except as otherwise provided in
18 this Act, the lessor must remit for each tax return period only
19 the tax applicable to that part of the selling price actually
20 received during such tax return period.
21 On and after January 1, 2018, except for returns required
22 to be filed prior to January 1, 2023 for motor vehicles,
23 watercraft, aircraft, and trailers that are required to be
24 registered with an agency of this State, with respect to
25 retailers whose annual gross receipts average $20,000 or more,
26 all returns required to be filed pursuant to this Act shall be
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1 filed electronically. On and after January 1, 2023, with
2 respect to retailers whose annual gross receipts average
3 $20,000 or more, all returns required to be filed pursuant to
4 this Act, including, but not limited to, returns for motor
5 vehicles, watercraft, aircraft, and trailers that are required
6 to be registered with an agency of this State, shall be filed
7 electronically. Retailers who demonstrate that they do not
8 have access to the Internet or demonstrate hardship in filing
9 electronically may petition the Department to waive the
10 electronic filing requirement.
11 If a taxpayer fails to sign a return within 30 days after
12 the proper notice and demand for signature by the Department,
13 the return shall be considered valid and any amount shown to be
14 due on the return shall be deemed assessed.
15 Each return shall be accompanied by the statement of
16 prepaid tax issued pursuant to Section 2e for which credit is
17 claimed.
18 Prior to October 1, 2003 and on and after September 1,
19 2004, a retailer may accept a Manufacturer's Purchase Credit
20 certification from a purchaser in satisfaction of Use Tax as
21 provided in Section 3-85 of the Use Tax Act if the purchaser
22 provides the appropriate documentation as required by Section
23 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
24 certification, accepted by a retailer prior to October 1, 2003
25 and on and after September 1, 2004 as provided in Section 3-85
26 of the Use Tax Act, may be used by that retailer to satisfy
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1 Retailers' Occupation Tax liability in the amount claimed in
2 the certification, not to exceed 6.25% of the receipts subject
3 to tax from a qualifying purchase. A Manufacturer's Purchase
4 Credit reported on any original or amended return filed under
5 this Act after October 20, 2003 for reporting periods prior to
6 September 1, 2004 shall be disallowed. Manufacturer's Purchase
7 Credit reported on annual returns due on or after January 1,
8 2005 will be disallowed for periods prior to September 1,
9 2004. No Manufacturer's Purchase Credit may be used after
10 September 30, 2003 through August 31, 2004 to satisfy any tax
11 liability imposed under this Act, including any audit
12 liability.
13 Beginning on July 1, 2023 and through December 31, 2032, a
14 retailer may accept a Sustainable Aviation Fuel Purchase
15 Credit certification from an air common carrier-purchaser in
16 satisfaction of Use Tax on aviation fuel as provided in
17 Section 3-87 of the Use Tax Act if the purchaser provides the
18 appropriate documentation as required by Section 3-87 of the
19 Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
20 certification accepted by a retailer in accordance with this
21 paragraph may be used by that retailer to satisfy Retailers'
22 Occupation Tax liability (but not in satisfaction of penalty
23 or interest) in the amount claimed in the certification, not
24 to exceed 6.25% of the receipts subject to tax from a sale of
25 aviation fuel. In addition, for a sale of aviation fuel to
26 qualify to earn the Sustainable Aviation Fuel Purchase Credit,
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1 retailers must retain in their books and records a
2 certification from the producer of the aviation fuel that the
3 aviation fuel sold by the retailer and for which a sustainable
4 aviation fuel purchase credit was earned meets the definition
5 of sustainable aviation fuel under Section 3-87 of the Use Tax
6 Act. The documentation must include detail sufficient for the
7 Department to determine the number of gallons of sustainable
8 aviation fuel sold.
9 The Department may require returns to be filed on a
10 quarterly basis. If so required, a return for each calendar
11 quarter shall be filed on or before the twentieth day of the
12 calendar month following the end of such calendar quarter. The
13 taxpayer shall also file a return with the Department for each
14 of the first 2 months of each calendar quarter, on or before
15 the twentieth day of the following calendar month, stating:
16 1. The name of the seller;
17 2. The address of the principal place of business from
18 which he engages in the business of selling tangible
19 personal property at retail in this State;
20 3. The total amount of taxable receipts received by
21 him during the preceding calendar month from sales of
22 tangible personal property by him during such preceding
23 calendar month, including receipts from charge and time
24 sales, but less all deductions allowed by law;
25 4. The amount of credit provided in Section 2d of this
26 Act;
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1 5. The amount of tax due; and
2 6. Such other reasonable information as the Department
3 may require.
4 Every person engaged in the business of selling aviation
5 fuel at retail in this State during the preceding calendar
6 month shall, instead of reporting and paying tax as otherwise
7 required by this Section, report and pay such tax on a separate
8 aviation fuel tax return. The requirements related to the
9 return shall be as otherwise provided in this Section.
10 Notwithstanding any other provisions of this Act to the
11 contrary, retailers selling aviation fuel shall file all
12 aviation fuel tax returns and shall make all aviation fuel tax
13 payments by electronic means in the manner and form required
14 by the Department. For purposes of this Section, "aviation
15 fuel" means jet fuel and aviation gasoline.
16 Beginning on October 1, 2003, any person who is not a
17 licensed distributor, importing distributor, or manufacturer,
18 as defined in the Liquor Control Act of 1934, but is engaged in
19 the business of selling, at retail, alcoholic liquor shall
20 file a statement with the Department of Revenue, in a format
21 and at a time prescribed by the Department, showing the total
22 amount paid for alcoholic liquor purchased during the
23 preceding month and such other information as is reasonably
24 required by the Department. The Department may adopt rules to
25 require that this statement be filed in an electronic or
26 telephonic format. Such rules may provide for exceptions from
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1 the filing requirements of this paragraph. For the purposes of
2 this paragraph, the term "alcoholic liquor" shall have the
3 meaning prescribed in the Liquor Control Act of 1934.
4 Beginning on October 1, 2003, every distributor, importing
5 distributor, and manufacturer of alcoholic liquor as defined
6 in the Liquor Control Act of 1934, shall file a statement with
7 the Department of Revenue, no later than the 10th day of the
8 month for the preceding month during which transactions
9 occurred, by electronic means, showing the total amount of
10 gross receipts from the sale of alcoholic liquor sold or
11 distributed during the preceding month to purchasers;
12 identifying the purchaser to whom it was sold or distributed;
13 the purchaser's tax registration number; and such other
14 information reasonably required by the Department. A
15 distributor, importing distributor, or manufacturer of
16 alcoholic liquor must personally deliver, mail, or provide by
17 electronic means to each retailer listed on the monthly
18 statement a report containing a cumulative total of that
19 distributor's, importing distributor's, or manufacturer's
20 total sales of alcoholic liquor to that retailer no later than
21 the 10th day of the month for the preceding month during which
22 the transaction occurred. The distributor, importing
23 distributor, or manufacturer shall notify the retailer as to
24 the method by which the distributor, importing distributor, or
25 manufacturer will provide the sales information. If the
26 retailer is unable to receive the sales information by
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1 electronic means, the distributor, importing distributor, or
2 manufacturer shall furnish the sales information by personal
3 delivery or by mail. For purposes of this paragraph, the term
4 "electronic means" includes, but is not limited to, the use of
5 a secure Internet website, e-mail, or facsimile.
6 If a total amount of less than $1 is payable, refundable or
7 creditable, such amount shall be disregarded if it is less
8 than 50 cents and shall be increased to $1 if it is 50 cents or
9 more.
10 Notwithstanding any other provision of this Act to the
11 contrary, retailers subject to tax on cannabis shall file all
12 cannabis tax returns and shall make all cannabis tax payments
13 by electronic means in the manner and form required by the
14 Department.
15 Beginning October 1, 1993, a taxpayer who has an average
16 monthly tax liability of $150,000 or more shall make all
17 payments required by rules of the Department by electronic
18 funds transfer. Beginning October 1, 1994, a taxpayer who has
19 an average monthly tax liability of $100,000 or more shall
20 make all payments required by rules of the Department by
21 electronic funds transfer. Beginning October 1, 1995, a
22 taxpayer who has an average monthly tax liability of $50,000
23 or more shall make all payments required by rules of the
24 Department by electronic funds transfer. Beginning October 1,
25 2000, a taxpayer who has an annual tax liability of $200,000 or
26 more shall make all payments required by rules of the
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1 Department by electronic funds transfer. The term "annual tax
2 liability" shall be the sum of the taxpayer's liabilities
3 under this Act, and under all other State and local occupation
4 and use tax laws administered by the Department, for the
5 immediately preceding calendar year. The term "average monthly
6 tax liability" shall be the sum of the taxpayer's liabilities
7 under this Act, and under all other State and local occupation
8 and use tax laws administered by the Department, for the
9 immediately preceding calendar year divided by 12. Beginning
10 on October 1, 2002, a taxpayer who has a tax liability in the
11 amount set forth in subsection (b) of Section 2505-210 of the
12 Department of Revenue Law shall make all payments required by
13 rules of the Department by electronic funds transfer.
14 Before August 1 of each year beginning in 1993, the
15 Department shall notify all taxpayers required to make
16 payments by electronic funds transfer. All taxpayers required
17 to make payments by electronic funds transfer shall make those
18 payments for a minimum of one year beginning on October 1.
19 Any taxpayer not required to make payments by electronic
20 funds transfer may make payments by electronic funds transfer
21 with the permission of the Department.
22 All taxpayers required to make payment by electronic funds
23 transfer and any taxpayers authorized to voluntarily make
24 payments by electronic funds transfer shall make those
25 payments in the manner authorized by the Department.
26 The Department shall adopt such rules as are necessary to
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1 effectuate a program of electronic funds transfer and the
2 requirements of this Section.
3 Any amount which is required to be shown or reported on any
4 return or other document under this Act shall, if such amount
5 is not a whole-dollar amount, be increased to the nearest
6 whole-dollar amount in any case where the fractional part of a
7 dollar is 50 cents or more, and decreased to the nearest
8 whole-dollar amount where the fractional part of a dollar is
9 less than 50 cents.
10 If the retailer is otherwise required to file a monthly
11 return and if the retailer's average monthly tax liability to
12 the Department does not exceed $200, the Department may
13 authorize his returns to be filed on a quarter annual basis,
14 with the return for January, February, and March of a given
15 year being due by April 20 of such year; with the return for
16 April, May, and June of a given year being due by July 20 of
17 such year; with the return for July, August, and September of a
18 given year being due by October 20 of such year, and with the
19 return for October, November, and December of a given year
20 being due by January 20 of the following year.
21 If the retailer is otherwise required to file a monthly or
22 quarterly return and if the retailer's average monthly tax
23 liability with the Department does not exceed $50, the
24 Department may authorize his returns to be filed on an annual
25 basis, with the return for a given year being due by January 20
26 of the following year.
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1 Such quarter annual and annual returns, as to form and
2 substance, shall be subject to the same requirements as
3 monthly returns.
4 Notwithstanding any other provision in this Act concerning
5 the time within which a retailer may file his return, in the
6 case of any retailer who ceases to engage in a kind of business
7 which makes him responsible for filing returns under this Act,
8 such retailer shall file a final return under this Act with the
9 Department not more than one month after discontinuing such
10 business.
11 Where the same person has more than one business
12 registered with the Department under separate registrations
13 under this Act, such person may not file each return that is
14 due as a single return covering all such registered
15 businesses, but shall file separate returns for each such
16 registered business.
17 In addition, with respect to motor vehicles, watercraft,
18 aircraft, and trailers that are required to be registered with
19 an agency of this State, except as otherwise provided in this
20 Section, every retailer selling this kind of tangible personal
21 property shall file, with the Department, upon a form to be
22 prescribed and supplied by the Department, a separate return
23 for each such item of tangible personal property which the
24 retailer sells, except that if, in the same transaction, (i) a
25 retailer of aircraft, watercraft, motor vehicles, or trailers
26 transfers more than one aircraft, watercraft, motor vehicle,
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1 or trailer to another aircraft, watercraft, motor vehicle
2 retailer, or trailer retailer for the purpose of resale or
3 (ii) a retailer of aircraft, watercraft, motor vehicles, or
4 trailers transfers more than one aircraft, watercraft, motor
5 vehicle, or trailer to a purchaser for use as a qualifying
6 rolling stock as provided in Section 2-5 of this Act, then that
7 seller may report the transfer of all aircraft, watercraft,
8 motor vehicles, or trailers involved in that transaction to
9 the Department on the same uniform invoice-transaction
10 reporting return form. For purposes of this Section,
11 "watercraft" means a Class 2, Class 3, or Class 4 watercraft as
12 defined in Section 3-2 of the Boat Registration and Safety
13 Act, a personal watercraft, or any boat equipped with an
14 inboard motor.
15 In addition, with respect to motor vehicles, watercraft,
16 aircraft, and trailers that are required to be registered with
17 an agency of this State, every person who is engaged in the
18 business of leasing or renting such items and who, in
19 connection with such business, sells any such item to a
20 retailer for the purpose of resale is, notwithstanding any
21 other provision of this Section to the contrary, authorized to
22 meet the return-filing requirement of this Act by reporting
23 the transfer of all the aircraft, watercraft, motor vehicles,
24 or trailers transferred for resale during a month to the
25 Department on the same uniform invoice-transaction reporting
26 return form on or before the 20th of the month following the
HB2755 Enrolled - 100 - LRB104 08253 BDA 18303 b
1 month in which the transfer takes place. Notwithstanding any
2 other provision of this Act to the contrary, all returns filed
3 under this paragraph must be filed by electronic means in the
4 manner and form as required by the Department.
5 Any retailer who sells only motor vehicles, watercraft,
6 aircraft, or trailers that are required to be registered with
7 an agency of this State, so that all retailers' occupation tax
8 liability is required to be reported, and is reported, on such
9 transaction reporting returns and who is not otherwise
10 required to file monthly or quarterly returns, need not file
11 monthly or quarterly returns. However, those retailers shall
12 be required to file returns on an annual basis.
13 The transaction reporting return, in the case of motor
14 vehicles or trailers that are required to be registered with
15 an agency of this State, shall be the same document as the
16 Uniform Invoice referred to in Section 5-402 of the Illinois
17 Vehicle Code and must show the name and address of the seller;
18 the name and address of the purchaser; the amount of the
19 selling price including the amount allowed by the retailer for
20 traded-in property, if any; the amount allowed by the retailer
21 for the traded-in tangible personal property, if any, to the
22 extent to which Section 1 of this Act allows an exemption for
23 the value of traded-in property; the balance payable after
24 deducting such trade-in allowance from the total selling
25 price; the amount of tax due from the retailer with respect to
26 such transaction; the amount of tax collected from the
HB2755 Enrolled - 101 - LRB104 08253 BDA 18303 b
1 purchaser by the retailer on such transaction (or satisfactory
2 evidence that such tax is not due in that particular instance,
3 if that is claimed to be the fact); the place and date of the
4 sale; a sufficient identification of the property sold; such
5 other information as is required in Section 5-402 of the
6 Illinois Vehicle Code, and such other information as the
7 Department may reasonably require.
8 The transaction reporting return in the case of watercraft
9 or aircraft must show the name and address of the seller; the
10 name and address of the purchaser; the amount of the selling
11 price including the amount allowed by the retailer for
12 traded-in property, if any; the amount allowed by the retailer
13 for the traded-in tangible personal property, if any, to the
14 extent to which Section 1 of this Act allows an exemption for
15 the value of traded-in property; the balance payable after
16 deducting such trade-in allowance from the total selling
17 price; the amount of tax due from the retailer with respect to
18 such transaction; the amount of tax collected from the
19 purchaser by the retailer on such transaction (or satisfactory
20 evidence that such tax is not due in that particular instance,
21 if that is claimed to be the fact); the place and date of the
22 sale, a sufficient identification of the property sold, and
23 such other information as the Department may reasonably
24 require.
25 Such transaction reporting return shall be filed not later
26 than 20 days after the day of delivery of the item that is
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1 being sold, but may be filed by the retailer at any time sooner
2 than that if he chooses to do so. The transaction reporting
3 return and tax remittance or proof of exemption from the
4 Illinois use tax may be transmitted to the Department by way of
5 the State agency with which, or State officer with whom the
6 tangible personal property must be titled or registered (if
7 titling or registration is required) if the Department and
8 such agency or State officer determine that this procedure
9 will expedite the processing of applications for title or
10 registration.
11 With each such transaction reporting return, the retailer
12 shall remit the proper amount of tax due (or shall submit
13 satisfactory evidence that the sale is not taxable if that is
14 the case), to the Department or its agents, whereupon the
15 Department shall issue, in the purchaser's name, a use tax
16 receipt (or a certificate of exemption if the Department is
17 satisfied that the particular sale is tax exempt) which such
18 purchaser may submit to the agency with which, or State
19 officer with whom, he must title or register the tangible
20 personal property that is involved (if titling or registration
21 is required) in support of such purchaser's application for an
22 Illinois certificate or other evidence of title or
23 registration to such tangible personal property.
24 No retailer's failure or refusal to remit tax under this
25 Act precludes a user, who has paid the proper tax to the
26 retailer, from obtaining his certificate of title or other
HB2755 Enrolled - 103 - LRB104 08253 BDA 18303 b
1 evidence of title or registration (if titling or registration
2 is required) upon satisfying the Department that such user has
3 paid the proper tax (if tax is due) to the retailer. The
4 Department shall adopt appropriate rules to carry out the
5 mandate of this paragraph.
6 If the user who would otherwise pay tax to the retailer
7 wants the transaction reporting return filed and the payment
8 of the tax or proof of exemption made to the Department before
9 the retailer is willing to take these actions and such user has
10 not paid the tax to the retailer, such user may certify to the
11 fact of such delay by the retailer and may (upon the Department
12 being satisfied of the truth of such certification) transmit
13 the information required by the transaction reporting return
14 and the remittance for tax or proof of exemption directly to
15 the Department and obtain his tax receipt or exemption
16 determination, in which event the transaction reporting return
17 and tax remittance (if a tax payment was required) shall be
18 credited by the Department to the proper retailer's account
19 with the Department, but without the vendor's discount
20 provided for in this Section being allowed. When the user pays
21 the tax directly to the Department, he shall pay the tax in the
22 same amount and in the same form in which it would be remitted
23 if the tax had been remitted to the Department by the retailer.
24 On and after January 1, 2025, with respect to the lease of
25 trailers, other than semitrailers as defined in Section 1-187
26 of the Illinois Vehicle Code, that are required to be
HB2755 Enrolled - 104 - LRB104 08253 BDA 18303 b
1 registered with an agency of this State and that are subject to
2 the tax on lease receipts under this Act, notwithstanding any
3 other provision of this Act to the contrary, for the purpose of
4 reporting and paying tax under this Act on those lease
5 receipts, lessors shall file returns in addition to and
6 separate from the transaction reporting return. Lessors shall
7 file those lease returns and make payment to the Department by
8 electronic means on or before the 20th day of each month
9 following the month, quarter, or year, as applicable, in which
10 lease receipts were received. All lease receipts received by
11 the lessor from the lease of those trailers during the same
12 reporting period shall be reported and tax shall be paid on a
13 single return form to be prescribed by the Department.
14 Refunds made by the seller during the preceding return
15 period to purchasers, on account of tangible personal property
16 returned to the seller, shall be allowed as a deduction under
17 subdivision 5 of his monthly or quarterly return, as the case
18 may be, in case the seller had theretofore included the
19 receipts from the sale of such tangible personal property in a
20 return filed by him and had paid the tax imposed by this Act
21 with respect to such receipts.
22 Where the seller is a corporation, the return filed on
23 behalf of such corporation shall be signed by the president,
24 vice-president, secretary, or treasurer or by the properly
25 accredited agent of such corporation.
26 Where the seller is a limited liability company, the
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1 return filed on behalf of the limited liability company shall
2 be signed by a manager, member, or properly accredited agent
3 of the limited liability company.
4 Except as provided in this Section, the retailer filing
5 the return under this Section shall, at the time of filing such
6 return, pay to the Department the amount of tax imposed by this
7 Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
8 on and after January 1, 1990, or $5 per calendar year,
9 whichever is greater, which is allowed to reimburse the
10 retailer for the expenses incurred in keeping records,
11 preparing and filing returns, remitting the tax and supplying
12 data to the Department on request. On and after January 1,
13 2021, a certified service provider, as defined in the Leveling
14 the Playing Field for Illinois Retail Act, filing the return
15 under this Section on behalf of a remote retailer shall, at the
16 time of such return, pay to the Department the amount of tax
17 imposed by this Act less a discount of 1.75%. A remote retailer
18 using a certified service provider to file a return on its
19 behalf, as provided in the Leveling the Playing Field for
20 Illinois Retail Act, is not eligible for the discount.
21 Beginning with returns due on or after January 1, 2025, the
22 vendor's discount allowed in this Section, the Service
23 Occupation Tax Act, the Use Tax Act, and the Service Use Tax
24 Act, including any local tax administered by the Department
25 and reported on the same return, shall not exceed $1,000 per
26 month in the aggregate for returns other than transaction
HB2755 Enrolled - 106 - LRB104 08253 BDA 18303 b
1 returns filed during the month. When determining the discount
2 allowed under this Section, retailers shall include the amount
3 of tax that would have been due at the 1% rate but for the 0%
4 rate imposed under Public Act 102-700. When determining the
5 discount allowed under this Section, retailers shall include
6 the amount of tax that would have been due at the 6.25% rate
7 but for the 1.25% rate imposed on sales tax holiday items under
8 Public Act 102-700. The discount under this Section is not
9 allowed for the 1.25% portion of taxes paid on aviation fuel
10 that is subject to the revenue use requirements of 49 U.S.C.
11 47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to
12 Section 2d of this Act shall be included in the amount on which
13 such discount is computed. In the case of retailers who report
14 and pay the tax on a transaction by transaction basis, as
15 provided in this Section, such discount shall be taken with
16 each such tax remittance instead of when such retailer files
17 his periodic return, but, beginning with returns due on or
18 after January 1, 2025, the vendor's discount allowed under
19 this Section and the Use Tax Act, including any local tax
20 administered by the Department and reported on the same
21 transaction return, shall not exceed $1,000 per month for all
22 transaction returns filed during the month. The discount
23 allowed under this Section is allowed only for returns that
24 are filed in the manner required by this Act. The Department
25 may disallow the discount for retailers whose certificate of
26 registration is revoked at the time the return is filed, but
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1 only if the Department's decision to revoke the certificate of
2 registration has become final.
3 Before October 1, 2000, if the taxpayer's average monthly
4 tax liability to the Department under this Act, the Use Tax
5 Act, the Service Occupation Tax Act, and the Service Use Tax
6 Act, excluding any liability for prepaid sales tax to be
7 remitted in accordance with Section 2d of this Act, was
8 $10,000 or more during the preceding 4 complete calendar
9 quarters, he shall file a return with the Department each
10 month by the 20th day of the month next following the month
11 during which such tax liability is incurred and shall make
12 payments to the Department on or before the 7th, 15th, 22nd and
13 last day of the month during which such liability is incurred.
14 On and after October 1, 2000, if the taxpayer's average
15 monthly tax liability to the Department under this Act, the
16 Use Tax Act, the Service Occupation Tax Act, and the Service
17 Use Tax Act, excluding any liability for prepaid sales tax to
18 be remitted in accordance with Section 2d of this Act, was
19 $20,000 or more during the preceding 4 complete calendar
20 quarters, he shall file a return with the Department each
21 month by the 20th day of the month next following the month
22 during which such tax liability is incurred and shall make
23 payment to the Department on or before the 7th, 15th, 22nd and
24 last day of the month during which such liability is incurred.
25 If the month during which such tax liability is incurred began
26 prior to January 1, 1985, each payment shall be in an amount
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1 equal to 1/4 of the taxpayer's actual liability for the month
2 or an amount set by the Department not to exceed 1/4 of the
3 average monthly liability of the taxpayer to the Department
4 for the preceding 4 complete calendar quarters (excluding the
5 month of highest liability and the month of lowest liability
6 in such 4 quarter period). If the month during which such tax
7 liability is incurred begins on or after January 1, 1985 and
8 prior to January 1, 1987, each payment shall be in an amount
9 equal to 22.5% of the taxpayer's actual liability for the
10 month or 27.5% of the taxpayer's liability for the same
11 calendar month of the preceding year. If the month during
12 which such tax liability is incurred begins on or after
13 January 1, 1987 and prior to January 1, 1988, each payment
14 shall be in an amount equal to 22.5% of the taxpayer's actual
15 liability for the month or 26.25% of the taxpayer's liability
16 for the same calendar month of the preceding year. If the month
17 during which such tax liability is incurred begins on or after
18 January 1, 1988, and prior to January 1, 1989, or begins on or
19 after January 1, 1996, each payment shall be in an amount equal
20 to 22.5% of the taxpayer's actual liability for the month or
21 25% of the taxpayer's liability for the same calendar month of
22 the preceding year. If the month during which such tax
23 liability is incurred begins on or after January 1, 1989, and
24 prior to January 1, 1996, each payment shall be in an amount
25 equal to 22.5% of the taxpayer's actual liability for the
26 month or 25% of the taxpayer's liability for the same calendar
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1 month of the preceding year or 100% of the taxpayer's actual
2 liability for the quarter monthly reporting period. The amount
3 of such quarter monthly payments shall be credited against the
4 final tax liability of the taxpayer's return for that month.
5 Before October 1, 2000, once applicable, the requirement of
6 the making of quarter monthly payments to the Department by
7 taxpayers having an average monthly tax liability of $10,000
8 or more as determined in the manner provided above shall
9 continue until such taxpayer's average monthly liability to
10 the Department during the preceding 4 complete calendar
11 quarters (excluding the month of highest liability and the
12 month of lowest liability) is less than $9,000, or until such
13 taxpayer's average monthly liability to the Department as
14 computed for each calendar quarter of the 4 preceding complete
15 calendar quarter period is less than $10,000. However, if a
16 taxpayer can show the Department that a substantial change in
17 the taxpayer's business has occurred which causes the taxpayer
18 to anticipate that his average monthly tax liability for the
19 reasonably foreseeable future will fall below the $10,000
20 threshold stated above, then such taxpayer may petition the
21 Department for a change in such taxpayer's reporting status.
22 On and after October 1, 2000, once applicable, the requirement
23 of the making of quarter monthly payments to the Department by
24 taxpayers having an average monthly tax liability of $20,000
25 or more as determined in the manner provided above shall
26 continue until such taxpayer's average monthly liability to
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1 the Department during the preceding 4 complete calendar
2 quarters (excluding the month of highest liability and the
3 month of lowest liability) is less than $19,000 or until such
4 taxpayer's average monthly liability to the Department as
5 computed for each calendar quarter of the 4 preceding complete
6 calendar quarter period is less than $20,000. However, if a
7 taxpayer can show the Department that a substantial change in
8 the taxpayer's business has occurred which causes the taxpayer
9 to anticipate that his average monthly tax liability for the
10 reasonably foreseeable future will fall below the $20,000
11 threshold stated above, then such taxpayer may petition the
12 Department for a change in such taxpayer's reporting status.
13 The Department shall change such taxpayer's reporting status
14 unless it finds that such change is seasonal in nature and not
15 likely to be long term. Quarter monthly payment status shall
16 be determined under this paragraph as if the rate reduction to
17 0% in Public Act 102-700 on food for human consumption that is
18 to be consumed off the premises where it is sold (other than
19 alcoholic beverages, food consisting of or infused with adult
20 use cannabis, soft drinks, and food that has been prepared for
21 immediate consumption) had not occurred. For quarter monthly
22 payments due under this paragraph on or after July 1, 2023 and
23 through June 30, 2024, "25% of the taxpayer's liability for
24 the same calendar month of the preceding year" shall be
25 determined as if the rate reduction to 0% in Public Act 102-700
26 had not occurred. Quarter monthly payment status shall be
HB2755 Enrolled - 111 - LRB104 08253 BDA 18303 b
1 determined under this paragraph as if the rate reduction to
2 1.25% in Public Act 102-700 on sales tax holiday items had not
3 occurred. For quarter monthly payments due on or after July 1,
4 2023 and through June 30, 2024, "25% of the taxpayer's
5 liability for the same calendar month of the preceding year"
6 shall be determined as if the rate reduction to 1.25% in Public
7 Act 102-700 on sales tax holiday items had not occurred. If any
8 such quarter monthly payment is not paid at the time or in the
9 amount required by this Section, then the taxpayer shall be
10 liable for penalties and interest on the difference between
11 the minimum amount due as a payment and the amount of such
12 quarter monthly payment actually and timely paid, except
13 insofar as the taxpayer has previously made payments for that
14 month to the Department in excess of the minimum payments
15 previously due as provided in this Section. The Department
16 shall make reasonable rules and regulations to govern the
17 quarter monthly payment amount and quarter monthly payment
18 dates for taxpayers who file on other than a calendar monthly
19 basis.
20 The provisions of this paragraph apply before October 1,
21 2001. Without regard to whether a taxpayer is required to make
22 quarter monthly payments as specified above, any taxpayer who
23 is required by Section 2d of this Act to collect and remit
24 prepaid taxes and has collected prepaid taxes which average in
25 excess of $25,000 per month during the preceding 2 complete
26 calendar quarters, shall file a return with the Department as
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1 required by Section 2f and shall make payments to the
2 Department on or before the 7th, 15th, 22nd and last day of the
3 month during which such liability is incurred. If the month
4 during which such tax liability is incurred began prior to
5 September 1, 1985 (the effective date of Public Act 84-221),
6 each payment shall be in an amount not less than 22.5% of the
7 taxpayer's actual liability under Section 2d. If the month
8 during which such tax liability is incurred begins on or after
9 January 1, 1986, each payment shall be in an amount equal to
10 22.5% of the taxpayer's actual liability for the month or
11 27.5% of the taxpayer's liability for the same calendar month
12 of the preceding calendar year. If the month during which such
13 tax liability is incurred begins on or after January 1, 1987,
14 each payment shall be in an amount equal to 22.5% of the
15 taxpayer's actual liability for the month or 26.25% of the
16 taxpayer's liability for the same calendar month of the
17 preceding year. The amount of such quarter monthly payments
18 shall be credited against the final tax liability of the
19 taxpayer's return for that month filed under this Section or
20 Section 2f, as the case may be. Once applicable, the
21 requirement of the making of quarter monthly payments to the
22 Department pursuant to this paragraph shall continue until
23 such taxpayer's average monthly prepaid tax collections during
24 the preceding 2 complete calendar quarters is $25,000 or less.
25 If any such quarter monthly payment is not paid at the time or
26 in the amount required, the taxpayer shall be liable for
HB2755 Enrolled - 113 - LRB104 08253 BDA 18303 b
1 penalties and interest on such difference, except insofar as
2 the taxpayer has previously made payments for that month in
3 excess of the minimum payments previously due.
4 The provisions of this paragraph apply on and after
5 October 1, 2001. Without regard to whether a taxpayer is
6 required to make quarter monthly payments as specified above,
7 any taxpayer who is required by Section 2d of this Act to
8 collect and remit prepaid taxes and has collected prepaid
9 taxes that average in excess of $20,000 per month during the
10 preceding 4 complete calendar quarters shall file a return
11 with the Department as required by Section 2f and shall make
12 payments to the Department on or before the 7th, 15th, 22nd,
13 and last day of the month during which the liability is
14 incurred. Each payment shall be in an amount equal to 22.5% of
15 the taxpayer's actual liability for the month or 25% of the
16 taxpayer's liability for the same calendar month of the
17 preceding year. The amount of the quarter monthly payments
18 shall be credited against the final tax liability of the
19 taxpayer's return for that month filed under this Section or
20 Section 2f, as the case may be. Once applicable, the
21 requirement of the making of quarter monthly payments to the
22 Department pursuant to this paragraph shall continue until the
23 taxpayer's average monthly prepaid tax collections during the
24 preceding 4 complete calendar quarters (excluding the month of
25 highest liability and the month of lowest liability) is less
26 than $19,000 or until such taxpayer's average monthly
HB2755 Enrolled - 114 - LRB104 08253 BDA 18303 b
1 liability to the Department as computed for each calendar
2 quarter of the 4 preceding complete calendar quarters is less
3 than $20,000. If any such quarter monthly payment is not paid
4 at the time or in the amount required, the taxpayer shall be
5 liable for penalties and interest on such difference, except
6 insofar as the taxpayer has previously made payments for that
7 month in excess of the minimum payments previously due.
8 If any payment provided for in this Section exceeds the
9 taxpayer's liabilities under this Act, the Use Tax Act, the
10 Service Occupation Tax Act, and the Service Use Tax Act, as
11 shown on an original monthly return, the Department shall, if
12 requested by the taxpayer, issue to the taxpayer a credit
13 memorandum no later than 30 days after the date of payment. The
14 credit evidenced by such credit memorandum may be assigned by
15 the taxpayer to a similar taxpayer under this Act, the Use Tax
16 Act, the Service Occupation Tax Act, or the Service Use Tax
17 Act, in accordance with reasonable rules and regulations to be
18 prescribed by the Department. If no such request is made, the
19 taxpayer may credit such excess payment against tax liability
20 subsequently to be remitted to the Department under this Act,
21 the Use Tax Act, the Service Occupation Tax Act, or the Service
22 Use Tax Act, in accordance with reasonable rules and
23 regulations prescribed by the Department. If the Department
24 subsequently determined that all or any part of the credit
25 taken was not actually due to the taxpayer, the taxpayer's
26 vendor's discount shall be reduced, if necessary, to reflect
HB2755 Enrolled - 115 - LRB104 08253 BDA 18303 b
1 the difference between the credit taken and that actually due,
2 and that taxpayer shall be liable for penalties and interest
3 on such difference.
4 If a retailer of motor fuel is entitled to a credit under
5 Section 2d of this Act which exceeds the taxpayer's liability
6 to the Department under this Act for the month for which the
7 taxpayer is filing a return, the Department shall issue the
8 taxpayer a credit memorandum for the excess.
9 Beginning January 1, 1990, each month the Department shall
10 pay into the Local Government Tax Fund, a special fund in the
11 State treasury which is hereby created, the net revenue
12 realized for the preceding month from the 1% tax imposed under
13 this Act.
14 Beginning January 1, 1990, each month the Department shall
15 pay into the County and Mass Transit District Fund, a special
16 fund in the State treasury which is hereby created, 4% of the
17 net revenue realized for the preceding month from the 6.25%
18 general rate other than aviation fuel sold on or after
19 December 1, 2019. This exception for aviation fuel only
20 applies for so long as the revenue use requirements of 49
21 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
22 Beginning August 1, 2000, each month the Department shall
23 pay into the County and Mass Transit District Fund 20% of the
24 net revenue realized for the preceding month from the 1.25%
25 rate on the selling price of motor fuel and gasohol. If, in any
26 month, the tax on sales tax holiday items, as defined in
HB2755 Enrolled - 116 - LRB104 08253 BDA 18303 b
1 Section 2-8, is imposed at the rate of 1.25%, then the
2 Department shall pay 20% of the net revenue realized for that
3 month from the 1.25% rate on the selling price of sales tax
4 holiday items into the County and Mass Transit District Fund.
5 Beginning January 1, 1990, each month the Department shall
6 pay into the Local Government Tax Fund 16% of the net revenue
7 realized for the preceding month from the 6.25% general rate
8 on the selling price of tangible personal property other than
9 aviation fuel sold on or after December 1, 2019. This
10 exception for aviation fuel only applies for so long as the
11 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
12 47133 are binding on the State.
13 For aviation fuel sold on or after December 1, 2019, each
14 month the Department shall pay into the State Aviation Program
15 Fund 20% of the net revenue realized for the preceding month
16 from the 6.25% general rate on the selling price of aviation
17 fuel, less an amount estimated by the Department to be
18 required for refunds of the 20% portion of the tax on aviation
19 fuel under this Act, which amount shall be deposited into the
20 Aviation Fuel Sales Tax Refund Fund. The Department shall only
21 pay moneys into the State Aviation Program Fund and the
22 Aviation Fuel Sales Tax Refund Fund under this Act for so long
23 as the revenue use requirements of 49 U.S.C. 47107(b) and 49
24 U.S.C. 47133 are binding on the State.
25 Beginning August 1, 2000, each month the Department shall
26 pay into the Local Government Tax Fund 80% of the net revenue
HB2755 Enrolled - 117 - LRB104 08253 BDA 18303 b
1 realized for the preceding month from the 1.25% rate on the
2 selling price of motor fuel and gasohol. If, in any month, the
3 tax on sales tax holiday items, as defined in Section 2-8, is
4 imposed at the rate of 1.25%, then the Department shall pay 80%
5 of the net revenue realized for that month from the 1.25% rate
6 on the selling price of sales tax holiday items into the Local
7 Government Tax Fund.
8 Beginning October 1, 2009, each month the Department shall
9 pay into the Capital Projects Fund an amount that is equal to
10 an amount estimated by the Department to represent 80% of the
11 net revenue realized for the preceding month from the sale of
12 candy, grooming and hygiene products, and soft drinks that had
13 been taxed at a rate of 1% prior to September 1, 2009 but that
14 are now taxed at 6.25%.
15 Beginning July 1, 2011, each month the Department shall
16 pay into the Clean Air Act Permit Fund 80% of the net revenue
17 realized for the preceding month from the 6.25% general rate
18 on the selling price of sorbents used in Illinois in the
19 process of sorbent injection as used to comply with the
20 Environmental Protection Act or the federal Clean Air Act, but
21 the total payment into the Clean Air Act Permit Fund under this
22 Act and the Use Tax Act shall not exceed $2,000,000 in any
23 fiscal year.
24 Beginning July 1, 2013, each month the Department shall
25 pay into the Underground Storage Tank Fund from the proceeds
26 collected under this Act, the Use Tax Act, the Service Use Tax
HB2755 Enrolled - 118 - LRB104 08253 BDA 18303 b
1 Act, and the Service Occupation Tax Act an amount equal to the
2 average monthly deficit in the Underground Storage Tank Fund
3 during the prior year, as certified annually by the Illinois
4 Environmental Protection Agency, but the total payment into
5 the Underground Storage Tank Fund under this Act, the Use Tax
6 Act, the Service Use Tax Act, and the Service Occupation Tax
7 Act shall not exceed $18,000,000 in any State fiscal year. As
8 used in this paragraph, the "average monthly deficit" shall be
9 equal to the difference between the average monthly claims for
10 payment by the fund and the average monthly revenues deposited
11 into the fund, excluding payments made pursuant to this
12 paragraph.
13 Beginning July 1, 2015, of the remainder of the moneys
14 received by the Department under the Use Tax Act, the Service
15 Use Tax Act, the Service Occupation Tax Act, and this Act, each
16 month the Department shall deposit $500,000 into the State
17 Crime Laboratory Fund.
18 Of the remainder of the moneys received by the Department
19 pursuant to this Act, (a) 1.75% thereof shall be paid into the
20 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
21 and after July 1, 1989, 3.8% thereof shall be paid into the
22 Build Illinois Fund; provided, however, that if in any fiscal
23 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
24 may be, of the moneys received by the Department and required
25 to be paid into the Build Illinois Fund pursuant to this Act,
26 Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
HB2755 Enrolled - 119 - LRB104 08253 BDA 18303 b
1 Act, and Section 9 of the Service Occupation Tax Act, such Acts
2 being hereinafter called the "Tax Acts" and such aggregate of
3 2.2% or 3.8%, as the case may be, of moneys being hereinafter
4 called the "Tax Act Amount", and (2) the amount transferred to
5 the Build Illinois Fund from the State and Local Sales Tax
6 Reform Fund shall be less than the Annual Specified Amount (as
7 hereinafter defined), an amount equal to the difference shall
8 be immediately paid into the Build Illinois Fund from other
9 moneys received by the Department pursuant to the Tax Acts;
10 the "Annual Specified Amount" means the amounts specified
11 below for fiscal years 1986 through 1993:
12 Fiscal Year Annual Specified Amount
13 1986 $54,800,000
14 1987 $76,650,000
15 1988 $80,480,000
16 1989 $88,510,000
17 1990 $115,330,000
18 1991 $145,470,000
19 1992 $182,730,000
20 1993 $206,520,000;
21 and means the Certified Annual Debt Service Requirement (as
22 defined in Section 13 of the Build Illinois Bond Act) or the
23 Tax Act Amount, whichever is greater, for fiscal year 1994 and
24 each fiscal year thereafter; and further provided, that if on
25 the last business day of any month the sum of (1) the Tax Act
26 Amount required to be deposited into the Build Illinois Bond
HB2755 Enrolled - 120 - LRB104 08253 BDA 18303 b
1 Account in the Build Illinois Fund during such month and (2)
2 the amount transferred to the Build Illinois Fund from the
3 State and Local Sales Tax Reform Fund shall have been less than
4 1/12 of the Annual Specified Amount, an amount equal to the
5 difference shall be immediately paid into the Build Illinois
6 Fund from other moneys received by the Department pursuant to
7 the Tax Acts; and, further provided, that in no event shall the
8 payments required under the preceding proviso result in
9 aggregate payments into the Build Illinois Fund pursuant to
10 this clause (b) for any fiscal year in excess of the greater of
11 (i) the Tax Act Amount or (ii) the Annual Specified Amount for
12 such fiscal year. The amounts payable into the Build Illinois
13 Fund under clause (b) of the first sentence in this paragraph
14 shall be payable only until such time as the aggregate amount
15 on deposit under each trust indenture securing Bonds issued
16 and outstanding pursuant to the Build Illinois Bond Act is
17 sufficient, taking into account any future investment income,
18 to fully provide, in accordance with such indenture, for the
19 defeasance of or the payment of the principal of, premium, if
20 any, and interest on the Bonds secured by such indenture and on
21 any Bonds expected to be issued thereafter and all fees and
22 costs payable with respect thereto, all as certified by the
23 Director of the Bureau of the Budget (now Governor's Office of
24 Management and Budget). If on the last business day of any
25 month in which Bonds are outstanding pursuant to the Build
26 Illinois Bond Act, the aggregate of moneys deposited in the
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1 Build Illinois Bond Account in the Build Illinois Fund in such
2 month shall be less than the amount required to be transferred
3 in such month from the Build Illinois Bond Account to the Build
4 Illinois Bond Retirement and Interest Fund pursuant to Section
5 13 of the Build Illinois Bond Act, an amount equal to such
6 deficiency shall be immediately paid from other moneys
7 received by the Department pursuant to the Tax Acts to the
8 Build Illinois Fund; provided, however, that any amounts paid
9 to the Build Illinois Fund in any fiscal year pursuant to this
10 sentence shall be deemed to constitute payments pursuant to
11 clause (b) of the first sentence of this paragraph and shall
12 reduce the amount otherwise payable for such fiscal year
13 pursuant to that clause (b). The moneys received by the
14 Department pursuant to this Act and required to be deposited
15 into the Build Illinois Fund are subject to the pledge, claim
16 and charge set forth in Section 12 of the Build Illinois Bond
17 Act.
18 Subject to payment of amounts into the Build Illinois Fund
19 as provided in the preceding paragraph or in any amendment
20 thereto hereafter enacted, the following specified monthly
21 installment of the amount requested in the certificate of the
22 Chairman of the Metropolitan Pier and Exposition Authority
23 provided under Section 8.25f of the State Finance Act, but not
24 in excess of sums designated as "Total Deposit", shall be
25 deposited in the aggregate from collections under Section 9 of
26 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
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1 9 of the Service Occupation Tax Act, and Section 3 of the
2 Retailers' Occupation Tax Act into the McCormick Place
3 Expansion Project Fund in the specified fiscal years.
4 Fiscal Year Total Deposit
5 1993 $0
6 1994 53,000,000
7 1995 58,000,000
8 1996 61,000,000
9 1997 64,000,000
10 1998 68,000,000
11 1999 71,000,000
12 2000 75,000,000
13 2001 80,000,000
14 2002 93,000,000
15 2003 99,000,000
16 2004 103,000,000
17 2005 108,000,000
18 2006 113,000,000
19 2007 119,000,000
20 2008 126,000,000
21 2009 132,000,000
22 2010 139,000,000
23 2011 146,000,000
24 2012 153,000,000
25 2013 161,000,000
26 2014 170,000,000
HB2755 Enrolled - 123 - LRB104 08253 BDA 18303 b
1 2015 179,000,000
189,000,000
2 2016 199,000,000
210,000,000
3 2017 221,000,000
233,000,000
4 2018 300,000,000
300,000,000
5 2019 300,000,000
300,000,000
6 2020 300,000,000
300,000,000
7 2021 375,000,000
375,000,000
8 2022 375,000,000
375,000,000
9 2023 375,000,000
375,000,000
10 2024 375,000,000
375,000,000
11 2025 375,000,000
450,000,000
12 2026
13 2027
14 2028
15 2029
16 2030
17 2031
18 2032
19 2033
20 2034
21 2035
22 2036
23 and
24 each fiscal year
25 thereafter that bonds
26 are outstanding under
HB2755 Enrolled - 124 - LRB104 08253 BDA 18303 b
1 Section 13.2 of the
2 Metropolitan Pier and
3 Exposition Authority Act,
4 but not after fiscal year 2060.
5 Beginning July 20, 1993 and in each month of each fiscal
6 year thereafter, one-eighth of the amount requested in the
7 certificate of the Chairman of the Metropolitan Pier and
8 Exposition Authority for that fiscal year, less the amount
9 deposited into the McCormick Place Expansion Project Fund by
10 the State Treasurer in the respective month under subsection
11 (g) of Section 13 of the Metropolitan Pier and Exposition
12 Authority Act, plus cumulative deficiencies in the deposits
13 required under this Section for previous months and years,
14 shall be deposited into the McCormick Place Expansion Project
15 Fund, until the full amount requested for the fiscal year, but
16 not in excess of the amount specified above as "Total
17 Deposit", has been deposited.
18 Subject to payment of amounts into the Capital Projects
19 Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
20 and the McCormick Place Expansion Project Fund pursuant to the
21 preceding paragraphs or in any amendments thereto hereafter
22 enacted, for aviation fuel sold on or after December 1, 2019,
23 the Department shall each month deposit into the Aviation Fuel
24 Sales Tax Refund Fund an amount estimated by the Department to
25 be required for refunds of the 80% portion of the tax on
26 aviation fuel under this Act. The Department shall only
HB2755 Enrolled - 125 - LRB104 08253 BDA 18303 b
1 deposit moneys into the Aviation Fuel Sales Tax Refund Fund
2 under this paragraph for so long as the revenue use
3 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
4 binding on the State.
5 Subject to payment of amounts into the Build Illinois Fund
6 and the McCormick Place Expansion Project Fund pursuant to the
7 preceding paragraphs or in any amendments thereto hereafter
8 enacted, beginning July 1, 1993 and ending on September 30,
9 2013, the Department shall each month pay into the Illinois
10 Tax Increment Fund 0.27% of 80% of the net revenue realized for
11 the preceding month from the 6.25% general rate on the selling
12 price of tangible personal property.
13 Subject to payment of amounts into the Build Illinois
14 Fund, the McCormick Place Expansion Project Fund, and the
15 Illinois Tax Increment Fund pursuant to the preceding
16 paragraphs or in any amendments to this Section hereafter
17 enacted, beginning on the first day of the first calendar
18 month to occur on or after August 26, 2014 (the effective date
19 of Public Act 98-1098), each month, from the collections made
20 under Section 9 of the Use Tax Act, Section 9 of the Service
21 Use Tax Act, Section 9 of the Service Occupation Tax Act, and
22 Section 3 of the Retailers' Occupation Tax Act, the Department
23 shall pay into the Tax Compliance and Administration Fund, to
24 be used, subject to appropriation, to fund additional auditors
25 and compliance personnel at the Department of Revenue, an
26 amount equal to 1/12 of 5% of 80% of the cash receipts
HB2755 Enrolled - 126 - LRB104 08253 BDA 18303 b
1 collected during the preceding fiscal year by the Audit Bureau
2 of the Department under the Use Tax Act, the Service Use Tax
3 Act, the Service Occupation Tax Act, the Retailers' Occupation
4 Tax Act, and associated local occupation and use taxes
5 administered by the Department.
6 Subject to payments of amounts into the Build Illinois
7 Fund, the McCormick Place Expansion Project Fund, the Illinois
8 Tax Increment Fund, the Energy Infrastructure Fund, and the
9 Tax Compliance and Administration Fund as provided in this
10 Section, beginning on July 1, 2018 the Department shall pay
11 each month into the Downstate Public Transportation Fund the
12 moneys required to be so paid under Section 2-3 of the
13 Downstate Public Transportation Act.
14 Subject to successful execution and delivery of a
15 public-private agreement between the public agency and private
16 entity and completion of the civic build, beginning on July 1,
17 2023, of the remainder of the moneys received by the
18 Department under the Use Tax Act, the Service Use Tax Act, the
19 Service Occupation Tax Act, and this Act, the Department shall
20 deposit the following specified deposits in the aggregate from
21 collections under the Use Tax Act, the Service Use Tax Act, the
22 Service Occupation Tax Act, and the Retailers' Occupation Tax
23 Act, as required under Section 8.25g of the State Finance Act
24 for distribution consistent with the Public-Private
25 Partnership for Civic and Transit Infrastructure Project Act.
26 The moneys received by the Department pursuant to this Act and
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1 required to be deposited into the Civic and Transit
2 Infrastructure Fund are subject to the pledge, claim and
3 charge set forth in Section 25-55 of the Public-Private
4 Partnership for Civic and Transit Infrastructure Project Act.
5 As used in this paragraph, "civic build", "private entity",
6 "public-private agreement", and "public agency" have the
7 meanings provided in Section 25-10 of the Public-Private
8 Partnership for Civic and Transit Infrastructure Project Act.
9 Fiscal Year ............................ Total Deposit
10 2024 .................................... $200,000,000
11 2025 .................................... $206,000,000
12 2026 .................................... $212,200,000
13 2027 .................................... $218,500,000
14 2028 .................................... $225,100,000
15 2029 .................................... $288,700,000
16 2030 .................................... $298,900,000
17 2031 .................................... $309,300,000
18 2032 .................................... $320,100,000
19 2033 .................................... $331,200,000
20 2034 .................................... $341,200,000
21 2035 .................................... $351,400,000
22 2036 .................................... $361,900,000
23 2037 .................................... $372,800,000
24 2038 .................................... $384,000,000
25 2039 .................................... $395,500,000
26 2040 .................................... $407,400,000
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1 2041 .................................... $419,600,000
2 2042 .................................... $432,200,000
3 2043 .................................... $445,100,000
4 Beginning July 1, 2021 and until July 1, 2022, subject to
5 the payment of amounts into the County and Mass Transit
6 District Fund, the Local Government Tax Fund, the Build
7 Illinois Fund, the McCormick Place Expansion Project Fund, the
8 Illinois Tax Increment Fund, and the Tax Compliance and
9 Administration Fund as provided in this Section, the
10 Department shall pay each month into the Road Fund the amount
11 estimated to represent 16% of the net revenue realized from
12 the taxes imposed on motor fuel and gasohol. Beginning July 1,
13 2022 and until July 1, 2023, subject to the payment of amounts
14 into the County and Mass Transit District Fund, the Local
15 Government Tax Fund, the Build Illinois Fund, the McCormick
16 Place Expansion Project Fund, the Illinois Tax Increment Fund,
17 and the Tax Compliance and Administration Fund as provided in
18 this Section, the Department shall pay each month into the
19 Road Fund the amount estimated to represent 32% of the net
20 revenue realized from the taxes imposed on motor fuel and
21 gasohol. Beginning July 1, 2023 and until July 1, 2024,
22 subject to the payment of amounts into the County and Mass
23 Transit District Fund, the Local Government Tax Fund, the
24 Build Illinois Fund, the McCormick Place Expansion Project
25 Fund, the Illinois Tax Increment Fund, and the Tax Compliance
26 and Administration Fund as provided in this Section, the
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1 Department shall pay each month into the Road Fund the amount
2 estimated to represent 48% of the net revenue realized from
3 the taxes imposed on motor fuel and gasohol. Beginning July 1,
4 2024 and until July 1, 2026 July 1, 2025, subject to the
5 payment of amounts into the County and Mass Transit District
6 Fund, the Local Government Tax Fund, the Build Illinois Fund,
7 the McCormick Place Expansion Project Fund, the Illinois Tax
8 Increment Fund, and the Tax Compliance and Administration Fund
9 as provided in this Section, the Department shall pay each
10 month into the Road Fund the amount estimated to represent 64%
11 of the net revenue realized from the taxes imposed on motor
12 fuel and gasohol. Beginning on July 1, 2026 July 1, 2025,
13 subject to the payment of amounts into the County and Mass
14 Transit District Fund, the Local Government Tax Fund, the
15 Build Illinois Fund, the McCormick Place Expansion Project
16 Fund, the Illinois Tax Increment Fund, and the Tax Compliance
17 and Administration Fund as provided in this Section, the
18 Department shall pay each month into the Road Fund the amount
19 estimated to represent 80% of the net revenue realized from
20 the taxes imposed on motor fuel and gasohol. As used in this
21 paragraph "motor fuel" has the meaning given to that term in
22 Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
23 meaning given to that term in Section 3-40 of the Use Tax Act.
24 Of the remainder of the moneys received by the Department
25 pursuant to this Act, 75% thereof shall be paid into the State
26 treasury and 25% shall be reserved in a special account and
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1 used only for the transfer to the Common School Fund as part of
2 the monthly transfer from the General Revenue Fund in
3 accordance with Section 8a of the State Finance Act.
4 The Department may, upon separate written notice to a
5 taxpayer, require the taxpayer to prepare and file with the
6 Department on a form prescribed by the Department within not
7 less than 60 days after receipt of the notice an annual
8 information return for the tax year specified in the notice.
9 Such annual return to the Department shall include a statement
10 of gross receipts as shown by the retailer's last federal
11 income tax return. If the total receipts of the business as
12 reported in the federal income tax return do not agree with the
13 gross receipts reported to the Department of Revenue for the
14 same period, the retailer shall attach to his annual return a
15 schedule showing a reconciliation of the 2 amounts and the
16 reasons for the difference. The retailer's annual return to
17 the Department shall also disclose the cost of goods sold by
18 the retailer during the year covered by such return, opening
19 and closing inventories of such goods for such year, costs of
20 goods used from stock or taken from stock and given away by the
21 retailer during such year, payroll information of the
22 retailer's business during such year and any additional
23 reasonable information which the Department deems would be
24 helpful in determining the accuracy of the monthly, quarterly,
25 or annual returns filed by such retailer as provided for in
26 this Section.
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1 If the annual information return required by this Section
2 is not filed when and as required, the taxpayer shall be liable
3 as follows:
4 (i) Until January 1, 1994, the taxpayer shall be
5 liable for a penalty equal to 1/6 of 1% of the tax due from
6 such taxpayer under this Act during the period to be
7 covered by the annual return for each month or fraction of
8 a month until such return is filed as required, the
9 penalty to be assessed and collected in the same manner as
10 any other penalty provided for in this Act.
11 (ii) On and after January 1, 1994, the taxpayer shall
12 be liable for a penalty as described in Section 3-4 of the
13 Uniform Penalty and Interest Act.
14 The chief executive officer, proprietor, owner, or highest
15 ranking manager shall sign the annual return to certify the
16 accuracy of the information contained therein. Any person who
17 willfully signs the annual return containing false or
18 inaccurate information shall be guilty of perjury and punished
19 accordingly. The annual return form prescribed by the
20 Department shall include a warning that the person signing the
21 return may be liable for perjury.
22 The provisions of this Section concerning the filing of an
23 annual information return do not apply to a retailer who is not
24 required to file an income tax return with the United States
25 Government.
26 As soon as possible after the first day of each month, upon
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1 certification of the Department of Revenue, the Comptroller
2 shall order transferred and the Treasurer shall transfer from
3 the General Revenue Fund to the Motor Fuel Tax Fund an amount
4 equal to 1.7% of 80% of the net revenue realized under this Act
5 for the second preceding month. Beginning April 1, 2000, this
6 transfer is no longer required and shall not be made.
7 Net revenue realized for a month shall be the revenue
8 collected by the State pursuant to this Act, less the amount
9 paid out during that month as refunds to taxpayers for
10 overpayment of liability.
11 For greater simplicity of administration, manufacturers,
12 importers and wholesalers whose products are sold at retail in
13 Illinois by numerous retailers, and who wish to do so, may
14 assume the responsibility for accounting and paying to the
15 Department all tax accruing under this Act with respect to
16 such sales, if the retailers who are affected do not make
17 written objection to the Department to this arrangement.
18 Any person who promotes, organizes, or provides retail
19 selling space for concessionaires or other types of sellers at
20 the Illinois State Fair, DuQuoin State Fair, county fairs,
21 local fairs, art shows, flea markets, and similar exhibitions
22 or events, including any transient merchant as defined by
23 Section 2 of the Transient Merchant Act of 1987, is required to
24 file a report with the Department providing the name of the
25 merchant's business, the name of the person or persons engaged
26 in merchant's business, the permanent address and Illinois
HB2755 Enrolled - 133 - LRB104 08253 BDA 18303 b
1 Retailers Occupation Tax Registration Number of the merchant,
2 the dates and location of the event, and other reasonable
3 information that the Department may require. The report must
4 be filed not later than the 20th day of the month next
5 following the month during which the event with retail sales
6 was held. Any person who fails to file a report required by
7 this Section commits a business offense and is subject to a
8 fine not to exceed $250.
9 Any person engaged in the business of selling tangible
10 personal property at retail as a concessionaire or other type
11 of seller at the Illinois State Fair, county fairs, art shows,
12 flea markets, and similar exhibitions or events, or any
13 transient merchants, as defined by Section 2 of the Transient
14 Merchant Act of 1987, may be required to make a daily report of
15 the amount of such sales to the Department and to make a daily
16 payment of the full amount of tax due. The Department shall
17 impose this requirement when it finds that there is a
18 significant risk of loss of revenue to the State at such an
19 exhibition or event. Such a finding shall be based on evidence
20 that a substantial number of concessionaires or other sellers
21 who are not residents of Illinois will be engaging in the
22 business of selling tangible personal property at retail at
23 the exhibition or event, or other evidence of a significant
24 risk of loss of revenue to the State. The Department shall
25 notify concessionaires and other sellers affected by the
26 imposition of this requirement. In the absence of notification
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1 by the Department, the concessionaires and other sellers shall
2 file their returns as otherwise required in this Section.
3 (Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60,
4 Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
5 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
6 1-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363,
7 eff. 7-28-23; 103-592, Article 75, Section 75-20, eff. 1-1-25;
8 103-592, Article 110, Section 110-20, eff. 6-7-24; 103-605,
9 eff. 7-1-24; 103-1055, eff. 12-20-24.)
10 Section 5-30. The Sports Wagering Act is amended by
11 changing Section 25-90 as follows:
12 (230 ILCS 45/25-90)
13 Sec. 25-90. Tax; Sports Wagering Fund.
14 (a) For the privilege of holding a license to operate
15 sports wagering under this Act until June 30, 2024, this State
16 shall impose and collect 15% of a master sports wagering
17 licensee's adjusted gross sports wagering receipts from sports
18 wagering. The accrual method of accounting shall be used for
19 purposes of calculating the amount of the tax owed by the
20 licensee.
21 The taxes levied and collected pursuant to this subsection
22 (a) are due and payable to the Board no later than the last day
23 of the month following the calendar month in which the
24 adjusted gross sports wagering receipts were received and the
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1 tax obligation was accrued.
2 (a-5) In addition to the tax imposed under subsection (a),
3 (d), or (d-5), or (d-7) of this Section, for the privilege of
4 holding a license to operate sports wagering under this Act,
5 the State shall impose and collect 2% of the adjusted gross
6 receipts from sports wagers that are placed within a home rule
7 county with a population of over 3,000,000 inhabitants, which
8 shall be paid, subject to appropriation from the General
9 Assembly, from the Sports Wagering Fund to that home rule
10 county for the purpose of enhancing the county's criminal
11 justice system.
12 (b) The Sports Wagering Fund is hereby created as a
13 special fund in the State treasury. Except as otherwise
14 provided in this Act, all moneys collected under this Act by
15 the Board shall be deposited into the Sports Wagering Fund.
16 Through August 25, 2024, on the 25th of each month, any moneys
17 remaining in the Sports Wagering Fund in excess of the
18 anticipated monthly expenditures from the Fund through the
19 next month, as certified by the Board to the State
20 Comptroller, shall be transferred by the State Comptroller and
21 the State Treasurer to the Capital Projects Fund. Beginning
22 September 25, 2024, on the 25th of each month, of the moneys
23 remaining in the Sports Wagering Fund in excess of the
24 anticipated monthly expenditures from the Fund through the
25 next month, as certified by the Board to the State
26 Comptroller, the State Comptroller shall direct and the State
HB2755 Enrolled - 136 - LRB104 08253 BDA 18303 b
1 Treasurer shall transfer 58% to the General Revenue Fund and
2 42% to the Capital Projects Fund.
3 (c) Beginning with July 2021, and on a monthly basis
4 thereafter, the Board shall certify to the State Comptroller
5 the amount of license fees collected in the month for initial
6 licenses issued under this Act, except for occupational
7 licenses. As soon after certification as practicable, the
8 State Comptroller shall direct and the State Treasurer shall
9 transfer the certified amount from the Sports Wagering Fund to
10 the Rebuild Illinois Projects Fund.
11 (d) Beginning on July 1, 2024, and for each 12-month
12 period thereafter, for the privilege of holding a license to
13 operate sports wagering under this Act, this State shall
14 impose a privilege tax on the master sports licensee's
15 adjusted gross sports wagering receipts from sports wagering
16 over the Internet or through a mobile application based on the
17 following rates:
18 20% of annual adjusted gross sports wagering receipts
19 up to and including $30,000,000.
20 25% of annual adjusted gross sports wagering receipts
21 in excess of $30,000,000 but not exceeding $50,000,000.
22 30% of annual adjusted gross sports wagering receipts
23 in excess of $50,000,000 but not exceeding $100,000,000.
24 35% of annual adjusted gross sports wagering receipts
25 in excess of $100,000,000 but not exceeding $200,000,000.
26 40% of annual adjusted gross sports wagering receipts
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1 in excess of $200,000,000.
2 (d-5) Beginning on July 1, 2024, and for each 12-month
3 period thereafter, for the privilege of holding a license to
4 operate sports wagering under this Act, this State shall
5 impose a privilege tax on the master sports licensee's
6 adjusted gross sports wagering receipts from sports wagering
7 from other than over the Internet or through a mobile
8 application based on the following rates:
9 20% of annual adjusted gross sports wagering receipts
10 up to and including $30,000,000.
11 25% of annual adjusted gross sports wagering receipts
12 in excess of $30,000,000 but not exceeding $50,000,000.
13 30% of annual adjusted gross sports wagering receipts
14 in excess of $50,000,000 but not exceeding $100,000,000.
15 35% of annual adjusted gross sports wagering receipts
16 in excess of $100,000,000 but not exceeding $200,000,000.
17 40% of annual adjusted gross sports wagering receipts
18 in excess of $200,000,000.
19 (d-7) Beginning on July 1, 2025, and each month
20 thereafter, for the privilege of holding a license to operate
21 sports wagering under this Act, this State shall impose a
22 wager tax on each master sports licensee for each individual
23 wager placed with the master sports licensee for sports
24 wagering over the Internet or through a mobile application.
25 The tax shall be based on the following schedule and shall be
26 in addition to any other taxes or fees imposed under this Act:
HB2755 Enrolled - 138 - LRB104 08253 BDA 18303 b
1 The tax shall be $0.25 per wager for the first 20,000,000
2 annual combined Tier 1 and Tier 2 wagers.
3 The tax shall be $0.50 per wager for each wager in excess
4 of 20,000,000 annual combined Tier 1 and Tier 2 wagers.
5 The tax levied under this subsection shall be deposited
6 monthly into the Sports Wagering Fund. The Board shall certify
7 all amounts deposited into the Sports Wagering Fund under this
8 subsection to the State Comptroller. The State Comptroller
9 shall direct and the State Treasurer shall transfer that
10 certified amount from the Sports Wagering Fund to the General
11 Revenue Fund.
12 As used in this subsection, "annual combined Tier 1 and
13 Tier 2 wagers" means the total number of individual wagers
14 placed with the licensee, regardless of outcome or payout in a
15 given fiscal year.
16 (d-10) The accrual method of accounting shall be used for
17 purposes of calculating the amount of the tax owed by the
18 licensee.
19 (d-15) The taxes levied and collected pursuant to
20 subsections (d) and (d-5), and (d-7) are due and payable to the
21 Board no later than the last day of the month following the
22 calendar month in which the adjusted gross sports wagering
23 receipts were received and the tax obligation was accrued.
24 (e) Annually, a master sports wagering licensee shall
25 transmit to the Board an audit of the financial transactions
26 and condition of the licensee's total operations.
HB2755 Enrolled - 139 - LRB104 08253 BDA 18303 b
1 Additionally, within 90 days after the end of each quarter of
2 each fiscal year, the master sports wagering licensee shall
3 transmit to the Board a compliance report on engagement
4 procedures determined by the Board. All audits and compliance
5 engagements shall be conducted by certified public accountants
6 selected by the Board. Each certified public accountant must
7 be registered in the State of Illinois under the Illinois
8 Public Accounting Act. The compensation for each certified
9 public accountant shall be paid directly by the master sports
10 wagering licensee to the certified public accountant.
11 (Source: P.A. 102-16, eff. 6-17-21; 102-687, eff. 12-17-21;
12 103-592, eff. 6-7-24.)
13 Section 5-35. The Environmental Protection Act is amended
14 by changing Section 42 as follows:
15 (415 ILCS 5/42) (from Ch. 111 1/2, par. 1042)
16 Sec. 42. Civil penalties.
17 (a) Except as provided in this Section, any person that
18 violates any provision of this Act or any regulation adopted
19 by the Board, or any permit or term or condition thereof, or
20 that violates any order of the Board pursuant to this Act,
21 shall be liable for a civil penalty of not to exceed $100,000
22 $50,000 for the violation and an additional civil penalty of
23 not to exceed $25,000 $10,000 for each day during which the
24 violation continues; such penalties may, upon order of the
HB2755 Enrolled - 140 - LRB104 08253 BDA 18303 b
1 Board or a court of competent jurisdiction, be made payable to
2 the Environmental Protection Trust Fund, to be used in
3 accordance with the provisions of the Environmental Protection
4 Trust Fund Act. The maximum penalties set forth in this
5 subsection shall be increased as provided for in subsection
6 (l).
7 (b) Notwithstanding the provisions of subsection (a) of
8 this Section:
9 (1) Any person that violates Section 12(f) of this Act
10 or any NPDES permit or term or condition thereof, or any
11 filing requirement, regulation or order relating to the
12 NPDES permit program, shall be liable to a civil penalty
13 of not to exceed $25,000 $10,000 per day of violation. The
14 maximum penalties set forth in this paragraph shall be
15 increased as provided for in subsection (l).
16 (2) Any person that violates Section 12(g) of this Act
17 or any UIC permit or term or condition thereof, or any
18 filing requirement, regulation or order relating to the
19 State UIC program for all wells, except Class II wells as
20 defined by the Board under this Act, shall be liable to a
21 civil penalty not to exceed $5,000 $2,500 per day of
22 violation; provided, however, that any person who commits
23 such violations relating to the State UIC program for
24 Class II wells, as defined by the Board under this Act,
25 shall be liable to a civil penalty of not to exceed $25,000
26 $10,000 for the violation and an additional civil penalty
HB2755 Enrolled - 141 - LRB104 08253 BDA 18303 b
1 of not to exceed $2,000 $1,000 for each day during which
2 the violation continues. The maximum penalties set forth
3 in this paragraph shall be increased as provided for in
4 subsection (l).
5 (3) Any person that violates Sections 21(f), 21(g),
6 21(h) or 21(i) of this Act, or any RCRA permit or term or
7 condition thereof, or any filing requirement, regulation
8 or order relating to the State RCRA program, shall be
9 liable to a civil penalty of not to exceed $50,000 $25,000
10 per day of violation. The maximum penalties set forth in
11 this paragraph shall be increased as provided for in
12 subsection (l).
13 (4) In an administrative citation action under Section
14 31.1 of this Act, any person found to have violated any
15 provision of subsection (o) of Section 21 of this Act
16 shall pay a civil penalty of $500 for each violation of
17 each such provision, plus any hearing costs incurred by
18 the Board and the Agency. Such penalties shall be made
19 payable to the Environmental Protection Trust Fund, to be
20 used in accordance with the provisions of the
21 Environmental Protection Trust Fund Act; except that if a
22 unit of local government issued the administrative
23 citation, 50% of the civil penalty shall be payable to the
24 unit of local government.
25 (4-5) In an administrative citation action under
26 Section 31.1 of this Act, any person found to have
HB2755 Enrolled - 142 - LRB104 08253 BDA 18303 b
1 violated any provision of subsection (p) of Section 21,
2 Section 22.38, Section 22.51, Section 22.51a, or
3 subsection (k) of Section 55 of this Act shall pay a civil
4 penalty of $1,500 for each violation of each such
5 provision, plus any hearing costs incurred by the Board
6 and the Agency, except that the civil penalty amount shall
7 be $3,000 for each violation of any provision of
8 subsection (p) of Section 21, Section 22.38, Section
9 22.51, Section 22.51a, or subsection (k) of Section 55
10 that is the person's second or subsequent adjudication
11 violation of that provision. The penalties shall be
12 deposited into the Environmental Protection Trust Fund, to
13 be used in accordance with the provisions of the
14 Environmental Protection Trust Fund Act; except that if a
15 unit of local government issued the administrative
16 citation, 50% of the civil penalty shall be payable to the
17 unit of local government.
18 (5) Any person who violates subsection 6 of Section
19 39.5 of this Act or any CAAPP permit, or term or condition
20 thereof, or any fee or filing requirement, or any duty to
21 allow or carry out inspection, entry or monitoring
22 activities, or any regulation or order relating to the
23 CAAPP shall be liable for a civil penalty not to exceed
24 $25,000 $10,000 per day of violation. The maximum
25 penalties set forth in this paragraph shall be increased
26 as provided for in subsection (l).
HB2755 Enrolled - 143 - LRB104 08253 BDA 18303 b
1 (6) Any owner or operator of a community water system
2 that violates subsection (b) of Section 18.1 or subsection
3 (a) of Section 25d-3 of this Act shall, for each day of
4 violation, be liable for a civil penalty not to exceed $10
5 $5 for each of the premises connected to the affected
6 community water system.
7 (7) Any person who violates Section 52.5 of this Act
8 shall be liable for a civil penalty of up to $2,500 $1,000
9 for the first violation of that Section and a civil
10 penalty of up to $5,000 $2,500 for a second or subsequent
11 violation of that Section.
12 (b.5) In lieu of the penalties set forth in subsections
13 (a) and (b) of this Section, any person who fails to file, in a
14 timely manner, toxic chemical release forms with the Agency
15 pursuant to Section 25b-2 of this Act shall be liable for a
16 civil penalty of $500 $100 per day for each day the forms are
17 late, not to exceed a maximum total penalty of $10,000 $6,000.
18 This daily penalty shall begin accruing on the thirty-first
19 day after the date that the person receives the warning notice
20 issued by the Agency pursuant to Section 25b-6 of this Act; and
21 the penalty shall be paid to the Agency. The daily accrual of
22 penalties shall cease as of January 1 of the following year.
23 All penalties collected by the Agency pursuant to this
24 subsection shall be deposited into the Environmental
25 Protection Permit and Inspection Fund.
26 (c) Any person that violates this Act, any rule or
HB2755 Enrolled - 144 - LRB104 08253 BDA 18303 b
1 regulation adopted under this Act, any permit or term or
2 condition of a permit, or any Board order and causes the death
3 of fish or aquatic life shall, in addition to the other
4 penalties provided by this Act, be liable to pay to the State
5 an additional sum for the reasonable value of the fish or
6 aquatic life destroyed. Any money so recovered shall be placed
7 in the Wildlife and Fish Fund in the State Treasury.
8 (d) The penalties provided for in this Section may be
9 recovered in a civil action.
10 (e) The State's Attorney of the county in which the
11 violation occurred, or the Attorney General, may, at the
12 request of the Agency or on his own motion, institute a civil
13 action for an injunction, prohibitory or mandatory, to
14 restrain violations of this Act, any rule or regulation
15 adopted under this Act, any permit or term or condition of a
16 permit, or any Board order, or to require such other actions as
17 may be necessary to address violations of this Act, any rule or
18 regulation adopted under this Act, any permit or term or
19 condition of a permit, or any Board order.
20 (f) The State's Attorney of the county in which the
21 violation occurred, or the Attorney General, shall bring such
22 actions in the name of the people of the State of Illinois.
23 Without limiting any other authority which may exist for the
24 awarding of attorney's fees and costs, the Board or a court of
25 competent jurisdiction may award costs and reasonable
26 attorney's fees, including the reasonable costs of expert
HB2755 Enrolled - 145 - LRB104 08253 BDA 18303 b
1 witnesses and consultants, to the State's Attorney or the
2 Attorney General in a case where he has prevailed against a
3 person who has committed a willful, knowing, or repeated
4 violation of this Act, any rule or regulation adopted under
5 this Act, any permit or term or condition of a permit, or any
6 Board order.
7 Any funds collected under this subsection (f) in which the
8 Attorney General has prevailed shall be deposited in the
9 Hazardous Waste Fund created in Section 22.2 of this Act. Any
10 funds collected under this subsection (f) in which a State's
11 Attorney has prevailed shall be retained by the county in
12 which he serves.
13 (g) All final orders imposing civil penalties pursuant to
14 this Section shall prescribe the time for payment of such
15 penalties. If any such penalty is not paid within the time
16 prescribed, interest on such penalty at the rate set forth in
17 subsection (a) of Section 1003 of the Illinois Income Tax Act,
18 shall be paid for the period from the date payment is due until
19 the date payment is received. However, if the time for payment
20 is stayed during the pendency of an appeal, interest shall not
21 accrue during such stay.
22 (h) In determining the appropriate civil penalty to be
23 imposed under subdivisions (a), (b)(1), (b)(2), (b)(3),
24 (b)(5), (b)(6), or (b)(7) of this Section, the Board is
25 authorized to consider any matters of record in mitigation or
26 aggravation of penalty, including, but not limited to, the
HB2755 Enrolled - 146 - LRB104 08253 BDA 18303 b
1 following factors:
2 (1) the duration and gravity of the violation;
3 (2) the presence or absence of due diligence on the
4 part of the respondent in attempting to comply with
5 requirements of this Act and regulations thereunder or to
6 secure relief therefrom as provided by this Act;
7 (3) any economic benefits accrued by the respondent
8 because of delay in compliance with requirements, in which
9 case the economic benefits shall be determined by the
10 lowest cost alternative for achieving compliance;
11 (4) the amount of monetary penalty which will serve to
12 deter further violations by the respondent and to
13 otherwise aid in enhancing voluntary compliance with this
14 Act by the respondent and other persons similarly subject
15 to the Act;
16 (5) the number, proximity in time, and gravity of
17 previously adjudicated violations of this Act by the
18 respondent;
19 (6) whether the respondent voluntarily self-disclosed,
20 in accordance with subsection (i) of this Section, the
21 non-compliance to the Agency;
22 (7) whether the respondent has agreed to undertake a
23 "supplemental environmental project", which means an
24 environmentally beneficial project that a respondent
25 agrees to undertake in settlement of an enforcement action
26 brought under this Act, but which the respondent is not
HB2755 Enrolled - 147 - LRB104 08253 BDA 18303 b
1 otherwise legally required to perform; and
2 (8) whether the respondent has successfully completed
3 a Compliance Commitment Agreement under subsection (a) of
4 Section 31 of this Act to remedy the violations that are
5 the subject of the complaint.
6 In determining the appropriate civil penalty to be imposed
7 under subsection (a) or paragraph (1), (2), (3), (5), (6), or
8 (7) of subsection (b) of this Section, the Board shall ensure,
9 in all cases, that the penalty is at least as great as the
10 economic benefits, if any, accrued by the respondent as a
11 result of the violation, unless the Board finds that
12 imposition of such penalty would result in an arbitrary or
13 unreasonable financial hardship. However, such civil penalty
14 may be off-set in whole or in part pursuant to a supplemental
15 environmental project agreed to by the complainant and the
16 respondent.
17 (i) A person who voluntarily self-discloses non-compliance
18 to the Agency, of which the Agency had been unaware, is
19 entitled to a 100% reduction in the portion of the penalty that
20 is not based on the economic benefit of non-compliance if the
21 person can establish the following:
22 (1) that either the regulated entity is a small entity
23 or the non-compliance was discovered through an
24 environmental audit or a compliance management system
25 documented by the regulated entity as reflecting the
26 regulated entity's due diligence in preventing, detecting,
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1 and correcting violations;
2 (2) that the non-compliance was disclosed in writing
3 within 30 days of the date on which the person discovered
4 it;
5 (3) that the non-compliance was discovered and
6 disclosed prior to:
7 (i) the commencement of an Agency inspection,
8 investigation, or request for information;
9 (ii) notice of a citizen suit;
10 (iii) the filing of a complaint by a citizen, the
11 Illinois Attorney General, or the State's Attorney of
12 the county in which the violation occurred;
13 (iv) the reporting of the non-compliance by an
14 employee of the person without that person's
15 knowledge; or
16 (v) imminent discovery of the non-compliance by
17 the Agency;
18 (4) that the non-compliance is being corrected and any
19 environmental harm is being remediated in a timely
20 fashion;
21 (5) that the person agrees to prevent a recurrence of
22 the non-compliance;
23 (6) that no related non-compliance events have
24 occurred in the past 3 years at the same facility or in the
25 past 5 years as part of a pattern at multiple facilities
26 owned or operated by the person;
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1 (7) that the non-compliance did not result in serious
2 actual harm or present an imminent and substantial
3 endangerment to human health or the environment or violate
4 the specific terms of any judicial or administrative order
5 or consent agreement;
6 (8) that the person cooperates as reasonably requested
7 by the Agency after the disclosure; and
8 (9) that the non-compliance was identified voluntarily
9 and not through a monitoring, sampling, or auditing
10 procedure that is required by statute, rule, permit,
11 judicial or administrative order, or consent agreement.
12 If a person can establish all of the elements under this
13 subsection except the element set forth in paragraph (1) of
14 this subsection, the person is entitled to a 75% reduction in
15 the portion of the penalty that is not based upon the economic
16 benefit of non-compliance.
17 For the purposes of this subsection (i), "small entity"
18 has the same meaning as in Section 221 of the federal Small
19 Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C.
20 601).
21 (j) In addition to any other remedy or penalty that may
22 apply, whether civil or criminal, any person who violates
23 Section 22.52 of this Act shall be liable for an additional
24 civil penalty of up to 3 times the gross amount of any
25 pecuniary gain resulting from the violation.
26 (k) In addition to any other remedy or penalty that may
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1 apply, whether civil or criminal, any person who violates
2 subdivision (a)(7.6) of Section 31 of this Act shall be liable
3 for an additional civil penalty of $2,000.
4 (l) As used in this Section, "consumer price index-u"
5 means the index published by the Bureau of Labor Statistics of
6 the United States Department of Labor that measures the
7 average change in prices of goods and services purchased by
8 all urban consumers, United States city average, all items,
9 1982-84 = 100. On July 1, 2026 and July 1 of each year
10 thereafter, the maximum penalties set forth in subsection (a)
11 and paragraphs (1), (2), (3), and (5) of subsection (b) shall
12 each be increased by an amount equal to the annual unadjusted
13 percentage increase in the consumer price index-u for the 12
14 months ending with the March preceding each July 1, including
15 all previous adjustments.
16 (Source: P.A. 102-310, eff. 8-6-21.)
17 ARTICLE 10
18 Section 10-5. The Hotel Operators' Occupation Tax Act is
19 amended by changing Section 2 as follows:
20 (35 ILCS 145/2) (from Ch. 120, par. 481b.32)
21 Sec. 2. Definitions. As used in this Act, unless the
22 context otherwise requires:
23 (1) "Hotel" means any building or buildings in which the
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1 public may, for a consideration, obtain living quarters,
2 sleeping or housekeeping accommodations. The term includes,
3 but is not limited to, inns, motels, tourist homes or courts,
4 lodging houses, rooming houses and apartment houses, retreat
5 centers, conference centers, and hunting lodges, and
6 short-term rentals. For the purposes of re-renters of hotel
7 rooms only, "hotel" does not include a short-term rental.
8 (2) "Operator" means any person engaged in the business of
9 renting, leasing, or letting rooms in a hotel.
10 (3) "Occupancy" means the use or possession, or the right
11 to the use or possession, of any room or rooms in a hotel for
12 any purpose, or the right to the use or possession of the
13 furnishings or to the services and accommodations accompanying
14 the use and possession of the room or rooms.
15 (4) "Room" or "rooms" means any living quarters, sleeping
16 or housekeeping accommodations.
17 (5) "Permanent resident" means any person who occupied or
18 has the right to occupy any room or rooms, regardless of
19 whether or not it is the same room or rooms, in a hotel for at
20 least 30 consecutive days.
21 (6) "Rent" or "rental" means the consideration received
22 for occupancy, valued in money, whether received in money or
23 otherwise, including all receipts, cash, credits, and property
24 or services of any kind or nature. "Rent" or "rental" includes
25 any fee, charge, or commission received from a guest by a
26 re-renter of hotel rooms specifically in connection with the
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1 re-rental of hotel rooms, but does not include any fee,
2 charge, or commission received from a short-term rental by a
3 hosting platform.
4 (7) "Department" means the Department of Revenue.
5 (8) "Person" means any natural individual, firm,
6 partnership, association, joint stock company, joint
7 adventure, public or private corporation, limited liability
8 company, or a receiver, executor, trustee, guardian, or other
9 representative appointed by order of any court.
10 (9) "Re-renter of hotel rooms" means a person who is not
11 employed by the hotel operator but who, either directly or
12 indirectly, through agreements or arrangements with third
13 parties, collects or processes the payment of rent for a hotel
14 room located in this State and (i) obtains the right or
15 authority to grant control of, access to, or occupancy of a
16 hotel room in this State to a guest of the hotel or (ii)
17 facilitates the booking of a hotel room located in this State.
18 A person who obtains those rights or authorities is not
19 considered a re-renter of a hotel room if the person operates
20 under a shared hotel brand with the operator.
21 (10) "Hosting platform" or "platform" means a person who
22 provides an online application, software, website, or system
23 through which a short-term rental located in this State is
24 advertised or held out to the public as available to rent for
25 occupancy. For purposes of this definition, "short-term
26 rental" means an owner-occupied, tenant-occupied, or
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1 non-owner-occupied dwelling, including, but not limited to, an
2 apartment, house, cottage, or condominium, located in this
3 State, where: (i) at least one room in the dwelling is rented
4 to an occupant for a period of less than 30 consecutive days;
5 and (ii) all accommodations are reserved in advance; provided,
6 however, that a dwelling shall be considered a single room if
7 rented as such.
8 (11) "Shared hotel brand" means an identifying trademark
9 that a hotel operator is expressly licensed to operate under
10 in accordance with the terms of a hotel franchise or
11 management agreement.
12 (Source: P.A. 103-592, eff. 7-1-24; revised 10-21-24.)
13 Section 10-10. The Tobacco Products Tax Act of 1995 is
14 amended by changing Sections 10-5, 10-10, 10-21, and 10-30 as
15 follows:
16 (35 ILCS 143/10-5)
17 Sec. 10-5. Definitions. For purposes of this Act:
18 "Business" means any trade, occupation, activity, or
19 enterprise engaged in, at any location whatsoever, for the
20 purpose of selling tobacco products.
21 "Cigarette" has the meaning ascribed to the term in
22 Section 1 of the Cigarette Tax Act.
23 "Contraband little cigar" means:
24 (1) packages of little cigars containing 20 or 25
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1 little cigars that do not bear a required tax stamp under
2 this Act;
3 (2) packages of little cigars containing 20 or 25
4 little cigars that bear a fraudulent, imitation, or
5 counterfeit tax stamp;
6 (3) packages of little cigars containing 20 or 25
7 little cigars that are improperly tax stamped, including
8 packages of little cigars that bear only a tax stamp of
9 another state or taxing jurisdiction; or
10 (4) packages of little cigars containing other than 20
11 or 25 little cigars in the possession of a distributor,
12 retailer or wholesaler, unless the distributor, retailer,
13 or wholesaler possesses, or produces within the time frame
14 provided in Section 10-27 or 10-28 of this Act, an invoice
15 from a stamping distributor, distributor, or wholesaler
16 showing that the tax on the packages has been or will be
17 paid.
18 "Correctional Industries program" means a program run by a
19 State penal institution in which residents of the penal
20 institution produce tobacco products for sale to persons
21 incarcerated in penal institutions or resident patients of a
22 State operated mental health facility.
23 "Department" means the Illinois Department of Revenue.
24 "Distributor" means any of the following:
25 (1) Any manufacturer or wholesaler in this State
26 engaged in the business of selling tobacco products who
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1 sells, exchanges, or distributes tobacco products to
2 retailers or consumers in this State.
3 (2) Any manufacturer or wholesaler engaged in the
4 business of selling tobacco products from without this
5 State who sells, exchanges, distributes, ships, or
6 transports tobacco products to retailers or consumers
7 located in this State, so long as that manufacturer or
8 wholesaler has or maintains within this State, directly or
9 by subsidiary, an office, sales house, or other place of
10 business, or any agent or other representative operating
11 within this State under the authority of the person or
12 subsidiary, irrespective of whether the place of business
13 or agent or other representative is located here
14 permanently or temporarily.
15 (3) Any retailer who receives tobacco products on
16 which the tax has not been or will not be paid by another
17 distributor.
18 "Distributor" does not include any person, wherever
19 resident or located, who makes, manufactures, or fabricates
20 tobacco products as part of a Correctional Industries program
21 for sale to residents incarcerated in penal institutions or
22 resident patients of a State operated mental health facility.
23 "Electronic cigarette" means:
24 (1) any device that employs a battery or other
25 mechanism to heat a solution or substance to produce a
26 vapor or aerosol intended for inhalation, except for (A)
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1 any device designed solely for use with cannabis that
2 contains a statement on the retail packaging that the
3 device is designed solely for use with cannabis and not
4 for use with tobacco or (B) any device that contains a
5 solution or substance that contains cannabis subject to
6 tax under the Compassionate Use of Medical Cannabis
7 Program Act or the Cannabis Regulation and Tax Act;
8 (2) any cartridge or container of a solution or
9 substance intended to be used with or in the device or to
10 refill the device, except for any cartridge or container
11 of a solution or substance that contains cannabis subject
12 to tax under the Compassionate Use of Medical Cannabis
13 Program Act or the Cannabis Regulation and Tax Act; or
14 (3) any solution or substance, whether or not it
15 contains nicotine, intended for use in the device, except
16 for any solution or substance that contains cannabis
17 subject to tax under the Compassionate Use of Medical
18 Cannabis Program Act or the Cannabis Regulation and Tax
19 Act.
20 The changes made to the definition of "electronic
21 cigarette" by this amendatory Act of the 102nd General
22 Assembly apply on and after June 28, 2019, but no claim for
23 credit or refund is allowed on or after the effective date of
24 this amendatory Act of the 102nd General Assembly for such
25 taxes paid during the period beginning June 28, 2019 and the
26 effective date of this amendatory Act of the 102nd General
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1 Assembly.
2 "Electronic cigarette" includes, but is not limited to,
3 any electronic nicotine delivery system, electronic cigar,
4 electronic cigarillo, electronic pipe, electronic hookah, vape
5 pen, or similar product or device, and any component or part
6 that can be used to build the product or device. "Electronic
7 cigarette" does not include: cigarettes, as defined in Section
8 1 of the Cigarette Tax Act; any product approved by the United
9 States Food and Drug Administration for sale as a tobacco
10 cessation product, a tobacco dependence product, or for other
11 medical purposes that is marketed and sold solely for that
12 approved purpose; any asthma inhaler prescribed by a physician
13 for that condition that is marketed and sold solely for that
14 approved purpose; or any therapeutic product approved for use
15 under the Compassionate Use of Medical Cannabis Program Act.
16 "Little cigar" means and includes any roll, made wholly or
17 in part of tobacco, where such roll has an integrated
18 cellulose acetate filter and weighs less than 4 pounds per
19 thousand and the wrapper or cover of which is made in whole or
20 in part of tobacco.
21 "Manufacturer" means any person, wherever resident or
22 located, who manufactures and sells tobacco products, except a
23 person who makes, manufactures, or fabricates tobacco products
24 as a part of a Correctional Industries program for sale to
25 persons incarcerated in penal institutions or resident
26 patients of a State operated mental health facility.
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1 Beginning on January 1, 2013, "moist snuff" means any
2 finely cut, ground, or powdered tobacco that is not intended
3 to be smoked, but shall not include any finely cut, ground, or
4 powdered tobacco that is intended to be placed in the nasal
5 cavity.
6 "Nicotine" means any form of the chemical nicotine,
7 including any salt or complex, regardless of whether the
8 chemical is naturally or synthetically derived, and includes
9 nicotinic alkaloids and nicotine analogs.
10 "Person" means any natural individual, firm, partnership,
11 association, joint stock company, joint venture, limited
12 liability company, or public or private corporation, however
13 formed, or a receiver, executor, administrator, trustee,
14 conservator, or other representative appointed by order of any
15 court.
16 "Place of business" means and includes any place where
17 tobacco products are sold or where tobacco products are
18 manufactured, stored, or kept for the purpose of sale or
19 consumption, including any vessel, vehicle, airplane, train,
20 or vending machine.
21 "Prior continuous compliance taxpayer" means any person
22 who is licensed under this Act and who, having been a licensee
23 for a continuous period of 2 years, is determined by the
24 Department not to have been either delinquent or deficient in
25 the payment of tax liability during that period or otherwise
26 in violation of this Act. "Prior continuous compliance
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1 taxpayer" also means any taxpayer who has, as verified by the
2 Department, continuously complied with the condition of his
3 bond or other security under provisions of this Act for a
4 period of 2 consecutive years. In calculating the consecutive
5 period of time described in this definition for qualification
6 as a prior continuous compliance taxpayer, a consecutive
7 period of time of qualifying compliance immediately prior to
8 the effective date of this amendatory Act of the 103rd General
9 Assembly shall be credited to any licensee who became licensed
10 on or before the effective date of this amendatory Act of the
11 103rd General Assembly. A distributor that is a prior
12 continuous compliance taxpayer and becomes a successor to a
13 distributor as the result of an acquisition, merger, or
14 consolidation of that distributor shall be deemed to be a
15 prior continuous compliance taxpayer with respect to the
16 acquired, merged, or consolidated entity.
17 "Retailer" means any person in this State engaged in the
18 business of selling tobacco products to consumers in this
19 State, regardless of quantity or number of sales.
20 "Sale" means any transfer, exchange, or barter in any
21 manner or by any means whatsoever for a consideration and
22 includes all sales made by persons.
23 "Stamp" or "stamps" mean the indicia required to be
24 affixed on a package of little cigars that evidence payment of
25 the tax on packages of little cigars containing 20 or 25 little
26 cigars under Section 10-10 of this Act. These stamps shall be
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1 the same stamps used for cigarettes under the Cigarette Tax
2 Act.
3 "Stamping distributor" means a distributor licensed under
4 this Act and also licensed as a distributor under the
5 Cigarette Tax Act or Cigarette Use Tax Act.
6 "Tobacco products" means any product that is made from or
7 derived from tobacco that is intended for human consumption or
8 is likely to be consumed, including but not limited to cigars,
9 including little cigars; cheroots; stogies; periques;
10 granulated, plug cut, crimp cut, ready rubbed, and other
11 smoking tobacco; snuff (including moist snuff) and or snuff
12 flour; cavendish; plug and twist tobacco; fine-cut and other
13 chewing tobaccos; shorts; refuse scraps, clippings, cuttings,
14 and sweeping of tobacco; snus; shisha and tobacco for use in
15 waterpipes; and other kinds and forms of tobacco, prepared in
16 such manner as to be suitable for chewing or smoking in a pipe
17 or otherwise, or both for chewing and smoking or for
18 inhalation, absorption, or ingesting by any other means; but
19 does not include cigarettes as defined in Section 1 of the
20 Cigarette Tax Act or tobacco purchased for the manufacture of
21 cigarettes by cigarette distributors and manufacturers defined
22 in the Cigarette Tax Act and persons who make, manufacture, or
23 fabricate cigarettes as a part of a Correctional Industries
24 program for sale to residents incarcerated in penal
25 institutions or resident patients of a State operated mental
26 health facility.
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1 Beginning on July 1, 2019, "tobacco products" also
2 includes electronic cigarettes.
3 Beginning July 1, 2025, "tobacco products" also includes
4 any product that is made from or derived from tobacco, or that
5 contains nicotine whether natural or synthetic, that is
6 intended for human consumption or is likely to be consumed,
7 including but not limited to nicotine pouches, lozenges, and
8 gum; and other kinds and forms of nicotine prepared in such
9 manner as to be suitable for chewing or smoking in a pipe or
10 otherwise, or both for chewing and smoking or for inhalation,
11 absorption, or ingesting by any other means.
12 "Tobacco products" does not include any product that has
13 been approved by the United States Food and Drug
14 Administration for sale as a tobacco or smoking cessation
15 product, a nicotine replacement therapy product, or for other
16 medical purposes where that product is marketed and sold
17 solely for such approved use, including but not limited to
18 spray or inhaler prescribed by a physician, chewing gum, skin
19 patches, or lozenges.
20 "Wholesale price" means the established list price for
21 which a manufacturer sells tobacco products to a distributor,
22 before the allowance of any discount, trade allowance, rebate,
23 or other reduction. In the absence of such an established list
24 price, the manufacturer's invoice price at which the
25 manufacturer sells the tobacco product to unaffiliated
26 distributors, before any discounts, trade allowances, rebates,
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1 or other reductions, shall be presumed to be the wholesale
2 price.
3 "Wholesaler" means any person, wherever resident or
4 located, engaged in the business of selling tobacco products
5 to others for the purpose of resale. "Wholesaler", when used
6 in this Act, does not include a person licensed as a
7 distributor under Section 10-20 of this Act unless expressly
8 stated in this Act.
9 (Source: P.A. 102-40, eff. 6-25-21; 103-1001, eff. 8-9-24.)
10 (35 ILCS 143/10-10)
11 Sec. 10-10. Tax imposed.
12 (a) Except as otherwise provided in this Section with
13 respect to little cigars, on the first day of the third month
14 after the month in which this Act becomes law, a tax is imposed
15 on any person engaged in business as a distributor of tobacco
16 products, as defined in Section 10-5, at the rate of (i) 18% of
17 the wholesale price of tobacco products sold or otherwise
18 disposed of to retailers or consumers located in this State
19 prior to July 1, 2012; and (ii) 36% of the wholesale price of
20 tobacco products sold or otherwise disposed of to retailers or
21 consumers located in this State beginning on July 1, 2012 and
22 through June 30, 2025; except that, beginning on January 1,
23 2013 and through June 30, 2025, the tax on moist snuff shall be
24 imposed at a rate of $0.30 per ounce, and a proportionate tax
25 at the like rate on all fractional parts of an ounce, sold or
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1 otherwise disposed of to retailers or consumers located in
2 this State; and except that, beginning July 1, 2019 and
3 through June 30, 2025, the tax on electronic cigarettes shall
4 be imposed at the rate of 15% of the wholesale price of
5 electronic cigarettes sold or otherwise disposed of to
6 retailers or consumers located in this State; and (iii) 45% of
7 the wholesale price of tobacco products, including moist snuff
8 and electronic cigarettes, sold or otherwise disposed of to
9 retailers or consumers located in this State on and after July
10 1, 2025. The tax is in addition to all other occupation or
11 privilege taxes imposed by the State of Illinois, by any
12 political subdivision thereof, or by any municipal
13 corporation. However, the tax is not imposed upon any activity
14 in that business in interstate commerce or otherwise, to the
15 extent to which that activity may not, under the Constitution
16 and Statutes of the United States, be made the subject of
17 taxation by this State, and except that, beginning July 1,
18 2013, the tax on little cigars shall be imposed at the same
19 rate, and the proceeds shall be distributed in the same
20 manner, as the tax imposed on cigarettes under the Cigarette
21 Tax Act. The tax is also not imposed on sales made to the
22 United States or any entity thereof.
23 (b) Notwithstanding subsection (a) of this Section,
24 stamping distributors of packages of little cigars containing
25 20 or 25 little cigars sold or otherwise disposed of in this
26 State shall remit the tax by purchasing tax stamps from the
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1 Department and affixing them to packages of little cigars in
2 the same manner as stamps are purchased and affixed to
3 cigarettes under the Cigarette Tax Act, unless the stamping
4 distributor sells or otherwise disposes of those packages of
5 little cigars to another stamping distributor. Only persons
6 meeting the definition of "stamping distributor" contained in
7 Section 10-5 of this Act may affix stamps to packages of little
8 cigars containing 20 or 25 little cigars. Stamping
9 distributors may not sell or dispose of little cigars at
10 retail to consumers or users at locations where stamping
11 distributors affix stamps to packages of little cigars
12 containing 20 or 25 little cigars.
13 (c) The impact of the tax levied by this Act is imposed
14 upon distributors engaged in the business of selling tobacco
15 products to retailers or consumers in this State. Whenever a
16 stamping distributor brings or causes to be brought into this
17 State from without this State, or purchases from without or
18 within this State, any packages of little cigars containing 20
19 or 25 little cigars upon which there are no tax stamps affixed
20 as required by this Act, for purposes of resale or disposal in
21 this State to a person not a stamping distributor, then such
22 stamping distributor shall pay the tax to the Department and
23 add the amount of the tax to the price of such packages sold by
24 such stamping distributor. Payment of the tax shall be
25 evidenced by a stamp or stamps affixed to each package of
26 little cigars containing 20 or 25 little cigars.
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1 Stamping distributors paying the tax to the Department on
2 packages of little cigars containing 20 or 25 little cigars
3 sold to other distributors, wholesalers or retailers shall add
4 the amount of the tax to the price of the packages of little
5 cigars containing 20 or 25 little cigars sold by such stamping
6 distributors.
7 (d) Beginning on January 1, 2013, the tax rate imposed per
8 ounce of moist snuff may not exceed 15% of the tax imposed upon
9 a package of 20 cigarettes pursuant to the Cigarette Tax Act.
10 (e) All moneys received by the Department under this Act
11 from sales occurring prior to July 1, 2012 shall be paid into
12 the Long-Term Care Provider Fund of the State Treasury. Of the
13 moneys received by the Department from sales occurring on or
14 after July 1, 2012, except for moneys received from the tax
15 imposed on the sale of little cigars, 50% shall be paid into
16 the Long-Term Care Provider Fund and 50% shall be paid into the
17 Healthcare Provider Relief Fund. Beginning July 1, 2013, all
18 moneys received by the Department under this Act from the tax
19 imposed on little cigars shall be distributed as provided in
20 Section 2 of the Cigarette Tax Act. Of the moneys received by
21 the Department under this Act from sales occurring on or after
22 July 1, 2025, except for moneys received from the tax imposed
23 on the sale of little cigars, the first $5,000,000 collected
24 in each fiscal year shall be paid into the Tobacco Settlement
25 Recovery Fund for tobacco health initiatives at the Department
26 of Public Health, and the remainder of the moneys collected in
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1 each fiscal year shall be paid as follows: 50% shall be paid
2 into the Long-Term Care Provider Fund; and 50% shall be paid
3 into the Healthcare Provider Relief Fund.
4 (Source: P.A. 101-31, eff. 6-28-19.)
5 (35 ILCS 143/10-21)
6 Sec. 10-21. Retailer's license. Beginning on January 1,
7 2016, no person may engage in business as a retailer of tobacco
8 products in this State without first having obtained a license
9 from the Department. Application for license shall be made to
10 the Department, by electronic means, in a form prescribed by
11 the Department. Each applicant for a license under this
12 Section shall furnish to the Department, in an electronic
13 format established by the Department, the following
14 information:
15 (1) the name and address of the applicant;
16 (2) the address of the location at which the applicant
17 proposes to engage in business as a retailer of tobacco
18 products in this State;
19 (3) such other additional information as the
20 Department may lawfully require by its rules and
21 regulations.
22 The annual license fee payable to the Department for each
23 retailer's license shall be $150 $75. The fee will be
24 deposited into the Tax Compliance and Administration Fund and
25 shall be used for the cost of tobacco retail inspection and
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1 contraband tobacco and tobacco smuggling with at least
2 two-thirds of the money being used for contraband tobacco and
3 tobacco smuggling operations and enforcement.
4 Each applicant for license shall pay such fee to the
5 Department at the time of submitting its application for
6 license to the Department. The Department shall require an
7 applicant for a license under this Section to electronically
8 file and pay the fee.
9 A separate annual license fee shall be paid for each place
10 of business at which a person who is required to procure a
11 retailer's license under this Section proposes to engage in
12 business as a retailer in Illinois under this Act.
13 The following are ineligible to receive a retailer's
14 license under this Act:
15 (1) a person who has been convicted of a felony under
16 any federal or State law for smuggling cigarettes or
17 tobacco products or tobacco tax evasion, if the
18 Department, after investigation and a hearing if requested
19 by the applicant, determines that such person has not been
20 sufficiently rehabilitated to warrant the public trust;
21 and
22 (2) a corporation, if any officer, manager or director
23 thereof, or any stockholder or stockholders owning in the
24 aggregate more than 5% of the stock of such corporation,
25 would not be eligible to receive a license under this Act
26 for any reason.
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1 The Department, upon receipt of an application and license
2 fee, in proper form, from a person who is eligible to receive a
3 retailer's license under this Act, shall issue to such
4 applicant a license in form as prescribed by the Department,
5 which license shall permit the applicant to which it is issued
6 to engage in business as a retailer under this Act at the place
7 shown in his application. All licenses issued by the
8 Department under this Section shall be valid for a period not
9 to exceed one year after issuance unless sooner revoked,
10 canceled or suspended as provided in this Act. No license
11 issued under this Section is transferable or assignable. Such
12 license shall be conspicuously displayed in the place of
13 business conducted by the licensee in Illinois under such
14 license. A person who obtains a license as a retailer who
15 ceases to do business as specified in the license, or who never
16 commenced business, or whose license is suspended or revoked,
17 shall immediately surrender the license to the Department. The
18 Department shall not issue a license to a retailer unless the
19 retailer is also validly registered under the Retailers
20 Occupation Tax Act.
21 A retailer as defined under this Act need not obtain an
22 additional license under this Act, but shall be deemed to be
23 sufficiently licensed by virtue of his being properly licensed
24 as a retailer under Section 4g of the Cigarette Tax Act.
25 Any person aggrieved by any decision of the Department
26 under this Section may, within 30 days after notice of the
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1 decision, protest and request a hearing. Upon receiving a
2 request for a hearing, the Department shall give notice to the
3 person requesting the hearing of the time and place fixed for
4 the hearing and shall hold a hearing in conformity with the
5 provisions of this Act and then issue its final administrative
6 decision in the matter to that person. In the absence of a
7 protest and request for a hearing within 30 days, the
8 Department's decision shall become final without any further
9 determination being made or notice given.
10 (Source: P.A. 98-1055, eff. 1-1-16; 99-78, eff. 7-20-15;
11 99-192, eff. 1-1-16.)
12 (35 ILCS 143/10-30)
13 Sec. 10-30. Returns.
14 (a) Every distributor shall, on or before the 15th day of
15 each month, file a return with the Department covering the
16 preceding calendar month. Through June 30, 2025, the The
17 return shall disclose the wholesale price for all tobacco
18 products other than moist snuff and the quantity in ounces of
19 moist snuff sold or otherwise disposed of and other
20 information that the Department may reasonably require.
21 Beginning July 1, 2025, the return shall disclose the
22 wholesale price for all tobacco products, including moist
23 snuff, sold or otherwise disposed of and other information
24 that the Department may reasonably require. Information that
25 the Department may reasonably require includes information
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1 related to the uniform regulation and taxation of tobacco
2 products. The return shall be filed upon a form prescribed and
3 furnished by the Department.
4 (b) In addition to the information required under
5 subsection (a), on or before the 15th day of each month,
6 covering the preceding calendar month, each stamping
7 distributor shall, on forms prescribed and furnished by the
8 Department, report the quantity of little cigars sold or
9 otherwise disposed of, including the number of packages of
10 little cigars sold or disposed of during the month containing
11 20 or 25 little cigars.
12 (c) At the time when any return of any distributor is due
13 to be filed with the Department, the distributor shall also
14 remit to the Department the tax liability that the distributor
15 has incurred for transactions occurring in the preceding
16 calendar month.
17 (d) The Department may adopt rules to require the
18 electronic filing of any return or document required to be
19 filed under this Act. Those rules may provide for exceptions
20 from the filing requirement set forth in this paragraph for
21 persons who demonstrate that they do not have access to the
22 Internet and petition the Department to waive the electronic
23 filing requirement.
24 (e) If any payment provided for in this Section exceeds
25 the distributor's liabilities under this Act, as shown on an
26 original return, the distributor may credit such excess
HB2755 Enrolled - 171 - LRB104 08253 BDA 18303 b
1 payment against liability subsequently to be remitted to the
2 Department under this Act, in accordance with reasonable rules
3 adopted by the Department.
4 (Source: P.A. 103-592, eff. 1-1-25.)
5 Section 10-15. The Prevention of Tobacco Use by Persons
6 under 21 Years of Age and Sale and Distribution of Tobacco
7 Products Act is amended by changing Section 1 as follows:
8 (720 ILCS 675/1) (from Ch. 23, par. 2357)
9 Sec. 1. Prohibition on sale of tobacco products,
10 electronic cigarettes, and alternative nicotine products to
11 persons under 21 years of age; prohibition on the distribution
12 of tobacco product samples, electronic cigarette samples, and
13 alternative nicotine product samples to any person; use of
14 identification cards; vending machines; lunch wagons;
15 out-of-package sales.
16 (a) No person shall sell, buy for, distribute samples of
17 or furnish any tobacco product, electronic cigarette, or
18 alternative nicotine product to any person under 21 years of
19 age.
20 (a-5) No person under 16 years of age may sell any tobacco
21 product, electronic cigarette, or alternative nicotine product
22 at a retail establishment selling tobacco products, electronic
23 cigarettes, or alternative nicotine products. This subsection
24 does not apply to a sales clerk in a family-owned business
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1 which can prove that the sales clerk is in fact a son or
2 daughter of the owner.
3 (a-5.1) Before selling, offering for sale, giving, or
4 furnishing a tobacco product, electronic cigarette, or
5 alternative nicotine product to another person, the person
6 selling, offering for sale, giving, or furnishing the tobacco
7 product, electronic cigarette, or alternative nicotine product
8 shall verify that the person is at least 21 years of age by:
9 (1) examining from any person that appears to be under
10 30 years of age a government-issued photographic
11 identification that establishes the person to be 21 years
12 of age or older; or
13 (2) for sales of tobacco products, electronic
14 cigarettes, or alternative nicotine products made through
15 the Internet or other remote sales methods, performing an
16 age verification through an independent, third party age
17 verification service that compares information available
18 from public records to the personal information entered by
19 the person during the ordering process that establishes
20 the person is 21 years of age or older.
21 (a-5.2) No person shall cause electronic cigarettes
22 ordered or purchased by mail, through the Internet, or other
23 remote sale methods, to be shipped to anyone under 21 years of
24 age in the State other than (i) a distributor, as defined in
25 Section 1 of the Cigarette Tax Act, Section 1 of the Cigarette
26 Use Tax Act, Section 10-5 of the Tobacco Products Tax Act of
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1 1995, and Section 5 of the Preventing Youth Vaping Act, or (ii)
2 a retailer, as defined in Section 1 of the Cigarette Tax Act,
3 Section 10-5 of the Tobacco Products Tax Act of 1995, and
4 Section 5 of the Preventing Youth Vaping Act.
5 (a-6) No person under 21 years of age in the furtherance or
6 facilitation of obtaining any tobacco product, electronic
7 cigarette, or alternative nicotine product shall display or
8 use a false or forged identification card or transfer, alter,
9 or deface an identification card.
10 (a-7) (Blank).
11 (a-8) A person shall not distribute without charge samples
12 of any tobacco product, alternative nicotine product, or
13 electronic cigarette to any other person, regardless of age,
14 except for smokeless tobacco in an adult-only facility.
15 This subsection (a-8) does not apply to the distribution
16 of a tobacco product, electronic cigarette, or alternative
17 nicotine product sample in any adult-only facility.
18 (a-9) For the purpose of this Section:
19 "Adult-only facility" means a facility or restricted
20 area (whether open-air or enclosed) where the operator
21 ensures or has a reasonable basis to believe (such as by
22 checking identification as required under State law, or by
23 checking the identification of any person appearing to be
24 under the age of 30) that no person under legal age is
25 present. A facility or restricted area need not be
26 permanently restricted to persons under 21 years of age to
HB2755 Enrolled - 174 - LRB104 08253 BDA 18303 b
1 constitute an adult-only facility, provided that the
2 operator ensures or has a reasonable basis to believe that
3 no person under 21 years of age is present during the event
4 or time period in question.
5 "Alternative nicotine product" means a product or
6 device not consisting of or containing tobacco that
7 provides for the ingestion into the body of nicotine,
8 whether by chewing, smoking, absorbing, dissolving,
9 inhaling, snorting, sniffing, or by any other means.
10 "Alternative nicotine product" does not include:
11 cigarettes as defined in Section 1 of the Cigarette Tax
12 Act; tobacco products and electronic cigarettes and
13 tobacco products as defined in Section 10-5 of the Tobacco
14 Products Tax Act of 1995; tobacco product and electronic
15 cigarette as defined in this Section; or any product
16 approved by the United States Food and Drug Administration
17 for sale as a tobacco cessation product, as a tobacco
18 dependence product, or for other medical purposes, and is
19 being marketed and sold solely for that approved purpose.
20 "Electronic cigarette" means:
21 (1) any device that employs a battery or other
22 mechanism to heat a solution or substance to produce a
23 vapor or aerosol intended for inhalation;
24 (2) any cartridge or container of a solution or
25 substance intended to be used with or in the device or
26 to refill the device; or
HB2755 Enrolled - 175 - LRB104 08253 BDA 18303 b
1 (3) any solution or substance, whether or not it
2 contains nicotine intended for use in the device.
3 "Electronic cigarette" includes, but is not limited
4 to, any electronic nicotine delivery system, electronic
5 cigar, electronic cigarillo, electronic pipe, electronic
6 hookah, vape pen, or similar product or device, any
7 components or parts that can be used to build the product
8 or device, and any component, part, or accessory of a
9 device used during the operation of the device, even if
10 the part or accessory was sold separately. "Electronic
11 cigarette" does not include: cigarettes as defined in
12 Section 1 of the Cigarette Tax Act; tobacco product and
13 alternative nicotine product as defined in this Section;
14 any product approved by the United States Food and Drug
15 Administration for sale as a tobacco cessation product, as
16 a tobacco dependence product, or for other medical
17 purposes, and is being marketed and sold solely for that
18 approved purpose; any asthma inhaler prescribed by a
19 physician for that condition and is being marketed and
20 sold solely for that approved purpose; any device that
21 meets the definition of cannabis paraphernalia under
22 Section 1-10 of the Cannabis Regulation and Tax Act; or
23 any cannabis product sold by a dispensing organization
24 pursuant to the Cannabis Regulation and Tax Act or the
25 Compassionate Use of Medical Cannabis Program Act.
26 "Lunch wagon" means a mobile vehicle designed and
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1 constructed to transport food and from which food is sold
2 to the general public.
3 "Nicotine" means any form of the chemical nicotine,
4 including any salt or complex, regardless of whether the
5 chemical is naturally or synthetically derived.
6 "Tobacco product" means any product containing or made
7 from tobacco that is intended for human consumption,
8 whether smoked, heated, chewed, absorbed, dissolved,
9 inhaled, snorted, sniffed, or ingested by any other means,
10 including, but not limited to, cigarettes, cigars, little
11 cigars, chewing tobacco, pipe tobacco, snuff, snus, and
12 any other smokeless tobacco product which contains tobacco
13 that is finely cut, ground, powdered, or leaf and intended
14 to be placed in the oral cavity. "Tobacco product"
15 includes any component, part, or accessory of a tobacco
16 product, whether or not sold separately. "Tobacco product"
17 does not include: an alternative nicotine product as
18 defined in this Section; or any product that has been
19 approved by the United States Food and Drug Administration
20 for sale as a tobacco cessation product, as a tobacco
21 dependence product, or for other medical purposes, and is
22 being marketed and sold solely for that approved purpose.
23 (b) Tobacco products, electronic cigarettes, and
24 alternative nicotine products may be sold through a vending
25 machine only if such tobacco products, electronic cigarettes,
26 and alternative nicotine products are not placed together with
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1 any non-tobacco product, other than matches, in the vending
2 machine and the vending machine is in any of the following
3 locations:
4 (1) (Blank).
5 (2) Places to which persons under 21 years of age are
6 not permitted access at any time.
7 (3) Places where alcoholic beverages are sold and
8 consumed on the premises and vending machine operation is
9 under the direct supervision of the owner or manager.
10 (4) (Blank).
11 (5) (Blank).
12 (c) (Blank).
13 (d) The sale or distribution by any person of a tobacco
14 product as defined in this Section, including, but not limited
15 to, a single or loose cigarette, that is not contained within a
16 sealed container, pack, or package as provided by the
17 manufacturer, which container, pack, or package bears the
18 health warning required by federal law, is prohibited.
19 (e) It is not a violation of this Act for a person under 21
20 years of age to purchase a tobacco product, electronic
21 cigarette, or alternative nicotine product if the person under
22 the age of 21 purchases or is given the tobacco product,
23 electronic cigarette, or alternative nicotine product in any
24 of its forms from a retail seller of tobacco products,
25 electronic cigarettes, or alternative nicotine products or an
26 employee of the retail seller pursuant to a plan or action to
HB2755 Enrolled - 178 - LRB104 08253 BDA 18303 b
1 investigate, patrol, or otherwise conduct a "sting operation"
2 or enforcement action against a retail seller of tobacco
3 products, electronic cigarettes, or alternative nicotine
4 products or a person employed by the retail seller of tobacco
5 products, electronic cigarettes, or alternative nicotine
6 products or on any premises authorized to sell tobacco
7 products, electronic cigarettes, or alternative nicotine
8 products to determine if tobacco products, electronic
9 cigarettes, or alternative nicotine products are being sold or
10 given to persons under 21 years of age if the "sting operation"
11 or enforcement action is approved by, conducted by, or
12 conducted on behalf of the Illinois State Police, the county
13 sheriff, a municipal police department, the Department of
14 Revenue, the Department of Public Health, or a local health
15 department. The results of any sting operation or enforcement
16 action, including the name of the clerk, shall be provided to
17 the retail seller within 7 business days.
18 (f) No person shall honor or accept any discount, coupon,
19 or other benefit or reduction in price that is inconsistent
20 with 21 CFR 1140, subsequent United States Food and Drug
21 Administration industry guidance, or any rules adopted under
22 21 CFR 1140.
23 (g) Any peace officer or duly authorized member of the
24 Illinois State Police, a county sheriff's department, a
25 municipal police department, the Department of Revenue, the
26 Department of Public Health, a local health department, or the
HB2755 Enrolled - 179 - LRB104 08253 BDA 18303 b
1 Department of Human Services, upon discovering a violation of
2 subsection (a), (a-5), (a-5.1), (a-8), (b), or (d) of this
3 Section or a violation of the Preventing Youth Vaping Act, may
4 seize any tobacco products, alternative nicotine products, or
5 electronic cigarettes of the specific type involved in that
6 violation that are located at that place of business. The
7 tobacco products, alternative nicotine products, or electronic
8 cigarettes so seized are subject to confiscation and
9 forfeiture.
10 (h) If, within 60 days after any seizure under subsection
11 (g), a person having any property interest in the seized
12 property is charged with an offense under this Section or a
13 violation of the Preventing Youth Vaping Act, the court that
14 renders judgment upon the charge shall, within 30 days after
15 the judgment, conduct a forfeiture hearing to determine
16 whether the seized tobacco products or electronic cigarettes
17 were part of the inventory located at the place of business
18 when a violation of subsection (a), (a-5), (a-5.1), (a-8),
19 (b), or (d) of this Section or a violation of the Preventing
20 Youth Vaping Act occurred and whether any seized tobacco
21 products or electronic cigarettes were of a type involved in
22 that violation. The hearing shall be commenced by a written
23 petition by the State, which shall include material
24 allegations of fact, the name and address of every person
25 determined by the State to have any property interest in the
26 seized property, a representation that written notice of the
HB2755 Enrolled - 180 - LRB104 08253 BDA 18303 b
1 date, time, and place of the hearing has been mailed to every
2 such person by certified mail at least 10 days before the date,
3 and a request for forfeiture. Every such person may appear as a
4 party and present evidence at the hearing. The quantum of
5 proof required shall be a preponderance of the evidence, and
6 the burden of proof shall be on the State. If the court
7 determines that the seized property was subject to forfeiture,
8 an order of forfeiture and disposition of the seized property
9 shall be entered and the property shall be received by the
10 prosecuting office, who shall effect its destruction.
11 (i) If a seizure under subsection (g) is not followed by a
12 charge under subsection (a), (a-5), (a-5.1), (a-8), (b), or
13 (d) of this Section or under the Preventing Youth Vaping Act,
14 or if the prosecution of the charge is permanently terminated
15 or indefinitely discontinued without any judgment of
16 conviction or acquittal:
17 (1) the prosecuting office may commence in the circuit
18 court an in rem proceeding for the forfeiture and
19 destruction of any seized tobacco products or electronic
20 cigarettes; and
21 (2) any person having any property interest in the
22 seized tobacco products or electronic cigarettes may
23 commence separate civil proceedings in the manner provided
24 by law.
25 (j) After the Department of Revenue has seized any tobacco
26 product, nicotine product, or electronic cigarette as provided
HB2755 Enrolled - 181 - LRB104 08253 BDA 18303 b
1 in subsection (g) and a person having any property interest in
2 the seized property has not been charged with an offense under
3 this Section or a violation of the Preventing Youth Vaping
4 Act, the Department of Revenue must hold a hearing and
5 determine whether the seized tobacco products, alternative
6 nicotine products, or electronic cigarettes were part of the
7 inventory located at the place of business when a violation of
8 subsection (a), (a-5), (a-5.1), (a-8), (b), or (d) of this
9 Section or a violation of the Preventing Youth Vaping Act
10 occurred and whether any seized tobacco product, alternative
11 nicotine product, or electronic cigarette was of a type
12 involved in that violation. The Department of Revenue shall
13 give not less than 20 days' notice of the time and place of the
14 hearing to the owner of the property, if the owner is known,
15 and also to the person in whose possession the property was
16 found if that person is known and if the person in possession
17 is not the owner of the property. If neither the owner nor the
18 person in possession of the property is known, the Department
19 of Revenue must cause publication of the time and place of the
20 hearing to be made at least once each week for 3 weeks
21 successively in a newspaper of general circulation in the
22 county where the hearing is to be held.
23 If, as the result of the hearing, the Department of
24 Revenue determines that the tobacco products, alternative
25 nicotine products, or the electronic cigarettes were part of
26 the inventory located at the place of business when a
HB2755 Enrolled - 182 - LRB104 08253 BDA 18303 b
1 violation of subsection (a), (a-5), (a-5.1), (a-8), (b), or
2 (d) of this Section or a violation of the Preventing Youth
3 Vaping Act at the time of seizure, the Department of Revenue
4 must enter an order declaring the tobacco product, alternative
5 nicotine product, or electronic cigarette confiscated and
6 forfeited to the State, to be held by the Department of Revenue
7 for disposal by it as provided in Section 10-58 of the Tobacco
8 Products Tax Act of 1995. The Department of Revenue must give
9 notice of the order to the owner of the property, if the owner
10 is known, and also to the person in whose possession the
11 property was found if that person is known and if the person in
12 possession is not the owner of the property. If neither the
13 owner nor the person in possession of the property is known,
14 the Department of Revenue must cause publication of the order
15 to be made at least once each week for 3 weeks successively in
16 a newspaper of general circulation in the county where the
17 hearing was held.
18 (Source: P.A. 102-538, eff. 8-20-21; 102-575, eff. 1-1-22;
19 102-813, eff. 5-13-22; 103-937, eff. 1-1-25.)
20 Section 10-20. The Prevention of Cigarette and Electronic
21 Cigarette Sales to Persons under 21 Years of Age Act is amended
22 by changing Section 2 as follows:
23 (720 ILCS 678/2)
24 Sec. 2. Definitions. For the purpose of this Act:
HB2755 Enrolled - 183 - LRB104 08253 BDA 18303 b
1 "Cigarette", when used in this Act, means any roll for
2 smoking made wholly or in part of tobacco irrespective of size
3 or shape and whether or not the tobacco is flavored,
4 adulterated, or mixed with any other ingredient, and the
5 wrapper or cover of which is made of paper or any other
6 substance or material except whole leaf tobacco.
7 "Clear and conspicuous statement" means the statement is
8 of sufficient type size to be clearly readable by the
9 recipient of the communication.
10 "Consumer" means an individual who acquires or seeks to
11 acquire cigarettes or electronic cigarettes for personal use.
12 "Delivery sale" means any sale of cigarettes or electronic
13 cigarettes to a consumer if:
14 (a) the consumer submits the order for such sale by
15 means of a telephone or other method of voice
16 transmission, the mails, or the Internet or other online
17 service, or the seller is otherwise not in the physical
18 presence of the buyer when the request for purchase or
19 order is made; or
20 (b) the cigarettes or electronic cigarettes are
21 delivered by use of a common carrier, private delivery
22 service, or the mails, or the seller is not in the physical
23 presence of the buyer when the buyer obtains possession of
24 the cigarettes or electronic cigarettes.
25 "Delivery service" means any person (other than a person
26 that makes a delivery sale) who delivers to the consumer the
HB2755 Enrolled - 184 - LRB104 08253 BDA 18303 b
1 cigarettes or electronic cigarettes sold in a delivery sale.
2 "Department" means the Department of Revenue.
3 "Electronic cigarette" means:
4 (1) any device that employs a battery or other
5 mechanism to heat a solution or substance to produce a
6 vapor or aerosol intended for inhalation;
7 (2) any cartridge or container of a solution or
8 substance intended to be used with or in the device or to
9 refill the device; or
10 (3) any solution or substance, whether or not it
11 contains nicotine, intended for use in the device.
12 "Electronic cigarette" includes, but is not limited to,
13 any electronic nicotine delivery system, electronic cigar,
14 electronic cigarillo, electronic pipe, electronic hookah, vape
15 pen, or similar product or device, and any component, part, or
16 accessory of a device used during the operation of the device,
17 even if the part or accessory was sold separately. "Electronic
18 cigarette" does not include: cigarettes, as defined in Section
19 1 of the Cigarette Tax Act; any product approved by the United
20 States Food and Drug Administration for sale as a tobacco
21 cessation product, a tobacco dependence product, or for other
22 medical purposes that is marketed and sold solely for that
23 approved purpose; any asthma inhaler prescribed by a physician
24 for that condition that is marketed and sold solely for that
25 approved purpose; any device that meets the definition of
26 cannabis paraphernalia under Section 1-10 of the Cannabis
HB2755 Enrolled - 185 - LRB104 08253 BDA 18303 b
1 Regulation and Tax Act; or any cannabis product sold by a
2 dispensing organization pursuant to the Cannabis Regulation
3 and Tax Act or the Compassionate Use of Medical Cannabis
4 Program Act.
5 "Government-issued identification" means a State driver's
6 license, State identification card, passport, a military
7 identification or an official naturalization or immigration
8 document, such as a permanent resident card (commonly known as
9 a "green card") or an immigrant visa.
10 "Mails" or "mailing" mean the shipment of cigarettes or
11 electronic cigarettes through the United States Postal
12 Service.
13 "Nicotine" means any form of the chemical nicotine,
14 including any salt or complex, regardless of whether the
15 chemical is naturally or synthetically derived, and includes
16 nicotinic alkaloids and nicotine analogs.
17 "Out-of-state sale" means a sale of cigarettes or
18 electronic cigarettes to a consumer located outside of this
19 State where the consumer submits the order for such sale by
20 means of a telephonic or other method of voice transmission,
21 the mails or any other delivery service, facsimile
22 transmission, or the Internet or other online service and
23 where the cigarettes or electronic cigarettes are delivered by
24 use of the mails or other delivery service.
25 "Person" means any individual, corporation, partnership,
26 limited liability company, association, or other organization
HB2755 Enrolled - 186 - LRB104 08253 BDA 18303 b
1 that engages in any for-profit or not-for-profit activities.
2 "Shipping package" means a container in which packs or
3 cartons of cigarettes or electronic cigarettes are shipped in
4 connection with a delivery sale.
5 "Shipping documents" means bills of lading, air bills, or
6 any other documents used to evidence the undertaking by a
7 delivery service to deliver letters, packages, or other
8 containers.
9 (Source: P.A. 102-575, eff. 1-1-22; 102-1030, eff. 5-27-22.)
10 Section 10-25. The Preventing Youth Vaping Act is amended
11 by changing Section 5 as follows:
12 (410 ILCS 86/5)
13 Sec. 5. Definitions. In this Act:
14 "Additive" means any substance the intended use of which
15 results or may reasonably be expected to result, directly or
16 indirectly, in it becoming a component or otherwise affecting
17 the characteristic of any tobacco product, including, but not
18 limited to, any substances intended for use as a flavoring or
19 coloring or in producing, manufacturing, packing, processing,
20 preparing, treating, packaging, transporting, or holding.
21 "Additive" does not include tobacco or a pesticide chemical
22 residue in or on raw tobacco or a pesticide chemical.
23 "Consumer" means an individual who acquires or seeks to
24 acquire electronic cigarettes for personal use.
HB2755 Enrolled - 187 - LRB104 08253 BDA 18303 b
1 "Distributor" means a person who sells, offers for sale,
2 or transfers any tobacco, electronic cigarette, or tobacco
3 product for resale and not for use or consumption.
4 "Distributor" includes a distributor as defined in Section 1
5 of the Cigarette Tax Act, Section 1 of the Cigarette Use Tax
6 Act, and Section 10-5 of the Tobacco Products Tax Act of 1995.
7 "Electronic cigarette" means:
8 (1) any device that employs a battery or other
9 mechanism to heat a solution or substance to produce a
10 vapor or aerosol intended for inhalation;
11 (2) any cartridge or container of a solution or
12 substance intended to be used with or in the device or to
13 refill the device; or
14 (3) any solution or substance, whether or not it
15 contains nicotine, intended for use in the device.
16 "Electronic cigarette" includes, but is not limited to,
17 any electronic nicotine delivery system, electronic cigar,
18 electronic cigarillo, electronic pipe, electronic hookah, vape
19 pen, or similar product or device, and any component, part, or
20 accessory of a device used during the operation of the device
21 even if the part or accessory was sold separately. "Electronic
22 cigarette" does not include: cigarettes, as defined in Section
23 1 of the Cigarette Tax Act; any product approved by the United
24 States Food and Drug Administration for sale as a smoking
25 cessation product, a tobacco dependence product, or for other
26 medical purposes that is marketed and sold solely for that
HB2755 Enrolled - 188 - LRB104 08253 BDA 18303 b
1 approved purpose; any asthma inhaler prescribed by a physician
2 for that condition that is marketed and sold solely for that
3 approved purpose; any device that meets the definition of
4 cannabis paraphernalia under Section 1-10 of the Cannabis
5 Regulation and Tax Act; or any cannabis product sold by a
6 dispensing organization pursuant to the Cannabis Regulation
7 and Tax Act or the Compassionate Use of Medical Cannabis
8 Program Act.
9 "Manufacturer" means any person, wherever resident or
10 located, who manufactures and sells tobacco products.
11 "Manufacturer" does not include a person who makes,
12 manufactures, or fabricates tobacco products as a part of a
13 correctional industries program for sale to persons
14 incarcerated in penal institutions or resident patients of a
15 State-operated mental health facility.
16 "Modified risk tobacco product" means any tobacco product
17 that is sold or distributed to reduce harm or the risk of
18 tobacco related disease associated with commercially marketed
19 tobacco products.
20 "Nicotine" means any form of the chemical nicotine,
21 including any salt or complex, regardless of whether the
22 chemical is naturally or synthetically derived, and includes
23 nicotinic alkaloids and nicotine analogs.
24 "Person" means any individual, corporation, partnership,
25 limited liability company, association, or other organization
26 that engages in any for-profit or not-for-profit activities.
HB2755 Enrolled - 189 - LRB104 08253 BDA 18303 b
1 "Retailer" means a person who engages in this State in the
2 sale of or offers for sale electronic cigarettes for use or
3 consumption and not for resale in any form. "Retailer"
4 includes a retailer as defined in Section 1 of the Cigarette
5 Tax Act and Section 10-5 of the Tobacco Products Tax Act of
6 1995.
7 "Secondary distributor" has the same meaning as defined in
8 Section 1 of the Cigarette Tax Act and Section 1 of the
9 Cigarette Use Tax Act.
10 "Tobacco product" has the same meaning as defined in
11 Section 10-5 of the Tobacco Products Tax Act of 1995.
12 (Source: P.A. 102-575, eff. 1-1-22.)
13 Section 10-50. The Franchise Tax and License Fee Amnesty
14 Act of 2007 is amended by changing Section 5-10 as follows:
15 (805 ILCS 8/5-10)
16 Sec. 5-10. Amnesty program. The Secretary shall establish
17 an amnesty program for all taxpayers owing any franchise tax
18 or license fee imposed by Article XV of the Business
19 Corporation Act of 1983. The amnesty program shall be for a
20 period from February 1, 2008 through March 15, 2008. The
21 amnesty program shall also be for a period between October 1,
22 2019 and November 15, 2019, and shall apply to franchise tax or
23 license fee liabilities for any tax period ending after March
24 15, 2008 and on or before June 30, 2019. The amnesty program
HB2755 Enrolled - 190 - LRB104 08253 BDA 18303 b
1 shall also be for a period between October 1, 2025 and November
2 15, 2025, and shall apply to franchise tax or license fee
3 liabilities for any tax period ending after June 30, 2019 and
4 on or before June 30, 2025. The amnesty program shall provide
5 that, upon payment by a taxpayer of all franchise taxes and
6 license fees due from that taxpayer to the State of Illinois
7 for any taxable period, the Secretary shall abate and not seek
8 to collect any interest or penalties that may be applicable,
9 and the Secretary shall not seek civil or criminal prosecution
10 for any taxpayer for the period of time for which amnesty has
11 been granted to the taxpayer. Failure to pay all taxes due to
12 the State for a taxable period shall not invalidate any
13 amnesty granted under this Act with respect to the taxes paid
14 pursuant to the amnesty program. Amnesty shall be granted only
15 if all amnesty conditions are satisfied by the taxpayer.
16 Amnesty shall not be granted to taxpayers who are a party to
17 any civil, administrative, or criminal investigation or to any
18 civil, administrative, or criminal litigation that is pending
19 in any circuit court or appellate court or the Supreme Court of
20 this State for nonpayment, delinquency, or fraud in relation
21 to any franchise tax or license fee imposed by Article XV of
22 the Business Corporation Act of 1983. A civil, administrative,
23 or criminal investigation includes, but is not limited to, the
24 Secretary of State's Department of Business Services sending
25 interrogatories to a taxpayer. Voluntary payments made under
26 this Act shall be made by check, guaranteed remittance, or ACH
HB2755 Enrolled - 191 - LRB104 08253 BDA 18303 b
1 debit. The Secretary shall adopt rules as necessary to
2 implement the provisions of this Act. Except as otherwise
3 provided in this Section, all money collected under this Act
4 that would otherwise be deposited into the General Revenue
5 Fund shall be deposited into the General Revenue Fund. Two
6 percent of all money collected under this Act shall be
7 deposited by the State Treasurer into the Department of
8 Business Services Special Operations Fund and, subject to
9 appropriation, shall be used by the Secretary to cover costs
10 associated with the administration of this Act.
11 (Source: P.A. 101-9, eff. 6-5-19; 101-604, eff. 12-13-19;
12 102-1071, eff. 6-10-22.)
13 ARTICLE 15
14 Section 15-5. The Counties Code is amended by changing
15 Section 5-1006.9 as follows:
16 (55 ILCS 5/5-1006.9)
17 Sec. 5-1006.9. County Grocery Occupation Tax Law.
18 (a) The corporate authorities of any county may, by
19 ordinance or resolution that takes effect on or after January
20 1, 2026, impose a tax upon all persons engaged in the business
21 of selling groceries at retail in the county, but outside of
22 any municipality, on the gross receipts from those sales made
23 in the course of that business. If imposed, the tax shall be at
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1 the rate of 1% of the gross receipts from these sales.
2 The tax imposed by a county under this subsection and all
3 civil penalties that may be assessed as an incident of the tax
4 shall be collected and enforced by the Department. The
5 certificate of registration that is issued by the Department
6 to a retailer under the Retailers' Occupation Tax Act shall
7 permit the retailer to engage in a business that is taxable
8 under any ordinance or resolution enacted under this
9 subsection without registering separately with the Department
10 under that ordinance or resolution or under this subsection.
11 The Department shall have full power to administer and
12 enforce this subsection; to collect all taxes and penalties
13 due under this subsection; to dispose of taxes and penalties
14 so collected in the manner provided in this Section and under
15 rules adopted by the Department; and to determine all rights
16 to credit memoranda arising on account of the erroneous
17 payment of tax or penalty under this subsection.
18 In the administration of, and compliance with, this
19 subsection, the Department and persons who are subject to this
20 subsection shall have the same rights, remedies, privileges,
21 immunities, powers, and duties, and be subject to the same
22 conditions, restrictions, limitations, penalties and
23 definitions of terms, and employ the same modes of procedure,
24 as are prescribed in Sections 1, 2 through 2-65 (in respect to
25 all provisions therein other than the State rate of tax and
26 other than the exemption for food for human consumption that
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1 is to be consumed off the premises where it is sold (other than
2 alcoholic beverages, food consisting of or infused with adult
3 use cannabis, soft drinks, candy, and food that has been
4 prepared for immediate consumption), which is authorized to be
5 taxed as provided in this subsection), 2c, 3 (except as to the
6 disposition of taxes and penalties collected), 4, 5, 5a, 5b,
7 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11,
8 11a, 12 and 13 of the Retailers' Occupation Tax Act and all of
9 the Uniform Penalty and Interest Act, as fully as if those
10 provisions were set forth in this Section.
11 Persons subject to any tax imposed under the authority
12 granted in this subsection may reimburse themselves for their
13 seller's tax liability hereunder by separately stating that
14 tax as an additional charge, which charge may be stated in
15 combination, in a single amount, with State tax that sellers
16 are required to collect under the Use Tax Act, pursuant to such
17 bracket schedules as the Department may prescribe.
18 (b) If a tax has been imposed under subsection (a), then a
19 service occupation tax must also be imposed at the same rate
20 upon all persons engaged, in the county but outside of a
21 municipality, in the business of making sales of service, who,
22 as an incident to making those sales of service, transfer
23 groceries, as defined in this Section, as an incident to a sale
24 of service.
25 The tax imposed under this subsection and all civil
26 penalties that may be assessed as an incident thereof shall be
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1 collected and enforced by the Department. The certificate of
2 registration that is issued by the Department to a retailer
3 under the Retailers' Occupation Tax Act or the Service
4 Occupation Tax Act shall permit the registrant to engage in a
5 business that is taxable under any ordinance or resolution
6 enacted pursuant to this subsection without registering
7 separately with the Department under the ordinance or
8 resolution or under this subsection.
9 The Department shall have full power to administer and
10 enforce this subsection, to collect all taxes and penalties
11 due under this subsection, to dispose of taxes and penalties
12 so collected in the manner provided in this Section and under
13 rules adopted by the Department, and to determine all rights
14 to credit memoranda arising on account of the erroneous
15 payment of a tax or penalty under this subsection.
16 In the administration of and compliance with this
17 subsection, the Department and persons who are subject to this
18 subsection shall have the same rights, remedies, privileges,
19 immunities, powers and duties, and be subject to the same
20 conditions, restrictions, limitations, penalties and
21 definitions of terms, and employ the same modes of procedure
22 as are set forth in Sections 2, 2c, 3 through 3-50 (in respect
23 to all provisions contained in those Sections other than: (i)
24 the State rate of tax; (ii) the exemption for food for human
25 consumption that is to be consumed off the premises where it is
26 sold (other than alcoholic beverages, food consisting of or
HB2755 Enrolled - 195 - LRB104 08253 BDA 18303 b
1 infused with adult use cannabis, soft drinks, candy, and food
2 that has been prepared for immediate consumption), which is
3 authorized to be taxed as provided in this subsection; and
4 (iii) the exemption for food prepared for immediate
5 consumption and transferred incident to a sale of service
6 subject to the Service Occupation Tax Act or the Service Use
7 Tax Act by an entity licensed under the Hospital Licensing
8 Act, the Nursing Home Care Act, the Assisted Living and Shared
9 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
10 Specialized Mental Health Rehabilitation Act of 2013, or the
11 Child Care Act of 1969, or an entity that holds a permit issued
12 pursuant to the Life Care Facilities Act, which is authorized
13 to be taxed as provided in this subsection), 4, 5, 7, 8, 9
14 (except as to the disposition of taxes and penalties
15 collected), 10, 11, 12, 13, 15, 16, 17, 18, 19, and 20 of the
16 Service Occupation Tax Act and all provisions of the Uniform
17 Penalty and Interest Act, as fully as if those provisions were
18 set forth in this Section.
19 Persons subject to any tax imposed under the authority
20 granted in this subsection may reimburse themselves for their
21 serviceman's tax liability by separately stating the tax as an
22 additional charge, which may be stated in combination, in a
23 single amount, with State tax that servicemen are authorized
24 to collect under the Service Use Tax Act, pursuant to any
25 bracketed schedules set forth by the Department.
26 (c) The Department shall immediately pay over to the State
HB2755 Enrolled - 196 - LRB104 08253 BDA 18303 b
1 Treasurer, ex officio, as trustee, all taxes and penalties
2 collected under this Section. Those taxes and penalties shall
3 be deposited into the County Grocery Tax Trust Fund, a trust
4 fund created in the State treasury. Except as otherwise
5 provided in this Section, moneys in the County Grocery Tax
6 Trust Fund shall be used to make payments to counties and for
7 the payment of refunds under this Section.
8 Moneys deposited into the County Grocery Tax Trust Fund
9 under this Section are not subject to appropriation and shall
10 be used as provided in this Section. All deposits into the
11 County Grocery Tax Trust Fund shall be held in the County
12 Grocery Tax Trust Fund by the State Treasurer, ex officio, as
13 trustee separate and apart from all public moneys or funds of
14 this State.
15 Whenever the Department determines that a refund should be
16 made under this Section to a claimant instead of issuing a
17 credit memorandum, the Department shall notify the State
18 Comptroller, who shall cause the order to be drawn for the
19 amount specified and to the person named in the notification
20 from the Department. The refund shall be paid by the State
21 Treasurer out of the County Grocery Tax Trust Fund.
22 (d) As soon as possible after the first day of each month,
23 upon certification of the Department, the Comptroller shall
24 order transferred, and the Treasurer shall transfer, to the
25 STAR Bonds Revenue Fund the local sales tax increment, if any,
26 as defined in the Innovation Development and Economy Act,
HB2755 Enrolled - 197 - LRB104 08253 BDA 18303 b
1 collected under this Section.
2 After the monthly transfer to the STAR Bonds Revenue Fund,
3 if any, on or before the 25th day of each calendar month, the
4 Department shall prepare and certify to the Comptroller the
5 disbursement of stated sums of money to named counties, the
6 counties to be those from which retailers have paid taxes or
7 penalties under this Section to the Department during the
8 second preceding calendar month. The amount to be paid to each
9 county shall be the amount (not including credit memoranda)
10 collected under this Section during the second preceding
11 calendar month by the Department plus an amount the Department
12 determines is necessary to offset any amounts that were
13 erroneously paid to a different taxing body, and not including
14 an amount equal to the amount of refunds made during the second
15 preceding calendar month by the Department on behalf of such
16 county, and not including any amount that the Department
17 determines is necessary to offset any amounts that were
18 payable to a different taxing body but were erroneously paid
19 to the county, and not including any amounts that are
20 transferred to the STAR Bonds Revenue Fund. Within 10 days
21 after receipt by the Comptroller of the disbursement
22 certification to the counties provided for in this Section to
23 be given to the Comptroller by the Department, the Comptroller
24 shall cause the orders to be drawn for the amounts in
25 accordance with the directions contained in the certification.
26 (e) Nothing in this Section shall be construed to
HB2755 Enrolled - 198 - LRB104 08253 BDA 18303 b
1 authorize a county to impose a tax upon the privilege of
2 engaging in any business which under the Constitution of the
3 United States may not be made the subject of taxation by this
4 State.
5 (f) Except as otherwise provided in this subsection, an
6 ordinance or resolution imposing or discontinuing the tax
7 hereunder or effecting a change in the rate thereof shall
8 either (i) be adopted and a certified copy thereof filed with
9 the Department on or before the first day of April, whereupon
10 the Department shall proceed to administer and enforce this
11 Section as of the first day of July next following the adoption
12 and filing, or (ii) be adopted and a certified copy thereof
13 filed with the Department on or before the first day of
14 October, whereupon the Department shall proceed to administer
15 and enforce this Section as of the first day of January next
16 following the adoption and filing.
17 (g) When certifying the amount of a monthly disbursement
18 to a county under this Section, the Department shall increase
19 or decrease the amount by an amount necessary to offset any
20 misallocation of previous disbursements. The offset amount
21 shall be the amount erroneously disbursed within the previous
22 6 months from the time a misallocation is discovered.
23 (h) As used in this Section, "Department" means the
24 Department of Revenue.
25 For purposes of the tax authorized to be imposed under
26 subsection (a), "groceries" has the same meaning as "food for
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1 human consumption that is to be consumed off the premises
2 where it is sold (other than alcoholic beverages, food
3 consisting of or infused with adult use cannabis, soft drinks,
4 candy, and food that has been prepared for immediate
5 consumption)", as further defined in Section 2-10 of the
6 Retailers' Occupation Tax Act.
7 For purposes of the tax authorized to be imposed under
8 subsection (b), "groceries" has the same meaning as "food for
9 human consumption that is to be consumed off the premises
10 where it is sold (other than alcoholic beverages, food
11 consisting of or infused with adult use cannabis, soft drinks,
12 candy, and food that has been prepared for immediate
13 consumption)", as further defined in Section 3-10 of the
14 Service Occupation Tax Act.
15 For purposes of the tax authorized to be imposed under
16 subsection (b), "groceries" also means food prepared for
17 immediate consumption and transferred incident to a sale of
18 service subject to the Service Occupation Tax Act or the
19 Service Use Tax Act by an entity licensed under the Hospital
20 Licensing Act, the Nursing Home Care Act, the Assisted Living
21 and Shared Housing Act, the ID/DD Community Care Act, the
22 MC/DD Act, the Specialized Mental Health Rehabilitation Act of
23 2013, or the Child Care Act of 1969, or an entity that holds a
24 permit issued pursuant to the Life Care Facilities Act.
25 (i) This Section may be referred to as the County Grocery
26 Occupation Tax Law.
HB2755 Enrolled - 200 - LRB104 08253 BDA 18303 b
1 (Source: P.A. 103-781, eff. 8-5-24.)
2 Section 15-10. The Illinois Municipal Code is amended by
3 changing Section 8-11-24 as follows:
4 (65 ILCS 5/8-11-24)
5 Sec. 8-11-24. Municipal Grocery Occupation Tax Law.
6 (a) The corporate authorities of any municipality may, by
7 ordinance or resolution that takes effect on or after January
8 1, 2026, impose a tax upon all persons engaged in the business
9 of selling groceries at retail in the municipality on the
10 gross receipts from those sales made in the course of that
11 business. If imposed, the tax shall be at the rate of 1% of the
12 gross receipts from these sales.
13 The tax imposed by a municipality under this subsection
14 and all civil penalties that may be assessed as an incident of
15 the tax shall be collected and enforced by the Department. The
16 certificate of registration that is issued by the Department
17 to a retailer under the Retailers' Occupation Tax Act shall
18 permit the retailer to engage in a business that is taxable
19 under any ordinance or resolution enacted under this
20 subsection without registering separately with the Department
21 under that ordinance or resolution or under this subsection.
22 The Department shall have full power to administer and
23 enforce this subsection; to collect all taxes and penalties
24 due under this subsection; to dispose of taxes and penalties
HB2755 Enrolled - 201 - LRB104 08253 BDA 18303 b
1 so collected in the manner provided in this Section and under
2 rules adopted by the Department; and to determine all rights
3 to credit memoranda arising on account of the erroneous
4 payment of tax or penalty under this subsection.
5 In the administration of, and compliance with, this
6 subsection, the Department and persons who are subject to this
7 subsection shall have the same rights, remedies, privileges,
8 immunities, powers, and duties, and be subject to the same
9 conditions, restrictions, limitations, penalties and
10 definitions of terms, and employ the same modes of procedure,
11 as are prescribed in Sections 1, 2 through 2-65 (in respect to
12 all provisions therein other than the State rate of tax and
13 other than the exemption for food for human consumption that
14 is to be consumed off the premises where it is sold (other than
15 alcoholic beverages, food consisting of or infused with adult
16 use cannabis, soft drinks, candy, and food that has been
17 prepared for immediate consumption), which is authorized to be
18 taxed as provided in this subsection), 2c, 3 (except as to the
19 disposition of taxes and penalties collected), 4, 5, 5a, 5b,
20 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11,
21 11a, 12 and 13 of the Retailers' Occupation Tax Act and all of
22 the Uniform Penalty and Interest Act, as fully as if those
23 provisions were set forth in this Section.
24 Persons subject to any tax imposed under the authority
25 granted in this subsection may reimburse themselves for their
26 seller's tax liability hereunder by separately stating that
HB2755 Enrolled - 202 - LRB104 08253 BDA 18303 b
1 tax as an additional charge, which charge may be stated in
2 combination, in a single amount, with State tax which sellers
3 are required to collect under the Use Tax Act, pursuant to such
4 bracket schedules as the Department may prescribe.
5 (b) If a tax has been imposed under subsection (a), then a
6 service occupation tax must also be imposed at the same rate
7 upon all persons engaged, in the municipality, in the business
8 of making sales of service, who, as an incident to making those
9 sales of service, transfer groceries, as defined in this
10 Section, as an incident to a sale of service.
11 The tax imposed under this subsection and all civil
12 penalties that may be assessed as an incident thereof shall be
13 collected and enforced by the Department. The certificate of
14 registration that is issued by the Department to a retailer
15 under the Retailers' Occupation Tax Act or the Service
16 Occupation Tax Act shall permit the registrant to engage in a
17 business that is taxable under any ordinance or resolution
18 enacted pursuant to this subsection without registering
19 separately with the Department under the ordinance or
20 resolution or under this subsection.
21 The Department shall have full power to administer and
22 enforce this subsection, to collect all taxes and penalties
23 due under this subsection, to dispose of taxes and penalties
24 so collected in the manner provided in this Section and under
25 rules adopted by the Department, and to determine all rights
26 to credit memoranda arising on account of the erroneous
HB2755 Enrolled - 203 - LRB104 08253 BDA 18303 b
1 payment of a tax or penalty under this subsection.
2 In the administration of and compliance with this
3 subsection, the Department and persons who are subject to this
4 subsection shall have the same rights, remedies, privileges,
5 immunities, powers and duties, and be subject to the same
6 conditions, restrictions, limitations, penalties and
7 definitions of terms, and employ the same modes of procedure
8 as are set forth in Sections 2, 2c, 3 through 3-50 (in respect
9 to all provisions contained in those Sections other than (i)
10 the State rate of tax; (ii) the exemption for food for human
11 consumption that is to be consumed off the premises where it is
12 sold (other than alcoholic beverages, food consisting of or
13 infused with adult use cannabis, soft drinks, candy, and food
14 that has been prepared for immediate consumption), which is
15 authorized to be taxed as provided in this subsection; and
16 (iii) the exemption for food prepared for immediate
17 consumption and transferred incident to a sale of service
18 subject to the Service Occupation Tax Act or the Service Use
19 Tax Act by an entity licensed under the Hospital Licensing
20 Act, the Nursing Home Care Act, the Assisted Living and Shared
21 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
22 Specialized Mental Health Rehabilitation Act of 2013, or the
23 Child Care Act of 1969, or an entity that holds a permit issued
24 pursuant to the Life Care Facilities Act, which is authorized
25 to be taxed as provided in this subsection), 4, 5, 7, 8, 9
26 (except as to the disposition of taxes and penalties
HB2755 Enrolled - 204 - LRB104 08253 BDA 18303 b
1 collected), 10, 11, 12, 13, 15, 16, 17, 18, 19, and 20 of the
2 Service Occupation Tax Act and all provisions of the Uniform
3 Penalty and Interest Act, as fully as if those provisions were
4 set forth in this Section.
5 Persons subject to any tax imposed under the authority
6 granted in this subsection may reimburse themselves for their
7 serviceman's tax liability by separately stating the tax as an
8 additional charge, which may be stated in combination, in a
9 single amount, with State tax that servicemen are authorized
10 to collect under the Service Use Tax Act, pursuant to any
11 bracketed schedules set forth by the Department.
12 (c) The Department shall immediately pay over to the State
13 Treasurer, ex officio, as trustee, all taxes and penalties
14 collected under this Section. Those taxes and penalties shall
15 be deposited into the Municipal Grocery Tax Trust Fund, a
16 trust fund created in the State treasury. Except as otherwise
17 provided in this Section, moneys in the Municipal Grocery Tax
18 Trust Fund shall be used to make payments to municipalities
19 and for the payment of refunds under this Section.
20 Moneys deposited into the Municipal Grocery Tax Trust Fund
21 under this Section are not subject to appropriation and shall
22 be used as provided in this Section. All deposits into the
23 Municipal Grocery Tax Trust Fund shall be held in the
24 Municipal Grocery Tax Trust Fund by the State Treasurer, ex
25 officio, as trustee separate and apart from all public moneys
26 or funds of this State.
HB2755 Enrolled - 205 - LRB104 08253 BDA 18303 b
1 Whenever the Department determines that a refund should be
2 made under this Section to a claimant instead of issuing a
3 credit memorandum, the Department shall notify the State
4 Comptroller, who shall cause the order to be drawn for the
5 amount specified and to the person named in the notification
6 from the Department. The refund shall be paid by the State
7 Treasurer out of the Municipal Grocery Tax Trust Fund.
8 (d) As soon as possible after the first day of each month,
9 upon certification of the Department, the Comptroller shall
10 order transferred, and the Treasurer shall transfer, to the
11 STAR Bonds Revenue Fund the local sales tax increment, if any,
12 as defined in the Innovation Development and Economy Act,
13 collected under this Section.
14 After the monthly transfer to the STAR Bonds Revenue Fund,
15 if any, on or before the 25th day of each calendar month, the
16 Department shall prepare and certify to the Comptroller the
17 disbursement of stated sums of money to named municipalities,
18 the municipalities to be those from which retailers have paid
19 taxes or penalties under this Section to the Department during
20 the second preceding calendar month. The amount to be paid to
21 each municipality shall be the amount (not including credit
22 memoranda) collected under this Section during the second
23 preceding calendar month by the Department plus an amount the
24 Department determines is necessary to offset any amounts that
25 were erroneously paid to a different taxing body, and not
26 including an amount equal to the amount of refunds made during
HB2755 Enrolled - 206 - LRB104 08253 BDA 18303 b
1 the second preceding calendar month by the Department on
2 behalf of such municipality, and not including any amount that
3 the Department determines is necessary to offset any amounts
4 that were payable to a different taxing body but were
5 erroneously paid to the municipality, and not including any
6 amounts that are transferred to the STAR Bonds Revenue Fund.
7 Within 10 days after receipt by the Comptroller of the
8 disbursement certification to the municipalities provided for
9 in this Section to be given to the Comptroller by the
10 Department, the Comptroller shall cause the orders to be drawn
11 for the amounts in accordance with the directions contained in
12 the certification.
13 (e) Nothing in this Section shall be construed to
14 authorize a municipality to impose a tax upon the privilege of
15 engaging in any business which under the Constitution of the
16 United States may not be made the subject of taxation by this
17 State.
18 (f) Except as otherwise provided in this subsection, an
19 ordinance or resolution imposing or discontinuing the tax
20 hereunder or effecting a change in the rate thereof shall
21 either (i) be adopted and a certified copy thereof filed with
22 the Department on or before the first day of April, whereupon
23 the Department shall proceed to administer and enforce this
24 Section as of the first day of July next following the adoption
25 and filing or (ii) be adopted and a certified copy thereof
26 filed with the Department on or before the first day of
HB2755 Enrolled - 207 - LRB104 08253 BDA 18303 b
1 October, whereupon the Department shall proceed to administer
2 and enforce this Section as of the first day of January next
3 following the adoption and filing.
4 (g) When certifying the amount of a monthly disbursement
5 to a municipality under this Section, the Department shall
6 increase or decrease the amount by an amount necessary to
7 offset any misallocation of previous disbursements. The offset
8 amount shall be the amount erroneously disbursed within the
9 previous 6 months from the time a misallocation is discovered.
10 (h) As used in this Section, "Department" means the
11 Department of Revenue.
12 For purposes of the tax authorized to be imposed under
13 subsection (a), "groceries" has the same meaning as "food for
14 human consumption that is to be consumed off the premises
15 where it is sold (other than alcoholic beverages, food
16 consisting of or infused with adult use cannabis, soft drinks,
17 candy, and food that has been prepared for immediate
18 consumption)", as further defined in Section 2-10 of the
19 Retailers' Occupation Tax Act.
20 For purposes of the tax authorized to be imposed under
21 subsection (b), "groceries" has the same meaning as "food for
22 human consumption that is to be consumed off the premises
23 where it is sold (other than alcoholic beverages, food
24 consisting of or infused with adult use cannabis, soft drinks,
25 candy, and food that has been prepared for immediate
26 consumption)", as further defined in Section 3-10 of the
HB2755 Enrolled - 208 - LRB104 08253 BDA 18303 b
1 Service Occupation Tax Act. For purposes of the tax authorized
2 to be imposed under subsection (b), "groceries" also means
3 food prepared for immediate consumption and transferred
4 incident to a sale of service subject to the Service
5 Occupation Tax Act or the Service Use Tax Act by an entity
6 licensed under the Hospital Licensing Act, the Nursing Home
7 Care Act, the Assisted Living and Shared Housing Act, the
8 ID/DD Community Care Act, the MC/DD Act, the Specialized
9 Mental Health Rehabilitation Act of 2013, or the Child Care
10 Act of 1969, or an entity that holds a permit issued pursuant
11 to the Life Care Facilities Act.
12 (i) This Section may be referred to as the Municipal
13 Grocery Occupation Tax Law.
14 (Source: P.A. 103-781, eff. 8-5-24.)
15 Section 15-15. The Local Mass Transit District Act is
16 amended by changing Section 5.01 as follows:
17 (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
18 Sec. 5.01. Metro East Mass Transit District; use and
19 occupation taxes.
20 (a) The Board of Trustees of any Metro East Mass Transit
21 District may, by ordinance adopted with the concurrence of
22 two-thirds of the then trustees, impose throughout the
23 District any or all of the taxes and fees provided in this
24 Section. Except as otherwise provided, all taxes and fees
HB2755 Enrolled - 209 - LRB104 08253 BDA 18303 b
1 imposed under this Section shall be used only for public mass
2 transportation systems, and the amount used to provide mass
3 transit service to unserved areas of the District shall be in
4 the same proportion to the total proceeds as the number of
5 persons residing in the unserved areas is to the total
6 population of the District. Except as otherwise provided in
7 this Act, taxes imposed under this Section and civil penalties
8 imposed incident thereto shall be collected and enforced by
9 the State Department of Revenue. The Department shall have the
10 power to administer and enforce the taxes and to determine all
11 rights for refunds for erroneous payments of the taxes.
12 (b) The Board may impose a Metro East Mass Transit
13 District Retailers' Occupation Tax upon all persons engaged in
14 the business of selling tangible personal property at retail
15 in the district at a rate of 1/4 of 1%, or as authorized under
16 subsection (d-5) of this Section, of the gross receipts from
17 the sales made in the course of such business within the
18 district, including sales of food for human consumption that
19 is to be consumed off the premises where it is sold (other than
20 alcoholic beverages, food consisting of or infused with adult
21 use cannabis, soft drinks, candy, and food that has been
22 prepared for immediate consumption), except that the rate of
23 tax imposed under this Section on sales of aviation fuel on or
24 after December 1, 2019 shall be 0.25% in Madison County unless
25 the Metro-East Mass Transit District in Madison County has an
26 "airport-related purpose" and any additional amount authorized
HB2755 Enrolled - 210 - LRB104 08253 BDA 18303 b
1 under subsection (d-5) is expended for airport-related
2 purposes. If there is no airport-related purpose to which
3 aviation fuel tax revenue is dedicated, then aviation fuel is
4 excluded from any additional amount authorized under
5 subsection (d-5). The rate in St. Clair County shall be 0.25%
6 unless the Metro-East Mass Transit District in St. Clair
7 County has an "airport-related purpose" and the additional
8 0.50% of the 0.75% tax on aviation fuel imposed in that County
9 is expended for airport-related purposes. If there is no
10 airport-related purpose to which aviation fuel tax revenue is
11 dedicated, then aviation fuel is excluded from the additional
12 0.50% of the 0.75% tax.
13 The Board must comply with the certification requirements
14 for airport-related purposes under Section 2-22 of the
15 Retailers' Occupation Tax Act. For purposes of this Section,
16 "airport-related purposes" has the meaning ascribed in Section
17 6z-20.2 of the State Finance Act. This exclusion for aviation
18 fuel only applies for so long as the revenue use requirements
19 of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
20 District.
21 The tax imposed under this Section and all civil penalties
22 that may be assessed as an incident thereof shall be collected
23 and enforced by the State Department of Revenue. The
24 Department shall have full power to administer and enforce
25 this Section; to collect all taxes and penalties so collected
26 in the manner hereinafter provided; and to determine all
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1 rights to credit memoranda arising on account of the erroneous
2 payment of tax or penalty hereunder. In the administration of,
3 and compliance with, this Section, the Department and persons
4 who are subject to this Section shall have the same rights,
5 remedies, privileges, immunities, powers and duties, and be
6 subject to the same conditions, restrictions, limitations,
7 penalties, exclusions, exemptions and definitions of terms and
8 employ the same modes of procedure, as are prescribed in
9 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
10 (in respect to all provisions therein other than the State
11 rate of tax and other than the exemption for food for human
12 consumption that is to be consumed off the premises where it is
13 sold (other than alcoholic beverages, food consisting of or
14 infused with adult use cannabis, soft drinks, candy, and food
15 that has been prepared for immediate consumption), which is
16 taxed at the rate as provided in this subsection), 2c, 3
17 (except as to the disposition of taxes and penalties
18 collected, and except that the retailer's discount is not
19 allowed for taxes paid on aviation fuel that are subject to the
20 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
21 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6,
22 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of the
23 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
24 Penalty and Interest Act, as fully as if those provisions were
25 set forth herein.
26 Persons subject to any tax imposed under the Section may
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1 reimburse themselves for their seller's tax liability
2 hereunder by separately stating the tax as an additional
3 charge, which charge may be stated in combination, in a single
4 amount, with State taxes that sellers are required to collect
5 under the Use Tax Act, in accordance with such bracket
6 schedules as the Department may prescribe.
7 Whenever the Department determines that a refund should be
8 made under this Section to a claimant instead of issuing a
9 credit memorandum, the Department shall notify the State
10 Comptroller, who shall cause the warrant to be drawn for the
11 amount specified, and to the person named, in the notification
12 from the Department. The refund shall be paid by the State
13 Treasurer out of the Metro East Mass Transit District tax fund
14 established under paragraph (h) of this Section or the Local
15 Government Aviation Trust Fund, as appropriate.
16 If a tax is imposed under this subsection (b), a tax shall
17 also be imposed under subsections (c) and (d) of this Section.
18 For the purpose of determining whether a tax authorized
19 under this Section is applicable, a retail sale, by a producer
20 of coal or other mineral mined in Illinois, is a sale at retail
21 at the place where the coal or other mineral mined in Illinois
22 is extracted from the earth. This paragraph does not apply to
23 coal or other mineral when it is delivered or shipped by the
24 seller to the purchaser at a point outside Illinois so that the
25 sale is exempt under the Federal Constitution as a sale in
26 interstate or foreign commerce.
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1 No tax shall be imposed or collected under this subsection
2 on the sale of a motor vehicle in this State to a resident of
3 another state if that motor vehicle will not be titled in this
4 State.
5 Nothing in this Section shall be construed to authorize
6 the Metro East Mass Transit District to impose a tax upon the
7 privilege of engaging in any business which under the
8 Constitution of the United States may not be made the subject
9 of taxation by this State.
10 (c) If a tax has been imposed under subsection (b), a Metro
11 East Mass Transit District Service Occupation Tax shall also
12 be imposed upon all persons engaged, in the district, in the
13 business of making sales of service, who, as an incident to
14 making those sales of service, transfer tangible personal
15 property within the District, either in the form of tangible
16 personal property or in the form of real estate as an incident
17 to a sale of service. The tax rate shall be (1) 1/4%, or as
18 authorized under subsection (d-5) of this Section, of the
19 selling price of tangible personal property so transferred
20 within the district, including food for human consumption that
21 is to be consumed off the premises where it is sold (other than
22 alcoholic beverages, food consisting of or infused with adult
23 use cannabis, soft drinks, candy, and food that has been
24 prepared for immediate consumption); and (2) 1/4%, or as
25 authorized under subsection (d-5) of this Section, of the
26 serviceman's cost price of food prepared for immediate
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1 consumption and transferred incident to a sale of service
2 subject to the service occupation tax by an entity that is
3 licensed under the Hospital Licensing Act, the Nursing Home
4 Care Act, the Assisted Living and Shared Housing Act, the
5 Specialized Mental Health Rehabilitation Act of 2013, the
6 ID/DD Community Care Act, or the MC/DD Act, or the Child Care
7 Act of 1969, or an entity that holds a permit issued pursuant
8 to the Life Care Facilities Act. However, except that the rate
9 of tax imposed in these Counties under this Section on sales of
10 aviation fuel on or after December 1, 2019 shall be 0.25% in
11 Madison County unless the Metro-East Mass Transit District in
12 Madison County has an "airport-related purpose" and any
13 additional amount authorized under subsection (d-5) is
14 expended for airport-related purposes. If there is no
15 airport-related purpose to which aviation fuel tax revenue is
16 dedicated, then aviation fuel is excluded from any additional
17 amount authorized under subsection (d-5). The rate in St.
18 Clair County shall be 0.25% unless the Metro-East Mass Transit
19 District in St. Clair County has an "airport-related purpose"
20 and the additional 0.50% of the 0.75% tax on aviation fuel is
21 expended for airport-related purposes. If there is no
22 airport-related purpose to which aviation fuel tax revenue is
23 dedicated, then aviation fuel is excluded from the additional
24 0.50% of the 0.75% tax.
25 The Board must comply with the certification requirements
26 for airport-related purposes under Section 2-22 of the
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1 Retailers' Occupation Tax Act. For purposes of this Section,
2 "airport-related purposes" has the meaning ascribed in Section
3 6z-20.2 of the State Finance Act. This exclusion for aviation
4 fuel only applies for so long as the revenue use requirements
5 of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
6 District.
7 The tax imposed under this paragraph and all civil
8 penalties that may be assessed as an incident thereof shall be
9 collected and enforced by the State Department of Revenue. The
10 Department shall have full power to administer and enforce
11 this paragraph; to collect all taxes and penalties due
12 hereunder; to dispose of taxes and penalties so collected in
13 the manner hereinafter provided; and to determine all rights
14 to credit memoranda arising on account of the erroneous
15 payment of tax or penalty hereunder. In the administration of,
16 and compliance with this paragraph, the Department and persons
17 who are subject to this paragraph shall have the same rights,
18 remedies, privileges, immunities, powers and duties, and be
19 subject to the same conditions, restrictions, limitations,
20 penalties, exclusions, exemptions and definitions of terms and
21 employ the same modes of procedure as are prescribed in
22 Sections 1a-1, 2 (except that the reference to State in the
23 definition of supplier maintaining a place of business in this
24 State shall mean the Authority), 2a, 3 through 3-50 (in
25 respect to all provisions therein other than (i) the State
26 rate of tax; (ii) the exemption for food for human consumption
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1 that is to be consumed off the premises where it is sold (other
2 than alcoholic beverages, food consisting of or infused with
3 adult use cannabis, soft drinks, candy, and food that has been
4 prepared for immediate consumption), which is taxed at the
5 rate as provided in this subsection; and (iii) the exemption
6 for food prepared for immediate consumption and transferred
7 incident to a sale of service subject to the service
8 occupation tax by an entity that is licensed under the
9 Hospital Licensing Act, the Nursing Home Care Act, the
10 Assisted Living and Shared Housing Act, the Specialized Mental
11 Health Rehabilitation Act of 2013, the ID/DD Community Care
12 Act, or the MC/DD Act, or the Child Care Act of 1969, or an
13 entity that holds a permit issued pursuant to the Life Care
14 Facilities Act, which is taxed at the rate as provided in this
15 subsection), 4 (except that the reference to the State shall
16 be to the Authority), 5, 7, 8 (except that the jurisdiction to
17 which the tax shall be a debt to the extent indicated in that
18 Section 8 shall be the District), 9 (except as to the
19 disposition of taxes and penalties collected, and except that
20 the returned merchandise credit for this tax may not be taken
21 against any State tax, and except that the retailer's discount
22 is not allowed for taxes paid on aviation fuel that are subject
23 to the revenue use requirements of 49 U.S.C. 47107(b) and 49
24 U.S.C. 47133), 10, 11, 12 (except the reference therein to
25 Section 2b of the Retailers' Occupation Tax Act), 13 (except
26 that any reference to the State shall mean the District), the
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1 first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
2 Service Occupation Tax Act and Section 3-7 of the Uniform
3 Penalty and Interest Act, as fully as if those provisions were
4 set forth herein.
5 Persons subject to any tax imposed under the authority
6 granted in this paragraph may reimburse themselves for their
7 serviceman's tax liability hereunder by separately stating the
8 tax as an additional charge, which charge may be stated in
9 combination, in a single amount, with State tax that
10 servicemen are authorized to collect under the Service Use Tax
11 Act, in accordance with such bracket schedules as the
12 Department may prescribe.
13 Whenever the Department determines that a refund should be
14 made under this paragraph to a claimant instead of issuing a
15 credit memorandum, the Department shall notify the State
16 Comptroller, who shall cause the warrant to be drawn for the
17 amount specified, and to the person named, in the notification
18 from the Department. The refund shall be paid by the State
19 Treasurer out of the Metro East Mass Transit District tax fund
20 established under paragraph (h) of this Section or the Local
21 Government Aviation Trust Fund, as appropriate.
22 Nothing in this paragraph shall be construed to authorize
23 the District to impose a tax upon the privilege of engaging in
24 any business which under the Constitution of the United States
25 may not be made the subject of taxation by the State.
26 (d) If a tax has been imposed under subsection (b), a Metro
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1 East Mass Transit District Use Tax shall also be imposed upon
2 the privilege of using, in the district, any item of tangible
3 personal property that is purchased outside the district at
4 retail from a retailer, and that is titled or registered with
5 an agency of this State's government, at a rate of 1/4%, or as
6 authorized under subsection (d-5) of this Section, of the
7 selling price of the tangible personal property within the
8 District, as "selling price" is defined in the Use Tax Act. The
9 tax shall be collected from persons whose Illinois address for
10 titling or registration purposes is given as being in the
11 District. The tax shall be collected by the Department of
12 Revenue for the Metro East Mass Transit District. The tax must
13 be paid to the State, or an exemption determination must be
14 obtained from the Department of Revenue, before the title or
15 certificate of registration for the property may be issued.
16 The tax or proof of exemption may be transmitted to the
17 Department by way of the State agency with which, or the State
18 officer with whom, the tangible personal property must be
19 titled or registered if the Department and the State agency or
20 State officer determine that this procedure will expedite the
21 processing of applications for title or registration.
22 The Department shall have full power to administer and
23 enforce this paragraph; to collect all taxes, penalties and
24 interest due hereunder; to dispose of taxes, penalties and
25 interest so collected in the manner hereinafter provided; and
26 to determine all rights to credit memoranda or refunds arising
HB2755 Enrolled - 219 - LRB104 08253 BDA 18303 b
1 on account of the erroneous payment of tax, penalty or
2 interest hereunder. In the administration of, and compliance
3 with, this paragraph, the Department and persons who are
4 subject to this paragraph shall have the same rights,
5 remedies, privileges, immunities, powers and duties, and be
6 subject to the same conditions, restrictions, limitations,
7 penalties, exclusions, exemptions and definitions of terms and
8 employ the same modes of procedure, as are prescribed in
9 Sections 2 (except the definition of "retailer maintaining a
10 place of business in this State"), 3 through 3-80 (except
11 provisions pertaining to the State rate of tax, and except
12 provisions concerning collection or refunding of the tax by
13 retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
14 pertaining to claims by retailers and except the last
15 paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act
16 and Section 3-7 of the Uniform Penalty and Interest Act, that
17 are not inconsistent with this paragraph, as fully as if those
18 provisions were set forth herein.
19 Whenever the Department determines that a refund should be
20 made under this paragraph to a claimant instead of issuing a
21 credit memorandum, the Department shall notify the State
22 Comptroller, who shall cause the order to be drawn for the
23 amount specified, and to the person named, in the notification
24 from the Department. The refund shall be paid by the State
25 Treasurer out of the Metro East Mass Transit District tax fund
26 established under paragraph (h) of this Section.
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1 (d-1) If, on January 1, 2025, a unit of local government
2 has in effect a tax under subsections (b), (c), and (d) or if,
3 after January 1, 2025, a unit of local government imposes a tax
4 under subsections (b), (c), and (d), then that tax applies to
5 leases of tangible personal property in effect, entered into,
6 or renewed on or after that date in the same manner as the tax
7 under this Section and in accordance with the changes made by
8 this amendatory Act of the 103rd General Assembly.
9 (d-5) (A) The county board of any county participating in
10 the Metro East Mass Transit District may authorize, by
11 ordinance, a referendum on the question of whether the tax
12 rates for the Metro East Mass Transit District Retailers'
13 Occupation Tax, the Metro East Mass Transit District Service
14 Occupation Tax, and the Metro East Mass Transit District Use
15 Tax for the District should be increased from 0.25% to 0.75%.
16 Upon adopting the ordinance, the county board shall certify
17 the proposition to the proper election officials who shall
18 submit the proposition to the voters of the District at the
19 next election, in accordance with the general election law.
20 The proposition shall be in substantially the following
21 form:
22 Shall the tax rates for the Metro East Mass Transit
23 District Retailers' Occupation Tax, the Metro East Mass
24 Transit District Service Occupation Tax, and the Metro
25 East Mass Transit District Use Tax be increased from 0.25%
26 to 0.75%?
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1 (B) Two thousand five hundred electors of any Metro East
2 Mass Transit District may petition the Chief Judge of the
3 Circuit Court, or any judge of that Circuit designated by the
4 Chief Judge, in which that District is located to cause to be
5 submitted to a vote of the electors the question whether the
6 tax rates for the Metro East Mass Transit District Retailers'
7 Occupation Tax, the Metro East Mass Transit District Service
8 Occupation Tax, and the Metro East Mass Transit District Use
9 Tax for the District should be increased from 0.25% to 0.75%.
10 Upon submission of such petition the court shall set a
11 date not less than 10 nor more than 30 days thereafter for a
12 hearing on the sufficiency thereof. Notice of the filing of
13 such petition and of such date shall be given in writing to the
14 District and the County Clerk at least 7 days before the date
15 of such hearing.
16 If such petition is found sufficient, the court shall
17 enter an order to submit that proposition at the next
18 election, in accordance with general election law.
19 The form of the petition shall be in substantially the
20 following form: To the Circuit Court of the County of (name of
21 county):
22 We, the undersigned electors of the (name of transit
23 district), respectfully petition your honor to submit to a
24 vote of the electors of (name of transit district) the
25 following proposition:
26 Shall the tax rates for the Metro East Mass Transit
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1 District Retailers' Occupation Tax, the Metro East Mass
2 Transit District Service Occupation Tax, and the Metro
3 East Mass Transit District Use Tax be increased from 0.25%
4 to 0.75%?
5 Name Address, with Street and Number.
6 .................... ......................................
7 .................... ......................................
8 (C) The votes shall be recorded as "YES" or "NO". If a
9 majority of all votes cast on the proposition are for the
10 increase in the tax rates, the Metro East Mass Transit
11 District shall begin imposing the increased rates in the
12 District, and the Department of Revenue shall begin collecting
13 the increased amounts, as provided under this Section. An
14 ordinance imposing or discontinuing a tax hereunder or
15 effecting a change in the rate thereof shall be adopted and a
16 certified copy thereof filed with the Department on or before
17 the first day of October, whereupon the Department shall
18 proceed to administer and enforce this Section as of the first
19 day of January next following the adoption and filing, or on or
20 before the first day of April, whereupon the Department shall
21 proceed to administer and enforce this Section as of the first
22 day of July next following the adoption and filing.
23 (D) If the voters have approved a referendum under this
24 subsection, before November 1, 1994, to increase the tax rate
25 under this subsection, the Metro East Mass Transit District
26 Board of Trustees may adopt by a majority vote an ordinance at
HB2755 Enrolled - 223 - LRB104 08253 BDA 18303 b
1 any time before January 1, 1995 that excludes from the rate
2 increase tangible personal property that is titled or
3 registered with an agency of this State's government. The
4 ordinance excluding titled or registered tangible personal
5 property from the rate increase must be filed with the
6 Department at least 15 days before its effective date. At any
7 time after adopting an ordinance excluding from the rate
8 increase tangible personal property that is titled or
9 registered with an agency of this State's government, the
10 Metro East Mass Transit District Board of Trustees may adopt
11 an ordinance applying the rate increase to that tangible
12 personal property. The ordinance shall be adopted, and a
13 certified copy of that ordinance shall be filed with the
14 Department, on or before October 1, whereupon the Department
15 shall proceed to administer and enforce the rate increase
16 against tangible personal property titled or registered with
17 an agency of this State's government as of the following
18 January 1. After December 31, 1995, any reimposed rate
19 increase in effect under this subsection shall no longer apply
20 to tangible personal property titled or registered with an
21 agency of this State's government. Beginning January 1, 1996,
22 the Board of Trustees of any Metro East Mass Transit District
23 may never reimpose a previously excluded tax rate increase on
24 tangible personal property titled or registered with an agency
25 of this State's government. After July 1, 2004, if the voters
26 have approved a referendum under this subsection to increase
HB2755 Enrolled - 224 - LRB104 08253 BDA 18303 b
1 the tax rate under this subsection, the Metro East Mass
2 Transit District Board of Trustees may adopt by a majority
3 vote an ordinance that excludes from the rate increase
4 tangible personal property that is titled or registered with
5 an agency of this State's government. The ordinance excluding
6 titled or registered tangible personal property from the rate
7 increase shall be adopted, and a certified copy of that
8 ordinance shall be filed with the Department on or before
9 October 1, whereupon the Department shall administer and
10 enforce this exclusion from the rate increase as of the
11 following January 1, or on or before April 1, whereupon the
12 Department shall administer and enforce this exclusion from
13 the rate increase as of the following July 1. The Board of
14 Trustees of any Metro East Mass Transit District may never
15 reimpose a previously excluded tax rate increase on tangible
16 personal property titled or registered with an agency of this
17 State's government.
18 (d-6) If the Board of Trustees of any Metro East Mass
19 Transit District has imposed a rate increase under subsection
20 (d-5) and filed an ordinance with the Department of Revenue
21 excluding titled property from the higher rate, then that
22 Board may, by ordinance adopted with the concurrence of
23 two-thirds of the then trustees, impose throughout the
24 District a fee. The fee on the excluded property shall not
25 exceed $20 per retail transaction or an amount equal to the
26 amount of tax excluded, whichever is less, on tangible
HB2755 Enrolled - 225 - LRB104 08253 BDA 18303 b
1 personal property that is titled or registered with an agency
2 of this State's government. Beginning July 1, 2004, the fee
3 shall apply only to titled property that is subject to either
4 the Metro East Mass Transit District Retailers' Occupation Tax
5 or the Metro East Mass Transit District Service Occupation
6 Tax. No fee shall be imposed or collected under this
7 subsection on the sale of a motor vehicle in this State to a
8 resident of another state if that motor vehicle will not be
9 titled in this State.
10 (d-7) Until June 30, 2004, if a fee has been imposed under
11 subsection (d-6), a fee shall also be imposed upon the
12 privilege of using, in the district, any item of tangible
13 personal property that is titled or registered with any agency
14 of this State's government, in an amount equal to the amount of
15 the fee imposed under subsection (d-6).
16 (d-7.1) Beginning July 1, 2004, any fee imposed by the
17 Board of Trustees of any Metro East Mass Transit District
18 under subsection (d-6) and all civil penalties that may be
19 assessed as an incident of the fees shall be collected and
20 enforced by the State Department of Revenue. Reference to
21 "taxes" in this Section shall be construed to apply to the
22 administration, payment, and remittance of all fees under this
23 Section. For purposes of any fee imposed under subsection
24 (d-6), 4% of the fee, penalty, and interest received by the
25 Department in the first 12 months that the fee is collected and
26 enforced by the Department and 2% of the fee, penalty, and
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1 interest following the first 12 months (except the amount
2 collected on aviation fuel sold on or after December 1, 2019)
3 shall be deposited into the Tax Compliance and Administration
4 Fund and shall be used by the Department, subject to
5 appropriation, to cover the costs of the Department. No
6 retailers' discount shall apply to any fee imposed under
7 subsection (d-6).
8 (d-8) No item of titled property shall be subject to both
9 the higher rate approved by referendum, as authorized under
10 subsection (d-5), and any fee imposed under subsection (d-6)
11 or (d-7).
12 (d-9) (Blank).
13 (d-10) (Blank).
14 (e) A certificate of registration issued by the State
15 Department of Revenue to a retailer under the Retailers'
16 Occupation Tax Act or under the Service Occupation Tax Act
17 shall permit the registrant to engage in a business that is
18 taxed under the tax imposed under paragraphs (b), (c) or (d) of
19 this Section and no additional registration shall be required
20 under the tax. A certificate issued under the Use Tax Act or
21 the Service Use Tax Act shall be applicable with regard to any
22 tax imposed under paragraph (c) of this Section.
23 (f) (Blank).
24 (g) Any ordinance imposing or discontinuing any tax under
25 this Section shall be adopted and a certified copy thereof
26 filed with the Department on or before June 1, whereupon the
HB2755 Enrolled - 227 - LRB104 08253 BDA 18303 b
1 Department of Revenue shall proceed to administer and enforce
2 this Section on behalf of the Metro East Mass Transit District
3 as of September 1 next following such adoption and filing.
4 Beginning January 1, 1992, an ordinance or resolution imposing
5 or discontinuing the tax hereunder shall be adopted and a
6 certified copy thereof filed with the Department on or before
7 the first day of July, whereupon the Department shall proceed
8 to administer and enforce this Section as of the first day of
9 October next following such adoption and filing. Beginning
10 January 1, 1993, except as provided in subsection (d-5) of
11 this Section, an ordinance or resolution imposing or
12 discontinuing the tax hereunder shall be adopted and a
13 certified copy thereof filed with the Department on or before
14 the first day of October, whereupon the Department shall
15 proceed to administer and enforce this Section as of the first
16 day of January next following such adoption and filing, or,
17 beginning January 1, 2004, on or before the first day of April,
18 whereupon the Department shall proceed to administer and
19 enforce this Section as of the first day of July next following
20 the adoption and filing.
21 (h) Except as provided in subsection (d-7.1), the State
22 Department of Revenue shall, upon collecting any taxes as
23 provided in this Section, pay the taxes over to the State
24 Treasurer as trustee for the District. The taxes shall be held
25 in a trust fund outside the State Treasury. If an
26 airport-related purpose has been certified, taxes and
HB2755 Enrolled - 228 - LRB104 08253 BDA 18303 b
1 penalties collected in St. Clair County on aviation fuel sold
2 on or after December 1, 2019 from the 0.50% of the 0.75% rate
3 shall be immediately paid over by the Department to the State
4 Treasurer, ex officio, as trustee, for deposit into the Local
5 Government Aviation Trust Fund. The Department shall only pay
6 moneys into the Local Government Aviation Trust Fund under
7 this Act for so long as the revenue use requirements of 49
8 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
9 District.
10 As soon as possible after the first day of each month,
11 beginning January 1, 2011, upon certification of the
12 Department of Revenue, the Comptroller shall order
13 transferred, and the Treasurer shall transfer, to the STAR
14 Bonds Revenue Fund the local sales tax increment, as defined
15 in the Innovation Development and Economy Act, collected under
16 this Section during the second preceding calendar month for
17 sales within a STAR bond district. The Department shall make
18 this certification only if the local mass transit district
19 imposes a tax on real property as provided in the definition of
20 "local sales taxes" under the Innovation Development and
21 Economy Act.
22 After the monthly transfer to the STAR Bonds Revenue Fund,
23 on or before the 25th day of each calendar month, the State
24 Department of Revenue shall prepare and certify to the
25 Comptroller of the State of Illinois the amount to be paid to
26 the District, which shall be the amount (not including credit
HB2755 Enrolled - 229 - LRB104 08253 BDA 18303 b
1 memoranda and not including taxes and penalties collected on
2 aviation fuel sold on or after December 1, 2019 that are
3 deposited into the Local Government Aviation Trust Fund)
4 collected under this Section during the second preceding
5 calendar month by the Department plus an amount the Department
6 determines is necessary to offset any amounts that were
7 erroneously paid to a different taxing body, and not including
8 any amount equal to the amount of refunds made during the
9 second preceding calendar month by the Department on behalf of
10 the District, and not including any amount that the Department
11 determines is necessary to offset any amounts that were
12 payable to a different taxing body but were erroneously paid
13 to the District, and less any amounts that are transferred to
14 the STAR Bonds Revenue Fund, less 1.5% of the remainder, which
15 the Department shall transfer into the Tax Compliance and
16 Administration Fund. The Department, at the time of each
17 monthly disbursement to the District, shall prepare and
18 certify to the State Comptroller the amount to be transferred
19 into the Tax Compliance and Administration Fund under this
20 subsection. Within 10 days after receipt by the Comptroller of
21 the certification of the amount to be paid to the District and
22 the Tax Compliance and Administration Fund, the Comptroller
23 shall cause an order to be drawn for payment for the amount in
24 accordance with the direction in the certification.
25 (Source: P.A. 103-592, eff. 1-1-25.)
HB2755 Enrolled - 230 - LRB104 08253 BDA 18303 b
1 Section 15-20. The Regional Transportation Authority Act
2 is amended by changing Section 4.03 as follows:
3 (70 ILCS 3615/4.03)
4 Sec. 4.03. Taxes.
5 (a) In order to carry out any of the powers or purposes of
6 the Authority, the Board may, by ordinance adopted with the
7 concurrence of 12 of the then Directors, impose throughout the
8 metropolitan region any or all of the taxes provided in this
9 Section. Except as otherwise provided in this Act, taxes
10 imposed under this Section and civil penalties imposed
11 incident thereto shall be collected and enforced by the State
12 Department of Revenue. The Department shall have the power to
13 administer and enforce the taxes and to determine all rights
14 for refunds for erroneous payments of the taxes. Nothing in
15 Public Act 95-708 is intended to invalidate any taxes
16 currently imposed by the Authority. The increased vote
17 requirements to impose a tax shall only apply to actions taken
18 after January 1, 2008 (the effective date of Public Act
19 95-708).
20 (b) The Board may impose a public transportation tax upon
21 all persons engaged in the metropolitan region in the business
22 of selling at retail motor fuel for operation of motor
23 vehicles upon public highways. The tax shall be at a rate not
24 to exceed 5% of the gross receipts from the sales of motor fuel
25 in the course of the business. As used in this Act, the term
HB2755 Enrolled - 231 - LRB104 08253 BDA 18303 b
1 "motor fuel" shall have the same meaning as in the Motor Fuel
2 Tax Law. The Board may provide for details of the tax. The
3 provisions of any tax shall conform, as closely as may be
4 practicable, to the provisions of the Municipal Retailers
5 Occupation Tax Act, including, without limitation, conformity
6 to penalties with respect to the tax imposed and as to the
7 powers of the State Department of Revenue to promulgate and
8 enforce rules and regulations relating to the administration
9 and enforcement of the provisions of the tax imposed, except
10 that reference in the Act to any municipality shall refer to
11 the Authority and the tax shall be imposed only with regard to
12 receipts from sales of motor fuel in the metropolitan region,
13 at rates as limited by this Section.
14 (c) In connection with the tax imposed under paragraph (b)
15 of this Section, the Board may impose a tax upon the privilege
16 of using in the metropolitan region motor fuel for the
17 operation of a motor vehicle upon public highways, the tax to
18 be at a rate not in excess of the rate of tax imposed under
19 paragraph (b) of this Section. The Board may provide for
20 details of the tax.
21 (d) The Board may impose a motor vehicle parking tax upon
22 the privilege of parking motor vehicles at off-street parking
23 facilities in the metropolitan region at which a fee is
24 charged, and may provide for reasonable classifications in and
25 exemptions to the tax, for administration and enforcement
26 thereof and for civil penalties and refunds thereunder and may
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1 provide criminal penalties thereunder, the maximum penalties
2 not to exceed the maximum criminal penalties provided in the
3 Retailers' Occupation Tax Act. The Authority may collect and
4 enforce the tax itself or by contract with any unit of local
5 government. The State Department of Revenue shall have no
6 responsibility for the collection and enforcement unless the
7 Department agrees with the Authority to undertake the
8 collection and enforcement. As used in this paragraph, the
9 term "parking facility" means a parking area or structure
10 having parking spaces for more than 2 vehicles at which motor
11 vehicles are permitted to park in return for an hourly, daily,
12 or other periodic fee, whether publicly or privately owned,
13 but does not include parking spaces on a public street, the use
14 of which is regulated by parking meters.
15 (e) The Board may impose a Regional Transportation
16 Authority Retailers' Occupation Tax upon all persons engaged
17 in the business of selling tangible personal property at
18 retail in the metropolitan region. In Cook County, the tax
19 rate shall be 1.25% of the gross receipts from sales of food
20 for human consumption that is to be consumed off the premises
21 where it is sold (other than alcoholic beverages, food
22 consisting of or infused with adult use cannabis, soft drinks,
23 candy, and food that has been prepared for immediate
24 consumption) and tangible personal property taxed at the 1%
25 rate under the Retailers' Occupation Tax Act, and 1% of the
26 gross receipts from other taxable sales made in the course of
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1 that business. In DuPage, Kane, Lake, McHenry, and Will
2 counties, the tax rate shall be 0.75% of the gross receipts
3 from all taxable sales made in the course of that business,
4 including sales of food for human consumption that is to be
5 consumed off the premises where it is sold (other than
6 alcoholic beverages, food consisting of or infused with adult
7 use cannabis, soft drinks, candy, and food that has been
8 prepared for immediate consumption). The rate of tax imposed
9 in DuPage, Kane, Lake, McHenry, and Will counties under this
10 Section on sales of aviation fuel on or after December 1, 2019
11 shall, however, be 0.25% unless the Regional Transportation
12 Authority in DuPage, Kane, Lake, McHenry, and Will counties
13 has an "airport-related purpose" and the additional 0.50% of
14 the 0.75% tax on aviation fuel is expended for airport-related
15 purposes. If there is no airport-related purpose to which
16 aviation fuel tax revenue is dedicated, then aviation fuel is
17 excluded from the additional 0.50% of the 0.75% tax. The tax
18 imposed under this Section and all civil penalties that may be
19 assessed as an incident thereof shall be collected and
20 enforced by the State Department of Revenue. The Department
21 shall have full power to administer and enforce this Section;
22 to collect all taxes and penalties so collected in the manner
23 hereinafter provided; and to determine all rights to credit
24 memoranda arising on account of the erroneous payment of tax
25 or penalty hereunder. In the administration of, and compliance
26 with this Section, the Department and persons who are subject
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1 to this Section shall have the same rights, remedies,
2 privileges, immunities, powers, and duties, and be subject to
3 the same conditions, restrictions, limitations, penalties,
4 exclusions, exemptions, and definitions of terms, and employ
5 the same modes of procedure, as are prescribed in Sections 1,
6 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to
7 all provisions therein other than the State rate of tax and
8 other than the exemption for food for human consumption that
9 is to be consumed off the premises where it is sold (other than
10 alcoholic beverages, food consisting of or infused with adult
11 use cannabis, soft drinks, candy, and food that has been
12 prepared for immediate consumption), which is taxed at the
13 rate as provided in this subsection), 2c, 3 (except as to the
14 disposition of taxes and penalties collected, and except that
15 the retailer's discount is not allowed for taxes paid on
16 aviation fuel that are subject to the revenue use requirements
17 of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
18 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
19 10, 11, 12, and 13 of the Retailers' Occupation Tax Act and
20 Section 3-7 of the Uniform Penalty and Interest Act, as fully
21 as if those provisions were set forth herein.
22 The Board and DuPage, Kane, Lake, McHenry, and Will
23 counties must comply with the certification requirements for
24 airport-related purposes under Section 2-22 of the Retailers'
25 Occupation Tax Act. For purposes of this Section,
26 "airport-related purposes" has the meaning ascribed in Section
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1 6z-20.2 of the State Finance Act. This exclusion for aviation
2 fuel only applies for so long as the revenue use requirements
3 of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
4 Authority.
5 Persons subject to any tax imposed under the authority
6 granted in this Section may reimburse themselves for their
7 seller's tax liability hereunder by separately stating the tax
8 as an additional charge, which charge may be stated in
9 combination in a single amount with State taxes that sellers
10 are required to collect under the Use Tax Act, under any
11 bracket schedules the Department may prescribe.
12 Whenever the Department determines that a refund should be
13 made under this Section to a claimant instead of issuing a
14 credit memorandum, the Department shall notify the State
15 Comptroller, who shall cause the warrant to be drawn for the
16 amount specified, and to the person named, in the notification
17 from the Department. The refund shall be paid by the State
18 Treasurer out of the Regional Transportation Authority tax
19 fund established under paragraph (n) of this Section or the
20 Local Government Aviation Trust Fund, as appropriate.
21 If a tax is imposed under this subsection (e), a tax shall
22 also be imposed under subsections (f) and (g) of this Section.
23 For the purpose of determining whether a tax authorized
24 under this Section is applicable, a retail sale by a producer
25 of coal or other mineral mined in Illinois, is a sale at retail
26 at the place where the coal or other mineral mined in Illinois
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1 is extracted from the earth. This paragraph does not apply to
2 coal or other mineral when it is delivered or shipped by the
3 seller to the purchaser at a point outside Illinois so that the
4 sale is exempt under the Federal Constitution as a sale in
5 interstate or foreign commerce.
6 No tax shall be imposed or collected under this subsection
7 on the sale of a motor vehicle in this State to a resident of
8 another state if that motor vehicle will not be titled in this
9 State.
10 Nothing in this Section shall be construed to authorize
11 the Regional Transportation Authority to impose a tax upon the
12 privilege of engaging in any business that under the
13 Constitution of the United States may not be made the subject
14 of taxation by this State.
15 (f) If a tax has been imposed under paragraph (e), a
16 Regional Transportation Authority Service Occupation Tax shall
17 also be imposed upon all persons engaged, in the metropolitan
18 region in the business of making sales of service, who, as an
19 incident to making the sales of service, transfer tangible
20 personal property within the metropolitan region, either in
21 the form of tangible personal property or in the form of real
22 estate as an incident to a sale of service. In Cook County, the
23 tax rate shall be: (1) 1.25% of the serviceman's cost price of
24 food prepared for immediate consumption and transferred
25 incident to a sale of service subject to the service
26 occupation tax by an entity that is located in the
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1 metropolitan region and that is licensed under the Hospital
2 Licensing Act, the Nursing Home Care Act, the Assisted Living
3 and Shared Housing Act, the Specialized Mental Health
4 Rehabilitation Act of 2013, the ID/DD Community Care Act, the
5 MC/DD Act, or the Child Care Act of 1969, or an entity that
6 holds a permit issued pursuant to the Life Care Facilities
7 Act; (2) 1.25% of the selling price of food for human
8 consumption that is to be consumed off the premises where it is
9 sold (other than alcoholic beverages, food consisting of or
10 infused with adult use cannabis, soft drinks, candy, and food
11 that has been prepared for immediate consumption) and tangible
12 personal property taxed at the 1% rate under the Service
13 Occupation Tax Act; and (3) 1% of the selling price from other
14 taxable sales of tangible personal property transferred. In
15 DuPage, Kane, Lake, McHenry, and Will counties, the rate shall
16 be (1) 0.75% of the selling price of all tangible personal
17 property transferred, including food for human consumption
18 that is to be consumed off the premises where it is sold (other
19 than alcoholic beverages, food consisting of or infused with
20 adult use cannabis, soft drinks, candy, and food that has been
21 prepared for immediate consumption); and (2) 0.75% of the
22 serviceman's cost price of food prepared for immediate
23 consumption and transferred incident to a sale of service
24 subject to the service occupation tax by an entity that is
25 located in the metropolitan region and that is licensed under
26 the Hospital Licensing Act, the Nursing Home Care Act, the
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1 Assisted Living and Shared Housing Act, the Specialized Mental
2 Health Rehabilitation Act of 2013, the ID/DD Community Care
3 Act, or the MC/DD Act, or the Child Care Act of 1969, or an
4 entity that holds a permit issued pursuant to the Life Care
5 Facilities Act. The rate of tax imposed in DuPage, Kane, Lake,
6 McHenry, and Will counties under this Section on sales of
7 aviation fuel on or after December 1, 2019 shall, however, be
8 0.25% unless the Regional Transportation Authority in DuPage,
9 Kane, Lake, McHenry, and Will counties has an "airport-related
10 purpose" and the additional 0.50% of the 0.75% tax on aviation
11 fuel is expended for airport-related purposes. If there is no
12 airport-related purpose to which aviation fuel tax revenue is
13 dedicated, then aviation fuel is excluded from the additional
14 0.5% of the 0.75% tax.
15 The Board and DuPage, Kane, Lake, McHenry, and Will
16 counties must comply with the certification requirements for
17 airport-related purposes under Section 2-22 of the Retailers'
18 Occupation Tax Act. For purposes of this Section,
19 "airport-related purposes" has the meaning ascribed in Section
20 6z-20.2 of the State Finance Act. This exclusion for aviation
21 fuel only applies for so long as the revenue use requirements
22 of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
23 Authority.
24 The tax imposed under this paragraph and all civil
25 penalties that may be assessed as an incident thereof shall be
26 collected and enforced by the State Department of Revenue. The
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1 Department shall have full power to administer and enforce
2 this paragraph; to collect all taxes and penalties due
3 hereunder; to dispose of taxes and penalties collected in the
4 manner hereinafter provided; and to determine all rights to
5 credit memoranda arising on account of the erroneous payment
6 of tax or penalty hereunder. In the administration of and
7 compliance with this paragraph, the Department and persons who
8 are subject to this paragraph shall have the same rights,
9 remedies, privileges, immunities, powers, and duties, and be
10 subject to the same conditions, restrictions, limitations,
11 penalties, exclusions, exemptions, and definitions of terms,
12 and employ the same modes of procedure, as are prescribed in
13 Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
14 provisions therein other than (i) the State rate of tax; (ii)
15 the exemption for food for human consumption that is to be
16 consumed off the premises where it is sold (other than
17 alcoholic beverages, food consisting of or infused with adult
18 use cannabis, soft drinks, candy, and food that has been
19 prepared for immediate consumption), which is taxed at the
20 rate as provided in this subsection; and (iii) the exemption
21 for food prepared for immediate consumption and transferred
22 incident to a sale of service subject to the service
23 occupation tax by an entity that is licensed under the
24 Hospital Licensing Act, the Nursing Home Care Act, the
25 Assisted Living and Shared Housing Act, the Specialized Mental
26 Health Rehabilitation Act of 2013, the ID/DD Community Care
HB2755 Enrolled - 240 - LRB104 08253 BDA 18303 b
1 Act, or the MC/DD Act, or the Child Care Act of 1969, or an
2 entity that holds a permit issued pursuant to the Life Care
3 Facilities Act, which is taxed at the rate as provided in this
4 subsection), 4 (except that the reference to the State shall
5 be to the Authority), 5, 7, 8 (except that the jurisdiction to
6 which the tax shall be a debt to the extent indicated in that
7 Section 8 shall be the Authority), 9 (except as to the
8 disposition of taxes and penalties collected, and except that
9 the returned merchandise credit for this tax may not be taken
10 against any State tax, and except that the retailer's discount
11 is not allowed for taxes paid on aviation fuel that are subject
12 to the revenue use requirements of 49 U.S.C. 47107(b) and 49
13 U.S.C. 47133), 10, 11, 12 (except the reference therein to
14 Section 2b of the Retailers' Occupation Tax Act), 13 (except
15 that any reference to the State shall mean the Authority), the
16 first paragraph of Section 15, 16, 17, 18, 19, and 20 of the
17 Service Occupation Tax Act and Section 3-7 of the Uniform
18 Penalty and Interest Act, as fully as if those provisions were
19 set forth herein.
20 Persons subject to any tax imposed under the authority
21 granted in this paragraph may reimburse themselves for their
22 serviceman's tax liability hereunder by separately stating the
23 tax as an additional charge, that charge may be stated in
24 combination in a single amount with State tax that servicemen
25 are authorized to collect under the Service Use Tax Act, under
26 any bracket schedules the Department may prescribe.
HB2755 Enrolled - 241 - LRB104 08253 BDA 18303 b
1 Whenever the Department determines that a refund should be
2 made under this paragraph to a claimant instead of issuing a
3 credit memorandum, the Department shall notify the State
4 Comptroller, who shall cause the warrant to be drawn for the
5 amount specified, and to the person named in the notification
6 from the Department. The refund shall be paid by the State
7 Treasurer out of the Regional Transportation Authority tax
8 fund established under paragraph (n) of this Section or the
9 Local Government Aviation Trust Fund, as appropriate.
10 Nothing in this paragraph shall be construed to authorize
11 the Authority to impose a tax upon the privilege of engaging in
12 any business that under the Constitution of the United States
13 may not be made the subject of taxation by the State.
14 (g) If a tax has been imposed under paragraph (e), a tax
15 shall also be imposed upon the privilege of using in the
16 metropolitan region, any item of tangible personal property
17 that is purchased outside the metropolitan region at retail
18 from a retailer, and that is titled or registered with an
19 agency of this State's government. In Cook County, the tax
20 rate shall be 1% of the selling price of the tangible personal
21 property, as "selling price" is defined in the Use Tax Act. In
22 DuPage, Kane, Lake, McHenry, and Will counties, the tax rate
23 shall be 0.75% of the selling price of the tangible personal
24 property, as "selling price" is defined in the Use Tax Act. The
25 tax shall be collected from persons whose Illinois address for
26 titling or registration purposes is given as being in the
HB2755 Enrolled - 242 - LRB104 08253 BDA 18303 b
1 metropolitan region. The tax shall be collected by the
2 Department of Revenue for the Regional Transportation
3 Authority. The tax must be paid to the State, or an exemption
4 determination must be obtained from the Department of Revenue,
5 before the title or certificate of registration for the
6 property may be issued. The tax or proof of exemption may be
7 transmitted to the Department by way of the State agency with
8 which, or the State officer with whom, the tangible personal
9 property must be titled or registered if the Department and
10 the State agency or State officer determine that this
11 procedure will expedite the processing of applications for
12 title or registration.
13 The Department shall have full power to administer and
14 enforce this paragraph; to collect all taxes, penalties, and
15 interest due hereunder; to dispose of taxes, penalties, and
16 interest collected in the manner hereinafter provided; and to
17 determine all rights to credit memoranda or refunds arising on
18 account of the erroneous payment of tax, penalty, or interest
19 hereunder. In the administration of and compliance with this
20 paragraph, the Department and persons who are subject to this
21 paragraph shall have the same rights, remedies, privileges,
22 immunities, powers, and duties, and be subject to the same
23 conditions, restrictions, limitations, penalties, exclusions,
24 exemptions, and definitions of terms and employ the same modes
25 of procedure, as are prescribed in Sections 2 (except the
26 definition of "retailer maintaining a place of business in
HB2755 Enrolled - 243 - LRB104 08253 BDA 18303 b
1 this State"), 3 through 3-80 (except provisions pertaining to
2 the State rate of tax, and except provisions concerning
3 collection or refunding of the tax by retailers), 4, 11, 12,
4 12a, 14, 15, 19 (except the portions pertaining to claims by
5 retailers and except the last paragraph concerning refunds),
6 20, 21, and 22 of the Use Tax Act, and are not inconsistent
7 with this paragraph, as fully as if those provisions were set
8 forth herein.
9 Whenever the Department determines that a refund should be
10 made under this paragraph to a claimant instead of issuing a
11 credit memorandum, the Department shall notify the State
12 Comptroller, who shall cause the order to be drawn for the
13 amount specified, and to the person named in the notification
14 from the Department. The refund shall be paid by the State
15 Treasurer out of the Regional Transportation Authority tax
16 fund established under paragraph (n) of this Section.
17 (g-5) If, on January 1, 2025, a unit of local government
18 has in effect a tax under subsections (e), (f), and (g), or if,
19 after January 1, 2025, a unit of local government imposes a tax
20 under subsections (e), (f), and (g), then that tax applies to
21 leases of tangible personal property in effect, entered into,
22 or renewed on or after that date in the same manner as the tax
23 under this Section and in accordance with the changes made by
24 Public Act 103-592 this amendatory Act of the 103rd General
25 Assembly.
26 (h) The Authority may impose a replacement vehicle tax of
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1 $50 on any passenger car as defined in Section 1-157 of the
2 Illinois Vehicle Code purchased within the metropolitan region
3 by or on behalf of an insurance company to replace a passenger
4 car of an insured person in settlement of a total loss claim.
5 The tax imposed may not become effective before the first day
6 of the month following the passage of the ordinance imposing
7 the tax and receipt of a certified copy of the ordinance by the
8 Department of Revenue. The Department of Revenue shall collect
9 the tax for the Authority in accordance with Sections 3-2002
10 and 3-2003 of the Illinois Vehicle Code.
11 The Department shall immediately pay over to the State
12 Treasurer, ex officio, as trustee, all taxes collected
13 hereunder.
14 As soon as possible after the first day of each month,
15 beginning January 1, 2011, upon certification of the
16 Department of Revenue, the Comptroller shall order
17 transferred, and the Treasurer shall transfer, to the STAR
18 Bonds Revenue Fund the local sales tax increment, as defined
19 in the Innovation Development and Economy Act, collected under
20 this Section during the second preceding calendar month for
21 sales within a STAR bond district.
22 After the monthly transfer to the STAR Bonds Revenue Fund,
23 on or before the 25th day of each calendar month, the
24 Department shall prepare and certify to the Comptroller the
25 disbursement of stated sums of money to the Authority. The
26 amount to be paid to the Authority shall be the amount
HB2755 Enrolled - 245 - LRB104 08253 BDA 18303 b
1 collected hereunder during the second preceding calendar month
2 by the Department, less any amount determined by the
3 Department to be necessary for the payment of refunds, and
4 less any amounts that are transferred to the STAR Bonds
5 Revenue Fund. Within 10 days after receipt by the Comptroller
6 of the disbursement certification to the Authority provided
7 for in this Section to be given to the Comptroller by the
8 Department, the Comptroller shall cause the orders to be drawn
9 for that amount in accordance with the directions contained in
10 the certification.
11 (i) The Board may not impose any other taxes except as it
12 may from time to time be authorized by law to impose.
13 (j) A certificate of registration issued by the State
14 Department of Revenue to a retailer under the Retailers'
15 Occupation Tax Act or under the Service Occupation Tax Act
16 shall permit the registrant to engage in a business that is
17 taxed under the tax imposed under paragraphs (b), (e), (f) or
18 (g) of this Section and no additional registration shall be
19 required under the tax. A certificate issued under the Use Tax
20 Act or the Service Use Tax Act shall be applicable with regard
21 to any tax imposed under paragraph (c) of this Section.
22 (k) The provisions of any tax imposed under paragraph (c)
23 of this Section shall conform as closely as may be practicable
24 to the provisions of the Use Tax Act, including, without
25 limitation, conformity as to penalties with respect to the tax
26 imposed and as to the powers of the State Department of Revenue
HB2755 Enrolled - 246 - LRB104 08253 BDA 18303 b
1 to promulgate and enforce rules and regulations relating to
2 the administration and enforcement of the provisions of the
3 tax imposed. The taxes shall be imposed only on use within the
4 metropolitan region and at rates as provided in the paragraph.
5 (l) The Board in imposing any tax as provided in
6 paragraphs (b) and (c) of this Section, shall, after seeking
7 the advice of the State Department of Revenue, provide means
8 for retailers, users or purchasers of motor fuel for purposes
9 other than those with regard to which the taxes may be imposed
10 as provided in those paragraphs to receive refunds of taxes
11 improperly paid, which provisions may be at variance with the
12 refund provisions as applicable under the Municipal Retailers
13 Occupation Tax Act. The State Department of Revenue may
14 provide for certificates of registration for users or
15 purchasers of motor fuel for purposes other than those with
16 regard to which taxes may be imposed as provided in paragraphs
17 (b) and (c) of this Section to facilitate the reporting and
18 nontaxability of the exempt sales or uses.
19 (m) Any ordinance imposing or discontinuing any tax under
20 this Section shall be adopted and a certified copy thereof
21 filed with the Department on or before June 1, whereupon the
22 Department of Revenue shall proceed to administer and enforce
23 this Section on behalf of the Regional Transportation
24 Authority as of September 1 next following such adoption and
25 filing. Beginning January 1, 1992, an ordinance or resolution
26 imposing or discontinuing the tax hereunder shall be adopted
HB2755 Enrolled - 247 - LRB104 08253 BDA 18303 b
1 and a certified copy thereof filed with the Department on or
2 before the first day of July, whereupon the Department shall
3 proceed to administer and enforce this Section as of the first
4 day of October next following such adoption and filing.
5 Beginning January 1, 1993, an ordinance or resolution
6 imposing, increasing, decreasing, or discontinuing the tax
7 hereunder shall be adopted and a certified copy thereof filed
8 with the Department, whereupon the Department shall proceed to
9 administer and enforce this Section as of the first day of the
10 first month to occur not less than 60 days following such
11 adoption and filing. Any ordinance or resolution of the
12 Authority imposing a tax under this Section and in effect on
13 August 1, 2007 shall remain in full force and effect and shall
14 be administered by the Department of Revenue under the terms
15 and conditions and rates of tax established by such ordinance
16 or resolution until the Department begins administering and
17 enforcing an increased tax under this Section as authorized by
18 Public Act 95-708. The tax rates authorized by Public Act
19 95-708 are effective only if imposed by ordinance of the
20 Authority.
21 (n) Except as otherwise provided in this subsection (n),
22 the State Department of Revenue shall, upon collecting any
23 taxes as provided in this Section, pay the taxes over to the
24 State Treasurer as trustee for the Authority. The taxes shall
25 be held in a trust fund outside the State Treasury. If an
26 airport-related purpose has been certified, taxes and
HB2755 Enrolled - 248 - LRB104 08253 BDA 18303 b
1 penalties collected in DuPage, Kane, Lake, McHenry and Will
2 counties on aviation fuel sold on or after December 1, 2019
3 from the 0.50% of the 0.75% rate shall be immediately paid over
4 by the Department to the State Treasurer, ex officio, as
5 trustee, for deposit into the Local Government Aviation Trust
6 Fund. The Department shall only pay moneys into the Local
7 Government Aviation Trust Fund under this Act for so long as
8 the revenue use requirements of 49 U.S.C. 47107(b) and 49
9 U.S.C. 47133 are binding on the Authority. On or before the
10 25th day of each calendar month, the State Department of
11 Revenue shall prepare and certify to the Comptroller of the
12 State of Illinois and to the Authority (i) the amount of taxes
13 collected in each county other than Cook County in the
14 metropolitan region, (not including, if an airport-related
15 purpose has been certified, the taxes and penalties collected
16 from the 0.50% of the 0.75% rate on aviation fuel sold on or
17 after December 1, 2019 that are deposited into the Local
18 Government Aviation Trust Fund) (ii) the amount of taxes
19 collected within the City of Chicago, and (iii) the amount
20 collected in that portion of Cook County outside of Chicago,
21 each amount less the amount necessary for the payment of
22 refunds to taxpayers located in those areas described in items
23 (i), (ii), and (iii), and less 1.5% of the remainder, which
24 shall be transferred from the trust fund into the Tax
25 Compliance and Administration Fund. The Department, at the
26 time of each monthly disbursement to the Authority, shall
HB2755 Enrolled - 249 - LRB104 08253 BDA 18303 b
1 prepare and certify to the State Comptroller the amount to be
2 transferred into the Tax Compliance and Administration Fund
3 under this subsection. Within 10 days after receipt by the
4 Comptroller of the certification of the amounts, the
5 Comptroller shall cause an order to be drawn for the transfer
6 of the amount certified into the Tax Compliance and
7 Administration Fund and the payment of two-thirds of the
8 amounts certified in item (i) of this subsection to the
9 Authority and one-third of the amounts certified in item (i)
10 of this subsection to the respective counties other than Cook
11 County and the amount certified in items (ii) and (iii) of this
12 subsection to the Authority.
13 In addition to the disbursement required by the preceding
14 paragraph, an allocation shall be made in July 1991 and each
15 year thereafter to the Regional Transportation Authority. The
16 allocation shall be made in an amount equal to the average
17 monthly distribution during the preceding calendar year
18 (excluding the 2 months of lowest receipts) and the allocation
19 shall include the amount of average monthly distribution from
20 the Regional Transportation Authority Occupation and Use Tax
21 Replacement Fund. The distribution made in July 1992 and each
22 year thereafter under this paragraph and the preceding
23 paragraph shall be reduced by the amount allocated and
24 disbursed under this paragraph in the preceding calendar year.
25 The Department of Revenue shall prepare and certify to the
26 Comptroller for disbursement the allocations made in
HB2755 Enrolled - 250 - LRB104 08253 BDA 18303 b
1 accordance with this paragraph.
2 (o) Failure to adopt a budget ordinance or otherwise to
3 comply with Section 4.01 of this Act or to adopt a Five-year
4 Capital Program or otherwise to comply with paragraph (b) of
5 Section 2.01 of this Act shall not affect the validity of any
6 tax imposed by the Authority otherwise in conformity with law.
7 (p) At no time shall a public transportation tax or motor
8 vehicle parking tax authorized under paragraphs (b), (c), and
9 (d) of this Section be in effect at the same time as any
10 retailers' occupation, use or service occupation tax
11 authorized under paragraphs (e), (f), and (g) of this Section
12 is in effect.
13 Any taxes imposed under the authority provided in
14 paragraphs (b), (c), and (d) shall remain in effect only until
15 the time as any tax authorized by paragraph (e), (f), or (g) of
16 this Section is are imposed and becomes effective. Once any
17 tax authorized by paragraph (e), (f), or (g) is imposed the
18 Board may not reimpose taxes as authorized in paragraphs (b),
19 (c), and (d) of the Section unless any tax authorized by
20 paragraph (e), (f), or (g) of this Section becomes ineffective
21 by means other than an ordinance of the Board.
22 (q) Any existing rights, remedies and obligations
23 (including enforcement by the Regional Transportation
24 Authority) arising under any tax imposed under paragraph (b),
25 (c), or (d) of this Section shall not be affected by the
26 imposition of a tax under paragraph (e), (f), or (g) of this
HB2755 Enrolled - 251 - LRB104 08253 BDA 18303 b
1 Section.
2 (Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25;
3 103-781, eff. 8-5-24; revised 11-26-24.)
4 ARTICLE 20
5 Section 20-5. The Department of Human Services Act is
6 amended by adding Section 1-55 as follows:
7 (20 ILCS 1305/1-55 new)
8 Sec. 1-55. 9-8-8 National Suicide Prevention Lifeline
9 System and Statewide 9-8-8 Trust Fund.
10 (a) The Department of Human Services is authorized to
11 implement and administer the 9-8-8 National Suicide Prevention
12 Lifeline system in compliance with the National Suicide
13 Hotline Designation Act of 2020 as codified in 47 U.S.C. 251
14 and 251a and any subsequent amendments, the Federal
15 Communication Commission's rules adopted to administer the
16 National Suicide Hotline Designation Act of 2020 and any
17 subsequent amendments, and national guidelines for crisis
18 care.
19 (b) The Department is authorized to collaborate with other
20 State agencies and stakeholders to implement and administer
21 the 9-8-8 National Suicide Prevention Lifeline system.
22 (c) The Department is authorized to administer the
23 Statewide 9-8-8 Trust Fund pursuant to Section 6z-134 of the
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1 State Finance Act.
2 Section 20-10. The State Finance Act is amended by
3 changing Section 6z-134 as follows:
4 (30 ILCS 105/6z-134)
5 Sec. 6z-134. Statewide 9-8-8 Trust Fund.
6 (a) The Statewide 9-8-8 Trust Fund is created as a special
7 fund in the State treasury. This Fund is administered by the
8 Department of Human Services. Moneys in the Fund shall be used
9 by the Department of Human Services for the purposes of
10 establishing and maintaining a statewide 9-8-8 suicide
11 prevention and mental health crisis system pursuant to the
12 National Suicide Hotline Designation Act of 2020 as codified
13 in 47 U.S.C. 251 and 251a and any subsequent amendments, the
14 Federal Communication Commission's rules adopted to administer
15 the National Suicide Hotline Designation Act of 2020 as
16 codified in 47 U.S.C. 251 and 251a and any subsequent
17 amendments on July 16, 2020, and national guidelines for
18 crisis care. The Fund shall consist of:
19 (1) appropriations by the General Assembly;
20 (2) grants and gifts intended for deposit in the Fund;
21 (3) interest, premiums, gains, or other earnings on
22 the Fund;
23 (3.1) proceeds from the statewide 9-8-8 surcharge
24 imposed under Sections 3 and 4 of the Telecommunication
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1 Excise Tax Act; and
2 (4) moneys received from any other source that are
3 deposited in or transferred into the Fund.
4 (b) Moneys in the Fund:
5 (1) do not revert at the end of any State fiscal year
6 but remain available for the purposes of the Fund in
7 subsequent State fiscal years; and
8 (2) are not subject to transfer to any other Fund or to
9 transfer, assignment, or reassignment for any other use or
10 purpose outside of those specified in this Section; and .
11 (3) shall be used by the Department of Human Services
12 to pay expenses pursuant to 47 U.S.C. 251a.
13 (c) An annual report of Fund deposits and expenditures
14 shall be made to the General Assembly and the Federal
15 Communications Commission by the Department of Human Services
16 pursuant to 47 U.S.C. 251a.
17 (d) (Blank).
18 (e) For the purposes of this Section, "statewide 9-8-8
19 suicide prevention and mental health crisis system" means the
20 core elements or pillars of the crisis system, as described by
21 the Substance Abuse and Mental Health Services Administration,
22 and includes Illinois' 9-8-8 Lifeline Contact Centers,
23 community crisis response services, including mobile crisis
24 teams, and crisis receiving and stabilization facilities and
25 programs, including Living Room Programs.
26 (Source: P.A. 102-699, eff. 4-19-22; 102-1115, eff. 1-9-23.)
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1 Section 20-15. The Telecommunications Excise Tax Act is
2 amended by changing Sections 2, 3, 4, and 6 as follows:
3 (35 ILCS 630/2) (from Ch. 120, par. 2002)
4 Sec. 2. As used in this Article, unless the context
5 clearly requires otherwise:
6 (a) "Gross charge" means the amount paid for the act or
7 privilege of originating or receiving telecommunications in
8 this State and for all services and equipment provided in
9 connection therewith by a retailer, valued in money whether
10 paid in money or otherwise, including cash, credits, services,
11 and property of every kind or nature, and shall be determined
12 without any deduction on account of the cost of such
13 telecommunications, the cost of materials used, labor or
14 service costs, or any other expense whatsoever. In case credit
15 is extended, the amount thereof shall be included only as and
16 when paid. "Gross charges" for private line service shall
17 include charges imposed at each channel termination point
18 within this State, charges for the channel mileage between
19 each channel termination point within this State, and charges
20 for that portion of the interstate inter-office channel
21 provided within Illinois. Charges for that portion of the
22 interstate inter-office channel provided in Illinois shall be
23 determined by the retailer as follows: (i) for interstate
24 inter-office channels having 2 channel termination points,
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1 only one of which is in Illinois, 50% of the total charge
2 imposed; or (ii) for interstate inter-office channels having
3 more than 2 channel termination points, one or more of which
4 are in Illinois, an amount equal to the total charge
5 multiplied by a fraction, the numerator of which is the number
6 of channel termination points within Illinois and the
7 denominator of which is the total number of channel
8 termination points. Prior to January 1, 2004, any method
9 consistent with this paragraph or other method that reasonably
10 apportions the total charges for interstate inter-office
11 channels among the states in which channel terminations points
12 are located shall be accepted as a reasonable method to
13 determine the charges for that portion of the interstate
14 inter-office channel provided within Illinois for that period.
15 However, "gross charges" shall not include any of the
16 following:
17 (1) Any amounts added to a purchaser's bill because of
18 a charge made pursuant to (i) the tax imposed by this
19 Article; (ii) charges added to customers' bills pursuant
20 to the provisions of Section Sections 9-221 or 9-222 of
21 the Public Utilities Act, as amended, or any similar
22 charges added to customers' bills by retailers who are not
23 subject to rate regulation by the Illinois Commerce
24 Commission for the purpose of recovering any of the tax
25 liabilities or other amounts specified in such provisions
26 of such Act; (iii) the tax imposed by Section 4251 of the
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1 Internal Revenue Code; (iv) 911 surcharges; or (v) the tax
2 imposed by the Simplified Municipal Telecommunications Tax
3 Act.
4 (2) Charges for a sent collect telecommunication
5 received outside of the State.
6 (3) Charges for leased time on equipment or charges
7 for the storage of data or information for subsequent
8 retrieval or the processing of data or information
9 intended to change its form or content. Such equipment
10 includes, but is not limited to, the use of calculators,
11 computers, data processing equipment, tabulating
12 equipment, or accounting equipment and also includes the
13 usage of computers under a time-sharing agreement.
14 (4) Charges for customer equipment, including such
15 equipment that is leased or rented by the customer from
16 any source, wherein such charges are disaggregated and
17 separately identified from other charges.
18 (5) Charges to business enterprises certified under
19 Section 9-222.1 of the Public Utilities Act, as amended,
20 or under Section 95 of the Reimagining Energy and Vehicles
21 in Illinois Act, to the extent of such exemption and
22 during the period of time specified by the Department of
23 Commerce and Economic Opportunity.
24 (5.1) Charges to business enterprises certified under
25 the Manufacturing Illinois Chips for Real Opportunity
26 (MICRO) Act, to the extent of the exemption and during the
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1 period of time specified by the Department of Commerce and
2 Economic Opportunity.
3 (5.2) Charges to entities certified under Section
4 605-1115 of the Department of Commerce and Economic
5 Opportunity Law of the Civil Administrative Code of
6 Illinois to the extent of the exemption and during the
7 period of time specified by the Department of Commerce and
8 Economic Opportunity.
9 (6) Charges for telecommunications and all services
10 and equipment provided in connection therewith between a
11 parent corporation and its wholly owned subsidiaries or
12 between wholly owned subsidiaries when the tax imposed
13 under this Article has already been paid to a retailer and
14 only to the extent that the charges between the parent
15 corporation and wholly owned subsidiaries or between
16 wholly owned subsidiaries represent expense allocation
17 between the corporations and not the generation of profit
18 for the corporation rendering such service.
19 (7) Bad debts. Bad debt means any portion of a debt
20 that is related to a sale at retail for which gross charges
21 are not otherwise deductible or excludable that has become
22 worthless or uncollectable, as determined under applicable
23 federal income tax standards. If the portion of the debt
24 deemed to be bad is subsequently paid, the retailer shall
25 report and pay the tax on that portion during the
26 reporting period in which the payment is made.
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1 (8) Charges paid by inserting coins in coin-operated
2 telecommunication devices.
3 (9) Amounts paid by telecommunications retailers under
4 the Telecommunications Municipal Infrastructure
5 Maintenance Fee Act.
6 (10) Charges for nontaxable services or
7 telecommunications if (i) those charges are aggregated
8 with other charges for telecommunications that are
9 taxable, (ii) those charges are not separately stated on
10 the customer bill or invoice, and (iii) the retailer can
11 reasonably identify the nontaxable charges on the
12 retailer's books and records kept in the regular course of
13 business. If the nontaxable charges cannot reasonably be
14 identified, the gross charge from the sale of both taxable
15 and nontaxable services or telecommunications billed on a
16 combined basis shall be attributed to the taxable services
17 or telecommunications. The burden of proving nontaxable
18 charges shall be on the retailer of the
19 telecommunications.
20 (b) "Amount paid" means the amount charged to the
21 taxpayer's service address in this State regardless of where
22 such amount is billed or paid.
23 (c) "Telecommunications", in addition to the meaning
24 ordinarily and popularly ascribed to it, includes, without
25 limitation, messages or information transmitted through use of
26 local, toll, and wide area telephone service; private line
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1 services; channel services; telegraph services;
2 teletypewriter; computer exchange services; cellular mobile
3 telecommunications service; specialized mobile radio;
4 stationary 2-way two way radio; paging service; or any other
5 form of mobile and portable one-way or 2-way two-way
6 communications; or any other transmission of messages or
7 information by electronic or similar means, between or among
8 points by wire, cable, fiber optics fiber-optics, laser,
9 microwave, radio, satellite, or similar facilities. As used in
10 this Act, "private line" means a dedicated non-traffic
11 sensitive service for a single customer, that entitles the
12 customer to exclusive or priority use of a communications
13 channel or group of channels, from one or more specified
14 locations to one or more other specified locations. The
15 definition of "telecommunications" shall not include value
16 added services in which computer processing applications are
17 used to act on the form, content, code, and protocol of the
18 information for purposes other than transmission.
19 "Telecommunications" shall not include purchases of
20 telecommunications by a telecommunications service provider
21 for use as a component part of the service provided by him to
22 the ultimate retail consumer who originates or terminates the
23 taxable end-to-end communications. Carrier access charges,
24 right of access charges, charges for use of inter-company
25 facilities, and all telecommunications resold in the
26 subsequent provision of, used as a component of, or integrated
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1 into end-to-end telecommunications service shall be
2 non-taxable as sales for resale.
3 (d) "Interstate telecommunications" means all
4 telecommunications that either originate or terminate outside
5 this State.
6 (e) "Intrastate telecommunications" means all
7 telecommunications that originate and terminate within this
8 State.
9 (f) "Department" means the Department of Revenue of the
10 State of Illinois.
11 (g) "Director" means the Director of Revenue for the
12 Department of Revenue of the State of Illinois.
13 (h) "Taxpayer" means a person who individually or through
14 his agents, employees, or permittees engages in the act or
15 privilege of originating or receiving telecommunications in
16 this State and who incurs a tax liability under this Article.
17 (i) "Person" means any natural individual, firm, trust,
18 estate, partnership, association, joint stock company, joint
19 venture, corporation, limited liability company, or a
20 receiver, trustee, guardian or other representative appointed
21 by order of any court, the federal Federal and State
22 governments, including State universities created by statute
23 or any city, town, county, or other political subdivision of
24 this State.
25 (j) "Purchase at retail" means the acquisition,
26 consumption, or use of telecommunication through a sale at
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1 retail.
2 (k) "Sale at retail" means the transmitting, supplying, or
3 furnishing of telecommunications and all services and
4 equipment provided in connection therewith for a consideration
5 to persons other than the federal Federal and State
6 governments, and State universities created by statute and
7 other than between a parent corporation and its wholly owned
8 subsidiaries or between wholly owned subsidiaries for their
9 use or consumption and not for resale.
10 (l) "Retailer" means and includes every person engaged in
11 the business of making sales at retail as defined in this
12 Article. The Department may, in its discretion, upon
13 application, authorize the collection of the tax hereby
14 imposed by any retailer not maintaining a place of business
15 within this State, who, to the satisfaction of the Department,
16 furnishes adequate security to insure collection and payment
17 of the tax. Such retailer shall be issued, without charge, a
18 permit to collect such tax. When so authorized, it shall be the
19 duty of such retailer to collect the tax upon all of the gross
20 charges for telecommunications in this State in the same
21 manner and subject to the same requirements as a retailer
22 maintaining a place of business within this State. The permit
23 may be revoked by the Department at its discretion.
24 (m) "Retailer maintaining a place of business in this
25 State", or any like term, means and includes any retailer
26 having or maintaining within this State, directly or by a
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1 subsidiary, an office, distribution facilities, transmission
2 facilities, sales office, warehouse or other place of
3 business, or any agent or other representative operating
4 within this State under the authority of the retailer or its
5 subsidiary, irrespective of whether such place of business or
6 agent or other representative is located here permanently or
7 temporarily, or whether such retailer or subsidiary is
8 licensed to do business in this State.
9 (n) "Service address" means the location of
10 telecommunications equipment from which the telecommunications
11 services are originated or at which telecommunications
12 services are received by a taxpayer. In the event this may not
13 be a defined location, as in the case of mobile phones, paging
14 systems, maritime systems, "service address" means the
15 customer's place of primary use as defined in the Mobile
16 Telecommunications Sourcing Conformity Act. For air-to-ground
17 systems and the like, "service address" shall mean the
18 location of a taxpayer's primary use of the telecommunications
19 equipment as defined by telephone number, authorization code,
20 or location in Illinois where bills are sent.
21 (o) "Prepaid telephone calling arrangements" mean the
22 right to exclusively purchase telephone or telecommunications
23 services that must be paid for in advance and enable the
24 origination of one or more intrastate, interstate, or
25 international telephone calls or other telecommunications
26 using an access number, an authorization code, or both,
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1 whether manually or electronically dialed, for which payment
2 to a retailer must be made in advance, provided that, unless
3 recharged, no further service is provided once that prepaid
4 amount of service has been consumed. Prepaid telephone calling
5 arrangements include the recharge of a prepaid calling
6 arrangement. For purposes of this subsection, "recharge" means
7 the purchase of additional prepaid telephone or
8 telecommunications services whether or not the purchaser
9 acquires a different access number or authorization code.
10 "Prepaid telephone calling arrangement" does not include an
11 arrangement whereby a customer purchases a payment card and
12 pursuant to which the service provider reflects the amount of
13 such purchase as a credit on an invoice issued to that customer
14 under an existing subscription plan.
15 (p) "9-8-8" means the universal telephone number within
16 United States for the purpose of the national suicide
17 prevention and mental health crisis hotline system operating
18 through the National Suicide Prevention Lifeline maintained by
19 the Assistant Secretary for Mental Health and Substance Use
20 under Section 520E-3 of the Public Health Service Act (42
21 U.S.C. 290bb-36c) and through the Veterans Crisis Line
22 maintained by the Secretary of Veterans Affairs under 38
23 U.S.C. 1720F(h).
24 (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
25 102-1125, eff. 2-3-23; 103-595, eff. 6-26-24; revised
26 10-21-24.)
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1 (35 ILCS 630/3) (from Ch. 120, par. 2003)
2 Sec. 3. Tax imposed; intrastate telecommunications.
3 (a) Until December 31, 1997, a tax is imposed upon the act
4 or privilege of originating or receiving intrastate
5 telecommunications by a person in this State at the rate of 5%
6 of the gross charge for such telecommunications purchased at
7 retail from a retailer by such person.
8 (b) Beginning January 1, 1998 and through June 30, 2025, a
9 tax is imposed upon the act or privilege of originating in this
10 State or receiving in this State intrastate telecommunications
11 by a person in this State at the rate of 7% of the gross charge
12 for such telecommunications purchased at retail from a
13 retailer by such person. However, such tax is not imposed on
14 the act or privilege to the extent such act or privilege may
15 not, under the Constitution and statutes of the United States,
16 be made the subject of taxation by the State.
17 (c) Beginning July 1, 2025, a tax is imposed upon the act
18 or privilege of originating in this State or receiving in this
19 State intrastate telecommunications by a person in this State
20 at the rate of 8.65% of the gross charge for such
21 telecommunications purchased at retail from a retailer by that
22 person. However, the tax is not imposed on the act or privilege
23 to the extent the act or privilege may not, under the
24 Constitution and statutes of the United States, be made the
25 subject of taxation by the State. The 1.65% increase in the
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1 rate from 7% to 8.65% under this amendatory Act of the 104th
2 General Assembly shall be designated as the statewide 9-8-8
3 surcharge and is established to support and enhance the 9-8-8
4 Suicide and Crisis Lifeline in compliance with the National
5 Suicide Hotline Designation Act of 2020 as codified in 47
6 U.S.C. 251 and 251a.
7 (d) Beginning January 1, 2001, prepaid telephone calling
8 arrangements shall not be considered telecommunications
9 subject to the tax imposed under this Act.
10 (Source: P.A. 90-548, eff. 12-4-97; 91-870, eff. 6-22-00.)
11 (35 ILCS 630/4) (from Ch. 120, par. 2004)
12 Sec. 4. Tax imposed; interstate telecommunications.
13 (a) Until December 31, 1997, a tax is imposed upon the act
14 or privilege of originating in this State or receiving in this
15 State interstate telecommunications by a person in this State
16 at the rate of 5% of the gross charge for such
17 telecommunications purchased at retail from a retailer by such
18 person.
19 (b) Beginning January 1, 1998 and through June 30, 2025, a
20 tax is imposed upon the act or privilege of originating in this
21 State or receiving in this State interstate telecommunications
22 by a person in this State at the rate of 7% of the gross charge
23 for such telecommunications purchased at retail from a
24 retailer by such person. To prevent actual multi-state
25 taxation of the act or privilege that is subject to taxation
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1 under this paragraph, any taxpayer, upon proof that that
2 taxpayer has paid a tax in another state on such event, shall
3 be allowed a credit against the tax imposed in this Section 4
4 to the extent of the amount of such tax properly due and paid
5 in such other state. However, such tax is not imposed on the
6 act or privilege to the extent such act or privilege may not,
7 under the Constitution and statutes of the United States, be
8 made the subject of taxation by the State.
9 (c) Beginning July 1, 2025, a tax is imposed upon the act
10 or privilege of originating in this State or receiving in this
11 State interstate telecommunications by a person in this State
12 at the rate of 8.65% of the gross charge for such
13 telecommunications purchased at retail from a retailer by that
14 person. To prevent actual multistate taxation of the act or
15 privilege that is subject to taxation under this paragraph,
16 any taxpayer, upon proof that the taxpayer has paid a tax in
17 another state on the event, shall be allowed a credit against
18 the tax imposed in this Section to the extent of the amount of
19 such tax properly due and paid in the other state. However,
20 such tax is not imposed on the act or privilege to the extent
21 the act or privilege may not, under the Constitution and
22 statutes of the United States, be made the subject of taxation
23 by the State. The 1.65% increase in the rate from 7% to 8.65%
24 under this amendatory Act of the 104th General Assembly shall
25 be designated as the statewide 9-8-8 surcharge and is
26 established to support and enhance the 9-8-8 Suicide and
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1 Crisis Lifeline in compliance with the National Suicide
2 Hotline Designation Act of 2020 as codified in 47 U.S.C. 251
3 and 251a.
4 (d) Beginning on January 1, 2001, prepaid telephone
5 calling arrangements shall not be considered
6 telecommunications subject to the tax imposed under this Act.
7 (Source: P.A. 90-548, eff. 12-4-97; 91-870, eff. 6-22-00.)
8 (35 ILCS 630/6) (from Ch. 120, par. 2006)
9 Sec. 6. Returns; payments; deposits.
10 (a) Except as provided hereinafter in this Section, on or
11 before the last day of each month, each retailer maintaining a
12 place of business in this State shall make a return to the
13 Department for the preceding calendar month, stating:
14 1. The retailer's His name;
15 2. The address of the his principal place of business,
16 or the address of the principal place of business (if that
17 is a different address) from which the retailer he engages
18 in the business of transmitting telecommunications;
19 3. Total amount of gross charges billed by the
20 retailer him during the preceding calendar month for
21 providing telecommunications during such calendar month;
22 4. Total amount received by the retailer him during
23 the preceding calendar month on credit extended;
24 5. Deductions allowed by law;
25 6. Gross charges which were billed by the retailer him
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1 during the preceding calendar month and upon the basis of
2 which the tax, including the surcharge, is imposed;
3 7. Amount of tax (computed upon Item 6);
4 8. Amount of the statewide 9-8-8 surcharge included in
5 item 7.
6 9. 8. Such other reasonable information as the
7 Department may require.
8 (b) Any taxpayer required to make payments under this
9 Section may make the payments by electronic funds transfer.
10 The Department shall adopt rules necessary to effectuate a
11 program of electronic funds transfer. Any taxpayer who has
12 average monthly tax billings due to the Department under this
13 Act and the Simplified Municipal Telecommunications Tax Act
14 that exceed $1,000 shall make all payments by electronic funds
15 transfer as required by rules of the Department and shall file
16 the return required by this Section by electronic means as
17 required by rules of the Department.
18 (c) Types of returns and filing deadlines. If the
19 retailer's average monthly tax billings due to the Department
20 under this Act and the Simplified Municipal Telecommunications
21 Tax Act do not exceed $1,000, the Department may authorize the
22 retailer's his returns to be filed on a quarter annual basis,
23 with the return for January, February and March of a given year
24 being due by April 30 of such year; with the return for April,
25 May and June of a given year being due by July 31st of such
26 year; with the return for July, August and September of a given
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1 year being due by October 31st of such year; and with the
2 return of October, November and December of a given year being
3 due by January 31st of the following year.
4 If the retailer is otherwise required to file a monthly or
5 quarterly return and if the retailer's average monthly tax
6 billings due to the Department under this Act and the
7 Simplified Municipal Telecommunications Tax Act do not exceed
8 $400, the Department may authorize the retailer's his or her
9 return to be filed on an annual basis, with the return for a
10 given year being due by January 31st of the following year.
11 Notwithstanding any other provision of this Article
12 containing the time within which a retailer may file a his
13 return, in the case of any retailer who ceases to engage in a
14 kind of business which makes the retailer him responsible for
15 filing returns under this Article, such retailer shall file a
16 final return under this Article with the Department not more
17 than one month after discontinuing such business.
18 In making such return, the retailer shall determine the
19 value of any consideration other than money received by the
20 retailer him and he shall include such value in the his return.
21 Such determination shall be subject to review and revision by
22 the Department in the manner hereinafter provided for the
23 correction of returns.
24 (d) Payment and discount. Each retailer whose average
25 monthly liability to the Department under this Article and the
26 Simplified Municipal Telecommunications Tax Act was $25,000 or
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1 more during the preceding calendar year, excluding the month
2 of highest liability and the month of lowest liability in such
3 calendar year, and who is not operated by a unit of local
4 government, shall make estimated payments to the Department on
5 or before the 7th, 15th, 22nd and last day of the month during
6 which tax collection liability to the Department is incurred
7 in an amount not less than the lower of either 22.5% of the
8 retailer's actual tax collections for the month or 25% of the
9 retailer's actual tax collections for the same calendar month
10 of the preceding year. The amount of such quarter monthly
11 payments shall be credited against the final liability of the
12 retailer's return for that month. Any outstanding credit,
13 approved by the Department, arising from the retailer's
14 overpayment of its final liability for any month may be
15 applied to reduce the amount of any subsequent quarter monthly
16 payment or credited against the final liability of the
17 retailer's return for any subsequent month. If any quarter
18 monthly payment is not paid at the time or in the amount
19 required by this Section, the retailer shall be liable for
20 penalty and interest on the difference between the minimum
21 amount due as a payment and the amount of such payment actually
22 and timely paid, except insofar as the retailer has previously
23 made payments for that month to the Department in excess of the
24 minimum payments previously due.
25 The retailer making the return herein provided for shall,
26 at the time of making such return, pay to the Department the
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1 amount of tax herein imposed, less a discount of 1% which is
2 allowed to reimburse the retailer for the expenses incurred in
3 keeping records, billing the customer, preparing and filing
4 returns, remitting the tax, and supplying data to the
5 Department upon request. No discount may be claimed by a
6 retailer on returns not timely filed and for taxes not timely
7 remitted.
8 If any payment provided for in this Section exceeds the
9 retailer's liabilities under this Act, as shown on an original
10 return, the Department may authorize the retailer to credit
11 such excess payment against liability subsequently to be
12 remitted to the Department under this Act, in accordance with
13 reasonable rules adopted by the Department. If the Department
14 subsequently determines that all or any part of the credit
15 taken was not actually due to the retailer, the retailer's
16 discount shall be reduced by an amount equal to the difference
17 between the discount as applied to the credit taken and that
18 actually due, and that retailer shall be liable for penalties
19 and interest on such difference.
20 (e) Deposits.
21 (1) On and after the effective date of this Article of
22 1985 and through July 31, 2025, of the moneys received by
23 the Department of Revenue pursuant to this Article, other
24 than moneys received pursuant to the additional taxes
25 imposed by Public Act 90-548:
26 (A) (1) $1,000,000 shall be paid each month into
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1 the Common School Fund;
2 (B) (2) beginning on the first day of the first
3 calendar month to occur on or after the effective date
4 of this amendatory Act of the 98th General Assembly,
5 an amount equal to 1/12 of 5% of the cash receipts
6 collected during the preceding fiscal year by the
7 Audit Bureau of the Department from the tax under this
8 Act and the Simplified Municipal Telecommunications
9 Tax Act shall be paid each month into the Tax
10 Compliance and Administration Fund; those moneys shall
11 be used, subject to appropriation, to fund additional
12 auditors and compliance personnel at the Department of
13 Revenue; and
14 (C) (3) the remainder shall be deposited into the
15 General Revenue Fund.
16 (2) On and after February 1, 1998 and through July 31,
17 2025, however, of the moneys received by the Department of
18 Revenue pursuant to the additional taxes imposed by Public
19 Act 90-548, one-half shall be deposited into the School
20 Infrastructure Fund and one-half shall be deposited into
21 the Common School Fund. On and after the effective date of
22 this amendatory Act of the 91st General Assembly, if in
23 any fiscal year the total of the moneys deposited into the
24 School Infrastructure Fund under this Act is less than the
25 total of the moneys deposited into that Fund from the
26 additional taxes imposed by Public Act 90-548 during
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1 fiscal year 1999, then, as soon as possible after the
2 close of the fiscal year, the Comptroller shall order
3 transferred and the Treasurer shall transfer from the
4 General Revenue Fund to the School Infrastructure Fund an
5 amount equal to the difference between the fiscal year
6 total deposits and the total amount deposited into the
7 Fund in fiscal year 1999.
8 (3) Beginning August 1, 2025, moneys collected under
9 this Act by the Department shall be deposited as follows:
10 (A) 57.7% into the General Revenue Fund, other
11 than:
12 (i) $1,000,000 shall be paid each month into
13 the Common School Fund; and
14 (ii) an amount equal to 1/12 of 5% of the cash
15 receipts collected during the preceding fiscal
16 year by the Audit Bureau of the Department from
17 the tax under this Act and the Simplified
18 Municipal Telecommunications Tax Act shall be paid
19 each month into the Tax Compliance and
20 Administration Fund; those moneys shall be used,
21 subject to appropriation, to fund additional
22 auditors and compliance personnel at the
23 Department of Revenue;
24 (B) 11.6% into the Common School Fund;
25 (C) 11.6% into the School Infrastructure Fund; and
26 (D) 19.1% into the Statewide 9-8-8 Trust Fund.
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1 (Source: P.A. 100-1171, eff. 1-4-19.)
2 ARTICLE 25
3 Section 25-5. The Use Tax Act is amended by changing
4 Sections 2, 2d, and 22 as follows:
5 (35 ILCS 105/2) (from Ch. 120, par. 439.2)
6 Sec. 2. Definitions. As used in this Act:
7 "Use" means the exercise by any person of any right or
8 power over tangible personal property incident to the
9 ownership of that property, or, on and after January 1, 2025,
10 incident to the possession or control of, the right to possess
11 or control, or a license to use that property through a lease,
12 except that it does not include the sale of such property in
13 any form as tangible personal property in the regular course
14 of business to the extent that such property is not first
15 subjected to a use for which it was purchased, and does not
16 include the use of such property by its owner for
17 demonstration purposes: Provided that the property purchased
18 is deemed to be purchased for the purpose of resale, despite
19 first being used, to the extent to which it is resold as an
20 ingredient of an intentionally produced product or by-product
21 of manufacturing. "Use" does not mean the demonstration use or
22 interim use of tangible personal property by a retailer before
23 he sells that tangible personal property. On and after January
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1 1, 2025, the lease of tangible personal property to a lessee by
2 a retailer who is subject to tax on lease receipts under Public
3 Act 103-592 this amendatory Act of the 103rd General Assembly
4 does not qualify as demonstration use or interim use of that
5 property. For watercraft or aircraft, if the period of
6 demonstration use or interim use by the retailer exceeds 18
7 months, the retailer shall pay on the retailers' original cost
8 price the tax imposed by this Act, and no credit for that tax
9 is permitted if the watercraft or aircraft is subsequently
10 sold by the retailer. "Use" does not mean the physical
11 incorporation of tangible personal property, to the extent not
12 first subjected to a use for which it was purchased, as an
13 ingredient or constituent, into other tangible personal
14 property (a) which is sold in the regular course of business or
15 (b) which the person incorporating such ingredient or
16 constituent therein has undertaken at the time of such
17 purchase to cause to be transported in interstate commerce to
18 destinations outside the State of Illinois: Provided that the
19 property purchased is deemed to be purchased for the purpose
20 of resale, despite first being used, to the extent to which it
21 is resold as an ingredient of an intentionally produced
22 product or by-product of manufacturing.
23 "Lease" means a transfer of the possession or control of,
24 the right to possess or control, or a license to use, but not
25 title to, tangible personal property for a fixed or
26 indeterminate term for consideration, regardless of the name
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1 by which the transaction is called. "Lease" does not include a
2 lease entered into merely as a security agreement that does
3 not involve a transfer of possession or control from the
4 lessor to the lessee.
5 On and after January 1, 2025, the term "sale", when used in
6 this Act, includes a lease.
7 "Watercraft" means a Class 2, Class 3, or Class 4
8 watercraft as defined in Section 3-2 of the Boat Registration
9 and Safety Act, a personal watercraft, or any boat equipped
10 with an inboard motor.
11 "Purchase at retail" means the acquisition of the
12 ownership of, the title to, the possession or control of, the
13 right to possess or control, or a license to use, tangible
14 personal property through a sale at retail.
15 "Purchaser" means anyone who, through a sale at retail,
16 acquires the ownership of, the title to, the possession or
17 control of, the right to possess or control, or a license to
18 use, tangible personal property for a valuable consideration.
19 "Sale at retail" means any transfer of the ownership of or
20 title to tangible personal property to a purchaser, for the
21 purpose of use, and not for the purpose of resale in any form
22 as tangible personal property to the extent not first
23 subjected to a use for which it was purchased, for a valuable
24 consideration: Provided that the property purchased is deemed
25 to be purchased for the purpose of resale, despite first being
26 used, to the extent to which it is resold as an ingredient of
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1 an intentionally produced product or by-product of
2 manufacturing. For this purpose, slag produced as an incident
3 to manufacturing pig iron or steel and sold is considered to be
4 an intentionally produced by-product of manufacturing. "Sale
5 at retail" includes any such transfer made for resale unless
6 made in compliance with Section 2c of the Retailers'
7 Occupation Tax Act, as incorporated by reference into Section
8 12 of this Act. Transactions whereby the possession of the
9 property is transferred but the seller retains the title as
10 security for payment of the selling price are sales.
11 "Sale at retail" shall also be construed to include any
12 Illinois florist's sales transaction in which the purchase
13 order is received in Illinois by a florist and the sale is for
14 use or consumption, but the Illinois florist has a florist in
15 another state deliver the property to the purchaser or the
16 purchaser's donee in such other state.
17 Nonreusable tangible personal property that is used by
18 persons engaged in the business of operating a restaurant,
19 cafeteria, or drive-in is a sale for resale when it is
20 transferred to customers in the ordinary course of business as
21 part of the sale of food or beverages and is used to deliver,
22 package, or consume food or beverages, regardless of where
23 consumption of the food or beverages occurs. Examples of those
24 items include, but are not limited to nonreusable, paper and
25 plastic cups, plates, baskets, boxes, sleeves, buckets or
26 other containers, utensils, straws, placemats, napkins, doggie
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1 bags, and wrapping or packaging materials that are transferred
2 to customers as part of the sale of food or beverages in the
3 ordinary course of business.
4 The purchase, employment, and transfer of such tangible
5 personal property as newsprint and ink for the primary purpose
6 of conveying news (with or without other information) is not a
7 purchase, use, or sale of tangible personal property.
8 "Selling price" means the consideration for a sale valued
9 in money whether received in money or otherwise, including
10 cash, credits, property other than as hereinafter provided,
11 and services, but, prior to January 1, 2020 and beginning
12 again on January 1, 2022, not including the value of or credit
13 given for traded-in tangible personal property where the item
14 that is traded-in is of like kind and character as that which
15 is being sold; beginning January 1, 2020 and until January 1,
16 2022, "selling price" includes the portion of the value of or
17 credit given for traded-in motor vehicles of the First
18 Division as defined in Section 1-146 of the Illinois Vehicle
19 Code of like kind and character as that which is being sold
20 that exceeds $10,000. "Selling price" shall be determined
21 without any deduction on account of the cost of the property
22 sold, the cost of materials used, labor or service cost, or any
23 other expense whatsoever, but does not include interest or
24 finance charges which appear as separate items on the bill of
25 sale or sales contract nor charges that are added to prices by
26 sellers on account of the seller's tax liability under the
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1 Retailers' Occupation Tax Act, or on account of the seller's
2 duty to collect, from the purchaser, the tax that is imposed by
3 this Act, or, except as otherwise provided with respect to any
4 cigarette tax imposed by a home rule unit, on account of the
5 seller's tax liability under any local occupation tax
6 administered by the Department, or, except as otherwise
7 provided with respect to any cigarette tax imposed by a home
8 rule unit on account of the seller's duty to collect, from the
9 purchasers, the tax that is imposed under any local use tax
10 administered by the Department. Effective December 1, 1985,
11 "selling price" shall include charges that are added to prices
12 by sellers on account of the seller's tax liability under the
13 Cigarette Tax Act, on account of the seller's duty to collect,
14 from the purchaser, the tax imposed under the Cigarette Use
15 Tax Act, and on account of the seller's duty to collect, from
16 the purchaser, any cigarette tax imposed by a home rule unit.
17 The provisions of this paragraph, which provides only for
18 an alternative meaning of "selling price" with respect to the
19 sale of certain motor vehicles incident to the contemporaneous
20 lease of those motor vehicles, continue in effect and are not
21 changed by the tax on leases implemented by Public Act 103-592
22 this amendatory Act of the 103rd General Assembly.
23 Notwithstanding any law to the contrary, for any motor
24 vehicle, as defined in Section 1-146 of the Vehicle Code, that
25 is sold on or after January 1, 2015 for the purpose of leasing
26 the vehicle for a defined period that is longer than one year
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1 and (1) is a motor vehicle of the second division that: (A) is
2 a self-contained motor vehicle designed or permanently
3 converted to provide living quarters for recreational,
4 camping, or travel use, with direct walk through access to the
5 living quarters from the driver's seat; (B) is of the van
6 configuration designed for the transportation of not less than
7 7 nor more than 16 passengers; or (C) has a gross vehicle
8 weight rating of 8,000 pounds or less or (2) is a motor vehicle
9 of the first division, "selling price" or "amount of sale"
10 means the consideration received by the lessor pursuant to the
11 lease contract, including amounts due at lease signing and all
12 monthly or other regular payments charged over the term of the
13 lease. Also included in the selling price is any amount
14 received by the lessor from the lessee for the leased vehicle
15 that is not calculated at the time the lease is executed,
16 including, but not limited to, excess mileage charges and
17 charges for excess wear and tear. For sales that occur in
18 Illinois, with respect to any amount received by the lessor
19 from the lessee for the leased vehicle that is not calculated
20 at the time the lease is executed, the lessor who purchased the
21 motor vehicle does not incur the tax imposed by the Use Tax Act
22 on those amounts, and the retailer who makes the retail sale of
23 the motor vehicle to the lessor is not required to collect the
24 tax imposed by this Act or to pay the tax imposed by the
25 Retailers' Occupation Tax Act on those amounts. However, the
26 lessor who purchased the motor vehicle assumes the liability
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1 for reporting and paying the tax on those amounts directly to
2 the Department in the same form (Illinois Retailers'
3 Occupation Tax, and local retailers' occupation taxes, if
4 applicable) in which the retailer would have reported and paid
5 such tax if the retailer had accounted for the tax to the
6 Department. For amounts received by the lessor from the lessee
7 that are not calculated at the time the lease is executed, the
8 lessor must file the return and pay the tax to the Department
9 by the due date otherwise required by this Act for returns
10 other than transaction returns. If the retailer is entitled
11 under this Act to a discount for collecting and remitting the
12 tax imposed under this Act to the Department with respect to
13 the sale of the motor vehicle to the lessor, then the right to
14 the discount provided in this Act shall be transferred to the
15 lessor with respect to the tax paid by the lessor for any
16 amount received by the lessor from the lessee for the leased
17 vehicle that is not calculated at the time the lease is
18 executed; provided that the discount is only allowed if the
19 return is timely filed and for amounts timely paid. The
20 "selling price" of a motor vehicle that is sold on or after
21 January 1, 2015 for the purpose of leasing for a defined period
22 of longer than one year shall not be reduced by the value of or
23 credit given for traded-in tangible personal property owned by
24 the lessor, nor shall it be reduced by the value of or credit
25 given for traded-in tangible personal property owned by the
26 lessee, regardless of whether the trade-in value thereof is
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1 assigned by the lessee to the lessor. In the case of a motor
2 vehicle that is sold for the purpose of leasing for a defined
3 period of longer than one year, the sale occurs at the time of
4 the delivery of the vehicle, regardless of the due date of any
5 lease payments. A lessor who incurs a Retailers' Occupation
6 Tax liability on the sale of a motor vehicle coming off lease
7 may not take a credit against that liability for the Use Tax
8 the lessor paid upon the purchase of the motor vehicle (or for
9 any tax the lessor paid with respect to any amount received by
10 the lessor from the lessee for the leased vehicle that was not
11 calculated at the time the lease was executed) if the selling
12 price of the motor vehicle at the time of purchase was
13 calculated using the definition of "selling price" as defined
14 in this paragraph. Notwithstanding any other provision of this
15 Act to the contrary, lessors shall file all returns and make
16 all payments required under this paragraph to the Department
17 by electronic means in the manner and form as required by the
18 Department. This paragraph does not apply to leases of motor
19 vehicles for which, at the time the lease is entered into, the
20 term of the lease is not a defined period, including leases
21 with a defined initial period with the option to continue the
22 lease on a month-to-month or other basis beyond the initial
23 defined period.
24 The phrase "like kind and character" shall be liberally
25 construed (including, but not limited to, any form of motor
26 vehicle for any form of motor vehicle, or any kind of farm or
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1 agricultural implement for any other kind of farm or
2 agricultural implement), while not including a kind of item
3 which, if sold at retail by that retailer, would be exempt from
4 retailers' occupation tax and use tax as an isolated or
5 occasional sale.
6 "Department" means the Department of Revenue.
7 "Person" means any natural individual, firm, partnership,
8 association, joint stock company, joint adventure, public or
9 private corporation, limited liability company, or a receiver,
10 executor, trustee, guardian, or other representative appointed
11 by order of any court.
12 "Retailer" means and includes every person engaged in the
13 business of making sales, including, on and after January 1,
14 2025, leases, at retail as defined in this Section. With
15 respect to leases, a "retailer" also means a "lessor", except
16 as otherwise provided in this Act.
17 A person who holds himself or herself out as being engaged
18 (or who habitually engages) in selling tangible personal
19 property at retail is a retailer hereunder with respect to
20 such sales (and not primarily in a service occupation)
21 notwithstanding the fact that such person designs and produces
22 such tangible personal property on special order for the
23 purchaser and in such a way as to render the property of value
24 only to such purchaser, if such tangible personal property so
25 produced on special order serves substantially the same
26 function as stock or standard items of tangible personal
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1 property that are sold at retail.
2 A person whose activities are organized and conducted
3 primarily as a not-for-profit service enterprise, and who
4 engages in selling tangible personal property at retail
5 (whether to the public or merely to members and their guests)
6 is a retailer with respect to such transactions, excepting
7 only a person organized and operated exclusively for
8 charitable, religious or educational purposes either (1), to
9 the extent of sales by such person to its members, students,
10 patients, or inmates of tangible personal property to be used
11 primarily for the purposes of such person, or (2), to the
12 extent of sales by such person of tangible personal property
13 which is not sold or offered for sale by persons organized for
14 profit. The selling of school books and school supplies by
15 schools at retail to students is not "primarily for the
16 purposes of" the school which does such selling. This
17 paragraph does not apply to nor subject to taxation occasional
18 dinners, social, or similar activities of a person organized
19 and operated exclusively for charitable, religious, or
20 educational purposes, whether or not such activities are open
21 to the public.
22 A person who is the recipient of a grant or contract under
23 Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
24 serves meals to participants in the federal Nutrition Program
25 for the Elderly in return for contributions established in
26 amount by the individual participant pursuant to a schedule of
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1 suggested fees as provided for in the federal Act is not a
2 retailer under this Act with respect to such transactions.
3 Persons who engage in the business of transferring
4 tangible personal property upon the redemption of trading
5 stamps are retailers hereunder when engaged in such business.
6 The isolated or occasional sale of tangible personal
7 property at retail by a person who does not hold himself out as
8 being engaged (or who does not habitually engage) in selling
9 such tangible personal property at retail or a sale through a
10 bulk vending machine does not make such person a retailer
11 hereunder. However, any person who is engaged in a business
12 which is not subject to the tax imposed by the Retailers'
13 Occupation Tax Act because of involving the sale of or a
14 contract to sell real estate or a construction contract to
15 improve real estate, but who, in the course of conducting such
16 business, transfers tangible personal property to users or
17 consumers in the finished form in which it was purchased, and
18 which does not become real estate, under any provision of a
19 construction contract or real estate sale or real estate sales
20 agreement entered into with some other person arising out of
21 or because of such nontaxable business, is a retailer to the
22 extent of the value of the tangible personal property so
23 transferred. If, in such transaction, a separate charge is
24 made for the tangible personal property so transferred, the
25 value of such property, for the purposes of this Act, is the
26 amount so separately charged, but not less than the cost of
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1 such property to the transferor; if no separate charge is
2 made, the value of such property, for the purposes of this Act,
3 is the cost to the transferor of such tangible personal
4 property.
5 "Retailer maintaining a place of business in this State",
6 or any like term, means and includes any of the following
7 retailers:
8 (1) A retailer having or maintaining within this
9 State, directly or by a subsidiary, an office,
10 distribution house, sales house, warehouse, or other place
11 of business, or any agent or other representative
12 operating within this State under the authority of the
13 retailer or its subsidiary, irrespective of whether such
14 place of business or agent or other representative is
15 located here permanently or temporarily, or whether such
16 retailer or subsidiary is licensed to do business in this
17 State. However, the ownership of property that is located
18 at the premises of a printer with which the retailer has
19 contracted for printing and that consists of the final
20 printed product, property that becomes a part of the final
21 printed product, or copy from which the printed product is
22 produced shall not result in the retailer being deemed to
23 have or maintain an office, distribution house, sales
24 house, warehouse, or other place of business within this
25 State.
26 (1.1) A retailer having a contract with a person
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1 located in this State under which the person, for a
2 commission or other consideration based upon the sale of
3 tangible personal property by the retailer, directly or
4 indirectly refers potential customers to the retailer by
5 providing to the potential customers a promotional code or
6 other mechanism that allows the retailer to track
7 purchases referred by such persons. Examples of mechanisms
8 that allow the retailer to track purchases referred by
9 such persons include, but are not limited to, the use of a
10 link on the person's Internet website, promotional codes
11 distributed through the person's hand-delivered or mailed
12 material, and promotional codes distributed by the person
13 through radio or other broadcast media. The provisions of
14 this paragraph (1.1) shall apply only if the cumulative
15 gross receipts from sales of tangible personal property by
16 the retailer to customers who are referred to the retailer
17 by all persons in this State under such contracts exceed
18 $10,000 during the preceding 4 quarterly periods ending on
19 the last day of March, June, September, and December. A
20 retailer meeting the requirements of this paragraph (1.1)
21 shall be presumed to be maintaining a place of business in
22 this State but may rebut this presumption by submitting
23 proof that the referrals or other activities pursued
24 within this State by such persons were not sufficient to
25 meet the nexus standards of the United States Constitution
26 during the preceding 4 quarterly periods.
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1 (1.2) Beginning July 1, 2011, a retailer having a
2 contract with a person located in this State under which:
3 (A) the retailer sells the same or substantially
4 similar line of products as the person located in this
5 State and does so using an identical or substantially
6 similar name, trade name, or trademark as the person
7 located in this State; and
8 (B) the retailer provides a commission or other
9 consideration to the person located in this State
10 based upon the sale of tangible personal property by
11 the retailer.
12 The provisions of this paragraph (1.2) shall apply
13 only if the cumulative gross receipts from sales of
14 tangible personal property by the retailer to customers in
15 this State under all such contracts exceed $10,000 during
16 the preceding 4 quarterly periods ending on the last day
17 of March, June, September, and December.
18 (2) (Blank).
19 (3) (Blank).
20 (4) (Blank).
21 (5) (Blank).
22 (6) (Blank).
23 (7) (Blank).
24 (8) (Blank).
25 (9) Beginning October 1, 2018 and through December 31,
26 2025, a retailer making sales of tangible personal
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1 property to purchasers in Illinois from outside of
2 Illinois if:
3 (A) the cumulative gross receipts from sales of
4 tangible personal property to purchasers in Illinois
5 are $100,000 or more; or
6 (B) the retailer enters into 200 or more separate
7 transactions for the sale of tangible personal
8 property to purchasers in Illinois.
9 The retailer shall determine on a quarterly basis,
10 ending on the last day of March, June, September, and
11 December, whether the retailer he or she meets the
12 threshold criteria of either subparagraph (A) or (B) of
13 this paragraph (9) for the preceding 12-month period. If
14 the retailer meets the threshold of either subparagraph
15 (A) or (B) for a 12-month period, the retailer he or she is
16 considered a retailer maintaining a place of business in
17 this State and is required to collect and remit the tax
18 imposed under this Act and file returns for one year. At
19 the end of that one-year period, the retailer shall
20 determine whether it has he or she met the threshold of
21 either subparagraph (A) or (B) during the preceding
22 12-month period. If the retailer met the threshold
23 criteria in either subparagraph (A) or (B) for the
24 preceding 12-month period, the retailer he or she is
25 considered a retailer maintaining a place of business in
26 this State and is required to collect and remit the tax
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1 imposed under this Act and file returns for the subsequent
2 year. If at the end of a one-year period a retailer that
3 was required to collect and remit the tax imposed under
4 this Act determines that it he or she did not meet the
5 threshold in either subparagraph (A) or (B) during the
6 preceding 12-month period, the retailer shall subsequently
7 determine on a quarterly basis, ending on the last day of
8 March, June, September, and December, whether the retailer
9 he or she meets the threshold of either subparagraph (A)
10 or (B) for the preceding 12-month period.
11 (9.1) Beginning January 1, 2026, a retailer making
12 sales of tangible personal property to purchasers in
13 Illinois from outside of Illinois if the cumulative gross
14 receipts from sales of tangible personal property to
15 purchasers in Illinois are $100,000 or more.
16 The retailer shall determine on a quarterly basis,
17 ending on the last day of March, June, September, and
18 December, whether the retailer meets the threshold in this
19 paragraph (9.1) for the preceding 12-month period. If the
20 retailer meets the threshold for a 12-month period, the
21 retailer is considered a retailer maintaining a place of
22 business in this State and is required to collect and
23 remit the tax imposed under this Act and file returns for
24 one year. At the end of the one-year period, the retailer
25 shall determine whether the retailer met the threshold
26 during the preceding 12-month period. If the retailer met
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1 the threshold for the preceding 12-month period, the
2 retailer is considered a retailer maintaining a place of
3 business in this State and is required to collect and
4 remit the tax imposed under this Act and file returns for
5 the subsequent year. If at the end of a one-year period a
6 retailer that was required to collect and remit the tax
7 imposed under this Act determines that the retailer did
8 not meet the threshold during the preceding 12-month
9 period, the retailer shall subsequently determine on a
10 quarterly basis, ending on the last day of March, June,
11 September, and December, whether the retailer meets the
12 threshold for the preceding 12-month period.
13 Beginning January 1, 2020, neither the gross receipts
14 from nor the number of separate transactions for sales of
15 tangible personal property to purchasers in Illinois that
16 a retailer makes through a marketplace facilitator and for
17 which the retailer has received a certification from the
18 marketplace facilitator pursuant to Section 2d of this Act
19 shall be included for purposes of determining whether the
20 retailer he or she has met the thresholds of paragraphs
21 this paragraph (9) or (9.1).
22 (10) Beginning January 1, 2020, a marketplace
23 facilitator that meets a threshold set forth in subsection
24 (b) or (b-5) of Section 2d of this Act.
25 "Bulk vending machine" means a vending machine, containing
26 unsorted confections, nuts, toys, or other items designed
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1 primarily to be used or played with by children which, when a
2 coin or coins of a denomination not larger than $0.50 are
3 inserted, are dispensed in equal portions, at random and
4 without selection by the customer.
5 (Source: P.A. 102-353, eff. 1-1-22; 103-592, eff. 1-1-25;
6 revised 11-22-24.)
7 (35 ILCS 105/2d)
8 Sec. 2d. Marketplace facilitators and marketplace sellers.
9 (a) As used in this Section:
10 "Affiliate" means a person that, with respect to another
11 person: (i) has a direct or indirect ownership interest of
12 more than 5 percent in the other person; or (ii) is related to
13 the other person because a third person, or a group of third
14 persons who are affiliated with each other as defined in this
15 subsection, holds a direct or indirect ownership interest of
16 more than 5% in the related person.
17 "Marketplace" means a physical or electronic place, forum,
18 platform, application, or other method by which a marketplace
19 seller sells or offers to sell items.
20 "Marketplace facilitator" means a person who, pursuant to
21 an agreement with an unrelated third-party marketplace seller,
22 directly or indirectly through one or more affiliates
23 facilitates a retail sale by an unrelated third party
24 marketplace seller by:
25 (1) listing or advertising for sale by the marketplace
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1 seller in a marketplace, tangible personal property that
2 is subject to tax under this Act; and
3 (2) either directly or indirectly, through agreements
4 or arrangements with third parties, collecting payment
5 from the customer and transmitting that payment to the
6 marketplace seller regardless of whether the marketplace
7 facilitator receives compensation or other consideration
8 in exchange for its services.
9 "Marketplace seller" means a person that sells or offers
10 to sell tangible personal property through a marketplace
11 operated by an unrelated third-party marketplace facilitator.
12 (b) Beginning on January 1, 2020 and through December 31,
13 2025, a marketplace facilitator who meets either of the
14 following thresholds is considered the retailer for each sale
15 of tangible personal property made through its marketplace:
16 (1) the cumulative gross receipts from sales of
17 tangible personal property to purchasers in Illinois by
18 the marketplace facilitator and by marketplace sellers
19 selling through the marketplace are $100,000 or more; or
20 (2) the marketplace facilitator and marketplace
21 sellers selling through the marketplace cumulatively enter
22 into 200 or more separate transactions for the sale of
23 tangible personal property to purchasers in Illinois.
24 A marketplace facilitator shall determine on a quarterly
25 basis, ending on the last day of March, June, September, and
26 December, whether the marketplace facilitator he or she meets
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1 the threshold of either paragraph (1) or (2) of this
2 subsection (b) for the preceding 12-month period. If the
3 marketplace facilitator meets the threshold of either
4 paragraph (1) or (2) for a 12-month period, the marketplace
5 facilitator he or she is considered a retailer maintaining a
6 place of business in this State and is required to collect and
7 remit the tax imposed under this Act and file returns for one
8 year. At the end of that one-year period, the marketplace
9 facilitator shall determine whether the marketplace
10 facilitator met the threshold of either paragraph (1) or (2)
11 during the preceding 12-month period. If the marketplace
12 facilitator met the threshold in either paragraph (1) or (2)
13 for the preceding 12-month period, the marketplace facilitator
14 he or she is considered a retailer maintaining a place of
15 business in this State and is required to collect and remit the
16 tax imposed under this Act and file returns for the subsequent
17 year. If at the end of a one-year period a marketplace
18 facilitator that was required to collect and remit the tax
19 imposed under this Act determines that the marketplace
20 facilitator he or she did not meet the threshold in either
21 paragraph (1) or (2) during the preceding 12-month period, the
22 marketplace facilitator shall subsequently determine on a
23 quarterly basis, ending on the last day of March, June,
24 September, and December, whether the marketplace facilitator
25 he or she meets the threshold of either paragraph (1) or (2)
26 for the preceding 12-month period.
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1 (b-5) Beginning on January 1, 2026, a marketplace
2 facilitator whose cumulative gross receipts from sales of
3 tangible personal property to purchasers in Illinois by the
4 marketplace facilitator and by marketplace sellers selling
5 through the marketplace are $100,000 or more is considered the
6 retailer for each sale of tangible personal property made
7 through its marketplace.
8 A marketplace facilitator shall determine on a quarterly
9 basis, ending on the last day of March, June, September, and
10 December, whether the marketplace facilitator meets the
11 threshold in this subsection (b-5) for the preceding 12-month
12 period. If the marketplace facilitator meets the threshold for
13 a 12-month period, the marketplace facilitator is considered a
14 retailer maintaining a place of business in this State and is
15 required to collect and remit the tax imposed under this Act
16 and file returns for one year. At the end of the one-year
17 period, the marketplace facilitator shall determine whether
18 the marketplace facilitator met the threshold during the
19 preceding 12-month period. If the marketplace facilitator met
20 the threshold for the preceding 12-month period, the
21 marketplace facilitator is considered a retailer maintaining a
22 place of business in this State and is required to collect and
23 remit the tax imposed under this Act and file returns for the
24 subsequent year. If at the end of a one-year period a
25 marketplace facilitator that was required to collect and remit
26 the tax imposed under this Act determines that the marketplace
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1 facilitator did not meet the threshold during the preceding
2 12-month period, the marketplace facilitator shall
3 subsequently determine on a quarterly basis, ending on the
4 last day of March, June, September, and December, whether the
5 marketplace facilitator meets the threshold for the preceding
6 12-month period.
7 (c) Beginning on January 1, 2020 a marketplace facilitator
8 considered to be the retailer pursuant to subsection (b) or
9 (b-5) of this Section is considered the retailer with respect
10 to each sale made through its marketplace and is liable for
11 collecting and remitting the tax under this Act on all such
12 sales. The marketplace facilitator who is considered to be the
13 retailer under subsection (b) or (b-5) for sales made through
14 its marketplace has all the rights and duties, and is required
15 to comply with the same requirements and procedures, as all
16 other retailers maintaining a place of business in this State
17 who are registered or who are required to be registered to
18 collect and remit the tax imposed by this Act with respect to
19 such sales.
20 (d) A marketplace facilitator shall:
21 (1) certify to each marketplace seller that the
22 marketplace facilitator assumes the rights and duties of a
23 retailer under this Act with respect to sales made by the
24 marketplace seller through the marketplace; and
25 (2) collect taxes imposed by this Act as required by
26 Section 3-45 of this Act for sales made through the
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1 marketplace.
2 (e) A marketplace seller shall retain books and records
3 for all sales made through a marketplace in accordance with
4 the requirements of Section 11.
5 (f) A marketplace seller shall furnish to the marketplace
6 facilitator information that is necessary for the marketplace
7 facilitator to correctly collect and remit taxes for a retail
8 sale. The information may include a certification that an item
9 being sold is taxable, not taxable, exempt from taxation, or
10 taxable at a specified rate. A marketplace seller shall be
11 held harmless for liability for the tax imposed under this Act
12 when a marketplace facilitator fails to correctly collect and
13 remit tax after having been provided with information by a
14 marketplace seller to correctly collect and remit taxes
15 imposed under this Act.
16 (g) If the marketplace facilitator demonstrates to the
17 satisfaction of the Department that its failure to correctly
18 collect and remit tax on a retail sale resulted from the
19 marketplace facilitator's good faith reliance on incorrect or
20 insufficient information provided by a marketplace seller, it
21 shall be relieved of liability for the tax on that retail sale.
22 In this case, a marketplace seller is liable for any resulting
23 tax due.
24 (h) (Blank).
25 (i) This Section does not affect the tax liability of a
26 purchaser under this Act.
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1 (j) (Blank).
2 (k) A marketplace facilitator required to collect taxes
3 imposed under this Section and this Act on retail sales made
4 through its marketplace shall be liable to the Department for
5 such taxes, except when the marketplace facilitator is
6 relieved of the duty to remit such taxes by virtue of having
7 paid to the Department taxes imposed by the Retailers'
8 Occupation Tax Act upon his or her gross receipts from the same
9 transactions.
10 (l) If, for any reason, the Department is prohibited from
11 enforcing the marketplace facilitator's duty under this Act to
12 collect and remit taxes pursuant to this Section, the duty to
13 collect and remit such taxes reverts to the marketplace seller
14 that is a retailer maintaining a place of business in this
15 State pursuant to Section 2.
16 (m) Nothing in this Section affects the obligation of any
17 consumer to remit use tax for any taxable transaction for
18 which a certified service provider acting on behalf of a
19 remote retailer or a marketplace facilitator does not collect
20 and remit the appropriate tax.
21 (Source: P.A. 101-9, eff. 6-5-19; 101-604, eff. 1-1-20.)
22 (35 ILCS 105/22) (from Ch. 120, par. 439.22)
23 Sec. 22. If it is determined that the Department should
24 issue a credit or refund under this Act, the Department may
25 first apply the amount thereof against any amount of tax or
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1 penalty or interest due hereunder, or under the Retailers'
2 Occupation Tax Act, the Service Occupation Tax Act, the
3 Service Use Tax Act, or any local occupation or use tax
4 administered by the Department, Section 4 of the Water
5 Commission Act of 1985, subsections (b), (c) and (d) of
6 Section 5.01 of the Local Mass Transit District Act, or
7 subsections (e), (f) and (g) of Section 4.03 of the Regional
8 Transportation Authority Act, from the person entitled to such
9 credit or refund. For this purpose, if proceedings are pending
10 to determine whether or not any tax or penalty or interest is
11 due under this Act or under the Retailers' Occupation Tax Act,
12 the Service Occupation Tax Act, the Service Use Tax Act, or any
13 local occupation or use tax administered by the Department,
14 Section 4 of the Water Commission Act of 1985, subsections
15 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
16 District Act, or subsections (e), (f) and (g) of Section 4.03
17 of the Regional Transportation Authority Act, from such
18 person, the Department may withhold issuance of the credit or
19 refund pending the final disposition of such proceedings and
20 may apply such credit or refund against any amount found to be
21 due to the Department as a result of such proceedings. The
22 balance, if any, of the credit or refund shall be issued to the
23 person entitled thereto.
24 Any credit memorandum issued hereunder may be used by the
25 authorized holder thereof to pay any tax or penalty or
26 interest due or to become due under this Act, or under the
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1 Retailers' Occupation Tax Act, the Service Occupation Tax Act,
2 the Service Use Tax Act, or any local occupation or use tax
3 administered by the Department, Section 4 of the Water
4 Commission Act of 1985, subsections (b), (c) and (d) of
5 Section 5.01 of the Local Mass Transit District Act, or
6 subsections (e), (f) and (g) of Section 4.03 of the Regional
7 Transportation Authority Act, from such holder. Subject to
8 reasonable rules of the Department, a credit memorandum issued
9 hereunder may be assigned by the holder thereof to any other
10 person for use in paying tax or penalty or interest which may
11 be due or become due under this Act, or under the Retailers'
12 Occupation Tax Act, the Service Occupation Tax Act, or the
13 Service Use Tax Act, or any local occupation or use tax
14 administered by the Department, from the assignee.
15 In any case in which there has been an erroneous refund of
16 tax payable under this Act, a notice of tax liability may be
17 issued at any time within 3 years from the making of that
18 refund, or within 5 years from the making of that refund if it
19 appears that any part of the refund was induced by fraud or the
20 misrepresentation of a material fact. The amount of any
21 proposed assessment set forth in the notice shall be limited
22 to the amount of the erroneous refund.
23 (Source: P.A. 91-901, eff. 1-1-01.)
24 Section 25-10. The Service Use Tax Act is amended by
25 changing Sections 2, 2d, 3-10, and 20 as follows:
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1 (35 ILCS 110/2) (from Ch. 120, par. 439.32)
2 Sec. 2. Definitions. In this Act:
3 "Use" means the exercise by any person of any right or
4 power over tangible personal property incident to the
5 ownership of that property, or, on and after January 1, 2025,
6 incident to the possession or control of, the right to possess
7 or control, or a license to use that property through a lease,
8 but does not include the sale or use for demonstration by him
9 of that property in any form as tangible personal property in
10 the regular course of business. "Use" does not mean the
11 interim use of tangible personal property. On and after
12 January 1, 2025, the lease of tangible personal property to a
13 lessee by a serviceman who is subject to tax on lease receipts
14 under this amendatory Act of the 103rd General Assembly does
15 not qualify as demonstration use or interim use of that
16 property. "Use" does not mean the physical incorporation of
17 tangible personal property, as an ingredient or constituent,
18 into other tangible personal property, (a) which is sold in
19 the regular course of business or (b) which the person
20 incorporating such ingredient or constituent therein has
21 undertaken at the time of such purchase to cause to be
22 transported in interstate commerce to destinations outside the
23 State of Illinois.
24 "Lease" means a transfer of the possession or control of,
25 the right to possess or control, or a license to use, but not
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1 title to, tangible personal property for a fixed or
2 indeterminate term for consideration, regardless of the name
3 by which the transaction is called. "Lease" does not include a
4 lease entered into merely as a security agreement that does
5 not involve a transfer of possession from the lessor to the
6 lessee.
7 On and after January 1, 2025, the term "sale", when used in
8 this Act with respect to tangible personal property, includes
9 a lease.
10 "Purchased from a serviceman" means the acquisition of the
11 ownership of, the title to, the possession or control of, the
12 right to possess or control, or a license to use, tangible
13 personal property through a sale of service.
14 "Purchaser" means any person who, through a sale of
15 service, acquires the ownership of, the title to, the
16 possession or control of, the right to possess or control, or a
17 license to use, any tangible personal property.
18 "Cost price" means the consideration paid by the
19 serviceman for a purchase, including, on and after January 1,
20 2025, a lease, valued in money, whether paid in money or
21 otherwise, including cash, credits and services, and shall be
22 determined without any deduction on account of the supplier's
23 cost of the property sold or on account of any other expense
24 incurred by the supplier. When a serviceman contracts out part
25 or all of the services required in his sale of service, it
26 shall be presumed that the cost price to the serviceman of the
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1 property transferred to him or her by his or her subcontractor
2 is equal to 50% of the subcontractor's charges to the
3 serviceman in the absence of proof of the consideration paid
4 by the subcontractor for the purchase of such property.
5 "Selling price" means the consideration for a sale,
6 including, on and after January 1, 2025, a lease, valued in
7 money whether received in money or otherwise, including cash,
8 credits and service, and shall be determined without any
9 deduction on account of the serviceman's cost of the property
10 sold, the cost of materials used, labor or service cost or any
11 other expense whatsoever, but does not include interest or
12 finance charges which appear as separate items on the bill of
13 sale or sales contract nor charges that are added to prices by
14 sellers on account of the seller's duty to collect, from the
15 purchaser, the tax that is imposed by this Act.
16 "Department" means the Department of Revenue.
17 "Person" means any natural individual, firm, partnership,
18 association, joint stock company, joint venture, public or
19 private corporation, limited liability company, and any
20 receiver, executor, trustee, guardian or other representative
21 appointed by order of any court.
22 "Sale of service" means any transaction except:
23 (1) a retail sale of tangible personal property
24 taxable under the Retailers' Occupation Tax Act or under
25 the Use Tax Act.
26 (2) a sale of tangible personal property for the
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1 purpose of resale made in compliance with Section 2c of
2 the Retailers' Occupation Tax Act.
3 (3) except as hereinafter provided, a sale or transfer
4 of tangible personal property as an incident to the
5 rendering of service for or by any governmental body, or
6 for or by any corporation, society, association,
7 foundation or institution organized and operated
8 exclusively for charitable, religious or educational
9 purposes or any not-for-profit corporation, society,
10 association, foundation, institution or organization which
11 has no compensated officers or employees and which is
12 organized and operated primarily for the recreation of
13 persons 55 years of age or older. A limited liability
14 company may qualify for the exemption under this paragraph
15 only if the limited liability company is organized and
16 operated exclusively for educational purposes.
17 (4) (blank).
18 (4a) a sale or transfer of tangible personal property
19 as an incident to the rendering of service for owners or
20 lessors, lessees, or shippers of tangible personal
21 property which is utilized by interstate carriers for hire
22 for use as rolling stock moving in interstate commerce so
23 long as so used by interstate carriers for hire, and
24 equipment operated by a telecommunications provider,
25 licensed as a common carrier by the Federal Communications
26 Commission, which is permanently installed in or affixed
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1 to aircraft moving in interstate commerce.
2 (4a-5) on and after July 1, 2003 and through June 30,
3 2004, a sale or transfer of a motor vehicle of the second
4 division with a gross vehicle weight in excess of 8,000
5 pounds as an incident to the rendering of service if that
6 motor vehicle is subject to the commercial distribution
7 fee imposed under Section 3-815.1 of the Illinois Vehicle
8 Code. Beginning on July 1, 2004 and through June 30, 2005,
9 the use in this State of motor vehicles of the second
10 division: (i) with a gross vehicle weight rating in excess
11 of 8,000 pounds; (ii) that are subject to the commercial
12 distribution fee imposed under Section 3-815.1 of the
13 Illinois Vehicle Code; and (iii) that are primarily used
14 for commercial purposes. Through June 30, 2005, this
15 exemption applies to repair and replacement parts added
16 after the initial purchase of such a motor vehicle if that
17 motor vehicle is used in a manner that would qualify for
18 the rolling stock exemption otherwise provided for in this
19 Act. For purposes of this paragraph, "used for commercial
20 purposes" means the transportation of persons or property
21 in furtherance of any commercial or industrial enterprise
22 whether for-hire or not.
23 (5) a sale or transfer of machinery and equipment used
24 primarily in the process of the manufacturing or
25 assembling, either in an existing, an expanded or a new
26 manufacturing facility, of tangible personal property for
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1 wholesale or retail sale or lease, whether such sale or
2 lease is made directly by the manufacturer or by some
3 other person, whether the materials used in the process
4 are owned by the manufacturer or some other person, or
5 whether such sale or lease is made apart from or as an
6 incident to the seller's engaging in a service occupation
7 and the applicable tax is a Service Use Tax or Service
8 Occupation Tax, rather than Use Tax or Retailers'
9 Occupation Tax. The exemption provided by this paragraph
10 (5) includes production related tangible personal
11 property, as defined in Section 3-50 of the Use Tax Act,
12 purchased on or after July 1, 2019. The exemption provided
13 by this paragraph (5) does not include machinery and
14 equipment used in (i) the generation of electricity for
15 wholesale or retail sale; (ii) the generation or treatment
16 of natural or artificial gas for wholesale or retail sale
17 that is delivered to customers through pipes, pipelines,
18 or mains; or (iii) the treatment of water for wholesale or
19 retail sale that is delivered to customers through pipes,
20 pipelines, or mains. The provisions of Public Act 98-583
21 are declaratory of existing law as to the meaning and
22 scope of this exemption. The exemption under this
23 paragraph (5) is exempt from the provisions of Section
24 3-75.
25 (5a) the repairing, reconditioning or remodeling, for
26 a common carrier by rail, of tangible personal property
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1 which belongs to such carrier for hire, and as to which
2 such carrier receives the physical possession of the
3 repaired, reconditioned or remodeled item of tangible
4 personal property in Illinois, and which such carrier
5 transports, or shares with another common carrier in the
6 transportation of such property, out of Illinois on a
7 standard uniform bill of lading showing the person who
8 repaired, reconditioned or remodeled the property to a
9 destination outside Illinois, for use outside Illinois.
10 (5b) a sale or transfer of tangible personal property
11 which is produced by the seller thereof on special order
12 in such a way as to have made the applicable tax the
13 Service Occupation Tax or the Service Use Tax, rather than
14 the Retailers' Occupation Tax or the Use Tax, for an
15 interstate carrier by rail which receives the physical
16 possession of such property in Illinois, and which
17 transports such property, or shares with another common
18 carrier in the transportation of such property, out of
19 Illinois on a standard uniform bill of lading showing the
20 seller of the property as the shipper or consignor of such
21 property to a destination outside Illinois, for use
22 outside Illinois.
23 (6) until July 1, 2003, a sale or transfer of
24 distillation machinery and equipment, sold as a unit or
25 kit and assembled or installed by the retailer, which
26 machinery and equipment is certified by the user to be
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1 used only for the production of ethyl alcohol that will be
2 used for consumption as motor fuel or as a component of
3 motor fuel for the personal use of such user and not
4 subject to sale or resale.
5 (7) at the election for each fiscal year of any
6 serviceman not required to be otherwise registered as a
7 retailer under Section 2a of the Retailers' Occupation Tax
8 Act or, beginning January 1, 2026, any serviceman
9 maintaining a place of business in this State who does not
10 make any retail sales of tangible personal property to
11 purchasers in Illinois, made for each fiscal year sales of
12 service in which the aggregate annual cost price of
13 tangible personal property transferred as an incident to
14 the sales of service is less than 35%, or 75% in the case
15 of servicemen transferring prescription drugs or
16 servicemen engaged in graphic arts production, of the
17 aggregate annual total gross receipts from all sales of
18 service. The purchase of such tangible personal property
19 by the serviceman shall be subject to tax under the
20 Retailers' Occupation Tax Act and the Use Tax Act.
21 However, if a primary serviceman who has made the election
22 described in this paragraph subcontracts service work to a
23 secondary serviceman who has also made the election
24 described in this paragraph, the primary serviceman does
25 not incur a Use Tax liability if the secondary serviceman
26 (i) has paid or will pay Use Tax on his or her cost price
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1 of any tangible personal property transferred to the
2 primary serviceman and (ii) certifies that fact in writing
3 to the primary serviceman. Beginning January 1, 2026, this
4 election shall not apply to any sale of service through a
5 marketplace that has met the threshold in subsection (b-5)
6 of Section 2d of this Act. All transactions over such a
7 marketplace shall be subject to the tax imposed under
8 Section 3-10 of this Act.
9 Tangible personal property transferred incident to the
10 completion of a maintenance agreement is exempt from the tax
11 imposed pursuant to this Act.
12 Exemption (5) also includes machinery and equipment used
13 in the general maintenance or repair of such exempt machinery
14 and equipment or for in-house manufacture of exempt machinery
15 and equipment. On and after July 1, 2017, exemption (5) also
16 includes graphic arts machinery and equipment, as defined in
17 paragraph (5) of Section 3-5. The machinery and equipment
18 exemption does not include machinery and equipment used in (i)
19 the generation of electricity for wholesale or retail sale;
20 (ii) the generation or treatment of natural or artificial gas
21 for wholesale or retail sale that is delivered to customers
22 through pipes, pipelines, or mains; or (iii) the treatment of
23 water for wholesale or retail sale that is delivered to
24 customers through pipes, pipelines, or mains. The provisions
25 of Public Act 98-583 are declaratory of existing law as to the
26 meaning and scope of this exemption. For the purposes of
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1 exemption (5), each of these terms shall have the following
2 meanings: (1) "manufacturing process" shall mean the
3 production of any article of tangible personal property,
4 whether such article is a finished product or an article for
5 use in the process of manufacturing or assembling a different
6 article of tangible personal property, by procedures commonly
7 regarded as manufacturing, processing, fabricating, or
8 refining which changes some existing material or materials
9 into a material with a different form, use or name. In relation
10 to a recognized integrated business composed of a series of
11 operations which collectively constitute manufacturing, or
12 individually constitute manufacturing operations, the
13 manufacturing process shall be deemed to commence with the
14 first operation or stage of production in the series, and
15 shall not be deemed to end until the completion of the final
16 product in the last operation or stage of production in the
17 series; and further, for purposes of exemption (5),
18 photoprocessing is deemed to be a manufacturing process of
19 tangible personal property for wholesale or retail sale; (2)
20 "assembling process" shall mean the production of any article
21 of tangible personal property, whether such article is a
22 finished product or an article for use in the process of
23 manufacturing or assembling a different article of tangible
24 personal property, by the combination of existing materials in
25 a manner commonly regarded as assembling which results in a
26 material of a different form, use or name; (3) "machinery"
HB2755 Enrolled - 311 - LRB104 08253 BDA 18303 b
1 shall mean major mechanical machines or major components of
2 such machines contributing to a manufacturing or assembling
3 process; and (4) "equipment" shall include any independent
4 device or tool separate from any machinery but essential to an
5 integrated manufacturing or assembly process; including
6 computers used primarily in a manufacturer's computer assisted
7 design, computer assisted manufacturing (CAD/CAM) system; or
8 any subunit or assembly comprising a component of any
9 machinery or auxiliary, adjunct or attachment parts of
10 machinery, such as tools, dies, jigs, fixtures, patterns and
11 molds; or any parts which require periodic replacement in the
12 course of normal operation; but shall not include hand tools.
13 Equipment includes chemicals or chemicals acting as catalysts
14 but only if the chemicals or chemicals acting as catalysts
15 effect a direct and immediate change upon a product being
16 manufactured or assembled for wholesale or retail sale or
17 lease. The purchaser of such machinery and equipment who has
18 an active resale registration number shall furnish such number
19 to the seller at the time of purchase. The purchaser of such
20 machinery and equipment and tools without an active resale
21 registration number shall prepare a certificate of exemption
22 stating facts establishing the exemption, which certificate
23 shall be available to the Department for inspection or audit.
24 The Department shall prescribe the form of the certificate.
25 Any informal rulings, opinions or letters issued by the
26 Department in response to an inquiry or request for any
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1 opinion from any person regarding the coverage and
2 applicability of exemption (5) to specific devices shall be
3 published, maintained as a public record, and made available
4 for public inspection and copying. If the informal ruling,
5 opinion or letter contains trade secrets or other confidential
6 information, where possible the Department shall delete such
7 information prior to publication. Whenever such informal
8 rulings, opinions, or letters contain any policy of general
9 applicability, the Department shall formulate and adopt such
10 policy as a rule in accordance with the provisions of the
11 Illinois Administrative Procedure Act.
12 On and after July 1, 1987, no entity otherwise eligible
13 under exemption (3) of this Section shall make tax-free
14 purchases unless it has an active exemption identification
15 number issued by the Department.
16 The purchase, employment and transfer of such tangible
17 personal property as newsprint and ink for the primary purpose
18 of conveying news (with or without other information) is not a
19 purchase, use or sale of service or of tangible personal
20 property within the meaning of this Act.
21 "Serviceman" means any person who is engaged in the
22 occupation of making sales of service.
23 "Sale at retail" means "sale at retail" as defined in the
24 Retailers' Occupation Tax Act, which, on and after January 1,
25 2025, is defined to include leases.
26 "Supplier" means any person who makes sales of tangible
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1 personal property to servicemen for the purpose of resale as
2 an incident to a sale of service.
3 "Serviceman maintaining a place of business in this
4 State", or any like term, means and includes any serviceman:
5 (1) Having having or maintaining within this State,
6 directly or by a subsidiary, an office, distribution
7 house, sales house, warehouse or other place of business,
8 or any agent or other representative operating within this
9 State under the authority of the serviceman or its
10 subsidiary, irrespective of whether such place of business
11 or agent or other representative is located here
12 permanently or temporarily, or whether such serviceman or
13 subsidiary is licensed to do business in this State;
14 (1.1) Having having a contract with a person located
15 in this State under which the person, for a commission or
16 other consideration based on the sale of service by the
17 serviceman, directly or indirectly refers potential
18 customers to the serviceman by providing to the potential
19 customers a promotional code or other mechanism that
20 allows the serviceman to track purchases referred by such
21 persons. Examples of mechanisms that allow the serviceman
22 to track purchases referred by such persons include but
23 are not limited to the use of a link on the person's
24 Internet website, promotional codes distributed through
25 the person's hand-delivered or mailed material, and
26 promotional codes distributed by the person through radio
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1 or other broadcast media. The provisions of this paragraph
2 (1.1) shall apply only if the cumulative gross receipts
3 from sales of service by the serviceman to customers who
4 are referred to the serviceman by all persons in this
5 State under such contracts exceed $10,000 during the
6 preceding 4 quarterly periods ending on the last day of
7 March, June, September, and December; a serviceman meeting
8 the requirements of this paragraph (1.1) shall be presumed
9 to be maintaining a place of business in this State but may
10 rebut this presumption by submitting proof that the
11 referrals or other activities pursued within this State by
12 such persons were not sufficient to meet the nexus
13 standards of the United States Constitution during the
14 preceding 4 quarterly periods;
15 (1.2) Beginning beginning July 1, 2011, having a
16 contract with a person located in this State under which:
17 (A) the serviceman sells the same or substantially
18 similar line of services as the person located in this
19 State and does so using an identical or substantially
20 similar name, trade name, or trademark as the person
21 located in this State; and
22 (B) the serviceman provides a commission or other
23 consideration to the person located in this State
24 based upon the sale of services by the serviceman.
25 The provisions of this paragraph (1.2) shall apply only if
26 the cumulative gross receipts from sales of service by the
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1 serviceman to customers in this State under all such
2 contracts exceed $10,000 during the preceding 4 quarterly
3 periods ending on the last day of March, June, September,
4 and December;
5 (2) (Blank). soliciting orders for tangible personal
6 property by means of a telecommunication or television
7 shopping system (which utilizes toll free numbers) which
8 is intended by the retailer to be broadcast by cable
9 television or other means of broadcasting, to consumers
10 located in this State;
11 (3) (Blank). pursuant to a contract with a broadcaster
12 or publisher located in this State, soliciting orders for
13 tangible personal property by means of advertising which
14 is disseminated primarily to consumers located in this
15 State and only secondarily to bordering jurisdictions;
16 (4) (Blank). soliciting orders for tangible personal
17 property by mail if the solicitations are substantial and
18 recurring and if the retailer benefits from any banking,
19 financing, debt collection, telecommunication, or
20 marketing activities occurring in this State or benefits
21 from the location in this State of authorized
22 installation, servicing, or repair facilities;
23 (5) (Blank). being owned or controlled by the same
24 interests which own or control any retailer engaging in
25 business in the same or similar line of business in this
26 State;
HB2755 Enrolled - 316 - LRB104 08253 BDA 18303 b
1 (6) (Blank). having a franchisee or licensee operating
2 under its trade name if the franchisee or licensee is
3 required to collect the tax under this Section;
4 (7) (Blank). pursuant to a contract with a cable
5 television operator located in this State, soliciting
6 orders for tangible personal property by means of
7 advertising which is transmitted or distributed over a
8 cable television system in this State;
9 (8) (Blank). engaging in activities in Illinois, which
10 activities in the state in which the supply business
11 engaging in such activities is located would constitute
12 maintaining a place of business in that state; or
13 (9) Beginning beginning October 1, 2018, and through
14 December 31, 2025, making sales of service to purchasers
15 in Illinois from outside of Illinois if:
16 (A) the cumulative gross receipts from sales of
17 service to purchasers in Illinois are $100,000 or
18 more; or
19 (B) the serviceman enters into 200 or more
20 separate transactions for sales of service to
21 purchasers in Illinois.
22 The serviceman shall determine on a quarterly basis,
23 ending on the last day of March, June, September, and
24 December, whether he or she meets the threshold criteria
25 of either subparagraph (A) or (B) of this paragraph (9)
26 for the preceding 12-month period. If the serviceman meets
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1 the threshold criteria of either subparagraph (A) or (B)
2 for a 12-month period, he or she is considered a
3 serviceman maintaining a place of business in this State
4 and is required to collect and remit the tax imposed under
5 this Act and file returns for one year. At the end of that
6 one-year period, the serviceman shall determine whether
7 the serviceman met the threshold criteria of either
8 subparagraph (A) or (B) during the preceding 12-month
9 period. If the serviceman met the threshold criteria in
10 either subparagraph (A) or (B) for the preceding 12-month
11 period, he or she is considered a serviceman maintaining a
12 place of business in this State and is required to collect
13 and remit the tax imposed under this Act and file returns
14 for the subsequent year. If at the end of a one-year period
15 a serviceman that was required to collect and remit the
16 tax imposed under this Act determines that he or she did
17 not meet the threshold criteria in either subparagraph (A)
18 or (B) during the preceding 12-month period, the
19 serviceman subsequently shall determine on a quarterly
20 basis, ending on the last day of March, June, September,
21 and December, whether he or she meets the threshold
22 criteria of either subparagraph (A) or (B) for the
23 preceding 12-month period.
24 (9.1) Beginning January 1, 2026, making sales of
25 service to purchasers in Illinois from outside of Illinois
26 if the cumulative gross receipts from sales of service to
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1 purchasers in Illinois are $100,000 or more.
2 The serviceman shall determine on a quarterly basis,
3 ending on the last day of March, June, September, and
4 December, whether the serviceman meets the threshold in
5 this paragraph (9.1) for the preceding 12-month period. If
6 the serviceman meets the threshold for a 12-month period,
7 the serviceman is considered a serviceman maintaining a
8 place of business in this State and is required to collect
9 and remit the tax imposed under this Act and file returns
10 for one year. At the end of the one-year period, the
11 serviceman shall determine whether the serviceman met the
12 threshold during the preceding 12-month period. If the
13 serviceman met the threshold for the preceding 12-month
14 period, the serviceman is considered a serviceman
15 maintaining a place of business in this State and is
16 required to collect and remit the tax imposed under this
17 Act and file returns for the subsequent year. If at the end
18 of a one-year period a serviceman that was required to
19 collect and remit the tax imposed under this Act
20 determines that the serviceman did not meet the threshold
21 during the preceding 12-month period, the serviceman shall
22 subsequently determine on a quarterly basis, ending on the
23 last day of March, June, September, and December, whether
24 the serviceman meets the threshold for the preceding
25 12-month period.
26 Beginning January 1, 2020, neither the gross receipts
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1 from nor the number of separate transactions for sales of
2 service to purchasers in Illinois that a serviceman makes
3 through a marketplace facilitator and for which the
4 serviceman has received a certification from the
5 marketplace facilitator pursuant to Section 2d of this Act
6 shall be included for purposes of determining whether he
7 or she has met a threshold the thresholds of this
8 paragraph (9) or this paragraph (9.1).
9 (10) Beginning January 1, 2020, a marketplace
10 facilitator that meets a threshold set forth in either
11 subsection (b) or (b-5) of, as defined in Section 2d of
12 this Act.
13 (Source: P.A. 103-592, eff. 1-1-25.)
14 (35 ILCS 110/2d)
15 Sec. 2d. Marketplace facilitators and marketplace
16 servicemen.
17 (a) Definitions. For purposes of this Section:
18 "Affiliate" means a person that, with respect to another
19 person: (i) has a direct or indirect ownership interest of
20 more than 5% in the other person; or (ii) is related to the
21 other person because a third person, or group of third persons
22 who are affiliated with each other as defined in this
23 subsection, holds a direct or indirect ownership interest of
24 more than 5% in the related person.
25 "Marketplace" means a physical or electronic place, forum,
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1 platform, application, or other method by which a marketplace
2 serviceman makes or offers to make sales of service.
3 "Marketplace facilitator" means a person who, pursuant to
4 an agreement with an unrelated third-party marketplace
5 serviceman, directly or indirectly through one or more
6 affiliates facilitates sales of service by that unrelated
7 third-party marketplace serviceman through:
8 (1) listing or advertising for sale by the marketplace
9 serviceman in a marketplace, sales of service that are
10 subject to tax under this Act; and
11 (2) either directly or indirectly, through agreements
12 or arrangements with third parties, collecting payment
13 from the customer and transmitting that payment to the
14 marketplace serviceman regardless of whether the
15 marketplace facilitator receives compensation or other
16 consideration in exchange for its services.
17 "Marketplace facilitator" means a person who, pursuant to
18 an agreement with a marketplace serviceman, facilitates sales
19 of service by that marketplace serviceman. A person
20 facilitates a sale of service by, directly or indirectly
21 through one or more affiliates, doing both of the following:
22 (i) listing or otherwise making available a sale of service of
23 the marketplace serviceman through a marketplace owned or
24 operated by the marketplace facilitator; and (ii) processing
25 sales of service for, or payments for sales of service by,
26 marketplace servicemen.
HB2755 Enrolled - 321 - LRB104 08253 BDA 18303 b
1 "Marketplace serviceman" means a person that makes or
2 offers to make a sale of service through a marketplace
3 operated by an unrelated third-party marketplace facilitator.
4 (b) Beginning January 1, 2020, and through December 31,
5 2025, a marketplace facilitator who meets either of the
6 following thresholds criteria is considered the serviceman for
7 each sale of service made through its on the marketplace:
8 (1) the cumulative gross receipts from sales of
9 service to purchasers in Illinois by the marketplace
10 facilitator and by marketplace servicemen selling through
11 the marketplace are $100,000 or more; or
12 (2) the marketplace facilitator and marketplace
13 servicemen selling through the marketplace cumulatively
14 enter into 200 or more separate transactions for the sale
15 of service to purchasers in Illinois.
16 A marketplace facilitator shall determine on a quarterly
17 basis, ending on the last day of March, June, September, and
18 December, whether the marketplace facilitator he or she meets
19 the threshold criteria of either paragraph (1) or (2) of this
20 subsection (b) for the preceding 12-month period. If the
21 marketplace facilitator meets the threshold criteria of either
22 paragraph (1) or (2) for a 12-month period, it he or she is
23 considered a serviceman maintaining a place of business in
24 this State and is required to collect and remit the tax imposed
25 under this Act and file returns for one year. At the end of
26 that one-year period, the marketplace facilitator shall
HB2755 Enrolled - 322 - LRB104 08253 BDA 18303 b
1 determine whether the marketplace facilitator met the
2 threshold criteria of either paragraph (1) or (2) during the
3 preceding 12-month period. If the marketplace facilitator met
4 the threshold criteria in either paragraph (1) or (2) for the
5 preceding 12-month period, it he or she is considered a
6 serviceman maintaining a place of business in this State and
7 is required to collect and remit the tax imposed under this Act
8 and file returns for the subsequent year. If, at the end of a
9 one-year period, a marketplace facilitator that was required
10 to collect and remit the tax imposed under this Act determines
11 that it he or she did not meet the threshold criteria in either
12 paragraph (1) or (2) during the preceding 12-month period, the
13 marketplace facilitator shall subsequently determine on a
14 quarterly basis, ending on the last day of March, June,
15 September, and December, whether it he or she meets the
16 threshold criteria of either paragraph (1) or (2) for the
17 preceding 12-month period.
18 (b-5) Beginning on January 1, 2026, a marketplace
19 facilitator whose cumulative gross receipts from sales of
20 service to purchasers in Illinois by the marketplace
21 facilitator and by marketplace servicemen selling through the
22 marketplace are $100,000 or more is engaged in the business of
23 making sales of service in Illinois for purposes of this Act
24 for each sale of service made through the marketplace.
25 A marketplace facilitator shall determine on a quarterly
26 basis, ending on the last day of March, June, September, and
HB2755 Enrolled - 323 - LRB104 08253 BDA 18303 b
1 December, whether the marketplace facilitator meets the
2 threshold in this subsection (b-5) for the preceding 12-month
3 period. If the marketplace facilitator meets the threshold for
4 a 12-month period, the marketplace facilitator is considered a
5 serviceman maintaining a place of business in this State and
6 is required to collect and remit the tax imposed under this Act
7 and file returns for one year. At the end of the one-year
8 period, the marketplace facilitator shall determine whether
9 the marketplace facilitator met the threshold during the
10 preceding 12-month period. If the marketplace facilitator met
11 the threshold for the preceding 12-month period, the
12 marketplace facilitator is considered a serviceman maintaining
13 a place of business in this State and is required to collect
14 and remit the tax imposed under this Act and file returns for
15 the subsequent year. If at the end of a one-year period a
16 marketplace facilitator that was required to collect and remit
17 the tax imposed under this Act determines that the marketplace
18 facilitator did not meet the threshold during the preceding
19 12-month period, the marketplace facilitator shall
20 subsequently determine on a quarterly basis, ending on the
21 last day of March, June, September, and December, whether it
22 meets the threshold for the preceding 12-month period.
23 (c) A marketplace facilitator considered to be the
24 serviceman pursuant to that meets either of the thresholds in
25 subsection (b) or, beginning January 1, 2026, subsection (b-5)
26 of this Section is considered the serviceman for each sale of
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1 service made through its marketplace and is liable for
2 collecting and remitting the tax under this Act on all such
3 sales. The marketplace facilitator has all the rights and
4 duties, and is required to comply with the same requirements
5 and procedures, as all other servicemen maintaining a place of
6 business in this State who are registered or who are required
7 to be registered to collect and remit the tax imposed by this
8 Act with respect to such sales.
9 (d) A marketplace facilitator shall:
10 (1) certify to each marketplace serviceman that the
11 marketplace facilitator assumes the rights and duties of a
12 serviceman under this Act with respect to sales of service
13 made by the marketplace serviceman through the
14 marketplace; and
15 (2) collect taxes imposed by this Act as required by
16 Section 3-40 of this Act for sales of service made through
17 the marketplace.
18 (e) A marketplace serviceman shall retain books and
19 records for all sales of service made through a marketplace in
20 accordance with the requirements of Section 11.
21 (f) A marketplace serviceman shall furnish to the
22 marketplace facilitator information that is necessary for the
23 marketplace facilitator to correctly collect and remit taxes
24 for a sale of service. Such information includes the cost
25 price of any item transferred incident to a sale of service
26 under this Act when the cost price of an item exceeds 50% of
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1 the entire billing to the service customer of a sale of service
2 made through the marketplace. The information may include a
3 certification that an item transferred incident to a sale of
4 service under this Act is taxable, not taxable, exempt from
5 taxation, or taxable at a specified rate. A marketplace
6 serviceman shall be held harmless for liability for the tax
7 imposed under this Act when a marketplace facilitator fails to
8 correctly collect and remit tax after having been provided
9 with information by a marketplace serviceman to correctly
10 collect and remit taxes imposed under this Act.
11 (g) If Except as provided in subsection (h), if the
12 marketplace facilitator demonstrates to the satisfaction of
13 the Department that its failure to correctly collect and remit
14 tax on a sale of service resulted from the marketplace
15 facilitator's good faith reliance on incorrect or insufficient
16 information provided by a marketplace serviceman, it shall be
17 relieved of liability for the tax on that sale of service. In
18 this case, a marketplace serviceman is liable for any
19 resulting tax due.
20 (h) (Blank). A marketplace facilitator and marketplace
21 serviceman that are affiliates, as defined by subsection (a),
22 are jointly and severally liable for tax liability resulting
23 from a sale of service made by the affiliated marketplace
24 serviceman through the marketplace.
25 (i) This Section does not affect the tax liability of a
26 purchaser under this Act.
HB2755 Enrolled - 326 - LRB104 08253 BDA 18303 b
1 (j) (Blank). The Department may adopt rules for the
2 administration and enforcement of the provisions of this
3 Section.
4 (k) A marketplace facilitator required to collect taxes
5 imposed under this Section and this Act on sales of service
6 made through its marketplace shall be liable to the Department
7 for such taxes, except when the marketplace facilitator is
8 relieved of the duty to remit such taxes by virtue of having
9 paid to the Department taxes imposed by the Service Occupation
10 Tax Act from the same transactions.
11 (l) If, for any reason, the Department is prohibited from
12 enforcing the marketplace facilitator's duty under this Act to
13 collect and remit taxes pursuant to this Section, the duty to
14 collect and remit such taxes reverts to the marketplace
15 serviceman that is a serviceman maintaining a place of
16 business in this State pursuant to Section 2.
17 (m) Nothing in this Section affects the obligation of any
18 consumer to remit service use tax for any taxable transaction
19 for which a certified service provider acting on behalf of a
20 serviceman maintaining a place of business in this State or a
21 marketplace facilitator does not collect and remit the
22 appropriate tax.
23 (Source: P.A. 101-9, eff. 6-5-19.)
24 (35 ILCS 110/3-10)
25 Sec. 3-10. Rate of tax. Unless otherwise provided in this
HB2755 Enrolled - 327 - LRB104 08253 BDA 18303 b
1 Section, the tax imposed by this Act is at the rate of 6.25% of
2 the selling price of tangible personal property transferred,
3 including, on and after January 1, 2025, transferred by lease,
4 as an incident to the sale of service, but, for the purpose of
5 computing this tax, in no event shall the selling price be less
6 than the cost price of the property to the serviceman.
7 Beginning on July 1, 2000 and through December 31, 2000,
8 with respect to motor fuel, as defined in Section 1.1 of the
9 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10 the Use Tax Act, the tax is imposed at the rate of 1.25%.
11 With respect to gasohol, as defined in the Use Tax Act, the
12 tax imposed by this Act applies to (i) 70% of the selling price
13 of property transferred as an incident to the sale of service
14 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
15 of the selling price of property transferred as an incident to
16 the sale of service on or after July 1, 2003 and on or before
17 July 1, 2017, (iii) 100% of the selling price of property
18 transferred as an incident to the sale of service after July 1,
19 2017 and before January 1, 2024, (iv) 90% of the selling price
20 of property transferred as an incident to the sale of service
21 on or after January 1, 2024 and on or before December 31, 2028,
22 and (v) 100% of the selling price of property transferred as an
23 incident to the sale of service after December 31, 2028. If, at
24 any time, however, the tax under this Act on sales of gasohol,
25 as defined in the Use Tax Act, is imposed at the rate of 1.25%,
26 then the tax imposed by this Act applies to 100% of the
HB2755 Enrolled - 328 - LRB104 08253 BDA 18303 b
1 proceeds of sales of gasohol made during that time.
2 With respect to mid-range ethanol blends, as defined in
3 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
4 applies to (i) 80% of the selling price of property
5 transferred as an incident to the sale of service on or after
6 January 1, 2024 and on or before December 31, 2028 and (ii)
7 100% of the selling price of property transferred as an
8 incident to the sale of service after December 31, 2028. If, at
9 any time, however, the tax under this Act on sales of mid-range
10 ethanol blends is imposed at the rate of 1.25%, then the tax
11 imposed by this Act applies to 100% of the selling price of
12 mid-range ethanol blends transferred as an incident to the
13 sale of service during that time.
14 With respect to majority blended ethanol fuel, as defined
15 in the Use Tax Act, the tax imposed by this Act does not apply
16 to the selling price of property transferred as an incident to
17 the sale of service on or after July 1, 2003 and on or before
18 December 31, 2028 but applies to 100% of the selling price
19 thereafter.
20 With respect to biodiesel blends, as defined in the Use
21 Tax Act, with no less than 1% and no more than 10% biodiesel,
22 the tax imposed by this Act applies to (i) 80% of the selling
23 price of property transferred as an incident to the sale of
24 service on or after July 1, 2003 and on or before December 31,
25 2018 and (ii) 100% of the proceeds of the selling price after
26 December 31, 2018 and before January 1, 2024. On and after
HB2755 Enrolled - 329 - LRB104 08253 BDA 18303 b
1 January 1, 2024 and on or before December 31, 2030, the
2 taxation of biodiesel, renewable diesel, and biodiesel blends
3 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
4 at any time, however, the tax under this Act on sales of
5 biodiesel blends, as defined in the Use Tax Act, with no less
6 than 1% and no more than 10% biodiesel is imposed at the rate
7 of 1.25%, then the tax imposed by this Act applies to 100% of
8 the proceeds of sales of biodiesel blends with no less than 1%
9 and no more than 10% biodiesel made during that time.
10 With respect to biodiesel, as defined in the Use Tax Act,
11 and biodiesel blends, as defined in the Use Tax Act, with more
12 than 10% but no more than 99% biodiesel, the tax imposed by
13 this Act does not apply to the proceeds of the selling price of
14 property transferred as an incident to the sale of service on
15 or after July 1, 2003 and on or before December 31, 2023. On
16 and after January 1, 2024 and on or before December 31, 2030,
17 the taxation of biodiesel, renewable diesel, and biodiesel
18 blends shall be as provided in Section 3-5.1 of the Use Tax
19 Act.
20 At the election of any registered serviceman made for each
21 fiscal year, for whom sales of service in which the aggregate
22 annual cost price of tangible personal property transferred as
23 an incident to the sales of service is less than 35%, or 75% in
24 the case of servicemen transferring prescription drugs or
25 servicemen engaged in graphic arts production, of the
26 aggregate annual total gross receipts from all sales of
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1 service, the tax imposed by this Act shall be based on the
2 serviceman's cost price of the tangible personal property
3 transferred as an incident to the sale of those services. This
4 election may also be made by any serviceman maintaining a
5 place of business in this State who makes retail sales from
6 outside of this State to Illinois customers but is not
7 required to be registered under Section 2a of the Retailers'
8 Occupation Tax Act. Beginning January 1, 2026, this election
9 shall not apply to any sale of service made through a
10 marketplace that has met the threshold in subsection (b-5) of
11 Section 2d of this Act.
12 Beginning January 1, 2026, the tax shall be imposed at the
13 rate of 6.25% of 50% of the entire billing to the service
14 customer for all sales of service made through a marketplace
15 that has met the threshold in subsection (b-5) of Section 2d of
16 this Act. In no event shall 50% of the entire billing be less
17 than the cost price of the property to the marketplace
18 serviceman or the marketplace facilitator on its own sales of
19 service.
20 Until July 1, 2022 and from July 1, 2023 through December
21 31, 2025, the tax shall be imposed at the rate of 1% on food
22 prepared for immediate consumption and transferred incident to
23 a sale of service subject to this Act or the Service Occupation
24 Tax Act by an entity licensed under the Hospital Licensing
25 Act, the Nursing Home Care Act, the Assisted Living and Shared
26 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
HB2755 Enrolled - 331 - LRB104 08253 BDA 18303 b
1 Specialized Mental Health Rehabilitation Act of 2013, or the
2 Child Care Act of 1969, or an entity that holds a permit issued
3 pursuant to the Life Care Facilities Act. Until July 1, 2022
4 and from July 1, 2023 through December 31, 2025, the tax shall
5 also be imposed at the rate of 1% on food for human consumption
6 that is to be consumed off the premises where it is sold (other
7 than alcoholic beverages, food consisting of or infused with
8 adult use cannabis, soft drinks, and food that has been
9 prepared for immediate consumption and is not otherwise
10 included in this paragraph).
11 Beginning on July 1, 2022 and until July 1, 2023, the tax
12 shall be imposed at the rate of 0% on food prepared for
13 immediate consumption and transferred incident to a sale of
14 service subject to this Act or the Service Occupation Tax Act
15 by an entity licensed under the Hospital Licensing Act, the
16 Nursing Home Care Act, the Assisted Living and Shared Housing
17 Act, the ID/DD Community Care Act, the MC/DD Act, the
18 Specialized Mental Health Rehabilitation Act of 2013, or the
19 Child Care Act of 1969, or an entity that holds a permit issued
20 pursuant to the Life Care Facilities Act. Beginning on July 1,
21 2022 and until July 1, 2023, the tax shall also be imposed at
22 the rate of 0% on food for human consumption that is to be
23 consumed off the premises where it is sold (other than
24 alcoholic beverages, food consisting of or infused with adult
25 use cannabis, soft drinks, and food that has been prepared for
26 immediate consumption and is not otherwise included in this
HB2755 Enrolled - 332 - LRB104 08253 BDA 18303 b
1 paragraph).
2 On and an after January 1, 2026, food prepared for
3 immediate consumption and transferred incident to a sale of
4 service subject to this Act or the Service Occupation Tax Act
5 by an entity licensed under the Hospital Licensing Act, the
6 Nursing Home Care Act, the Assisted Living and Shared Housing
7 Act, the ID/DD Community Care Act, the MC/DD Act, the
8 Specialized Mental Health Rehabilitation Act of 2013, or the
9 Child Care Act of 1969, or by an entity that holds a permit
10 issued pursuant to the Life Care Facilities Act is exempt from
11 the tax under this Act. On and after January 1, 2026, food for
12 human consumption that is to be consumed off the premises
13 where it is sold (other than alcoholic beverages, food
14 consisting of or infused with adult use cannabis, soft drinks,
15 candy, and food that has been prepared for immediate
16 consumption and is not otherwise included in this paragraph)
17 is exempt from the tax under this Act.
18 The tax shall be imposed at the rate of 1% on prescription
19 and nonprescription medicines, drugs, medical appliances,
20 products classified as Class III medical devices by the United
21 States Food and Drug Administration that are used for cancer
22 treatment pursuant to a prescription, as well as any
23 accessories and components related to those devices,
24 modifications to a motor vehicle for the purpose of rendering
25 it usable by a person with a disability, and insulin, blood
26 sugar testing materials, syringes, and needles used by human
HB2755 Enrolled - 333 - LRB104 08253 BDA 18303 b
1 diabetics. For the purposes of this Section, until September
2 1, 2009: the term "soft drinks" means any complete, finished,
3 ready-to-use, non-alcoholic drink, whether carbonated or not,
4 including, but not limited to, soda water, cola, fruit juice,
5 vegetable juice, carbonated water, and all other preparations
6 commonly known as soft drinks of whatever kind or description
7 that are contained in any closed or sealed bottle, can,
8 carton, or container, regardless of size; but "soft drinks"
9 does not include coffee, tea, non-carbonated water, infant
10 formula, milk or milk products as defined in the Grade A
11 Pasteurized Milk and Milk Products Act, or drinks containing
12 50% or more natural fruit or vegetable juice.
13 Notwithstanding any other provisions of this Act,
14 beginning September 1, 2009, "soft drinks" means non-alcoholic
15 beverages that contain natural or artificial sweeteners. "Soft
16 drinks" does not include beverages that contain milk or milk
17 products, soy, rice or similar milk substitutes, or greater
18 than 50% of vegetable or fruit juice by volume.
19 Until August 1, 2009, and notwithstanding any other
20 provisions of this Act, "food for human consumption that is to
21 be consumed off the premises where it is sold" includes all
22 food sold through a vending machine, except soft drinks and
23 food products that are dispensed hot from a vending machine,
24 regardless of the location of the vending machine. Beginning
25 August 1, 2009, and notwithstanding any other provisions of
26 this Act, "food for human consumption that is to be consumed
HB2755 Enrolled - 334 - LRB104 08253 BDA 18303 b
1 off the premises where it is sold" includes all food sold
2 through a vending machine, except soft drinks, candy, and food
3 products that are dispensed hot from a vending machine,
4 regardless of the location of the vending machine.
5 Notwithstanding any other provisions of this Act,
6 beginning September 1, 2009, "food for human consumption that
7 is to be consumed off the premises where it is sold" does not
8 include candy. For purposes of this Section, "candy" means a
9 preparation of sugar, honey, or other natural or artificial
10 sweeteners in combination with chocolate, fruits, nuts or
11 other ingredients or flavorings in the form of bars, drops, or
12 pieces. "Candy" does not include any preparation that contains
13 flour or requires refrigeration.
14 Notwithstanding any other provisions of this Act,
15 beginning September 1, 2009, "nonprescription medicines and
16 drugs" does not include grooming and hygiene products. For
17 purposes of this Section, "grooming and hygiene products"
18 includes, but is not limited to, soaps and cleaning solutions,
19 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
20 lotions and screens, unless those products are available by
21 prescription only, regardless of whether the products meet the
22 definition of "over-the-counter-drugs". For the purposes of
23 this paragraph, "over-the-counter-drug" means a drug for human
24 use that contains a label that identifies the product as a drug
25 as required by 21 CFR 201.66. The "over-the-counter-drug"
26 label includes:
HB2755 Enrolled - 335 - LRB104 08253 BDA 18303 b
1 (A) a "Drug Facts" panel; or
2 (B) a statement of the "active ingredient(s)" with a
3 list of those ingredients contained in the compound,
4 substance or preparation.
5 Beginning on January 1, 2014 (the effective date of Public
6 Act 98-122), "prescription and nonprescription medicines and
7 drugs" includes medical cannabis purchased from a registered
8 dispensing organization under the Compassionate Use of Medical
9 Cannabis Program Act.
10 As used in this Section, "adult use cannabis" means
11 cannabis subject to tax under the Cannabis Cultivation
12 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
13 and does not include cannabis subject to tax under the
14 Compassionate Use of Medical Cannabis Program Act.
15 If the property that is acquired from a serviceman is
16 acquired outside Illinois and used outside Illinois before
17 being brought to Illinois for use here and is taxable under
18 this Act, the "selling price" on which the tax is computed
19 shall be reduced by an amount that represents a reasonable
20 allowance for depreciation for the period of prior
21 out-of-state use. No depreciation is allowed in cases where
22 the tax under this Act is imposed on lease receipts.
23 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
24 102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
25 Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
26 103-154, eff. 6-30-23; 103-592, eff. 1-1-25; 103-781, eff.
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1 8-5-24; revised 11-26-24.)
2 (35 ILCS 110/20) (from Ch. 120, par. 439.50)
3 Sec. 20. If it is determined that the Department should
4 issue a credit or refund hereunder, the Department may first
5 apply the amount thereof against any amount of tax or penalty
6 or interest due hereunder, or under the Service Occupation Tax
7 Act, the Retailers' Occupation Tax Act, the Use Tax Act, or any
8 local occupation or use tax administered by the Department,
9 Section 4 of the Water Commission Act of 1985, subsections
10 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
11 District Act, or subsections (e), (f) and (g) of Section 4.03
12 of the Regional Transportation Authority Act, from the person
13 entitled to such credit or refund. For this purpose, if
14 proceedings are pending to determine whether or not any tax or
15 penalty or interest is due hereunder, or under the Service
16 Occupation Tax Act, the Retailers' Occupation Tax Act, the Use
17 Tax Act, or any local occupation or use tax administered by the
18 Department, Section 4 of the Water Commission Act of 1985,
19 subsections (b), (c) and (d) of Section 5.01 of the Local Mass
20 Transit District Act, or subsections (e), (f) and (g) of
21 Section 4.03 of the Regional Transportation Authority Act,
22 from such person, the Department may withhold issuance of the
23 credit or refund pending the final disposition of such
24 proceedings and may apply such credit or refund against any
25 amount found to be due to the Department as a result of such
HB2755 Enrolled - 337 - LRB104 08253 BDA 18303 b
1 proceedings. The balance, if any, of the credit or refund
2 shall be issued to the person entitled thereto.
3 Any credit memorandum issued hereunder may be used by the
4 authorized holder thereof to pay any tax or penalty or
5 interest due or to become due under this Act, or under the
6 Service Occupation Tax Act, the Retailers' Occupation Tax Act,
7 the Use Tax Act, or any local occupation or use tax
8 administered by the Department, Section 4 of the Water
9 Commission Act of 1985, subsections (b), (c) and (d) of
10 Section 5.01 of the Local Mass Transit District Act, or
11 subsections (e), (f) and (g) of Section 4.03 of the Regional
12 Transportation Authority Act, from such holder. Subject to
13 reasonable rules of the Department, a credit memorandum issued
14 hereunder may be assigned by the holder thereof to any other
15 person for use in paying tax or penalty or interest which may
16 be due or become due under this Act, or under the Service
17 Occupation Tax Act, the Retailers' Occupation Tax Act, the Use
18 Tax Act, or any local occupation or use tax administered by the
19 Department, Section 4 of the Water Commission Act of 1985,
20 subsections (b), (c) and (d) of Section 5.01 of the Local Mass
21 Transit District Act, or subsections (e), (f) and (g) of
22 Section 4.03 of the Regional Transportation Authority Act,
23 from the assignee.
24 In any case which there has been an erroneous refund of tax
25 payable under this Act, a notice of tax liability may be issued
26 at any time within 3 years from the making of that refund, or
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1 within 5 years from the making of that refund if it appears
2 that any part of the refund was induced by fraud or the
3 misrepresentation of a material fact. The amount of any
4 proposed assessment set forth in the notice shall be limited
5 to the amount of the erroneous refund.
6 (Source: P.A. 91-901, eff. 1-1-01.)
7 Section 25-15. The Service Occupation Tax Act is amended
8 by changing Sections 2, 3, 3-10, 9, and 20 as follows:
9 (35 ILCS 115/2) (from Ch. 120, par. 439.102)
10 Sec. 2. In this Act:
11 "Transfer" means any transfer of the title to property or
12 of the ownership of property whether or not the transferor
13 retains title as security for the payment of amounts due him
14 from the transferee. On and after January 1, 2025, "transfer"
15 also means any transfer of the possession or control of, the
16 right to possess or control, or a license to use, but not title
17 to, tangible personal property.
18 "Lease" means a transfer of the possession or control of,
19 the right to possess or control, or a license to use, but not
20 title to, tangible personal property for a fixed or
21 indeterminate term for consideration, regardless of the name
22 by which the transaction is called. "Lease" does not include a
23 lease entered into merely as a security agreement that does
24 not involve a transfer of possession or control from the
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1 lessor to the lessee.
2 On and after January 1, 2025, the term "sale", when used in
3 this Act with respect to tangible personal property, includes
4 a lease.
5 "Cost Price" means the consideration paid by the
6 serviceman for a purchase, including, on and after January 1,
7 2025, a lease, valued in money, whether paid in money or
8 otherwise, including cash, credits and services, and shall be
9 determined without any deduction on account of the supplier's
10 cost of the property sold or on account of any other expense
11 incurred by the supplier. When a serviceman contracts out part
12 or all of the services required in his sale of service, it
13 shall be presumed that the cost price to the serviceman of the
14 property transferred to him by his or her subcontractor is
15 equal to 50% of the subcontractor's charges to the serviceman
16 in the absence of proof of the consideration paid by the
17 subcontractor for the purchase of such property.
18 "Department" means the Department of Revenue.
19 "Person" means any natural individual, firm, partnership,
20 association, joint stock company, joint venture, public or
21 private corporation, limited liability company, and any
22 receiver, executor, trustee, guardian or other representative
23 appointed by order of any court.
24 "Sale of Service" means any transaction except:
25 (a) A retail sale of tangible personal property taxable
26 under the Retailers' Occupation Tax Act or under the Use Tax
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1 Act.
2 (b) A sale of tangible personal property for the purpose
3 of resale made in compliance with Section 2c of the Retailers'
4 Occupation Tax Act.
5 (c) Except as hereinafter provided, a sale or transfer of
6 tangible personal property as an incident to the rendering of
7 service for or by any governmental body or for or by any
8 corporation, society, association, foundation or institution
9 organized and operated exclusively for charitable, religious
10 or educational purposes or any not-for-profit corporation,
11 society, association, foundation, institution or organization
12 which has no compensated officers or employees and which is
13 organized and operated primarily for the recreation of persons
14 55 years of age or older. A limited liability company may
15 qualify for the exemption under this paragraph only if the
16 limited liability company is organized and operated
17 exclusively for educational purposes.
18 (d) (Blank).
19 (d-1) A sale or transfer of tangible personal property as
20 an incident to the rendering of service for owners or lessors,
21 lessees, or shippers of tangible personal property which is
22 utilized by interstate carriers for hire for use as rolling
23 stock moving in interstate commerce, and equipment operated by
24 a telecommunications provider, licensed as a common carrier by
25 the Federal Communications Commission, which is permanently
26 installed in or affixed to aircraft moving in interstate
HB2755 Enrolled - 341 - LRB104 08253 BDA 18303 b
1 commerce.
2 (d-1.1) On and after July 1, 2003 and through June 30,
3 2004, a sale or transfer of a motor vehicle of the second
4 division with a gross vehicle weight in excess of 8,000 pounds
5 as an incident to the rendering of service if that motor
6 vehicle is subject to the commercial distribution fee imposed
7 under Section 3-815.1 of the Illinois Vehicle Code. Beginning
8 on July 1, 2004 and through June 30, 2005, the use in this
9 State of motor vehicles of the second division: (i) with a
10 gross vehicle weight rating in excess of 8,000 pounds; (ii)
11 that are subject to the commercial distribution fee imposed
12 under Section 3-815.1 of the Illinois Vehicle Code; and (iii)
13 that are primarily used for commercial purposes. Through June
14 30, 2005, this exemption applies to repair and replacement
15 parts added after the initial purchase of such a motor vehicle
16 if that motor vehicle is used in a manner that would qualify
17 for the rolling stock exemption otherwise provided for in this
18 Act. For purposes of this paragraph, "used for commercial
19 purposes" means the transportation of persons or property in
20 furtherance of any commercial or industrial enterprise whether
21 for-hire or not.
22 (d-2) The repairing, reconditioning or remodeling, for a
23 common carrier by rail, of tangible personal property which
24 belongs to such carrier for hire, and as to which such carrier
25 receives the physical possession of the repaired,
26 reconditioned or remodeled item of tangible personal property
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1 in Illinois, and which such carrier transports, or shares with
2 another common carrier in the transportation of such property,
3 out of Illinois on a standard uniform bill of lading showing
4 the person who repaired, reconditioned or remodeled the
5 property as the shipper or consignor of such property to a
6 destination outside Illinois, for use outside Illinois.
7 (d-3) A sale or transfer of tangible personal property
8 which is produced by the seller thereof on special order in
9 such a way as to have made the applicable tax the Service
10 Occupation Tax or the Service Use Tax, rather than the
11 Retailers' Occupation Tax or the Use Tax, for an interstate
12 carrier by rail which receives the physical possession of such
13 property in Illinois, and which transports such property, or
14 shares with another common carrier in the transportation of
15 such property, out of Illinois on a standard uniform bill of
16 lading showing the seller of the property as the shipper or
17 consignor of such property to a destination outside Illinois,
18 for use outside Illinois.
19 (d-4) Until January 1, 1997, a sale, by a registered
20 serviceman paying tax under this Act to the Department, of
21 special order printed materials delivered outside Illinois and
22 which are not returned to this State, if delivery is made by
23 the seller or agent of the seller, including an agent who
24 causes the product to be delivered outside Illinois by a
25 common carrier or the U.S. postal service.
26 (e) A sale or transfer of machinery and equipment used
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1 primarily in the process of the manufacturing or assembling,
2 either in an existing, an expanded or a new manufacturing
3 facility, of tangible personal property for wholesale or
4 retail sale or lease, whether such sale or lease is made
5 directly by the manufacturer or by some other person, whether
6 the materials used in the process are owned by the
7 manufacturer or some other person, or whether such sale or
8 lease is made apart from or as an incident to the seller's
9 engaging in a service occupation and the applicable tax is a
10 Service Occupation Tax or Service Use Tax, rather than
11 Retailers' Occupation Tax or Use Tax. The exemption provided
12 by this paragraph (e) includes production related tangible
13 personal property, as defined in Section 3-50 of the Use Tax
14 Act, purchased on or after July 1, 2019. The exemption
15 provided by this paragraph (e) does not include machinery and
16 equipment used in (i) the generation of electricity for
17 wholesale or retail sale; (ii) the generation or treatment of
18 natural or artificial gas for wholesale or retail sale that is
19 delivered to customers through pipes, pipelines, or mains; or
20 (iii) the treatment of water for wholesale or retail sale that
21 is delivered to customers through pipes, pipelines, or mains.
22 The provisions of Public Act 98-583 are declaratory of
23 existing law as to the meaning and scope of this exemption. The
24 exemption under this subsection (e) is exempt from the
25 provisions of Section 3-75.
26 (f) Until July 1, 2003, the sale or transfer of
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1 distillation machinery and equipment, sold as a unit or kit
2 and assembled or installed by the retailer, which machinery
3 and equipment is certified by the user to be used only for the
4 production of ethyl alcohol that will be used for consumption
5 as motor fuel or as a component of motor fuel for the personal
6 use of such user and not subject to sale or resale.
7 (g) At the election of (i) any serviceman not required to
8 be otherwise registered as a retailer under Section 2a of the
9 Retailers' Occupation Tax Act; or (ii) beginning January 1,
10 2026, any servicemen maintaining a place of business in this
11 State who does not make any retail sales of tangible personal
12 property to purchasers in Illinois, made for each fiscal year,
13 sales of service in which the aggregate annual cost price of
14 tangible personal property transferred as an incident to the
15 sales of service is less than 35% (75% in the case of
16 servicemen transferring prescription drugs or servicemen
17 engaged in graphic arts production) of the aggregate annual
18 total gross receipts from all sales of service. The purchase
19 of such tangible personal property by the serviceman shall be
20 subject to tax under the Retailers' Occupation Tax Act and the
21 Use Tax Act. However, if a primary serviceman who has made the
22 election described in this paragraph subcontracts service work
23 to a secondary serviceman who has also made the election
24 described in this paragraph, the primary serviceman does not
25 incur a Use Tax liability if the secondary serviceman (i) has
26 paid or will pay Use Tax on his or her cost price of any
HB2755 Enrolled - 345 - LRB104 08253 BDA 18303 b
1 tangible personal property transferred to the primary
2 serviceman and (ii) certifies that fact in writing to the
3 primary serviceman. Beginning January 1, 2026, this election
4 shall not apply to any sale of service through a marketplace
5 that has met the threshold in subsection (d) of Section 3 of
6 this Act. All transactions over such a marketplace shall be
7 subject to the tax imposed under Section 3-10 of this Act.
8 Tangible personal property transferred incident to the
9 completion of a maintenance agreement is exempt from the tax
10 imposed pursuant to this Act.
11 Exemption (e) also includes machinery and equipment used
12 in the general maintenance or repair of such exempt machinery
13 and equipment or for in-house manufacture of exempt machinery
14 and equipment. On and after July 1, 2017, exemption (e) also
15 includes graphic arts machinery and equipment, as defined in
16 paragraph (5) of Section 3-5. The machinery and equipment
17 exemption does not include machinery and equipment used in (i)
18 the generation of electricity for wholesale or retail sale;
19 (ii) the generation or treatment of natural or artificial gas
20 for wholesale or retail sale that is delivered to customers
21 through pipes, pipelines, or mains; or (iii) the treatment of
22 water for wholesale or retail sale that is delivered to
23 customers through pipes, pipelines, or mains. The provisions
24 of Public Act 98-583 are declaratory of existing law as to the
25 meaning and scope of this exemption. For the purposes of
26 exemption (e), each of these terms shall have the following
HB2755 Enrolled - 346 - LRB104 08253 BDA 18303 b
1 meanings: (1) "manufacturing process" shall mean the
2 production of any article of tangible personal property,
3 whether such article is a finished product or an article for
4 use in the process of manufacturing or assembling a different
5 article of tangible personal property, by procedures commonly
6 regarded as manufacturing, processing, fabricating, or
7 refining which changes some existing material or materials
8 into a material with a different form, use or name. In relation
9 to a recognized integrated business composed of a series of
10 operations which collectively constitute manufacturing, or
11 individually constitute manufacturing operations, the
12 manufacturing process shall be deemed to commence with the
13 first operation or stage of production in the series, and
14 shall not be deemed to end until the completion of the final
15 product in the last operation or stage of production in the
16 series; and further for purposes of exemption (e),
17 photoprocessing is deemed to be a manufacturing process of
18 tangible personal property for wholesale or retail sale; (2)
19 "assembling process" shall mean the production of any article
20 of tangible personal property, whether such article is a
21 finished product or an article for use in the process of
22 manufacturing or assembling a different article of tangible
23 personal property, by the combination of existing materials in
24 a manner commonly regarded as assembling which results in a
25 material of a different form, use or name; (3) "machinery"
26 shall mean major mechanical machines or major components of
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1 such machines contributing to a manufacturing or assembling
2 process; and (4) "equipment" shall include any independent
3 device or tool separate from any machinery but essential to an
4 integrated manufacturing or assembly process; including
5 computers used primarily in a manufacturer's computer assisted
6 design, computer assisted manufacturing (CAD/CAM) system; or
7 any subunit or assembly comprising a component of any
8 machinery or auxiliary, adjunct or attachment parts of
9 machinery, such as tools, dies, jigs, fixtures, patterns and
10 molds; or any parts which require periodic replacement in the
11 course of normal operation; but shall not include hand tools.
12 Equipment includes chemicals or chemicals acting as catalysts
13 but only if the chemicals or chemicals acting as catalysts
14 effect a direct and immediate change upon a product being
15 manufactured or assembled for wholesale or retail sale or
16 lease. The purchaser of such machinery and equipment who has
17 an active resale registration number shall furnish such number
18 to the seller at the time of purchase. The purchaser of such
19 machinery and equipment and tools without an active resale
20 registration number shall furnish to the seller a certificate
21 of exemption stating facts establishing the exemption, which
22 certificate shall be available to the Department for
23 inspection or audit.
24 Except as provided in Section 2d of this Act, the rolling
25 stock exemption applies to rolling stock used by an interstate
26 carrier for hire, even just between points in Illinois, if
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1 such rolling stock transports, for hire, persons whose
2 journeys or property whose shipments originate or terminate
3 outside Illinois.
4 Any informal rulings, opinions or letters issued by the
5 Department in response to an inquiry or request for any
6 opinion from any person regarding the coverage and
7 applicability of exemption (e) to specific devices shall be
8 published, maintained as a public record, and made available
9 for public inspection and copying. If the informal ruling,
10 opinion or letter contains trade secrets or other confidential
11 information, where possible the Department shall delete such
12 information prior to publication. Whenever such informal
13 rulings, opinions, or letters contain any policy of general
14 applicability, the Department shall formulate and adopt such
15 policy as a rule in accordance with the provisions of the
16 Illinois Administrative Procedure Act.
17 On and after July 1, 1987, no entity otherwise eligible
18 under exemption (c) of this Section shall make tax-free
19 purchases unless it has an active exemption identification
20 number issued by the Department.
21 "Serviceman" means any person who is engaged in the
22 occupation of making sales of service.
23 "Sale at Retail" means "sale at retail" as defined in the
24 Retailers' Occupation Tax Act, which, on and after January 1,
25 2025, is defined to include leases.
26 "Supplier" means any person who makes sales of tangible
HB2755 Enrolled - 349 - LRB104 08253 BDA 18303 b
1 personal property to servicemen for the purpose of resale as
2 an incident to a sale of service.
3 "Serviceman maintaining a place of business in this State"
4 has the meaning given to that term in Section 2 of the Service
5 Use Tax Act.
6 "Marketplace" means a physical or electronic place, forum,
7 platform, application, or other method by which a marketplace
8 serviceman makes or offers to make sales of service.
9 "Marketplace facilitator" means a person who, pursuant to
10 an agreement with an unrelated third-party marketplace
11 serviceman, directly or indirectly through one or more
12 affiliates facilitates sales of service by the unrelated
13 third-party marketplace serviceman through:
14 (1) listing or advertising for sale by the marketplace
15 serviceman in a marketplace, sales of service that are
16 subject to tax under this Act; and
17 (2) either directly or indirectly, through agreements
18 or arrangements with third parties, collecting payment
19 from the customer and transmitting that payment to the
20 marketplace serviceman regardless of whether the
21 marketplace facilitator receives compensation or other
22 consideration in exchange for its services.
23 "Marketplace serviceman" means a person that makes or
24 offers to make a sale of service through a marketplace
25 operated by an unrelated third-party marketplace facilitator.
26 (Source: P.A. 103-592, eff. 1-1-25.)
HB2755 Enrolled - 350 - LRB104 08253 BDA 18303 b
1 (35 ILCS 115/3) (from Ch. 120, par. 439.103)
2 Sec. 3. Tax imposed.
3 (a) A tax is imposed upon all persons engaged in the
4 business of making sales of service (referred to as
5 "servicemen") on all tangible personal property transferred,
6 including, on and after January 1, 2025, transferred by lease,
7 as an incident of a sale of service, including computer
8 software, and including photographs, negatives, and positives
9 that are the product of photoprocessing, but not including
10 products of photoprocessing produced for use in motion
11 pictures for public commercial exhibition. Beginning January
12 1, 2001, prepaid telephone calling arrangements shall be
13 considered tangible personal property subject to the tax
14 imposed under this Act regardless of the form in which those
15 arrangements may be embodied, transmitted, or fixed by any
16 method now known or hereafter developed. Sales of (1)
17 electricity delivered to customers by wire; (2) natural or
18 artificial gas that is delivered to customers through pipes,
19 pipelines, or mains; and (3) water that is delivered to
20 customers through pipes, pipelines, or mains are not subject
21 to tax under this Act. The provisions of this amendatory Act of
22 the 98th General Assembly are declaratory of existing law as
23 to the meaning and scope of this Act.
24 (b) Beginning on January 1, 2026, a serviceman maintaining
25 a place of business in this State that makes sales of service
HB2755 Enrolled - 351 - LRB104 08253 BDA 18303 b
1 to Illinois customers from a location or locations outside of
2 Illinois is engaged in the business of making sales of service
3 in Illinois for the purposes of this Act. A qualifying
4 serviceman under this subsection (b) is liable for all
5 applicable State and locally imposed service occupation taxes
6 administered by the Department on all tangible personal
7 property transferred as an incident of a sale of service made
8 by the serviceman to Illinois customers from locations outside
9 of Illinois.
10 (c) A serviceman maintaining a place of business in this
11 State that is required to collect taxes imposed under the
12 Service Use Tax Act on sales of service made to Illinois
13 purchasers shall be liable to the Department for such taxes,
14 except when the serviceman maintaining a place of business in
15 this State is relieved of the duty to remit such taxes by
16 virtue of having paid to the Department taxes imposed by this
17 Act in accordance with this Section upon such sales.
18 (d) Beginning January 1, 2026, a marketplace facilitator
19 whose cumulative gross receipts from sales of service to
20 purchasers in Illinois by the marketplace facilitator and by
21 marketplace servicemen selling through the marketplace are
22 $100,000 or more is engaged in the business of making sales of
23 service in Illinois for purposes of this Act for each sale of
24 service made through its marketplace.
25 A marketplace facilitator who meets the threshold of this
26 subsection (d) is required to remit the applicable State
HB2755 Enrolled - 352 - LRB104 08253 BDA 18303 b
1 service occupation taxes under this Act and local service
2 occupation taxes administered by the Department on all taxable
3 transfers of tangible personal property made incident to sales
4 of service by the marketplace facilitator or facilitated for
5 marketplace servicemen to customers in this State. A
6 marketplace facilitator transferring or facilitating the
7 transfer of tangible personal property incident to a sale of
8 service to customers in this State is subject to all
9 applicable procedures and requirements of this Act.
10 The marketplace facilitator shall determine on a quarterly
11 basis, ending on the last day of March, June, September, and
12 December, whether the marketplace facilitator meets the
13 threshold of this subsection (d) for the preceding 12-month
14 period. If the marketplace facilitator meets the threshold for
15 a 12-month period, the marketplace facilitator is considered a
16 serviceman maintaining a place of business in this State and
17 is required to remit the tax imposed under this Act and all
18 service occupation tax imposed by local taxing jurisdictions
19 in Illinois, provided such local taxes are administered by the
20 Department, and to file all applicable returns for one year.
21 At the end of the one-year period, the marketplace facilitator
22 shall determine whether the marketplace facilitator met the
23 threshold for the preceding 12-month period. If the
24 marketplace facilitator met the threshold for the preceding
25 12-month period, the marketplace facilitator is considered a
26 serviceman maintaining a place of business in this State and
HB2755 Enrolled - 353 - LRB104 08253 BDA 18303 b
1 is required to remit all applicable State and local service
2 occupation taxes and file returns for the subsequent year. If
3 at the end of a one-year period a marketplace facilitator that
4 was required to remit the tax imposed under this Act
5 determines that the marketplace facilitator did not meet the
6 threshold during the preceding 12-month period, the
7 marketplace facilitator shall subsequently determine on a
8 quarterly basis, ending on the last day of March, June,
9 September, and December, whether he or she meets the threshold
10 for the preceding 12-month period.
11 (e) A marketplace facilitator shall be entitled to any
12 credits, deductions, or adjustments to the sales price
13 otherwise provided to the marketplace serviceman, in addition
14 to any such adjustments provided directly to the marketplace
15 facilitator. This Section pertains to, but is not limited to,
16 adjustments such as discounts, coupons, and rebates. In
17 addition, a marketplace facilitator shall be entitled to the
18 vendors' discount provided in Section 9 of the Service
19 Occupation Tax Act on all marketplace sales of service, and
20 the marketplace serviceman shall not include sales of service
21 made through a marketplace facilitator when computing any
22 vendors' discount on remaining sales of service. Marketplace
23 facilitators shall report and remit the applicable State and
24 local service occupation taxes on sales of service facilitated
25 for marketplace servicemen separately from any service
26 occupation or service use tax collected on taxable sales of
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1 service made directly by the marketplace facilitator or its
2 affiliates.
3 The marketplace facilitator is liable for the remittance
4 of all applicable State service occupation taxes under this
5 Act and local service occupation taxes administered by the
6 Department on sales of service through the marketplace and is
7 subject to audit on all such sales of service. The Department
8 shall not audit marketplace servicemen for their marketplace
9 sales of service where a marketplace facilitator remitted the
10 applicable State and local service occupation taxes unless the
11 marketplace facilitator seeks relief as a result of incorrect
12 information provided to the marketplace facilitator by a
13 marketplace serviceman as set forth in this Section. The
14 marketplace facilitator shall not be held liable for tax on
15 any sales of service made by a marketplace serviceman that
16 take place outside of the marketplace and which are not a part
17 of any agreement between a marketplace facilitator and a
18 marketplace serviceman. In addition, marketplace facilitators
19 shall not be held liable to State and local governments of
20 Illinois for having charged and remitted an incorrect amount
21 of State and local service occupation tax if, at the time of
22 the sale of service, the tax is computed based on erroneous
23 data provided by the State in database files on tax rates,
24 boundaries, or taxing jurisdictions or incorrect information
25 provided to the marketplace facilitator by the marketplace
26 serviceman, including the marketplace serviceman's cost ratio
HB2755 Enrolled - 355 - LRB104 08253 BDA 18303 b
1 and registration status.
2 (f) A marketplace facilitator shall:
3 (1) certify to each marketplace serviceman that the
4 marketplace facilitator assumes the rights and duties of a
5 serviceman under this Act with respect to sales of service
6 made by the marketplace serviceman through the
7 marketplace; and
8 (2) remit taxes imposed by this Act as required by
9 this Act for sales of service made through the
10 marketplace.
11 (g) A marketplace serviceman shall retain books and
12 records for all sales of service made through a marketplace in
13 accordance with the requirements of Section 11 of this Act.
14 (h) A marketplace serviceman shall furnish to the
15 marketplace facilitator information that is necessary for the
16 marketplace facilitator to correctly remit taxes for a sale of
17 service. Such information includes the cost price of any item
18 transferred incident to a sale of service under this Act when
19 the cost price of an item exceeds 50% of the total invoice
20 price of a sale of service made through the marketplace. The
21 information may include a certification that an item
22 transferred incident to a sale of service under this Act is
23 taxable, not taxable, exempt from taxation, or taxable at a
24 specified rate. A marketplace serviceman shall be held
25 harmless for liability for the tax imposed under this Act when
26 a marketplace facilitator fails to correctly collect and remit
HB2755 Enrolled - 356 - LRB104 08253 BDA 18303 b
1 tax after having been provided with information by a
2 marketplace serviceman to correctly collect and remit taxes
3 imposed under this Act.
4 (i) If the marketplace facilitator demonstrates to the
5 satisfaction of the Department that its failure to correctly
6 collect and remit tax on a sale of service resulted from the
7 marketplace facilitator's good faith reliance on incorrect or
8 insufficient information provided by a marketplace serviceman,
9 it shall be relieved of liability for the tax on that sale of
10 service and the marketplace serviceman shall be liable for any
11 resulting tax due.
12 (j) A marketplace facilitator is subject to audit on all
13 marketplace sales of service for which it is considered to be
14 the serviceman, but shall not be liable for tax or subject to
15 audit on sales of service made by marketplace servicemen
16 outside of the marketplace.
17 (k) A marketplace facilitator required to collect taxes
18 imposed under the Service Use Tax Act on marketplace sales of
19 service made to Illinois purchasers shall be liable to the
20 Department for such taxes, except when the marketplace
21 facilitator is relieved of the duty to remit such taxes by
22 virtue of having paid to the Department taxes imposed by this
23 Act in accordance with this Section from such sales of
24 service.
25 (l) Nothing in this Section shall allow the Department to
26 collect service occupation taxes from both the marketplace
HB2755 Enrolled - 357 - LRB104 08253 BDA 18303 b
1 facilitator and marketplace serviceman on the same
2 transaction.
3 (m) If, for any reason, the Department is prohibited from
4 enforcing the marketplace facilitator's duty under this Act to
5 remit taxes pursuant to this Section, the duty to remit such
6 taxes remains with the marketplace serviceman.
7 The imposition of the tax under this Act on tangible
8 personal property transferred by lease by persons engaged in
9 the business of making sales of service applies to leases in
10 effect, entered into, or renewed on or after January 1, 2025.
11 In the case of leases, except as otherwise provided in this
12 Act, the serviceman who is a lessor must remit for each tax
13 return period only the tax applicable to that part of the
14 selling price actually received during such tax return period.
15 (Source: P.A. 103-592, eff. 1-1-25.)
16 (35 ILCS 115/3-10)
17 Sec. 3-10. Rate of tax. Unless otherwise provided in this
18 Section, the tax imposed by this Act is at the rate of 6.25% of
19 the "selling price", as defined in Section 2 of the Service Use
20 Tax Act, of the tangible personal property, including, on and
21 after January 1, 2025, tangible personal property transferred
22 by lease. For the purpose of computing this tax, in no event
23 shall the "selling price" be less than the cost price to the
24 serviceman of the tangible personal property transferred. The
25 selling price of each item of tangible personal property
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1 transferred as an incident of a sale of service may be shown as
2 a distinct and separate item on the serviceman's billing to
3 the service customer. If the selling price is not so shown, the
4 selling price of the tangible personal property is deemed to
5 be 50% of the serviceman's entire billing to the service
6 customer. When, however, a serviceman contracts to design,
7 develop, and produce special order machinery or equipment, the
8 tax imposed by this Act shall be based on the serviceman's cost
9 price of the tangible personal property transferred incident
10 to the completion of the contract.
11 Beginning on July 1, 2000 and through December 31, 2000,
12 with respect to motor fuel, as defined in Section 1.1 of the
13 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
14 the Use Tax Act, the tax is imposed at the rate of 1.25%.
15 With respect to gasohol, as defined in the Use Tax Act, the
16 tax imposed by this Act shall apply to (i) 70% of the cost
17 price of property transferred as an incident to the sale of
18 service on or after January 1, 1990, and before July 1, 2003,
19 (ii) 80% of the selling price of property transferred as an
20 incident to the sale of service on or after July 1, 2003 and on
21 or before July 1, 2017, (iii) 100% of the selling price of
22 property transferred as an incident to the sale of service
23 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
24 the selling price of property transferred as an incident to
25 the sale of service on or after January 1, 2024 and on or
26 before December 31, 2028, and (v) 100% of the selling price of
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1 property transferred as an incident to the sale of service
2 after December 31, 2028. If, at any time, however, the tax
3 under this Act on sales of gasohol, as defined in the Use Tax
4 Act, is imposed at the rate of 1.25%, then the tax imposed by
5 this Act applies to 100% of the proceeds of sales of gasohol
6 made during that time.
7 With respect to mid-range ethanol blends, as defined in
8 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
9 applies to (i) 80% of the selling price of property
10 transferred as an incident to the sale of service on or after
11 January 1, 2024 and on or before December 31, 2028 and (ii)
12 100% of the selling price of property transferred as an
13 incident to the sale of service after December 31, 2028. If, at
14 any time, however, the tax under this Act on sales of mid-range
15 ethanol blends is imposed at the rate of 1.25%, then the tax
16 imposed by this Act applies to 100% of the selling price of
17 mid-range ethanol blends transferred as an incident to the
18 sale of service during that time.
19 With respect to majority blended ethanol fuel, as defined
20 in the Use Tax Act, the tax imposed by this Act does not apply
21 to the selling price of property transferred as an incident to
22 the sale of service on or after July 1, 2003 and on or before
23 December 31, 2028 but applies to 100% of the selling price
24 thereafter.
25 With respect to biodiesel blends, as defined in the Use
26 Tax Act, with no less than 1% and no more than 10% biodiesel,
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1 the tax imposed by this Act applies to (i) 80% of the selling
2 price of property transferred as an incident to the sale of
3 service on or after July 1, 2003 and on or before December 31,
4 2018 and (ii) 100% of the proceeds of the selling price after
5 December 31, 2018 and before January 1, 2024. On and after
6 January 1, 2024 and on or before December 31, 2030, the
7 taxation of biodiesel, renewable diesel, and biodiesel blends
8 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
9 at any time, however, the tax under this Act on sales of
10 biodiesel blends, as defined in the Use Tax Act, with no less
11 than 1% and no more than 10% biodiesel is imposed at the rate
12 of 1.25%, then the tax imposed by this Act applies to 100% of
13 the proceeds of sales of biodiesel blends with no less than 1%
14 and no more than 10% biodiesel made during that time.
15 With respect to biodiesel, as defined in the Use Tax Act,
16 and biodiesel blends, as defined in the Use Tax Act, with more
17 than 10% but no more than 99% biodiesel material, the tax
18 imposed by this Act does not apply to the proceeds of the
19 selling price of property transferred as an incident to the
20 sale of service on or after July 1, 2003 and on or before
21 December 31, 2023. On and after January 1, 2024 and on or
22 before December 31, 2030, the taxation of biodiesel, renewable
23 diesel, and biodiesel blends shall be as provided in Section
24 3-5.1 of the Use Tax Act.
25 At the election of any registered serviceman made for each
26 fiscal year, for whom sales of service in which the aggregate
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1 annual cost price of tangible personal property transferred as
2 an incident to the sales of service is less than 35%, or 75% in
3 the case of servicemen transferring prescription drugs or
4 servicemen engaged in graphic arts production, of the
5 aggregate annual total gross receipts from all sales of
6 service, the tax imposed by this Act shall be based on the
7 serviceman's cost price of the tangible personal property
8 transferred incident to the sale of those services. This
9 election may also be made by a serviceman maintaining a place
10 of business in this State who makes retail sales from outside
11 of this State to Illinois customers but is not required to be
12 registered under Section 2a of the Retailers' Occupation Tax
13 Act. Beginning January 1, 2026, this election shall not apply
14 to any sale of service made through a marketplace that has met
15 the threshold in subsection (d) of Section 3 of this Act.
16 Beginning January 1, 2026, the tax shall be imposed at the
17 rate of 6.25% of 50% of the entire billing to the service
18 customer for all sales of service made through a marketplace
19 that has met the threshold in subsection (d) of Section 3 of
20 this Act. In no event shall 50% of the entire billing be less
21 than the cost price of the property to the marketplace
22 serviceman or the marketplace facilitator on its own sales of
23 service.
24 Until July 1, 2022 and from July 1, 2023 through December
25 31, 2025, the tax shall be imposed at the rate of 1% on food
26 prepared for immediate consumption and transferred incident to
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1 a sale of service subject to this Act or the Service Use Tax
2 Act by an entity licensed under the Hospital Licensing Act,
3 the Nursing Home Care Act, the Assisted Living and Shared
4 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
5 Specialized Mental Health Rehabilitation Act of 2013, or the
6 Child Care Act of 1969, or an entity that holds a permit issued
7 pursuant to the Life Care Facilities Act. Until July 1, 2022
8 and from July 1, 2023 through December 31, 2025, the tax shall
9 also be imposed at the rate of 1% on food for human consumption
10 that is to be consumed off the premises where it is sold (other
11 than alcoholic beverages, food consisting of or infused with
12 adult use cannabis, soft drinks, and food that has been
13 prepared for immediate consumption and is not otherwise
14 included in this paragraph).
15 Beginning on July 1, 2022 and until July 1, 2023, the tax
16 shall be imposed at the rate of 0% on food prepared for
17 immediate consumption and transferred incident to a sale of
18 service subject to this Act or the Service Use Tax Act by an
19 entity licensed under the Hospital Licensing Act, the Nursing
20 Home Care Act, the Assisted Living and Shared Housing Act, the
21 ID/DD Community Care Act, the MC/DD Act, the Specialized
22 Mental Health Rehabilitation Act of 2013, or the Child Care
23 Act of 1969, or an entity that holds a permit issued pursuant
24 to the Life Care Facilities Act. Beginning July 1, 2022 and
25 until July 1, 2023, the tax shall also be imposed at the rate
26 of 0% on food for human consumption that is to be consumed off
HB2755 Enrolled - 363 - LRB104 08253 BDA 18303 b
1 the premises where it is sold (other than alcoholic beverages,
2 food consisting of or infused with adult use cannabis, soft
3 drinks, and food that has been prepared for immediate
4 consumption and is not otherwise included in this paragraph).
5 On and after January 1, 2026, food prepared for immediate
6 consumption and transferred incident to a sale of service
7 subject to this Act or the Service Use Tax Act by an entity
8 licensed under the Hospital Licensing Act, the Nursing Home
9 Care Act, the Assisted Living and Shared Housing Act, the
10 ID/DD Community Care Act, the MC/DD Act, the Specialized
11 Mental Health Rehabilitation Act of 2013, or the Child Care
12 Act of 1969, or an entity that holds a permit issued pursuant
13 to the Life Care Facilities Act is exempt from the tax imposed
14 by this Act. On and after January 1, 2026, food for human
15 consumption that is to be consumed off the premises where it is
16 sold (other than alcoholic beverages, food consisting of or
17 infused with adult use cannabis, soft drinks, candy, and food
18 that has been prepared for immediate consumption and is not
19 otherwise included in this paragraph) is exempt from the tax
20 imposed by this Act.
21 The tax shall be imposed at the rate of 1% on prescription
22 and nonprescription medicines, drugs, medical appliances,
23 products classified as Class III medical devices by the United
24 States Food and Drug Administration that are used for cancer
25 treatment pursuant to a prescription, as well as any
26 accessories and components related to those devices,
HB2755 Enrolled - 364 - LRB104 08253 BDA 18303 b
1 modifications to a motor vehicle for the purpose of rendering
2 it usable by a person with a disability, and insulin, blood
3 sugar testing materials, syringes, and needles used by human
4 diabetics. For the purposes of this Section, until September
5 1, 2009: the term "soft drinks" means any complete, finished,
6 ready-to-use, non-alcoholic drink, whether carbonated or not,
7 including, but not limited to, soda water, cola, fruit juice,
8 vegetable juice, carbonated water, and all other preparations
9 commonly known as soft drinks of whatever kind or description
10 that are contained in any closed or sealed can, carton, or
11 container, regardless of size; but "soft drinks" does not
12 include coffee, tea, non-carbonated water, infant formula,
13 milk or milk products as defined in the Grade A Pasteurized
14 Milk and Milk Products Act, or drinks containing 50% or more
15 natural fruit or vegetable juice.
16 Notwithstanding any other provisions of this Act,
17 beginning September 1, 2009, "soft drinks" means non-alcoholic
18 beverages that contain natural or artificial sweeteners. "Soft
19 drinks" does not include beverages that contain milk or milk
20 products, soy, rice or similar milk substitutes, or greater
21 than 50% of vegetable or fruit juice by volume.
22 Until August 1, 2009, and notwithstanding any other
23 provisions of this Act, "food for human consumption that is to
24 be consumed off the premises where it is sold" includes all
25 food sold through a vending machine, except soft drinks and
26 food products that are dispensed hot from a vending machine,
HB2755 Enrolled - 365 - LRB104 08253 BDA 18303 b
1 regardless of the location of the vending machine. Beginning
2 August 1, 2009, and notwithstanding any other provisions of
3 this Act, "food for human consumption that is to be consumed
4 off the premises where it is sold" includes all food sold
5 through a vending machine, except soft drinks, candy, and food
6 products that are dispensed hot from a vending machine,
7 regardless of the location of the vending machine.
8 Notwithstanding any other provisions of this Act,
9 beginning September 1, 2009, "food for human consumption that
10 is to be consumed off the premises where it is sold" does not
11 include candy. For purposes of this Section, "candy" means a
12 preparation of sugar, honey, or other natural or artificial
13 sweeteners in combination with chocolate, fruits, nuts or
14 other ingredients or flavorings in the form of bars, drops, or
15 pieces. "Candy" does not include any preparation that contains
16 flour or requires refrigeration.
17 Notwithstanding any other provisions of this Act,
18 beginning September 1, 2009, "nonprescription medicines and
19 drugs" does not include grooming and hygiene products. For
20 purposes of this Section, "grooming and hygiene products"
21 includes, but is not limited to, soaps and cleaning solutions,
22 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
23 lotions and screens, unless those products are available by
24 prescription only, regardless of whether the products meet the
25 definition of "over-the-counter-drugs". For the purposes of
26 this paragraph, "over-the-counter-drug" means a drug for human
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1 use that contains a label that identifies the product as a drug
2 as required by 21 CFR 201.66. The "over-the-counter-drug"
3 label includes:
4 (A) a "Drug Facts" panel; or
5 (B) a statement of the "active ingredient(s)" with a
6 list of those ingredients contained in the compound,
7 substance or preparation.
8 Beginning on January 1, 2014 (the effective date of Public
9 Act 98-122), "prescription and nonprescription medicines and
10 drugs" includes medical cannabis purchased from a registered
11 dispensing organization under the Compassionate Use of Medical
12 Cannabis Program Act.
13 As used in this Section, "adult use cannabis" means
14 cannabis subject to tax under the Cannabis Cultivation
15 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
16 and does not include cannabis subject to tax under the
17 Compassionate Use of Medical Cannabis Program Act.
18 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
19 102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
20 Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
21 103-154, eff. 6-30-23; 103-592, eff. 1-1-25; 103-781, eff.
22 8-5-24; revised 11-26-24.)
23 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
24 Sec. 9. Each serviceman required or authorized to collect
25 the tax herein imposed shall pay to the Department the amount
HB2755 Enrolled - 367 - LRB104 08253 BDA 18303 b
1 of such tax at the time when he is required to file his return
2 for the period during which such tax was collectible, less a
3 discount of 2.1% prior to January 1, 1990, and 1.75% on and
4 after January 1, 1990, or $5 per calendar year, whichever is
5 greater, which is allowed to reimburse the serviceman for
6 expenses incurred in collecting the tax, keeping records,
7 preparing and filing returns, remitting the tax, and supplying
8 data to the Department on request. On and after January 1,
9 2026, a certified service provider, as defined in the Leveling
10 the Playing Field for Illinois Retail Act, filing the return
11 under this Section on behalf of a serviceman maintaining a
12 place of business in this State shall, at the time of such
13 return, pay to the Department the amount of tax imposed by this
14 Act less a discount of 1.75%, not to exceed $1000 per month as
15 provided in this Section. A serviceman maintaining a place of
16 business in this State using a certified service provider to
17 file a return on its behalf, as provided in the Leveling the
18 Playing Field for Illinois Retail Act, is not eligible for the
19 discount. Beginning with returns due on or after January 1,
20 2025, the vendor's discount allowed in this Section, the
21 Retailers' Occupation Tax Act, the Use Tax Act, and the
22 Service Use Tax Act, including any local tax administered by
23 the Department and reported on the same return, shall not
24 exceed $1,000 per month in the aggregate. When determining the
25 discount allowed under this Section, servicemen shall include
26 the amount of tax that would have been due at the 1% rate but
HB2755 Enrolled - 368 - LRB104 08253 BDA 18303 b
1 for the 0% rate imposed under Public Act 102-700. The discount
2 under this Section is not allowed for the 1.25% portion of
3 taxes paid on aviation fuel that is subject to the revenue use
4 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
5 discount allowed under this Section is allowed only for
6 returns that are filed in the manner required by this Act. The
7 Department may disallow the discount for servicemen whose
8 certificate of registration is revoked at the time the return
9 is filed, but only if the Department's decision to revoke the
10 certificate of registration has become final.
11 Where such tangible personal property is sold under a
12 conditional sales contract, or under any other form of sale
13 wherein the payment of the principal sum, or a part thereof, is
14 extended beyond the close of the period for which the return is
15 filed, the serviceman, in collecting the tax may collect, for
16 each tax return period, only the tax applicable to the part of
17 the selling price actually received during such tax return
18 period.
19 Except as provided hereinafter in this Section, on or
20 before the twentieth day of each calendar month, such
21 serviceman shall file a return for the preceding calendar
22 month in accordance with reasonable rules and regulations to
23 be promulgated by the Department of Revenue. Such return shall
24 be filed on a form prescribed by the Department and shall
25 contain such information as the Department may reasonably
26 require. The return shall include the gross receipts which
HB2755 Enrolled - 369 - LRB104 08253 BDA 18303 b
1 were received during the preceding calendar month or quarter
2 on the following items upon which tax would have been due but
3 for the 0% rate imposed under Public Act 102-700: (i) food for
4 human consumption that is to be consumed off the premises
5 where it is sold (other than alcoholic beverages, food
6 consisting of or infused with adult use cannabis, soft drinks,
7 and food that has been prepared for immediate consumption);
8 and (ii) food prepared for immediate consumption and
9 transferred incident to a sale of service subject to this Act
10 or the Service Use Tax Act by an entity licensed under the
11 Hospital Licensing Act, the Nursing Home Care Act, the
12 Assisted Living and Shared Housing Act, the ID/DD Community
13 Care Act, the MC/DD Act, the Specialized Mental Health
14 Rehabilitation Act of 2013, or the Child Care Act of 1969, or
15 an entity that holds a permit issued pursuant to the Life Care
16 Facilities Act. The return shall also include the amount of
17 tax that would have been due on the items listed in the
18 previous sentence but for the 0% rate imposed under Public Act
19 102-700.
20 On and after January 1, 2018, with respect to servicemen
21 whose annual gross receipts average $20,000 or more, all
22 returns required to be filed pursuant to this Act shall be
23 filed electronically. Servicemen who demonstrate that they do
24 not have access to the Internet or demonstrate hardship in
25 filing electronically may petition the Department to waive the
26 electronic filing requirement.
HB2755 Enrolled - 370 - LRB104 08253 BDA 18303 b
1 The Department may require returns to be filed on a
2 quarterly basis. If so required, a return for each calendar
3 quarter shall be filed on or before the twentieth day of the
4 calendar month following the end of such calendar quarter. The
5 taxpayer shall also file a return with the Department for each
6 of the first two months of each calendar quarter, on or before
7 the twentieth day of the following calendar month, stating:
8 1. The name of the seller;
9 2. The address of the principal place of business from
10 which he engages in business as a serviceman in this
11 State;
12 3. The total amount of taxable receipts received by
13 him during the preceding calendar month, including
14 receipts from charge and time sales, but less all
15 deductions allowed by law;
16 4. The amount of credit provided in Section 2d of this
17 Act;
18 5. The amount of tax due;
19 5-5. The signature of the taxpayer; and
20 6. Such other reasonable information as the Department
21 may require.
22 Each serviceman required or authorized to collect the tax
23 herein imposed on aviation fuel acquired as an incident to the
24 purchase of a service in this State during the preceding
25 calendar month shall, instead of reporting and paying tax as
26 otherwise required by this Section, report and pay such tax on
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1 a separate aviation fuel tax return. The requirements related
2 to the return shall be as otherwise provided in this Section.
3 Notwithstanding any other provisions of this Act to the
4 contrary, servicemen transferring aviation fuel incident to
5 sales of service shall file all aviation fuel tax returns and
6 shall make all aviation fuel tax payments by electronic means
7 in the manner and form required by the Department. For
8 purposes of this Section, "aviation fuel" means jet fuel and
9 aviation gasoline.
10 If a taxpayer fails to sign a return within 30 days after
11 the proper notice and demand for signature by the Department,
12 the return shall be considered valid and any amount shown to be
13 due on the return shall be deemed assessed.
14 Notwithstanding any other provision of this Act to the
15 contrary, servicemen subject to tax on cannabis shall file all
16 cannabis tax returns and shall make all cannabis tax payments
17 by electronic means in the manner and form required by the
18 Department.
19 Prior to October 1, 2003, and on and after September 1,
20 2004 a serviceman may accept a Manufacturer's Purchase Credit
21 certification from a purchaser in satisfaction of Service Use
22 Tax as provided in Section 3-70 of the Service Use Tax Act if
23 the purchaser provides the appropriate documentation as
24 required by Section 3-70 of the Service Use Tax Act. A
25 Manufacturer's Purchase Credit certification, accepted prior
26 to October 1, 2003 or on or after September 1, 2004 by a
HB2755 Enrolled - 372 - LRB104 08253 BDA 18303 b
1 serviceman as provided in Section 3-70 of the Service Use Tax
2 Act, may be used by that serviceman to satisfy Service
3 Occupation Tax liability in the amount claimed in the
4 certification, not to exceed 6.25% of the receipts subject to
5 tax from a qualifying purchase. A Manufacturer's Purchase
6 Credit reported on any original or amended return filed under
7 this Act after October 20, 2003 for reporting periods prior to
8 September 1, 2004 shall be disallowed. Manufacturer's Purchase
9 Credit reported on annual returns due on or after January 1,
10 2005 will be disallowed for periods prior to September 1,
11 2004. No Manufacturer's Purchase Credit may be used after
12 September 30, 2003 through August 31, 2004 to satisfy any tax
13 liability imposed under this Act, including any audit
14 liability.
15 Beginning on July 1, 2023 and through December 31, 2032, a
16 serviceman may accept a Sustainable Aviation Fuel Purchase
17 Credit certification from an air common carrier-purchaser in
18 satisfaction of Service Use Tax as provided in Section 3-72 of
19 the Service Use Tax Act if the purchaser provides the
20 appropriate documentation as required by Section 3-72 of the
21 Service Use Tax Act. A Sustainable Aviation Fuel Purchase
22 Credit certification accepted by a serviceman in accordance
23 with this paragraph may be used by that serviceman to satisfy
24 service occupation tax liability (but not in satisfaction of
25 penalty or interest) in the amount claimed in the
26 certification, not to exceed 6.25% of the receipts subject to
HB2755 Enrolled - 373 - LRB104 08253 BDA 18303 b
1 tax from a sale of aviation fuel. In addition, for a sale of
2 aviation fuel to qualify to earn the Sustainable Aviation Fuel
3 Purchase Credit, servicemen must retain in their books and
4 records a certification from the producer of the aviation fuel
5 that the aviation fuel sold by the serviceman and for which a
6 sustainable aviation fuel purchase credit was earned meets the
7 definition of sustainable aviation fuel under Section 3-72 of
8 the Service Use Tax Act. The documentation must include detail
9 sufficient for the Department to determine the number of
10 gallons of sustainable aviation fuel sold.
11 If the serviceman's average monthly tax liability to the
12 Department does not exceed $200, the Department may authorize
13 his returns to be filed on a quarter annual basis, with the
14 return for January, February, and March of a given year being
15 due by April 20 of such year; with the return for April, May,
16 and June of a given year being due by July 20 of such year;
17 with the return for July, August, and September of a given year
18 being due by October 20 of such year, and with the return for
19 October, November, and December of a given year being due by
20 January 20 of the following year.
21 If the serviceman's average monthly tax liability to the
22 Department does not exceed $50, the Department may authorize
23 his returns to be filed on an annual basis, with the return for
24 a given year being due by January 20 of the following year.
25 Such quarter annual and annual returns, as to form and
26 substance, shall be subject to the same requirements as
HB2755 Enrolled - 374 - LRB104 08253 BDA 18303 b
1 monthly returns.
2 Notwithstanding any other provision in this Act concerning
3 the time within which a serviceman may file his return, in the
4 case of any serviceman who ceases to engage in a kind of
5 business which makes him responsible for filing returns under
6 this Act, such serviceman shall file a final return under this
7 Act with the Department not more than one month after
8 discontinuing such business.
9 Beginning October 1, 1993, a taxpayer who has an average
10 monthly tax liability of $150,000 or more shall make all
11 payments required by rules of the Department by electronic
12 funds transfer. Beginning October 1, 1994, a taxpayer who has
13 an average monthly tax liability of $100,000 or more shall
14 make all payments required by rules of the Department by
15 electronic funds transfer. Beginning October 1, 1995, a
16 taxpayer who has an average monthly tax liability of $50,000
17 or more shall make all payments required by rules of the
18 Department by electronic funds transfer. Beginning October 1,
19 2000, a taxpayer who has an annual tax liability of $200,000 or
20 more shall make all payments required by rules of the
21 Department by electronic funds transfer. The term "annual tax
22 liability" shall be the sum of the taxpayer's liabilities
23 under this Act, and under all other State and local occupation
24 and use tax laws administered by the Department, for the
25 immediately preceding calendar year. The term "average monthly
26 tax liability" means the sum of the taxpayer's liabilities
HB2755 Enrolled - 375 - LRB104 08253 BDA 18303 b
1 under this Act, and under all other State and local occupation
2 and use tax laws administered by the Department, for the
3 immediately preceding calendar year divided by 12. Beginning
4 on October 1, 2002, a taxpayer who has a tax liability in the
5 amount set forth in subsection (b) of Section 2505-210 of the
6 Department of Revenue Law shall make all payments required by
7 rules of the Department by electronic funds transfer.
8 Before August 1 of each year beginning in 1993, the
9 Department shall notify all taxpayers required to make
10 payments by electronic funds transfer. All taxpayers required
11 to make payments by electronic funds transfer shall make those
12 payments for a minimum of one year beginning on October 1.
13 Any taxpayer not required to make payments by electronic
14 funds transfer may make payments by electronic funds transfer
15 with the permission of the Department.
16 All taxpayers required to make payment by electronic funds
17 transfer and any taxpayers authorized to voluntarily make
18 payments by electronic funds transfer shall make those
19 payments in the manner authorized by the Department.
20 The Department shall adopt such rules as are necessary to
21 effectuate a program of electronic funds transfer and the
22 requirements of this Section.
23 Where a serviceman collects the tax with respect to the
24 selling price of tangible personal property which he sells and
25 the purchaser thereafter returns such tangible personal
26 property and the serviceman refunds the selling price thereof
HB2755 Enrolled - 376 - LRB104 08253 BDA 18303 b
1 to the purchaser, such serviceman shall also refund, to the
2 purchaser, the tax so collected from the purchaser. When
3 filing his return for the period in which he refunds such tax
4 to the purchaser, the serviceman may deduct the amount of the
5 tax so refunded by him to the purchaser from any other Service
6 Occupation Tax, Service Use Tax, Retailers' Occupation Tax, or
7 Use Tax which such serviceman may be required to pay or remit
8 to the Department, as shown by such return, provided that the
9 amount of the tax to be deducted shall previously have been
10 remitted to the Department by such serviceman. If the
11 serviceman shall not previously have remitted the amount of
12 such tax to the Department, he shall be entitled to no
13 deduction hereunder upon refunding such tax to the purchaser.
14 If experience indicates such action to be practicable, the
15 Department may prescribe and furnish a combination or joint
16 return which will enable servicemen, who are required to file
17 returns hereunder and also under the Retailers' Occupation Tax
18 Act, the Use Tax Act, or the Service Use Tax Act, to furnish
19 all the return information required by all said Acts on the one
20 form.
21 Where the serviceman has more than one business registered
22 with the Department under separate registrations hereunder,
23 such serviceman shall file separate returns for each
24 registered business.
25 The net revenue realized at the 15% rate under either
26 Section 4 or Section 5 of the Retailers' Occupation Tax Act, as
HB2755 Enrolled - 377 - LRB104 08253 BDA 18303 b
1 incorporated into this Act by Section 12, shall be deposited
2 as follows: (i) notwithstanding the provisions of this Section
3 to the contrary, the net revenue realized from the portion of
4 the rate in excess of 5% shall be deposited into the State and
5 Local Sales Tax Reform Fund; and (ii) the net revenue realized
6 from the 5% portion of the rate shall be deposited as provided
7 in this Section for the 5% portion of the 6.25% general rate
8 imposed under this Act.
9 Beginning January 1, 1990, each month the Department shall
10 pay into the Local Government Tax Fund the revenue realized
11 for the preceding month from the 1% tax imposed under this Act.
12 Beginning January 1, 1990, each month the Department shall
13 pay into the County and Mass Transit District Fund 4% of the
14 revenue realized for the preceding month from the 6.25%
15 general rate on sales of tangible personal property other than
16 aviation fuel sold on or after December 1, 2019. This
17 exception for aviation fuel only applies for so long as the
18 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
19 47133 are binding on the State.
20 Beginning August 1, 2000, each month the Department shall
21 pay into the County and Mass Transit District Fund 20% of the
22 net revenue realized for the preceding month from the 1.25%
23 rate on the selling price of motor fuel and gasohol.
24 Beginning January 1, 1990, each month the Department shall
25 pay into the Local Government Tax Fund 16% of the revenue
26 realized for the preceding month from the 6.25% general rate
HB2755 Enrolled - 378 - LRB104 08253 BDA 18303 b
1 on transfers of tangible personal property other than aviation
2 fuel sold on or after December 1, 2019. This exception for
3 aviation fuel only applies for so long as the revenue use
4 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
5 binding on the State.
6 For aviation fuel sold on or after December 1, 2019, each
7 month the Department shall pay into the State Aviation Program
8 Fund 20% of the net revenue realized for the preceding month
9 from the 6.25% general rate on the selling price of aviation
10 fuel, less an amount estimated by the Department to be
11 required for refunds of the 20% portion of the tax on aviation
12 fuel under this Act, which amount shall be deposited into the
13 Aviation Fuel Sales Tax Refund Fund. The Department shall only
14 pay moneys into the State Aviation Program Fund and the
15 Aviation Fuel Sales Tax Refund Fund under this Act for so long
16 as the revenue use requirements of 49 U.S.C. 47107(b) and 49
17 U.S.C. 47133 are binding on the State.
18 Beginning August 1, 2000, each month the Department shall
19 pay into the Local Government Tax Fund 80% of the net revenue
20 realized for the preceding month from the 1.25% rate on the
21 selling price of motor fuel and gasohol.
22 Beginning October 1, 2009, each month the Department shall
23 pay into the Capital Projects Fund an amount that is equal to
24 an amount estimated by the Department to represent 80% of the
25 net revenue realized for the preceding month from the sale of
26 candy, grooming and hygiene products, and soft drinks that had
HB2755 Enrolled - 379 - LRB104 08253 BDA 18303 b
1 been taxed at a rate of 1% prior to September 1, 2009 but that
2 are now taxed at 6.25%.
3 Beginning July 1, 2013, each month the Department shall
4 pay into the Underground Storage Tank Fund from the proceeds
5 collected under this Act, the Use Tax Act, the Service Use Tax
6 Act, and the Retailers' Occupation Tax Act an amount equal to
7 the average monthly deficit in the Underground Storage Tank
8 Fund during the prior year, as certified annually by the
9 Illinois Environmental Protection Agency, but the total
10 payment into the Underground Storage Tank Fund under this Act,
11 the Use Tax Act, the Service Use Tax Act, and the Retailers'
12 Occupation Tax Act shall not exceed $18,000,000 in any State
13 fiscal year. As used in this paragraph, the "average monthly
14 deficit" shall be equal to the difference between the average
15 monthly claims for payment by the fund and the average monthly
16 revenues deposited into the fund, excluding payments made
17 pursuant to this paragraph.
18 Beginning July 1, 2015, of the remainder of the moneys
19 received by the Department under the Use Tax Act, the Service
20 Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
21 each month the Department shall deposit $500,000 into the
22 State Crime Laboratory Fund.
23 Of the remainder of the moneys received by the Department
24 pursuant to this Act, (a) 1.75% thereof shall be paid into the
25 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
26 and after July 1, 1989, 3.8% thereof shall be paid into the
HB2755 Enrolled - 380 - LRB104 08253 BDA 18303 b
1 Build Illinois Fund; provided, however, that if in any fiscal
2 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
3 may be, of the moneys received by the Department and required
4 to be paid into the Build Illinois Fund pursuant to Section 3
5 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
6 Act, Section 9 of the Service Use Tax Act, and Section 9 of the
7 Service Occupation Tax Act, such Acts being hereinafter called
8 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
9 may be, of moneys being hereinafter called the "Tax Act
10 Amount", and (2) the amount transferred to the Build Illinois
11 Fund from the State and Local Sales Tax Reform Fund shall be
12 less than the Annual Specified Amount (as defined in Section 3
13 of the Retailers' Occupation Tax Act), an amount equal to the
14 difference shall be immediately paid into the Build Illinois
15 Fund from other moneys received by the Department pursuant to
16 the Tax Acts; and further provided, that if on the last
17 business day of any month the sum of (1) the Tax Act Amount
18 required to be deposited into the Build Illinois Account in
19 the Build Illinois Fund during such month and (2) the amount
20 transferred during such month to the Build Illinois Fund from
21 the State and Local Sales Tax Reform Fund shall have been less
22 than 1/12 of the Annual Specified Amount, an amount equal to
23 the difference shall be immediately paid into the Build
24 Illinois Fund from other moneys received by the Department
25 pursuant to the Tax Acts; and, further provided, that in no
26 event shall the payments required under the preceding proviso
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1 result in aggregate payments into the Build Illinois Fund
2 pursuant to this clause (b) for any fiscal year in excess of
3 the greater of (i) the Tax Act Amount or (ii) the Annual
4 Specified Amount for such fiscal year; and, further provided,
5 that the amounts payable into the Build Illinois Fund under
6 this clause (b) shall be payable only until such time as the
7 aggregate amount on deposit under each trust indenture
8 securing Bonds issued and outstanding pursuant to the Build
9 Illinois Bond Act is sufficient, taking into account any
10 future investment income, to fully provide, in accordance with
11 such indenture, for the defeasance of or the payment of the
12 principal of, premium, if any, and interest on the Bonds
13 secured by such indenture and on any Bonds expected to be
14 issued thereafter and all fees and costs payable with respect
15 thereto, all as certified by the Director of the Bureau of the
16 Budget (now Governor's Office of Management and Budget). If on
17 the last business day of any month in which Bonds are
18 outstanding pursuant to the Build Illinois Bond Act, the
19 aggregate of the moneys deposited in the Build Illinois Bond
20 Account in the Build Illinois Fund in such month shall be less
21 than the amount required to be transferred in such month from
22 the Build Illinois Bond Account to the Build Illinois Bond
23 Retirement and Interest Fund pursuant to Section 13 of the
24 Build Illinois Bond Act, an amount equal to such deficiency
25 shall be immediately paid from other moneys received by the
26 Department pursuant to the Tax Acts to the Build Illinois
HB2755 Enrolled - 382 - LRB104 08253 BDA 18303 b
1 Fund; provided, however, that any amounts paid to the Build
2 Illinois Fund in any fiscal year pursuant to this sentence
3 shall be deemed to constitute payments pursuant to clause (b)
4 of the preceding sentence and shall reduce the amount
5 otherwise payable for such fiscal year pursuant to clause (b)
6 of the preceding sentence. The moneys received by the
7 Department pursuant to this Act and required to be deposited
8 into the Build Illinois Fund are subject to the pledge, claim
9 and charge set forth in Section 12 of the Build Illinois Bond
10 Act.
11 Subject to payment of amounts into the Build Illinois Fund
12 as provided in the preceding paragraph or in any amendment
13 thereto hereafter enacted, the following specified monthly
14 installment of the amount requested in the certificate of the
15 Chairman of the Metropolitan Pier and Exposition Authority
16 provided under Section 8.25f of the State Finance Act, but not
17 in excess of the sums designated as "Total Deposit", shall be
18 deposited in the aggregate from collections under Section 9 of
19 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
20 9 of the Service Occupation Tax Act, and Section 3 of the
21 Retailers' Occupation Tax Act into the McCormick Place
22 Expansion Project Fund in the specified fiscal years.
23 Fiscal Year Total Deposit
$0
24 1993
53,000,000
25 1994
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1 1995 58,000,000
61,000,000
2 1996 64,000,000
68,000,000
3 1997 71,000,000
75,000,000
4 1998 80,000,000
93,000,000
5 1999 99,000,000
103,000,000
6 2000 108,000,000
113,000,000
7 2001 119,000,000
126,000,000
8 2002 132,000,000
139,000,000
9 2003 146,000,000
153,000,000
10 2004 161,000,000
170,000,000
11 2005 179,000,000
189,000,000
12 2006 199,000,000
210,000,000
13 2007 221,000,000
233,000,000
14 2008
15 2009
16 2010
17 2011
18 2012
19 2013
20 2014
21 2015
22 2016
23 2017
24 2018
25 2019
26 2020
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1 2021 300,000,000
2 2022 300,000,000
3 2023 300,000,000
4 2024 300,000,000
5 2025 300,000,000
6 2026 300,000,000
7 2027 375,000,000
8 2028 375,000,000
9 2029 375,000,000
10 2030 375,000,000
11 2031 375,000,000
12 2032 375,000,000
13 2033 375,000,000
14 2034 375,000,000
15 2035 375,000,000
16 2036 450,000,000
17 and
18 each fiscal year
19 thereafter that bonds
20 are outstanding under
21 Section 13.2 of the
22 Metropolitan Pier and
23 Exposition Authority Act,
24 but not after fiscal year 2060.
25 Beginning July 20, 1993 and in each month of each fiscal
26 year thereafter, one-eighth of the amount requested in the
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1 certificate of the Chairman of the Metropolitan Pier and
2 Exposition Authority for that fiscal year, less the amount
3 deposited into the McCormick Place Expansion Project Fund by
4 the State Treasurer in the respective month under subsection
5 (g) of Section 13 of the Metropolitan Pier and Exposition
6 Authority Act, plus cumulative deficiencies in the deposits
7 required under this Section for previous months and years,
8 shall be deposited into the McCormick Place Expansion Project
9 Fund, until the full amount requested for the fiscal year, but
10 not in excess of the amount specified above as "Total
11 Deposit", has been deposited.
12 Subject to payment of amounts into the Capital Projects
13 Fund, the Build Illinois Fund, and the McCormick Place
14 Expansion Project Fund pursuant to the preceding paragraphs or
15 in any amendments thereto hereafter enacted, for aviation fuel
16 sold on or after December 1, 2019, the Department shall each
17 month deposit into the Aviation Fuel Sales Tax Refund Fund an
18 amount estimated by the Department to be required for refunds
19 of the 80% portion of the tax on aviation fuel under this Act.
20 The Department shall only deposit moneys into the Aviation
21 Fuel Sales Tax Refund Fund under this paragraph for so long as
22 the revenue use requirements of 49 U.S.C. 47107(b) and 49
23 U.S.C. 47133 are binding on the State.
24 Subject to payment of amounts into the Build Illinois Fund
25 and the McCormick Place Expansion Project Fund pursuant to the
26 preceding paragraphs or in any amendments thereto hereafter
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1 enacted, beginning July 1, 1993 and ending on September 30,
2 2013, the Department shall each month pay into the Illinois
3 Tax Increment Fund 0.27% of 80% of the net revenue realized for
4 the preceding month from the 6.25% general rate on the selling
5 price of tangible personal property.
6 Subject to payment of amounts into the Build Illinois
7 Fund, the McCormick Place Expansion Project Fund, and the
8 Illinois Tax Increment Fund pursuant to the preceding
9 paragraphs or in any amendments to this Section hereafter
10 enacted, beginning on the first day of the first calendar
11 month to occur on or after August 26, 2014 (the effective date
12 of Public Act 98-1098), each month, from the collections made
13 under Section 9 of the Use Tax Act, Section 9 of the Service
14 Use Tax Act, Section 9 of the Service Occupation Tax Act, and
15 Section 3 of the Retailers' Occupation Tax Act, the Department
16 shall pay into the Tax Compliance and Administration Fund, to
17 be used, subject to appropriation, to fund additional auditors
18 and compliance personnel at the Department of Revenue, an
19 amount equal to 1/12 of 5% of 80% of the cash receipts
20 collected during the preceding fiscal year by the Audit Bureau
21 of the Department under the Use Tax Act, the Service Use Tax
22 Act, the Service Occupation Tax Act, the Retailers' Occupation
23 Tax Act, and associated local occupation and use taxes
24 administered by the Department.
25 Subject to payments of amounts into the Build Illinois
26 Fund, the McCormick Place Expansion Project Fund, the Illinois
HB2755 Enrolled - 387 - LRB104 08253 BDA 18303 b
1 Tax Increment Fund, and the Tax Compliance and Administration
2 Fund as provided in this Section, beginning on July 1, 2018 the
3 Department shall pay each month into the Downstate Public
4 Transportation Fund the moneys required to be so paid under
5 Section 2-3 of the Downstate Public Transportation Act.
6 Subject to successful execution and delivery of a
7 public-private agreement between the public agency and private
8 entity and completion of the civic build, beginning on July 1,
9 2023, of the remainder of the moneys received by the
10 Department under the Use Tax Act, the Service Use Tax Act, the
11 Service Occupation Tax Act, and this Act, the Department shall
12 deposit the following specified deposits in the aggregate from
13 collections under the Use Tax Act, the Service Use Tax Act, the
14 Service Occupation Tax Act, and the Retailers' Occupation Tax
15 Act, as required under Section 8.25g of the State Finance Act
16 for distribution consistent with the Public-Private
17 Partnership for Civic and Transit Infrastructure Project Act.
18 The moneys received by the Department pursuant to this Act and
19 required to be deposited into the Civic and Transit
20 Infrastructure Fund are subject to the pledge, claim and
21 charge set forth in Section 25-55 of the Public-Private
22 Partnership for Civic and Transit Infrastructure Project Act.
23 As used in this paragraph, "civic build", "private entity",
24 "public-private agreement", and "public agency" have the
25 meanings provided in Section 25-10 of the Public-Private
26 Partnership for Civic and Transit Infrastructure Project Act.
HB2755 Enrolled - 388 - LRB104 08253 BDA 18303 b
1 Fiscal Year ............................ Total Deposit
2 2024 .................................... $200,000,000
3 2025 .................................... $206,000,000
4 2026 .................................... $212,200,000
5 2027 .................................... $218,500,000
6 2028 .................................... $225,100,000
7 2029 .................................... $288,700,000
8 2030 .................................... $298,900,000
9 2031 .................................... $309,300,000
10 2032 .................................... $320,100,000
11 2033 .................................... $331,200,000
12 2034 .................................... $341,200,000
13 2035 .................................... $351,400,000
14 2036 .................................... $361,900,000
15 2037 .................................... $372,800,000
16 2038 .................................... $384,000,000
17 2039 .................................... $395,500,000
18 2040 .................................... $407,400,000
19 2041 .................................... $419,600,000
20 2042 .................................... $432,200,000
21 2043 .................................... $445,100,000
22 Beginning July 1, 2021 and until July 1, 2022, subject to
23 the payment of amounts into the County and Mass Transit
24 District Fund, the Local Government Tax Fund, the Build
25 Illinois Fund, the McCormick Place Expansion Project Fund, the
26 Illinois Tax Increment Fund, and the Tax Compliance and
HB2755 Enrolled - 389 - LRB104 08253 BDA 18303 b
1 Administration Fund as provided in this Section, the
2 Department shall pay each month into the Road Fund the amount
3 estimated to represent 16% of the net revenue realized from
4 the taxes imposed on motor fuel and gasohol. Beginning July 1,
5 2022 and until July 1, 2023, subject to the payment of amounts
6 into the County and Mass Transit District Fund, the Local
7 Government Tax Fund, the Build Illinois Fund, the McCormick
8 Place Expansion Project Fund, the Illinois Tax Increment Fund,
9 and the Tax Compliance and Administration Fund as provided in
10 this Section, the Department shall pay each month into the
11 Road Fund the amount estimated to represent 32% of the net
12 revenue realized from the taxes imposed on motor fuel and
13 gasohol. Beginning July 1, 2023 and until July 1, 2024,
14 subject to the payment of amounts into the County and Mass
15 Transit District Fund, the Local Government Tax Fund, the
16 Build Illinois Fund, the McCormick Place Expansion Project
17 Fund, the Illinois Tax Increment Fund, and the Tax Compliance
18 and Administration Fund as provided in this Section, the
19 Department shall pay each month into the Road Fund the amount
20 estimated to represent 48% of the net revenue realized from
21 the taxes imposed on motor fuel and gasohol. Beginning July 1,
22 2024 and until July 1, 2025, subject to the payment of amounts
23 into the County and Mass Transit District Fund, the Local
24 Government Tax Fund, the Build Illinois Fund, the McCormick
25 Place Expansion Project Fund, the Illinois Tax Increment Fund,
26 and the Tax Compliance and Administration Fund as provided in
HB2755 Enrolled - 390 - LRB104 08253 BDA 18303 b
1 this Section, the Department shall pay each month into the
2 Road Fund the amount estimated to represent 64% of the net
3 revenue realized from the taxes imposed on motor fuel and
4 gasohol. Beginning on July 1, 2025, subject to the payment of
5 amounts into the County and Mass Transit District Fund, the
6 Local Government Tax Fund, the Build Illinois Fund, the
7 McCormick Place Expansion Project Fund, the Illinois Tax
8 Increment Fund, and the Tax Compliance and Administration Fund
9 as provided in this Section, the Department shall pay each
10 month into the Road Fund the amount estimated to represent 80%
11 of the net revenue realized from the taxes imposed on motor
12 fuel and gasohol. As used in this paragraph "motor fuel" has
13 the meaning given to that term in Section 1.1 of the Motor Fuel
14 Tax Law, and "gasohol" has the meaning given to that term in
15 Section 3-40 of the Use Tax Act.
16 Of the remainder of the moneys received by the Department
17 pursuant to this Act, 75% shall be paid into the General
18 Revenue Fund of the State treasury and 25% shall be reserved in
19 a special account and used only for the transfer to the Common
20 School Fund as part of the monthly transfer from the General
21 Revenue Fund in accordance with Section 8a of the State
22 Finance Act.
23 The Department may, upon separate written notice to a
24 taxpayer, require the taxpayer to prepare and file with the
25 Department on a form prescribed by the Department within not
26 less than 60 days after receipt of the notice an annual
HB2755 Enrolled - 391 - LRB104 08253 BDA 18303 b
1 information return for the tax year specified in the notice.
2 Such annual return to the Department shall include a statement
3 of gross receipts as shown by the taxpayer's last federal
4 income tax return. If the total receipts of the business as
5 reported in the federal income tax return do not agree with the
6 gross receipts reported to the Department of Revenue for the
7 same period, the taxpayer shall attach to his annual return a
8 schedule showing a reconciliation of the 2 amounts and the
9 reasons for the difference. The taxpayer's annual return to
10 the Department shall also disclose the cost of goods sold by
11 the taxpayer during the year covered by such return, opening
12 and closing inventories of such goods for such year, cost of
13 goods used from stock or taken from stock and given away by the
14 taxpayer during such year, pay roll information of the
15 taxpayer's business during such year and any additional
16 reasonable information which the Department deems would be
17 helpful in determining the accuracy of the monthly, quarterly
18 or annual returns filed by such taxpayer as hereinbefore
19 provided for in this Section.
20 If the annual information return required by this Section
21 is not filed when and as required, the taxpayer shall be liable
22 as follows:
23 (i) Until January 1, 1994, the taxpayer shall be
24 liable for a penalty equal to 1/6 of 1% of the tax due from
25 such taxpayer under this Act during the period to be
26 covered by the annual return for each month or fraction of
HB2755 Enrolled - 392 - LRB104 08253 BDA 18303 b
1 a month until such return is filed as required, the
2 penalty to be assessed and collected in the same manner as
3 any other penalty provided for in this Act.
4 (ii) On and after January 1, 1994, the taxpayer shall
5 be liable for a penalty as described in Section 3-4 of the
6 Uniform Penalty and Interest Act.
7 The chief executive officer, proprietor, owner, or highest
8 ranking manager shall sign the annual return to certify the
9 accuracy of the information contained therein. Any person who
10 willfully signs the annual return containing false or
11 inaccurate information shall be guilty of perjury and punished
12 accordingly. The annual return form prescribed by the
13 Department shall include a warning that the person signing the
14 return may be liable for perjury.
15 The foregoing portion of this Section concerning the
16 filing of an annual information return shall not apply to a
17 serviceman who is not required to file an income tax return
18 with the United States Government.
19 As soon as possible after the first day of each month, upon
20 certification of the Department of Revenue, the Comptroller
21 shall order transferred and the Treasurer shall transfer from
22 the General Revenue Fund to the Motor Fuel Tax Fund an amount
23 equal to 1.7% of 80% of the net revenue realized under this Act
24 for the second preceding month. Beginning April 1, 2000, this
25 transfer is no longer required and shall not be made.
26 Net revenue realized for a month shall be the revenue
HB2755 Enrolled - 393 - LRB104 08253 BDA 18303 b
1 collected by the State pursuant to this Act, less the amount
2 paid out during that month as refunds to taxpayers for
3 overpayment of liability.
4 For greater simplicity of administration, it shall be
5 permissible for manufacturers, importers and wholesalers whose
6 products are sold by numerous servicemen in Illinois, and who
7 wish to do so, to assume the responsibility for accounting and
8 paying to the Department all tax accruing under this Act with
9 respect to such sales, if the servicemen who are affected do
10 not make written objection to the Department to this
11 arrangement.
12 (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
13 103-363, eff. 7-28-23; 103-592, eff. 6-7-24; 103-605, eff.
14 7-1-24.)
15 (35 ILCS 115/20) (from Ch. 120, par. 439.120)
16 Sec. 20. If it is determined that the Department should
17 issue a credit or refund hereunder, the Department may first
18 apply the amount thereof against any amount of tax or penalty
19 or interest due hereunder, or under the Service Use Tax Act,
20 the Retailers' Occupation Tax Act, the Use Tax Act, or any
21 local occupation or use tax administered by the Department,
22 Section 4 of the Water Commission Act of 1985, subsections
23 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
24 District Act, or subsections (e), (f) and (g) of Section 4.03
25 of the Regional Transportation Authority Act, from the person
HB2755 Enrolled - 394 - LRB104 08253 BDA 18303 b
1 entitled to such credit or refund. For this purpose, if
2 proceedings are pending to determine whether or not any tax or
3 penalty or interest is due hereunder, or under the Service Use
4 Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act, or
5 any local occupation or use tax administered by the
6 Department, Section 4 of the Water Commission Act of 1985,
7 subsections (b), (c) and (d) of Section 5.01 of the Local Mass
8 Transit District Act, or subsections (e), (f) and (g) of
9 Section 4.03 of the Regional Transportation Authority Act,
10 from such person, the Department may withhold issuance of the
11 credit or refund pending the final disposition of such
12 proceedings and may apply such credit or refund against any
13 amount found to be due to the Department as a result of such
14 proceedings. The balance, if any, of the credit or refund
15 shall be issued to the person entitled thereto.
16 Any credit memorandum issued hereunder may be used by the
17 authorized holder thereof to pay any tax or penalty or
18 interest due or to become due under this Act, or under the
19 Service Use Tax Act, the Retailers' Occupation Tax Act, the
20 Use Tax Act, or any local occupation or use tax administered by
21 the Department, Section 4 of the Water Commission Act of 1985,
22 subsections (b), (c) and (d) of Section 5.01 of the Local Mass
23 Transit District Act, or subsections (e), (f) and (g) of
24 Section 4.03 of the Regional Transportation Authority Act,
25 from such holder. Subject to reasonable rules of the
26 Department, a credit memorandum issued hereunder may be
HB2755 Enrolled - 395 - LRB104 08253 BDA 18303 b
1 assigned by the holder thereof to any other person for use in
2 paying tax or penalty or interest which may be due or become
3 due under this Act, the Service Use Tax Act, the Retailers'
4 Occupation Tax Act, the Use Tax Act, or any local occupation or
5 use tax administered by the Department, Section 4 of the Water
6 Commission Act of 1985, subsections (b), (c) and (d) of
7 Section 5.01 of the Local Mass Transit District Act, or
8 subsections (e), (f) and (g) of Section 4.03 of the Regional
9 Transportation Authority Act, from the assignee.
10 In any case in which there has been an erroneous refund of
11 tax payable under this Act, a notice of tax liability may be
12 issued at any time within 3 years from the making of that
13 refund, or within 5 years from the making of that refund if it
14 appears that any part of the refund was induced by fraud or the
15 misrepresentation of a material fact. The amount of any
16 proposed assessment set forth in the notice shall be limited
17 to the amount of the erroneous refund.
18 (Source: P.A. 91-901, eff. 1-1-01.)
19 Section 25-20. The Retailers' Occupation Tax Act is
20 amended by changing Sections 2, 3, 4, 5, and 6 as follows:
21 (35 ILCS 120/2)
22 Sec. 2. Tax imposed.
23 (a) A tax is imposed upon persons engaged in the business
24 of selling at retail, which, on and after January 1, 2025,
HB2755 Enrolled - 396 - LRB104 08253 BDA 18303 b
1 includes leasing, tangible personal property, including
2 computer software, and including photographs, negatives, and
3 positives that are the product of photoprocessing, but not
4 including products of photoprocessing produced for use in
5 motion pictures for public commercial exhibition. Beginning
6 January 1, 2001, prepaid telephone calling arrangements shall
7 be considered tangible personal property subject to the tax
8 imposed under this Act regardless of the form in which those
9 arrangements may be embodied, transmitted, or fixed by any
10 method now known or hereafter developed.
11 The imposition of the tax under this Act on persons
12 engaged in the business of leasing tangible personal property
13 applies to leases in effect, entered into, or renewed on or
14 after January 1, 2025. In the case of leases, except as
15 otherwise provided in this Act, the lessor must remit, for
16 each tax return period, only the tax applicable to that part of
17 the selling price actually received during such tax return
18 period.
19 The inclusion of leases in the tax imposed under this Act
20 by Public Act 103-592 this amendatory Act of the 103rd General
21 Assembly does not, however, extend to motor vehicles,
22 watercraft, aircraft, and semitrailers, as defined in Section
23 1-187 of the Illinois Vehicle Code, that are required to be
24 registered with an agency of this State. The taxation of these
25 items shall continue in effect as prior to the effective date
26 of the changes made to this Section by Public Act 103-592 this
HB2755 Enrolled - 397 - LRB104 08253 BDA 18303 b
1 amendatory Act of the 103rd General Assembly (i.e., dealers
2 owe retailers' occupation tax, lessors owe use tax, and
3 lessees are not subject to retailers' occupation or use tax).
4 Sales of (1) electricity delivered to customers by wire;
5 (2) natural or artificial gas that is delivered to customers
6 through pipes, pipelines, or mains; and (3) water that is
7 delivered to customers through pipes, pipelines, or mains are
8 not subject to tax under this Act. The provisions of Public Act
9 98-583 this amendatory Act of the 98th General Assembly are
10 declaratory of existing law as to the meaning and scope of this
11 Act.
12 (b) Beginning on January 1, 2021, and through December 31,
13 2025, a remote retailer is engaged in the occupation of
14 selling at retail in Illinois for purposes of this Act, if:
15 (1) the cumulative gross receipts from sales of
16 tangible personal property to purchasers in Illinois are
17 $100,000 or more; or
18 (2) the retailer enters into 200 or more separate
19 transactions for the sale of tangible personal property to
20 purchasers in Illinois.
21 Remote retailers that meet or exceed the threshold in
22 either paragraph (1) or (2) above shall be liable for all
23 applicable State retailers' and locally imposed retailers'
24 occupation taxes administered by the Department on all retail
25 sales to Illinois purchasers.
26 The remote retailer shall determine on a quarterly basis,
HB2755 Enrolled - 398 - LRB104 08253 BDA 18303 b
1 ending on the last day of March, June, September, and
2 December, whether it he or she meets the threshold criteria of
3 either paragraph (1) or (2) of this subsection for the
4 preceding 12-month period. If the retailer meets the threshold
5 criteria of either paragraph (1) or (2) for a 12-month period,
6 he or she is considered a retailer maintaining a place of
7 business in this State and is required to collect and remit the
8 tax imposed under this Act and all retailers' occupation tax
9 imposed by local taxing jurisdictions in Illinois, provided
10 such local taxes are administered by the Department, and to
11 file all applicable returns for one year. At the end of that
12 one-year period, the retailer shall determine whether the
13 retailer met the threshold criteria of either paragraph (1) or
14 (2) for the preceding 12-month period. If the retailer met the
15 threshold criteria in either paragraph (1) or (2) for the
16 preceding 12-month period, it he or she is considered a
17 retailer maintaining a place of business in this State and is
18 required to collect and remit all applicable State and local
19 retailers' occupation taxes and file returns for the
20 subsequent year. If, at the end of a one-year period, a
21 retailer that was required to collect and remit the tax
22 imposed under this Act determines that it he or she did not
23 meet the threshold criteria in either paragraph (1) or (2)
24 during the preceding 12-month period, then the retailer shall
25 subsequently determine on a quarterly basis, ending on the
26 last day of March, June, September, and December, whether the
HB2755 Enrolled - 399 - LRB104 08253 BDA 18303 b
1 retailer met he or she meets the threshold criteria of either
2 paragraph (1) or (2) for the preceding 12-month period.
3 (b-1) Beginning on January 1, 2026, a remote retailer is
4 engaged in the occupation of selling at retail in Illinois for
5 purposes of this Act if the remote retailer's cumulative gross
6 receipts from sales of tangible personal property to
7 purchasers in Illinois are $100,000 or more.
8 Remote retailers that meet or exceed the threshold in this
9 subsection (b-1) shall be liable for all applicable State and
10 locally imposed retailers' occupation taxes administered by
11 the Department on all retail sales to Illinois purchasers.
12 The remote retailer shall determine on a quarterly basis,
13 ending on the last day of March, June, September, and
14 December, whether the remote retailer meets the threshold of
15 this subsection (b-1) for the preceding 12-month period. If
16 the remote retailer meets the threshold for a 12-month period,
17 the remote retailer is considered to be engaged in the
18 occupation of selling at retail in Illinois and is required to
19 remit the tax imposed under this Act and all retailers'
20 occupation tax imposed by local taxing jurisdictions in
21 Illinois, provided such local taxes are administered by the
22 Department, and to file all applicable returns for one year.
23 At the end of the one-year period, the remote retailer shall
24 determine whether the remote retailer met the threshold for
25 the preceding 12-month period. If the retailer met the
26 threshold for the preceding 12-month period, the remote
HB2755 Enrolled - 400 - LRB104 08253 BDA 18303 b
1 retailer is considered to be engaged in the occupation of
2 selling at retail in Illinois and is required to remit all
3 applicable State and local retailers' occupation taxes and
4 file returns for the subsequent year. If, at the end of a
5 one-year period, a remote retailer that was required to remit
6 the tax imposed under this Act determines that the remote
7 retailer did not meet the threshold during the preceding
8 12-month period, then the remote retailer shall subsequently
9 determine on a quarterly basis, ending on the last day of
10 March, June, September, and December, whether the remote
11 retailer met the threshold for the preceding 12-month period.
12 (b-2) Beginning on January 1, 2025, a retailer maintaining
13 a place of business in this State that makes retail sales of
14 tangible personal property to Illinois customers from a
15 location or locations outside of Illinois is engaged in the
16 occupation of selling at retail in Illinois for the purposes
17 of this Act. Those retailers are liable for all applicable
18 State and locally imposed retailers' occupation taxes
19 administered by the Department on retail sales made by those
20 retailers to Illinois customers from locations outside of
21 Illinois.
22 (b-5) For the purposes of this Section, neither the gross
23 receipts from nor, until January 1, 2026, the number of
24 separate transactions for sales of tangible personal property
25 to purchasers in Illinois that a remote retailer makes through
26 a marketplace facilitator shall be included for the purposes
HB2755 Enrolled - 401 - LRB104 08253 BDA 18303 b
1 of determining whether he or she has met the thresholds of
2 subsection (b) or (b-1) of this Section so long as the remote
3 retailer has received certification from the marketplace
4 facilitator that the marketplace facilitator is legally
5 responsible for payment of tax on such sales.
6 (b-10) A remote retailer that is required to collect taxes
7 imposed under the Use Tax Act on retail sales made to Illinois
8 purchasers or a retailer maintaining a place of business in
9 this State that is required to collect taxes imposed under the
10 Use Tax Act on retail sales made to Illinois purchasers shall
11 be liable to the Department for such taxes, except when the
12 remote retailer or retailer maintaining a place of business in
13 this State is relieved of the duty to remit such taxes by
14 virtue of having paid to the Department taxes imposed by this
15 Act in accordance with this Section upon his or her gross
16 receipts from such sales.
17 (c) Marketplace facilitators engaged in the business of
18 selling at retail tangible personal property in Illinois.
19 Beginning January 1, 2021, and through December 31, 2025, a
20 marketplace facilitator is engaged in the occupation of
21 selling at retail tangible personal property in Illinois for
22 purposes of this Act if, during the previous 12-month period:
23 (1) the cumulative gross receipts from sales of
24 tangible personal property on its own behalf or on behalf
25 of marketplace sellers to purchasers in Illinois equals
26 $100,000 or more; or
HB2755 Enrolled - 402 - LRB104 08253 BDA 18303 b
1 (2) the marketplace facilitator enters into 200 or
2 more separate transactions on its own behalf or on behalf
3 of marketplace sellers for the sale of tangible personal
4 property to purchasers in Illinois, regardless of whether
5 the marketplace facilitator or marketplace sellers for
6 whom such sales are facilitated are registered as
7 retailers in this State.
8 A marketplace facilitator who meets either paragraph (1)
9 or (2) of this subsection is required to remit the applicable
10 State retailers' occupation taxes under this Act and local
11 retailers' occupation taxes administered by the Department on
12 all taxable sales of tangible personal property made by the
13 marketplace facilitator or facilitated for marketplace sellers
14 to customers in this State. A marketplace facilitator selling
15 or facilitating the sale of tangible personal property to
16 customers in this State is subject to all applicable
17 procedures and requirements of this Act.
18 The marketplace facilitator shall determine on a quarterly
19 basis, ending on the last day of March, June, September, and
20 December, whether it he or she meets the threshold criteria of
21 either paragraph (1) or (2) of this subsection for the
22 preceding 12-month period. If the marketplace facilitator
23 meets the threshold criteria of either paragraph (1) or (2)
24 for a 12-month period, the marketplace facilitator he or she
25 is considered a retailer maintaining a place of business in
26 this State and is required to remit the tax imposed under this
HB2755 Enrolled - 403 - LRB104 08253 BDA 18303 b
1 Act and all retailers' occupation tax imposed by local taxing
2 jurisdictions in Illinois, provided such local taxes are
3 administered by the Department, and to file all applicable
4 returns for one year. At the end of that one-year period, the
5 marketplace facilitator shall determine whether it met the
6 threshold criteria of either paragraph (1) or (2) for the
7 preceding 12-month period. If the marketplace facilitator met
8 the threshold criteria in either paragraph (1) or (2) for the
9 preceding 12-month period, it is considered a retailer
10 maintaining a place of business in this State and is required
11 to collect and remit all applicable State and local retailers'
12 occupation taxes and file returns for the subsequent year. If
13 at the end of a one-year period a marketplace facilitator that
14 was required to collect and remit the tax imposed under this
15 Act determines that it he or she did not meet the threshold
16 criteria in either paragraph (1) or (2) during the preceding
17 12-month period, the marketplace facilitator shall
18 subsequently determine on a quarterly basis, ending on the
19 last day of March, June, September, and December, whether it
20 met he or she meets the threshold criteria of either paragraph
21 (1) or (2) for the preceding 12-month period.
22 (c-5) Beginning January 1, 2026, a marketplace facilitator
23 is engaged in the occupation of selling at retail tangible
24 personal property in Illinois for purposes of this Act if,
25 during the previous 12-month period the cumulative gross
26 receipts from sales of tangible personal property on its own
HB2755 Enrolled - 404 - LRB104 08253 BDA 18303 b
1 behalf or on behalf of marketplace sellers to purchasers in
2 Illinois equals $100,000 or more.
3 A marketplace facilitator who meets the threshold of this
4 subsection is required to remit the applicable State
5 retailers' occupation taxes under this Act and local
6 retailers' occupation taxes administered by the Department on
7 all taxable sales of tangible personal property made by the
8 marketplace facilitator or facilitated for marketplace sellers
9 to customers in this State. A marketplace facilitator selling
10 or facilitating the sale of tangible personal property to
11 customers in this State is subject to all applicable
12 procedures and requirements of this Act.
13 The marketplace facilitator shall determine on a quarterly
14 basis, ending on the last day of March, June, September, and
15 December, whether the marketplace facilitator meets the
16 threshold of this subsection (c-5) for the preceding 12-month
17 period. If the marketplace facilitator meets the threshold for
18 a 12-month period, the marketplace facilitator is considered
19 to be engaged in the occupation of selling at retail in
20 Illinois and is required to remit the tax imposed under this
21 Act and all retailers' occupation tax imposed by local taxing
22 jurisdictions in Illinois, provided such local taxes are
23 administered by the Department, and to file all applicable
24 returns for one year. At the end of the one-year period, the
25 marketplace facilitator shall determine whether the
26 marketplace facilitator met the threshold for the preceding
HB2755 Enrolled - 405 - LRB104 08253 BDA 18303 b
1 12-month period. If the marketplace facilitator met the
2 threshold for the preceding 12-month period, the marketplace
3 facilitator is considered to be engaged in the occupation of
4 selling at retail in Illinois and is required to collect and
5 remit all applicable State and local retailers' occupation
6 taxes and file returns for the subsequent year. If at the end
7 of a one-year period a marketplace facilitator that was
8 required to collect and remit the tax imposed under this Act
9 determines that the marketplace facilitator did not meet the
10 threshold during the preceding 12-month period, the
11 marketplace facilitator shall subsequently determine on a
12 quarterly basis, ending on the last day of March, June,
13 September, and December, whether it met the threshold for the
14 preceding 12-month period.
15 (c-10) A marketplace facilitator shall be entitled to any
16 credits, deductions, or adjustments to the sales price
17 otherwise provided to the marketplace seller, in addition to
18 any such adjustments provided directly to the marketplace
19 facilitator. This Section pertains to, but is not limited to,
20 adjustments such as discounts, coupons, and rebates. In
21 addition, a marketplace facilitator shall be entitled to the
22 retailers' discount provided in Section 3 of the Retailers'
23 Occupation Tax Act on all marketplace sales, and the
24 marketplace seller shall not include sales made through a
25 marketplace facilitator when computing any retailers' discount
26 on remaining sales. Marketplace facilitators shall report and
HB2755 Enrolled - 406 - LRB104 08253 BDA 18303 b
1 remit the applicable State and local retailers' occupation
2 taxes on sales facilitated for marketplace sellers separately
3 from any sales or use tax collected on taxable retail sales
4 made directly by the marketplace facilitator or its
5 affiliates.
6 The marketplace facilitator is liable for the remittance
7 of all applicable State retailers' occupation taxes under this
8 Act and local retailers' occupation taxes administered by the
9 Department on sales through the marketplace and is subject to
10 audit on all such sales. The Department shall not audit
11 marketplace sellers for their marketplace sales where a
12 marketplace facilitator remitted the applicable State and
13 local retailers' occupation taxes unless the marketplace
14 facilitator seeks relief as a result of incorrect information
15 provided to the marketplace facilitator by a marketplace
16 seller as set forth in this Section. The marketplace
17 facilitator shall not be held liable for tax on any sales made
18 by a marketplace seller that take place outside of the
19 marketplace and which are not a part of any agreement between a
20 marketplace facilitator and a marketplace seller. In addition,
21 marketplace facilitators shall not be held liable to State and
22 local governments of Illinois for having charged and remitted
23 an incorrect amount of State and local retailers' occupation
24 tax if, at the time of the sale, the tax is computed based on
25 erroneous data provided by the State in database files on tax
26 rates, boundaries, or taxing jurisdictions or incorrect
HB2755 Enrolled - 407 - LRB104 08253 BDA 18303 b
1 information provided to the marketplace facilitator by the
2 marketplace seller.
3 (d) A marketplace facilitator shall:
4 (1) certify to each marketplace seller that the
5 marketplace facilitator assumes the rights and duties of a
6 retailer under this Act with respect to sales made by the
7 marketplace seller through the marketplace; and
8 (2) remit taxes imposed by this Act as required by
9 this Act for sales made through the marketplace.
10 (e) A marketplace seller shall retain books and records
11 for all sales made through a marketplace in accordance with
12 the requirements of this Act.
13 (f) A marketplace facilitator is subject to audit on all
14 marketplace sales for which it is considered to be the
15 retailer, but shall not be liable for tax or subject to audit
16 on sales made by marketplace sellers outside of the
17 marketplace.
18 (g) A marketplace facilitator required to collect taxes
19 imposed under the Use Tax Act on marketplace sales made to
20 Illinois purchasers shall be liable to the Department for such
21 taxes, except when the marketplace facilitator is relieved of
22 the duty to remit such taxes by virtue of having paid to the
23 Department taxes imposed by this Act in accordance with this
24 Section upon his or her gross receipts from such sales.
25 (h) Nothing in this Section shall allow the Department to
26 collect retailers' occupation taxes from both the marketplace
HB2755 Enrolled - 408 - LRB104 08253 BDA 18303 b
1 facilitator and marketplace seller on the same transaction.
2 (i) If, for any reason, the Department is prohibited from
3 enforcing the marketplace facilitator's duty under this Act to
4 remit taxes pursuant to this Section, the duty to remit such
5 taxes remains with the marketplace seller.
6 (j) (Blank). Nothing in this Section affects the
7 obligation of any consumer to remit use tax for any taxable
8 transaction for which a certified service provider acting on
9 behalf of a remote retailer or a marketplace facilitator does
10 not collect and remit the appropriate tax.
11 (k) (Blank). Nothing in this Section shall allow the
12 Department to collect the retailers' occupation tax from both
13 the marketplace facilitator and the marketplace seller.
14 (l) A marketplace seller shall furnish to the marketplace
15 facilitator information that is necessary for the marketplace
16 facilitator to correctly remit taxes for a retail sale. The
17 information may include a certification that an item being
18 sold is taxable, not taxable, exempt from taxation, or taxable
19 at a specified rate. A marketplace seller shall be held
20 harmless for liability for the tax imposed under this Act when
21 a marketplace facilitator fails to correctly remit tax after
22 having been provided with information by a marketplace seller
23 to correctly remit taxes imposed under this Act.
24 (m) If the marketplace facilitator demonstrates to the
25 satisfaction of the Department that its failure to correctly
26 remit tax on a retail sale resulted from the marketplace
HB2755 Enrolled - 409 - LRB104 08253 BDA 18303 b
1 facilitator's good faith reliance on incorrect or insufficient
2 information provided by a marketplace seller, it shall be
3 relieved of liability for the tax on that retail sale and the
4 marketplace seller shall be liable for any resulting tax due.
5 (Source: P.A. 103-592, eff. 1-1-25; 103-983, eff. 1-1-25;
6 revised 11-26-24.)
7 (35 ILCS 120/3)
8 Sec. 3. Except as provided in this Section, on or before
9 the twentieth day of each calendar month, every person engaged
10 in the business of selling, which, on and after January 1,
11 2025, includes leasing, tangible personal property at retail
12 in this State during the preceding calendar month shall file a
13 return with the Department, stating:
14 1. The name of the seller;
15 2. His residence address and the address of his
16 principal place of business and the address of the
17 principal place of business (if that is a different
18 address) from which he engages in the business of selling
19 tangible personal property at retail in this State;
20 3. Total amount of receipts received by him during the
21 preceding calendar month or quarter, as the case may be,
22 from sales of tangible personal property, and from
23 services furnished, by him during such preceding calendar
24 month or quarter;
25 4. Total amount received by him during the preceding
HB2755 Enrolled - 410 - LRB104 08253 BDA 18303 b
1 calendar month or quarter on charge and time sales of
2 tangible personal property, and from services furnished,
3 by him prior to the month or quarter for which the return
4 is filed;
5 5. Deductions allowed by law;
6 6. Gross receipts which were received by him during
7 the preceding calendar month or quarter and upon the basis
8 of which the tax is imposed, including gross receipts on
9 food for human consumption that is to be consumed off the
10 premises where it is sold (other than alcoholic beverages,
11 food consisting of or infused with adult use cannabis,
12 soft drinks, and food that has been prepared for immediate
13 consumption) which were received during the preceding
14 calendar month or quarter and upon which tax would have
15 been due but for the 0% rate imposed under Public Act
16 102-700;
17 7. The amount of credit provided in Section 2d of this
18 Act;
19 8. The amount of tax due, including the amount of tax
20 that would have been due on food for human consumption
21 that is to be consumed off the premises where it is sold
22 (other than alcoholic beverages, food consisting of or
23 infused with adult use cannabis, soft drinks, and food
24 that has been prepared for immediate consumption) but for
25 the 0% rate imposed under Public Act 102-700;
26 9. The signature of the taxpayer; and
HB2755 Enrolled - 411 - LRB104 08253 BDA 18303 b
1 10. Such other reasonable information as the
2 Department may require.
3 In the case of leases, except as otherwise provided in
4 this Act, the lessor must remit for each tax return period only
5 the tax applicable to that part of the selling price actually
6 received during such tax return period.
7 On and after January 1, 2018, except for returns required
8 to be filed prior to January 1, 2023 for motor vehicles,
9 watercraft, aircraft, and trailers that are required to be
10 registered with an agency of this State, with respect to
11 retailers whose annual gross receipts average $20,000 or more,
12 all returns required to be filed pursuant to this Act shall be
13 filed electronically. On and after January 1, 2023, with
14 respect to retailers whose annual gross receipts average
15 $20,000 or more, all returns required to be filed pursuant to
16 this Act, including, but not limited to, returns for motor
17 vehicles, watercraft, aircraft, and trailers that are required
18 to be registered with an agency of this State, shall be filed
19 electronically. Retailers who demonstrate that they do not
20 have access to the Internet or demonstrate hardship in filing
21 electronically may petition the Department to waive the
22 electronic filing requirement.
23 If a taxpayer fails to sign a return within 30 days after
24 the proper notice and demand for signature by the Department,
25 the return shall be considered valid and any amount shown to be
26 due on the return shall be deemed assessed.
HB2755 Enrolled - 412 - LRB104 08253 BDA 18303 b
1 Each return shall be accompanied by the statement of
2 prepaid tax issued pursuant to Section 2e for which credit is
3 claimed.
4 Prior to October 1, 2003 and on and after September 1,
5 2004, a retailer may accept a Manufacturer's Purchase Credit
6 certification from a purchaser in satisfaction of Use Tax as
7 provided in Section 3-85 of the Use Tax Act if the purchaser
8 provides the appropriate documentation as required by Section
9 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
10 certification, accepted by a retailer prior to October 1, 2003
11 and on and after September 1, 2004 as provided in Section 3-85
12 of the Use Tax Act, may be used by that retailer to satisfy
13 Retailers' Occupation Tax liability in the amount claimed in
14 the certification, not to exceed 6.25% of the receipts subject
15 to tax from a qualifying purchase. A Manufacturer's Purchase
16 Credit reported on any original or amended return filed under
17 this Act after October 20, 2003 for reporting periods prior to
18 September 1, 2004 shall be disallowed. Manufacturer's Purchase
19 Credit reported on annual returns due on or after January 1,
20 2005 will be disallowed for periods prior to September 1,
21 2004. No Manufacturer's Purchase Credit may be used after
22 September 30, 2003 through August 31, 2004 to satisfy any tax
23 liability imposed under this Act, including any audit
24 liability.
25 Beginning on July 1, 2023 and through December 31, 2032, a
26 retailer may accept a Sustainable Aviation Fuel Purchase
HB2755 Enrolled - 413 - LRB104 08253 BDA 18303 b
1 Credit certification from an air common carrier-purchaser in
2 satisfaction of Use Tax on aviation fuel as provided in
3 Section 3-87 of the Use Tax Act if the purchaser provides the
4 appropriate documentation as required by Section 3-87 of the
5 Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
6 certification accepted by a retailer in accordance with this
7 paragraph may be used by that retailer to satisfy Retailers'
8 Occupation Tax liability (but not in satisfaction of penalty
9 or interest) in the amount claimed in the certification, not
10 to exceed 6.25% of the receipts subject to tax from a sale of
11 aviation fuel. In addition, for a sale of aviation fuel to
12 qualify to earn the Sustainable Aviation Fuel Purchase Credit,
13 retailers must retain in their books and records a
14 certification from the producer of the aviation fuel that the
15 aviation fuel sold by the retailer and for which a sustainable
16 aviation fuel purchase credit was earned meets the definition
17 of sustainable aviation fuel under Section 3-87 of the Use Tax
18 Act. The documentation must include detail sufficient for the
19 Department to determine the number of gallons of sustainable
20 aviation fuel sold.
21 The Department may require returns to be filed on a
22 quarterly basis. If so required, a return for each calendar
23 quarter shall be filed on or before the twentieth day of the
24 calendar month following the end of such calendar quarter. The
25 taxpayer shall also file a return with the Department for each
26 of the first 2 months of each calendar quarter, on or before
HB2755 Enrolled - 414 - LRB104 08253 BDA 18303 b
1 the twentieth day of the following calendar month, stating:
2 1. The name of the seller;
3 2. The address of the principal place of business from
4 which he engages in the business of selling tangible
5 personal property at retail in this State;
6 3. The total amount of taxable receipts received by
7 him during the preceding calendar month from sales of
8 tangible personal property by him during such preceding
9 calendar month, including receipts from charge and time
10 sales, but less all deductions allowed by law;
11 4. The amount of credit provided in Section 2d of this
12 Act;
13 5. The amount of tax due; and
14 6. Such other reasonable information as the Department
15 may require.
16 Every person engaged in the business of selling aviation
17 fuel at retail in this State during the preceding calendar
18 month shall, instead of reporting and paying tax as otherwise
19 required by this Section, report and pay such tax on a separate
20 aviation fuel tax return. The requirements related to the
21 return shall be as otherwise provided in this Section.
22 Notwithstanding any other provisions of this Act to the
23 contrary, retailers selling aviation fuel shall file all
24 aviation fuel tax returns and shall make all aviation fuel tax
25 payments by electronic means in the manner and form required
26 by the Department. For purposes of this Section, "aviation
HB2755 Enrolled - 415 - LRB104 08253 BDA 18303 b
1 fuel" means jet fuel and aviation gasoline.
2 Beginning on October 1, 2003, any person who is not a
3 licensed distributor, importing distributor, or manufacturer,
4 as defined in the Liquor Control Act of 1934, but is engaged in
5 the business of selling, at retail, alcoholic liquor shall
6 file a statement with the Department of Revenue, in a format
7 and at a time prescribed by the Department, showing the total
8 amount paid for alcoholic liquor purchased during the
9 preceding month and such other information as is reasonably
10 required by the Department. The Department may adopt rules to
11 require that this statement be filed in an electronic or
12 telephonic format. Such rules may provide for exceptions from
13 the filing requirements of this paragraph. For the purposes of
14 this paragraph, the term "alcoholic liquor" shall have the
15 meaning prescribed in the Liquor Control Act of 1934.
16 Beginning on October 1, 2003, every distributor, importing
17 distributor, and manufacturer of alcoholic liquor as defined
18 in the Liquor Control Act of 1934, shall file a statement with
19 the Department of Revenue, no later than the 10th day of the
20 month for the preceding month during which transactions
21 occurred, by electronic means, showing the total amount of
22 gross receipts from the sale of alcoholic liquor sold or
23 distributed during the preceding month to purchasers;
24 identifying the purchaser to whom it was sold or distributed;
25 the purchaser's tax registration number; and such other
26 information reasonably required by the Department. A
HB2755 Enrolled - 416 - LRB104 08253 BDA 18303 b
1 distributor, importing distributor, or manufacturer of
2 alcoholic liquor must personally deliver, mail, or provide by
3 electronic means to each retailer listed on the monthly
4 statement a report containing a cumulative total of that
5 distributor's, importing distributor's, or manufacturer's
6 total sales of alcoholic liquor to that retailer no later than
7 the 10th day of the month for the preceding month during which
8 the transaction occurred. The distributor, importing
9 distributor, or manufacturer shall notify the retailer as to
10 the method by which the distributor, importing distributor, or
11 manufacturer will provide the sales information. If the
12 retailer is unable to receive the sales information by
13 electronic means, the distributor, importing distributor, or
14 manufacturer shall furnish the sales information by personal
15 delivery or by mail. For purposes of this paragraph, the term
16 "electronic means" includes, but is not limited to, the use of
17 a secure Internet website, e-mail, or facsimile.
18 If a total amount of less than $1 is payable, refundable or
19 creditable, such amount shall be disregarded if it is less
20 than 50 cents and shall be increased to $1 if it is 50 cents or
21 more.
22 Notwithstanding any other provision of this Act to the
23 contrary, retailers subject to tax on cannabis shall file all
24 cannabis tax returns and shall make all cannabis tax payments
25 by electronic means in the manner and form required by the
26 Department.
HB2755 Enrolled - 417 - LRB104 08253 BDA 18303 b
1 Beginning October 1, 1993, a taxpayer who has an average
2 monthly tax liability of $150,000 or more shall make all
3 payments required by rules of the Department by electronic
4 funds transfer. Beginning October 1, 1994, a taxpayer who has
5 an average monthly tax liability of $100,000 or more shall
6 make all payments required by rules of the Department by
7 electronic funds transfer. Beginning October 1, 1995, a
8 taxpayer who has an average monthly tax liability of $50,000
9 or more shall make all payments required by rules of the
10 Department by electronic funds transfer. Beginning October 1,
11 2000, a taxpayer who has an annual tax liability of $200,000 or
12 more shall make all payments required by rules of the
13 Department by electronic funds transfer. The term "annual tax
14 liability" shall be the sum of the taxpayer's liabilities
15 under this Act, and under all other State and local occupation
16 and use tax laws administered by the Department, for the
17 immediately preceding calendar year. The term "average monthly
18 tax liability" shall be the sum of the taxpayer's liabilities
19 under this Act, and under all other State and local occupation
20 and use tax laws administered by the Department, for the
21 immediately preceding calendar year divided by 12. Beginning
22 on October 1, 2002, a taxpayer who has a tax liability in the
23 amount set forth in subsection (b) of Section 2505-210 of the
24 Department of Revenue Law shall make all payments required by
25 rules of the Department by electronic funds transfer.
26 Before August 1 of each year beginning in 1993, the
HB2755 Enrolled - 418 - LRB104 08253 BDA 18303 b
1 Department shall notify all taxpayers required to make
2 payments by electronic funds transfer. All taxpayers required
3 to make payments by electronic funds transfer shall make those
4 payments for a minimum of one year beginning on October 1.
5 Any taxpayer not required to make payments by electronic
6 funds transfer may make payments by electronic funds transfer
7 with the permission of the Department.
8 All taxpayers required to make payment by electronic funds
9 transfer and any taxpayers authorized to voluntarily make
10 payments by electronic funds transfer shall make those
11 payments in the manner authorized by the Department.
12 The Department shall adopt such rules as are necessary to
13 effectuate a program of electronic funds transfer and the
14 requirements of this Section.
15 Any amount which is required to be shown or reported on any
16 return or other document under this Act shall, if such amount
17 is not a whole-dollar amount, be increased to the nearest
18 whole-dollar amount in any case where the fractional part of a
19 dollar is 50 cents or more, and decreased to the nearest
20 whole-dollar amount where the fractional part of a dollar is
21 less than 50 cents.
22 If the retailer is otherwise required to file a monthly
23 return and if the retailer's average monthly tax liability to
24 the Department does not exceed $200, the Department may
25 authorize his returns to be filed on a quarter annual basis,
26 with the return for January, February, and March of a given
HB2755 Enrolled - 419 - LRB104 08253 BDA 18303 b
1 year being due by April 20 of such year; with the return for
2 April, May, and June of a given year being due by July 20 of
3 such year; with the return for July, August, and September of a
4 given year being due by October 20 of such year, and with the
5 return for October, November, and December of a given year
6 being due by January 20 of the following year.
7 If the retailer is otherwise required to file a monthly or
8 quarterly return and if the retailer's average monthly tax
9 liability with the Department does not exceed $50, the
10 Department may authorize his returns to be filed on an annual
11 basis, with the return for a given year being due by January 20
12 of the following year.
13 Such quarter annual and annual returns, as to form and
14 substance, shall be subject to the same requirements as
15 monthly returns.
16 Notwithstanding any other provision in this Act concerning
17 the time within which a retailer may file his return, in the
18 case of any retailer who ceases to engage in a kind of business
19 which makes him responsible for filing returns under this Act,
20 such retailer shall file a final return under this Act with the
21 Department not more than one month after discontinuing such
22 business.
23 Where the same person has more than one business
24 registered with the Department under separate registrations
25 under this Act, such person may not file each return that is
26 due as a single return covering all such registered
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1 businesses, but shall file separate returns for each such
2 registered business.
3 In addition, with respect to motor vehicles, watercraft,
4 aircraft, and trailers that are required to be registered with
5 an agency of this State, except as otherwise provided in this
6 Section, every retailer selling this kind of tangible personal
7 property shall file, with the Department, upon a form to be
8 prescribed and supplied by the Department, a separate return
9 for each such item of tangible personal property which the
10 retailer sells, except that if, in the same transaction, (i) a
11 retailer of aircraft, watercraft, motor vehicles, or trailers
12 transfers more than one aircraft, watercraft, motor vehicle,
13 or trailer to another aircraft, watercraft, motor vehicle
14 retailer, or trailer retailer for the purpose of resale or
15 (ii) a retailer of aircraft, watercraft, motor vehicles, or
16 trailers transfers more than one aircraft, watercraft, motor
17 vehicle, or trailer to a purchaser for use as a qualifying
18 rolling stock as provided in Section 2-5 of this Act, then that
19 seller may report the transfer of all aircraft, watercraft,
20 motor vehicles, or trailers involved in that transaction to
21 the Department on the same uniform invoice-transaction
22 reporting return form. For purposes of this Section,
23 "watercraft" means a Class 2, Class 3, or Class 4 watercraft as
24 defined in Section 3-2 of the Boat Registration and Safety
25 Act, a personal watercraft, or any boat equipped with an
26 inboard motor.
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1 In addition, with respect to motor vehicles, watercraft,
2 aircraft, and trailers that are required to be registered with
3 an agency of this State, every person who is engaged in the
4 business of leasing or renting such items and who, in
5 connection with such business, sells any such item to a
6 retailer for the purpose of resale is, notwithstanding any
7 other provision of this Section to the contrary, authorized to
8 meet the return-filing requirement of this Act by reporting
9 the transfer of all the aircraft, watercraft, motor vehicles,
10 or trailers transferred for resale during a month to the
11 Department on the same uniform invoice-transaction reporting
12 return form on or before the 20th of the month following the
13 month in which the transfer takes place. Notwithstanding any
14 other provision of this Act to the contrary, all returns filed
15 under this paragraph must be filed by electronic means in the
16 manner and form as required by the Department.
17 Any retailer who sells only motor vehicles, watercraft,
18 aircraft, or trailers that are required to be registered with
19 an agency of this State, so that all retailers' occupation tax
20 liability is required to be reported, and is reported, on such
21 transaction reporting returns and who is not otherwise
22 required to file monthly or quarterly returns, need not file
23 monthly or quarterly returns. However, those retailers shall
24 be required to file returns on an annual basis.
25 The transaction reporting return, in the case of motor
26 vehicles or trailers that are required to be registered with
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1 an agency of this State, shall be the same document as the
2 Uniform Invoice referred to in Section 5-402 of the Illinois
3 Vehicle Code and must show the name and address of the seller;
4 the name and address of the purchaser; the amount of the
5 selling price including the amount allowed by the retailer for
6 traded-in property, if any; the amount allowed by the retailer
7 for the traded-in tangible personal property, if any, to the
8 extent to which Section 1 of this Act allows an exemption for
9 the value of traded-in property; the balance payable after
10 deducting such trade-in allowance from the total selling
11 price; the amount of tax due from the retailer with respect to
12 such transaction; the amount of tax collected from the
13 purchaser by the retailer on such transaction (or satisfactory
14 evidence that such tax is not due in that particular instance,
15 if that is claimed to be the fact); the place and date of the
16 sale; a sufficient identification of the property sold; such
17 other information as is required in Section 5-402 of the
18 Illinois Vehicle Code, and such other information as the
19 Department may reasonably require.
20 The transaction reporting return in the case of watercraft
21 or aircraft must show the name and address of the seller; the
22 name and address of the purchaser; the amount of the selling
23 price including the amount allowed by the retailer for
24 traded-in property, if any; the amount allowed by the retailer
25 for the traded-in tangible personal property, if any, to the
26 extent to which Section 1 of this Act allows an exemption for
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1 the value of traded-in property; the balance payable after
2 deducting such trade-in allowance from the total selling
3 price; the amount of tax due from the retailer with respect to
4 such transaction; the amount of tax collected from the
5 purchaser by the retailer on such transaction (or satisfactory
6 evidence that such tax is not due in that particular instance,
7 if that is claimed to be the fact); the place and date of the
8 sale, a sufficient identification of the property sold, and
9 such other information as the Department may reasonably
10 require.
11 Such transaction reporting return shall be filed not later
12 than 20 days after the day of delivery of the item that is
13 being sold, but may be filed by the retailer at any time sooner
14 than that if he chooses to do so. The transaction reporting
15 return and tax remittance or proof of exemption from the
16 Illinois use tax may be transmitted to the Department by way of
17 the State agency with which, or State officer with whom the
18 tangible personal property must be titled or registered (if
19 titling or registration is required) if the Department and
20 such agency or State officer determine that this procedure
21 will expedite the processing of applications for title or
22 registration.
23 With each such transaction reporting return, the retailer
24 shall remit the proper amount of tax due (or shall submit
25 satisfactory evidence that the sale is not taxable if that is
26 the case), to the Department or its agents, whereupon the
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1 Department shall issue, in the purchaser's name, a use tax
2 receipt (or a certificate of exemption if the Department is
3 satisfied that the particular sale is tax exempt) which such
4 purchaser may submit to the agency with which, or State
5 officer with whom, he must title or register the tangible
6 personal property that is involved (if titling or registration
7 is required) in support of such purchaser's application for an
8 Illinois certificate or other evidence of title or
9 registration to such tangible personal property.
10 No retailer's failure or refusal to remit tax under this
11 Act precludes a user, who has paid the proper tax to the
12 retailer, from obtaining his certificate of title or other
13 evidence of title or registration (if titling or registration
14 is required) upon satisfying the Department that such user has
15 paid the proper tax (if tax is due) to the retailer. The
16 Department shall adopt appropriate rules to carry out the
17 mandate of this paragraph.
18 If the user who would otherwise pay tax to the retailer
19 wants the transaction reporting return filed and the payment
20 of the tax or proof of exemption made to the Department before
21 the retailer is willing to take these actions and such user has
22 not paid the tax to the retailer, such user may certify to the
23 fact of such delay by the retailer and may (upon the Department
24 being satisfied of the truth of such certification) transmit
25 the information required by the transaction reporting return
26 and the remittance for tax or proof of exemption directly to
HB2755 Enrolled - 425 - LRB104 08253 BDA 18303 b
1 the Department and obtain his tax receipt or exemption
2 determination, in which event the transaction reporting return
3 and tax remittance (if a tax payment was required) shall be
4 credited by the Department to the proper retailer's account
5 with the Department, but without the vendor's discount
6 provided for in this Section being allowed. When the user pays
7 the tax directly to the Department, he shall pay the tax in the
8 same amount and in the same form in which it would be remitted
9 if the tax had been remitted to the Department by the retailer.
10 On and after January 1, 2025, with respect to the lease of
11 trailers, other than semitrailers as defined in Section 1-187
12 of the Illinois Vehicle Code, that are required to be
13 registered with an agency of this State and that are subject to
14 the tax on lease receipts under this Act, notwithstanding any
15 other provision of this Act to the contrary, for the purpose of
16 reporting and paying tax under this Act on those lease
17 receipts, lessors shall file returns in addition to and
18 separate from the transaction reporting return. Lessors shall
19 file those lease returns and make payment to the Department by
20 electronic means on or before the 20th day of each month
21 following the month, quarter, or year, as applicable, in which
22 lease receipts were received. All lease receipts received by
23 the lessor from the lease of those trailers during the same
24 reporting period shall be reported and tax shall be paid on a
25 single return form to be prescribed by the Department.
26 Refunds made by the seller during the preceding return
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1 period to purchasers, on account of tangible personal property
2 returned to the seller, shall be allowed as a deduction under
3 subdivision 5 of his monthly or quarterly return, as the case
4 may be, in case the seller had theretofore included the
5 receipts from the sale of such tangible personal property in a
6 return filed by him and had paid the tax imposed by this Act
7 with respect to such receipts.
8 Where the seller is a corporation, the return filed on
9 behalf of such corporation shall be signed by the president,
10 vice-president, secretary, or treasurer or by the properly
11 accredited agent of such corporation.
12 Where the seller is a limited liability company, the
13 return filed on behalf of the limited liability company shall
14 be signed by a manager, member, or properly accredited agent
15 of the limited liability company.
16 Except as provided in this Section, the retailer filing
17 the return under this Section shall, at the time of filing such
18 return, pay to the Department the amount of tax imposed by this
19 Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
20 on and after January 1, 1990, or $5 per calendar year,
21 whichever is greater, which is allowed to reimburse the
22 retailer for the expenses incurred in keeping records,
23 preparing and filing returns, remitting the tax and supplying
24 data to the Department on request. A On and after January 1,
25 2021, a certified service provider, as defined in the Leveling
26 the Playing Field for Illinois Retail Act, filing the return
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1 under this Section on behalf of a remote retailer or a retailer
2 maintaining a place of business in this State shall, at the
3 time of such return, pay to the Department the amount of tax
4 imposed by this Act less a discount of 1.75%. A remote retailer
5 or a retailer maintaining a place of business in this State
6 using a certified service provider to file a return on its
7 behalf, as provided in the Leveling the Playing Field for
8 Illinois Retail Act, is not eligible for the discount.
9 Beginning with returns due on or after January 1, 2025, the
10 vendor's discount allowed in this Section, the Service
11 Occupation Tax Act, the Use Tax Act, and the Service Use Tax
12 Act, including any local tax administered by the Department
13 and reported on the same return, shall not exceed $1,000 per
14 month in the aggregate for returns other than transaction
15 returns filed during the month. When determining the discount
16 allowed under this Section, retailers shall include the amount
17 of tax that would have been due at the 1% rate but for the 0%
18 rate imposed under Public Act 102-700. When determining the
19 discount allowed under this Section, retailers shall include
20 the amount of tax that would have been due at the 6.25% rate
21 but for the 1.25% rate imposed on sales tax holiday items under
22 Public Act 102-700. The discount under this Section is not
23 allowed for the 1.25% portion of taxes paid on aviation fuel
24 that is subject to the revenue use requirements of 49 U.S.C.
25 47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to
26 Section 2d of this Act shall be included in the amount on which
HB2755 Enrolled - 428 - LRB104 08253 BDA 18303 b
1 such discount is computed. In the case of retailers who report
2 and pay the tax on a transaction by transaction basis, as
3 provided in this Section, such discount shall be taken with
4 each such tax remittance instead of when such retailer files
5 his periodic return, but, beginning with returns due on or
6 after January 1, 2025, the vendor's discount allowed under
7 this Section and the Use Tax Act, including any local tax
8 administered by the Department and reported on the same
9 transaction return, shall not exceed $1,000 per month for all
10 transaction returns filed during the month. The discount
11 allowed under this Section is allowed only for returns that
12 are filed in the manner required by this Act. The Department
13 may disallow the discount for retailers whose certificate of
14 registration is revoked at the time the return is filed, but
15 only if the Department's decision to revoke the certificate of
16 registration has become final.
17 Before October 1, 2000, if the taxpayer's average monthly
18 tax liability to the Department under this Act, the Use Tax
19 Act, the Service Occupation Tax Act, and the Service Use Tax
20 Act, excluding any liability for prepaid sales tax to be
21 remitted in accordance with Section 2d of this Act, was
22 $10,000 or more during the preceding 4 complete calendar
23 quarters, he shall file a return with the Department each
24 month by the 20th day of the month next following the month
25 during which such tax liability is incurred and shall make
26 payments to the Department on or before the 7th, 15th, 22nd and
HB2755 Enrolled - 429 - LRB104 08253 BDA 18303 b
1 last day of the month during which such liability is incurred.
2 On and after October 1, 2000, if the taxpayer's average
3 monthly tax liability to the Department under this Act, the
4 Use Tax Act, the Service Occupation Tax Act, and the Service
5 Use Tax Act, excluding any liability for prepaid sales tax to
6 be remitted in accordance with Section 2d of this Act, was
7 $20,000 or more during the preceding 4 complete calendar
8 quarters, he shall file a return with the Department each
9 month by the 20th day of the month next following the month
10 during which such tax liability is incurred and shall make
11 payment to the Department on or before the 7th, 15th, 22nd and
12 last day of the month during which such liability is incurred.
13 If the month during which such tax liability is incurred began
14 prior to January 1, 1985, each payment shall be in an amount
15 equal to 1/4 of the taxpayer's actual liability for the month
16 or an amount set by the Department not to exceed 1/4 of the
17 average monthly liability of the taxpayer to the Department
18 for the preceding 4 complete calendar quarters (excluding the
19 month of highest liability and the month of lowest liability
20 in such 4 quarter period). If the month during which such tax
21 liability is incurred begins on or after January 1, 1985 and
22 prior to January 1, 1987, each payment shall be in an amount
23 equal to 22.5% of the taxpayer's actual liability for the
24 month or 27.5% of the taxpayer's liability for the same
25 calendar month of the preceding year. If the month during
26 which such tax liability is incurred begins on or after
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1 January 1, 1987 and prior to January 1, 1988, each payment
2 shall be in an amount equal to 22.5% of the taxpayer's actual
3 liability for the month or 26.25% of the taxpayer's liability
4 for the same calendar month of the preceding year. If the month
5 during which such tax liability is incurred begins on or after
6 January 1, 1988, and prior to January 1, 1989, or begins on or
7 after January 1, 1996, each payment shall be in an amount equal
8 to 22.5% of the taxpayer's actual liability for the month or
9 25% of the taxpayer's liability for the same calendar month of
10 the preceding year. If the month during which such tax
11 liability is incurred begins on or after January 1, 1989, and
12 prior to January 1, 1996, each payment shall be in an amount
13 equal to 22.5% of the taxpayer's actual liability for the
14 month or 25% of the taxpayer's liability for the same calendar
15 month of the preceding year or 100% of the taxpayer's actual
16 liability for the quarter monthly reporting period. The amount
17 of such quarter monthly payments shall be credited against the
18 final tax liability of the taxpayer's return for that month.
19 Before October 1, 2000, once applicable, the requirement of
20 the making of quarter monthly payments to the Department by
21 taxpayers having an average monthly tax liability of $10,000
22 or more as determined in the manner provided above shall
23 continue until such taxpayer's average monthly liability to
24 the Department during the preceding 4 complete calendar
25 quarters (excluding the month of highest liability and the
26 month of lowest liability) is less than $9,000, or until such
HB2755 Enrolled - 431 - LRB104 08253 BDA 18303 b
1 taxpayer's average monthly liability to the Department as
2 computed for each calendar quarter of the 4 preceding complete
3 calendar quarter period is less than $10,000. However, if a
4 taxpayer can show the Department that a substantial change in
5 the taxpayer's business has occurred which causes the taxpayer
6 to anticipate that his average monthly tax liability for the
7 reasonably foreseeable future will fall below the $10,000
8 threshold stated above, then such taxpayer may petition the
9 Department for a change in such taxpayer's reporting status.
10 On and after October 1, 2000, once applicable, the requirement
11 of the making of quarter monthly payments to the Department by
12 taxpayers having an average monthly tax liability of $20,000
13 or more as determined in the manner provided above shall
14 continue until such taxpayer's average monthly liability to
15 the Department during the preceding 4 complete calendar
16 quarters (excluding the month of highest liability and the
17 month of lowest liability) is less than $19,000 or until such
18 taxpayer's average monthly liability to the Department as
19 computed for each calendar quarter of the 4 preceding complete
20 calendar quarter period is less than $20,000. However, if a
21 taxpayer can show the Department that a substantial change in
22 the taxpayer's business has occurred which causes the taxpayer
23 to anticipate that his average monthly tax liability for the
24 reasonably foreseeable future will fall below the $20,000
25 threshold stated above, then such taxpayer may petition the
26 Department for a change in such taxpayer's reporting status.
HB2755 Enrolled - 432 - LRB104 08253 BDA 18303 b
1 The Department shall change such taxpayer's reporting status
2 unless it finds that such change is seasonal in nature and not
3 likely to be long term. Quarter monthly payment status shall
4 be determined under this paragraph as if the rate reduction to
5 0% in Public Act 102-700 on food for human consumption that is
6 to be consumed off the premises where it is sold (other than
7 alcoholic beverages, food consisting of or infused with adult
8 use cannabis, soft drinks, and food that has been prepared for
9 immediate consumption) had not occurred. For quarter monthly
10 payments due under this paragraph on or after July 1, 2023 and
11 through June 30, 2024, "25% of the taxpayer's liability for
12 the same calendar month of the preceding year" shall be
13 determined as if the rate reduction to 0% in Public Act 102-700
14 had not occurred. Quarter monthly payment status shall be
15 determined under this paragraph as if the rate reduction to
16 1.25% in Public Act 102-700 on sales tax holiday items had not
17 occurred. For quarter monthly payments due on or after July 1,
18 2023 and through June 30, 2024, "25% of the taxpayer's
19 liability for the same calendar month of the preceding year"
20 shall be determined as if the rate reduction to 1.25% in Public
21 Act 102-700 on sales tax holiday items had not occurred. If any
22 such quarter monthly payment is not paid at the time or in the
23 amount required by this Section, then the taxpayer shall be
24 liable for penalties and interest on the difference between
25 the minimum amount due as a payment and the amount of such
26 quarter monthly payment actually and timely paid, except
HB2755 Enrolled - 433 - LRB104 08253 BDA 18303 b
1 insofar as the taxpayer has previously made payments for that
2 month to the Department in excess of the minimum payments
3 previously due as provided in this Section. The Department
4 shall make reasonable rules and regulations to govern the
5 quarter monthly payment amount and quarter monthly payment
6 dates for taxpayers who file on other than a calendar monthly
7 basis.
8 The provisions of this paragraph apply before October 1,
9 2001. Without regard to whether a taxpayer is required to make
10 quarter monthly payments as specified above, any taxpayer who
11 is required by Section 2d of this Act to collect and remit
12 prepaid taxes and has collected prepaid taxes which average in
13 excess of $25,000 per month during the preceding 2 complete
14 calendar quarters, shall file a return with the Department as
15 required by Section 2f and shall make payments to the
16 Department on or before the 7th, 15th, 22nd and last day of the
17 month during which such liability is incurred. If the month
18 during which such tax liability is incurred began prior to
19 September 1, 1985 (the effective date of Public Act 84-221),
20 each payment shall be in an amount not less than 22.5% of the
21 taxpayer's actual liability under Section 2d. If the month
22 during which such tax liability is incurred begins on or after
23 January 1, 1986, each payment shall be in an amount equal to
24 22.5% of the taxpayer's actual liability for the month or
25 27.5% of the taxpayer's liability for the same calendar month
26 of the preceding calendar year. If the month during which such
HB2755 Enrolled - 434 - LRB104 08253 BDA 18303 b
1 tax liability is incurred begins on or after January 1, 1987,
2 each payment shall be in an amount equal to 22.5% of the
3 taxpayer's actual liability for the month or 26.25% of the
4 taxpayer's liability for the same calendar month of the
5 preceding year. The amount of such quarter monthly payments
6 shall be credited against the final tax liability of the
7 taxpayer's return for that month filed under this Section or
8 Section 2f, as the case may be. Once applicable, the
9 requirement of the making of quarter monthly payments to the
10 Department pursuant to this paragraph shall continue until
11 such taxpayer's average monthly prepaid tax collections during
12 the preceding 2 complete calendar quarters is $25,000 or less.
13 If any such quarter monthly payment is not paid at the time or
14 in the amount required, the taxpayer shall be liable for
15 penalties and interest on such difference, except insofar as
16 the taxpayer has previously made payments for that month in
17 excess of the minimum payments previously due.
18 The provisions of this paragraph apply on and after
19 October 1, 2001. Without regard to whether a taxpayer is
20 required to make quarter monthly payments as specified above,
21 any taxpayer who is required by Section 2d of this Act to
22 collect and remit prepaid taxes and has collected prepaid
23 taxes that average in excess of $20,000 per month during the
24 preceding 4 complete calendar quarters shall file a return
25 with the Department as required by Section 2f and shall make
26 payments to the Department on or before the 7th, 15th, 22nd,
HB2755 Enrolled - 435 - LRB104 08253 BDA 18303 b
1 and last day of the month during which the liability is
2 incurred. Each payment shall be in an amount equal to 22.5% of
3 the taxpayer's actual liability for the month or 25% of the
4 taxpayer's liability for the same calendar month of the
5 preceding year. The amount of the quarter monthly payments
6 shall be credited against the final tax liability of the
7 taxpayer's return for that month filed under this Section or
8 Section 2f, as the case may be. Once applicable, the
9 requirement of the making of quarter monthly payments to the
10 Department pursuant to this paragraph shall continue until the
11 taxpayer's average monthly prepaid tax collections during the
12 preceding 4 complete calendar quarters (excluding the month of
13 highest liability and the month of lowest liability) is less
14 than $19,000 or until such taxpayer's average monthly
15 liability to the Department as computed for each calendar
16 quarter of the 4 preceding complete calendar quarters is less
17 than $20,000. If any such quarter monthly payment is not paid
18 at the time or in the amount required, the taxpayer shall be
19 liable for penalties and interest on such difference, except
20 insofar as the taxpayer has previously made payments for that
21 month in excess of the minimum payments previously due.
22 If any payment provided for in this Section exceeds the
23 taxpayer's liabilities under this Act, the Use Tax Act, the
24 Service Occupation Tax Act, and the Service Use Tax Act, as
25 shown on an original monthly return, the Department shall, if
26 requested by the taxpayer, issue to the taxpayer a credit
HB2755 Enrolled - 436 - LRB104 08253 BDA 18303 b
1 memorandum no later than 30 days after the date of payment. The
2 credit evidenced by such credit memorandum may be assigned by
3 the taxpayer to a similar taxpayer under this Act, the Use Tax
4 Act, the Service Occupation Tax Act, or the Service Use Tax
5 Act, in accordance with reasonable rules and regulations to be
6 prescribed by the Department. If no such request is made, the
7 taxpayer may credit such excess payment against tax liability
8 subsequently to be remitted to the Department under this Act,
9 the Use Tax Act, the Service Occupation Tax Act, or the Service
10 Use Tax Act, in accordance with reasonable rules and
11 regulations prescribed by the Department. If the Department
12 subsequently determined that all or any part of the credit
13 taken was not actually due to the taxpayer, the taxpayer's
14 vendor's discount shall be reduced, if necessary, to reflect
15 the difference between the credit taken and that actually due,
16 and that taxpayer shall be liable for penalties and interest
17 on such difference.
18 If a retailer of motor fuel is entitled to a credit under
19 Section 2d of this Act which exceeds the taxpayer's liability
20 to the Department under this Act for the month for which the
21 taxpayer is filing a return, the Department shall issue the
22 taxpayer a credit memorandum for the excess.
23 The net revenue realized at the 15% rate under either
24 Section 4 or Section 5 of this Act shall be deposited as
25 follows: (i) notwithstanding the provisions of this Section to
26 the contrary, the net revenue realized from the portion of the
HB2755 Enrolled - 437 - LRB104 08253 BDA 18303 b
1 rate in excess of 5% shall be deposited into the State and
2 Local Sales Tax Reform Fund; and (ii) the net revenue realized
3 from the 5% portion of the rate shall be deposited as provided
4 in this Section for the 5% portion of the 6.25% general rate
5 imposed under this Act.
6 Beginning January 1, 1990, each month the Department shall
7 pay into the Local Government Tax Fund, a special fund in the
8 State treasury which is hereby created, the net revenue
9 realized for the preceding month from the 1% tax imposed under
10 this Act.
11 Beginning January 1, 1990, each month the Department shall
12 pay into the County and Mass Transit District Fund, a special
13 fund in the State treasury which is hereby created, 4% of the
14 net revenue realized for the preceding month from the 6.25%
15 general rate other than aviation fuel sold on or after
16 December 1, 2019. This exception for aviation fuel only
17 applies for so long as the revenue use requirements of 49
18 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
19 Beginning August 1, 2000, each month the Department shall
20 pay into the County and Mass Transit District Fund 20% of the
21 net revenue realized for the preceding month from the 1.25%
22 rate on the selling price of motor fuel and gasohol. If, in any
23 month, the tax on sales tax holiday items, as defined in
24 Section 2-8, is imposed at the rate of 1.25%, then the
25 Department shall pay 20% of the net revenue realized for that
26 month from the 1.25% rate on the selling price of sales tax
HB2755 Enrolled - 438 - LRB104 08253 BDA 18303 b
1 holiday items into the County and Mass Transit District Fund.
2 Beginning January 1, 1990, each month the Department shall
3 pay into the Local Government Tax Fund 16% of the net revenue
4 realized for the preceding month from the 6.25% general rate
5 on the selling price of tangible personal property other than
6 aviation fuel sold on or after December 1, 2019. This
7 exception for aviation fuel only applies for so long as the
8 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
9 47133 are binding on the State.
10 For aviation fuel sold on or after December 1, 2019, each
11 month the Department shall pay into the State Aviation Program
12 Fund 20% of the net revenue realized for the preceding month
13 from the 6.25% general rate on the selling price of aviation
14 fuel, less an amount estimated by the Department to be
15 required for refunds of the 20% portion of the tax on aviation
16 fuel under this Act, which amount shall be deposited into the
17 Aviation Fuel Sales Tax Refund Fund. The Department shall only
18 pay moneys into the State Aviation Program Fund and the
19 Aviation Fuel Sales Tax Refund Fund under this Act for so long
20 as the revenue use requirements of 49 U.S.C. 47107(b) and 49
21 U.S.C. 47133 are binding on the State.
22 Beginning August 1, 2000, each month the Department shall
23 pay into the Local Government Tax Fund 80% of the net revenue
24 realized for the preceding month from the 1.25% rate on the
25 selling price of motor fuel and gasohol. If, in any month, the
26 tax on sales tax holiday items, as defined in Section 2-8, is
HB2755 Enrolled - 439 - LRB104 08253 BDA 18303 b
1 imposed at the rate of 1.25%, then the Department shall pay 80%
2 of the net revenue realized for that month from the 1.25% rate
3 on the selling price of sales tax holiday items into the Local
4 Government Tax Fund.
5 Beginning October 1, 2009, each month the Department shall
6 pay into the Capital Projects Fund an amount that is equal to
7 an amount estimated by the Department to represent 80% of the
8 net revenue realized for the preceding month from the sale of
9 candy, grooming and hygiene products, and soft drinks that had
10 been taxed at a rate of 1% prior to September 1, 2009 but that
11 are now taxed at 6.25%.
12 Beginning July 1, 2011, each month the Department shall
13 pay into the Clean Air Act Permit Fund 80% of the net revenue
14 realized for the preceding month from the 6.25% general rate
15 on the selling price of sorbents used in Illinois in the
16 process of sorbent injection as used to comply with the
17 Environmental Protection Act or the federal Clean Air Act, but
18 the total payment into the Clean Air Act Permit Fund under this
19 Act and the Use Tax Act shall not exceed $2,000,000 in any
20 fiscal year.
21 Beginning July 1, 2013, each month the Department shall
22 pay into the Underground Storage Tank Fund from the proceeds
23 collected under this Act, the Use Tax Act, the Service Use Tax
24 Act, and the Service Occupation Tax Act an amount equal to the
25 average monthly deficit in the Underground Storage Tank Fund
26 during the prior year, as certified annually by the Illinois
HB2755 Enrolled - 440 - LRB104 08253 BDA 18303 b
1 Environmental Protection Agency, but the total payment into
2 the Underground Storage Tank Fund under this Act, the Use Tax
3 Act, the Service Use Tax Act, and the Service Occupation Tax
4 Act shall not exceed $18,000,000 in any State fiscal year. As
5 used in this paragraph, the "average monthly deficit" shall be
6 equal to the difference between the average monthly claims for
7 payment by the fund and the average monthly revenues deposited
8 into the fund, excluding payments made pursuant to this
9 paragraph.
10 Beginning July 1, 2015, of the remainder of the moneys
11 received by the Department under the Use Tax Act, the Service
12 Use Tax Act, the Service Occupation Tax Act, and this Act, each
13 month the Department shall deposit $500,000 into the State
14 Crime Laboratory Fund.
15 Of the remainder of the moneys received by the Department
16 pursuant to this Act, (a) 1.75% thereof shall be paid into the
17 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
18 and after July 1, 1989, 3.8% thereof shall be paid into the
19 Build Illinois Fund; provided, however, that if in any fiscal
20 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
21 may be, of the moneys received by the Department and required
22 to be paid into the Build Illinois Fund pursuant to this Act,
23 Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
24 Act, and Section 9 of the Service Occupation Tax Act, such Acts
25 being hereinafter called the "Tax Acts" and such aggregate of
26 2.2% or 3.8%, as the case may be, of moneys being hereinafter
HB2755 Enrolled - 441 - LRB104 08253 BDA 18303 b
1 called the "Tax Act Amount", and (2) the amount transferred to
2 the Build Illinois Fund from the State and Local Sales Tax
3 Reform Fund shall be less than the Annual Specified Amount (as
4 hereinafter defined), an amount equal to the difference shall
5 be immediately paid into the Build Illinois Fund from other
6 moneys received by the Department pursuant to the Tax Acts;
7 the "Annual Specified Amount" means the amounts specified
8 below for fiscal years 1986 through 1993:
9 Fiscal Year Annual Specified Amount
10 1986 $54,800,000
11 1987 $76,650,000
12 1988 $80,480,000
13 1989 $88,510,000
14 1990 $115,330,000
15 1991 $145,470,000
16 1992 $182,730,000
17 1993 $206,520,000;
18 and means the Certified Annual Debt Service Requirement (as
19 defined in Section 13 of the Build Illinois Bond Act) or the
20 Tax Act Amount, whichever is greater, for fiscal year 1994 and
21 each fiscal year thereafter; and further provided, that if on
22 the last business day of any month the sum of (1) the Tax Act
23 Amount required to be deposited into the Build Illinois Bond
24 Account in the Build Illinois Fund during such month and (2)
25 the amount transferred to the Build Illinois Fund from the
26 State and Local Sales Tax Reform Fund shall have been less than
HB2755 Enrolled - 442 - LRB104 08253 BDA 18303 b
1 1/12 of the Annual Specified Amount, an amount equal to the
2 difference shall be immediately paid into the Build Illinois
3 Fund from other moneys received by the Department pursuant to
4 the Tax Acts; and, further provided, that in no event shall the
5 payments required under the preceding proviso result in
6 aggregate payments into the Build Illinois Fund pursuant to
7 this clause (b) for any fiscal year in excess of the greater of
8 (i) the Tax Act Amount or (ii) the Annual Specified Amount for
9 such fiscal year. The amounts payable into the Build Illinois
10 Fund under clause (b) of the first sentence in this paragraph
11 shall be payable only until such time as the aggregate amount
12 on deposit under each trust indenture securing Bonds issued
13 and outstanding pursuant to the Build Illinois Bond Act is
14 sufficient, taking into account any future investment income,
15 to fully provide, in accordance with such indenture, for the
16 defeasance of or the payment of the principal of, premium, if
17 any, and interest on the Bonds secured by such indenture and on
18 any Bonds expected to be issued thereafter and all fees and
19 costs payable with respect thereto, all as certified by the
20 Director of the Bureau of the Budget (now Governor's Office of
21 Management and Budget). If on the last business day of any
22 month in which Bonds are outstanding pursuant to the Build
23 Illinois Bond Act, the aggregate of moneys deposited in the
24 Build Illinois Bond Account in the Build Illinois Fund in such
25 month shall be less than the amount required to be transferred
26 in such month from the Build Illinois Bond Account to the Build
HB2755 Enrolled - 443 - LRB104 08253 BDA 18303 b
1 Illinois Bond Retirement and Interest Fund pursuant to Section
2 13 of the Build Illinois Bond Act, an amount equal to such
3 deficiency shall be immediately paid from other moneys
4 received by the Department pursuant to the Tax Acts to the
5 Build Illinois Fund; provided, however, that any amounts paid
6 to the Build Illinois Fund in any fiscal year pursuant to this
7 sentence shall be deemed to constitute payments pursuant to
8 clause (b) of the first sentence of this paragraph and shall
9 reduce the amount otherwise payable for such fiscal year
10 pursuant to that clause (b). The moneys received by the
11 Department pursuant to this Act and required to be deposited
12 into the Build Illinois Fund are subject to the pledge, claim
13 and charge set forth in Section 12 of the Build Illinois Bond
14 Act.
15 Subject to payment of amounts into the Build Illinois Fund
16 as provided in the preceding paragraph or in any amendment
17 thereto hereafter enacted, the following specified monthly
18 installment of the amount requested in the certificate of the
19 Chairman of the Metropolitan Pier and Exposition Authority
20 provided under Section 8.25f of the State Finance Act, but not
21 in excess of sums designated as "Total Deposit", shall be
22 deposited in the aggregate from collections under Section 9 of
23 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
24 9 of the Service Occupation Tax Act, and Section 3 of the
25 Retailers' Occupation Tax Act into the McCormick Place
26 Expansion Project Fund in the specified fiscal years.
HB2755 Enrolled - 444 - LRB104 08253 BDA 18303 b
1 Fiscal Year Total Deposit
$0
2 1993
53,000,000
3 1994 58,000,000
61,000,000
4 1995 64,000,000
68,000,000
5 1996 71,000,000
75,000,000
6 1997 80,000,000
93,000,000
7 1998 99,000,000
103,000,000
8 1999 108,000,000
113,000,000
9 2000 119,000,000
126,000,000
10 2001 132,000,000
139,000,000
11 2002 146,000,000
153,000,000
12 2003 161,000,000
170,000,000
13 2004 179,000,000
189,000,000
14 2005 199,000,000
15 2006
16 2007
17 2008
18 2009
19 2010
20 2011
21 2012
22 2013
23 2014
24 2015
25 2016
26 2017
HB2755 Enrolled - 445 - LRB104 08253 BDA 18303 b
1 2018 210,000,000
221,000,000
2 2019 233,000,000
300,000,000
3 2020 300,000,000
300,000,000
4 2021 300,000,000
300,000,000
5 2022 300,000,000
375,000,000
6 2023 375,000,000
375,000,000
7 2024 375,000,000
375,000,000
8 2025 375,000,000
375,000,000
9 2026 375,000,000
375,000,000
10 2027 450,000,000
11 2028
12 2029
13 2030
14 2031
15 2032
16 2033
17 2034
18 2035
19 2036
20 and
21 each fiscal year
22 thereafter that bonds
23 are outstanding under
24 Section 13.2 of the
25 Metropolitan Pier and
26 Exposition Authority Act,
HB2755 Enrolled - 446 - LRB104 08253 BDA 18303 b
1 but not after fiscal year 2060.
2 Beginning July 20, 1993 and in each month of each fiscal
3 year thereafter, one-eighth of the amount requested in the
4 certificate of the Chairman of the Metropolitan Pier and
5 Exposition Authority for that fiscal year, less the amount
6 deposited into the McCormick Place Expansion Project Fund by
7 the State Treasurer in the respective month under subsection
8 (g) of Section 13 of the Metropolitan Pier and Exposition
9 Authority Act, plus cumulative deficiencies in the deposits
10 required under this Section for previous months and years,
11 shall be deposited into the McCormick Place Expansion Project
12 Fund, until the full amount requested for the fiscal year, but
13 not in excess of the amount specified above as "Total
14 Deposit", has been deposited.
15 Subject to payment of amounts into the Capital Projects
16 Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
17 and the McCormick Place Expansion Project Fund pursuant to the
18 preceding paragraphs or in any amendments thereto hereafter
19 enacted, for aviation fuel sold on or after December 1, 2019,
20 the Department shall each month deposit into the Aviation Fuel
21 Sales Tax Refund Fund an amount estimated by the Department to
22 be required for refunds of the 80% portion of the tax on
23 aviation fuel under this Act. The Department shall only
24 deposit moneys into the Aviation Fuel Sales Tax Refund Fund
25 under this paragraph for so long as the revenue use
26 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
HB2755 Enrolled - 447 - LRB104 08253 BDA 18303 b
1 binding on the State.
2 Subject to payment of amounts into the Build Illinois Fund
3 and the McCormick Place Expansion Project Fund pursuant to the
4 preceding paragraphs or in any amendments thereto hereafter
5 enacted, beginning July 1, 1993 and ending on September 30,
6 2013, the Department shall each month pay into the Illinois
7 Tax Increment Fund 0.27% of 80% of the net revenue realized for
8 the preceding month from the 6.25% general rate on the selling
9 price of tangible personal property.
10 Subject to payment of amounts into the Build Illinois
11 Fund, the McCormick Place Expansion Project Fund, and the
12 Illinois Tax Increment Fund pursuant to the preceding
13 paragraphs or in any amendments to this Section hereafter
14 enacted, beginning on the first day of the first calendar
15 month to occur on or after August 26, 2014 (the effective date
16 of Public Act 98-1098), each month, from the collections made
17 under Section 9 of the Use Tax Act, Section 9 of the Service
18 Use Tax Act, Section 9 of the Service Occupation Tax Act, and
19 Section 3 of the Retailers' Occupation Tax Act, the Department
20 shall pay into the Tax Compliance and Administration Fund, to
21 be used, subject to appropriation, to fund additional auditors
22 and compliance personnel at the Department of Revenue, an
23 amount equal to 1/12 of 5% of 80% of the cash receipts
24 collected during the preceding fiscal year by the Audit Bureau
25 of the Department under the Use Tax Act, the Service Use Tax
26 Act, the Service Occupation Tax Act, the Retailers' Occupation
HB2755 Enrolled - 448 - LRB104 08253 BDA 18303 b
1 Tax Act, and associated local occupation and use taxes
2 administered by the Department.
3 Subject to payments of amounts into the Build Illinois
4 Fund, the McCormick Place Expansion Project Fund, the Illinois
5 Tax Increment Fund, the Energy Infrastructure Fund, and the
6 Tax Compliance and Administration Fund as provided in this
7 Section, beginning on July 1, 2018 the Department shall pay
8 each month into the Downstate Public Transportation Fund the
9 moneys required to be so paid under Section 2-3 of the
10 Downstate Public Transportation Act.
11 Subject to successful execution and delivery of a
12 public-private agreement between the public agency and private
13 entity and completion of the civic build, beginning on July 1,
14 2023, of the remainder of the moneys received by the
15 Department under the Use Tax Act, the Service Use Tax Act, the
16 Service Occupation Tax Act, and this Act, the Department shall
17 deposit the following specified deposits in the aggregate from
18 collections under the Use Tax Act, the Service Use Tax Act, the
19 Service Occupation Tax Act, and the Retailers' Occupation Tax
20 Act, as required under Section 8.25g of the State Finance Act
21 for distribution consistent with the Public-Private
22 Partnership for Civic and Transit Infrastructure Project Act.
23 The moneys received by the Department pursuant to this Act and
24 required to be deposited into the Civic and Transit
25 Infrastructure Fund are subject to the pledge, claim and
26 charge set forth in Section 25-55 of the Public-Private
HB2755 Enrolled - 449 - LRB104 08253 BDA 18303 b
1 Partnership for Civic and Transit Infrastructure Project Act.
2 As used in this paragraph, "civic build", "private entity",
3 "public-private agreement", and "public agency" have the
4 meanings provided in Section 25-10 of the Public-Private
5 Partnership for Civic and Transit Infrastructure Project Act.
6 Fiscal Year ............................ Total Deposit
7 2024 .................................... $200,000,000
8 2025 .................................... $206,000,000
9 2026 .................................... $212,200,000
10 2027 .................................... $218,500,000
11 2028 .................................... $225,100,000
12 2029 .................................... $288,700,000
13 2030 .................................... $298,900,000
14 2031 .................................... $309,300,000
15 2032 .................................... $320,100,000
16 2033 .................................... $331,200,000
17 2034 .................................... $341,200,000
18 2035 .................................... $351,400,000
19 2036 .................................... $361,900,000
20 2037 .................................... $372,800,000
21 2038 .................................... $384,000,000
22 2039 .................................... $395,500,000
23 2040 .................................... $407,400,000
24 2041 .................................... $419,600,000
25 2042 .................................... $432,200,000
26 2043 .................................... $445,100,000
HB2755 Enrolled - 450 - LRB104 08253 BDA 18303 b
1 Beginning July 1, 2021 and until July 1, 2022, subject to
2 the payment of amounts into the County and Mass Transit
3 District Fund, the Local Government Tax Fund, the Build
4 Illinois Fund, the McCormick Place Expansion Project Fund, the
5 Illinois Tax Increment Fund, and the Tax Compliance and
6 Administration Fund as provided in this Section, the
7 Department shall pay each month into the Road Fund the amount
8 estimated to represent 16% of the net revenue realized from
9 the taxes imposed on motor fuel and gasohol. Beginning July 1,
10 2022 and until July 1, 2023, subject to the payment of amounts
11 into the County and Mass Transit District Fund, the Local
12 Government Tax Fund, the Build Illinois Fund, the McCormick
13 Place Expansion Project Fund, the Illinois Tax Increment Fund,
14 and the Tax Compliance and Administration Fund as provided in
15 this Section, the Department shall pay each month into the
16 Road Fund the amount estimated to represent 32% of the net
17 revenue realized from the taxes imposed on motor fuel and
18 gasohol. Beginning July 1, 2023 and until July 1, 2024,
19 subject to the payment of amounts into the County and Mass
20 Transit District Fund, the Local Government Tax Fund, the
21 Build Illinois Fund, the McCormick Place Expansion Project
22 Fund, the Illinois Tax Increment Fund, and the Tax Compliance
23 and Administration Fund as provided in this Section, the
24 Department shall pay each month into the Road Fund the amount
25 estimated to represent 48% of the net revenue realized from
26 the taxes imposed on motor fuel and gasohol. Beginning July 1,
HB2755 Enrolled - 451 - LRB104 08253 BDA 18303 b
1 2024 and until July 1, 2025, subject to the payment of amounts
2 into the County and Mass Transit District Fund, the Local
3 Government Tax Fund, the Build Illinois Fund, the McCormick
4 Place Expansion Project Fund, the Illinois Tax Increment Fund,
5 and the Tax Compliance and Administration Fund as provided in
6 this Section, the Department shall pay each month into the
7 Road Fund the amount estimated to represent 64% of the net
8 revenue realized from the taxes imposed on motor fuel and
9 gasohol. Beginning on July 1, 2025, subject to the payment of
10 amounts into the County and Mass Transit District Fund, the
11 Local Government Tax Fund, the Build Illinois Fund, the
12 McCormick Place Expansion Project Fund, the Illinois Tax
13 Increment Fund, and the Tax Compliance and Administration Fund
14 as provided in this Section, the Department shall pay each
15 month into the Road Fund the amount estimated to represent 80%
16 of the net revenue realized from the taxes imposed on motor
17 fuel and gasohol. As used in this paragraph "motor fuel" has
18 the meaning given to that term in Section 1.1 of the Motor Fuel
19 Tax Law, and "gasohol" has the meaning given to that term in
20 Section 3-40 of the Use Tax Act.
21 Of the remainder of the moneys received by the Department
22 pursuant to this Act, 75% thereof shall be paid into the State
23 treasury and 25% shall be reserved in a special account and
24 used only for the transfer to the Common School Fund as part of
25 the monthly transfer from the General Revenue Fund in
26 accordance with Section 8a of the State Finance Act.
HB2755 Enrolled - 452 - LRB104 08253 BDA 18303 b
1 The Department may, upon separate written notice to a
2 taxpayer, require the taxpayer to prepare and file with the
3 Department on a form prescribed by the Department within not
4 less than 60 days after receipt of the notice an annual
5 information return for the tax year specified in the notice.
6 Such annual return to the Department shall include a statement
7 of gross receipts as shown by the retailer's last federal
8 income tax return. If the total receipts of the business as
9 reported in the federal income tax return do not agree with the
10 gross receipts reported to the Department of Revenue for the
11 same period, the retailer shall attach to his annual return a
12 schedule showing a reconciliation of the 2 amounts and the
13 reasons for the difference. The retailer's annual return to
14 the Department shall also disclose the cost of goods sold by
15 the retailer during the year covered by such return, opening
16 and closing inventories of such goods for such year, costs of
17 goods used from stock or taken from stock and given away by the
18 retailer during such year, payroll information of the
19 retailer's business during such year and any additional
20 reasonable information which the Department deems would be
21 helpful in determining the accuracy of the monthly, quarterly,
22 or annual returns filed by such retailer as provided for in
23 this Section.
24 If the annual information return required by this Section
25 is not filed when and as required, the taxpayer shall be liable
26 as follows:
HB2755 Enrolled - 453 - LRB104 08253 BDA 18303 b
1 (i) Until January 1, 1994, the taxpayer shall be
2 liable for a penalty equal to 1/6 of 1% of the tax due from
3 such taxpayer under this Act during the period to be
4 covered by the annual return for each month or fraction of
5 a month until such return is filed as required, the
6 penalty to be assessed and collected in the same manner as
7 any other penalty provided for in this Act.
8 (ii) On and after January 1, 1994, the taxpayer shall
9 be liable for a penalty as described in Section 3-4 of the
10 Uniform Penalty and Interest Act.
11 The chief executive officer, proprietor, owner, or highest
12 ranking manager shall sign the annual return to certify the
13 accuracy of the information contained therein. Any person who
14 willfully signs the annual return containing false or
15 inaccurate information shall be guilty of perjury and punished
16 accordingly. The annual return form prescribed by the
17 Department shall include a warning that the person signing the
18 return may be liable for perjury.
19 The provisions of this Section concerning the filing of an
20 annual information return do not apply to a retailer who is not
21 required to file an income tax return with the United States
22 Government.
23 As soon as possible after the first day of each month, upon
24 certification of the Department of Revenue, the Comptroller
25 shall order transferred and the Treasurer shall transfer from
26 the General Revenue Fund to the Motor Fuel Tax Fund an amount
HB2755 Enrolled - 454 - LRB104 08253 BDA 18303 b
1 equal to 1.7% of 80% of the net revenue realized under this Act
2 for the second preceding month. Beginning April 1, 2000, this
3 transfer is no longer required and shall not be made.
4 Net revenue realized for a month shall be the revenue
5 collected by the State pursuant to this Act, less the amount
6 paid out during that month as refunds to taxpayers for
7 overpayment of liability.
8 For greater simplicity of administration, manufacturers,
9 importers and wholesalers whose products are sold at retail in
10 Illinois by numerous retailers, and who wish to do so, may
11 assume the responsibility for accounting and paying to the
12 Department all tax accruing under this Act with respect to
13 such sales, if the retailers who are affected do not make
14 written objection to the Department to this arrangement.
15 Any person who promotes, organizes, or provides retail
16 selling space for concessionaires or other types of sellers at
17 the Illinois State Fair, DuQuoin State Fair, county fairs,
18 local fairs, art shows, flea markets, and similar exhibitions
19 or events, including any transient merchant as defined by
20 Section 2 of the Transient Merchant Act of 1987, is required to
21 file a report with the Department providing the name of the
22 merchant's business, the name of the person or persons engaged
23 in merchant's business, the permanent address and Illinois
24 Retailers Occupation Tax Registration Number of the merchant,
25 the dates and location of the event, and other reasonable
26 information that the Department may require. The report must
HB2755 Enrolled - 455 - LRB104 08253 BDA 18303 b
1 be filed not later than the 20th day of the month next
2 following the month during which the event with retail sales
3 was held. Any person who fails to file a report required by
4 this Section commits a business offense and is subject to a
5 fine not to exceed $250.
6 Any person engaged in the business of selling tangible
7 personal property at retail as a concessionaire or other type
8 of seller at the Illinois State Fair, county fairs, art shows,
9 flea markets, and similar exhibitions or events, or any
10 transient merchants, as defined by Section 2 of the Transient
11 Merchant Act of 1987, may be required to make a daily report of
12 the amount of such sales to the Department and to make a daily
13 payment of the full amount of tax due. The Department shall
14 impose this requirement when it finds that there is a
15 significant risk of loss of revenue to the State at such an
16 exhibition or event. Such a finding shall be based on evidence
17 that a substantial number of concessionaires or other sellers
18 who are not residents of Illinois will be engaging in the
19 business of selling tangible personal property at retail at
20 the exhibition or event, or other evidence of a significant
21 risk of loss of revenue to the State. The Department shall
22 notify concessionaires and other sellers affected by the
23 imposition of this requirement. In the absence of notification
24 by the Department, the concessionaires and other sellers shall
25 file their returns as otherwise required in this Section.
26 (Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60,
HB2755 Enrolled - 456 - LRB104 08253 BDA 18303 b
1 Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
2 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
3 1-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363,
4 eff. 7-28-23; 103-592, Article 75, Section 75-20, eff. 1-1-25;
5 103-592, Article 110, Section 110-20, eff. 6-7-24; 103-605,
6 eff. 7-1-24; 103-1055, eff. 12-20-24.)
7 (35 ILCS 120/4) (from Ch. 120, par. 443)
8 Sec. 4. As soon as practicable after any return is filed,
9 the Department shall examine such return and shall, if
10 necessary, correct such return according to its best judgment
11 and information. If the correction of a return results in an
12 amount of tax that is understated on the taxpayer's return due
13 to a mathematical error, the Department shall notify the
14 taxpayer that the amount of tax in excess of that shown on the
15 return is due and has been assessed. The term "mathematical
16 error" means arithmetic errors or incorrect computations on
17 the return or supporting schedules. No such notice of
18 additional tax due shall be issued on and after each July 1 and
19 January 1 covering gross receipts received during any month or
20 period of time more than 3 years prior to such July 1 and
21 January 1, respectively. Such notice of additional tax due
22 shall not be considered a notice of tax liability nor shall the
23 taxpayer have any right of protest. In the event that the
24 return is corrected for any reason other than a mathematical
25 error, any return so corrected by the Department shall be
HB2755 Enrolled - 457 - LRB104 08253 BDA 18303 b
1 prima facie correct and shall be prima facie evidence of the
2 correctness of the amount of tax due, as shown therein. In
3 correcting transaction by transaction reporting returns
4 provided for in Section 3 of this Act, it shall be permissible
5 for the Department to show a single corrected return figure
6 for any given period of a calendar month instead of having to
7 correct each transaction by transaction return form
8 individually and having to show a corrected return figure for
9 each of such transaction by transaction return forms. In
10 making a correction of transaction by transaction, monthly or
11 quarterly returns covering a period of 6 months or more, it
12 shall be permissible for the Department to show a single
13 corrected return figure for any given 6-month period.
14 For sales sourced under this Act to the Illinois location
15 to which the tangible personal property is shipped or
16 delivered or at which possession is taken by the purchaser, if
17 the taxpayer fails to provide the information, schedules, or
18 supporting documents necessary to determine such location, the
19 Department shall, in lieu of imposing a penalty for an
20 unprocessable return under the Uniform Penalty and Interest
21 Act, assess tax on the gross receipts of such sales at the rate
22 of 15%.
23 Instead of requiring the person filing such return to file
24 an amended return, the Department may simply notify him of the
25 correction or corrections it has made.
26 Proof of such correction by the Department may be made at
HB2755 Enrolled - 458 - LRB104 08253 BDA 18303 b
1 any hearing before the Department or the Illinois Independent
2 Tax Tribunal or in any legal proceeding by a reproduced copy or
3 computer print-out of the Department's record relating thereto
4 in the name of the Department under the certificate of the
5 Director of Revenue. If reproduced copies of the Department's
6 records are offered as proof of such correction, the Director
7 must certify that those copies are true and exact copies of
8 records on file with the Department. If computer print-outs of
9 the Department's records are offered as proof of such
10 correction, the Director must certify that those computer
11 print-outs are true and exact representations of records
12 properly entered into standard electronic computing equipment,
13 in the regular course of the Department's business, at or
14 reasonably near the time of the occurrence of the facts
15 recorded, from trustworthy and reliable information. Such
16 certified reproduced copy or certified computer print-out
17 shall without further proof, be admitted into evidence before
18 the Department or in any legal proceeding and shall be prima
19 facie proof of the correctness of the amount of tax due, as
20 shown therein.
21 If the tax computed upon the basis of the gross receipts as
22 fixed by the Department is greater than the amount of tax due
23 under the return or returns as filed, the Department shall (or
24 if the tax or any part thereof that is admitted to be due by a
25 return or returns, whether filed on time or not, is not paid,
26 the Department may) issue the taxpayer a notice of tax
HB2755 Enrolled - 459 - LRB104 08253 BDA 18303 b
1 liability for the amount of tax claimed by the Department to be
2 due, together with a penalty in an amount determined in
3 accordance with Section 3-3 of the Uniform Penalty and
4 Interest Act. Provided, that if the incorrectness of any
5 return or returns as determined by the Department is due to
6 negligence or fraud, said penalty shall be in an amount
7 determined in accordance with Section 3-5 or Section 3-6 of
8 the Uniform Penalty and Interest Act, as the case may be. If
9 the notice of tax liability is not based on a correction of the
10 taxpayer's return or returns, but is based on the taxpayer's
11 failure to pay all or a part of the tax admitted by his return
12 or returns (whether filed on time or not) to be due, such
13 notice of tax liability shall be prima facie correct and shall
14 be prima facie evidence of the correctness of the amount of tax
15 due, as shown therein.
16 Proof of such notice of tax liability by the Department
17 may be made at any hearing before the Department or the
18 Illinois Independent Tax Tribunal or in any legal proceeding
19 by a reproduced copy of the Department's record relating
20 thereto in the name of the Department under the certificate of
21 the Director of Revenue. Such reproduced copy shall without
22 further proof, be admitted into evidence before the Department
23 or in any legal proceeding and shall be prima facie proof of
24 the correctness of the amount of tax due, as shown therein.
25 If the person filing any return dies or becomes a person
26 under legal disability at any time before the Department
HB2755 Enrolled - 460 - LRB104 08253 BDA 18303 b
1 issues its notice of tax liability, such notice shall be
2 issued to the administrator, executor or other legal
3 representative, as such, of such person.
4 Except in case of a fraudulent return, or in the case of an
5 amended return (where a notice of tax liability may be issued
6 on or after each January 1 and July 1 for an amended return
7 filed not more than 3 years prior to such January 1 or July 1,
8 respectively), no notice of tax liability shall be issued on
9 and after each January 1 and July 1 covering gross receipts
10 received during any month or period of time more than 3 years
11 prior to such January 1 and July 1, respectively. If, before
12 the expiration of the time prescribed in this Section for the
13 issuance of a notice of tax liability, both the Department and
14 the taxpayer have consented in writing to its issuance after
15 such time, such notice may be issued at any time prior to the
16 expiration of the period agreed upon. The period so agreed
17 upon may be extended by subsequent agreements in writing made
18 before the expiration of the period previously agreed upon.
19 The foregoing limitations upon the issuance of a notice of tax
20 liability shall not apply to the issuance of a notice of tax
21 liability with respect to any period of time prior thereto in
22 cases where the Department has, within the period of
23 limitation then provided, notified the person making the
24 return of a notice of tax liability even though such return,
25 with which the tax that was shown by such return to be due was
26 paid when the return was filed, had not been corrected by the
HB2755 Enrolled - 461 - LRB104 08253 BDA 18303 b
1 Department in the manner required herein prior to the issuance
2 of such notice, but in no case shall the amount of any such
3 notice of tax liability for any period otherwise barred by
4 this Act exceed for such period the amount shown in the notice
5 of tax liability theretofore issued.
6 If, when a tax or penalty under this Act becomes due and
7 payable, the person alleged to be liable therefor is out of the
8 State, the notice of tax liability may be issued within the
9 times herein limited after his coming into or return to the
10 State; and if, after the tax or penalty under this Act becomes
11 due and payable, the person alleged to be liable therefor
12 departs from and remains out of the State, the time of his or
13 her absence is no part of the time limited for the issuance of
14 the notice of tax liability; but the foregoing provisions
15 concerning absence from the State shall not apply to any case
16 in which, at the time when a tax or penalty becomes due under
17 this Act, the person allegedly liable therefor is not a
18 resident of this State.
19 The time limitation period on the Department's right to
20 issue a notice of tax liability shall not run during any period
21 of time in which the Order of any Court has the effect of
22 enjoining or restraining the Department from issuing the
23 notice of tax liability.
24 If such person or legal representative shall within 60
25 days after such notice of tax liability file a protest to said
26 notice of tax liability with the Department and request a
HB2755 Enrolled - 462 - LRB104 08253 BDA 18303 b
1 hearing thereon, the Department shall give notice to such
2 person or legal representative of the time and place fixed for
3 such hearing and shall hold a hearing in conformity with the
4 provisions of this Act, and pursuant thereto shall issue to
5 such person or legal representative a final assessment for the
6 amount found to be due as a result of such hearing. On or after
7 July 1, 2013, protests concerning matters that are subject to
8 the jurisdiction of the Illinois Independent Tax Tribunal
9 shall be filed with the Illinois Independent Tax Tribunal in
10 accordance with the Illinois Independent Tax Tribunal Act of
11 2012, and hearings concerning those matters shall be held
12 before the Tribunal in accordance with that Act. The Tribunal
13 shall give notice to such person of the time and place fixed
14 for such hearing and shall hold a hearing. With respect to
15 protests filed with the Department prior to July 1, 2013 that
16 would otherwise be subject to the jurisdiction of the Illinois
17 Independent Tax Tribunal, the taxpayer may elect to be subject
18 to the provisions of the Illinois Independent Tax Tribunal Act
19 of 2012 at any time on or after July 1, 2013, but not later
20 than 30 days after the date on which the protest was filed. If
21 made, the election shall be irrevocable.
22 If a protest to the notice of tax liability and a request
23 for a hearing thereon is not filed within 60 days after such
24 notice, such notice of tax liability shall become final
25 without the necessity of a final assessment being issued and
26 shall be deemed to be a final assessment.
HB2755 Enrolled - 463 - LRB104 08253 BDA 18303 b
1 Notwithstanding any other provisions of this Act, any
2 amount paid as tax or in respect of tax paid under this Act,
3 other than amounts paid as quarter-monthly payments, shall be
4 deemed assessed upon the date of receipt of payment.
5 After the issuance of a final assessment, or a notice of
6 tax liability which becomes final without the necessity of
7 actually issuing a final assessment as hereinbefore provided,
8 the Department, at any time before such assessment is reduced
9 to judgment, may (subject to rules of the Department) grant a
10 rehearing (or grant departmental review and hold an original
11 hearing if no previous hearing in the matter has been held)
12 upon the application of the person aggrieved. Pursuant to such
13 hearing or rehearing, the Department shall issue a revised
14 final assessment to such person or his legal representative
15 for the amount found to be due as a result of such hearing or
16 rehearing.
17 (Source: P.A. 103-9, eff. 1-1-24.)
18 (35 ILCS 120/5) (from Ch. 120, par. 444)
19 Sec. 5. In case any person engaged in the business of
20 selling tangible personal property at retail fails to file a
21 return when and as herein required, but thereafter, prior to
22 the Department's issuance of a notice of tax liability under
23 this Section, files a return and pays the tax, he shall also
24 pay a penalty in an amount determined in accordance with
25 Section 3-3 of the Uniform Penalty and Interest Act.
HB2755 Enrolled - 464 - LRB104 08253 BDA 18303 b
1 In case any person engaged in the business of selling
2 tangible personal property at retail files the return at the
3 time required by this Act but fails to pay the tax, or any part
4 thereof, when due, a penalty in an amount determined in
5 accordance with Section 3-3 of the Uniform Penalty and
6 Interest Act shall be added thereto.
7 In case any person engaged in the business of selling
8 tangible personal property at retail fails to file a return
9 when and as herein required, but thereafter, prior to the
10 Department's issuance of a notice of tax liability under this
11 Section, files a return but fails to pay the entire tax, a
12 penalty in an amount determined in accordance with Section 3-3
13 of the Uniform Penalty and Interest Act shall be added
14 thereto.
15 In case any person engaged in the business of selling
16 tangible personal property at retail fails to file a return,
17 the Department shall determine the amount of tax due from him
18 according to its best judgment and information, which amount
19 so fixed by the Department shall be prima facie correct and
20 shall be prima facie evidence of the correctness of the amount
21 of tax due, as shown in such determination. In making any such
22 determination of tax due, it shall be permissible for the
23 Department to show a figure that represents the tax due for any
24 given period of 6 months instead of showing the amount of tax
25 due for each month separately. Proof of such determination by
26 the Department may be made at any hearing before the
HB2755 Enrolled - 465 - LRB104 08253 BDA 18303 b
1 Department or in any legal proceeding by a reproduced copy or
2 computer print-out of the Department's record relating thereto
3 in the name of the Department under the certificate of the
4 Director of Revenue. If reproduced copies of the Department's
5 records are offered as proof of such determination, the
6 Director must certify that those copies are true and exact
7 copies of records on file with the Department. If computer
8 print-outs of the Department's records are offered as proof of
9 such determination, the Director must certify that those
10 computer print-outs are true and exact representations of
11 records properly entered into standard electronic computing
12 equipment, in the regular course of the Department's business,
13 at or reasonably near the time of the occurrence of the facts
14 recorded, from trustworthy and reliable information. Such
15 certified reproduced copy or certified computer print-out
16 shall, without further proof, be admitted into evidence before
17 the Department or in any legal proceeding and shall be prima
18 facie proof of the correctness of the amount of tax due, as
19 shown therein. The Department shall issue the taxpayer a
20 notice of tax liability for the amount of tax claimed by the
21 Department to be due, together with a penalty of 30% thereof.
22 For sales sourced under this Act to the Illinois location
23 to which the tangible personal property is shipped or
24 delivered or at which possession is taken by the purchaser, if
25 the taxpayer fails to provide the information, schedules, or
26 supporting documents necessary to determine such location, the
HB2755 Enrolled - 466 - LRB104 08253 BDA 18303 b
1 Department shall, in lieu of imposing a penalty for an
2 unprocessable return under the Uniform Penalty and Interest
3 Act, assess tax on the gross receipts of such sales at the rate
4 of 15%.
5 However, where the failure to file any tax return required
6 under this Act on the date prescribed therefor (including any
7 extensions thereof), is shown to be unintentional and
8 nonfraudulent and has not occurred in the 2 years immediately
9 preceding the failure to file on the prescribed date or is due
10 to other reasonable cause the penalties imposed by this Act
11 shall not apply.
12 The taxpayer or the taxpayer's legal representative may,
13 within 60 days after such notice, file a protest to such notice
14 of tax liability with the Department and request a hearing
15 thereon. The Department shall give notice to such person or
16 the legal representative of such person of the time and place
17 fixed for such hearing, and shall hold a hearing in conformity
18 with the provisions of this Act, and pursuant thereto shall
19 issue a final assessment to such person or to the legal
20 representative of such person for the amount found to be due as
21 a result of such hearing. On and after July 1, 2013, protests
22 concerning matters that are under the jurisdiction of the
23 Illinois Independent Tax Tribunal shall be filed with the
24 Illinois Independent Tax Tribunal in accordance with the
25 Illinois Independent Tax Tribunal Act of 2012, and hearings
26 concerning those matters shall be held before the Tribunal in
HB2755 Enrolled - 467 - LRB104 08253 BDA 18303 b
1 accordance with that Act. With respect to protests filed with
2 the Illinois Independent Tax Tribunal, the Tribunal shall give
3 notice to that person or the legal representative of that
4 person of the time and place fixed for a hearing, and shall
5 hold a hearing in conformity with the provisions of this Act
6 and the Illinois Independent Tax Tribunal Act of 2012; and
7 pursuant thereto the Department shall issue a final assessment
8 to such person or to the legal representative of such person
9 for the amount found to be due as a result of the hearing. With
10 respect to protests filed with the Department prior to July 1,
11 2013 that would otherwise be subject to the jurisdiction of
12 the Illinois Independent Tax Tribunal, the taxpayer may elect
13 to be subject to the provisions of the Illinois Independent
14 Tax Tribunal Act of 2012 at any time on or after July 1, 2013,
15 but not later than 30 days after the date on which the protest
16 was filed. If made, the election shall be irrevocable.
17 If a protest to the notice of tax liability and a request
18 for a hearing thereon is not filed within 60 days after such
19 notice, such notice of tax liability shall become final
20 without the necessity of a final assessment being issued and
21 shall be deemed to be a final assessment.
22 After the issuance of a final assessment, or a notice of
23 tax liability which becomes final without the necessity of
24 actually issuing a final assessment as hereinbefore provided,
25 the Department, at any time before such assessment is reduced
26 to judgment, may (subject to rules of the Department) grant a
HB2755 Enrolled - 468 - LRB104 08253 BDA 18303 b
1 rehearing (or grant departmental review and hold an original
2 hearing if no previous hearing in the matter has been held)
3 upon the application of the person aggrieved. Pursuant to such
4 hearing or rehearing, the Department shall issue a revised
5 final assessment to such person or his legal representative
6 for the amount found to be due as a result of such hearing or
7 rehearing.
8 Except in case of failure to file a return, or with the
9 consent of the person to whom the notice of tax liability is to
10 be issued, no notice of tax liability shall be issued on and
11 after each July 1 and January 1 covering gross receipts
12 received during any month or period of time more than 3 years
13 prior to such July 1 and January 1, respectively, except that
14 if a return is not filed at the required time, no notice of tax
15 liability may be issued on and after each July 1 and January 1
16 for such return filed more than 3 years prior to such July 1
17 and January 1, respectively. The foregoing limitations upon
18 the issuance of a notice of tax liability shall not apply to
19 the issuance of any such notice with respect to any period of
20 time prior thereto in cases where the Department has, within
21 the period of limitation then provided, notified a person of
22 the amount of tax computed even though the Department had not
23 determined the amount of tax due from such person in the manner
24 required herein prior to the issuance of such notice, but in no
25 case shall the amount of any such notice of tax liability for
26 any period otherwise barred by this Act exceed for such period
HB2755 Enrolled - 469 - LRB104 08253 BDA 18303 b
1 the amount shown in the notice theretofore issued.
2 If, when a tax or penalty under this Act becomes due and
3 payable, the person alleged to be liable therefor is out of the
4 State, the notice of tax liability may be issued within the
5 times herein limited after his or her coming into or return to
6 the State; and if, after the tax or penalty under this Act
7 becomes due and payable, the person alleged to be liable
8 therefor departs from and remains out of the State, the time of
9 his or her absence is no part of the time limited for the
10 issuance of the notice of tax liability; but the foregoing
11 provisions concerning absence from the State shall not apply
12 to any case in which, at the time when a tax or penalty becomes
13 due under this Act, the person allegedly liable therefor is
14 not a resident of this State.
15 The time limitation period on the Department's right to
16 issue a notice of tax liability shall not run during any period
17 of time in which the order of any court has the effect of
18 enjoining or restraining the Department from issuing the
19 notice of tax liability.
20 In case of failure to pay the tax, or any portion thereof,
21 or any penalty provided for in this Act, or interest, when due,
22 the Department may bring suit to recover the amount of such
23 tax, or portion thereof, or penalty or interest; or, if the
24 taxpayer has died or become a person under legal disability,
25 may file a claim therefor against his estate; provided that no
26 such suit with respect to any tax, or portion thereof, or
HB2755 Enrolled - 470 - LRB104 08253 BDA 18303 b
1 penalty, or interest shall be instituted more than 6 years
2 after the date any proceedings in court for review thereof
3 have terminated or the time for the taking thereof has expired
4 without such proceedings being instituted, except with the
5 consent of the person from whom such tax or penalty or interest
6 is due; nor, except with such consent, shall such suit be
7 instituted more than 6 years after the date any return is filed
8 with the Department in cases where the return constitutes the
9 basis for the suit for unpaid tax, or portion thereof, or
10 penalty provided for in this Act, or interest: Provided that
11 the time limitation period on the Department's right to bring
12 any such suit shall not run during any period of time in which
13 the order of any court has the effect of enjoining or
14 restraining the Department from bringing such suit.
15 After the expiration of the period within which the person
16 assessed may file an action for judicial review under the
17 Administrative Review Law or the Illinois Independent Tax
18 Tribunal Act of 2012, as applicable, without such an action
19 being filed, a certified copy of the final assessment or
20 revised final assessment of the Department may be filed with
21 the Circuit Court of the county in which the taxpayer has his
22 principal place of business, or of Sangamon County in those
23 cases in which the taxpayer does not have his principal place
24 of business in this State. The certified copy of the final
25 assessment or revised final assessment shall be accompanied by
26 a certification which recites facts that are sufficient to
HB2755 Enrolled - 471 - LRB104 08253 BDA 18303 b
1 show that the Department complied with the jurisdictional
2 requirements of the Act in arriving at its final assessment or
3 its revised final assessment and that the taxpayer had his
4 opportunity for an administrative hearing and for judicial
5 review, whether he availed himself or herself of either or
6 both of these opportunities or not. If the court is satisfied
7 that the Department complied with the jurisdictional
8 requirements of the Act in arriving at its final assessment or
9 its revised final assessment and that the taxpayer had his
10 opportunity for an administrative hearing and for judicial
11 review, whether he availed himself of either or both of these
12 opportunities or not, the court shall render judgment in favor
13 of the Department and against the taxpayer for the amount
14 shown to be due by the final assessment or the revised final
15 assessment, plus any interest which may be due, and such
16 judgment shall be entered in the judgment docket of the court.
17 Such judgment shall bear the rate of interest as set by the
18 Uniform Penalty and Interest Act, but otherwise shall have the
19 same effect as other judgments. The judgment may be enforced,
20 and all laws applicable to sales for the enforcement of a
21 judgment shall be applicable to sales made under such
22 judgments. The Department shall file the certified copy of its
23 assessment, as herein provided, with the Circuit Court within
24 6 years after such assessment becomes final except when the
25 taxpayer consents in writing to an extension of such filing
26 period, and except that the time limitation period on the
HB2755 Enrolled - 472 - LRB104 08253 BDA 18303 b
1 Department's right to file the certified copy of its
2 assessment with the Circuit Court shall not run during any
3 period of time in which the order of any court has the effect
4 of enjoining or restraining the Department from filing such
5 certified copy of its assessment with the Circuit Court.
6 If, when the cause of action for a proceeding in court
7 accrues against a person, he or she is out of the State, the
8 action may be commenced within the times herein limited, after
9 his or her coming into or return to the State; and if, after
10 the cause of action accrues, he or she departs from and remains
11 out of the State, the time of his or her absence is no part of
12 the time limited for the commencement of the action; but the
13 foregoing provisions concerning absence from the State shall
14 not apply to any case in which, at the time the cause of action
15 accrues, the party against whom the cause of action accrues is
16 not a resident of this State. The time within which a court
17 action is to be commenced by the Department hereunder shall
18 not run from the date the taxpayer files a petition in
19 bankruptcy under the Federal Bankruptcy Act until 30 days
20 after notice of termination or expiration of the automatic
21 stay imposed by the Federal Bankruptcy Act.
22 No claim shall be filed against the estate of any deceased
23 person or any person under legal disability for any tax or
24 penalty or part of either, or interest, except in the manner
25 prescribed and within the time limited by the Probate Act of
26 1975, as amended.
HB2755 Enrolled - 473 - LRB104 08253 BDA 18303 b
1 The collection of tax or penalty or interest by any means
2 provided for herein shall not be a bar to any prosecution under
3 this Act.
4 In addition to any penalty provided for in this Act, any
5 amount of tax which is not paid when due shall bear interest at
6 the rate and in the manner specified in Sections 3-2 and 3-9 of
7 the Uniform Penalty and Interest Act from the date when such
8 tax becomes past due until such tax is paid or a judgment
9 therefor is obtained by the Department. If the time for making
10 or completing an audit of a taxpayer's books and records is
11 extended with the taxpayer's consent, at the request of and
12 for the convenience of the Department, beyond the date on
13 which the statute of limitations upon the issuance of a notice
14 of tax liability by the Department otherwise would run, no
15 interest shall accrue during the period of such extension or
16 until a Notice of Tax Liability is issued, whichever occurs
17 first.
18 In addition to any other remedy provided by this Act, and
19 regardless of whether the Department is making or intends to
20 make use of such other remedy, where a corporation or limited
21 liability company registered under this Act violates the
22 provisions of this Act or of any rule or regulation
23 promulgated thereunder, the Department may give notice to the
24 Attorney General of the identity of such a corporation or
25 limited liability company and of the violations committed by
26 such a corporation or limited liability company, for such
HB2755 Enrolled - 474 - LRB104 08253 BDA 18303 b
1 action as is not already provided for by this Act and as the
2 Attorney General may deem appropriate.
3 If the Department determines that an amount of tax or
4 penalty or interest was incorrectly assessed, whether as the
5 result of a mistake of fact or an error of law, the Department
6 shall waive the amount of tax or penalty or interest that
7 accrued due to the incorrect assessment.
8 (Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13;
9 98-584, eff. 8-27-13.)
10 (35 ILCS 120/6) (from Ch. 120, par. 445)
11 Sec. 6. Credit memorandum or refund. If it appears, after
12 claim therefor filed with the Department, that an amount of
13 tax or penalty or interest has been paid which was not due
14 under this Act, whether as the result of a mistake of fact or
15 an error of law, except as hereinafter provided, then the
16 Department shall issue a credit memorandum or refund to the
17 person who made the erroneous payment or, if that person died
18 or became a person under legal disability, to his or her legal
19 representative, as such. For purposes of this Section, the tax
20 is deemed to be erroneously paid by a retailer when the
21 manufacturer of a motor vehicle sold by the retailer accepts
22 the return of that automobile and refunds to the purchaser the
23 selling price of that vehicle as provided in the New Vehicle
24 Buyer Protection Act. When a motor vehicle is returned for a
25 refund of the purchase price under the New Vehicle Buyer
HB2755 Enrolled - 475 - LRB104 08253 BDA 18303 b
1 Protection Act, the Department shall issue a credit memorandum
2 or a refund for the amount of tax paid by the retailer under
3 this Act attributable to the initial sale of that vehicle.
4 Claims submitted by the retailer are subject to the same
5 restrictions and procedures provided for in this Act. If it is
6 determined that the Department should issue a credit
7 memorandum or refund, the Department may first apply the
8 amount thereof against any tax or penalty or interest due or to
9 become due under this Act or under the Use Tax Act, the Service
10 Occupation Tax Act, the Service Use Tax Act, or any local
11 occupation or use tax administered by the Department, Section
12 4 of the Water Commission Act of 1985, subsections (b), (c) and
13 (d) of Section 5.01 of the Local Mass Transit District Act, or
14 subsections (e), (f) and (g) of Section 4.03 of the Regional
15 Transportation Authority Act, from the person who made the
16 erroneous payment. If no tax or penalty or interest is due and
17 no proceeding is pending to determine whether such person is
18 indebted to the Department for tax or penalty or interest, the
19 credit memorandum or refund shall be issued to the claimant;
20 or (in the case of a credit memorandum) the credit memorandum
21 may be assigned and set over by the lawful holder thereof,
22 subject to reasonable rules of the Department, to any other
23 person who is subject to this Act, the Use Tax Act, the Service
24 Occupation Tax Act, the Service Use Tax Act, or any local
25 occupation or use tax administered by the Department, Section
26 4 of the Water Commission Act of 1985, subsections (b), (c) and
HB2755 Enrolled - 476 - LRB104 08253 BDA 18303 b
1 (d) of Section 5.01 of the Local Mass Transit District Act, or
2 subsections (e), (f) and (g) of Section 4.03 of the Regional
3 Transportation Authority Act, and the amount thereof applied
4 by the Department against any tax or penalty or interest due or
5 to become due under this Act or under the Use Tax Act, the
6 Service Occupation Tax Act, the Service Use Tax Act, or any
7 local occupation or use tax administered by the Department,
8 Section 4 of the Water Commission Act of 1985, subsections
9 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
10 District Act, or subsections (e), (f) and (g) of Section 4.03
11 of the Regional Transportation Authority Act, from such
12 assignee. However, as to any claim for credit or refund filed
13 with the Department on and after each January 1 and July 1 no
14 amount of tax or penalty or interest erroneously paid (either
15 in total or partial liquidation of a tax or penalty or amount
16 of interest under this Act) more than 3 years prior to such
17 January 1 and July 1, respectively, shall be credited or
18 refunded, except that if both the Department and the taxpayer
19 have agreed to an extension of time to issue a notice of tax
20 liability as provided in Section 4 of this Act, such claim may
21 be filed at any time prior to the expiration of the period
22 agreed upon. Notwithstanding any other provision of this Act
23 to the contrary, for any period included in a claim for credit
24 or refund for which the statute of limitations for issuing a
25 notice of tax liability under this Act will expire less than 6
26 months after the date a taxpayer files the claim for credit or
HB2755 Enrolled - 477 - LRB104 08253 BDA 18303 b
1 refund, the statute of limitations is automatically extended
2 for 6 months from the date it would have otherwise expired.
3 No claim may be allowed for any amount paid to the
4 Department, whether paid voluntarily or involuntarily, if paid
5 in total or partial liquidation of an assessment which had
6 become final before the claim for credit or refund to recover
7 the amount so paid is filed with the Department, or if paid in
8 total or partial liquidation of a judgment or order of court.
9 No credit may be allowed or refund made for any amount paid by
10 or collected from any claimant unless it appears (a) that the
11 claimant bore the burden of such amount and has not been
12 relieved thereof nor reimbursed therefor and has not shifted
13 such burden directly or indirectly through inclusion of such
14 amount in the price of the tangible personal property sold by
15 him or her or in any manner whatsoever; and that no
16 understanding or agreement, written or oral, exists whereby he
17 or she or his or her legal representative may be relieved of
18 the burden of such amount, be reimbursed therefor or may shift
19 the burden thereof; or (b) that he or she or his or her legal
20 representative has repaid unconditionally such amount to his
21 or her vendee (1) who bore the burden thereof and has not
22 shifted such burden directly or indirectly, in any manner
23 whatsoever; (2) who, if he or she has shifted such burden, has
24 repaid unconditionally such amount to his own vendee; and (3)
25 who is not entitled to receive any reimbursement therefor from
26 any other source than from his or her vendor, nor to be
HB2755 Enrolled - 478 - LRB104 08253 BDA 18303 b
1 relieved of such burden in any manner whatsoever. No credit
2 may be allowed or refund made for any amount paid by or
3 collected from any claimant unless it appears that the
4 claimant has unconditionally repaid, to the purchaser, any
5 amount collected from the purchaser and retained by the
6 claimant with respect to the same transaction under the Use
7 Tax Act.
8 Any credit or refund that is allowed under this Section
9 shall bear interest at the rate and in the manner specified in
10 the Uniform Penalty and Interest Act.
11 In case the Department determines that the claimant is
12 entitled to a refund, such refund shall be made only from the
13 Aviation Fuel Sales Tax Refund Fund or from such appropriation
14 as may be available for that purpose, as appropriate. If it
15 appears unlikely that the amount available would permit
16 everyone having a claim allowed during the period covered by
17 such appropriation or from the Aviation Fuel Sales Tax Refund
18 Fund, as appropriate, to elect to receive a cash refund, the
19 Department, by rule or regulation, shall provide for the
20 payment of refunds in hardship cases and shall define what
21 types of cases qualify as hardship cases.
22 If a retailer who has failed to pay retailers' occupation
23 tax on gross receipts from retail sales is required by the
24 Department to pay such tax, such retailer, without filing any
25 formal claim with the Department, shall be allowed to take
26 credit against such retailers' occupation tax liability to the
HB2755 Enrolled - 479 - LRB104 08253 BDA 18303 b
1 extent, if any, to which such retailer has paid an amount
2 equivalent to retailers' occupation tax or has paid use tax in
3 error to his or her vendor or vendors of the same tangible
4 personal property which such retailer bought for resale and
5 did not first use before selling it, and no penalty or interest
6 shall be charged to such retailer on the amount of such credit.
7 However, when such credit is allowed to the retailer by the
8 Department, the vendor is precluded from refunding any of that
9 tax to the retailer and filing a claim for credit or refund
10 with respect thereto with the Department. The provisions of
11 this amendatory Act shall be applied retroactively, regardless
12 of the date of the transaction.
13 (Source: P.A. 101-10, eff. 6-5-19; 102-40, eff. 6-25-21.)
14 Section 25-25. The Leveling the Playing Field for Illinois
15 Retail Act is amended by changing Sections 5-5, 5-10, 5-25,
16 5-27, and 5-30 as follows:
17 (35 ILCS 185/5-5)
18 Sec. 5-5. Findings. The General Assembly finds that
19 certified service providers and certified automated systems
20 simplify use and occupation tax compliance for remote
21 retailers, retailers maintaining a place of business in this
22 State, and servicemen maintaining a place of business in this
23 State, which fosters higher levels of accurate tax collection
24 and remittance and generates administrative savings and new
HB2755 Enrolled - 480 - LRB104 08253 BDA 18303 b
1 marginal tax revenue for both State and local taxing
2 jurisdictions. By making the services of certified service
3 providers and certified automated systems available to remote
4 retailers, retailers maintaining a place of business in this
5 State, and servicemen maintaining a place of business in this
6 State as provided in this Act, the State will substantially
7 eliminate the burden on those remote retailers, retailers
8 maintaining a place of business in this State, and servicemen
9 maintaining a place of business in this State to collect and
10 remit both State and local taxing jurisdiction use and
11 occupation taxes. While providing a means for remote
12 retailers, retailers maintaining a place of business in this
13 State, and servicemen maintaining a place of business in this
14 State to collect and remit tax on an even basis with Illinois
15 retailers, this Act also protects existing local tax revenue
16 streams by retaining origin sourcing for all transactions by
17 retailers and servicemen maintaining a physical presence in
18 Illinois on sales made to Illinois customers from a location
19 or locations inside of Illinois.
20 (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20;
21 102-634, eff. 8-27-21.)
22 (35 ILCS 185/5-10)
23 Sec. 5-10. Definitions. As used in this Act:
24 "Certified service provider" means an agent certified by
25 the Department to perform the remote retailer's use and
HB2755 Enrolled - 481 - LRB104 08253 BDA 18303 b
1 occupation tax functions of remote retailers, retailers
2 maintaining a place of business in this State, and servicemen
3 maintaining a place of business in this State, as outlined in
4 the contract between the State and the certified service
5 provider.
6 "Certified automated system" means an automated software
7 system that is certified by the State as meeting all
8 performance and tax calculation standards required by
9 Department rules.
10 "Department" means the Department of Revenue.
11 "Remote retailer" means a retailer as defined in Section 1
12 of the Retailers' Occupation Tax Act that has an obligation to
13 collect State and local retailers' occupation tax under
14 subsection (b) of Section 2 of the Retailers' Occupation Tax
15 Act.
16 "Retailer maintaining a place of business in this State"
17 has the meaning given to that term in Section 2 of the Use Tax
18 Act.
19 "Retailers' occupation tax" means the tax levied under the
20 Retailers' Occupation Tax Act and all applicable local
21 retailers' occupation taxes collected by the Department in
22 conjunction with the State retailers' occupation tax.
23 "Serviceman maintaining a place of business in this State"
24 has the meaning given to that term in Section 2 of the Service
25 Use Tax Act.
26 "Service occupation tax" means the tax levied under the
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1 Service Occupation Tax Act and all applicable local service
2 occupation taxes collected by the Department in conjunction
3 with the State service occupation tax.
4 (Source: P.A. 101-31, eff. 6-28-19.)
5 (35 ILCS 185/5-25)
6 Sec. 5-25. Certification.
7 (a) The Department shall, no later than July 1, 2020:
8 (1) establish uniform minimum standards that companies
9 wishing to be designated as a certified service provider
10 in this State must meet;
11 (2) establish uniform minimum standards that certified
12 automated systems must meet;
13 (3) establish a certification process to review the
14 systems of companies wishing to be designated as a
15 certified service provider in this State or of companies
16 wishing to use a certified automated process; this
17 certification process shall provide that companies that
18 meet all required standards and whose systems have been
19 tested and approved by the Department for properly
20 determining the taxability of items to be sold, the
21 correct tax rate to apply to a transaction, and the
22 appropriate jurisdictions to which the tax shall be
23 remitted, shall be certified;
24 (4) enter into a contractual relationship with each
25 company that qualifies as a certified service provider;
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1 those contracts shall, at a minimum, provide:
2 (A) that the certified service provider shall be
3 held liable for the tax imposed under this Act and the
4 Use Tax Act and all applicable local occupation taxes
5 administered by the Department if the certified
6 service provider fails to correctly remit the tax
7 after having been provided with the tax and
8 information by a remote retailer, retailer maintaining
9 a place of business in this State, or serviceman
10 maintaining a place of business in this State to
11 correctly remit the taxes imposed under this Act and
12 the Use Tax Act and all applicable local occupation
13 taxes administered by the Department; if the certified
14 service provider demonstrates to the satisfaction of
15 the Department that its failure to correctly remit tax
16 on a retail sale resulted from the certified service
17 provider's good faith reliance on incorrect or
18 insufficient information provided by the remote
19 retailer, retailer maintaining a place of business in
20 this State, or serviceman maintaining a place of
21 business in this State, the certified service provider
22 shall be relieved of liability for the tax on that
23 retail sale; in that case, the remote retailer,
24 retailer maintaining a place of business in this
25 State, or serviceman maintaining a place of business
26 in this State is liable for any resulting tax due;
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1 (B) the responsibilities of the certified service
2 provider and the remote retailers, retailers
3 maintaining a place of business in this State, or
4 servicemen maintaining a place of business in this
5 State that contract with the certified service
6 provider related to record keeping and auditing
7 consistent with requirements imposed under the
8 Retailers' Occupation Tax Act and the Use Tax Act;
9 (C) for the protection and confidentiality of tax
10 information consistent with requirements imposed under
11 the Retailers' Occupation Tax Act and the Use Tax Act;
12 (D) that a certified service provider may claim
13 the discount provided for in Section 3 of the
14 Retailers' Occupation Tax Act or Section 9 of the
15 Service Occupation Tax Act for the tax dollars it
16 collects and timely remits on returns that are timely
17 filed with the Department on behalf of remote
18 retailers , retailers maintaining a place of business
19 in this State, or servicemen maintaining a place of
20 business in this State; remote retailers, retailers
21 maintaining a place of business in this State, or
22 servicemen maintaining a place of business in this
23 State using a certified service provider may not claim
24 the discount allowed in Section 3 of the Retailers'
25 Occupation Tax Act or Section 9 of the Service
26 Occupation Tax Act with respect to those collections;
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1 and
2 (E) that the certified service provider shall file
3 a separate return for each remote retailer, retailer
4 maintaining a place of business in this State, or
5 serviceman maintaining a place of business in this
6 State with which it has a Tax Remittance Agreement.
7 The provisions of this Section shall supersede the
8 provisions of the Illinois Procurement Code.
9 (b) The Department may act jointly with other states to
10 establish the minimum standards and process for certification
11 required by paragraphs (1), (2), and (3) of subsection (a).
12 (c) When the systems of a certified service provider or
13 certified automated systems are updated or upgraded, they must
14 be recertified by the Department. Notification of changes
15 shall be provided to the Department prior to implementation.
16 Upon receipt of such notification, the Department shall review
17 and test the changes to assess whether the updated system of
18 the certified service provider or the updated certified
19 automated system can properly determine the taxability of
20 items to be sold, the correct tax rate to apply to a
21 transaction, and the appropriate jurisdictions to which the
22 tax shall be remitted. The Department shall recertify updated
23 systems that meet these requirements. The certified service
24 provider or retailer using a certified automated system shall
25 be liable for any tax resulting from errors caused by use of an
26 updated or upgraded system prior to recertification by the
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1 Department. In addition to these procedures, the Department
2 may periodically review the system of a certified service
3 provider or the certified automated system used by a retailer
4 to ensure that the system can properly determine the
5 taxability of items to be sold, the correct tax rate to apply
6 to a transaction, and the appropriate jurisdictions to which
7 the tax shall be remitted.
8 (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20;
9 102-634, eff. 8-27-21.)
10 (35 ILCS 185/5-27)
11 Sec. 5-27. Tax remittance agreement.
12 (a) Before using the services of a certified service
13 provider to remit taxes, remote retailers, retailers
14 maintaining a place of business in this State, and servicemen
15 maintaining a place of business in this State using a
16 certified service provider shall enter into a tax remittance
17 agreement with that certified service provider under which the
18 certified service provider agrees to remit all State
19 retailers' occupation taxes, service occupation taxes under
20 this Act, use tax, service use tax, and local occupation taxes
21 administered by the Department for sales made by the remote
22 retailer, retailer maintaining a place of business in this
23 State, or serviceman maintaining a place of business in this
24 State. A copy of the tax remittance agreement shall be
25 electronically filed with the Department by the certified
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1 service provider no later than 30 days prior to its effective
2 date.
3 (b) A certified service provider that has entered into a
4 tax remittance agreement with a remote retailer, retailer
5 maintaining a place of business in this State, or serviceman
6 maintaining a place of business in this State is required to
7 file all returns and remit all taxes required under the tax
8 remittance agreement, including all local occupation taxes
9 administered by the Department, with respect to all sales for
10 which there is not otherwise an exemption.
11 (Source: P.A. 101-604, eff. 1-1-20.)
12 (35 ILCS 185/5-30)
13 Sec. 5-30. Database; relief from liability; annual
14 verification; refunds.
15 (a) The Department shall, to the best of its ability,
16 utilize an electronic database to provide information
17 assigning purchaser addresses to the proper local taxing
18 jurisdiction.
19 (b) Remote retailers, retailers maintaining a place of
20 business in this State, and servicemen maintaining a place of
21 business in this State using certified service providers or
22 certified automated systems and their certified service
23 providers or certified automated systems providers are
24 relieved from liability to the State for having remitted the
25 incorrect amount of use or occupation tax resulting from a
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1 certified service provider or certified automated system
2 relying, at the time of the sale, on: (1) erroneous data
3 provided by the State in database files on tax rates,
4 boundaries, or taxing jurisdictions; or (2) erroneous data
5 provided by the State concerning the taxability of products
6 and services.
7 (c) Beginning February 1, 2022 and on or before February 1
8 of each year thereafter, the Department shall make available
9 to each local taxing jurisdiction the taxing jurisdiction's
10 boundaries, determined by the Department, for its
11 verification. Jurisdictions shall verify these taxing
12 jurisdiction boundaries and notify the Department of any
13 changes, additions, or deletions by April 1 of each year in the
14 form and manner required by the Department. The Department
15 shall use its best judgment and information to confirm the
16 information provided by the taxing jurisdictions and update
17 its database. The Department shall administer and enforce such
18 changes on the first day of the next following July.
19 (d) The clerk of any municipality or county from which
20 territory has been annexed or disconnected shall notify the
21 Department of Revenue of that annexation or disconnection in
22 the form and manner required by the Department. Required
23 documentation shall include a certified copy of the plat of
24 annexation or, in the case of disconnection, the ordinance,
25 final judgment, or resolution of disconnection together with
26 an accurate depiction of the territory disconnected.
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1 Notification shall be provided to the Department either (i) on
2 or before the first day of April, whereupon the Department
3 shall confirm the information provided by the municipality or
4 county and update its database and proceed to administer and
5 enforce the confirmed changes on the first day of July next
6 following the proper notification; or (ii) on or before the
7 first day of October, whereupon the Department shall confirm
8 the information provided by the municipality or county and
9 update its database and proceed to administer and enforce the
10 confirmed changes on the first day of January next following
11 proper notification.
12 (e) Nothing in this Section affects a customer's right to
13 seek a refund from the remote retailer, retailer maintaining a
14 place of business in this State, or serviceman maintaining a
15 place of business in this State as provided in this Act.
16 (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
17 ARTICLE 30
18 Section 30-5. The Illinois Income Tax Act is amended by
19 changing Section 304 as follows:
20 (35 ILCS 5/304) (from Ch. 120, par. 3-304)
21 Sec. 304. Business income of persons other than residents.
22 (a) In general. The business income of a person other than
23 a resident shall be allocated to this State if such person's
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1 business income is derived solely from this State. If a person
2 other than a resident derives business income from this State
3 and one or more other states, then, for tax years ending on or
4 before December 30, 1998, and except as otherwise provided by
5 this Section, such person's business income shall be
6 apportioned to this State by multiplying the income by a
7 fraction, the numerator of which is the sum of the property
8 factor (if any), the payroll factor (if any) and 200% of the
9 sales factor (if any), and the denominator of which is 4
10 reduced by the number of factors other than the sales factor
11 which have a denominator of zero and by an additional 2 if the
12 sales factor has a denominator of zero. For tax years ending on
13 or after December 31, 1998, and except as otherwise provided
14 by this Section, persons other than residents who derive
15 business income from this State and one or more other states
16 shall compute their apportionment factor by weighting their
17 property, payroll, and sales factors as provided in subsection
18 (h) of this Section.
19 (1) Property factor.
20 (A) The property factor is a fraction, the numerator
21 of which is the average value of the person's real and
22 tangible personal property owned or rented and used in the
23 trade or business in this State during the taxable year
24 and the denominator of which is the average value of all
25 the person's real and tangible personal property owned or
26 rented and used in the trade or business during the
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1 taxable year.
2 (B) Property owned by the person is valued at its
3 original cost. Property rented by the person is valued at
4 8 times the net annual rental rate. Net annual rental rate
5 is the annual rental rate paid by the person less any
6 annual rental rate received by the person from
7 sub-rentals.
8 (C) The average value of property shall be determined
9 by averaging the values at the beginning and ending of the
10 taxable year, but the Director may require the averaging
11 of monthly values during the taxable year if reasonably
12 required to reflect properly the average value of the
13 person's property.
14 (2) Payroll factor.
15 (A) The payroll factor is a fraction, the numerator of
16 which is the total amount paid in this State during the
17 taxable year by the person for compensation, and the
18 denominator of which is the total compensation paid
19 everywhere during the taxable year.
20 (B) Compensation is paid in this State if:
21 (i) The individual's service is performed entirely
22 within this State;
23 (ii) The individual's service is performed both
24 within and without this State, but the service
25 performed without this State is incidental to the
26 individual's service performed within this State; or
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1 (iii) For tax years ending prior to December 31,
2 2020, some of the service is performed within this
3 State and either the base of operations, or if there is
4 no base of operations, the place from which the
5 service is directed or controlled is within this
6 State, or the base of operations or the place from
7 which the service is directed or controlled is not in
8 any state in which some part of the service is
9 performed, but the individual's residence is in this
10 State. For tax years ending on or after December 31,
11 2020, compensation is paid in this State if some of the
12 individual's service is performed within this State,
13 the individual's service performed within this State
14 is nonincidental to the individual's service performed
15 without this State, and the individual's service is
16 performed within this State for more than 30 working
17 days during the tax year. The amount of compensation
18 paid in this State shall include the portion of the
19 individual's total compensation for services performed
20 on behalf of his or her employer during the tax year
21 which the number of working days spent within this
22 State during the tax year bears to the total number of
23 working days spent both within and without this State
24 during the tax year. For purposes of this paragraph:
25 (a) The term "working day" means all days
26 during the tax year in which the individual
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1 performs duties on behalf of his or her employer.
2 All days in which the individual performs no
3 duties on behalf of his or her employer (e.g.,
4 weekends, vacation days, sick days, and holidays)
5 are not working days.
6 (b) A working day is spent within this State
7 if:
8 (1) the individual performs service on
9 behalf of the employer and a greater amount of
10 time on that day is spent by the individual
11 performing duties on behalf of the employer
12 within this State, without regard to time
13 spent traveling, than is spent performing
14 duties on behalf of the employer without this
15 State; or
16 (2) the only service the individual
17 performs on behalf of the employer on that day
18 is traveling to a destination within this
19 State, and the individual arrives on that day.
20 (c) Working days spent within this State do
21 not include any day in which the employee is
22 performing services in this State during a
23 disaster period solely in response to a request
24 made to his or her employer by the government of
25 this State, by any political subdivision of this
26 State, or by a person conducting business in this
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1 State to perform disaster or emergency-related
2 services in this State. For purposes of this item
3 (c):
4 "Declared State disaster or emergency"
5 means a disaster or emergency event (i) for
6 which a Governor's proclamation of a state of
7 emergency has been issued or (ii) for which a
8 Presidential declaration of a federal major
9 disaster or emergency has been issued.
10 "Disaster period" means a period that
11 begins 10 days prior to the date of the
12 Governor's proclamation or the President's
13 declaration (whichever is earlier) and extends
14 for a period of 60 calendar days after the end
15 of the declared disaster or emergency period.
16 "Disaster or emergency-related services"
17 means repairing, renovating, installing,
18 building, or rendering services or conducting
19 other business activities that relate to
20 infrastructure that has been damaged,
21 impaired, or destroyed by the declared State
22 disaster or emergency.
23 "Infrastructure" means property and
24 equipment owned or used by a public utility,
25 communications network, broadband and Internet
26 internet service provider, cable and video
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1 service provider, electric or gas distribution
2 system, or water pipeline that provides
3 service to more than one customer or person,
4 including related support facilities.
5 "Infrastructure" includes, but is not limited
6 to, real and personal property such as
7 buildings, offices, power lines, cable lines,
8 poles, communications lines, pipes,
9 structures, and equipment.
10 (iv) Compensation paid to nonresident professional
11 athletes.
12 (a) General. The Illinois source income of a
13 nonresident individual who is a member of a
14 professional athletic team includes the portion of the
15 individual's total compensation for services performed
16 as a member of a professional athletic team during the
17 taxable year which the number of duty days spent
18 within this State performing services for the team in
19 any manner during the taxable year bears to the total
20 number of duty days spent both within and without this
21 State during the taxable year.
22 (b) Travel days. Travel days that do not involve
23 either a game, practice, team meeting, or other
24 similar team event are not considered duty days spent
25 in this State. However, such travel days are
26 considered in the total duty days spent both within
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1 and without this State.
2 (c) Definitions. For purposes of this subpart
3 (iv):
4 (1) The term "professional athletic team"
5 includes, but is not limited to, any professional
6 baseball, basketball, football, soccer, or hockey
7 team.
8 (2) The term "member of a professional
9 athletic team" includes those employees who are
10 active players, players on the disabled list, and
11 any other persons required to travel and who
12 travel with and perform services on behalf of a
13 professional athletic team on a regular basis.
14 This includes, but is not limited to, coaches,
15 managers, and trainers.
16 (3) Except as provided in items (C) and (D) of
17 this subpart (3), the term "duty days" means all
18 days during the taxable year from the beginning of
19 the professional athletic team's official
20 pre-season training period through the last game
21 in which the team competes or is scheduled to
22 compete. Duty days shall be counted for the year
23 in which they occur, including where a team's
24 official pre-season training period through the
25 last game in which the team competes or is
26 scheduled to compete, occurs during more than one
HB2755 Enrolled - 497 - LRB104 08253 BDA 18303 b
1 tax year.
2 (A) Duty days shall also include days on
3 which a member of a professional athletic team
4 performs service for a team on a date that
5 does not fall within the foregoing period
6 (e.g., participation in instructional leagues,
7 the "All Star Game", or promotional
8 "caravans"). Performing a service for a
9 professional athletic team includes conducting
10 training and rehabilitation activities, when
11 such activities are conducted at team
12 facilities.
13 (B) Also included in duty days are game
14 days, practice days, days spent at team
15 meetings, promotional caravans, preseason
16 training camps, and days served with the team
17 through all post-season games in which the
18 team competes or is scheduled to compete.
19 (C) Duty days for any person who joins a
20 team during the period from the beginning of
21 the professional athletic team's official
22 pre-season training period through the last
23 game in which the team competes, or is
24 scheduled to compete, shall begin on the day
25 that person joins the team. Conversely, duty
26 days for any person who leaves a team during
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1 this period shall end on the day that person
2 leaves the team. Where a person switches teams
3 during a taxable year, a separate duty-day
4 calculation shall be made for the period the
5 person was with each team.
6 (D) Days for which a member of a
7 professional athletic team is not compensated
8 and is not performing services for the team in
9 any manner, including days when such member of
10 a professional athletic team has been
11 suspended without pay and prohibited from
12 performing any services for the team, shall
13 not be treated as duty days.
14 (E) Days for which a member of a
15 professional athletic team is on the disabled
16 list and does not conduct rehabilitation
17 activities at facilities of the team, and is
18 not otherwise performing services for the team
19 in Illinois, shall not be considered duty days
20 spent in this State. All days on the disabled
21 list, however, are considered to be included
22 in total duty days spent both within and
23 without this State.
24 (4) The term "total compensation for services
25 performed as a member of a professional athletic
26 team" means the total compensation received during
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1 the taxable year for services performed:
2 (A) from the beginning of the official
3 pre-season training period through the last
4 game in which the team competes or is
5 scheduled to compete during that taxable year;
6 and
7 (B) during the taxable year on a date
8 which does not fall within the foregoing
9 period (e.g., participation in instructional
10 leagues, the "All Star Game", or promotional
11 caravans).
12 This compensation shall include, but is not
13 limited to, salaries, wages, bonuses as described
14 in this subpart, and any other type of
15 compensation paid during the taxable year to a
16 member of a professional athletic team for
17 services performed in that year. This compensation
18 does not include strike benefits, severance pay,
19 termination pay, contract or option year buy-out
20 payments, expansion or relocation payments, or any
21 other payments not related to services performed
22 for the team.
23 For purposes of this subparagraph, "bonuses"
24 included in "total compensation for services
25 performed as a member of a professional athletic
26 team" subject to the allocation described in
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1 Section 302(c)(1) are: bonuses earned as a result
2 of play (i.e., performance bonuses) during the
3 season, including bonuses paid for championship,
4 playoff or "bowl" games played by a team, or for
5 selection to all-star league or other honorary
6 positions; and bonuses paid for signing a
7 contract, unless the payment of the signing bonus
8 is not conditional upon the signee playing any
9 games for the team or performing any subsequent
10 services for the team or even making the team, the
11 signing bonus is payable separately from the
12 salary and any other compensation, and the signing
13 bonus is nonrefundable.
14 (3) Sales factor.
15 (A) The sales factor is a fraction, the numerator of
16 which is the total sales of the person in this State during
17 the taxable year, and the denominator of which is the
18 total sales of the person everywhere during the taxable
19 year.
20 (B) Sales of tangible personal property are in this
21 State if:
22 (i) The property is delivered or shipped to a
23 purchaser, other than the United States government,
24 within this State regardless of the f. o. b. point or
25 other conditions of the sale; or
26 (ii) The property is shipped from an office,
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1 store, warehouse, factory or other place of storage in
2 this State and either the purchaser is the United
3 States government or the person is not taxable in the
4 state of the purchaser; provided, however, that
5 premises owned or leased by a person who has
6 independently contracted with the seller for the
7 printing of newspapers, periodicals or books shall not
8 be deemed to be an office, store, warehouse, factory
9 or other place of storage for purposes of this
10 Section. Sales of tangible personal property are not
11 in this State if the seller and purchaser would be
12 members of the same unitary business group but for the
13 fact that either the seller or purchaser is a person
14 with 80% or more of total business activity outside of
15 the United States and the property is purchased for
16 resale.
17 (B-1) Patents, copyrights, trademarks, and similar
18 items of intangible personal property.
19 (i) Gross receipts from the licensing, sale, or
20 other disposition of a patent, copyright, trademark,
21 or similar item of intangible personal property, other
22 than gross receipts governed by paragraph (B-7) of
23 this item (3), are in this State to the extent the item
24 is utilized in this State during the year the gross
25 receipts are included in gross income.
26 (ii) Place of utilization.
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1 (I) A patent is utilized in a state to the
2 extent that it is employed in production,
3 fabrication, manufacturing, or other processing in
4 the state or to the extent that a patented product
5 is produced in the state. If a patent is utilized
6 in more than one state, the extent to which it is
7 utilized in any one state shall be a fraction
8 equal to the gross receipts of the licensee or
9 purchaser from sales or leases of items produced,
10 fabricated, manufactured, or processed within that
11 state using the patent and of patented items
12 produced within that state, divided by the total
13 of such gross receipts for all states in which the
14 patent is utilized.
15 (II) A copyright is utilized in a state to the
16 extent that printing or other publication
17 originates in the state. If a copyright is
18 utilized in more than one state, the extent to
19 which it is utilized in any one state shall be a
20 fraction equal to the gross receipts from sales or
21 licenses of materials printed or published in that
22 state divided by the total of such gross receipts
23 for all states in which the copyright is utilized.
24 (III) Trademarks and other items of intangible
25 personal property governed by this paragraph (B-1)
26 are utilized in the state in which the commercial
HB2755 Enrolled - 503 - LRB104 08253 BDA 18303 b
1 domicile of the licensee or purchaser is located.
2 (iii) If the state of utilization of an item of
3 property governed by this paragraph (B-1) cannot be
4 determined from the taxpayer's books and records or
5 from the books and records of any person related to the
6 taxpayer within the meaning of Section 267(b) of the
7 Internal Revenue Code, 26 U.S.C. 267, the gross
8 receipts attributable to that item shall be excluded
9 from both the numerator and the denominator of the
10 sales factor.
11 (B-2) Gross receipts from the license, sale, or other
12 disposition of patents, copyrights, trademarks, and
13 similar items of intangible personal property, other than
14 gross receipts governed by paragraph (B-7) of this item
15 (3), may be included in the numerator or denominator of
16 the sales factor only if gross receipts from licenses,
17 sales, or other disposition of such items comprise more
18 than 50% of the taxpayer's total gross receipts included
19 in gross income during the tax year and during each of the
20 2 immediately preceding tax years; provided that, when a
21 taxpayer is a member of a unitary business group, such
22 determination shall be made on the basis of the gross
23 receipts of the entire unitary business group.
24 (B-5) For taxable years ending on or after December
25 31, 2008, except as provided in subsections (ii) through
26 (vii), receipts from the sale of telecommunications
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1 service or mobile telecommunications service are in this
2 State if the customer's service address is in this State.
3 (i) For purposes of this subparagraph (B-5), the
4 following terms have the following meanings:
5 "Ancillary services" means services that are
6 associated with or incidental to the provision of
7 "telecommunications services", including, but not
8 limited to, "detailed telecommunications billing",
9 "directory assistance", "vertical service", and "voice
10 mail services".
11 "Air-to-Ground Radiotelephone service" means a
12 radio service, as that term is defined in 47 CFR 22.99,
13 in which common carriers are authorized to offer and
14 provide radio telecommunications service for hire to
15 subscribers in aircraft.
16 "Call-by-call Basis" means any method of charging
17 for telecommunications services where the price is
18 measured by individual calls.
19 "Communications Channel" means a physical or
20 virtual path of communications over which signals are
21 transmitted between or among customer channel
22 termination points.
23 "Conference bridging service" means an "ancillary
24 service" that links two or more participants of an
25 audio or video conference call and may include the
26 provision of a telephone number. "Conference bridging
HB2755 Enrolled - 505 - LRB104 08253 BDA 18303 b
1 service" does not include the "telecommunications
2 services" used to reach the conference bridge.
3 "Customer Channel Termination Point" means the
4 location where the customer either inputs or receives
5 the communications.
6 "Detailed telecommunications billing service"
7 means an "ancillary service" of separately stating
8 information pertaining to individual calls on a
9 customer's billing statement.
10 "Directory assistance" means an "ancillary
11 service" of providing telephone number information,
12 and/or address information.
13 "Home service provider" means the facilities based
14 carrier or reseller with which the customer contracts
15 for the provision of mobile telecommunications
16 services.
17 "Mobile telecommunications service" means
18 commercial mobile radio service, as defined in Section
19 20.3 of Title 47 of the Code of Federal Regulations as
20 in effect on June 1, 1999.
21 "Place of primary use" means the street address
22 representative of where the customer's use of the
23 telecommunications service primarily occurs, which
24 must be the residential street address or the primary
25 business street address of the customer. In the case
26 of mobile telecommunications services, "place of
HB2755 Enrolled - 506 - LRB104 08253 BDA 18303 b
1 primary use" must be within the licensed service area
2 of the home service provider.
3 "Post-paid telecommunication service" means the
4 telecommunications service obtained by making a
5 payment on a call-by-call basis either through the use
6 of a credit card or payment mechanism such as a bank
7 card, travel card, credit card, or debit card, or by
8 charge made to a telephone number which is not
9 associated with the origination or termination of the
10 telecommunications service. A post-paid calling
11 service includes telecommunications service, except a
12 prepaid wireless calling service, that would be a
13 prepaid calling service except it is not exclusively a
14 telecommunication service.
15 "Prepaid telecommunication service" means the
16 right to access exclusively telecommunications
17 services, which must be paid for in advance and which
18 enables the origination of calls using an access
19 number or authorization code, whether manually or
20 electronically dialed, and that is sold in
21 predetermined units or dollars of which the number
22 declines with use in a known amount.
23 "Prepaid Mobile telecommunication service" means a
24 telecommunications service that provides the right to
25 utilize mobile wireless service as well as other
26 non-telecommunication services, including, but not
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1 limited to, ancillary services, which must be paid for
2 in advance that is sold in predetermined units or
3 dollars of which the number declines with use in a
4 known amount.
5 "Private communication service" means a
6 telecommunication service that entitles the customer
7 to exclusive or priority use of a communications
8 channel or group of channels between or among
9 termination points, regardless of the manner in which
10 such channel or channels are connected, and includes
11 switching capacity, extension lines, stations, and any
12 other associated services that are provided in
13 connection with the use of such channel or channels.
14 "Service address" means:
15 (a) The location of the telecommunications
16 equipment to which a customer's call is charged
17 and from which the call originates or terminates,
18 regardless of where the call is billed or paid;
19 (b) If the location in line (a) is not known,
20 service address means the origination point of the
21 signal of the telecommunications services first
22 identified by either the seller's
23 telecommunications system or in information
24 received by the seller from its service provider
25 where the system used to transport such signals is
26 not that of the seller; and
HB2755 Enrolled - 508 - LRB104 08253 BDA 18303 b
1 (c) If the locations in line (a) and line (b)
2 are not known, the service address means the
3 location of the customer's place of primary use.
4 "Telecommunications service" means the electronic
5 transmission, conveyance, or routing of voice, data,
6 audio, video, or any other information or signals to a
7 point, or between or among points. The term
8 "telecommunications service" includes such
9 transmission, conveyance, or routing in which computer
10 processing applications are used to act on the form,
11 code or protocol of the content for purposes of
12 transmission, conveyance or routing without regard to
13 whether such service is referred to as voice over
14 Internet protocol services or is classified by the
15 Federal Communications Commission as enhanced or value
16 added. "Telecommunications service" does not include:
17 (a) Data processing and information services
18 that allow data to be generated, acquired, stored,
19 processed, or retrieved and delivered by an
20 electronic transmission to a purchaser when such
21 purchaser's primary purpose for the underlying
22 transaction is the processed data or information;
23 (b) Installation or maintenance of wiring or
24 equipment on a customer's premises;
25 (c) Tangible personal property;
26 (d) Advertising, including, but not limited
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1 to, directory advertising;
2 (e) Billing and collection services provided
3 to third parties;
4 (f) Internet access service;
5 (g) Radio and television audio and video
6 programming services, regardless of the medium,
7 including the furnishing of transmission,
8 conveyance and routing of such services by the
9 programming service provider. Radio and television
10 audio and video programming services shall
11 include, but not be limited to, cable service as
12 defined in 47 USC 522(6) and audio and video
13 programming services delivered by commercial
14 mobile radio service providers, as defined in 47
15 CFR 20.3;
16 (h) "Ancillary services"; or
17 (i) Digital products "delivered
18 electronically", including, but not limited to,
19 software, music, video, reading materials or
20 ringtones ring tones.
21 "Vertical service" means an "ancillary service"
22 that is offered in connection with one or more
23 "telecommunications services", which offers advanced
24 calling features that allow customers to identify
25 callers and to manage multiple calls and call
26 connections, including "conference bridging services".
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1 "Voice mail service" means an "ancillary service"
2 that enables the customer to store, send or receive
3 recorded messages. "Voice mail service" does not
4 include any "vertical services" that the customer may
5 be required to have in order to utilize the "voice mail
6 service".
7 (ii) Receipts from the sale of telecommunications
8 service sold on an individual call-by-call basis are
9 in this State if either of the following applies:
10 (a) The call both originates and terminates in
11 this State.
12 (b) The call either originates or terminates
13 in this State and the service address is located
14 in this State.
15 (iii) Receipts from the sale of postpaid
16 telecommunications service at retail are in this State
17 if the origination point of the telecommunication
18 signal, as first identified by the service provider's
19 telecommunication system or as identified by
20 information received by the seller from its service
21 provider if the system used to transport
22 telecommunication signals is not the seller's, is
23 located in this State.
24 (iv) Receipts from the sale of prepaid
25 telecommunications service or prepaid mobile
26 telecommunications service at retail are in this State
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1 if the purchaser obtains the prepaid card or similar
2 means of conveyance at a location in this State.
3 Receipts from recharging a prepaid telecommunications
4 service or mobile telecommunications service is in
5 this State if the purchaser's billing information
6 indicates a location in this State.
7 (v) Receipts from the sale of private
8 communication services are in this State as follows:
9 (a) 100% of receipts from charges imposed at
10 each channel termination point in this State.
11 (b) 100% of receipts from charges for the
12 total channel mileage between each channel
13 termination point in this State.
14 (c) 50% of the total receipts from charges for
15 service segments when those segments are between 2
16 customer channel termination points, 1 of which is
17 located in this State and the other is located
18 outside of this State, which segments are
19 separately charged.
20 (d) The receipts from charges for service
21 segments with a channel termination point located
22 in this State and in two or more other states, and
23 which segments are not separately billed, are in
24 this State based on a percentage determined by
25 dividing the number of customer channel
26 termination points in this State by the total
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1 number of customer channel termination points.
2 (vi) Receipts from charges for ancillary services
3 for telecommunications service sold to customers at
4 retail are in this State if the customer's primary
5 place of use of telecommunications services associated
6 with those ancillary services is in this State. If the
7 seller of those ancillary services cannot determine
8 where the associated telecommunications are located,
9 then the ancillary services shall be based on the
10 location of the purchaser.
11 (vii) Receipts to access a carrier's network or
12 from the sale of telecommunication services or
13 ancillary services for resale are in this State as
14 follows:
15 (a) 100% of the receipts from access fees
16 attributable to intrastate telecommunications
17 service that both originates and terminates in
18 this State.
19 (b) 50% of the receipts from access fees
20 attributable to interstate telecommunications
21 service if the interstate call either originates
22 or terminates in this State.
23 (c) 100% of the receipts from interstate end
24 user access line charges, if the customer's
25 service address is in this State. As used in this
26 subdivision, "interstate end user access line
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1 charges" includes, but is not limited to, the
2 surcharge approved by the federal communications
3 commission and levied pursuant to 47 CFR 69.
4 (d) Gross receipts from sales of
5 telecommunication services or from ancillary
6 services for telecommunications services sold to
7 other telecommunication service providers for
8 resale shall be sourced to this State using the
9 apportionment concepts used for non-resale
10 receipts of telecommunications services if the
11 information is readily available to make that
12 determination. If the information is not readily
13 available, then the taxpayer may use any other
14 reasonable and consistent method.
15 (B-7) For taxable years ending on or after December
16 31, 2008, receipts from the sale of broadcasting services
17 are in this State if the broadcasting services are
18 received in this State. For purposes of this paragraph
19 (B-7), the following terms have the following meanings:
20 "Advertising revenue" means consideration received
21 by the taxpayer in exchange for broadcasting services
22 or allowing the broadcasting of commercials or
23 announcements in connection with the broadcasting of
24 film or radio programming, from sponsorships of the
25 programming, or from product placements in the
26 programming.
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1 "Audience factor" means the ratio that the
2 audience or subscribers located in this State of a
3 station, a network, or a cable system bears to the
4 total audience or total subscribers for that station,
5 network, or cable system. The audience factor for film
6 or radio programming shall be determined by reference
7 to the books and records of the taxpayer or by
8 reference to published rating statistics provided the
9 method used by the taxpayer is consistently used from
10 year to year for this purpose and fairly represents
11 the taxpayer's activity in this State.
12 "Broadcast" or "broadcasting" or "broadcasting
13 services" means the transmission or provision of film
14 or radio programming, whether through the public
15 airwaves, by cable, by direct or indirect satellite
16 transmission, or by any other means of communication,
17 either through a station, a network, or a cable
18 system.
19 "Film" or "film programming" means the broadcast
20 on television of any and all performances, events, or
21 productions, including, but not limited to, news,
22 sporting events, plays, stories, or other literary,
23 commercial, educational, or artistic works, either
24 live or through the use of video tape, disc, or any
25 other type of format or medium. Each episode of a
26 series of films produced for television shall
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1 constitute a separate "film" notwithstanding that the
2 series relates to the same principal subject and is
3 produced during one or more tax periods.
4 "Radio" or "radio programming" means the broadcast
5 on radio of any and all performances, events, or
6 productions, including, but not limited to, news,
7 sporting events, plays, stories, or other literary,
8 commercial, educational, or artistic works, either
9 live or through the use of an audio tape, disc, or any
10 other format or medium. Each episode in a series of
11 radio programming produced for radio broadcast shall
12 constitute a separate "radio programming"
13 notwithstanding that the series relates to the same
14 principal subject and is produced during one or more
15 tax periods.
16 (i) In the case of advertising revenue from
17 broadcasting, the customer is the advertiser and
18 the service is received in this State if the
19 commercial domicile of the advertiser is in this
20 State.
21 (ii) In the case where film or radio
22 programming is broadcast by a station, a network,
23 or a cable system for a fee or other remuneration
24 received from the recipient of the broadcast, the
25 portion of the service that is received in this
26 State is measured by the portion of the recipients
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1 of the broadcast located in this State.
2 Accordingly, the fee or other remuneration for
3 such service that is included in the Illinois
4 numerator of the sales factor is the total of
5 those fees or other remuneration received from
6 recipients in Illinois. For purposes of this
7 paragraph, a taxpayer may determine the location
8 of the recipients of its broadcast using the
9 address of the recipient shown in its contracts
10 with the recipient or using the billing address of
11 the recipient in the taxpayer's records.
12 (iii) In the case where film or radio
13 programming is broadcast by a station, a network,
14 or a cable system for a fee or other remuneration
15 from the person providing the programming, the
16 portion of the broadcast service that is received
17 by such station, network, or cable system in this
18 State is measured by the portion of recipients of
19 the broadcast located in this State. Accordingly,
20 the amount of revenue related to such an
21 arrangement that is included in the Illinois
22 numerator of the sales factor is the total fee or
23 other total remuneration from the person providing
24 the programming related to that broadcast
25 multiplied by the Illinois audience factor for
26 that broadcast.
HB2755 Enrolled - 517 - LRB104 08253 BDA 18303 b
1 (iv) In the case where film or radio
2 programming is provided by a taxpayer that is a
3 network or station to a customer for broadcast in
4 exchange for a fee or other remuneration from that
5 customer the broadcasting service is received at
6 the location of the office of the customer from
7 which the services were ordered in the regular
8 course of the customer's trade or business.
9 Accordingly, in such a case the revenue derived by
10 the taxpayer that is included in the taxpayer's
11 Illinois numerator of the sales factor is the
12 revenue from such customers who receive the
13 broadcasting service in Illinois.
14 (v) In the case where film or radio
15 programming is provided by a taxpayer that is not
16 a network or station to another person for
17 broadcasting in exchange for a fee or other
18 remuneration from that person, the broadcasting
19 service is received at the location of the office
20 of the customer from which the services were
21 ordered in the regular course of the customer's
22 trade or business. Accordingly, in such a case the
23 revenue derived by the taxpayer that is included
24 in the taxpayer's Illinois numerator of the sales
25 factor is the revenue from such customers who
26 receive the broadcasting service in Illinois.
HB2755 Enrolled - 518 - LRB104 08253 BDA 18303 b
1 (B-8) Gross receipts from winnings under the Illinois
2 Lottery Law from the assignment of a prize under Section
3 13.1 of the Illinois Lottery Law are received in this
4 State. This paragraph (B-8) applies only to taxable years
5 ending on or after December 31, 2013.
6 (B-9) For taxable years ending on or after December
7 31, 2019, gross receipts from winnings from pari-mutuel
8 wagering conducted at a wagering facility licensed under
9 the Illinois Horse Racing Act of 1975 or from winnings
10 from gambling games conducted on a riverboat or in a
11 casino or organization gaming facility licensed under the
12 Illinois Gambling Act are in this State.
13 (B-10) For taxable years ending on or after December
14 31, 2021, gross receipts from winnings from sports
15 wagering conducted in accordance with the Sports Wagering
16 Act are in this State.
17 (C) For taxable years ending before December 31, 2008,
18 sales, other than sales governed by paragraphs (B), (B-1),
19 (B-2), and (B-8) are in this State if:
20 (i) The income-producing activity is performed in
21 this State; or
22 (ii) The income-producing activity is performed
23 both within and without this State and a greater
24 proportion of the income-producing activity is
25 performed within this State than without this State,
26 based on performance costs.
HB2755 Enrolled - 519 - LRB104 08253 BDA 18303 b
1 (C-5) For taxable years ending on or after December
2 31, 2008, sales, other than sales governed by paragraphs
3 (B), (B-1), (B-2), (B-5), and (B-7), are in this State if
4 any of the following criteria are met:
5 (i) Sales from the sale or lease of real property
6 are in this State if the property is located in this
7 State.
8 (ii) Sales from the lease or rental of tangible
9 personal property are in this State if the property is
10 located in this State during the rental period. Sales
11 from the lease or rental of tangible personal property
12 that is characteristically moving property, including,
13 but not limited to, motor vehicles, rolling stock,
14 aircraft, vessels, or mobile equipment are in this
15 State to the extent that the property is used in this
16 State.
17 (iii) In the case of interest, net gains (but not
18 less than zero) and other items of income from
19 intangible personal property, the sale is in this
20 State if:
21 (a) in the case of a taxpayer who is a dealer
22 in the item of intangible personal property within
23 the meaning of Section 475 of the Internal Revenue
24 Code, the income or gain is received from a
25 customer in this State. For purposes of this
26 subparagraph, a customer is in this State if the
HB2755 Enrolled - 520 - LRB104 08253 BDA 18303 b
1 customer is an individual, trust or estate who is
2 a resident of this State and, for all other
3 customers, if the customer's commercial domicile
4 is in this State. Unless the dealer has actual
5 knowledge of the residence or commercial domicile
6 of a customer during a taxable year, the customer
7 shall be deemed to be a customer in this State if
8 the billing address of the customer, as shown in
9 the records of the dealer, is in this State; or
10 (b) in all other cases, if the
11 income-producing activity of the taxpayer is
12 performed in this State or, if the
13 income-producing activity of the taxpayer is
14 performed both within and without this State, if a
15 greater proportion of the income-producing
16 activity of the taxpayer is performed within this
17 State than in any other state, based on
18 performance costs.
19 (iv) Sales of services are in this State if the
20 services are received in this State. For the purposes
21 of this section, gross receipts from the performance
22 of services provided to a corporation, partnership, or
23 trust may only be attributed to a state where that
24 corporation, partnership, or trust has a fixed place
25 of business. If the state where the services are
26 received is not readily determinable or is a state
HB2755 Enrolled - 521 - LRB104 08253 BDA 18303 b
1 where the corporation, partnership, or trust receiving
2 the service does not have a fixed place of business,
3 the services shall be deemed to be received at the
4 location of the office of the customer from which the
5 services were ordered in the regular course of the
6 customer's trade or business. If the ordering office
7 cannot be determined, the services shall be deemed to
8 be received at the office of the customer to which the
9 services are billed. If the taxpayer is not taxable in
10 the state in which the services are received, the sale
11 must be excluded from both the numerator and the
12 denominator of the sales factor. The Department shall
13 adopt rules prescribing where specific types of
14 service are received, including, but not limited to,
15 publishing, and utility service.
16 (D) For taxable years ending on or after December 31,
17 1995, the following items of income shall not be included
18 in the numerator or denominator of the sales factor:
19 dividends; amounts included under Section 78 of the
20 Internal Revenue Code; and Subpart F income as defined in
21 Section 952 of the Internal Revenue Code. No inference
22 shall be drawn from the enactment of this paragraph (D) in
23 construing this Section for taxable years ending before
24 December 31, 1995.
25 (E) Paragraphs (B-1) and (B-2) shall apply to tax
26 years ending on or after December 31, 1999, provided that
HB2755 Enrolled - 522 - LRB104 08253 BDA 18303 b
1 a taxpayer may elect to apply the provisions of these
2 paragraphs to prior tax years. Such election shall be made
3 in the form and manner prescribed by the Department, shall
4 be irrevocable, and shall apply to all tax years; provided
5 that, if a taxpayer's Illinois income tax liability for
6 any tax year, as assessed under Section 903 prior to
7 January 1, 1999, was computed in a manner contrary to the
8 provisions of paragraphs (B-1) or (B-2), no refund shall
9 be payable to the taxpayer for that tax year to the extent
10 such refund is the result of applying the provisions of
11 paragraph (B-1) or (B-2) retroactively. In the case of a
12 unitary business group, such election shall apply to all
13 members of such group for every tax year such group is in
14 existence, but shall not apply to any taxpayer for any
15 period during which that taxpayer is not a member of such
16 group.
17 (b) Insurance companies.
18 (1) In general. Except as otherwise provided by
19 paragraph (2), business income of an insurance company for
20 a taxable year shall be apportioned to this State by
21 multiplying such income by a fraction, the numerator of
22 which is the direct premiums written for insurance upon
23 property or risk in this State, and the denominator of
24 which is the direct premiums written for insurance upon
25 property or risk everywhere. For purposes of this
26 subsection, the term "direct premiums written" means the
HB2755 Enrolled - 523 - LRB104 08253 BDA 18303 b
1 total amount of direct premiums written, assessments and
2 annuity considerations as reported for the taxable year on
3 the annual statement filed by the company with the
4 Illinois Director of Insurance in the form approved by the
5 National Convention of Insurance Commissioners or such
6 other form as may be prescribed in lieu thereof.
7 (2) Reinsurance. If the principal source of premiums
8 written by an insurance company consists of premiums for
9 reinsurance accepted by it, the business income of such
10 company shall be apportioned to this State by multiplying
11 such income by a fraction, the numerator of which is the
12 sum of (i) direct premiums written for insurance upon
13 property or risk in this State, plus (ii) premiums written
14 for reinsurance accepted in respect of property or risk in
15 this State, and the denominator of which is the sum of
16 (iii) direct premiums written for insurance upon property
17 or risk everywhere, plus (iv) premiums written for
18 reinsurance accepted in respect of property or risk
19 everywhere. For purposes of this paragraph, premiums
20 written for reinsurance accepted in respect of property or
21 risk in this State, whether or not otherwise determinable,
22 may, at the election of the company, be determined on the
23 basis of the proportion which premiums written for
24 reinsurance accepted from companies commercially domiciled
25 in Illinois bears to premiums written for reinsurance
26 accepted from all sources, or, alternatively, in the
HB2755 Enrolled - 524 - LRB104 08253 BDA 18303 b
1 proportion which the sum of the direct premiums written
2 for insurance upon property or risk in this State by each
3 ceding company from which reinsurance is accepted bears to
4 the sum of the total direct premiums written by each such
5 ceding company for the taxable year. The election made by
6 a company under this paragraph for its first taxable year
7 ending on or after December 31, 2011, shall be binding for
8 that company for that taxable year and for all subsequent
9 taxable years, and may be altered only with the written
10 permission of the Department, which shall not be
11 unreasonably withheld.
12 (c) Financial organizations.
13 (1) In general. For taxable years ending before
14 December 31, 2008, business income of a financial
15 organization shall be apportioned to this State by
16 multiplying such income by a fraction, the numerator of
17 which is its business income from sources within this
18 State, and the denominator of which is its business income
19 from all sources. For the purposes of this subsection, the
20 business income of a financial organization from sources
21 within this State is the sum of the amounts referred to in
22 subparagraphs (A) through (E) following, but excluding the
23 adjusted income of an international banking facility as
24 determined in paragraph (2):
25 (A) Fees, commissions or other compensation for
26 financial services rendered within this State;
HB2755 Enrolled - 525 - LRB104 08253 BDA 18303 b
1 (B) Gross profits from trading in stocks, bonds or
2 other securities managed within this State;
3 (C) Dividends, and interest from Illinois
4 customers, which are received within this State;
5 (D) Interest charged to customers at places of
6 business maintained within this State for carrying
7 debit balances of margin accounts, without deduction
8 of any costs incurred in carrying such accounts; and
9 (E) Any other gross income resulting from the
10 operation as a financial organization within this
11 State.
12 In computing the amounts referred to in paragraphs (A)
13 through (E) of this subsection, any amount received by a
14 member of an affiliated group (determined under Section
15 1504(a) of the Internal Revenue Code but without reference
16 to whether any such corporation is an "includible
17 corporation" under Section 1504(b) of the Internal Revenue
18 Code) from another member of such group shall be included
19 only to the extent such amount exceeds expenses of the
20 recipient directly related thereto.
21 (2) International Banking Facility. For taxable years
22 ending before December 31, 2008:
23 (A) Adjusted Income. The adjusted income of an
24 international banking facility is its income reduced
25 by the amount of the floor amount.
26 (B) Floor Amount. The floor amount shall be the
HB2755 Enrolled - 526 - LRB104 08253 BDA 18303 b
1 amount, if any, determined by multiplying the income
2 of the international banking facility by a fraction,
3 not greater than one, which is determined as follows:
4 (i) The numerator shall be:
5 The average aggregate, determined on a
6 quarterly basis, of the financial organization's
7 loans to banks in foreign countries, to foreign
8 domiciled borrowers (except where secured
9 primarily by real estate) and to foreign
10 governments and other foreign official
11 institutions, as reported for its branches,
12 agencies and offices within the state on its
13 "Consolidated Report of Condition", Schedule A,
14 Lines 2.c., 5.b., and 7.a., which was filed with
15 the Federal Deposit Insurance Corporation and
16 other regulatory authorities, for the year 1980,
17 minus
18 The average aggregate, determined on a
19 quarterly basis, of such loans (other than loans
20 of an international banking facility), as reported
21 by the financial institution for its branches,
22 agencies and offices within the state, on the
23 corresponding Schedule and lines of the
24 Consolidated Report of Condition for the current
25 taxable year, provided, however, that in no case
26 shall the amount determined in this clause (the
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1 subtrahend) exceed the amount determined in the
2 preceding clause (the minuend); and
3 (ii) the denominator shall be the average
4 aggregate, determined on a quarterly basis, of the
5 international banking facility's loans to banks in
6 foreign countries, to foreign domiciled borrowers
7 (except where secured primarily by real estate)
8 and to foreign governments and other foreign
9 official institutions, which were recorded in its
10 financial accounts for the current taxable year.
11 (C) Change to Consolidated Report of Condition and
12 in Qualification. In the event the Consolidated Report
13 of Condition which is filed with the Federal Deposit
14 Insurance Corporation and other regulatory authorities
15 is altered so that the information required for
16 determining the floor amount is not found on Schedule
17 A, lines 2.c., 5.b. and 7.a., the financial
18 institution shall notify the Department and the
19 Department may, by regulations or otherwise, prescribe
20 or authorize the use of an alternative source for such
21 information. The financial institution shall also
22 notify the Department should its international banking
23 facility fail to qualify as such, in whole or in part,
24 or should there be any amendment or change to the
25 Consolidated Report of Condition, as originally filed,
26 to the extent such amendment or change alters the
HB2755 Enrolled - 528 - LRB104 08253 BDA 18303 b
1 information used in determining the floor amount.
2 (3) For taxable years ending on or after December 31,
3 2008, the business income of a financial organization
4 shall be apportioned to this State by multiplying such
5 income by a fraction, the numerator of which is its gross
6 receipts from sources in this State or otherwise
7 attributable to this State's marketplace and the
8 denominator of which is its gross receipts everywhere
9 during the taxable year. "Gross receipts" for purposes of
10 this subparagraph (3) means gross income, including net
11 taxable gain on disposition of assets, including
12 securities and money market instruments, when derived from
13 transactions and activities in the regular course of the
14 financial organization's trade or business. The following
15 examples are illustrative:
16 (i) Receipts from the lease or rental of real or
17 tangible personal property are in this State if the
18 property is located in this State during the rental
19 period. Receipts from the lease or rental of tangible
20 personal property that is characteristically moving
21 property, including, but not limited to, motor
22 vehicles, rolling stock, aircraft, vessels, or mobile
23 equipment are from sources in this State to the extent
24 that the property is used in this State.
25 (ii) Interest income, commissions, fees, gains on
26 disposition, and other receipts from assets in the
HB2755 Enrolled - 529 - LRB104 08253 BDA 18303 b
1 nature of loans that are secured primarily by real
2 estate or tangible personal property are from sources
3 in this State if the security is located in this State.
4 (iii) Interest income, commissions, fees, gains on
5 disposition, and other receipts from consumer loans
6 that are not secured by real or tangible personal
7 property are from sources in this State if the debtor
8 is a resident of this State.
9 (iv) Interest income, commissions, fees, gains on
10 disposition, and other receipts from commercial loans
11 and installment obligations that are not secured by
12 real or tangible personal property are from sources in
13 this State if the proceeds of the loan are to be
14 applied in this State. If it cannot be determined
15 where the funds are to be applied, the income and
16 receipts are from sources in this State if the office
17 of the borrower from which the loan was negotiated in
18 the regular course of business is located in this
19 State. If the location of this office cannot be
20 determined, the income and receipts shall be excluded
21 from the numerator and denominator of the sales
22 factor.
23 (v) Interest income, fees, gains on disposition,
24 service charges, merchant discount income, and other
25 receipts from credit card receivables are from sources
26 in this State if the card charges are regularly billed
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1 to a customer in this State.
2 (vi) Receipts from the performance of services,
3 including, but not limited to, fiduciary, advisory,
4 and brokerage services, are in this State if the
5 services are received in this State within the meaning
6 of subparagraph (a)(3)(C-5)(iv) of this Section.
7 (vii) Receipts from the issuance of travelers
8 checks and money orders are from sources in this State
9 if the checks and money orders are issued from a
10 location within this State.
11 (viii) For tax years ending before December 31,
12 2024, receipts from investment assets and activities
13 and trading assets and activities are included in the
14 receipts factor as follows:
15 (1) Interest, dividends, net gains (but not
16 less than zero) and other income from investment
17 assets and activities from trading assets and
18 activities shall be included in the receipts
19 factor. Investment assets and activities and
20 trading assets and activities include, but are not
21 limited to: investment securities; trading account
22 assets; federal funds; securities purchased and
23 sold under agreements to resell or repurchase;
24 options; futures contracts; forward contracts;
25 notional principal contracts such as swaps;
26 equities; and foreign currency transactions. With
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1 respect to the investment and trading assets and
2 activities described in subparagraphs (A) and (B)
3 of this paragraph, the receipts factor shall
4 include the amounts described in such
5 subparagraphs.
6 (A) The receipts factor shall include the
7 amount by which interest from federal funds
8 sold and securities purchased under resale
9 agreements exceeds interest expense on federal
10 funds purchased and securities sold under
11 repurchase agreements.
12 (B) The receipts factor shall include the
13 amount by which interest, dividends, gains and
14 other income from trading assets and
15 activities, including, but not limited to,
16 assets and activities in the matched book, in
17 the arbitrage book, and foreign currency
18 transactions, exceed amounts paid in lieu of
19 interest, amounts paid in lieu of dividends,
20 and losses from such assets and activities.
21 (2) The numerator of the receipts factor
22 includes interest, dividends, net gains (but not
23 less than zero), and other income from investment
24 assets and activities and from trading assets and
25 activities described in paragraph (1) of this
26 subsection that are attributable to this State.
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1 (A) The amount of interest, dividends, net
2 gains (but not less than zero), and other
3 income from investment assets and activities
4 in the investment account to be attributed to
5 this State and included in the numerator is
6 determined by multiplying all such income from
7 such assets and activities by a fraction, the
8 numerator of which is the gross income from
9 such assets and activities which are properly
10 assigned to a fixed place of business of the
11 taxpayer within this State and the denominator
12 of which is the gross income from all such
13 assets and activities.
14 (B) The amount of interest from federal
15 funds sold and purchased and from securities
16 purchased under resale agreements and
17 securities sold under repurchase agreements
18 attributable to this State and included in the
19 numerator is determined by multiplying the
20 amount described in subparagraph (A) of
21 paragraph (1) of this subsection from such
22 funds and such securities by a fraction, the
23 numerator of which is the gross income from
24 such funds and such securities which are
25 properly assigned to a fixed place of business
26 of the taxpayer within this State and the
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1 denominator of which is the gross income from
2 all such funds and such securities.
3 (C) The amount of interest, dividends,
4 gains, and other income from trading assets
5 and activities, including, but not limited to,
6 assets and activities in the matched book, in
7 the arbitrage book and foreign currency
8 transactions (but excluding amounts described
9 in subparagraphs (A) or (B) of this
10 paragraph), attributable to this State and
11 included in the numerator is determined by
12 multiplying the amount described in
13 subparagraph (B) of paragraph (1) of this
14 subsection by a fraction, the numerator of
15 which is the gross income from such trading
16 assets and activities which are properly
17 assigned to a fixed place of business of the
18 taxpayer within this State and the denominator
19 of which is the gross income from all such
20 assets and activities.
21 (D) Properly assigned, for purposes of
22 this paragraph (2) of this subsection, means
23 the investment or trading asset or activity is
24 assigned to the fixed place of business with
25 which it has a preponderance of substantive
26 contacts. An investment or trading asset or
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1 activity assigned by the taxpayer to a fixed
2 place of business without the State shall be
3 presumed to have been properly assigned if:
4 (i) the taxpayer has assigned, in the
5 regular course of its business, such asset
6 or activity on its records to a fixed
7 place of business consistent with federal
8 or state regulatory requirements;
9 (ii) such assignment on its records is
10 based upon substantive contacts of the
11 asset or activity to such fixed place of
12 business; and
13 (iii) the taxpayer uses such records
14 reflecting assignment of such assets or
15 activities for the filing of all state and
16 local tax returns for which an assignment
17 of such assets or activities to a fixed
18 place of business is required.
19 (E) The presumption of proper assignment
20 of an investment or trading asset or activity
21 provided in subparagraph (D) of paragraph (2)
22 of this subsection may be rebutted upon a
23 showing by the Department, supported by a
24 preponderance of the evidence, that the
25 preponderance of substantive contacts
26 regarding such asset or activity did not occur
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1 at the fixed place of business to which it was
2 assigned on the taxpayer's records. If the
3 fixed place of business that has a
4 preponderance of substantive contacts cannot
5 be determined for an investment or trading
6 asset or activity to which the presumption in
7 subparagraph (D) of paragraph (2) of this
8 subsection does not apply or with respect to
9 which that presumption has been rebutted, that
10 asset or activity is properly assigned to the
11 state in which the taxpayer's commercial
12 domicile is located. For purposes of this
13 subparagraph (E), it shall be presumed,
14 subject to rebuttal, that taxpayer's
15 commercial domicile is in the state of the
16 United States or the District of Columbia to
17 which the greatest number of employees are
18 regularly connected with the management of the
19 investment or trading income or out of which
20 they are working, irrespective of where the
21 services of such employees are performed, as
22 of the last day of the taxable year.
23 (ix) For tax years ending on or after December 31,
24 2024, receipts from investment assets and activities
25 and trading assets and activities are included in the
26 receipts factor as follows:
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1 (1) Interest, dividends, net gains (but not
2 less than zero), and other income from investment
3 assets and activities from trading assets and
4 activities shall be included in the receipts
5 factor. Investment assets and activities and
6 trading assets and activities include, but are not
7 limited to the following: investment securities;
8 trading account assets; federal funds; securities
9 purchased and sold under agreements to resell or
10 repurchase; options; futures contracts; forward
11 contracts; notional principal contracts, such as
12 swaps; equities; and foreign currency
13 transactions. With respect to the investment and
14 trading assets and activities described in
15 subparagraphs (A) and (B) of this paragraph, the
16 receipts factor shall include the amounts
17 described in those subparagraphs.
18 (A) The receipts factor shall include the
19 amount by which interest from federal funds
20 sold and securities purchased under resale
21 agreements exceeds interest expense on federal
22 funds purchased and securities sold under
23 repurchase agreements.
24 (B) The receipts factor shall include the
25 amount by which interest, dividends, gains and
26 other income from trading assets and
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1 activities, including, but not limited to,
2 assets and activities in the matched book, in
3 the arbitrage book, and foreign currency
4 transactions, exceed amounts paid in lieu of
5 interest, amounts paid in lieu of dividends,
6 and losses from such assets and activities.
7 (2) The numerator of the receipts factor
8 includes interest, dividends, net gains (but not
9 less than zero), and other income from investment
10 assets and activities and from trading assets and
11 activities described in paragraph (1) of this
12 subsection that are attributable to this State.
13 (A) The amount of interest, dividends, net
14 gains (but not less than zero), and other
15 income from investment assets and activities
16 in the investment account to be attributed to
17 this State and included in the numerator is
18 determined by multiplying all of the income
19 from those assets and activities by a
20 fraction, the numerator of which is the total
21 receipts included in the numerator pursuant to
22 items (i) through (vii) of this subparagraph
23 (3) and the denominator of which is all total
24 receipts included in the denominator, other
25 than interest, dividends, net gains (but not
26 less than zero), and other income from
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1 investment assets and activities and trading
2 assets and activities.
3 (B) The amount of interest from federal
4 funds sold and purchased and from securities
5 purchased under resale agreements and
6 securities sold under repurchase agreements
7 attributable to this State and included in the
8 numerator is determined by multiplying the
9 amount described in subparagraph (A) of
10 paragraph (1) of this subsection from such
11 funds and such securities by a fraction, the
12 numerator of which is the total receipts
13 included in the numerator pursuant to items
14 (i) through (vii) of this subparagraph (3) and
15 the denominator of which is all total receipts
16 included in the denominator, other than
17 interest, dividends, net gains (but not less
18 than zero), and other income from investment
19 assets and activities and trading assets and
20 activities.
21 (C) The amount of interest, dividends,
22 gains, and other income from trading assets
23 and activities, including, but not limited to,
24 assets and activities in the matched book, in
25 the arbitrage book and foreign currency
26 transactions (but excluding amounts described
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1 in subparagraphs (A) or (B) of this
2 paragraph), attributable to this State and
3 included in the numerator is determined by
4 multiplying the amount described in
5 subparagraph (B) of paragraph (1) of this
6 subsection by a fraction, the numerator of
7 which is the total receipts included in the
8 numerator pursuant to items (i) through (vii)
9 of this subparagraph (3) and the denominator
10 of which is all total receipts included in the
11 denominator, other than interest, dividends,
12 net gains (but not less than zero), and other
13 income from investment assets and activities
14 and trading assets and activities.
15 (4) (Blank).
16 (5) (Blank).
17 (c-1) Federally regulated exchanges. For taxable years
18 ending on or after December 31, 2012, business income of a
19 federally regulated exchange shall, at the option of the
20 federally regulated exchange, be apportioned to this State by
21 multiplying such income by a fraction, the numerator of which
22 is its business income from sources within this State, and the
23 denominator of which is its business income from all sources.
24 For purposes of this subsection, the business income within
25 this State of a federally regulated exchange is the sum of the
26 following:
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1 (1) Receipts attributable to transactions executed on
2 a physical trading floor if that physical trading floor is
3 located in this State.
4 (2) Receipts attributable to all other matching,
5 execution, or clearing transactions, including without
6 limitation receipts from the provision of matching,
7 execution, or clearing services to another entity,
8 multiplied by (i) for taxable years ending on or after
9 December 31, 2012 but before December 31, 2013, 63.77%;
10 and (ii) for taxable years ending on or after December 31,
11 2013, 27.54%.
12 (3) All other receipts not governed by subparagraphs
13 (1) or (2) of this subsection (c-1), to the extent the
14 receipts would be characterized as "sales in this State"
15 under item (3) of subsection (a) of this Section.
16 "Federally regulated exchange" means (i) a "registered
17 entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
18 or (C), (ii) an "exchange" or "clearing agency" within the
19 meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
20 entities regulated under any successor regulatory structure to
21 the foregoing, and (iv) all taxpayers who are members of the
22 same unitary business group as a federally regulated exchange,
23 determined without regard to the prohibition in Section
24 1501(a)(27) of this Act against including in a unitary
25 business group taxpayers who are ordinarily required to
26 apportion business income under different subsections of this
HB2755 Enrolled - 541 - LRB104 08253 BDA 18303 b
1 Section; provided that this subparagraph (iv) shall apply only
2 if 50% or more of the business receipts of the unitary business
3 group determined by application of this subparagraph (iv) for
4 the taxable year are attributable to the matching, execution,
5 or clearing of transactions conducted by an entity described
6 in subparagraph (i), (ii), or (iii) of this paragraph.
7 In no event shall the Illinois apportionment percentage
8 computed in accordance with this subsection (c-1) for any
9 taxpayer for any tax year be less than the Illinois
10 apportionment percentage computed under this subsection (c-1)
11 for that taxpayer for the first full tax year ending on or
12 after December 31, 2013 for which this subsection (c-1)
13 applied to the taxpayer.
14 (d) Transportation services. For taxable years ending
15 before December 31, 2008, business income derived from
16 furnishing transportation services shall be apportioned to
17 this State in accordance with paragraphs (1) and (2):
18 (1) Such business income (other than that derived from
19 transportation by pipeline) shall be apportioned to this
20 State by multiplying such income by a fraction, the
21 numerator of which is the revenue miles of the person in
22 this State, and the denominator of which is the revenue
23 miles of the person everywhere. For purposes of this
24 paragraph, a revenue mile is the transportation of 1
25 passenger or 1 net ton of freight the distance of 1 mile
26 for a consideration. Where a person is engaged in the
HB2755 Enrolled - 542 - LRB104 08253 BDA 18303 b
1 transportation of both passengers and freight, the
2 fraction above referred to shall be determined by means of
3 an average of the passenger revenue mile fraction and the
4 freight revenue mile fraction, weighted to reflect the
5 person's
6 (A) relative railway operating income from total
7 passenger and total freight service, as reported to
8 the Interstate Commerce Commission, in the case of
9 transportation by railroad, and
10 (B) relative gross receipts from passenger and
11 freight transportation, in case of transportation
12 other than by railroad.
13 (2) Such business income derived from transportation
14 by pipeline shall be apportioned to this State by
15 multiplying such income by a fraction, the numerator of
16 which is the revenue miles of the person in this State, and
17 the denominator of which is the revenue miles of the
18 person everywhere. For the purposes of this paragraph, a
19 revenue mile is the transportation by pipeline of 1 barrel
20 of oil, 1,000 cubic feet of gas, or of any specified
21 quantity of any other substance, the distance of 1 mile
22 for a consideration.
23 (3) For taxable years ending on or after December 31,
24 2008, business income derived from providing
25 transportation services other than airline services shall
26 be apportioned to this State by using a fraction, (a) the
HB2755 Enrolled - 543 - LRB104 08253 BDA 18303 b
1 numerator of which shall be (i) all receipts from any
2 movement or shipment of people, goods, mail, oil, gas, or
3 any other substance (other than by airline) that both
4 originates and terminates in this State, plus (ii) that
5 portion of the person's gross receipts from movements or
6 shipments of people, goods, mail, oil, gas, or any other
7 substance (other than by airline) that originates in one
8 state or jurisdiction and terminates in another state or
9 jurisdiction, that is determined by the ratio that the
10 miles traveled in this State bears to total miles
11 everywhere and (b) the denominator of which shall be all
12 revenue derived from the movement or shipment of people,
13 goods, mail, oil, gas, or any other substance (other than
14 by airline). Where a taxpayer is engaged in the
15 transportation of both passengers and freight, the
16 fraction above referred to shall first be determined
17 separately for passenger miles and freight miles. Then an
18 average of the passenger miles fraction and the freight
19 miles fraction shall be weighted to reflect the
20 taxpayer's:
21 (A) relative railway operating income from total
22 passenger and total freight service, as reported to
23 the Surface Transportation Board, in the case of
24 transportation by railroad; and
25 (B) relative gross receipts from passenger and
26 freight transportation, in case of transportation
HB2755 Enrolled - 544 - LRB104 08253 BDA 18303 b
1 other than by railroad.
2 (4) For taxable years ending on or after December 31,
3 2008, business income derived from furnishing airline
4 transportation services shall be apportioned to this State
5 by multiplying such income by a fraction, the numerator of
6 which is the revenue miles of the person in this State, and
7 the denominator of which is the revenue miles of the
8 person everywhere. For purposes of this paragraph, a
9 revenue mile is the transportation of one passenger or one
10 net ton of freight the distance of one mile for a
11 consideration. If a person is engaged in the
12 transportation of both passengers and freight, the
13 fraction above referred to shall be determined by means of
14 an average of the passenger revenue mile fraction and the
15 freight revenue mile fraction, weighted to reflect the
16 person's relative gross receipts from passenger and
17 freight airline transportation.
18 (e) Combined apportionment. Where 2 or more persons are
19 engaged in a unitary business as described in subsection
20 (a)(27) of Section 1501, a part of which is conducted in this
21 State by one or more members of the group, the business income
22 attributable to this State by any such member or members shall
23 be apportioned by means of the combined apportionment method.
24 For purposes of applying this Section, for tax years ending on
25 or after December 31, 2025, sales of each member of the unitary
26 business group, as defined in paragraph (27) of subsection (a)
HB2755 Enrolled - 545 - LRB104 08253 BDA 18303 b
1 of Section 1501, who is not a taxpayer, as defined in paragraph
2 (24) of subsection (a) Section 1501, shall be determined based
3 upon the apportionment rules applicable to the member and
4 shall be aggregated. Each taxpayer member of the unitary
5 business group shall include in its sales factor numerator a
6 portion of the aggregate Illinois sales of non-taxpayer
7 members based on a ratio, the numerator of which is that
8 taxpayer member's Illinois sales taking into account its
9 applicable sales factor provisions, and the denominator of
10 which is the aggregate Illinois sales of all the taxpayer
11 members of the group taking into account their respective
12 sales factor provisions. In addition, if inclusion of sales in
13 the sales factor or numerator of the sales factor depends on
14 whether a taxpayer is considered taxable in another state
15 within the meaning of subsection (f) of Section 303, that
16 taxpayer shall be considered taxable in any state in which any
17 member of its unitary business group is considered taxable
18 under subsection (f) of Section 303.
19 (f) Alternative allocation. If the allocation and
20 apportionment provisions of subsections (a) through (e) and of
21 subsection (h) do not, for taxable years ending before
22 December 31, 2008, fairly represent the extent of a person's
23 business activity in this State, or, for taxable years ending
24 on or after December 31, 2008, fairly represent the market for
25 the person's goods, services, or other sources of business
26 income, the person may petition for, or the Director may,
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1 without a petition, permit or require, in respect of all or any
2 part of the person's business activity, if reasonable:
3 (1) Separate accounting;
4 (2) The exclusion of any one or more factors;
5 (3) The inclusion of one or more additional factors
6 which will fairly represent the person's business
7 activities or market in this State; or
8 (4) The employment of any other method to effectuate
9 an equitable allocation and apportionment of the person's
10 business income.
11 (g) Cross-reference Cross reference. For allocation of
12 business income by residents, see Section 301(a).
13 (h) For tax years ending on or after December 31, 1998, the
14 apportionment factor of persons who apportion their business
15 income to this State under subsection (a) shall be equal to:
16 (1) for tax years ending on or after December 31, 1998
17 and before December 31, 1999, 16 2/3% of the property
18 factor plus 16 2/3% of the payroll factor plus 66 2/3% of
19 the sales factor;
20 (2) for tax years ending on or after December 31, 1999
21 and before December 31, 2000, 8 1/3% of the property
22 factor plus 8 1/3% of the payroll factor plus 83 1/3% of
23 the sales factor;
24 (3) for tax years ending on or after December 31,
25 2000, the sales factor.
26 If, in any tax year ending on or after December 31, 1998 and
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1 before December 31, 2000, the denominator of the payroll,
2 property, or sales factor is zero, the apportionment factor
3 computed in paragraph (1) or (2) of this subsection for that
4 year shall be divided by an amount equal to 100% minus the
5 percentage weight given to each factor whose denominator is
6 equal to zero.
7 (Source: P.A. 102-40, eff. 6-25-21; 102-558, eff. 8-20-21;
8 103-592, eff. 6-7-24; revised 10-16-24.)
9 Section 30-10. The Illinois Income Tax Act is amended by
10 changing Section 203 as follows:
11 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
12 Sec. 203. Base income defined.
13 (a) Individuals.
14 (1) In general. In the case of an individual, base
15 income means an amount equal to the taxpayer's adjusted
16 gross income for the taxable year as modified by paragraph
17 (2).
18 (2) Modifications. The adjusted gross income referred
19 to in paragraph (1) shall be modified by adding thereto
20 the sum of the following amounts:
21 (A) An amount equal to all amounts paid or accrued
22 to the taxpayer as interest or dividends during the
23 taxable year to the extent excluded from gross income
24 in the computation of adjusted gross income, except
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1 stock dividends of qualified public utilities
2 described in Section 305(e) of the Internal Revenue
3 Code;
4 (B) An amount equal to the amount of tax imposed by
5 this Act to the extent deducted from gross income in
6 the computation of adjusted gross income for the
7 taxable year;
8 (C) An amount equal to the amount received during
9 the taxable year as a recovery or refund of real
10 property taxes paid with respect to the taxpayer's
11 principal residence under the Revenue Act of 1939 and
12 for which a deduction was previously taken under
13 subparagraph (L) of this paragraph (2) prior to July
14 1, 1991, the retrospective application date of Article
15 4 of Public Act 87-17. In the case of multi-unit or
16 multi-use structures and farm dwellings, the taxes on
17 the taxpayer's principal residence shall be that
18 portion of the total taxes for the entire property
19 which is attributable to such principal residence;
20 (D) An amount equal to the amount of the capital
21 gain deduction allowable under the Internal Revenue
22 Code, to the extent deducted from gross income in the
23 computation of adjusted gross income;
24 (D-5) An amount, to the extent not included in
25 adjusted gross income, equal to the amount of money
26 withdrawn by the taxpayer in the taxable year from a
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1 medical care savings account and the interest earned
2 on the account in the taxable year of a withdrawal
3 pursuant to subsection (b) of Section 20 of the
4 Medical Care Savings Account Act or subsection (b) of
5 Section 20 of the Medical Care Savings Account Act of
6 2000;
7 (D-10) For taxable years ending after December 31,
8 1997, an amount equal to any eligible remediation
9 costs that the individual deducted in computing
10 adjusted gross income and for which the individual
11 claims a credit under subsection (l) of Section 201;
12 (D-15) For taxable years 2001 and thereafter, an
13 amount equal to the bonus depreciation deduction taken
14 on the taxpayer's federal income tax return for the
15 taxable year under subsection (k) of Section 168 of
16 the Internal Revenue Code;
17 (D-16) If the taxpayer sells, transfers, abandons,
18 or otherwise disposes of property for which the
19 taxpayer was required in any taxable year to make an
20 addition modification under subparagraph (D-15), then
21 an amount equal to the aggregate amount of the
22 deductions taken in all taxable years under
23 subparagraph (Z) with respect to that property.
24 If the taxpayer continues to own property through
25 the last day of the last tax year for which a
26 subtraction is allowed with respect to that property
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1 under subparagraph (Z) and for which the taxpayer was
2 allowed in any taxable year to make a subtraction
3 modification under subparagraph (Z), then an amount
4 equal to that subtraction modification.
5 The taxpayer is required to make the addition
6 modification under this subparagraph only once with
7 respect to any one piece of property;
8 (D-17) An amount equal to the amount otherwise
9 allowed as a deduction in computing base income for
10 interest paid, accrued, or incurred, directly or
11 indirectly, (i) for taxable years ending on or after
12 December 31, 2004, to a foreign person who would be a
13 member of the same unitary business group but for the
14 fact that foreign person's business activity outside
15 the United States is 80% or more of the foreign
16 person's total business activity and (ii) for taxable
17 years ending on or after December 31, 2008, to a person
18 who would be a member of the same unitary business
19 group but for the fact that the person is prohibited
20 under Section 1501(a)(27) from being included in the
21 unitary business group because he or she is ordinarily
22 required to apportion business income under different
23 subsections of Section 304. The addition modification
24 required by this subparagraph shall be reduced to the
25 extent that dividends were included in base income of
26 the unitary group for the same taxable year and
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1 received by the taxpayer or by a member of the
2 taxpayer's unitary business group (including amounts
3 included in gross income under Sections 951 through
4 964 of the Internal Revenue Code and amounts included
5 in gross income under Section 78 of the Internal
6 Revenue Code) with respect to the stock of the same
7 person to whom the interest was paid, accrued, or
8 incurred. For taxable years ending on and after
9 December 31, 2025, for purposes of applying this
10 paragraph in the case of a taxpayer to which Section
11 163(j) of the Internal Revenue Code applies for the
12 taxable year, the reduction in the amount of interest
13 for which a deduction is allowed by reason of Section
14 163(j) shall be treated as allocable first to persons
15 who are not foreign persons referred to in this
16 paragraph and then to such foreign persons.
17 For taxable years ending before December 31, 2025,
18 this This paragraph shall not apply to the following:
19 (i) an item of interest paid, accrued, or
20 incurred, directly or indirectly, to a person who
21 is subject in a foreign country or state, other
22 than a state which requires mandatory unitary
23 reporting, to a tax on or measured by net income
24 with respect to such interest; or
25 (ii) an item of interest paid, accrued, or
26 incurred, directly or indirectly, to a person if
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1 the taxpayer can establish, based on a
2 preponderance of the evidence, both of the
3 following:
4 (a) the person, during the same taxable
5 year, paid, accrued, or incurred, the interest
6 to a person that is not a related member, and
7 (b) the transaction giving rise to the
8 interest expense between the taxpayer and the
9 person did not have as a principal purpose the
10 avoidance of Illinois income tax, and is paid
11 pursuant to a contract or agreement that
12 reflects an arm's-length interest rate and
13 terms; or
14 (iii) the taxpayer can establish, based on
15 clear and convincing evidence, that the interest
16 paid, accrued, or incurred relates to a contract
17 or agreement entered into at arm's-length rates
18 and terms and the principal purpose for the
19 payment is not federal or Illinois tax avoidance;
20 or
21 (iv) an item of interest paid, accrued, or
22 incurred, directly or indirectly, to a person if
23 the taxpayer establishes by clear and convincing
24 evidence that the adjustments are unreasonable; or
25 if the taxpayer and the Director agree in writing
26 to the application or use of an alternative method
HB2755 Enrolled - 553 - LRB104 08253 BDA 18303 b
1 of apportionment under Section 304(f).
2 For taxable years ending on or after December 31,
3 2025, this paragraph shall not apply to the following:
4 (i) an item of interest paid, accrued, or
5 incurred, directly or indirectly, to a person if
6 the taxpayer can establish, based on a
7 preponderance of the evidence, both of the
8 following:
9 (a) the person, during the same taxable
10 year, paid, accrued, or incurred, the interest
11 to a person that is not a related member, and
12 (b) the transaction giving rise to the
13 interest expense between the taxpayer and the
14 person did not have as a principal purpose the
15 avoidance of Illinois income tax and is paid
16 pursuant to a contract or agreement that
17 reflects an arm's-length interest rate and
18 terms; or
19 (ii) an item of interest paid, accrued, or
20 incurred, directly or indirectly, to a person if
21 the taxpayer establishes by clear and convincing
22 evidence that the adjustments are unreasonable; or
23 if the taxpayer and the Director agree in writing
24 to the application or use of an alternative method
25 of apportionment under Section 304(f).
26 Nothing in this subsection shall preclude the
HB2755 Enrolled - 554 - LRB104 08253 BDA 18303 b
1 Director from making any other adjustment
2 otherwise allowed under Section 404 of this Act
3 for any tax year beginning after the effective
4 date of this amendment provided such adjustment is
5 made pursuant to regulation adopted by the
6 Department and such regulations provide methods
7 and standards by which the Department will utilize
8 its authority under Section 404 of this Act;
9 (D-18) An amount equal to the amount of intangible
10 expenses and costs otherwise allowed as a deduction in
11 computing base income, and that were paid, accrued, or
12 incurred, directly or indirectly, (i) for taxable
13 years ending on or after December 31, 2004, to a
14 foreign person who would be a member of the same
15 unitary business group but for the fact that the
16 foreign person's business activity outside the United
17 States is 80% or more of that person's total business
18 activity and (ii) for taxable years ending on or after
19 December 31, 2008, to a person who would be a member of
20 the same unitary business group but for the fact that
21 the person is prohibited under Section 1501(a)(27)
22 from being included in the unitary business group
23 because he or she is ordinarily required to apportion
24 business income under different subsections of Section
25 304. The addition modification required by this
26 subparagraph shall be reduced to the extent that
HB2755 Enrolled - 555 - LRB104 08253 BDA 18303 b
1 dividends were included in base income of the unitary
2 group for the same taxable year and received by the
3 taxpayer or by a member of the taxpayer's unitary
4 business group (including amounts included in gross
5 income under Sections 951 through 964 of the Internal
6 Revenue Code and amounts included in gross income
7 under Section 78 of the Internal Revenue Code) with
8 respect to the stock of the same person to whom the
9 intangible expenses and costs were directly or
10 indirectly paid, incurred, or accrued. The preceding
11 sentence does not apply to the extent that the same
12 dividends caused a reduction to the addition
13 modification required under Section 203(a)(2)(D-17) of
14 this Act. As used in this subparagraph, the term
15 "intangible expenses and costs" includes (1) expenses,
16 losses, and costs for, or related to, the direct or
17 indirect acquisition, use, maintenance or management,
18 ownership, sale, exchange, or any other disposition of
19 intangible property; (2) losses incurred, directly or
20 indirectly, from factoring transactions or discounting
21 transactions; (3) royalty, patent, technical, and
22 copyright fees; (4) licensing fees; and (5) other
23 similar expenses and costs. For purposes of this
24 subparagraph, "intangible property" includes patents,
25 patent applications, trade names, trademarks, service
26 marks, copyrights, mask works, trade secrets, and
HB2755 Enrolled - 556 - LRB104 08253 BDA 18303 b
1 similar types of intangible assets.
2 For taxable years ending before December 31, 2025,
3 this This paragraph shall not apply to the following:
4 (i) any item of intangible expenses or costs
5 paid, accrued, or incurred, directly or
6 indirectly, from a transaction with a person who
7 is subject in a foreign country or state, other
8 than a state which requires mandatory unitary
9 reporting, to a tax on or measured by net income
10 with respect to such item; or
11 (ii) any item of intangible expense or cost
12 paid, accrued, or incurred, directly or
13 indirectly, if the taxpayer can establish, based
14 on a preponderance of the evidence, both of the
15 following:
16 (a) the person during the same taxable
17 year paid, accrued, or incurred, the
18 intangible expense or cost to a person that is
19 not a related member, and
20 (b) the transaction giving rise to the
21 intangible expense or cost between the
22 taxpayer and the person did not have as a
23 principal purpose the avoidance of Illinois
24 income tax, and is paid pursuant to a contract
25 or agreement that reflects arm's-length terms;
26 or
HB2755 Enrolled - 557 - LRB104 08253 BDA 18303 b
1 (iii) any item of intangible expense or cost
2 paid, accrued, or incurred, directly or
3 indirectly, from a transaction with a person if
4 the taxpayer establishes by clear and convincing
5 evidence, that the adjustments are unreasonable;
6 or if the taxpayer and the Director agree in
7 writing to the application or use of an
8 alternative method of apportionment under Section
9 304(f);
10 For taxable years ending on or after December 31,
11 2025, this paragraph shall not apply to the following:
12 (i) any item of intangible expense or cost
13 paid, accrued, or incurred, directly or
14 indirectly, if the taxpayer can establish, based
15 on a preponderance of the evidence, both of the
16 following:
17 (a) the person during the same taxable
18 year paid, accrued, or incurred, the
19 intangible expense or cost to a person that is
20 not a related member, and
21 (b) the transaction giving rise to the
22 intangible expense or cost between the
23 taxpayer and the person did not have as a
24 principal purpose the avoidance of Illinois
25 income tax, and is paid pursuant to a contract
26 or agreement that reflects arm's-length terms;
HB2755 Enrolled - 558 - LRB104 08253 BDA 18303 b
1 or
2 (ii) any item of intangible expense or cost
3 paid, accrued, or incurred, directly or
4 indirectly, from a transaction with a person if
5 the taxpayer establishes by clear and convincing
6 evidence, that the adjustments are unreasonable;
7 or if the taxpayer and the Director agree in
8 writing to the application or use of an
9 alternative method of apportionment under Section
10 304(f).
11 Nothing in this subsection shall preclude the
12 Director from making any other adjustment
13 otherwise allowed under Section 404 of this Act
14 for any tax year beginning after the effective
15 date of this amendment provided such adjustment is
16 made pursuant to regulation adopted by the
17 Department and such regulations provide methods
18 and standards by which the Department will utilize
19 its authority under Section 404 of this Act;
20 (D-19) For taxable years ending on or after
21 December 31, 2008, an amount equal to the amount of
22 insurance premium expenses and costs otherwise allowed
23 as a deduction in computing base income, and that were
24 paid, accrued, or incurred, directly or indirectly, to
25 a person who would be a member of the same unitary
26 business group but for the fact that the person is
HB2755 Enrolled - 559 - LRB104 08253 BDA 18303 b
1 prohibited under Section 1501(a)(27) from being
2 included in the unitary business group because he or
3 she is ordinarily required to apportion business
4 income under different subsections of Section 304. The
5 addition modification required by this subparagraph
6 shall be reduced to the extent that dividends were
7 included in base income of the unitary group for the
8 same taxable year and received by the taxpayer or by a
9 member of the taxpayer's unitary business group
10 (including amounts included in gross income under
11 Sections 951 through 964 of the Internal Revenue Code
12 and amounts included in gross income under Section 78
13 of the Internal Revenue Code) with respect to the
14 stock of the same person to whom the premiums and costs
15 were directly or indirectly paid, incurred, or
16 accrued. The preceding sentence does not apply to the
17 extent that the same dividends caused a reduction to
18 the addition modification required under Section
19 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
20 Act;
21 (D-20) For taxable years beginning on or after
22 January 1, 2002 and ending on or before December 31,
23 2006, in the case of a distribution from a qualified
24 tuition program under Section 529 of the Internal
25 Revenue Code, other than (i) a distribution from a
26 College Savings Pool created under Section 16.5 of the
HB2755 Enrolled - 560 - LRB104 08253 BDA 18303 b
1 State Treasurer Act or (ii) a distribution from the
2 Illinois Prepaid Tuition Trust Fund, an amount equal
3 to the amount excluded from gross income under Section
4 529(c)(3)(B). For taxable years beginning on or after
5 January 1, 2007, in the case of a distribution from a
6 qualified tuition program under Section 529 of the
7 Internal Revenue Code, other than (i) a distribution
8 from a College Savings Pool created under Section 16.5
9 of the State Treasurer Act, (ii) a distribution from
10 the Illinois Prepaid Tuition Trust Fund, or (iii) a
11 distribution from a qualified tuition program under
12 Section 529 of the Internal Revenue Code that (I)
13 adopts and determines that its offering materials
14 comply with the College Savings Plans Network's
15 disclosure principles and (II) has made reasonable
16 efforts to inform in-state residents of the existence
17 of in-state qualified tuition programs by informing
18 Illinois residents directly and, where applicable, to
19 inform financial intermediaries distributing the
20 program to inform in-state residents of the existence
21 of in-state qualified tuition programs at least
22 annually, an amount equal to the amount excluded from
23 gross income under Section 529(c)(3)(B).
24 For the purposes of this subparagraph (D-20), a
25 qualified tuition program has made reasonable efforts
26 if it makes disclosures (which may use the term
HB2755 Enrolled - 561 - LRB104 08253 BDA 18303 b
1 "in-state program" or "in-state plan" and need not
2 specifically refer to Illinois or its qualified
3 programs by name) (i) directly to prospective
4 participants in its offering materials or makes a
5 public disclosure, such as a website posting; and (ii)
6 where applicable, to intermediaries selling the
7 out-of-state program in the same manner that the
8 out-of-state program distributes its offering
9 materials;
10 (D-20.5) For taxable years beginning on or after
11 January 1, 2018, in the case of a distribution from a
12 qualified ABLE program under Section 529A of the
13 Internal Revenue Code, other than a distribution from
14 a qualified ABLE program created under Section 16.6 of
15 the State Treasurer Act, an amount equal to the amount
16 excluded from gross income under Section 529A(c)(1)(B)
17 of the Internal Revenue Code;
18 (D-21) For taxable years beginning on or after
19 January 1, 2007, in the case of transfer of moneys from
20 a qualified tuition program under Section 529 of the
21 Internal Revenue Code that is administered by the
22 State to an out-of-state program, an amount equal to
23 the amount of moneys previously deducted from base
24 income under subsection (a)(2)(Y) of this Section;
25 (D-21.5) For taxable years beginning on or after
26 January 1, 2018, in the case of the transfer of moneys
HB2755 Enrolled - 562 - LRB104 08253 BDA 18303 b
1 from a qualified tuition program under Section 529 or
2 a qualified ABLE program under Section 529A of the
3 Internal Revenue Code that is administered by this
4 State to an ABLE account established under an
5 out-of-state ABLE account program, an amount equal to
6 the contribution component of the transferred amount
7 that was previously deducted from base income under
8 subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
9 Section;
10 (D-22) For taxable years beginning on or after
11 January 1, 2009, and prior to January 1, 2018, in the
12 case of a nonqualified withdrawal or refund of moneys
13 from a qualified tuition program under Section 529 of
14 the Internal Revenue Code administered by the State
15 that is not used for qualified expenses at an eligible
16 education institution, an amount equal to the
17 contribution component of the nonqualified withdrawal
18 or refund that was previously deducted from base
19 income under subsection (a)(2)(y) of this Section,
20 provided that the withdrawal or refund did not result
21 from the beneficiary's death or disability. For
22 taxable years beginning on or after January 1, 2018:
23 (1) in the case of a nonqualified withdrawal or
24 refund, as defined under Section 16.5 of the State
25 Treasurer Act, of moneys from a qualified tuition
26 program under Section 529 of the Internal Revenue Code
HB2755 Enrolled - 563 - LRB104 08253 BDA 18303 b
1 administered by the State, an amount equal to the
2 contribution component of the nonqualified withdrawal
3 or refund that was previously deducted from base
4 income under subsection (a)(2)(Y) of this Section, and
5 (2) in the case of a nonqualified withdrawal or refund
6 from a qualified ABLE program under Section 529A of
7 the Internal Revenue Code administered by the State
8 that is not used for qualified disability expenses, an
9 amount equal to the contribution component of the
10 nonqualified withdrawal or refund that was previously
11 deducted from base income under subsection (a)(2)(HH)
12 of this Section;
13 (D-23) An amount equal to the credit allowable to
14 the taxpayer under Section 218(a) of this Act,
15 determined without regard to Section 218(c) of this
16 Act;
17 (D-24) For taxable years ending on or after
18 December 31, 2017, an amount equal to the deduction
19 allowed under Section 199 of the Internal Revenue Code
20 for the taxable year;
21 (D-25) In the case of a resident, an amount equal
22 to the amount of tax for which a credit is allowed
23 pursuant to Section 201(p)(7) of this Act;
24 and by deducting from the total so obtained the sum of the
25 following amounts:
26 (E) For taxable years ending before December 31,
HB2755 Enrolled - 564 - LRB104 08253 BDA 18303 b
1 2001, any amount included in such total in respect of
2 any compensation (including but not limited to any
3 compensation paid or accrued to a serviceman while a
4 prisoner of war or missing in action) paid to a
5 resident by reason of being on active duty in the Armed
6 Forces of the United States and in respect of any
7 compensation paid or accrued to a resident who as a
8 governmental employee was a prisoner of war or missing
9 in action, and in respect of any compensation paid to a
10 resident in 1971 or thereafter for annual training
11 performed pursuant to Sections 502 and 503, Title 32,
12 United States Code as a member of the Illinois
13 National Guard or, beginning with taxable years ending
14 on or after December 31, 2007, the National Guard of
15 any other state. For taxable years ending on or after
16 December 31, 2001, any amount included in such total
17 in respect of any compensation (including but not
18 limited to any compensation paid or accrued to a
19 serviceman while a prisoner of war or missing in
20 action) paid to a resident by reason of being a member
21 of any component of the Armed Forces of the United
22 States and in respect of any compensation paid or
23 accrued to a resident who as a governmental employee
24 was a prisoner of war or missing in action, and in
25 respect of any compensation paid to a resident in 2001
26 or thereafter by reason of being a member of the
HB2755 Enrolled - 565 - LRB104 08253 BDA 18303 b
1 Illinois National Guard or, beginning with taxable
2 years ending on or after December 31, 2007, the
3 National Guard of any other state. The provisions of
4 this subparagraph (E) are exempt from the provisions
5 of Section 250;
6 (F) An amount equal to all amounts included in
7 such total pursuant to the provisions of Sections
8 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
9 408 of the Internal Revenue Code, or included in such
10 total as distributions under the provisions of any
11 retirement or disability plan for employees of any
12 governmental agency or unit, or retirement payments to
13 retired partners, which payments are excluded in
14 computing net earnings from self employment by Section
15 1402 of the Internal Revenue Code and regulations
16 adopted pursuant thereto;
17 (G) The valuation limitation amount;
18 (H) An amount equal to the amount of any tax
19 imposed by this Act which was refunded to the taxpayer
20 and included in such total for the taxable year;
21 (I) An amount equal to all amounts included in
22 such total pursuant to the provisions of Section 111
23 of the Internal Revenue Code as a recovery of items
24 previously deducted from adjusted gross income in the
25 computation of taxable income;
26 (J) An amount equal to those dividends included in
HB2755 Enrolled - 566 - LRB104 08253 BDA 18303 b
1 such total which were paid by a corporation which
2 conducts business operations in a River Edge
3 Redevelopment Zone or zones created under the River
4 Edge Redevelopment Zone Act, and conducts
5 substantially all of its operations in a River Edge
6 Redevelopment Zone or zones. This subparagraph (J) is
7 exempt from the provisions of Section 250;
8 (K) An amount equal to those dividends included in
9 such total that were paid by a corporation that
10 conducts business operations in a federally designated
11 Foreign Trade Zone or Sub-Zone and that is designated
12 a High Impact Business located in Illinois; provided
13 that dividends eligible for the deduction provided in
14 subparagraph (J) of paragraph (2) of this subsection
15 shall not be eligible for the deduction provided under
16 this subparagraph (K);
17 (L) For taxable years ending after December 31,
18 1983, an amount equal to all social security benefits
19 and railroad retirement benefits included in such
20 total pursuant to Sections 72(r) and 86 of the
21 Internal Revenue Code;
22 (M) With the exception of any amounts subtracted
23 under subparagraph (N), an amount equal to the sum of
24 all amounts disallowed as deductions by (i) Sections
25 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
26 and all amounts of expenses allocable to interest and
HB2755 Enrolled - 567 - LRB104 08253 BDA 18303 b
1 disallowed as deductions by Section 265(a)(1) of the
2 Internal Revenue Code; and (ii) for taxable years
3 ending on or after August 13, 1999, Sections
4 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
5 Internal Revenue Code, plus, for taxable years ending
6 on or after December 31, 2011, Section 45G(e)(3) of
7 the Internal Revenue Code and, for taxable years
8 ending on or after December 31, 2008, any amount
9 included in gross income under Section 87 of the
10 Internal Revenue Code; the provisions of this
11 subparagraph are exempt from the provisions of Section
12 250;
13 (N) An amount equal to all amounts included in
14 such total which are exempt from taxation by this
15 State either by reason of its statutes or Constitution
16 or by reason of the Constitution, treaties or statutes
17 of the United States; provided that, in the case of any
18 statute of this State that exempts income derived from
19 bonds or other obligations from the tax imposed under
20 this Act, the amount exempted shall be the interest
21 net of bond premium amortization;
22 (O) An amount equal to any contribution made to a
23 job training project established pursuant to the Tax
24 Increment Allocation Redevelopment Act;
25 (P) An amount equal to the amount of the deduction
26 used to compute the federal income tax credit for
HB2755 Enrolled - 568 - LRB104 08253 BDA 18303 b
1 restoration of substantial amounts held under claim of
2 right for the taxable year pursuant to Section 1341 of
3 the Internal Revenue Code or of any itemized deduction
4 taken from adjusted gross income in the computation of
5 taxable income for restoration of substantial amounts
6 held under claim of right for the taxable year;
7 (Q) An amount equal to any amounts included in
8 such total, received by the taxpayer as an
9 acceleration in the payment of life, endowment or
10 annuity benefits in advance of the time they would
11 otherwise be payable as an indemnity for a terminal
12 illness;
13 (R) An amount equal to the amount of any federal or
14 State bonus paid to veterans of the Persian Gulf War;
15 (S) An amount, to the extent included in adjusted
16 gross income, equal to the amount of a contribution
17 made in the taxable year on behalf of the taxpayer to a
18 medical care savings account established under the
19 Medical Care Savings Account Act or the Medical Care
20 Savings Account Act of 2000 to the extent the
21 contribution is accepted by the account administrator
22 as provided in that Act;
23 (T) An amount, to the extent included in adjusted
24 gross income, equal to the amount of interest earned
25 in the taxable year on a medical care savings account
26 established under the Medical Care Savings Account Act
HB2755 Enrolled - 569 - LRB104 08253 BDA 18303 b
1 or the Medical Care Savings Account Act of 2000 on
2 behalf of the taxpayer, other than interest added
3 pursuant to item (D-5) of this paragraph (2);
4 (U) For one taxable year beginning on or after
5 January 1, 1994, an amount equal to the total amount of
6 tax imposed and paid under subsections (a) and (b) of
7 Section 201 of this Act on grant amounts received by
8 the taxpayer under the Nursing Home Grant Assistance
9 Act during the taxpayer's taxable years 1992 and 1993;
10 (V) Beginning with tax years ending on or after
11 December 31, 1995 and ending with tax years ending on
12 or before December 31, 2004, an amount equal to the
13 amount paid by a taxpayer who is a self-employed
14 taxpayer, a partner of a partnership, or a shareholder
15 in a Subchapter S corporation for health insurance or
16 long-term care insurance for that taxpayer or that
17 taxpayer's spouse or dependents, to the extent that
18 the amount paid for that health insurance or long-term
19 care insurance may be deducted under Section 213 of
20 the Internal Revenue Code, has not been deducted on
21 the federal income tax return of the taxpayer, and
22 does not exceed the taxable income attributable to
23 that taxpayer's income, self-employment income, or
24 Subchapter S corporation income; except that no
25 deduction shall be allowed under this item (V) if the
26 taxpayer is eligible to participate in any health
HB2755 Enrolled - 570 - LRB104 08253 BDA 18303 b
1 insurance or long-term care insurance plan of an
2 employer of the taxpayer or the taxpayer's spouse. The
3 amount of the health insurance and long-term care
4 insurance subtracted under this item (V) shall be
5 determined by multiplying total health insurance and
6 long-term care insurance premiums paid by the taxpayer
7 times a number that represents the fractional
8 percentage of eligible medical expenses under Section
9 213 of the Internal Revenue Code of 1986 not actually
10 deducted on the taxpayer's federal income tax return;
11 (W) For taxable years beginning on or after
12 January 1, 1998, all amounts included in the
13 taxpayer's federal gross income in the taxable year
14 from amounts converted from a regular IRA to a Roth
15 IRA. This paragraph is exempt from the provisions of
16 Section 250;
17 (X) For taxable year 1999 and thereafter, an
18 amount equal to the amount of any (i) distributions,
19 to the extent includible in gross income for federal
20 income tax purposes, made to the taxpayer because of
21 his or her status as a victim of persecution for racial
22 or religious reasons by Nazi Germany or any other Axis
23 regime or as an heir of the victim and (ii) items of
24 income, to the extent includible in gross income for
25 federal income tax purposes, attributable to, derived
26 from or in any way related to assets stolen from,
HB2755 Enrolled - 571 - LRB104 08253 BDA 18303 b
1 hidden from, or otherwise lost to a victim of
2 persecution for racial or religious reasons by Nazi
3 Germany or any other Axis regime immediately prior to,
4 during, and immediately after World War II, including,
5 but not limited to, interest on the proceeds
6 receivable as insurance under policies issued to a
7 victim of persecution for racial or religious reasons
8 by Nazi Germany or any other Axis regime by European
9 insurance companies immediately prior to and during
10 World War II; provided, however, this subtraction from
11 federal adjusted gross income does not apply to assets
12 acquired with such assets or with the proceeds from
13 the sale of such assets; provided, further, this
14 paragraph shall only apply to a taxpayer who was the
15 first recipient of such assets after their recovery
16 and who is a victim of persecution for racial or
17 religious reasons by Nazi Germany or any other Axis
18 regime or as an heir of the victim. The amount of and
19 the eligibility for any public assistance, benefit, or
20 similar entitlement is not affected by the inclusion
21 of items (i) and (ii) of this paragraph in gross income
22 for federal income tax purposes. This paragraph is
23 exempt from the provisions of Section 250;
24 (Y) For taxable years beginning on or after
25 January 1, 2002 and ending on or before December 31,
26 2004, moneys contributed in the taxable year to a
HB2755 Enrolled - 572 - LRB104 08253 BDA 18303 b
1 College Savings Pool account under Section 16.5 of the
2 State Treasurer Act, except that amounts excluded from
3 gross income under Section 529(c)(3)(C)(i) of the
4 Internal Revenue Code shall not be considered moneys
5 contributed under this subparagraph (Y). For taxable
6 years beginning on or after January 1, 2005, a maximum
7 of $10,000 contributed in the taxable year to (i) a
8 College Savings Pool account under Section 16.5 of the
9 State Treasurer Act or (ii) the Illinois Prepaid
10 Tuition Trust Fund, except that amounts excluded from
11 gross income under Section 529(c)(3)(C)(i) of the
12 Internal Revenue Code shall not be considered moneys
13 contributed under this subparagraph (Y). For purposes
14 of this subparagraph, contributions made by an
15 employer on behalf of an employee, or matching
16 contributions made by an employee, shall be treated as
17 made by the employee. This subparagraph (Y) is exempt
18 from the provisions of Section 250;
19 (Z) For taxable years 2001 and thereafter, for the
20 taxable year in which the bonus depreciation deduction
21 is taken on the taxpayer's federal income tax return
22 under subsection (k) of Section 168 of the Internal
23 Revenue Code and for each applicable taxable year
24 thereafter, an amount equal to "x", where:
25 (1) "y" equals the amount of the depreciation
26 deduction taken for the taxable year on the
HB2755 Enrolled - 573 - LRB104 08253 BDA 18303 b
1 taxpayer's federal income tax return on property
2 for which the bonus depreciation deduction was
3 taken in any year under subsection (k) of Section
4 168 of the Internal Revenue Code, but not
5 including the bonus depreciation deduction;
6 (2) for taxable years ending on or before
7 December 31, 2005, "x" equals "y" multiplied by 30
8 and then divided by 70 (or "y" multiplied by
9 0.429); and
10 (3) for taxable years ending after December
11 31, 2005:
12 (i) for property on which a bonus
13 depreciation deduction of 30% of the adjusted
14 basis was taken, "x" equals "y" multiplied by
15 30 and then divided by 70 (or "y" multiplied
16 by 0.429);
17 (ii) for property on which a bonus
18 depreciation deduction of 50% of the adjusted
19 basis was taken, "x" equals "y" multiplied by
20 1.0;
21 (iii) for property on which a bonus
22 depreciation deduction of 100% of the adjusted
23 basis was taken in a taxable year ending on or
24 after December 31, 2021, "x" equals the
25 depreciation deduction that would be allowed
26 on that property if the taxpayer had made the
HB2755 Enrolled - 574 - LRB104 08253 BDA 18303 b
1 election under Section 168(k)(7) of the
2 Internal Revenue Code to not claim bonus
3 depreciation on that property; and
4 (iv) for property on which a bonus
5 depreciation deduction of a percentage other
6 than 30%, 50% or 100% of the adjusted basis
7 was taken in a taxable year ending on or after
8 December 31, 2021, "x" equals "y" multiplied
9 by 100 times the percentage bonus depreciation
10 on the property (that is, 100(bonus%)) and
11 then divided by 100 times 1 minus the
12 percentage bonus depreciation on the property
13 (that is, 100(1-bonus%)).
14 The aggregate amount deducted under this
15 subparagraph in all taxable years for any one piece of
16 property may not exceed the amount of the bonus
17 depreciation deduction taken on that property on the
18 taxpayer's federal income tax return under subsection
19 (k) of Section 168 of the Internal Revenue Code. This
20 subparagraph (Z) is exempt from the provisions of
21 Section 250;
22 (AA) If the taxpayer sells, transfers, abandons,
23 or otherwise disposes of property for which the
24 taxpayer was required in any taxable year to make an
25 addition modification under subparagraph (D-15), then
26 an amount equal to that addition modification.
HB2755 Enrolled - 575 - LRB104 08253 BDA 18303 b
1 If the taxpayer continues to own property through
2 the last day of the last tax year for which a
3 subtraction is allowed with respect to that property
4 under subparagraph (Z) and for which the taxpayer was
5 required in any taxable year to make an addition
6 modification under subparagraph (D-15), then an amount
7 equal to that addition modification.
8 The taxpayer is allowed to take the deduction
9 under this subparagraph only once with respect to any
10 one piece of property.
11 This subparagraph (AA) is exempt from the
12 provisions of Section 250;
13 (BB) Any amount included in adjusted gross income,
14 other than salary, received by a driver in a
15 ridesharing arrangement using a motor vehicle;
16 (CC) The amount of (i) any interest income (net of
17 the deductions allocable thereto) taken into account
18 for the taxable year with respect to a transaction
19 with a taxpayer that is required to make an addition
20 modification with respect to such transaction under
21 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
22 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
23 the amount of that addition modification, and (ii) any
24 income from intangible property (net of the deductions
25 allocable thereto) taken into account for the taxable
26 year with respect to a transaction with a taxpayer
HB2755 Enrolled - 576 - LRB104 08253 BDA 18303 b
1 that is required to make an addition modification with
2 respect to such transaction under Section
3 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
4 203(d)(2)(D-8), but not to exceed the amount of that
5 addition modification. This subparagraph (CC) is
6 exempt from the provisions of Section 250;
7 (DD) An amount equal to the interest income taken
8 into account for the taxable year (net of the
9 deductions allocable thereto) with respect to
10 transactions with (i) a foreign person who would be a
11 member of the taxpayer's unitary business group but
12 for the fact that the foreign person's business
13 activity outside the United States is 80% or more of
14 that person's total business activity and (ii) for
15 taxable years ending on or after December 31, 2008, to
16 a person who would be a member of the same unitary
17 business group but for the fact that the person is
18 prohibited under Section 1501(a)(27) from being
19 included in the unitary business group because he or
20 she is ordinarily required to apportion business
21 income under different subsections of Section 304, but
22 not to exceed the addition modification required to be
23 made for the same taxable year under Section
24 203(a)(2)(D-17) for interest paid, accrued, or
25 incurred, directly or indirectly, to the same person.
26 This subparagraph (DD) is exempt from the provisions
HB2755 Enrolled - 577 - LRB104 08253 BDA 18303 b
1 of Section 250;
2 (EE) An amount equal to the income from intangible
3 property taken into account for the taxable year (net
4 of the deductions allocable thereto) with respect to
5 transactions with (i) a foreign person who would be a
6 member of the taxpayer's unitary business group but
7 for the fact that the foreign person's business
8 activity outside the United States is 80% or more of
9 that person's total business activity and (ii) for
10 taxable years ending on or after December 31, 2008, to
11 a person who would be a member of the same unitary
12 business group but for the fact that the person is
13 prohibited under Section 1501(a)(27) from being
14 included in the unitary business group because he or
15 she is ordinarily required to apportion business
16 income under different subsections of Section 304, but
17 not to exceed the addition modification required to be
18 made for the same taxable year under Section
19 203(a)(2)(D-18) for intangible expenses and costs
20 paid, accrued, or incurred, directly or indirectly, to
21 the same foreign person. This subparagraph (EE) is
22 exempt from the provisions of Section 250;
23 (FF) An amount equal to any amount awarded to the
24 taxpayer during the taxable year by the Court of
25 Claims under subsection (c) of Section 8 of the Court
26 of Claims Act for time unjustly served in a State
HB2755 Enrolled - 578 - LRB104 08253 BDA 18303 b
1 prison. This subparagraph (FF) is exempt from the
2 provisions of Section 250;
3 (GG) For taxable years ending on or after December
4 31, 2011, in the case of a taxpayer who was required to
5 add back any insurance premiums under Section
6 203(a)(2)(D-19), such taxpayer may elect to subtract
7 that part of a reimbursement received from the
8 insurance company equal to the amount of the expense
9 or loss (including expenses incurred by the insurance
10 company) that would have been taken into account as a
11 deduction for federal income tax purposes if the
12 expense or loss had been uninsured. If a taxpayer
13 makes the election provided for by this subparagraph
14 (GG), the insurer to which the premiums were paid must
15 add back to income the amount subtracted by the
16 taxpayer pursuant to this subparagraph (GG). This
17 subparagraph (GG) is exempt from the provisions of
18 Section 250;
19 (HH) For taxable years beginning on or after
20 January 1, 2018 and prior to January 1, 2028, a maximum
21 of $10,000 contributed in the taxable year to a
22 qualified ABLE account under Section 16.6 of the State
23 Treasurer Act, except that amounts excluded from gross
24 income under Section 529(c)(3)(C)(i) or Section
25 529A(c)(1)(C) of the Internal Revenue Code shall not
26 be considered moneys contributed under this
HB2755 Enrolled - 579 - LRB104 08253 BDA 18303 b
1 subparagraph (HH). For purposes of this subparagraph
2 (HH), contributions made by an employer on behalf of
3 an employee, or matching contributions made by an
4 employee, shall be treated as made by the employee;
5 (II) For taxable years that begin on or after
6 January 1, 2021 and begin before January 1, 2026, the
7 amount that is included in the taxpayer's federal
8 adjusted gross income pursuant to Section 61 of the
9 Internal Revenue Code as discharge of indebtedness
10 attributable to student loan forgiveness and that is
11 not excluded from the taxpayer's federal adjusted
12 gross income pursuant to paragraph (5) of subsection
13 (f) of Section 108 of the Internal Revenue Code;
14 (JJ) For taxable years beginning on or after
15 January 1, 2023, for any cannabis establishment
16 operating in this State and licensed under the
17 Cannabis Regulation and Tax Act or any cannabis
18 cultivation center or medical cannabis dispensing
19 organization operating in this State and licensed
20 under the Compassionate Use of Medical Cannabis
21 Program Act, an amount equal to the deductions that
22 were disallowed under Section 280E of the Internal
23 Revenue Code for the taxable year and that would not be
24 added back under this subsection. The provisions of
25 this subparagraph (JJ) are exempt from the provisions
26 of Section 250; and
HB2755 Enrolled - 580 - LRB104 08253 BDA 18303 b
1 (KK) To the extent includible in gross income for
2 federal income tax purposes, any amount awarded or
3 paid to the taxpayer as a result of a judgment or
4 settlement for fertility fraud as provided in Section
5 15 of the Illinois Fertility Fraud Act, donor
6 fertility fraud as provided in Section 20 of the
7 Illinois Fertility Fraud Act, or similar action in
8 another state; and
9 (LL) For taxable years beginning on or after
10 January 1, 2026, if the taxpayer is a qualified
11 worker, as defined in the Workforce Development
12 through Charitable Loan Repayment Act, an amount equal
13 to the amount included in the taxpayer's federal
14 adjusted gross income that is attributable to student
15 loan repayment assistance received by the taxpayer
16 during the taxable year from a qualified community
17 foundation under the provisions of the Workforce
18 Development through Through Charitable Loan Repayment
19 Act.
20 This subparagraph (LL) is exempt from the
21 provisions of Section 250; and.
22 (MM) (LL) For taxable years beginning on or after
23 January 1, 2025, if the taxpayer is an eligible
24 resident as defined in the Medical Debt Relief Act, an
25 amount equal to the amount included in the taxpayer's
26 federal adjusted gross income that is attributable to
HB2755 Enrolled - 581 - LRB104 08253 BDA 18303 b
1 medical debt relief received by the taxpayer during
2 the taxable year from a nonprofit medical debt relief
3 coordinator under the provisions of the Medical Debt
4 Relief Act. This subparagraph (MM) (LL) is exempt from
5 the provisions of Section 250.
6 (b) Corporations.
7 (1) In general. In the case of a corporation, base
8 income means an amount equal to the taxpayer's taxable
9 income for the taxable year as modified by paragraph (2).
10 (2) Modifications. The taxable income referred to in
11 paragraph (1) shall be modified by adding thereto the sum
12 of the following amounts:
13 (A) An amount equal to all amounts paid or accrued
14 to the taxpayer as interest and all distributions
15 received from regulated investment companies during
16 the taxable year to the extent excluded from gross
17 income in the computation of taxable income;
18 (B) An amount equal to the amount of tax imposed by
19 this Act to the extent deducted from gross income in
20 the computation of taxable income for the taxable
21 year;
22 (C) In the case of a regulated investment company,
23 an amount equal to the excess of (i) the net long-term
24 capital gain for the taxable year, over (ii) the
25 amount of the capital gain dividends designated as
HB2755 Enrolled - 582 - LRB104 08253 BDA 18303 b
1 such in accordance with Section 852(b)(3)(C) of the
2 Internal Revenue Code and any amount designated under
3 Section 852(b)(3)(D) of the Internal Revenue Code,
4 attributable to the taxable year (this amendatory Act
5 of 1995 (Public Act 89-89) is declarative of existing
6 law and is not a new enactment);
7 (D) The amount of any net operating loss deduction
8 taken in arriving at taxable income, other than a net
9 operating loss carried forward from a taxable year
10 ending prior to December 31, 1986;
11 (E) For taxable years in which a net operating
12 loss carryback or carryforward from a taxable year
13 ending prior to December 31, 1986 is an element of
14 taxable income under paragraph (1) of subsection (e)
15 or subparagraph (E) of paragraph (2) of subsection
16 (e), the amount by which addition modifications other
17 than those provided by this subparagraph (E) exceeded
18 subtraction modifications in such earlier taxable
19 year, with the following limitations applied in the
20 order that they are listed:
21 (i) the addition modification relating to the
22 net operating loss carried back or forward to the
23 taxable year from any taxable year ending prior to
24 December 31, 1986 shall be reduced by the amount
25 of addition modification under this subparagraph
26 (E) which related to that net operating loss and
HB2755 Enrolled - 583 - LRB104 08253 BDA 18303 b
1 which was taken into account in calculating the
2 base income of an earlier taxable year, and
3 (ii) the addition modification relating to the
4 net operating loss carried back or forward to the
5 taxable year from any taxable year ending prior to
6 December 31, 1986 shall not exceed the amount of
7 such carryback or carryforward;
8 For taxable years in which there is a net
9 operating loss carryback or carryforward from more
10 than one other taxable year ending prior to December
11 31, 1986, the addition modification provided in this
12 subparagraph (E) shall be the sum of the amounts
13 computed independently under the preceding provisions
14 of this subparagraph (E) for each such taxable year;
15 (E-5) For taxable years ending after December 31,
16 1997, an amount equal to any eligible remediation
17 costs that the corporation deducted in computing
18 adjusted gross income and for which the corporation
19 claims a credit under subsection (l) of Section 201;
20 (E-10) For taxable years 2001 and thereafter, an
21 amount equal to the bonus depreciation deduction taken
22 on the taxpayer's federal income tax return for the
23 taxable year under subsection (k) of Section 168 of
24 the Internal Revenue Code;
25 (E-11) If the taxpayer sells, transfers, abandons,
26 or otherwise disposes of property for which the
HB2755 Enrolled - 584 - LRB104 08253 BDA 18303 b
1 taxpayer was required in any taxable year to make an
2 addition modification under subparagraph (E-10), then
3 an amount equal to the aggregate amount of the
4 deductions taken in all taxable years under
5 subparagraph (T) with respect to that property.
6 If the taxpayer continues to own property through
7 the last day of the last tax year for which a
8 subtraction is allowed with respect to that property
9 under subparagraph (T) and for which the taxpayer was
10 allowed in any taxable year to make a subtraction
11 modification under subparagraph (T), then an amount
12 equal to that subtraction modification.
13 The taxpayer is required to make the addition
14 modification under this subparagraph only once with
15 respect to any one piece of property;
16 (E-12) An amount equal to the amount otherwise
17 allowed as a deduction in computing base income for
18 interest paid, accrued, or incurred, directly or
19 indirectly, (i) for taxable years ending on or after
20 December 31, 2004, to a foreign person who would be a
21 member of the same unitary business group but for the
22 fact the foreign person's business activity outside
23 the United States is 80% or more of the foreign
24 person's total business activity and (ii) for taxable
25 years ending on or after December 31, 2008, to a person
26 who would be a member of the same unitary business
HB2755 Enrolled - 585 - LRB104 08253 BDA 18303 b
1 group but for the fact that the person is prohibited
2 under Section 1501(a)(27) from being included in the
3 unitary business group because he or she is ordinarily
4 required to apportion business income under different
5 subsections of Section 304. The addition modification
6 required by this subparagraph shall be reduced to the
7 extent that dividends were included in base income of
8 the unitary group for the same taxable year and
9 received by the taxpayer or by a member of the
10 taxpayer's unitary business group (including amounts
11 included in gross income pursuant to Sections 951
12 through 964 of the Internal Revenue Code and amounts
13 included in gross income under Section 78 of the
14 Internal Revenue Code) with respect to the stock of
15 the same person to whom the interest was paid,
16 accrued, or incurred. For taxable years ending on and
17 after December 31, 2025, for purposes of applying this
18 paragraph in the case of a taxpayer to which Section
19 163(j) of the Internal Revenue Code applies for the
20 taxable year, the reduction in the amount of interest
21 for which a deduction is allowed by reason of Section
22 163(j) shall be treated as allocable first to persons
23 who are not foreign persons referred to in this
24 paragraph and then to such foreign persons.
25 For taxable years ending before December 31, 2025,
26 this This paragraph shall not apply to the following:
HB2755 Enrolled - 586 - LRB104 08253 BDA 18303 b
1 (i) an item of interest paid, accrued, or
2 incurred, directly or indirectly, to a person who
3 is subject in a foreign country or state, other
4 than a state which requires mandatory unitary
5 reporting, to a tax on or measured by net income
6 with respect to such interest; or
7 (ii) an item of interest paid, accrued, or
8 incurred, directly or indirectly, to a person if
9 the taxpayer can establish, based on a
10 preponderance of the evidence, both of the
11 following:
12 (a) the person, during the same taxable
13 year, paid, accrued, or incurred, the interest
14 to a person that is not a related member, and
15 (b) the transaction giving rise to the
16 interest expense between the taxpayer and the
17 person did not have as a principal purpose the
18 avoidance of Illinois income tax, and is paid
19 pursuant to a contract or agreement that
20 reflects an arm's-length interest rate and
21 terms; or
22 (iii) the taxpayer can establish, based on
23 clear and convincing evidence, that the interest
24 paid, accrued, or incurred relates to a contract
25 or agreement entered into at arm's-length rates
26 and terms and the principal purpose for the
HB2755 Enrolled - 587 - LRB104 08253 BDA 18303 b
1 payment is not federal or Illinois tax avoidance;
2 or
3 (iv) an item of interest paid, accrued, or
4 incurred, directly or indirectly, to a person if
5 the taxpayer establishes by clear and convincing
6 evidence that the adjustments are unreasonable; or
7 if the taxpayer and the Director agree in writing
8 to the application or use of an alternative method
9 of apportionment under Section 304(f).
10 For taxable years ending on or after December 31,
11 2025, this paragraph shall not apply to the following:
12 (i) an item of interest paid, accrued, or
13 incurred, directly or indirectly, to a person if
14 the taxpayer can establish, based on a
15 preponderance of the evidence, both of the
16 following:
17 (a) the person, during the same taxable
18 year, paid, accrued, or incurred, the interest
19 to a person that is not a related member, and
20 (b) the transaction giving rise to the
21 interest expense between the taxpayer and the
22 person did not have as a principal purpose the
23 avoidance of Illinois income tax, and is paid
24 pursuant to a contract or agreement that
25 reflects an arm's-length interest rate and
26 terms; or
HB2755 Enrolled - 588 - LRB104 08253 BDA 18303 b
1 (ii) an item of interest paid, accrued, or
2 incurred, directly or indirectly, to a person if
3 the taxpayer establishes by clear and convincing
4 evidence that the adjustments are unreasonable; or
5 if the taxpayer and the Director agree in writing
6 to the application or use of an alternative method
7 of apportionment under Section 304(f).
8 Nothing in this subsection shall preclude the
9 Director from making any other adjustment
10 otherwise allowed under Section 404 of this Act
11 for any tax year beginning after the effective
12 date of this amendment provided such adjustment is
13 made pursuant to regulation adopted by the
14 Department and such regulations provide methods
15 and standards by which the Department will utilize
16 its authority under Section 404 of this Act;
17 (E-13) An amount equal to the amount of intangible
18 expenses and costs otherwise allowed as a deduction in
19 computing base income, and that were paid, accrued, or
20 incurred, directly or indirectly, (i) for taxable
21 years ending on or after December 31, 2004, to a
22 foreign person who would be a member of the same
23 unitary business group but for the fact that the
24 foreign person's business activity outside the United
25 States is 80% or more of that person's total business
26 activity and (ii) for taxable years ending on or after
HB2755 Enrolled - 589 - LRB104 08253 BDA 18303 b
1 December 31, 2008, to a person who would be a member of
2 the same unitary business group but for the fact that
3 the person is prohibited under Section 1501(a)(27)
4 from being included in the unitary business group
5 because he or she is ordinarily required to apportion
6 business income under different subsections of Section
7 304. The addition modification required by this
8 subparagraph shall be reduced to the extent that
9 dividends were included in base income of the unitary
10 group for the same taxable year and received by the
11 taxpayer or by a member of the taxpayer's unitary
12 business group (including amounts included in gross
13 income pursuant to Sections 951 through 964 of the
14 Internal Revenue Code and amounts included in gross
15 income under Section 78 of the Internal Revenue Code)
16 with respect to the stock of the same person to whom
17 the intangible expenses and costs were directly or
18 indirectly paid, incurred, or accrued. The preceding
19 sentence shall not apply to the extent that the same
20 dividends caused a reduction to the addition
21 modification required under Section 203(b)(2)(E-12) of
22 this Act. As used in this subparagraph, the term
23 "intangible expenses and costs" includes (1) expenses,
24 losses, and costs for, or related to, the direct or
25 indirect acquisition, use, maintenance or management,
26 ownership, sale, exchange, or any other disposition of
HB2755 Enrolled - 590 - LRB104 08253 BDA 18303 b
1 intangible property; (2) losses incurred, directly or
2 indirectly, from factoring transactions or discounting
3 transactions; (3) royalty, patent, technical, and
4 copyright fees; (4) licensing fees; and (5) other
5 similar expenses and costs. For purposes of this
6 subparagraph, "intangible property" includes patents,
7 patent applications, trade names, trademarks, service
8 marks, copyrights, mask works, trade secrets, and
9 similar types of intangible assets.
10 For taxable years ending before December 31, 2025,
11 this This paragraph shall not apply to the following:
12 (i) any item of intangible expenses or costs
13 paid, accrued, or incurred, directly or
14 indirectly, from a transaction with a person who
15 is subject in a foreign country or state, other
16 than a state which requires mandatory unitary
17 reporting, to a tax on or measured by net income
18 with respect to such item; or
19 (ii) any item of intangible expense or cost
20 paid, accrued, or incurred, directly or
21 indirectly, if the taxpayer can establish, based
22 on a preponderance of the evidence, both of the
23 following:
24 (a) the person during the same taxable
25 year paid, accrued, or incurred, the
26 intangible expense or cost to a person that is
HB2755 Enrolled - 591 - LRB104 08253 BDA 18303 b
1 not a related member, and
2 (b) the transaction giving rise to the
3 intangible expense or cost between the
4 taxpayer and the person did not have as a
5 principal purpose the avoidance of Illinois
6 income tax, and is paid pursuant to a contract
7 or agreement that reflects arm's-length terms;
8 or
9 (iii) any item of intangible expense or cost
10 paid, accrued, or incurred, directly or
11 indirectly, from a transaction with a person if
12 the taxpayer establishes by clear and convincing
13 evidence, that the adjustments are unreasonable;
14 or if the taxpayer and the Director agree in
15 writing to the application or use of an
16 alternative method of apportionment under Section
17 304(f);
18 For taxable years ending on or after December 31,
19 2025, this paragraph shall not apply to the following:
20 (i) any item of intangible expense or cost
21 paid, accrued, or incurred, directly or
22 indirectly, if the taxpayer can establish, based
23 on a preponderance of the evidence, both of the
24 following:
25 (a) the person during the same taxable
26 year paid, accrued, or incurred, the
HB2755 Enrolled - 592 - LRB104 08253 BDA 18303 b
1 intangible expense or cost to a person that is
2 not a related member, and
3 (b) the transaction giving rise to the
4 intangible expense or cost between the
5 taxpayer and the person did not have as a
6 principal purpose the avoidance of Illinois
7 income tax, and is paid pursuant to a contract
8 or agreement that reflects arm's-length terms;
9 or
10 (ii) any item of intangible expense or cost
11 paid, accrued, or incurred, directly or
12 indirectly, from a transaction with a person if
13 the taxpayer establishes by clear and convincing
14 evidence, that the adjustments are unreasonable;
15 or if the taxpayer and the Director agree in
16 writing to the application or use of an
17 alternative method of apportionment under Section
18 304(f).
19 Nothing in this subsection shall preclude the
20 Director from making any other adjustment
21 otherwise allowed under Section 404 of this Act
22 for any tax year beginning after the effective
23 date of this amendment provided such adjustment is
24 made pursuant to regulation adopted by the
25 Department and such regulations provide methods
26 and standards by which the Department will utilize
HB2755 Enrolled - 593 - LRB104 08253 BDA 18303 b
1 its authority under Section 404 of this Act;
2 (E-14) For taxable years ending on or after
3 December 31, 2008, an amount equal to the amount of
4 insurance premium expenses and costs otherwise allowed
5 as a deduction in computing base income, and that were
6 paid, accrued, or incurred, directly or indirectly, to
7 a person who would be a member of the same unitary
8 business group but for the fact that the person is
9 prohibited under Section 1501(a)(27) from being
10 included in the unitary business group because he or
11 she is ordinarily required to apportion business
12 income under different subsections of Section 304. The
13 addition modification required by this subparagraph
14 shall be reduced to the extent that dividends were
15 included in base income of the unitary group for the
16 same taxable year and received by the taxpayer or by a
17 member of the taxpayer's unitary business group
18 (including amounts included in gross income under
19 Sections 951 through 964 of the Internal Revenue Code
20 and amounts included in gross income under Section 78
21 of the Internal Revenue Code) with respect to the
22 stock of the same person to whom the premiums and costs
23 were directly or indirectly paid, incurred, or
24 accrued. The preceding sentence does not apply to the
25 extent that the same dividends caused a reduction to
26 the addition modification required under Section
HB2755 Enrolled - 594 - LRB104 08253 BDA 18303 b
1 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
2 Act;
3 (E-15) For taxable years beginning after December
4 31, 2008, any deduction for dividends paid by a
5 captive real estate investment trust that is allowed
6 to a real estate investment trust under Section
7 857(b)(2)(B) of the Internal Revenue Code for
8 dividends paid;
9 (E-16) An amount equal to the credit allowable to
10 the taxpayer under Section 218(a) of this Act,
11 determined without regard to Section 218(c) of this
12 Act;
13 (E-17) For taxable years ending on or after
14 December 31, 2017, an amount equal to the deduction
15 allowed under Section 199 of the Internal Revenue Code
16 for the taxable year;
17 (E-18) for taxable years beginning after December
18 31, 2018, an amount equal to the deduction allowed
19 under Section 250(a)(1)(A) of the Internal Revenue
20 Code for the taxable year;
21 (E-19) for taxable years ending on or after June
22 30, 2021, an amount equal to the deduction allowed
23 under Section 250(a)(1)(B)(i) of the Internal Revenue
24 Code for the taxable year;
25 (E-20) for taxable years ending on or after June
26 30, 2021, an amount equal to the deduction allowed
HB2755 Enrolled - 595 - LRB104 08253 BDA 18303 b
1 under Sections 243(e) and 245A(a) of the Internal
2 Revenue Code for the taxable year;
3 (E-21) the amount that is claimed as a federal
4 deduction when computing the taxpayer's federal
5 taxable income for the taxable year and that is
6 attributable to an endowment gift for which the
7 taxpayer receives a credit under the Illinois Gives
8 Tax Credit Act;
9 and by deducting from the total so obtained the sum of the
10 following amounts:
11 (F) An amount equal to the amount of any tax
12 imposed by this Act which was refunded to the taxpayer
13 and included in such total for the taxable year;
14 (G) An amount equal to any amount included in such
15 total under Section 78 of the Internal Revenue Code;
16 (H) In the case of a regulated investment company,
17 an amount equal to the amount of exempt interest
18 dividends as defined in subsection (b)(5) of Section
19 852 of the Internal Revenue Code, paid to shareholders
20 for the taxable year;
21 (I) With the exception of any amounts subtracted
22 under subparagraph (J), an amount equal to the sum of
23 all amounts disallowed as deductions by (i) Sections
24 171(a)(2) and 265(a)(2) and amounts disallowed as
25 interest expense by Section 291(a)(3) of the Internal
26 Revenue Code, and all amounts of expenses allocable to
HB2755 Enrolled - 596 - LRB104 08253 BDA 18303 b
1 interest and disallowed as deductions by Section
2 265(a)(1) of the Internal Revenue Code; and (ii) for
3 taxable years ending on or after August 13, 1999,
4 Sections 171(a)(2), 265, 280C, 291(a)(3), and
5 832(b)(5)(B)(i) of the Internal Revenue Code, plus,
6 for tax years ending on or after December 31, 2011,
7 amounts disallowed as deductions by Section 45G(e)(3)
8 of the Internal Revenue Code and, for taxable years
9 ending on or after December 31, 2008, any amount
10 included in gross income under Section 87 of the
11 Internal Revenue Code and the policyholders' share of
12 tax-exempt interest of a life insurance company under
13 Section 807(a)(2)(B) of the Internal Revenue Code (in
14 the case of a life insurance company with gross income
15 from a decrease in reserves for the tax year) or
16 Section 807(b)(1)(B) of the Internal Revenue Code (in
17 the case of a life insurance company allowed a
18 deduction for an increase in reserves for the tax
19 year); the provisions of this subparagraph are exempt
20 from the provisions of Section 250;
21 (J) An amount equal to all amounts included in
22 such total which are exempt from taxation by this
23 State either by reason of its statutes or Constitution
24 or by reason of the Constitution, treaties or statutes
25 of the United States; provided that, in the case of any
26 statute of this State that exempts income derived from
HB2755 Enrolled - 597 - LRB104 08253 BDA 18303 b
1 bonds or other obligations from the tax imposed under
2 this Act, the amount exempted shall be the interest
3 net of bond premium amortization;
4 (K) An amount equal to those dividends included in
5 such total which were paid by a corporation which
6 conducts business operations in a River Edge
7 Redevelopment Zone or zones created under the River
8 Edge Redevelopment Zone Act and conducts substantially
9 all of its operations in a River Edge Redevelopment
10 Zone or zones. This subparagraph (K) is exempt from
11 the provisions of Section 250;
12 (L) An amount equal to those dividends included in
13 such total that were paid by a corporation that
14 conducts business operations in a federally designated
15 Foreign Trade Zone or Sub-Zone and that is designated
16 a High Impact Business located in Illinois; provided
17 that dividends eligible for the deduction provided in
18 subparagraph (K) of paragraph 2 of this subsection
19 shall not be eligible for the deduction provided under
20 this subparagraph (L);
21 (M) For any taxpayer that is a financial
22 organization within the meaning of Section 304(c) of
23 this Act, an amount included in such total as interest
24 income from a loan or loans made by such taxpayer to a
25 borrower, to the extent that such a loan is secured by
26 property which is eligible for the River Edge
HB2755 Enrolled - 598 - LRB104 08253 BDA 18303 b
1 Redevelopment Zone Investment Credit. To determine the
2 portion of a loan or loans that is secured by property
3 eligible for a Section 201(f) investment credit to the
4 borrower, the entire principal amount of the loan or
5 loans between the taxpayer and the borrower should be
6 divided into the basis of the Section 201(f)
7 investment credit property which secures the loan or
8 loans, using for this purpose the original basis of
9 such property on the date that it was placed in service
10 in the River Edge Redevelopment Zone. The subtraction
11 modification available to the taxpayer in any year
12 under this subsection shall be that portion of the
13 total interest paid by the borrower with respect to
14 such loan attributable to the eligible property as
15 calculated under the previous sentence. This
16 subparagraph (M) is exempt from the provisions of
17 Section 250;
18 (M-1) For any taxpayer that is a financial
19 organization within the meaning of Section 304(c) of
20 this Act, an amount included in such total as interest
21 income from a loan or loans made by such taxpayer to a
22 borrower, to the extent that such a loan is secured by
23 property which is eligible for the High Impact
24 Business Investment Credit. To determine the portion
25 of a loan or loans that is secured by property eligible
26 for a Section 201(h) investment credit to the
HB2755 Enrolled - 599 - LRB104 08253 BDA 18303 b
1 borrower, the entire principal amount of the loan or
2 loans between the taxpayer and the borrower should be
3 divided into the basis of the Section 201(h)
4 investment credit property which secures the loan or
5 loans, using for this purpose the original basis of
6 such property on the date that it was placed in service
7 in a federally designated Foreign Trade Zone or
8 Sub-Zone located in Illinois. No taxpayer that is
9 eligible for the deduction provided in subparagraph
10 (M) of paragraph (2) of this subsection shall be
11 eligible for the deduction provided under this
12 subparagraph (M-1). The subtraction modification
13 available to taxpayers in any year under this
14 subsection shall be that portion of the total interest
15 paid by the borrower with respect to such loan
16 attributable to the eligible property as calculated
17 under the previous sentence;
18 (N) Two times any contribution made during the
19 taxable year to a designated zone organization to the
20 extent that the contribution (i) qualifies as a
21 charitable contribution under subsection (c) of
22 Section 170 of the Internal Revenue Code and (ii)
23 must, by its terms, be used for a project approved by
24 the Department of Commerce and Economic Opportunity
25 under Section 11 of the Illinois Enterprise Zone Act
26 or under Section 10-10 of the River Edge Redevelopment
HB2755 Enrolled - 600 - LRB104 08253 BDA 18303 b
1 Zone Act. This subparagraph (N) is exempt from the
2 provisions of Section 250;
3 (O) An amount equal to: (i) 85% for taxable years
4 ending on or before December 31, 1992, or, a
5 percentage equal to the percentage allowable under
6 Section 243(a)(1) of the Internal Revenue Code of 1986
7 for taxable years ending after December 31, 1992, of
8 the amount by which dividends included in taxable
9 income and received from a corporation that is not
10 created or organized under the laws of the United
11 States or any state or political subdivision thereof,
12 including, for taxable years ending on or after
13 December 31, 1988, dividends received or deemed
14 received or paid or deemed paid under Sections 951
15 through 965 of the Internal Revenue Code, exceed the
16 amount of the modification provided under subparagraph
17 (G) of paragraph (2) of this subsection (b) which is
18 related to such dividends, and including, for taxable
19 years ending on or after December 31, 2008, dividends
20 received from a captive real estate investment trust;
21 plus (ii) 100% of the amount by which dividends,
22 included in taxable income and received, including,
23 for taxable years ending on or after December 31,
24 1988, dividends received or deemed received or paid or
25 deemed paid under Sections 951 through 964 of the
26 Internal Revenue Code and including, for taxable years
HB2755 Enrolled - 601 - LRB104 08253 BDA 18303 b
1 ending on or after December 31, 2008, dividends
2 received from a captive real estate investment trust,
3 from any such corporation specified in clause (i) that
4 would but for the provisions of Section 1504(b)(3) of
5 the Internal Revenue Code be treated as a member of the
6 affiliated group which includes the dividend
7 recipient, exceed the amount of the modification
8 provided under subparagraph (G) of paragraph (2) of
9 this subsection (b) which is related to such
10 dividends. For taxable years ending on or after June
11 30, 2021, (i) for purposes of this subparagraph, the
12 term "dividend" does not include any amount treated as
13 a dividend under Section 1248 of the Internal Revenue
14 Code, and (ii) this subparagraph shall not apply to
15 dividends for which a deduction is allowed under
16 Section 245(a) of the Internal Revenue Code. For
17 taxable years ending on or after December 31, 2025,
18 50% of the amount of global intangible low-taxed
19 income received or deemed received or paid or deemed
20 paid under Section 951A of the Internal Revenue Code.
21 This subparagraph (O) is exempt from the provisions of
22 Section 250 of this Act;
23 (P) An amount equal to any contribution made to a
24 job training project established pursuant to the Tax
25 Increment Allocation Redevelopment Act;
26 (Q) An amount equal to the amount of the deduction
HB2755 Enrolled - 602 - LRB104 08253 BDA 18303 b
1 used to compute the federal income tax credit for
2 restoration of substantial amounts held under claim of
3 right for the taxable year pursuant to Section 1341 of
4 the Internal Revenue Code;
5 (R) On and after July 20, 1999, in the case of an
6 attorney-in-fact with respect to whom an interinsurer
7 or a reciprocal insurer has made the election under
8 Section 835 of the Internal Revenue Code, 26 U.S.C.
9 835, an amount equal to the excess, if any, of the
10 amounts paid or incurred by that interinsurer or
11 reciprocal insurer in the taxable year to the
12 attorney-in-fact over the deduction allowed to that
13 interinsurer or reciprocal insurer with respect to the
14 attorney-in-fact under Section 835(b) of the Internal
15 Revenue Code for the taxable year; the provisions of
16 this subparagraph are exempt from the provisions of
17 Section 250;
18 (S) For taxable years ending on or after December
19 31, 1997, in the case of a Subchapter S corporation, an
20 amount equal to all amounts of income allocable to a
21 shareholder subject to the Personal Property Tax
22 Replacement Income Tax imposed by subsections (c) and
23 (d) of Section 201 of this Act, including amounts
24 allocable to organizations exempt from federal income
25 tax by reason of Section 501(a) of the Internal
26 Revenue Code. This subparagraph (S) is exempt from the
HB2755 Enrolled - 603 - LRB104 08253 BDA 18303 b
1 provisions of Section 250;
2 (T) For taxable years 2001 and thereafter, for the
3 taxable year in which the bonus depreciation deduction
4 is taken on the taxpayer's federal income tax return
5 under subsection (k) of Section 168 of the Internal
6 Revenue Code and for each applicable taxable year
7 thereafter, an amount equal to "x", where:
8 (1) "y" equals the amount of the depreciation
9 deduction taken for the taxable year on the
10 taxpayer's federal income tax return on property
11 for which the bonus depreciation deduction was
12 taken in any year under subsection (k) of Section
13 168 of the Internal Revenue Code, but not
14 including the bonus depreciation deduction;
15 (2) for taxable years ending on or before
16 December 31, 2005, "x" equals "y" multiplied by 30
17 and then divided by 70 (or "y" multiplied by
18 0.429); and
19 (3) for taxable years ending after December
20 31, 2005:
21 (i) for property on which a bonus
22 depreciation deduction of 30% of the adjusted
23 basis was taken, "x" equals "y" multiplied by
24 30 and then divided by 70 (or "y" multiplied
25 by 0.429);
26 (ii) for property on which a bonus
HB2755 Enrolled - 604 - LRB104 08253 BDA 18303 b
1 depreciation deduction of 50% of the adjusted
2 basis was taken, "x" equals "y" multiplied by
3 1.0;
4 (iii) for property on which a bonus
5 depreciation deduction of 100% of the adjusted
6 basis was taken in a taxable year ending on or
7 after December 31, 2021, "x" equals the
8 depreciation deduction that would be allowed
9 on that property if the taxpayer had made the
10 election under Section 168(k)(7) of the
11 Internal Revenue Code to not claim bonus
12 depreciation on that property; and
13 (iv) for property on which a bonus
14 depreciation deduction of a percentage other
15 than 30%, 50% or 100% of the adjusted basis
16 was taken in a taxable year ending on or after
17 December 31, 2021, "x" equals "y" multiplied
18 by 100 times the percentage bonus depreciation
19 on the property (that is, 100(bonus%)) and
20 then divided by 100 times 1 minus the
21 percentage bonus depreciation on the property
22 (that is, 100(1-bonus%)).
23 The aggregate amount deducted under this
24 subparagraph in all taxable years for any one piece of
25 property may not exceed the amount of the bonus
26 depreciation deduction taken on that property on the
HB2755 Enrolled - 605 - LRB104 08253 BDA 18303 b
1 taxpayer's federal income tax return under subsection
2 (k) of Section 168 of the Internal Revenue Code. This
3 subparagraph (T) is exempt from the provisions of
4 Section 250;
5 (U) If the taxpayer sells, transfers, abandons, or
6 otherwise disposes of property for which the taxpayer
7 was required in any taxable year to make an addition
8 modification under subparagraph (E-10), then an amount
9 equal to that addition modification.
10 If the taxpayer continues to own property through
11 the last day of the last tax year for which a
12 subtraction is allowed with respect to that property
13 under subparagraph (T) and for which the taxpayer was
14 required in any taxable year to make an addition
15 modification under subparagraph (E-10), then an amount
16 equal to that addition modification.
17 The taxpayer is allowed to take the deduction
18 under this subparagraph only once with respect to any
19 one piece of property.
20 This subparagraph (U) is exempt from the
21 provisions of Section 250;
22 (V) The amount of: (i) any interest income (net of
23 the deductions allocable thereto) taken into account
24 for the taxable year with respect to a transaction
25 with a taxpayer that is required to make an addition
26 modification with respect to such transaction under
HB2755 Enrolled - 606 - LRB104 08253 BDA 18303 b
1 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
3 the amount of such addition modification, (ii) any
4 income from intangible property (net of the deductions
5 allocable thereto) taken into account for the taxable
6 year with respect to a transaction with a taxpayer
7 that is required to make an addition modification with
8 respect to such transaction under Section
9 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
10 203(d)(2)(D-8), but not to exceed the amount of such
11 addition modification, and (iii) any insurance premium
12 income (net of deductions allocable thereto) taken
13 into account for the taxable year with respect to a
14 transaction with a taxpayer that is required to make
15 an addition modification with respect to such
16 transaction under Section 203(a)(2)(D-19), Section
17 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
18 203(d)(2)(D-9), but not to exceed the amount of that
19 addition modification. This subparagraph (V) is exempt
20 from the provisions of Section 250;
21 (W) An amount equal to the interest income taken
22 into account for the taxable year (net of the
23 deductions allocable thereto) with respect to
24 transactions with (i) a foreign person who would be a
25 member of the taxpayer's unitary business group but
26 for the fact that the foreign person's business
HB2755 Enrolled - 607 - LRB104 08253 BDA 18303 b
1 activity outside the United States is 80% or more of
2 that person's total business activity and (ii) for
3 taxable years ending on or after December 31, 2008, to
4 a person who would be a member of the same unitary
5 business group but for the fact that the person is
6 prohibited under Section 1501(a)(27) from being
7 included in the unitary business group because he or
8 she is ordinarily required to apportion business
9 income under different subsections of Section 304, but
10 not to exceed the addition modification required to be
11 made for the same taxable year under Section
12 203(b)(2)(E-12) for interest paid, accrued, or
13 incurred, directly or indirectly, to the same person.
14 This subparagraph (W) is exempt from the provisions of
15 Section 250;
16 (X) An amount equal to the income from intangible
17 property taken into account for the taxable year (net
18 of the deductions allocable thereto) with respect to
19 transactions with (i) a foreign person who would be a
20 member of the taxpayer's unitary business group but
21 for the fact that the foreign person's business
22 activity outside the United States is 80% or more of
23 that person's total business activity and (ii) for
24 taxable years ending on or after December 31, 2008, to
25 a person who would be a member of the same unitary
26 business group but for the fact that the person is
HB2755 Enrolled - 608 - LRB104 08253 BDA 18303 b
1 prohibited under Section 1501(a)(27) from being
2 included in the unitary business group because he or
3 she is ordinarily required to apportion business
4 income under different subsections of Section 304, but
5 not to exceed the addition modification required to be
6 made for the same taxable year under Section
7 203(b)(2)(E-13) for intangible expenses and costs
8 paid, accrued, or incurred, directly or indirectly, to
9 the same foreign person. This subparagraph (X) is
10 exempt from the provisions of Section 250;
11 (Y) For taxable years ending on or after December
12 31, 2011, in the case of a taxpayer who was required to
13 add back any insurance premiums under Section
14 203(b)(2)(E-14), such taxpayer may elect to subtract
15 that part of a reimbursement received from the
16 insurance company equal to the amount of the expense
17 or loss (including expenses incurred by the insurance
18 company) that would have been taken into account as a
19 deduction for federal income tax purposes if the
20 expense or loss had been uninsured. If a taxpayer
21 makes the election provided for by this subparagraph
22 (Y), the insurer to which the premiums were paid must
23 add back to income the amount subtracted by the
24 taxpayer pursuant to this subparagraph (Y). This
25 subparagraph (Y) is exempt from the provisions of
26 Section 250;
HB2755 Enrolled - 609 - LRB104 08253 BDA 18303 b
1 (Z) The difference between the nondeductible
2 controlled foreign corporation dividends under Section
3 965(e)(3) of the Internal Revenue Code over the
4 taxable income of the taxpayer, computed without
5 regard to Section 965(e)(2)(A) of the Internal Revenue
6 Code, and without regard to any net operating loss
7 deduction. This subparagraph (Z) is exempt from the
8 provisions of Section 250; and
9 (AA) For taxable years beginning on or after
10 January 1, 2023, for any cannabis establishment
11 operating in this State and licensed under the
12 Cannabis Regulation and Tax Act or any cannabis
13 cultivation center or medical cannabis dispensing
14 organization operating in this State and licensed
15 under the Compassionate Use of Medical Cannabis
16 Program Act, an amount equal to the deductions that
17 were disallowed under Section 280E of the Internal
18 Revenue Code for the taxable year and that would not be
19 added back under this subsection. The provisions of
20 this subparagraph (AA) are exempt from the provisions
21 of Section 250.
22 (3) Special rule. For purposes of paragraph (2)(A),
23 "gross income" in the case of a life insurance company,
24 for tax years ending on and after December 31, 1994, and
25 prior to December 31, 2011, shall mean the gross
26 investment income for the taxable year and, for tax years
HB2755 Enrolled - 610 - LRB104 08253 BDA 18303 b
1 ending on or after December 31, 2011, shall mean all
2 amounts included in life insurance gross income under
3 Section 803(a)(3) of the Internal Revenue Code.
4 (c) Trusts and estates.
5 (1) In general. In the case of a trust or estate, base
6 income means an amount equal to the taxpayer's taxable
7 income for the taxable year as modified by paragraph (2).
8 (2) Modifications. Subject to the provisions of
9 paragraph (3), the taxable income referred to in paragraph
10 (1) shall be modified by adding thereto the sum of the
11 following amounts:
12 (A) An amount equal to all amounts paid or accrued
13 to the taxpayer as interest or dividends during the
14 taxable year to the extent excluded from gross income
15 in the computation of taxable income;
16 (B) In the case of (i) an estate, $600; (ii) a
17 trust which, under its governing instrument, is
18 required to distribute all of its income currently,
19 $300; and (iii) any other trust, $100, but in each such
20 case, only to the extent such amount was deducted in
21 the computation of taxable income;
22 (C) An amount equal to the amount of tax imposed by
23 this Act to the extent deducted from gross income in
24 the computation of taxable income for the taxable
25 year;
HB2755 Enrolled - 611 - LRB104 08253 BDA 18303 b
1 (D) The amount of any net operating loss deduction
2 taken in arriving at taxable income, other than a net
3 operating loss carried forward from a taxable year
4 ending prior to December 31, 1986;
5 (E) For taxable years in which a net operating
6 loss carryback or carryforward from a taxable year
7 ending prior to December 31, 1986 is an element of
8 taxable income under paragraph (1) of subsection (e)
9 or subparagraph (E) of paragraph (2) of subsection
10 (e), the amount by which addition modifications other
11 than those provided by this subparagraph (E) exceeded
12 subtraction modifications in such taxable year, with
13 the following limitations applied in the order that
14 they are listed:
15 (i) the addition modification relating to the
16 net operating loss carried back or forward to the
17 taxable year from any taxable year ending prior to
18 December 31, 1986 shall be reduced by the amount
19 of addition modification under this subparagraph
20 (E) which related to that net operating loss and
21 which was taken into account in calculating the
22 base income of an earlier taxable year, and
23 (ii) the addition modification relating to the
24 net operating loss carried back or forward to the
25 taxable year from any taxable year ending prior to
26 December 31, 1986 shall not exceed the amount of
HB2755 Enrolled - 612 - LRB104 08253 BDA 18303 b
1 such carryback or carryforward;
2 For taxable years in which there is a net
3 operating loss carryback or carryforward from more
4 than one other taxable year ending prior to December
5 31, 1986, the addition modification provided in this
6 subparagraph (E) shall be the sum of the amounts
7 computed independently under the preceding provisions
8 of this subparagraph (E) for each such taxable year;
9 (F) For taxable years ending on or after January
10 1, 1989, an amount equal to the tax deducted pursuant
11 to Section 164 of the Internal Revenue Code if the
12 trust or estate is claiming the same tax for purposes
13 of the Illinois foreign tax credit under Section 601
14 of this Act;
15 (G) An amount equal to the amount of the capital
16 gain deduction allowable under the Internal Revenue
17 Code, to the extent deducted from gross income in the
18 computation of taxable income;
19 (G-5) For taxable years ending after December 31,
20 1997, an amount equal to any eligible remediation
21 costs that the trust or estate deducted in computing
22 adjusted gross income and for which the trust or
23 estate claims a credit under subsection (l) of Section
24 201;
25 (G-10) For taxable years 2001 and thereafter, an
26 amount equal to the bonus depreciation deduction taken
HB2755 Enrolled - 613 - LRB104 08253 BDA 18303 b
1 on the taxpayer's federal income tax return for the
2 taxable year under subsection (k) of Section 168 of
3 the Internal Revenue Code; and
4 (G-11) If the taxpayer sells, transfers, abandons,
5 or otherwise disposes of property for which the
6 taxpayer was required in any taxable year to make an
7 addition modification under subparagraph (G-10), then
8 an amount equal to the aggregate amount of the
9 deductions taken in all taxable years under
10 subparagraph (R) with respect to that property.
11 If the taxpayer continues to own property through
12 the last day of the last tax year for which a
13 subtraction is allowed with respect to that property
14 under subparagraph (R) and for which the taxpayer was
15 allowed in any taxable year to make a subtraction
16 modification under subparagraph (R), then an amount
17 equal to that subtraction modification.
18 The taxpayer is required to make the addition
19 modification under this subparagraph only once with
20 respect to any one piece of property;
21 (G-12) An amount equal to the amount otherwise
22 allowed as a deduction in computing base income for
23 interest paid, accrued, or incurred, directly or
24 indirectly, (i) for taxable years ending on or after
25 December 31, 2004, to a foreign person who would be a
26 member of the same unitary business group but for the
HB2755 Enrolled - 614 - LRB104 08253 BDA 18303 b
1 fact that the foreign person's business activity
2 outside the United States is 80% or more of the foreign
3 person's total business activity and (ii) for taxable
4 years ending on or after December 31, 2008, to a person
5 who would be a member of the same unitary business
6 group but for the fact that the person is prohibited
7 under Section 1501(a)(27) from being included in the
8 unitary business group because he or she is ordinarily
9 required to apportion business income under different
10 subsections of Section 304. The addition modification
11 required by this subparagraph shall be reduced to the
12 extent that dividends were included in base income of
13 the unitary group for the same taxable year and
14 received by the taxpayer or by a member of the
15 taxpayer's unitary business group (including amounts
16 included in gross income pursuant to Sections 951
17 through 964 of the Internal Revenue Code and amounts
18 included in gross income under Section 78 of the
19 Internal Revenue Code) with respect to the stock of
20 the same person to whom the interest was paid,
21 accrued, or incurred. For taxable years ending on and
22 after December 31, 2025, for purposes of applying this
23 paragraph in the case of a taxpayer to which Section
24 163(j) of the Internal Revenue Code applies for the
25 taxable year, the reduction in the amount of interest
26 for which a deduction is allowed by reason of Section
HB2755 Enrolled - 615 - LRB104 08253 BDA 18303 b
1 163(j) shall be treated as allocable first to persons
2 who are not foreign persons referred to in this
3 paragraph and then to such foreign persons.
4 For taxable years ending before December 31, 2025,
5 this This paragraph shall not apply to the following:
6 (i) an item of interest paid, accrued, or
7 incurred, directly or indirectly, to a person who
8 is subject in a foreign country or state, other
9 than a state which requires mandatory unitary
10 reporting, to a tax on or measured by net income
11 with respect to such interest; or
12 (ii) an item of interest paid, accrued, or
13 incurred, directly or indirectly, to a person if
14 the taxpayer can establish, based on a
15 preponderance of the evidence, both of the
16 following:
17 (a) the person, during the same taxable
18 year, paid, accrued, or incurred, the interest
19 to a person that is not a related member, and
20 (b) the transaction giving rise to the
21 interest expense between the taxpayer and the
22 person did not have as a principal purpose the
23 avoidance of Illinois income tax, and is paid
24 pursuant to a contract or agreement that
25 reflects an arm's-length interest rate and
26 terms; or
HB2755 Enrolled - 616 - LRB104 08253 BDA 18303 b
1 (iii) the taxpayer can establish, based on
2 clear and convincing evidence, that the interest
3 paid, accrued, or incurred relates to a contract
4 or agreement entered into at arm's-length rates
5 and terms and the principal purpose for the
6 payment is not federal or Illinois tax avoidance;
7 or
8 (iv) an item of interest paid, accrued, or
9 incurred, directly or indirectly, to a person if
10 the taxpayer establishes by clear and convincing
11 evidence that the adjustments are unreasonable; or
12 if the taxpayer and the Director agree in writing
13 to the application or use of an alternative method
14 of apportionment under Section 304(f).
15 For taxable years ending on or after December 31,
16 2025, this paragraph shall not apply to the following:
17 (i) an item of interest paid, accrued, or
18 incurred, directly or indirectly, to a person if
19 the taxpayer can establish, based on a
20 preponderance of the evidence, both of the
21 following:
22 (a) the person, during the same taxable
23 year, paid, accrued, or incurred, the interest
24 to a person that is not a related member, and
25 (b) the transaction giving rise to the
26 interest expense between the taxpayer and the
HB2755 Enrolled - 617 - LRB104 08253 BDA 18303 b
1 person did not have as a principal purpose the
2 avoidance of Illinois income tax, and is paid
3 pursuant to a contract or agreement that
4 reflects an arm's-length interest rate and
5 terms; or
6 (ii) an item of interest paid, accrued, or
7 incurred, directly or indirectly, to a person if
8 the taxpayer establishes by clear and convincing
9 evidence that the adjustments are unreasonable; or
10 if the taxpayer and the Director agree in writing
11 to the application or use of an alternative method
12 of apportionment under Section 304(f).
13 Nothing in this subsection shall preclude the
14 Director from making any other adjustment
15 otherwise allowed under Section 404 of this Act
16 for any tax year beginning after the effective
17 date of this amendment provided such adjustment is
18 made pursuant to regulation adopted by the
19 Department and such regulations provide methods
20 and standards by which the Department will utilize
21 its authority under Section 404 of this Act;
22 (G-13) An amount equal to the amount of intangible
23 expenses and costs otherwise allowed as a deduction in
24 computing base income, and that were paid, accrued, or
25 incurred, directly or indirectly, (i) for taxable
26 years ending on or after December 31, 2004, to a
HB2755 Enrolled - 618 - LRB104 08253 BDA 18303 b
1 foreign person who would be a member of the same
2 unitary business group but for the fact that the
3 foreign person's business activity outside the United
4 States is 80% or more of that person's total business
5 activity and (ii) for taxable years ending on or after
6 December 31, 2008, to a person who would be a member of
7 the same unitary business group but for the fact that
8 the person is prohibited under Section 1501(a)(27)
9 from being included in the unitary business group
10 because he or she is ordinarily required to apportion
11 business income under different subsections of Section
12 304. The addition modification required by this
13 subparagraph shall be reduced to the extent that
14 dividends were included in base income of the unitary
15 group for the same taxable year and received by the
16 taxpayer or by a member of the taxpayer's unitary
17 business group (including amounts included in gross
18 income pursuant to Sections 951 through 964 of the
19 Internal Revenue Code and amounts included in gross
20 income under Section 78 of the Internal Revenue Code)
21 with respect to the stock of the same person to whom
22 the intangible expenses and costs were directly or
23 indirectly paid, incurred, or accrued. The preceding
24 sentence shall not apply to the extent that the same
25 dividends caused a reduction to the addition
26 modification required under Section 203(c)(2)(G-12) of
HB2755 Enrolled - 619 - LRB104 08253 BDA 18303 b
1 this Act. As used in this subparagraph, the term
2 "intangible expenses and costs" includes: (1)
3 expenses, losses, and costs for or related to the
4 direct or indirect acquisition, use, maintenance or
5 management, ownership, sale, exchange, or any other
6 disposition of intangible property; (2) losses
7 incurred, directly or indirectly, from factoring
8 transactions or discounting transactions; (3) royalty,
9 patent, technical, and copyright fees; (4) licensing
10 fees; and (5) other similar expenses and costs. For
11 purposes of this subparagraph, "intangible property"
12 includes patents, patent applications, trade names,
13 trademarks, service marks, copyrights, mask works,
14 trade secrets, and similar types of intangible assets.
15 For taxable years ending before December 31, 2025,
16 this This paragraph shall not apply to the following:
17 (i) any item of intangible expenses or costs
18 paid, accrued, or incurred, directly or
19 indirectly, from a transaction with a person who
20 is subject in a foreign country or state, other
21 than a state which requires mandatory unitary
22 reporting, to a tax on or measured by net income
23 with respect to such item; or
24 (ii) any item of intangible expense or cost
25 paid, accrued, or incurred, directly or
26 indirectly, if the taxpayer can establish, based
HB2755 Enrolled - 620 - LRB104 08253 BDA 18303 b
1 on a preponderance of the evidence, both of the
2 following:
3 (a) the person during the same taxable
4 year paid, accrued, or incurred, the
5 intangible expense or cost to a person that is
6 not a related member, and
7 (b) the transaction giving rise to the
8 intangible expense or cost between the
9 taxpayer and the person did not have as a
10 principal purpose the avoidance of Illinois
11 income tax, and is paid pursuant to a contract
12 or agreement that reflects arm's-length terms;
13 or
14 (iii) any item of intangible expense or cost
15 paid, accrued, or incurred, directly or
16 indirectly, from a transaction with a person if
17 the taxpayer establishes by clear and convincing
18 evidence, that the adjustments are unreasonable;
19 or if the taxpayer and the Director agree in
20 writing to the application or use of an
21 alternative method of apportionment under Section
22 304(f);
23 For taxable years ending on or after December 31,
24 2025, this paragraph shall not apply to the following:
25 (i) any item of intangible expense or cost
26 paid, accrued, or incurred, directly or
HB2755 Enrolled - 621 - LRB104 08253 BDA 18303 b
1 indirectly, if the taxpayer can establish, based
2 on a preponderance of the evidence, both of the
3 following:
4 (a) the person during the same taxable
5 year paid, accrued, or incurred, the
6 intangible expense or cost to a person that is
7 not a related member, and
8 (b) the transaction giving rise to the
9 intangible expense or cost between the
10 taxpayer and the person did not have as a
11 principal purpose the avoidance of Illinois
12 income tax, and is paid pursuant to a contract
13 or agreement that reflects arm's-length terms;
14 or
15 (ii) any item of intangible expense or cost
16 paid, accrued, or incurred, directly or
17 indirectly, from a transaction with a person if
18 the taxpayer establishes by clear and convincing
19 evidence, that the adjustments are unreasonable;
20 or if the taxpayer and the Director agree in
21 writing to the application or use of an
22 alternative method of apportionment under Section
23 304(f).
24 Nothing in this subsection shall preclude the
25 Director from making any other adjustment
26 otherwise allowed under Section 404 of this Act
HB2755 Enrolled - 622 - LRB104 08253 BDA 18303 b
1 for any tax year beginning after the effective
2 date of this amendment provided such adjustment is
3 made pursuant to regulation adopted by the
4 Department and such regulations provide methods
5 and standards by which the Department will utilize
6 its authority under Section 404 of this Act;
7 (G-14) For taxable years ending on or after
8 December 31, 2008, an amount equal to the amount of
9 insurance premium expenses and costs otherwise allowed
10 as a deduction in computing base income, and that were
11 paid, accrued, or incurred, directly or indirectly, to
12 a person who would be a member of the same unitary
13 business group but for the fact that the person is
14 prohibited under Section 1501(a)(27) from being
15 included in the unitary business group because he or
16 she is ordinarily required to apportion business
17 income under different subsections of Section 304. The
18 addition modification required by this subparagraph
19 shall be reduced to the extent that dividends were
20 included in base income of the unitary group for the
21 same taxable year and received by the taxpayer or by a
22 member of the taxpayer's unitary business group
23 (including amounts included in gross income under
24 Sections 951 through 964 of the Internal Revenue Code
25 and amounts included in gross income under Section 78
26 of the Internal Revenue Code) with respect to the
HB2755 Enrolled - 623 - LRB104 08253 BDA 18303 b
1 stock of the same person to whom the premiums and costs
2 were directly or indirectly paid, incurred, or
3 accrued. The preceding sentence does not apply to the
4 extent that the same dividends caused a reduction to
5 the addition modification required under Section
6 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
7 Act;
8 (G-15) An amount equal to the credit allowable to
9 the taxpayer under Section 218(a) of this Act,
10 determined without regard to Section 218(c) of this
11 Act;
12 (G-16) For taxable years ending on or after
13 December 31, 2017, an amount equal to the deduction
14 allowed under Section 199 of the Internal Revenue Code
15 for the taxable year;
16 (G-17) the amount that is claimed as a federal
17 deduction when computing the taxpayer's federal
18 taxable income for the taxable year and that is
19 attributable to an endowment gift for which the
20 taxpayer receives a credit under the Illinois Gives
21 Tax Credit Act;
22 and by deducting from the total so obtained the sum of the
23 following amounts:
24 (H) An amount equal to all amounts included in
25 such total pursuant to the provisions of Sections
26 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
HB2755 Enrolled - 624 - LRB104 08253 BDA 18303 b
1 of the Internal Revenue Code or included in such total
2 as distributions under the provisions of any
3 retirement or disability plan for employees of any
4 governmental agency or unit, or retirement payments to
5 retired partners, which payments are excluded in
6 computing net earnings from self employment by Section
7 1402 of the Internal Revenue Code and regulations
8 adopted pursuant thereto;
9 (I) The valuation limitation amount;
10 (J) An amount equal to the amount of any tax
11 imposed by this Act which was refunded to the taxpayer
12 and included in such total for the taxable year;
13 (K) An amount equal to all amounts included in
14 taxable income as modified by subparagraphs (A), (B),
15 (C), (D), (E), (F) and (G) which are exempt from
16 taxation by this State either by reason of its
17 statutes or Constitution or by reason of the
18 Constitution, treaties or statutes of the United
19 States; provided that, in the case of any statute of
20 this State that exempts income derived from bonds or
21 other obligations from the tax imposed under this Act,
22 the amount exempted shall be the interest net of bond
23 premium amortization;
24 (L) With the exception of any amounts subtracted
25 under subparagraph (K), an amount equal to the sum of
26 all amounts disallowed as deductions by (i) Sections
HB2755 Enrolled - 625 - LRB104 08253 BDA 18303 b
1 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
2 and all amounts of expenses allocable to interest and
3 disallowed as deductions by Section 265(a)(1) of the
4 Internal Revenue Code; and (ii) for taxable years
5 ending on or after August 13, 1999, Sections
6 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
7 Internal Revenue Code, plus, (iii) for taxable years
8 ending on or after December 31, 2011, Section
9 45G(e)(3) of the Internal Revenue Code and, for
10 taxable years ending on or after December 31, 2008,
11 any amount included in gross income under Section 87
12 of the Internal Revenue Code; the provisions of this
13 subparagraph are exempt from the provisions of Section
14 250;
15 (M) An amount equal to those dividends included in
16 such total which were paid by a corporation which
17 conducts business operations in a River Edge
18 Redevelopment Zone or zones created under the River
19 Edge Redevelopment Zone Act and conducts substantially
20 all of its operations in a River Edge Redevelopment
21 Zone or zones. This subparagraph (M) is exempt from
22 the provisions of Section 250;
23 (N) An amount equal to any contribution made to a
24 job training project established pursuant to the Tax
25 Increment Allocation Redevelopment Act;
26 (O) An amount equal to those dividends included in
HB2755 Enrolled - 626 - LRB104 08253 BDA 18303 b
1 such total that were paid by a corporation that
2 conducts business operations in a federally designated
3 Foreign Trade Zone or Sub-Zone and that is designated
4 a High Impact Business located in Illinois; provided
5 that dividends eligible for the deduction provided in
6 subparagraph (M) of paragraph (2) of this subsection
7 shall not be eligible for the deduction provided under
8 this subparagraph (O);
9 (P) An amount equal to the amount of the deduction
10 used to compute the federal income tax credit for
11 restoration of substantial amounts held under claim of
12 right for the taxable year pursuant to Section 1341 of
13 the Internal Revenue Code;
14 (Q) For taxable year 1999 and thereafter, an
15 amount equal to the amount of any (i) distributions,
16 to the extent includible in gross income for federal
17 income tax purposes, made to the taxpayer because of
18 his or her status as a victim of persecution for racial
19 or religious reasons by Nazi Germany or any other Axis
20 regime or as an heir of the victim and (ii) items of
21 income, to the extent includible in gross income for
22 federal income tax purposes, attributable to, derived
23 from or in any way related to assets stolen from,
24 hidden from, or otherwise lost to a victim of
25 persecution for racial or religious reasons by Nazi
26 Germany or any other Axis regime immediately prior to,
HB2755 Enrolled - 627 - LRB104 08253 BDA 18303 b
1 during, and immediately after World War II, including,
2 but not limited to, interest on the proceeds
3 receivable as insurance under policies issued to a
4 victim of persecution for racial or religious reasons
5 by Nazi Germany or any other Axis regime by European
6 insurance companies immediately prior to and during
7 World War II; provided, however, this subtraction from
8 federal adjusted gross income does not apply to assets
9 acquired with such assets or with the proceeds from
10 the sale of such assets; provided, further, this
11 paragraph shall only apply to a taxpayer who was the
12 first recipient of such assets after their recovery
13 and who is a victim of persecution for racial or
14 religious reasons by Nazi Germany or any other Axis
15 regime or as an heir of the victim. The amount of and
16 the eligibility for any public assistance, benefit, or
17 similar entitlement is not affected by the inclusion
18 of items (i) and (ii) of this paragraph in gross income
19 for federal income tax purposes. This paragraph is
20 exempt from the provisions of Section 250;
21 (R) For taxable years 2001 and thereafter, for the
22 taxable year in which the bonus depreciation deduction
23 is taken on the taxpayer's federal income tax return
24 under subsection (k) of Section 168 of the Internal
25 Revenue Code and for each applicable taxable year
26 thereafter, an amount equal to "x", where:
HB2755 Enrolled - 628 - LRB104 08253 BDA 18303 b
1 (1) "y" equals the amount of the depreciation
2 deduction taken for the taxable year on the
3 taxpayer's federal income tax return on property
4 for which the bonus depreciation deduction was
5 taken in any year under subsection (k) of Section
6 168 of the Internal Revenue Code, but not
7 including the bonus depreciation deduction;
8 (2) for taxable years ending on or before
9 December 31, 2005, "x" equals "y" multiplied by 30
10 and then divided by 70 (or "y" multiplied by
11 0.429); and
12 (3) for taxable years ending after December
13 31, 2005:
14 (i) for property on which a bonus
15 depreciation deduction of 30% of the adjusted
16 basis was taken, "x" equals "y" multiplied by
17 30 and then divided by 70 (or "y" multiplied
18 by 0.429);
19 (ii) for property on which a bonus
20 depreciation deduction of 50% of the adjusted
21 basis was taken, "x" equals "y" multiplied by
22 1.0;
23 (iii) for property on which a bonus
24 depreciation deduction of 100% of the adjusted
25 basis was taken in a taxable year ending on or
26 after December 31, 2021, "x" equals the
HB2755 Enrolled - 629 - LRB104 08253 BDA 18303 b
1 depreciation deduction that would be allowed
2 on that property if the taxpayer had made the
3 election under Section 168(k)(7) of the
4 Internal Revenue Code to not claim bonus
5 depreciation on that property; and
6 (iv) for property on which a bonus
7 depreciation deduction of a percentage other
8 than 30%, 50% or 100% of the adjusted basis
9 was taken in a taxable year ending on or after
10 December 31, 2021, "x" equals "y" multiplied
11 by 100 times the percentage bonus depreciation
12 on the property (that is, 100(bonus%)) and
13 then divided by 100 times 1 minus the
14 percentage bonus depreciation on the property
15 (that is, 100(1-bonus%)).
16 The aggregate amount deducted under this
17 subparagraph in all taxable years for any one piece of
18 property may not exceed the amount of the bonus
19 depreciation deduction taken on that property on the
20 taxpayer's federal income tax return under subsection
21 (k) of Section 168 of the Internal Revenue Code. This
22 subparagraph (R) is exempt from the provisions of
23 Section 250;
24 (S) If the taxpayer sells, transfers, abandons, or
25 otherwise disposes of property for which the taxpayer
26 was required in any taxable year to make an addition
HB2755 Enrolled - 630 - LRB104 08253 BDA 18303 b
1 modification under subparagraph (G-10), then an amount
2 equal to that addition modification.
3 If the taxpayer continues to own property through
4 the last day of the last tax year for which a
5 subtraction is allowed with respect to that property
6 under subparagraph (R) and for which the taxpayer was
7 required in any taxable year to make an addition
8 modification under subparagraph (G-10), then an amount
9 equal to that addition modification.
10 The taxpayer is allowed to take the deduction
11 under this subparagraph only once with respect to any
12 one piece of property.
13 This subparagraph (S) is exempt from the
14 provisions of Section 250;
15 (T) The amount of (i) any interest income (net of
16 the deductions allocable thereto) taken into account
17 for the taxable year with respect to a transaction
18 with a taxpayer that is required to make an addition
19 modification with respect to such transaction under
20 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
21 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
22 the amount of such addition modification and (ii) any
23 income from intangible property (net of the deductions
24 allocable thereto) taken into account for the taxable
25 year with respect to a transaction with a taxpayer
26 that is required to make an addition modification with
HB2755 Enrolled - 631 - LRB104 08253 BDA 18303 b
1 respect to such transaction under Section
2 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
3 203(d)(2)(D-8), but not to exceed the amount of such
4 addition modification. This subparagraph (T) is exempt
5 from the provisions of Section 250;
6 (U) An amount equal to the interest income taken
7 into account for the taxable year (net of the
8 deductions allocable thereto) with respect to
9 transactions with (i) a foreign person who would be a
10 member of the taxpayer's unitary business group but
11 for the fact the foreign person's business activity
12 outside the United States is 80% or more of that
13 person's total business activity and (ii) for taxable
14 years ending on or after December 31, 2008, to a person
15 who would be a member of the same unitary business
16 group but for the fact that the person is prohibited
17 under Section 1501(a)(27) from being included in the
18 unitary business group because he or she is ordinarily
19 required to apportion business income under different
20 subsections of Section 304, but not to exceed the
21 addition modification required to be made for the same
22 taxable year under Section 203(c)(2)(G-12) for
23 interest paid, accrued, or incurred, directly or
24 indirectly, to the same person. This subparagraph (U)
25 is exempt from the provisions of Section 250;
26 (V) An amount equal to the income from intangible
HB2755 Enrolled - 632 - LRB104 08253 BDA 18303 b
1 property taken into account for the taxable year (net
2 of the deductions allocable thereto) with respect to
3 transactions with (i) a foreign person who would be a
4 member of the taxpayer's unitary business group but
5 for the fact that the foreign person's business
6 activity outside the United States is 80% or more of
7 that person's total business activity and (ii) for
8 taxable years ending on or after December 31, 2008, to
9 a person who would be a member of the same unitary
10 business group but for the fact that the person is
11 prohibited under Section 1501(a)(27) from being
12 included in the unitary business group because he or
13 she is ordinarily required to apportion business
14 income under different subsections of Section 304, but
15 not to exceed the addition modification required to be
16 made for the same taxable year under Section
17 203(c)(2)(G-13) for intangible expenses and costs
18 paid, accrued, or incurred, directly or indirectly, to
19 the same foreign person. This subparagraph (V) is
20 exempt from the provisions of Section 250;
21 (W) in the case of an estate, an amount equal to
22 all amounts included in such total pursuant to the
23 provisions of Section 111 of the Internal Revenue Code
24 as a recovery of items previously deducted by the
25 decedent from adjusted gross income in the computation
26 of taxable income. This subparagraph (W) is exempt
HB2755 Enrolled - 633 - LRB104 08253 BDA 18303 b
1 from Section 250;
2 (X) an amount equal to the refund included in such
3 total of any tax deducted for federal income tax
4 purposes, to the extent that deduction was added back
5 under subparagraph (F). This subparagraph (X) is
6 exempt from the provisions of Section 250;
7 (Y) For taxable years ending on or after December
8 31, 2011, in the case of a taxpayer who was required to
9 add back any insurance premiums under Section
10 203(c)(2)(G-14), such taxpayer may elect to subtract
11 that part of a reimbursement received from the
12 insurance company equal to the amount of the expense
13 or loss (including expenses incurred by the insurance
14 company) that would have been taken into account as a
15 deduction for federal income tax purposes if the
16 expense or loss had been uninsured. If a taxpayer
17 makes the election provided for by this subparagraph
18 (Y), the insurer to which the premiums were paid must
19 add back to income the amount subtracted by the
20 taxpayer pursuant to this subparagraph (Y). This
21 subparagraph (Y) is exempt from the provisions of
22 Section 250;
23 (Z) For taxable years beginning after December 31,
24 2018 and before January 1, 2026, the amount of excess
25 business loss of the taxpayer disallowed as a
26 deduction by Section 461(l)(1)(B) of the Internal
HB2755 Enrolled - 634 - LRB104 08253 BDA 18303 b
1 Revenue Code; and
2 (AA) For taxable years beginning on or after
3 January 1, 2023, for any cannabis establishment
4 operating in this State and licensed under the
5 Cannabis Regulation and Tax Act or any cannabis
6 cultivation center or medical cannabis dispensing
7 organization operating in this State and licensed
8 under the Compassionate Use of Medical Cannabis
9 Program Act, an amount equal to the deductions that
10 were disallowed under Section 280E of the Internal
11 Revenue Code for the taxable year and that would not be
12 added back under this subsection. The provisions of
13 this subparagraph (AA) are exempt from the provisions
14 of Section 250.
15 (3) Limitation. The amount of any modification
16 otherwise required under this subsection shall, under
17 regulations prescribed by the Department, be adjusted by
18 any amounts included therein which were properly paid,
19 credited, or required to be distributed, or permanently
20 set aside for charitable purposes pursuant to Internal
21 Revenue Code Section 642(c) during the taxable year.
22 (d) Partnerships.
23 (1) In general. In the case of a partnership, base
24 income means an amount equal to the taxpayer's taxable
25 income for the taxable year as modified by paragraph (2).
HB2755 Enrolled - 635 - LRB104 08253 BDA 18303 b
1 (2) Modifications. The taxable income referred to in
2 paragraph (1) shall be modified by adding thereto the sum
3 of the following amounts:
4 (A) An amount equal to all amounts paid or accrued
5 to the taxpayer as interest or dividends during the
6 taxable year to the extent excluded from gross income
7 in the computation of taxable income;
8 (B) An amount equal to the amount of tax imposed by
9 this Act to the extent deducted from gross income for
10 the taxable year;
11 (C) The amount of deductions allowed to the
12 partnership pursuant to Section 707 (c) of the
13 Internal Revenue Code in calculating its taxable
14 income;
15 (D) An amount equal to the amount of the capital
16 gain deduction allowable under the Internal Revenue
17 Code, to the extent deducted from gross income in the
18 computation of taxable income;
19 (D-5) For taxable years 2001 and thereafter, an
20 amount equal to the bonus depreciation deduction taken
21 on the taxpayer's federal income tax return for the
22 taxable year under subsection (k) of Section 168 of
23 the Internal Revenue Code;
24 (D-6) If the taxpayer sells, transfers, abandons,
25 or otherwise disposes of property for which the
26 taxpayer was required in any taxable year to make an
HB2755 Enrolled - 636 - LRB104 08253 BDA 18303 b
1 addition modification under subparagraph (D-5), then
2 an amount equal to the aggregate amount of the
3 deductions taken in all taxable years under
4 subparagraph (O) with respect to that property.
5 If the taxpayer continues to own property through
6 the last day of the last tax year for which a
7 subtraction is allowed with respect to that property
8 under subparagraph (O) and for which the taxpayer was
9 allowed in any taxable year to make a subtraction
10 modification under subparagraph (O), then an amount
11 equal to that subtraction modification.
12 The taxpayer is required to make the addition
13 modification under this subparagraph only once with
14 respect to any one piece of property;
15 (D-7) An amount equal to the amount otherwise
16 allowed as a deduction in computing base income for
17 interest paid, accrued, or incurred, directly or
18 indirectly, (i) for taxable years ending on or after
19 December 31, 2004, to a foreign person who would be a
20 member of the same unitary business group but for the
21 fact the foreign person's business activity outside
22 the United States is 80% or more of the foreign
23 person's total business activity and (ii) for taxable
24 years ending on or after December 31, 2008, to a person
25 who would be a member of the same unitary business
26 group but for the fact that the person is prohibited
HB2755 Enrolled - 637 - LRB104 08253 BDA 18303 b
1 under Section 1501(a)(27) from being included in the
2 unitary business group because he or she is ordinarily
3 required to apportion business income under different
4 subsections of Section 304. The addition modification
5 required by this subparagraph shall be reduced to the
6 extent that dividends were included in base income of
7 the unitary group for the same taxable year and
8 received by the taxpayer or by a member of the
9 taxpayer's unitary business group (including amounts
10 included in gross income pursuant to Sections 951
11 through 964 of the Internal Revenue Code and amounts
12 included in gross income under Section 78 of the
13 Internal Revenue Code) with respect to the stock of
14 the same person to whom the interest was paid,
15 accrued, or incurred. For taxable years ending on and
16 after December 31, 2025, for purposes of applying this
17 paragraph in the case of a taxpayer to which Section
18 163(j) of the Internal Revenue Code applies for the
19 taxable year, the reduction in the amount of interest
20 for which a deduction is allowed by reason of Section
21 163(j) shall be treated as allocable first to persons
22 who are not foreign persons referred to in this
23 paragraph and then to such foreign persons.
24 For taxable years ending before December 31, 2025,
25 this This paragraph shall not apply to the following:
26 (i) an item of interest paid, accrued, or
HB2755 Enrolled - 638 - LRB104 08253 BDA 18303 b
1 incurred, directly or indirectly, to a person who
2 is subject in a foreign country or state, other
3 than a state which requires mandatory unitary
4 reporting, to a tax on or measured by net income
5 with respect to such interest; or
6 (ii) an item of interest paid, accrued, or
7 incurred, directly or indirectly, to a person if
8 the taxpayer can establish, based on a
9 preponderance of the evidence, both of the
10 following:
11 (a) the person, during the same taxable
12 year, paid, accrued, or incurred, the interest
13 to a person that is not a related member, and
14 (b) the transaction giving rise to the
15 interest expense between the taxpayer and the
16 person did not have as a principal purpose the
17 avoidance of Illinois income tax, and is paid
18 pursuant to a contract or agreement that
19 reflects an arm's-length interest rate and
20 terms; or
21 (iii) the taxpayer can establish, based on
22 clear and convincing evidence, that the interest
23 paid, accrued, or incurred relates to a contract
24 or agreement entered into at arm's-length rates
25 and terms and the principal purpose for the
26 payment is not federal or Illinois tax avoidance;
HB2755 Enrolled - 639 - LRB104 08253 BDA 18303 b
1 or
2 (iv) an item of interest paid, accrued, or
3 incurred, directly or indirectly, to a person if
4 the taxpayer establishes by clear and convincing
5 evidence that the adjustments are unreasonable; or
6 if the taxpayer and the Director agree in writing
7 to the application or use of an alternative method
8 of apportionment under Section 304(f).
9 For taxable years ending on or after December 31,
10 2025, this paragraph shall not apply to the following:
11 (i) an item of interest paid, accrued, or
12 incurred, directly or indirectly, to a person if
13 the taxpayer can establish, based on a
14 preponderance of the evidence, both of the
15 following:
16 (a) the person, during the same taxable
17 year, paid, accrued, or incurred, the interest
18 to a person that is not a related member, and
19 (b) the transaction giving rise to the
20 interest expense between the taxpayer and the
21 person did not have as a principal purpose the
22 avoidance of Illinois income tax, and is paid
23 pursuant to a contract or agreement that
24 reflects an arm's-length interest rate and
25 terms; or
26 (ii) an item of interest paid, accrued, or
HB2755 Enrolled - 640 - LRB104 08253 BDA 18303 b
1 incurred, directly or indirectly, to a person if
2 the taxpayer establishes by clear and convincing
3 evidence that the adjustments are unreasonable; or
4 if the taxpayer and the Director agree in writing
5 to the application or use of an alternative method
6 of apportionment under Section 304(f).
7 Nothing in this subsection shall preclude the
8 Director from making any other adjustment
9 otherwise allowed under Section 404 of this Act
10 for any tax year beginning after the effective
11 date of this amendment provided such adjustment is
12 made pursuant to regulation adopted by the
13 Department and such regulations provide methods
14 and standards by which the Department will utilize
15 its authority under Section 404 of this Act; and
16 (D-8) An amount equal to the amount of intangible
17 expenses and costs otherwise allowed as a deduction in
18 computing base income, and that were paid, accrued, or
19 incurred, directly or indirectly, (i) for taxable
20 years ending on or after December 31, 2004, to a
21 foreign person who would be a member of the same
22 unitary business group but for the fact that the
23 foreign person's business activity outside the United
24 States is 80% or more of that person's total business
25 activity and (ii) for taxable years ending on or after
26 December 31, 2008, to a person who would be a member of
HB2755 Enrolled - 641 - LRB104 08253 BDA 18303 b
1 the same unitary business group but for the fact that
2 the person is prohibited under Section 1501(a)(27)
3 from being included in the unitary business group
4 because he or she is ordinarily required to apportion
5 business income under different subsections of Section
6 304. The addition modification required by this
7 subparagraph shall be reduced to the extent that
8 dividends were included in base income of the unitary
9 group for the same taxable year and received by the
10 taxpayer or by a member of the taxpayer's unitary
11 business group (including amounts included in gross
12 income pursuant to Sections 951 through 964 of the
13 Internal Revenue Code and amounts included in gross
14 income under Section 78 of the Internal Revenue Code)
15 with respect to the stock of the same person to whom
16 the intangible expenses and costs were directly or
17 indirectly paid, incurred or accrued. The preceding
18 sentence shall not apply to the extent that the same
19 dividends caused a reduction to the addition
20 modification required under Section 203(d)(2)(D-7) of
21 this Act. As used in this subparagraph, the term
22 "intangible expenses and costs" includes (1) expenses,
23 losses, and costs for, or related to, the direct or
24 indirect acquisition, use, maintenance or management,
25 ownership, sale, exchange, or any other disposition of
26 intangible property; (2) losses incurred, directly or
HB2755 Enrolled - 642 - LRB104 08253 BDA 18303 b
1 indirectly, from factoring transactions or discounting
2 transactions; (3) royalty, patent, technical, and
3 copyright fees; (4) licensing fees; and (5) other
4 similar expenses and costs. For purposes of this
5 subparagraph, "intangible property" includes patents,
6 patent applications, trade names, trademarks, service
7 marks, copyrights, mask works, trade secrets, and
8 similar types of intangible assets;
9 For taxable years ending on or after December 31,
10 2025, this This paragraph shall not apply to the
11 following:
12 (i) any item of intangible expenses or costs
13 paid, accrued, or incurred, directly or
14 indirectly, from a transaction with a person who
15 is subject in a foreign country or state, other
16 than a state which requires mandatory unitary
17 reporting, to a tax on or measured by net income
18 with respect to such item; or
19 (ii) any item of intangible expense or cost
20 paid, accrued, or incurred, directly or
21 indirectly, if the taxpayer can establish, based
22 on a preponderance of the evidence, both of the
23 following:
24 (a) the person during the same taxable
25 year paid, accrued, or incurred, the
26 intangible expense or cost to a person that is
HB2755 Enrolled - 643 - LRB104 08253 BDA 18303 b
1 not a related member, and
2 (b) the transaction giving rise to the
3 intangible expense or cost between the
4 taxpayer and the person did not have as a
5 principal purpose the avoidance of Illinois
6 income tax, and is paid pursuant to a contract
7 or agreement that reflects arm's-length terms;
8 or
9 (iii) any item of intangible expense or cost
10 paid, accrued, or incurred, directly or
11 indirectly, from a transaction with a person if
12 the taxpayer establishes by clear and convincing
13 evidence, that the adjustments are unreasonable;
14 or if the taxpayer and the Director agree in
15 writing to the application or use of an
16 alternative method of apportionment under Section
17 304(f);
18 For taxable years ending on or after December 31,
19 2025, this paragraph shall not apply to the following:
20 (i) any item of intangible expense or cost
21 paid, accrued, or incurred, directly or
22 indirectly, if the taxpayer can establish, based
23 on a preponderance of the evidence, both of the
24 following:
25 (a) the person during the same taxable
26 year paid, accrued, or incurred, the
HB2755 Enrolled - 644 - LRB104 08253 BDA 18303 b
1 intangible expense or cost to a person that is
2 not a related member, and
3 (b) the transaction giving rise to the
4 intangible expense or cost between the
5 taxpayer and the person did not have as a
6 principal purpose the avoidance of Illinois
7 income tax, and is paid pursuant to a contract
8 or agreement that reflects arm's-length terms;
9 or
10 (ii) any item of intangible expense or cost
11 paid, accrued, or incurred, directly or
12 indirectly, from a transaction with a person if
13 the taxpayer establishes by clear and convincing
14 evidence, that the adjustments are unreasonable;
15 or if the taxpayer and the Director agree in
16 writing to the application or use of an
17 alternative method of apportionment under Section
18 304(f).
19 Nothing in this subsection shall preclude the
20 Director from making any other adjustment
21 otherwise allowed under Section 404 of this Act
22 for any tax year beginning after the effective
23 date of this amendment provided such adjustment is
24 made pursuant to regulation adopted by the
25 Department and such regulations provide methods
26 and standards by which the Department will utilize
HB2755 Enrolled - 645 - LRB104 08253 BDA 18303 b
1 its authority under Section 404 of this Act;
2 (D-9) For taxable years ending on or after
3 December 31, 2008, an amount equal to the amount of
4 insurance premium expenses and costs otherwise allowed
5 as a deduction in computing base income, and that were
6 paid, accrued, or incurred, directly or indirectly, to
7 a person who would be a member of the same unitary
8 business group but for the fact that the person is
9 prohibited under Section 1501(a)(27) from being
10 included in the unitary business group because he or
11 she is ordinarily required to apportion business
12 income under different subsections of Section 304. The
13 addition modification required by this subparagraph
14 shall be reduced to the extent that dividends were
15 included in base income of the unitary group for the
16 same taxable year and received by the taxpayer or by a
17 member of the taxpayer's unitary business group
18 (including amounts included in gross income under
19 Sections 951 through 964 of the Internal Revenue Code
20 and amounts included in gross income under Section 78
21 of the Internal Revenue Code) with respect to the
22 stock of the same person to whom the premiums and costs
23 were directly or indirectly paid, incurred, or
24 accrued. The preceding sentence does not apply to the
25 extent that the same dividends caused a reduction to
26 the addition modification required under Section
HB2755 Enrolled - 646 - LRB104 08253 BDA 18303 b
1 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
2 (D-10) An amount equal to the credit allowable to
3 the taxpayer under Section 218(a) of this Act,
4 determined without regard to Section 218(c) of this
5 Act;
6 (D-11) For taxable years ending on or after
7 December 31, 2017, an amount equal to the deduction
8 allowed under Section 199 of the Internal Revenue Code
9 for the taxable year;
10 (D-12) the amount that is claimed as a federal
11 deduction when computing the taxpayer's federal
12 taxable income for the taxable year and that is
13 attributable to an endowment gift for which the
14 taxpayer receives a credit under the Illinois Gives
15 Tax Credit Act;
16 and by deducting from the total so obtained the following
17 amounts:
18 (E) The valuation limitation amount;
19 (F) An amount equal to the amount of any tax
20 imposed by this Act which was refunded to the taxpayer
21 and included in such total for the taxable year;
22 (G) An amount equal to all amounts included in
23 taxable income as modified by subparagraphs (A), (B),
24 (C) and (D) which are exempt from taxation by this
25 State either by reason of its statutes or Constitution
26 or by reason of the Constitution, treaties or statutes
HB2755 Enrolled - 647 - LRB104 08253 BDA 18303 b
1 of the United States; provided that, in the case of any
2 statute of this State that exempts income derived from
3 bonds or other obligations from the tax imposed under
4 this Act, the amount exempted shall be the interest
5 net of bond premium amortization;
6 (H) Any income of the partnership which
7 constitutes personal service income as defined in
8 Section 1348(b)(1) of the Internal Revenue Code (as in
9 effect December 31, 1981) or a reasonable allowance
10 for compensation paid or accrued for services rendered
11 by partners to the partnership, whichever is greater;
12 this subparagraph (H) is exempt from the provisions of
13 Section 250;
14 (I) An amount equal to all amounts of income
15 distributable to an entity subject to the Personal
16 Property Tax Replacement Income Tax imposed by
17 subsections (c) and (d) of Section 201 of this Act
18 including amounts distributable to organizations
19 exempt from federal income tax by reason of Section
20 501(a) of the Internal Revenue Code; this subparagraph
21 (I) is exempt from the provisions of Section 250;
22 (J) With the exception of any amounts subtracted
23 under subparagraph (G), an amount equal to the sum of
24 all amounts disallowed as deductions by (i) Sections
25 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
26 and all amounts of expenses allocable to interest and
HB2755 Enrolled - 648 - LRB104 08253 BDA 18303 b
1 disallowed as deductions by Section 265(a)(1) of the
2 Internal Revenue Code; and (ii) for taxable years
3 ending on or after August 13, 1999, Sections
4 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
5 Internal Revenue Code, plus, (iii) for taxable years
6 ending on or after December 31, 2011, Section
7 45G(e)(3) of the Internal Revenue Code and, for
8 taxable years ending on or after December 31, 2008,
9 any amount included in gross income under Section 87
10 of the Internal Revenue Code; the provisions of this
11 subparagraph are exempt from the provisions of Section
12 250;
13 (K) An amount equal to those dividends included in
14 such total which were paid by a corporation which
15 conducts business operations in a River Edge
16 Redevelopment Zone or zones created under the River
17 Edge Redevelopment Zone Act and conducts substantially
18 all of its operations from a River Edge Redevelopment
19 Zone or zones. This subparagraph (K) is exempt from
20 the provisions of Section 250;
21 (L) An amount equal to any contribution made to a
22 job training project established pursuant to the Real
23 Property Tax Increment Allocation Redevelopment Act;
24 (M) An amount equal to those dividends included in
25 such total that were paid by a corporation that
26 conducts business operations in a federally designated
HB2755 Enrolled - 649 - LRB104 08253 BDA 18303 b
1 Foreign Trade Zone or Sub-Zone and that is designated
2 a High Impact Business located in Illinois; provided
3 that dividends eligible for the deduction provided in
4 subparagraph (K) of paragraph (2) of this subsection
5 shall not be eligible for the deduction provided under
6 this subparagraph (M);
7 (N) An amount equal to the amount of the deduction
8 used to compute the federal income tax credit for
9 restoration of substantial amounts held under claim of
10 right for the taxable year pursuant to Section 1341 of
11 the Internal Revenue Code;
12 (O) For taxable years 2001 and thereafter, for the
13 taxable year in which the bonus depreciation deduction
14 is taken on the taxpayer's federal income tax return
15 under subsection (k) of Section 168 of the Internal
16 Revenue Code and for each applicable taxable year
17 thereafter, an amount equal to "x", where:
18 (1) "y" equals the amount of the depreciation
19 deduction taken for the taxable year on the
20 taxpayer's federal income tax return on property
21 for which the bonus depreciation deduction was
22 taken in any year under subsection (k) of Section
23 168 of the Internal Revenue Code, but not
24 including the bonus depreciation deduction;
25 (2) for taxable years ending on or before
26 December 31, 2005, "x" equals "y" multiplied by 30
HB2755 Enrolled - 650 - LRB104 08253 BDA 18303 b
1 and then divided by 70 (or "y" multiplied by
2 0.429); and
3 (3) for taxable years ending after December
4 31, 2005:
5 (i) for property on which a bonus
6 depreciation deduction of 30% of the adjusted
7 basis was taken, "x" equals "y" multiplied by
8 30 and then divided by 70 (or "y" multiplied
9 by 0.429);
10 (ii) for property on which a bonus
11 depreciation deduction of 50% of the adjusted
12 basis was taken, "x" equals "y" multiplied by
13 1.0;
14 (iii) for property on which a bonus
15 depreciation deduction of 100% of the adjusted
16 basis was taken in a taxable year ending on or
17 after December 31, 2021, "x" equals the
18 depreciation deduction that would be allowed
19 on that property if the taxpayer had made the
20 election under Section 168(k)(7) of the
21 Internal Revenue Code to not claim bonus
22 depreciation on that property; and
23 (iv) for property on which a bonus
24 depreciation deduction of a percentage other
25 than 30%, 50% or 100% of the adjusted basis
26 was taken in a taxable year ending on or after
HB2755 Enrolled - 651 - LRB104 08253 BDA 18303 b
1 December 31, 2021, "x" equals "y" multiplied
2 by 100 times the percentage bonus depreciation
3 on the property (that is, 100(bonus%)) and
4 then divided by 100 times 1 minus the
5 percentage bonus depreciation on the property
6 (that is, 100(1-bonus%)).
7 The aggregate amount deducted under this
8 subparagraph in all taxable years for any one piece of
9 property may not exceed the amount of the bonus
10 depreciation deduction taken on that property on the
11 taxpayer's federal income tax return under subsection
12 (k) of Section 168 of the Internal Revenue Code. This
13 subparagraph (O) is exempt from the provisions of
14 Section 250;
15 (P) If the taxpayer sells, transfers, abandons, or
16 otherwise disposes of property for which the taxpayer
17 was required in any taxable year to make an addition
18 modification under subparagraph (D-5), then an amount
19 equal to that addition modification.
20 If the taxpayer continues to own property through
21 the last day of the last tax year for which a
22 subtraction is allowed with respect to that property
23 under subparagraph (O) and for which the taxpayer was
24 required in any taxable year to make an addition
25 modification under subparagraph (D-5), then an amount
26 equal to that addition modification.
HB2755 Enrolled - 652 - LRB104 08253 BDA 18303 b
1 The taxpayer is allowed to take the deduction
2 under this subparagraph only once with respect to any
3 one piece of property.
4 This subparagraph (P) is exempt from the
5 provisions of Section 250;
6 (Q) The amount of (i) any interest income (net of
7 the deductions allocable thereto) taken into account
8 for the taxable year with respect to a transaction
9 with a taxpayer that is required to make an addition
10 modification with respect to such transaction under
11 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
12 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
13 the amount of such addition modification and (ii) any
14 income from intangible property (net of the deductions
15 allocable thereto) taken into account for the taxable
16 year with respect to a transaction with a taxpayer
17 that is required to make an addition modification with
18 respect to such transaction under Section
19 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
20 203(d)(2)(D-8), but not to exceed the amount of such
21 addition modification. This subparagraph (Q) is exempt
22 from Section 250;
23 (R) An amount equal to the interest income taken
24 into account for the taxable year (net of the
25 deductions allocable thereto) with respect to
26 transactions with (i) a foreign person who would be a
HB2755 Enrolled - 653 - LRB104 08253 BDA 18303 b
1 member of the taxpayer's unitary business group but
2 for the fact that the foreign person's business
3 activity outside the United States is 80% or more of
4 that person's total business activity and (ii) for
5 taxable years ending on or after December 31, 2008, to
6 a person who would be a member of the same unitary
7 business group but for the fact that the person is
8 prohibited under Section 1501(a)(27) from being
9 included in the unitary business group because he or
10 she is ordinarily required to apportion business
11 income under different subsections of Section 304, but
12 not to exceed the addition modification required to be
13 made for the same taxable year under Section
14 203(d)(2)(D-7) for interest paid, accrued, or
15 incurred, directly or indirectly, to the same person.
16 This subparagraph (R) is exempt from Section 250;
17 (S) An amount equal to the income from intangible
18 property taken into account for the taxable year (net
19 of the deductions allocable thereto) with respect to
20 transactions with (i) a foreign person who would be a
21 member of the taxpayer's unitary business group but
22 for the fact that the foreign person's business
23 activity outside the United States is 80% or more of
24 that person's total business activity and (ii) for
25 taxable years ending on or after December 31, 2008, to
26 a person who would be a member of the same unitary
HB2755 Enrolled - 654 - LRB104 08253 BDA 18303 b
1 business group but for the fact that the person is
2 prohibited under Section 1501(a)(27) from being
3 included in the unitary business group because he or
4 she is ordinarily required to apportion business
5 income under different subsections of Section 304, but
6 not to exceed the addition modification required to be
7 made for the same taxable year under Section
8 203(d)(2)(D-8) for intangible expenses and costs paid,
9 accrued, or incurred, directly or indirectly, to the
10 same person. This subparagraph (S) is exempt from
11 Section 250;
12 (T) For taxable years ending on or after December
13 31, 2011, in the case of a taxpayer who was required to
14 add back any insurance premiums under Section
15 203(d)(2)(D-9), such taxpayer may elect to subtract
16 that part of a reimbursement received from the
17 insurance company equal to the amount of the expense
18 or loss (including expenses incurred by the insurance
19 company) that would have been taken into account as a
20 deduction for federal income tax purposes if the
21 expense or loss had been uninsured. If a taxpayer
22 makes the election provided for by this subparagraph
23 (T), the insurer to which the premiums were paid must
24 add back to income the amount subtracted by the
25 taxpayer pursuant to this subparagraph (T). This
26 subparagraph (T) is exempt from the provisions of
HB2755 Enrolled - 655 - LRB104 08253 BDA 18303 b
1 Section 250; and
2 (U) For taxable years beginning on or after
3 January 1, 2023, for any cannabis establishment
4 operating in this State and licensed under the
5 Cannabis Regulation and Tax Act or any cannabis
6 cultivation center or medical cannabis dispensing
7 organization operating in this State and licensed
8 under the Compassionate Use of Medical Cannabis
9 Program Act, an amount equal to the deductions that
10 were disallowed under Section 280E of the Internal
11 Revenue Code for the taxable year and that would not be
12 added back under this subsection. The provisions of
13 this subparagraph (U) are exempt from the provisions
14 of Section 250.
15 (e) Gross income; adjusted gross income; taxable income.
16 (1) In general. Subject to the provisions of paragraph
17 (2) and subsection (b)(3), for purposes of this Section
18 and Section 803(e), a taxpayer's gross income, adjusted
19 gross income, or taxable income for the taxable year shall
20 mean the amount of gross income, adjusted gross income or
21 taxable income properly reportable for federal income tax
22 purposes for the taxable year under the provisions of the
23 Internal Revenue Code. Taxable income may be less than
24 zero. However, for taxable years ending on or after
25 December 31, 1986, net operating loss carryforwards from
HB2755 Enrolled - 656 - LRB104 08253 BDA 18303 b
1 taxable years ending prior to December 31, 1986, may not
2 exceed the sum of federal taxable income for the taxable
3 year before net operating loss deduction, plus the excess
4 of addition modifications over subtraction modifications
5 for the taxable year. For taxable years ending prior to
6 December 31, 1986, taxable income may never be an amount
7 in excess of the net operating loss for the taxable year as
8 defined in subsections (c) and (d) of Section 172 of the
9 Internal Revenue Code, provided that when taxable income
10 of a corporation (other than a Subchapter S corporation),
11 trust, or estate is less than zero and addition
12 modifications, other than those provided by subparagraph
13 (E) of paragraph (2) of subsection (b) for corporations or
14 subparagraph (E) of paragraph (2) of subsection (c) for
15 trusts and estates, exceed subtraction modifications, an
16 addition modification must be made under those
17 subparagraphs for any other taxable year to which the
18 taxable income less than zero (net operating loss) is
19 applied under Section 172 of the Internal Revenue Code or
20 under subparagraph (E) of paragraph (2) of this subsection
21 (e) applied in conjunction with Section 172 of the
22 Internal Revenue Code.
23 (2) Special rule. For purposes of paragraph (1) of
24 this subsection, the taxable income properly reportable
25 for federal income tax purposes shall mean:
26 (A) Certain life insurance companies. In the case
HB2755 Enrolled - 657 - LRB104 08253 BDA 18303 b
1 of a life insurance company subject to the tax imposed
2 by Section 801 of the Internal Revenue Code, life
3 insurance company taxable income, plus the amount of
4 distribution from pre-1984 policyholder surplus
5 accounts as calculated under Section 815a of the
6 Internal Revenue Code;
7 (B) Certain other insurance companies. In the case
8 of mutual insurance companies subject to the tax
9 imposed by Section 831 of the Internal Revenue Code,
10 insurance company taxable income;
11 (C) Regulated investment companies. In the case of
12 a regulated investment company subject to the tax
13 imposed by Section 852 of the Internal Revenue Code,
14 investment company taxable income;
15 (D) Real estate investment trusts. In the case of
16 a real estate investment trust subject to the tax
17 imposed by Section 857 of the Internal Revenue Code,
18 real estate investment trust taxable income;
19 (E) Consolidated corporations. In the case of a
20 corporation which is a member of an affiliated group
21 of corporations filing a consolidated income tax
22 return for the taxable year for federal income tax
23 purposes, taxable income determined as if such
24 corporation had filed a separate return for federal
25 income tax purposes for the taxable year and each
26 preceding taxable year for which it was a member of an
HB2755 Enrolled - 658 - LRB104 08253 BDA 18303 b
1 affiliated group. For purposes of this subparagraph,
2 the taxpayer's separate taxable income shall be
3 determined as if the election provided by Section
4 243(b)(2) of the Internal Revenue Code had been in
5 effect for all such years;
6 (F) Cooperatives. In the case of a cooperative
7 corporation or association, the taxable income of such
8 organization determined in accordance with the
9 provisions of Section 1381 through 1388 of the
10 Internal Revenue Code, but without regard to the
11 prohibition against offsetting losses from patronage
12 activities against income from nonpatronage
13 activities; except that a cooperative corporation or
14 association may make an election to follow its federal
15 income tax treatment of patronage losses and
16 nonpatronage losses. In the event such election is
17 made, such losses shall be computed and carried over
18 in a manner consistent with subsection (a) of Section
19 207 of this Act and apportioned by the apportionment
20 factor reported by the cooperative on its Illinois
21 income tax return filed for the taxable year in which
22 the losses are incurred. The election shall be
23 effective for all taxable years with original returns
24 due on or after the date of the election. In addition,
25 the cooperative may file an amended return or returns,
26 as allowed under this Act, to provide that the
HB2755 Enrolled - 659 - LRB104 08253 BDA 18303 b
1 election shall be effective for losses incurred or
2 carried forward for taxable years occurring prior to
3 the date of the election. Once made, the election may
4 only be revoked upon approval of the Director. The
5 Department shall adopt rules setting forth
6 requirements for documenting the elections and any
7 resulting Illinois net loss and the standards to be
8 used by the Director in evaluating requests to revoke
9 elections. Public Act 96-932 is declaratory of
10 existing law;
11 (G) Subchapter S corporations. In the case of: (i)
12 a Subchapter S corporation for which there is in
13 effect an election for the taxable year under Section
14 1362 of the Internal Revenue Code, the taxable income
15 of such corporation determined in accordance with
16 Section 1363(b) of the Internal Revenue Code, except
17 that taxable income shall take into account those
18 items which are required by Section 1363(b)(1) of the
19 Internal Revenue Code to be separately stated; and
20 (ii) a Subchapter S corporation for which there is in
21 effect a federal election to opt out of the provisions
22 of the Subchapter S Revision Act of 1982 and have
23 applied instead the prior federal Subchapter S rules
24 as in effect on July 1, 1982, the taxable income of
25 such corporation determined in accordance with the
26 federal Subchapter S rules as in effect on July 1,
HB2755 Enrolled - 660 - LRB104 08253 BDA 18303 b
1 1982; and
2 (H) Partnerships. In the case of a partnership,
3 taxable income determined in accordance with Section
4 703 of the Internal Revenue Code, except that taxable
5 income shall take into account those items which are
6 required by Section 703(a)(1) to be separately stated
7 but which would be taken into account by an individual
8 in calculating his taxable income.
9 (3) Recapture of business expenses on disposition of
10 asset or business. Notwithstanding any other law to the
11 contrary, if in prior years income from an asset or
12 business has been classified as business income and in a
13 later year is demonstrated to be non-business income, then
14 all expenses, without limitation, deducted in such later
15 year and in the 2 immediately preceding taxable years
16 related to that asset or business that generated the
17 non-business income shall be added back and recaptured as
18 business income in the year of the disposition of the
19 asset or business. Such amount shall be apportioned to
20 Illinois using the greater of the apportionment fraction
21 computed for the business under Section 304 of this Act
22 for the taxable year or the average of the apportionment
23 fractions computed for the business under Section 304 of
24 this Act for the taxable year and for the 2 immediately
25 preceding taxable years.
HB2755 Enrolled - 661 - LRB104 08253 BDA 18303 b
1 (f) Valuation limitation amount.
2 (1) In general. The valuation limitation amount
3 referred to in subsections (a)(2)(G), (c)(2)(I) and
4 (d)(2)(E) is an amount equal to:
5 (A) The sum of the pre-August 1, 1969 appreciation
6 amounts (to the extent consisting of gain reportable
7 under the provisions of Section 1245 or 1250 of the
8 Internal Revenue Code) for all property in respect of
9 which such gain was reported for the taxable year;
10 plus
11 (B) The lesser of (i) the sum of the pre-August 1,
12 1969 appreciation amounts (to the extent consisting of
13 capital gain) for all property in respect of which
14 such gain was reported for federal income tax purposes
15 for the taxable year, or (ii) the net capital gain for
16 the taxable year, reduced in either case by any amount
17 of such gain included in the amount determined under
18 subsection (a)(2)(F) or (c)(2)(H).
19 (2) Pre-August 1, 1969 appreciation amount.
20 (A) If the fair market value of property referred
21 to in paragraph (1) was readily ascertainable on
22 August 1, 1969, the pre-August 1, 1969 appreciation
23 amount for such property is the lesser of (i) the
24 excess of such fair market value over the taxpayer's
25 basis (for determining gain) for such property on that
26 date (determined under the Internal Revenue Code as in
HB2755 Enrolled - 662 - LRB104 08253 BDA 18303 b
1 effect on that date), or (ii) the total gain realized
2 and reportable for federal income tax purposes in
3 respect of the sale, exchange or other disposition of
4 such property.
5 (B) If the fair market value of property referred
6 to in paragraph (1) was not readily ascertainable on
7 August 1, 1969, the pre-August 1, 1969 appreciation
8 amount for such property is that amount which bears
9 the same ratio to the total gain reported in respect of
10 the property for federal income tax purposes for the
11 taxable year, as the number of full calendar months in
12 that part of the taxpayer's holding period for the
13 property ending July 31, 1969 bears to the number of
14 full calendar months in the taxpayer's entire holding
15 period for the property.
16 (C) The Department shall prescribe such
17 regulations as may be necessary to carry out the
18 purposes of this paragraph.
19 (g) Double deductions. Unless specifically provided
20 otherwise, nothing in this Section shall permit the same item
21 to be deducted more than once.
22 (h) Legislative intention. Except as expressly provided by
23 this Section there shall be no modifications or limitations on
24 the amounts of income, gain, loss or deduction taken into
HB2755 Enrolled - 663 - LRB104 08253 BDA 18303 b
1 account in determining gross income, adjusted gross income or
2 taxable income for federal income tax purposes for the taxable
3 year, or in the amount of such items entering into the
4 computation of base income and net income under this Act for
5 such taxable year, whether in respect of property values as of
6 August 1, 1969 or otherwise.
7 (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
8 102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
9 12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; 103-592,
10 Article 10, Section 10-900, eff. 6-7-24; 103-592, Article 170,
11 Section 170-90, eff. 6-7-24; 103-605, eff. 7-1-24; 103-647,
12 eff. 7-1-24; revised 8-20-24.)
13 ARTICLE 35
14 Section 35-5. The State Finance Act is amended by changing
15 Section 6z-17 as follows:
16 (30 ILCS 105/6z-17) (from Ch. 127, par. 142z-17)
17 Sec. 6z-17. State and Local Sales Tax Reform Fund.
18 (a) After deducting the amount transferred to the Tax
19 Compliance and Administration Fund under subsection (b), of
20 the money paid into the State and Local Sales Tax Reform Fund:
21 (i) subject to appropriation to the Department of Revenue,
22 Municipalities having 1,000,000 or more inhabitants shall
23 receive 20% and may expend such amount to fund and establish a
HB2755 Enrolled - 664 - LRB104 08253 BDA 18303 b
1 program for developing and coordinating public and private
2 resources targeted to meet the affordable housing needs of
3 low-income and very low-income households within such
4 municipality, (ii) 10% shall be transferred into the Regional
5 Transportation Authority Occupation and Use Tax Replacement
6 Fund, a special fund in the State treasury which is hereby
7 created, (iii) until July 1, 2013, subject to appropriation to
8 the Department of Transportation, the Madison County Mass
9 Transit District shall receive .6%, and beginning on July 1,
10 2013, subject to appropriation to the Department of Revenue,
11 0.6% shall be distributed by the Department of Revenue each
12 month out of the Fund to the Madison County Mass Transit
13 District, (iv) the following amounts, plus any cumulative
14 deficiency in such transfers for prior months, shall be
15 transferred monthly into the Build Illinois Fund and credited
16 to the Build Illinois Bond Account therein:
17 Fiscal Year Amount
18 1990 $2,700,000
19 1991 1,850,000
20 1992 2,750,000
21 1993 2,950,000
22 From Fiscal Year 1994 through Fiscal Year 2025 the
23 transfer shall total $3,150,000 monthly, plus any cumulative
24 deficiency in such transfers for prior months, and (v) the
25 remainder of the money paid into the State and Local Sales Tax
26 Reform Fund shall be transferred into the Local Government
HB2755 Enrolled - 665 - LRB104 08253 BDA 18303 b
1 Distributive Fund and, except for municipalities with
2 1,000,000 or more inhabitants which shall receive no portion
3 of such remainder, shall be distributed, subject to
4 appropriation, in the manner provided by Section 2 of the
5 State Revenue Sharing Act "An Act in relation to State revenue
6 sharing with local government entities", approved July 31,
7 1969, as now or hereafter amended. Municipalities with more
8 than 50,000 inhabitants according to the 1980 U.S. Census and
9 located within the Metro East Mass Transit District receiving
10 funds pursuant to provision (v) of this paragraph may expend
11 such amounts to fund and establish a program for developing
12 and coordinating public and private resources targeted to meet
13 the affordable housing needs of low-income and very low-income
14 households within such municipality.
15 Moneys transferred from the Grocery Tax Replacement Fund
16 to the State and Local Sales Tax Reform Fund under Section
17 6z-130 shall be treated under this Section in the same manner
18 as if they had been remitted with the return on which they were
19 reported.
20 (b) Beginning on the first day of the first calendar month
21 to occur on or after the effective date of this amendatory Act
22 of the 98th General Assembly, each month the Department of
23 Revenue shall certify to the State Comptroller and the State
24 Treasurer, and the State Comptroller shall order transferred
25 and the State Treasurer shall transfer from the State and
26 Local Sales Tax Reform Fund to the Tax Compliance and
HB2755 Enrolled - 666 - LRB104 08253 BDA 18303 b
1 Administration Fund, an amount equal to 1/12 of 5% of 20% of
2 the cash receipts collected during the preceding fiscal year
3 by the Audit Bureau of the Department of Revenue under the Use
4 Tax Act, the Service Use Tax Act, the Service Occupation Tax
5 Act, the Retailers' Occupation Tax Act, and associated local
6 occupation and use taxes administered by the Department. The
7 amount distributed under subsection (a) each month shall first
8 be reduced by the amount transferred to the Tax Compliance and
9 Administration Fund under this subsection (b). Moneys
10 transferred to the Tax Compliance and Administration Fund
11 under this subsection (b) shall be used, subject to
12 appropriation, to fund additional auditors and compliance
13 personnel at the Department of Revenue.
14 (c) The provisions of this Section directing the
15 distributions from the State and Local Sales Tax Reform Fund,
16 including, but not limited to, amounts that are distributed in
17 the manner provided by Section 2 of the State Revenue Sharing
18 Act, shall constitute an irrevocable and continuing
19 appropriation of all amounts as provided in this Section. The
20 State Treasurer and State Comptroller are hereby authorized to
21 make distributions as provided in this Section.
22 (Source: P.A. 102-700, eff. 4-19-22.)
23 Section 35-10. The State Revenue Sharing Act is amended by
24 changing Sections 1 and 2 as follows:
HB2755 Enrolled - 667 - LRB104 08253 BDA 18303 b
1 (30 ILCS 115/1) (from Ch. 85, par. 611)
2 Sec. 1. Local Government Distributive Fund. Through June
3 30, 1994, as soon as may be after the first day of each month
4 the Department of Revenue shall certify to the Treasurer an
5 amount equal to 1/12 of the net revenue realized from the tax
6 imposed by subsections (a) and (b) of Section 201 of the
7 Illinois Income Tax Act during the preceding month. Beginning
8 July 1, 1994, and continuing through June 30, 1995, as soon as
9 may be after the first day of each month, the Department of
10 Revenue shall certify to the Treasurer an amount equal to 1/11
11 of the net revenue realized from the tax imposed by
12 subsections (a) and (b) of Section 201 of the Illinois Income
13 Tax Act during the preceding month. Beginning July 1, 1995, as
14 soon as may be after the first day of each month, the
15 Department of Revenue shall certify to the Treasurer an amount
16 equal to the amounts calculated pursuant to subsection (b) of
17 Section 901 of the Illinois Income Tax Act based on the net
18 revenue realized from the tax imposed by subsections (a) and
19 (b) of Section 201 of the Illinois Income Tax Act during the
20 preceding month. Net revenue realized for a month shall be
21 defined as the revenue from the tax imposed by subsections (a)
22 and (b) of Section 201 of the Illinois Income Tax Act which is
23 deposited in the General Revenue Fund, the Education
24 Assistance Fund and the Income Tax Surcharge Local Government
25 Distributive Fund during the month minus the amount paid out
26 of the General Revenue Fund in State warrants during that same
HB2755 Enrolled - 668 - LRB104 08253 BDA 18303 b
1 month as refunds to taxpayers for overpayment of liability
2 under the tax imposed by subsections (a) and (b) of Section 201
3 of the Illinois Income Tax Act. Upon receipt of such
4 certification, the Treasurer shall transfer from the General
5 Revenue Fund to a special fund in the State treasury, to be
6 known as the "Local Government Distributive Fund", the amount
7 shown on such certification.
8 Beginning on the effective date of this amendatory Act of
9 the 98th General Assembly, the Comptroller shall perform the
10 transfers required by this Section no later than 60 days after
11 he or she receives the certification from the Treasurer.
12 This Section constitutes an irrevocable and continuing
13 appropriation of all All amounts that are paid into the Local
14 Government Distributive Fund in accordance with this Section
15 or from any other other source and that are allocated pursuant
16 to this Act are appropriated on a continuing basis. The State
17 Treasurer and State Comptroller are hereby authorized to make
18 distributions as provided in this Act.
19 (Source: P.A. 98-1052, eff. 8-26-14.)
20 (30 ILCS 115/2) (from Ch. 85, par. 612)
21 Sec. 2. Allocation and Disbursement.
22 (a) As soon as may be after the first day of each month,
23 the Department of Revenue shall allocate among the several
24 municipalities and counties of this State the amount available
25 in the Local Government Distributive Fund and in the Income
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1 Tax Surcharge Local Government Distributive Fund, determined
2 as provided in Sections 1 and 1a above. Except as provided in
3 Sections 13 and 13.1 of this Act, the Department shall then
4 certify such allocations to the State Comptroller, who shall
5 pay over to the several municipalities and counties the
6 respective amounts allocated to them. The amount of such Funds
7 allocable to each such municipality and county shall be in
8 proportion to the number of individual residents of such
9 municipality or county to the total population of the State,
10 determined in each case on the basis of the latest census of
11 the State, municipality or county conducted by the Federal
12 government and certified by the Secretary of State and for
13 annexations to municipalities, the latest Federal, State or
14 municipal census of the annexed area which has been certified
15 by the Department of Revenue. Allocations to the City of
16 Chicago under this Section are subject to Section 6 of the
17 Hotel Operators' Occupation Tax Act. For the purpose of this
18 Section, the number of individual residents of a county shall
19 be reduced by the number of individuals residing therein in
20 municipalities, but the number of individual residents of the
21 State, county and municipality shall reflect the latest census
22 of any of them. The amounts transferred into the Local
23 Government Distributive Fund pursuant to Section 9 of the Use
24 Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the
25 Service Occupation Tax Act, and Section 3 of the Retailers'
26 Occupation Tax Act, each as now or hereafter amended, pursuant
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1 to the amendments of such Sections by Public Act 85-1135,
2 shall be distributed as provided in said Sections.
3 (b) It is the intent of the General Assembly that
4 allocations made under this Section shall be made in a fair and
5 equitable manner. Accordingly, the clerk of any municipality
6 to which territory has been annexed, or from which territory
7 has been disconnected, shall notify the Department of Revenue
8 in writing of that annexation or disconnection and shall (1)
9 state the number of residents within the territory that was
10 annexed or disconnected, based on the last census conducted by
11 the federal, State, or municipal government and certified by
12 the Illinois Secretary of State, and (2) furnish therewith a
13 certified copy of the plat of annexation or, in the case of
14 disconnection, the ordinance, final judgment, or resolution of
15 disconnection together with an accurate depiction of the
16 territory disconnected. The county in which the annexed or
17 disconnected territory is located shall verify that the number
18 of residents stated on the written notice that is to be sent to
19 the Department of Revenue is true and accurate. The verified
20 statement of the county shall accompany the written notice.
21 However, if the county does not respond to the municipality's
22 request for verification within 30 days, this verification
23 requirement shall be waived. The written notice shall be
24 provided to the Department of Revenue (1) within 30 days after
25 the effective date of this amendatory Act of the 96th General
26 Assembly for disconnections occurring after January 1, 2007
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1 and before the effective date of this amendatory Act of the
2 96th General Assembly or (2) within 30 days after the
3 annexation or disconnection for annexations or disconnections
4 occurring on or after the effective date of this amendatory
5 Act of the 96th General Assembly. For purposes of this
6 Section, a disconnection or annexation through court order is
7 deemed to be effective 30 days after the entry of a final
8 judgment order, unless stayed pending appeal. Thereafter, the
9 monthly allocation made to the municipality and to any other
10 municipality or county affected by the annexation or
11 disconnection shall be adjusted in accordance with this
12 Section to reflect the change in residency of the residents of
13 the territory that was annexed or disconnected. The adjustment
14 shall be made no later than 30 days after the Department of
15 Revenue's receipt of the written notice of annexation or
16 disconnection described in this Section.
17 (Source: P.A. 96-1040, eff. 7-14-10.)
18 Section 35-15. The Illinois Income Tax Act is amended by
19 changing Sections 303, 304 and 901 as follows:
20 (35 ILCS 5/303) (from Ch. 120, par. 3-303)
21 Sec. 303. (a) In general. Any item of capital gain or loss,
22 and any item of income from rents or royalties from real or
23 tangible personal property, interest, dividends, and patent or
24 copyright royalties, and prizes awarded under the Illinois
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1 Lottery Law, and, for taxable years ending on or after
2 December 31, 2019, wagering and gambling winnings from
3 Illinois sources as set forth in subsection (e-1) of this
4 Section, and, for taxable years ending on or after December
5 31, 2021, sports wagering and winnings from Illinois sources
6 as set forth in subsection (e-2) of this Section, to the extent
7 such item constitutes nonbusiness income, together with any
8 item of deduction directly allocable thereto, shall be
9 allocated by any person other than a resident as provided in
10 this Section.
11 (b) Capital gains and losses.
12 (1) Real property. Capital gains and losses from sales
13 or exchanges of real property are allocable to this State
14 if the property is located in this State.
15 (2) Tangible personal property. Capital gains and
16 losses from sales or exchanges of tangible personal
17 property are allocable to this State if, at the time of
18 such sale or exchange:
19 (A) The property had its situs in this State; or
20 (B) The taxpayer had its commercial domicile in
21 this State and was not taxable in the state in which
22 the property had its situs.
23 (3) Intangibles. Capital gains and losses from sales
24 or exchanges of intangible personal property are allocable
25 to this State if the taxpayer had its commercial domicile
26 in this State at the time of such sale or exchange.
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1 (4) Pass-through entities. Gains and losses from sales
2 or exchanges of shares in a Subchapter S corporation or
3 from an interest in a partnership, other than an
4 investment partnership as defined in paragraph (11.5) of
5 subsection (a) of Section 1501, are allocable to this
6 State if the pass-through entity is taxable in this State,
7 and those gains and losses shall be allocated in
8 proportion to the average of the pass-through entity's
9 Illinois apportionment factor computed under Section 304
10 in the year of the sale or exchange and the 2 tax years
11 immediately preceding the year of the sale or exchange. If
12 the pass-through entity was not in existence during both
13 of the preceding 2 years, then only the years in which the
14 pass-through entity was in existence shall be considered
15 when computing the average.
16 (c) Rents and royalties.
17 (1) Real property. Rents and royalties from real
18 property are allocable to this State if the property is
19 located in this State.
20 (2) Tangible personal property. Rents and royalties
21 from tangible personal property are allocable to this
22 State:
23 (A) If and to the extent that the property is
24 utilized in this State; or
25 (B) In their entirety if, at the time such rents or
26 royalties were paid or accrued, the taxpayer had its
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1 commercial domicile in this State and was not
2 organized under the laws of or taxable with respect to
3 such rents or royalties in the state in which the
4 property was utilized. The extent of utilization of
5 tangible personal property in a state is determined by
6 multiplying the rents or royalties derived from such
7 property by a fraction, the numerator of which is the
8 number of days of physical location of the property in
9 the state during the rental or royalty period in the
10 taxable year and the denominator of which is the
11 number of days of physical location of the property
12 everywhere during all rental or royalty periods in the
13 taxable year. If the physical location of the property
14 during the rental or royalty period is unknown or
15 unascertainable by the taxpayer, tangible personal
16 property is utilized in the state in which the
17 property was located at the time the rental or royalty
18 payer obtained possession.
19 (d) Patent and copyright royalties.
20 (1) Allocation. Patent and copyright royalties are
21 allocable to this State:
22 (A) If and to the extent that the patent or
23 copyright is utilized by the payer in this State; or
24 (B) If and to the extent that the patent or
25 copyright is utilized by the payer in a state in which
26 the taxpayer is not taxable with respect to such
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1 royalties and, at the time such royalties were paid or
2 accrued, the taxpayer had its commercial domicile in
3 this State.
4 (2) Utilization.
5 (A) A patent is utilized in a state to the extent
6 that it is employed in production, fabrication,
7 manufacturing or other processing in the state or to
8 the extent that a patented product is produced in the
9 state. If the basis of receipts from patent royalties
10 does not permit allocation to states or if the
11 accounting procedures do not reflect states of
12 utilization, the patent is utilized in this State if
13 the taxpayer has its commercial domicile in this
14 State.
15 (B) A copyright is utilized in a state to the
16 extent that printing or other publication originates
17 in the state. If the basis of receipts from copyright
18 royalties does not permit allocation to states or if
19 the accounting procedures do not reflect states of
20 utilization, the copyright is utilized in this State
21 if the taxpayer has its commercial domicile in this
22 State.
23 (e) Illinois lottery prizes. Prizes awarded under the
24 Illinois Lottery Law are allocable to this State. Payments
25 received in taxable years ending on or after December 31,
26 2013, from the assignment of a prize under Section 13.1 of the
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1 Illinois Lottery Law are allocable to this State.
2 (e-1) Wagering and gambling winnings. Payments received in
3 taxable years ending on or after December 31, 2019 of winnings
4 from pari-mutuel wagering conducted at a wagering facility
5 licensed under the Illinois Horse Racing Act of 1975 and from
6 gambling games conducted on a riverboat or in a casino or
7 organization gaming facility licensed under the Illinois
8 Gambling Act are allocable to this State.
9 (e-2) Sports wagering and winnings. Payments received in
10 taxable years ending on or after December 31, 2021 of winnings
11 from sports wagering conducted in accordance with the Sports
12 Wagering Act are allocable to this State.
13 (e-5) Unemployment benefits. Unemployment benefits paid by
14 the Illinois Department of Employment Security are allocable
15 to this State.
16 (f) Taxability in other state. For purposes of allocation
17 of income pursuant to this Section, a taxpayer is taxable in
18 another state if:
19 (1) In that state he is subject to a net income tax, a
20 franchise tax measured by net income, a franchise tax for
21 the privilege of doing business, or a corporate stock tax;
22 or
23 (2) That state has jurisdiction to subject the
24 taxpayer to a net income tax regardless of whether, in
25 fact, the state does or does not.
26 (g) Cross references.
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1 (1) For allocation of interest and dividends by
2 persons other than residents, see Section 301(c)(2).
3 (2) For allocation of nonbusiness income by residents,
4 see Section 301(a).
5 (Source: P.A. 101-31, eff. 6-28-19; 102-40, eff. 6-25-21.)
6 (35 ILCS 5/304) (from Ch. 120, par. 3-304)
7 Sec. 304. Business income of persons other than residents.
8 (a) In general. The business income of a person other than
9 a resident shall be allocated to this State if such person's
10 business income is derived solely from this State. If a person
11 other than a resident derives business income from this State
12 and one or more other states, then, for tax years ending on or
13 before December 30, 1998, and except as otherwise provided by
14 this Section, such person's business income shall be
15 apportioned to this State by multiplying the income by a
16 fraction, the numerator of which is the sum of the property
17 factor (if any), the payroll factor (if any) and 200% of the
18 sales factor (if any), and the denominator of which is 4
19 reduced by the number of factors other than the sales factor
20 which have a denominator of zero and by an additional 2 if the
21 sales factor has a denominator of zero. For tax years ending on
22 or after December 31, 1998, and except as otherwise provided
23 by this Section, persons other than residents who derive
24 business income from this State and one or more other states
25 shall compute their apportionment factor by weighting their
HB2755 Enrolled - 678 - LRB104 08253 BDA 18303 b
1 property, payroll, and sales factors as provided in subsection
2 (h) of this Section.
3 (1) Property factor.
4 (A) The property factor is a fraction, the numerator
5 of which is the average value of the person's real and
6 tangible personal property owned or rented and used in the
7 trade or business in this State during the taxable year
8 and the denominator of which is the average value of all
9 the person's real and tangible personal property owned or
10 rented and used in the trade or business during the
11 taxable year.
12 (B) Property owned by the person is valued at its
13 original cost. Property rented by the person is valued at
14 8 times the net annual rental rate. Net annual rental rate
15 is the annual rental rate paid by the person less any
16 annual rental rate received by the person from
17 sub-rentals.
18 (C) The average value of property shall be determined
19 by averaging the values at the beginning and ending of the
20 taxable year, but the Director may require the averaging
21 of monthly values during the taxable year if reasonably
22 required to reflect properly the average value of the
23 person's property.
24 (2) Payroll factor.
25 (A) The payroll factor is a fraction, the numerator of
26 which is the total amount paid in this State during the
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1 taxable year by the person for compensation, and the
2 denominator of which is the total compensation paid
3 everywhere during the taxable year.
4 (B) Compensation is paid in this State if:
5 (i) The individual's service is performed entirely
6 within this State;
7 (ii) The individual's service is performed both
8 within and without this State, but the service
9 performed without this State is incidental to the
10 individual's service performed within this State; or
11 (iii) For tax years ending prior to December 31,
12 2020, some of the service is performed within this
13 State and either the base of operations, or if there is
14 no base of operations, the place from which the
15 service is directed or controlled is within this
16 State, or the base of operations or the place from
17 which the service is directed or controlled is not in
18 any state in which some part of the service is
19 performed, but the individual's residence is in this
20 State. For tax years ending on or after December 31,
21 2020, compensation is paid in this State if some of the
22 individual's service is performed within this State,
23 the individual's service performed within this State
24 is nonincidental to the individual's service performed
25 without this State, and the individual's service is
26 performed within this State for more than 30 working
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1 days during the tax year. The amount of compensation
2 paid in this State shall include the portion of the
3 individual's total compensation for services performed
4 on behalf of his or her employer during the tax year
5 which the number of working days spent within this
6 State during the tax year bears to the total number of
7 working days spent both within and without this State
8 during the tax year. For purposes of this paragraph:
9 (a) The term "working day" means all days
10 during the tax year in which the individual
11 performs duties on behalf of his or her employer.
12 All days in which the individual performs no
13 duties on behalf of his or her employer (e.g.,
14 weekends, vacation days, sick days, and holidays)
15 are not working days.
16 (b) A working day is spent within this State
17 if:
18 (1) the individual performs service on
19 behalf of the employer and a greater amount of
20 time on that day is spent by the individual
21 performing duties on behalf of the employer
22 within this State, without regard to time
23 spent traveling, than is spent performing
24 duties on behalf of the employer without this
25 State; or
26 (2) the only service the individual
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1 performs on behalf of the employer on that day
2 is traveling to a destination within this
3 State, and the individual arrives on that day.
4 (c) Working days spent within this State do
5 not include any day in which the employee is
6 performing services in this State during a
7 disaster period solely in response to a request
8 made to his or her employer by the government of
9 this State, by any political subdivision of this
10 State, or by a person conducting business in this
11 State to perform disaster or emergency-related
12 services in this State. For purposes of this item
13 (c):
14 "Declared State disaster or emergency"
15 means a disaster or emergency event (i) for
16 which a Governor's proclamation of a state of
17 emergency has been issued or (ii) for which a
18 Presidential declaration of a federal major
19 disaster or emergency has been issued.
20 "Disaster period" means a period that
21 begins 10 days prior to the date of the
22 Governor's proclamation or the President's
23 declaration (whichever is earlier) and extends
24 for a period of 60 calendar days after the end
25 of the declared disaster or emergency period.
26 "Disaster or emergency-related services"
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1 means repairing, renovating, installing,
2 building, or rendering services or conducting
3 other business activities that relate to
4 infrastructure that has been damaged,
5 impaired, or destroyed by the declared State
6 disaster or emergency.
7 "Infrastructure" means property and
8 equipment owned or used by a public utility,
9 communications network, broadband and Internet
10 internet service provider, cable and video
11 service provider, electric or gas distribution
12 system, or water pipeline that provides
13 service to more than one customer or person,
14 including related support facilities.
15 "Infrastructure" includes, but is not limited
16 to, real and personal property such as
17 buildings, offices, power lines, cable lines,
18 poles, communications lines, pipes,
19 structures, and equipment.
20 (iv) Compensation paid to nonresident professional
21 athletes.
22 (a) General. The Illinois source income of a
23 nonresident individual who is a member of a
24 professional athletic team includes the portion of the
25 individual's total compensation for services performed
26 as a member of a professional athletic team during the
HB2755 Enrolled - 683 - LRB104 08253 BDA 18303 b
1 taxable year which the number of duty days spent
2 within this State performing services for the team in
3 any manner during the taxable year bears to the total
4 number of duty days spent both within and without this
5 State during the taxable year.
6 (b) Travel days. Travel days that do not involve
7 either a game, practice, team meeting, or other
8 similar team event are not considered duty days spent
9 in this State. However, such travel days are
10 considered in the total duty days spent both within
11 and without this State.
12 (c) Definitions. For purposes of this subpart
13 (iv):
14 (1) The term "professional athletic team"
15 includes, but is not limited to, any professional
16 baseball, basketball, football, soccer, or hockey
17 team.
18 (2) The term "member of a professional
19 athletic team" includes those employees who are
20 active players, players on the disabled list, and
21 any other persons required to travel and who
22 travel with and perform services on behalf of a
23 professional athletic team on a regular basis.
24 This includes, but is not limited to, coaches,
25 managers, and trainers.
26 (3) Except as provided in items (C) and (D) of
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1 this subpart (3), the term "duty days" means all
2 days during the taxable year from the beginning of
3 the professional athletic team's official
4 pre-season training period through the last game
5 in which the team competes or is scheduled to
6 compete. Duty days shall be counted for the year
7 in which they occur, including where a team's
8 official pre-season training period through the
9 last game in which the team competes or is
10 scheduled to compete, occurs during more than one
11 tax year.
12 (A) Duty days shall also include days on
13 which a member of a professional athletic team
14 performs service for a team on a date that
15 does not fall within the foregoing period
16 (e.g., participation in instructional leagues,
17 the "All Star Game", or promotional
18 "caravans"). Performing a service for a
19 professional athletic team includes conducting
20 training and rehabilitation activities, when
21 such activities are conducted at team
22 facilities.
23 (B) Also included in duty days are game
24 days, practice days, days spent at team
25 meetings, promotional caravans, preseason
26 training camps, and days served with the team
HB2755 Enrolled - 685 - LRB104 08253 BDA 18303 b
1 through all post-season games in which the
2 team competes or is scheduled to compete.
3 (C) Duty days for any person who joins a
4 team during the period from the beginning of
5 the professional athletic team's official
6 pre-season training period through the last
7 game in which the team competes, or is
8 scheduled to compete, shall begin on the day
9 that person joins the team. Conversely, duty
10 days for any person who leaves a team during
11 this period shall end on the day that person
12 leaves the team. Where a person switches teams
13 during a taxable year, a separate duty-day
14 calculation shall be made for the period the
15 person was with each team.
16 (D) Days for which a member of a
17 professional athletic team is not compensated
18 and is not performing services for the team in
19 any manner, including days when such member of
20 a professional athletic team has been
21 suspended without pay and prohibited from
22 performing any services for the team, shall
23 not be treated as duty days.
24 (E) Days for which a member of a
25 professional athletic team is on the disabled
26 list and does not conduct rehabilitation
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1 activities at facilities of the team, and is
2 not otherwise performing services for the team
3 in Illinois, shall not be considered duty days
4 spent in this State. All days on the disabled
5 list, however, are considered to be included
6 in total duty days spent both within and
7 without this State.
8 (4) The term "total compensation for services
9 performed as a member of a professional athletic
10 team" means the total compensation received during
11 the taxable year for services performed:
12 (A) from the beginning of the official
13 pre-season training period through the last
14 game in which the team competes or is
15 scheduled to compete during that taxable year;
16 and
17 (B) during the taxable year on a date
18 which does not fall within the foregoing
19 period (e.g., participation in instructional
20 leagues, the "All Star Game", or promotional
21 caravans).
22 This compensation shall include, but is not
23 limited to, salaries, wages, bonuses as described
24 in this subpart, and any other type of
25 compensation paid during the taxable year to a
26 member of a professional athletic team for
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1 services performed in that year. This compensation
2 does not include strike benefits, severance pay,
3 termination pay, contract or option year buy-out
4 payments, expansion or relocation payments, or any
5 other payments not related to services performed
6 for the team.
7 For purposes of this subparagraph, "bonuses"
8 included in "total compensation for services
9 performed as a member of a professional athletic
10 team" subject to the allocation described in
11 Section 302(c)(1) are: bonuses earned as a result
12 of play (i.e., performance bonuses) during the
13 season, including bonuses paid for championship,
14 playoff or "bowl" games played by a team, or for
15 selection to all-star league or other honorary
16 positions; and bonuses paid for signing a
17 contract, unless the payment of the signing bonus
18 is not conditional upon the signee playing any
19 games for the team or performing any subsequent
20 services for the team or even making the team, the
21 signing bonus is payable separately from the
22 salary and any other compensation, and the signing
23 bonus is nonrefundable.
24 (3) Sales factor.
25 (A) The sales factor is a fraction, the numerator of
26 which is the total sales of the person in this State during
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1 the taxable year, and the denominator of which is the
2 total sales of the person everywhere during the taxable
3 year.
4 (B) Sales of tangible personal property are in this
5 State if:
6 (i) The property is delivered or shipped to a
7 purchaser, other than the United States government,
8 within this State regardless of the f. o. b. point or
9 other conditions of the sale; or
10 (ii) The property is shipped from an office,
11 store, warehouse, factory or other place of storage in
12 this State and either the purchaser is the United
13 States government or the person is not taxable in the
14 state of the purchaser; provided, however, that
15 premises owned or leased by a person who has
16 independently contracted with the seller for the
17 printing of newspapers, periodicals or books shall not
18 be deemed to be an office, store, warehouse, factory
19 or other place of storage for purposes of this
20 Section. Sales of tangible personal property are not
21 in this State if the seller and purchaser would be
22 members of the same unitary business group but for the
23 fact that either the seller or purchaser is a person
24 with 80% or more of total business activity outside of
25 the United States and the property is purchased for
26 resale.
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1 (B-1) Patents, copyrights, trademarks, and similar
2 items of intangible personal property.
3 (i) Gross receipts from the licensing, sale, or
4 other disposition of a patent, copyright, trademark,
5 or similar item of intangible personal property, other
6 than gross receipts governed by paragraph (B-7) of
7 this item (3), are in this State to the extent the item
8 is utilized in this State during the year the gross
9 receipts are included in gross income.
10 (ii) Place of utilization.
11 (I) A patent is utilized in a state to the
12 extent that it is employed in production,
13 fabrication, manufacturing, or other processing in
14 the state or to the extent that a patented product
15 is produced in the state. If a patent is utilized
16 in more than one state, the extent to which it is
17 utilized in any one state shall be a fraction
18 equal to the gross receipts of the licensee or
19 purchaser from sales or leases of items produced,
20 fabricated, manufactured, or processed within that
21 state using the patent and of patented items
22 produced within that state, divided by the total
23 of such gross receipts for all states in which the
24 patent is utilized.
25 (II) A copyright is utilized in a state to the
26 extent that printing or other publication
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1 originates in the state. If a copyright is
2 utilized in more than one state, the extent to
3 which it is utilized in any one state shall be a
4 fraction equal to the gross receipts from sales or
5 licenses of materials printed or published in that
6 state divided by the total of such gross receipts
7 for all states in which the copyright is utilized.
8 (III) Trademarks and other items of intangible
9 personal property governed by this paragraph (B-1)
10 are utilized in the state in which the commercial
11 domicile of the licensee or purchaser is located.
12 (iii) If the state of utilization of an item of
13 property governed by this paragraph (B-1) cannot be
14 determined from the taxpayer's books and records or
15 from the books and records of any person related to the
16 taxpayer within the meaning of Section 267(b) of the
17 Internal Revenue Code, 26 U.S.C. 267, the gross
18 receipts attributable to that item shall be excluded
19 from both the numerator and the denominator of the
20 sales factor.
21 (B-2) Gross receipts from the license, sale, or other
22 disposition of patents, copyrights, trademarks, and
23 similar items of intangible personal property, other than
24 gross receipts governed by paragraph (B-7) of this item
25 (3), may be included in the numerator or denominator of
26 the sales factor only if gross receipts from licenses,
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1 sales, or other disposition of such items comprise more
2 than 50% of the taxpayer's total gross receipts included
3 in gross income during the tax year and during each of the
4 2 immediately preceding tax years; provided that, when a
5 taxpayer is a member of a unitary business group, such
6 determination shall be made on the basis of the gross
7 receipts of the entire unitary business group.
8 (B-5) For taxable years ending on or after December
9 31, 2008, except as provided in subsections (ii) through
10 (vii), receipts from the sale of telecommunications
11 service or mobile telecommunications service are in this
12 State if the customer's service address is in this State.
13 (i) For purposes of this subparagraph (B-5), the
14 following terms have the following meanings:
15 "Ancillary services" means services that are
16 associated with or incidental to the provision of
17 "telecommunications services", including, but not
18 limited to, "detailed telecommunications billing",
19 "directory assistance", "vertical service", and "voice
20 mail services".
21 "Air-to-Ground Radiotelephone service" means a
22 radio service, as that term is defined in 47 CFR 22.99,
23 in which common carriers are authorized to offer and
24 provide radio telecommunications service for hire to
25 subscribers in aircraft.
26 "Call-by-call Basis" means any method of charging
HB2755 Enrolled - 692 - LRB104 08253 BDA 18303 b
1 for telecommunications services where the price is
2 measured by individual calls.
3 "Communications Channel" means a physical or
4 virtual path of communications over which signals are
5 transmitted between or among customer channel
6 termination points.
7 "Conference bridging service" means an "ancillary
8 service" that links two or more participants of an
9 audio or video conference call and may include the
10 provision of a telephone number. "Conference bridging
11 service" does not include the "telecommunications
12 services" used to reach the conference bridge.
13 "Customer Channel Termination Point" means the
14 location where the customer either inputs or receives
15 the communications.
16 "Detailed telecommunications billing service"
17 means an "ancillary service" of separately stating
18 information pertaining to individual calls on a
19 customer's billing statement.
20 "Directory assistance" means an "ancillary
21 service" of providing telephone number information,
22 and/or address information.
23 "Home service provider" means the facilities based
24 carrier or reseller with which the customer contracts
25 for the provision of mobile telecommunications
26 services.
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1 "Mobile telecommunications service" means
2 commercial mobile radio service, as defined in Section
3 20.3 of Title 47 of the Code of Federal Regulations as
4 in effect on June 1, 1999.
5 "Place of primary use" means the street address
6 representative of where the customer's use of the
7 telecommunications service primarily occurs, which
8 must be the residential street address or the primary
9 business street address of the customer. In the case
10 of mobile telecommunications services, "place of
11 primary use" must be within the licensed service area
12 of the home service provider.
13 "Post-paid telecommunication service" means the
14 telecommunications service obtained by making a
15 payment on a call-by-call basis either through the use
16 of a credit card or payment mechanism such as a bank
17 card, travel card, credit card, or debit card, or by
18 charge made to a telephone number which is not
19 associated with the origination or termination of the
20 telecommunications service. A post-paid calling
21 service includes telecommunications service, except a
22 prepaid wireless calling service, that would be a
23 prepaid calling service except it is not exclusively a
24 telecommunication service.
25 "Prepaid telecommunication service" means the
26 right to access exclusively telecommunications
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1 services, which must be paid for in advance and which
2 enables the origination of calls using an access
3 number or authorization code, whether manually or
4 electronically dialed, and that is sold in
5 predetermined units or dollars of which the number
6 declines with use in a known amount.
7 "Prepaid Mobile telecommunication service" means a
8 telecommunications service that provides the right to
9 utilize mobile wireless service as well as other
10 non-telecommunication services, including, but not
11 limited to, ancillary services, which must be paid for
12 in advance that is sold in predetermined units or
13 dollars of which the number declines with use in a
14 known amount.
15 "Private communication service" means a
16 telecommunication service that entitles the customer
17 to exclusive or priority use of a communications
18 channel or group of channels between or among
19 termination points, regardless of the manner in which
20 such channel or channels are connected, and includes
21 switching capacity, extension lines, stations, and any
22 other associated services that are provided in
23 connection with the use of such channel or channels.
24 "Service address" means:
25 (a) The location of the telecommunications
26 equipment to which a customer's call is charged
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1 and from which the call originates or terminates,
2 regardless of where the call is billed or paid;
3 (b) If the location in line (a) is not known,
4 service address means the origination point of the
5 signal of the telecommunications services first
6 identified by either the seller's
7 telecommunications system or in information
8 received by the seller from its service provider
9 where the system used to transport such signals is
10 not that of the seller; and
11 (c) If the locations in line (a) and line (b)
12 are not known, the service address means the
13 location of the customer's place of primary use.
14 "Telecommunications service" means the electronic
15 transmission, conveyance, or routing of voice, data,
16 audio, video, or any other information or signals to a
17 point, or between or among points. The term
18 "telecommunications service" includes such
19 transmission, conveyance, or routing in which computer
20 processing applications are used to act on the form,
21 code or protocol of the content for purposes of
22 transmission, conveyance or routing without regard to
23 whether such service is referred to as voice over
24 Internet protocol services or is classified by the
25 Federal Communications Commission as enhanced or value
26 added. "Telecommunications service" does not include:
HB2755 Enrolled - 696 - LRB104 08253 BDA 18303 b
1 (a) Data processing and information services
2 that allow data to be generated, acquired, stored,
3 processed, or retrieved and delivered by an
4 electronic transmission to a purchaser when such
5 purchaser's primary purpose for the underlying
6 transaction is the processed data or information;
7 (b) Installation or maintenance of wiring or
8 equipment on a customer's premises;
9 (c) Tangible personal property;
10 (d) Advertising, including, but not limited
11 to, directory advertising;
12 (e) Billing and collection services provided
13 to third parties;
14 (f) Internet access service;
15 (g) Radio and television audio and video
16 programming services, regardless of the medium,
17 including the furnishing of transmission,
18 conveyance and routing of such services by the
19 programming service provider. Radio and television
20 audio and video programming services shall
21 include, but not be limited to, cable service as
22 defined in 47 USC 522(6) and audio and video
23 programming services delivered by commercial
24 mobile radio service providers, as defined in 47
25 CFR 20.3;
26 (h) "Ancillary services"; or
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1 (i) Digital products "delivered
2 electronically", including, but not limited to,
3 software, music, video, reading materials or
4 ringtones ring tones.
5 "Vertical service" means an "ancillary service"
6 that is offered in connection with one or more
7 "telecommunications services", which offers advanced
8 calling features that allow customers to identify
9 callers and to manage multiple calls and call
10 connections, including "conference bridging services".
11 "Voice mail service" means an "ancillary service"
12 that enables the customer to store, send or receive
13 recorded messages. "Voice mail service" does not
14 include any "vertical services" that the customer may
15 be required to have in order to utilize the "voice mail
16 service".
17 (ii) Receipts from the sale of telecommunications
18 service sold on an individual call-by-call basis are
19 in this State if either of the following applies:
20 (a) The call both originates and terminates in
21 this State.
22 (b) The call either originates or terminates
23 in this State and the service address is located
24 in this State.
25 (iii) Receipts from the sale of postpaid
26 telecommunications service at retail are in this State
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1 if the origination point of the telecommunication
2 signal, as first identified by the service provider's
3 telecommunication system or as identified by
4 information received by the seller from its service
5 provider if the system used to transport
6 telecommunication signals is not the seller's, is
7 located in this State.
8 (iv) Receipts from the sale of prepaid
9 telecommunications service or prepaid mobile
10 telecommunications service at retail are in this State
11 if the purchaser obtains the prepaid card or similar
12 means of conveyance at a location in this State.
13 Receipts from recharging a prepaid telecommunications
14 service or mobile telecommunications service is in
15 this State if the purchaser's billing information
16 indicates a location in this State.
17 (v) Receipts from the sale of private
18 communication services are in this State as follows:
19 (a) 100% of receipts from charges imposed at
20 each channel termination point in this State.
21 (b) 100% of receipts from charges for the
22 total channel mileage between each channel
23 termination point in this State.
24 (c) 50% of the total receipts from charges for
25 service segments when those segments are between 2
26 customer channel termination points, 1 of which is
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1 located in this State and the other is located
2 outside of this State, which segments are
3 separately charged.
4 (d) The receipts from charges for service
5 segments with a channel termination point located
6 in this State and in two or more other states, and
7 which segments are not separately billed, are in
8 this State based on a percentage determined by
9 dividing the number of customer channel
10 termination points in this State by the total
11 number of customer channel termination points.
12 (vi) Receipts from charges for ancillary services
13 for telecommunications service sold to customers at
14 retail are in this State if the customer's primary
15 place of use of telecommunications services associated
16 with those ancillary services is in this State. If the
17 seller of those ancillary services cannot determine
18 where the associated telecommunications are located,
19 then the ancillary services shall be based on the
20 location of the purchaser.
21 (vii) Receipts to access a carrier's network or
22 from the sale of telecommunication services or
23 ancillary services for resale are in this State as
24 follows:
25 (a) 100% of the receipts from access fees
26 attributable to intrastate telecommunications
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1 service that both originates and terminates in
2 this State.
3 (b) 50% of the receipts from access fees
4 attributable to interstate telecommunications
5 service if the interstate call either originates
6 or terminates in this State.
7 (c) 100% of the receipts from interstate end
8 user access line charges, if the customer's
9 service address is in this State. As used in this
10 subdivision, "interstate end user access line
11 charges" includes, but is not limited to, the
12 surcharge approved by the federal communications
13 commission and levied pursuant to 47 CFR 69.
14 (d) Gross receipts from sales of
15 telecommunication services or from ancillary
16 services for telecommunications services sold to
17 other telecommunication service providers for
18 resale shall be sourced to this State using the
19 apportionment concepts used for non-resale
20 receipts of telecommunications services if the
21 information is readily available to make that
22 determination. If the information is not readily
23 available, then the taxpayer may use any other
24 reasonable and consistent method.
25 (B-7) For taxable years ending on or after December
26 31, 2008, receipts from the sale of broadcasting services
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1 are in this State if the broadcasting services are
2 received in this State. For purposes of this paragraph
3 (B-7), the following terms have the following meanings:
4 "Advertising revenue" means consideration received
5 by the taxpayer in exchange for broadcasting services
6 or allowing the broadcasting of commercials or
7 announcements in connection with the broadcasting of
8 film or radio programming, from sponsorships of the
9 programming, or from product placements in the
10 programming.
11 "Audience factor" means the ratio that the
12 audience or subscribers located in this State of a
13 station, a network, or a cable system bears to the
14 total audience or total subscribers for that station,
15 network, or cable system. The audience factor for film
16 or radio programming shall be determined by reference
17 to the books and records of the taxpayer or by
18 reference to published rating statistics provided the
19 method used by the taxpayer is consistently used from
20 year to year for this purpose and fairly represents
21 the taxpayer's activity in this State.
22 "Broadcast" or "broadcasting" or "broadcasting
23 services" means the transmission or provision of film
24 or radio programming, whether through the public
25 airwaves, by cable, by direct or indirect satellite
26 transmission, or by any other means of communication,
HB2755 Enrolled - 702 - LRB104 08253 BDA 18303 b
1 either through a station, a network, or a cable
2 system.
3 "Film" or "film programming" means the broadcast
4 on television of any and all performances, events, or
5 productions, including, but not limited to, news,
6 sporting events, plays, stories, or other literary,
7 commercial, educational, or artistic works, either
8 live or through the use of video tape, disc, or any
9 other type of format or medium. Each episode of a
10 series of films produced for television shall
11 constitute a separate "film" notwithstanding that the
12 series relates to the same principal subject and is
13 produced during one or more tax periods.
14 "Radio" or "radio programming" means the broadcast
15 on radio of any and all performances, events, or
16 productions, including, but not limited to, news,
17 sporting events, plays, stories, or other literary,
18 commercial, educational, or artistic works, either
19 live or through the use of an audio tape, disc, or any
20 other format or medium. Each episode in a series of
21 radio programming produced for radio broadcast shall
22 constitute a separate "radio programming"
23 notwithstanding that the series relates to the same
24 principal subject and is produced during one or more
25 tax periods.
26 (i) In the case of advertising revenue from
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1 broadcasting, the customer is the advertiser and
2 the service is received in this State if the
3 commercial domicile of the advertiser is in this
4 State.
5 (ii) In the case where film or radio
6 programming is broadcast by a station, a network,
7 or a cable system for a fee or other remuneration
8 received from the recipient of the broadcast, the
9 portion of the service that is received in this
10 State is measured by the portion of the recipients
11 of the broadcast located in this State.
12 Accordingly, the fee or other remuneration for
13 such service that is included in the Illinois
14 numerator of the sales factor is the total of
15 those fees or other remuneration received from
16 recipients in Illinois. For purposes of this
17 paragraph, a taxpayer may determine the location
18 of the recipients of its broadcast using the
19 address of the recipient shown in its contracts
20 with the recipient or using the billing address of
21 the recipient in the taxpayer's records.
22 (iii) In the case where film or radio
23 programming is broadcast by a station, a network,
24 or a cable system for a fee or other remuneration
25 from the person providing the programming, the
26 portion of the broadcast service that is received
HB2755 Enrolled - 704 - LRB104 08253 BDA 18303 b
1 by such station, network, or cable system in this
2 State is measured by the portion of recipients of
3 the broadcast located in this State. Accordingly,
4 the amount of revenue related to such an
5 arrangement that is included in the Illinois
6 numerator of the sales factor is the total fee or
7 other total remuneration from the person providing
8 the programming related to that broadcast
9 multiplied by the Illinois audience factor for
10 that broadcast.
11 (iv) In the case where film or radio
12 programming is provided by a taxpayer that is a
13 network or station to a customer for broadcast in
14 exchange for a fee or other remuneration from that
15 customer the broadcasting service is received at
16 the location of the office of the customer from
17 which the services were ordered in the regular
18 course of the customer's trade or business.
19 Accordingly, in such a case the revenue derived by
20 the taxpayer that is included in the taxpayer's
21 Illinois numerator of the sales factor is the
22 revenue from such customers who receive the
23 broadcasting service in Illinois.
24 (v) In the case where film or radio
25 programming is provided by a taxpayer that is not
26 a network or station to another person for
HB2755 Enrolled - 705 - LRB104 08253 BDA 18303 b
1 broadcasting in exchange for a fee or other
2 remuneration from that person, the broadcasting
3 service is received at the location of the office
4 of the customer from which the services were
5 ordered in the regular course of the customer's
6 trade or business. Accordingly, in such a case the
7 revenue derived by the taxpayer that is included
8 in the taxpayer's Illinois numerator of the sales
9 factor is the revenue from such customers who
10 receive the broadcasting service in Illinois.
11 (B-8) Gross receipts from winnings under the Illinois
12 Lottery Law from the assignment of a prize under Section
13 13.1 of the Illinois Lottery Law are received in this
14 State. This paragraph (B-8) applies only to taxable years
15 ending on or after December 31, 2013.
16 (B-9) For taxable years ending on or after December
17 31, 2019, gross receipts from winnings from pari-mutuel
18 wagering conducted at a wagering facility licensed under
19 the Illinois Horse Racing Act of 1975 or from winnings
20 from gambling games conducted on a riverboat or in a
21 casino or organization gaming facility licensed under the
22 Illinois Gambling Act are in this State.
23 (B-10) For taxable years ending on or after December
24 31, 2021, gross receipts from winnings from sports
25 wagering conducted in accordance with the Sports Wagering
26 Act are in this State.
HB2755 Enrolled - 706 - LRB104 08253 BDA 18303 b
1 (C) For taxable years ending before December 31, 2008,
2 sales, other than sales governed by paragraphs (B), (B-1),
3 (B-2), and (B-8) are in this State if:
4 (i) The income-producing activity is performed in
5 this State; or
6 (ii) The income-producing activity is performed
7 both within and without this State and a greater
8 proportion of the income-producing activity is
9 performed within this State than without this State,
10 based on performance costs.
11 (C-5) For taxable years ending on or after December
12 31, 2008, sales, other than sales governed by paragraphs
13 (B), (B-1), (B-2), (B-5), and (B-7), are in this State if
14 any of the following criteria are met:
15 (i) Sales from the sale or lease of real property
16 are in this State if the property is located in this
17 State.
18 (ii) Sales from the lease or rental of tangible
19 personal property are in this State if the property is
20 located in this State during the rental period. Sales
21 from the lease or rental of tangible personal property
22 that is characteristically moving property, including,
23 but not limited to, motor vehicles, rolling stock,
24 aircraft, vessels, or mobile equipment are in this
25 State to the extent that the property is used in this
26 State.
HB2755 Enrolled - 707 - LRB104 08253 BDA 18303 b
1 (iii) In the case of interest, net gains (but not
2 less than zero) and other items of income from
3 intangible personal property, the sale is in this
4 State if:
5 (a) in the case of a taxpayer who is a dealer
6 in the item of intangible personal property within
7 the meaning of Section 475 of the Internal Revenue
8 Code, the income or gain is received from a
9 customer in this State. For purposes of this
10 subparagraph, a customer is in this State if the
11 customer is an individual, trust or estate who is
12 a resident of this State and, for all other
13 customers, if the customer's commercial domicile
14 is in this State. Unless the dealer has actual
15 knowledge of the residence or commercial domicile
16 of a customer during a taxable year, the customer
17 shall be deemed to be a customer in this State if
18 the billing address of the customer, as shown in
19 the records of the dealer, is in this State; or
20 (a-5) in the case of the sale or exchange of
21 shares in a Subchapter S corporation or an
22 interest in a partnership, other than an
23 investment partnership as defined in paragraph
24 (11.5) of subsection (a) of Section 1501, the
25 Subchapter S corporation or partnership was
26 taxable in this State; for purposes of this
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1 subparagraph, the amount attributable to this
2 State shall be determined in proportion to the
3 average of the pass-through entity's Illinois
4 apportionment factor computed under this Section
5 in the year of the sale or exchange and the 2 tax
6 years immediately preceding the year of the sale
7 or exchange; if the pass-through entity was not in
8 existence during both of the preceding 2 years,
9 then only the years in which the pass-through
10 entity was in existence shall be considered when
11 computing the average; or
12 (b) in all other cases, if the
13 income-producing activity of the taxpayer is
14 performed in this State or, if the
15 income-producing activity of the taxpayer is
16 performed both within and without this State, if a
17 greater proportion of the income-producing
18 activity of the taxpayer is performed within this
19 State than in any other state, based on
20 performance costs.
21 (iv) Sales of services are in this State if the
22 services are received in this State. For the purposes
23 of this section, gross receipts from the performance
24 of services provided to a corporation, partnership, or
25 trust may only be attributed to a state where that
26 corporation, partnership, or trust has a fixed place
HB2755 Enrolled - 709 - LRB104 08253 BDA 18303 b
1 of business. If the state where the services are
2 received is not readily determinable or is a state
3 where the corporation, partnership, or trust receiving
4 the service does not have a fixed place of business,
5 the services shall be deemed to be received at the
6 location of the office of the customer from which the
7 services were ordered in the regular course of the
8 customer's trade or business. If the ordering office
9 cannot be determined, the services shall be deemed to
10 be received at the office of the customer to which the
11 services are billed. If the taxpayer is not taxable in
12 the state in which the services are received, the sale
13 must be excluded from both the numerator and the
14 denominator of the sales factor. The Department shall
15 adopt rules prescribing where specific types of
16 service are received, including, but not limited to,
17 publishing, and utility service.
18 (D) For taxable years ending on or after December 31,
19 1995, the following items of income shall not be included
20 in the numerator or denominator of the sales factor:
21 dividends; amounts included under Section 78 of the
22 Internal Revenue Code; and Subpart F income as defined in
23 Section 952 of the Internal Revenue Code. No inference
24 shall be drawn from the enactment of this paragraph (D) in
25 construing this Section for taxable years ending before
26 December 31, 1995.
HB2755 Enrolled - 710 - LRB104 08253 BDA 18303 b
1 (E) Paragraphs (B-1) and (B-2) shall apply to tax
2 years ending on or after December 31, 1999, provided that
3 a taxpayer may elect to apply the provisions of these
4 paragraphs to prior tax years. Such election shall be made
5 in the form and manner prescribed by the Department, shall
6 be irrevocable, and shall apply to all tax years; provided
7 that, if a taxpayer's Illinois income tax liability for
8 any tax year, as assessed under Section 903 prior to
9 January 1, 1999, was computed in a manner contrary to the
10 provisions of paragraphs (B-1) or (B-2), no refund shall
11 be payable to the taxpayer for that tax year to the extent
12 such refund is the result of applying the provisions of
13 paragraph (B-1) or (B-2) retroactively. In the case of a
14 unitary business group, such election shall apply to all
15 members of such group for every tax year such group is in
16 existence, but shall not apply to any taxpayer for any
17 period during which that taxpayer is not a member of such
18 group.
19 (b) Insurance companies.
20 (1) In general. Except as otherwise provided by
21 paragraph (2), business income of an insurance company for
22 a taxable year shall be apportioned to this State by
23 multiplying such income by a fraction, the numerator of
24 which is the direct premiums written for insurance upon
25 property or risk in this State, and the denominator of
26 which is the direct premiums written for insurance upon
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1 property or risk everywhere. For purposes of this
2 subsection, the term "direct premiums written" means the
3 total amount of direct premiums written, assessments and
4 annuity considerations as reported for the taxable year on
5 the annual statement filed by the company with the
6 Illinois Director of Insurance in the form approved by the
7 National Convention of Insurance Commissioners or such
8 other form as may be prescribed in lieu thereof.
9 (2) Reinsurance. If the principal source of premiums
10 written by an insurance company consists of premiums for
11 reinsurance accepted by it, the business income of such
12 company shall be apportioned to this State by multiplying
13 such income by a fraction, the numerator of which is the
14 sum of (i) direct premiums written for insurance upon
15 property or risk in this State, plus (ii) premiums written
16 for reinsurance accepted in respect of property or risk in
17 this State, and the denominator of which is the sum of
18 (iii) direct premiums written for insurance upon property
19 or risk everywhere, plus (iv) premiums written for
20 reinsurance accepted in respect of property or risk
21 everywhere. For purposes of this paragraph, premiums
22 written for reinsurance accepted in respect of property or
23 risk in this State, whether or not otherwise determinable,
24 may, at the election of the company, be determined on the
25 basis of the proportion which premiums written for
26 reinsurance accepted from companies commercially domiciled
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1 in Illinois bears to premiums written for reinsurance
2 accepted from all sources, or, alternatively, in the
3 proportion which the sum of the direct premiums written
4 for insurance upon property or risk in this State by each
5 ceding company from which reinsurance is accepted bears to
6 the sum of the total direct premiums written by each such
7 ceding company for the taxable year. The election made by
8 a company under this paragraph for its first taxable year
9 ending on or after December 31, 2011, shall be binding for
10 that company for that taxable year and for all subsequent
11 taxable years, and may be altered only with the written
12 permission of the Department, which shall not be
13 unreasonably withheld.
14 (c) Financial organizations.
15 (1) In general. For taxable years ending before
16 December 31, 2008, business income of a financial
17 organization shall be apportioned to this State by
18 multiplying such income by a fraction, the numerator of
19 which is its business income from sources within this
20 State, and the denominator of which is its business income
21 from all sources. For the purposes of this subsection, the
22 business income of a financial organization from sources
23 within this State is the sum of the amounts referred to in
24 subparagraphs (A) through (E) following, but excluding the
25 adjusted income of an international banking facility as
26 determined in paragraph (2):
HB2755 Enrolled - 713 - LRB104 08253 BDA 18303 b
1 (A) Fees, commissions or other compensation for
2 financial services rendered within this State;
3 (B) Gross profits from trading in stocks, bonds or
4 other securities managed within this State;
5 (C) Dividends, and interest from Illinois
6 customers, which are received within this State;
7 (D) Interest charged to customers at places of
8 business maintained within this State for carrying
9 debit balances of margin accounts, without deduction
10 of any costs incurred in carrying such accounts; and
11 (E) Any other gross income resulting from the
12 operation as a financial organization within this
13 State.
14 In computing the amounts referred to in paragraphs (A)
15 through (E) of this subsection, any amount received by a
16 member of an affiliated group (determined under Section
17 1504(a) of the Internal Revenue Code but without reference
18 to whether any such corporation is an "includible
19 corporation" under Section 1504(b) of the Internal Revenue
20 Code) from another member of such group shall be included
21 only to the extent such amount exceeds expenses of the
22 recipient directly related thereto.
23 (2) International Banking Facility. For taxable years
24 ending before December 31, 2008:
25 (A) Adjusted Income. The adjusted income of an
26 international banking facility is its income reduced
HB2755 Enrolled - 714 - LRB104 08253 BDA 18303 b
1 by the amount of the floor amount.
2 (B) Floor Amount. The floor amount shall be the
3 amount, if any, determined by multiplying the income
4 of the international banking facility by a fraction,
5 not greater than one, which is determined as follows:
6 (i) The numerator shall be:
7 The average aggregate, determined on a
8 quarterly basis, of the financial organization's
9 loans to banks in foreign countries, to foreign
10 domiciled borrowers (except where secured
11 primarily by real estate) and to foreign
12 governments and other foreign official
13 institutions, as reported for its branches,
14 agencies and offices within the state on its
15 "Consolidated Report of Condition", Schedule A,
16 Lines 2.c., 5.b., and 7.a., which was filed with
17 the Federal Deposit Insurance Corporation and
18 other regulatory authorities, for the year 1980,
19 minus
20 The average aggregate, determined on a
21 quarterly basis, of such loans (other than loans
22 of an international banking facility), as reported
23 by the financial institution for its branches,
24 agencies and offices within the state, on the
25 corresponding Schedule and lines of the
26 Consolidated Report of Condition for the current
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1 taxable year, provided, however, that in no case
2 shall the amount determined in this clause (the
3 subtrahend) exceed the amount determined in the
4 preceding clause (the minuend); and
5 (ii) the denominator shall be the average
6 aggregate, determined on a quarterly basis, of the
7 international banking facility's loans to banks in
8 foreign countries, to foreign domiciled borrowers
9 (except where secured primarily by real estate)
10 and to foreign governments and other foreign
11 official institutions, which were recorded in its
12 financial accounts for the current taxable year.
13 (C) Change to Consolidated Report of Condition and
14 in Qualification. In the event the Consolidated Report
15 of Condition which is filed with the Federal Deposit
16 Insurance Corporation and other regulatory authorities
17 is altered so that the information required for
18 determining the floor amount is not found on Schedule
19 A, lines 2.c., 5.b. and 7.a., the financial
20 institution shall notify the Department and the
21 Department may, by regulations or otherwise, prescribe
22 or authorize the use of an alternative source for such
23 information. The financial institution shall also
24 notify the Department should its international banking
25 facility fail to qualify as such, in whole or in part,
26 or should there be any amendment or change to the
HB2755 Enrolled - 716 - LRB104 08253 BDA 18303 b
1 Consolidated Report of Condition, as originally filed,
2 to the extent such amendment or change alters the
3 information used in determining the floor amount.
4 (3) For taxable years ending on or after December 31,
5 2008, the business income of a financial organization
6 shall be apportioned to this State by multiplying such
7 income by a fraction, the numerator of which is its gross
8 receipts from sources in this State or otherwise
9 attributable to this State's marketplace and the
10 denominator of which is its gross receipts everywhere
11 during the taxable year. "Gross receipts" for purposes of
12 this subparagraph (3) means gross income, including net
13 taxable gain on disposition of assets, including
14 securities and money market instruments, when derived from
15 transactions and activities in the regular course of the
16 financial organization's trade or business. The following
17 examples are illustrative:
18 (i) Receipts from the lease or rental of real or
19 tangible personal property are in this State if the
20 property is located in this State during the rental
21 period. Receipts from the lease or rental of tangible
22 personal property that is characteristically moving
23 property, including, but not limited to, motor
24 vehicles, rolling stock, aircraft, vessels, or mobile
25 equipment are from sources in this State to the extent
26 that the property is used in this State.
HB2755 Enrolled - 717 - LRB104 08253 BDA 18303 b
1 (ii) Interest income, commissions, fees, gains on
2 disposition, and other receipts from assets in the
3 nature of loans that are secured primarily by real
4 estate or tangible personal property are from sources
5 in this State if the security is located in this State.
6 (iii) Interest income, commissions, fees, gains on
7 disposition, and other receipts from consumer loans
8 that are not secured by real or tangible personal
9 property are from sources in this State if the debtor
10 is a resident of this State.
11 (iv) Interest income, commissions, fees, gains on
12 disposition, and other receipts from commercial loans
13 and installment obligations that are not secured by
14 real or tangible personal property are from sources in
15 this State if the proceeds of the loan are to be
16 applied in this State. If it cannot be determined
17 where the funds are to be applied, the income and
18 receipts are from sources in this State if the office
19 of the borrower from which the loan was negotiated in
20 the regular course of business is located in this
21 State. If the location of this office cannot be
22 determined, the income and receipts shall be excluded
23 from the numerator and denominator of the sales
24 factor.
25 (v) Interest income, fees, gains on disposition,
26 service charges, merchant discount income, and other
HB2755 Enrolled - 718 - LRB104 08253 BDA 18303 b
1 receipts from credit card receivables are from sources
2 in this State if the card charges are regularly billed
3 to a customer in this State.
4 (vi) Receipts from the performance of services,
5 including, but not limited to, fiduciary, advisory,
6 and brokerage services, are in this State if the
7 services are received in this State within the meaning
8 of subparagraph (a)(3)(C-5)(iv) of this Section.
9 (vii) Receipts from the issuance of travelers
10 checks and money orders are from sources in this State
11 if the checks and money orders are issued from a
12 location within this State.
13 (viii) For tax years ending before December 31,
14 2024, receipts from investment assets and activities
15 and trading assets and activities are included in the
16 receipts factor as follows:
17 (1) Interest, dividends, net gains (but not
18 less than zero) and other income from investment
19 assets and activities from trading assets and
20 activities shall be included in the receipts
21 factor. Investment assets and activities and
22 trading assets and activities include, but are not
23 limited to: investment securities; trading account
24 assets; federal funds; securities purchased and
25 sold under agreements to resell or repurchase;
26 options; futures contracts; forward contracts;
HB2755 Enrolled - 719 - LRB104 08253 BDA 18303 b
1 notional principal contracts such as swaps;
2 equities; and foreign currency transactions. With
3 respect to the investment and trading assets and
4 activities described in subparagraphs (A) and (B)
5 of this paragraph, the receipts factor shall
6 include the amounts described in such
7 subparagraphs.
8 (A) The receipts factor shall include the
9 amount by which interest from federal funds
10 sold and securities purchased under resale
11 agreements exceeds interest expense on federal
12 funds purchased and securities sold under
13 repurchase agreements.
14 (B) The receipts factor shall include the
15 amount by which interest, dividends, gains and
16 other income from trading assets and
17 activities, including, but not limited to,
18 assets and activities in the matched book, in
19 the arbitrage book, and foreign currency
20 transactions, exceed amounts paid in lieu of
21 interest, amounts paid in lieu of dividends,
22 and losses from such assets and activities.
23 (2) The numerator of the receipts factor
24 includes interest, dividends, net gains (but not
25 less than zero), and other income from investment
26 assets and activities and from trading assets and
HB2755 Enrolled - 720 - LRB104 08253 BDA 18303 b
1 activities described in paragraph (1) of this
2 subsection that are attributable to this State.
3 (A) The amount of interest, dividends, net
4 gains (but not less than zero), and other
5 income from investment assets and activities
6 in the investment account to be attributed to
7 this State and included in the numerator is
8 determined by multiplying all such income from
9 such assets and activities by a fraction, the
10 numerator of which is the gross income from
11 such assets and activities which are properly
12 assigned to a fixed place of business of the
13 taxpayer within this State and the denominator
14 of which is the gross income from all such
15 assets and activities.
16 (B) The amount of interest from federal
17 funds sold and purchased and from securities
18 purchased under resale agreements and
19 securities sold under repurchase agreements
20 attributable to this State and included in the
21 numerator is determined by multiplying the
22 amount described in subparagraph (A) of
23 paragraph (1) of this subsection from such
24 funds and such securities by a fraction, the
25 numerator of which is the gross income from
26 such funds and such securities which are
HB2755 Enrolled - 721 - LRB104 08253 BDA 18303 b
1 properly assigned to a fixed place of business
2 of the taxpayer within this State and the
3 denominator of which is the gross income from
4 all such funds and such securities.
5 (C) The amount of interest, dividends,
6 gains, and other income from trading assets
7 and activities, including, but not limited to,
8 assets and activities in the matched book, in
9 the arbitrage book and foreign currency
10 transactions (but excluding amounts described
11 in subparagraphs (A) or (B) of this
12 paragraph), attributable to this State and
13 included in the numerator is determined by
14 multiplying the amount described in
15 subparagraph (B) of paragraph (1) of this
16 subsection by a fraction, the numerator of
17 which is the gross income from such trading
18 assets and activities which are properly
19 assigned to a fixed place of business of the
20 taxpayer within this State and the denominator
21 of which is the gross income from all such
22 assets and activities.
23 (D) Properly assigned, for purposes of
24 this paragraph (2) of this subsection, means
25 the investment or trading asset or activity is
26 assigned to the fixed place of business with
HB2755 Enrolled - 722 - LRB104 08253 BDA 18303 b
1 which it has a preponderance of substantive
2 contacts. An investment or trading asset or
3 activity assigned by the taxpayer to a fixed
4 place of business without the State shall be
5 presumed to have been properly assigned if:
6 (i) the taxpayer has assigned, in the
7 regular course of its business, such asset
8 or activity on its records to a fixed
9 place of business consistent with federal
10 or state regulatory requirements;
11 (ii) such assignment on its records is
12 based upon substantive contacts of the
13 asset or activity to such fixed place of
14 business; and
15 (iii) the taxpayer uses such records
16 reflecting assignment of such assets or
17 activities for the filing of all state and
18 local tax returns for which an assignment
19 of such assets or activities to a fixed
20 place of business is required.
21 (E) The presumption of proper assignment
22 of an investment or trading asset or activity
23 provided in subparagraph (D) of paragraph (2)
24 of this subsection may be rebutted upon a
25 showing by the Department, supported by a
26 preponderance of the evidence, that the
HB2755 Enrolled - 723 - LRB104 08253 BDA 18303 b
1 preponderance of substantive contacts
2 regarding such asset or activity did not occur
3 at the fixed place of business to which it was
4 assigned on the taxpayer's records. If the
5 fixed place of business that has a
6 preponderance of substantive contacts cannot
7 be determined for an investment or trading
8 asset or activity to which the presumption in
9 subparagraph (D) of paragraph (2) of this
10 subsection does not apply or with respect to
11 which that presumption has been rebutted, that
12 asset or activity is properly assigned to the
13 state in which the taxpayer's commercial
14 domicile is located. For purposes of this
15 subparagraph (E), it shall be presumed,
16 subject to rebuttal, that taxpayer's
17 commercial domicile is in the state of the
18 United States or the District of Columbia to
19 which the greatest number of employees are
20 regularly connected with the management of the
21 investment or trading income or out of which
22 they are working, irrespective of where the
23 services of such employees are performed, as
24 of the last day of the taxable year.
25 (ix) For tax years ending on or after December 31,
26 2024, receipts from investment assets and activities
HB2755 Enrolled - 724 - LRB104 08253 BDA 18303 b
1 and trading assets and activities are included in the
2 receipts factor as follows:
3 (1) Interest, dividends, net gains (but not
4 less than zero), and other income from investment
5 assets and activities from trading assets and
6 activities shall be included in the receipts
7 factor. Investment assets and activities and
8 trading assets and activities include, but are not
9 limited to the following: investment securities;
10 trading account assets; federal funds; securities
11 purchased and sold under agreements to resell or
12 repurchase; options; futures contracts; forward
13 contracts; notional principal contracts, such as
14 swaps; equities; and foreign currency
15 transactions. With respect to the investment and
16 trading assets and activities described in
17 subparagraphs (A) and (B) of this paragraph, the
18 receipts factor shall include the amounts
19 described in those subparagraphs.
20 (A) The receipts factor shall include the
21 amount by which interest from federal funds
22 sold and securities purchased under resale
23 agreements exceeds interest expense on federal
24 funds purchased and securities sold under
25 repurchase agreements.
26 (B) The receipts factor shall include the
HB2755 Enrolled - 725 - LRB104 08253 BDA 18303 b
1 amount by which interest, dividends, gains and
2 other income from trading assets and
3 activities, including, but not limited to,
4 assets and activities in the matched book, in
5 the arbitrage book, and foreign currency
6 transactions, exceed amounts paid in lieu of
7 interest, amounts paid in lieu of dividends,
8 and losses from such assets and activities.
9 (2) The numerator of the receipts factor
10 includes interest, dividends, net gains (but not
11 less than zero), and other income from investment
12 assets and activities and from trading assets and
13 activities described in paragraph (1) of this
14 subsection that are attributable to this State.
15 (A) The amount of interest, dividends, net
16 gains (but not less than zero), and other
17 income from investment assets and activities
18 in the investment account to be attributed to
19 this State and included in the numerator is
20 determined by multiplying all of the income
21 from those assets and activities by a
22 fraction, the numerator of which is the total
23 receipts included in the numerator pursuant to
24 items (i) through (vii) of this subparagraph
25 (3) and the denominator of which is all total
26 receipts included in the denominator, other
HB2755 Enrolled - 726 - LRB104 08253 BDA 18303 b
1 than interest, dividends, net gains (but not
2 less than zero), and other income from
3 investment assets and activities and trading
4 assets and activities.
5 (B) The amount of interest from federal
6 funds sold and purchased and from securities
7 purchased under resale agreements and
8 securities sold under repurchase agreements
9 attributable to this State and included in the
10 numerator is determined by multiplying the
11 amount described in subparagraph (A) of
12 paragraph (1) of this subsection from such
13 funds and such securities by a fraction, the
14 numerator of which is the total receipts
15 included in the numerator pursuant to items
16 (i) through (vii) of this subparagraph (3) and
17 the denominator of which is all total receipts
18 included in the denominator, other than
19 interest, dividends, net gains (but not less
20 than zero), and other income from investment
21 assets and activities and trading assets and
22 activities.
23 (C) The amount of interest, dividends,
24 gains, and other income from trading assets
25 and activities, including, but not limited to,
26 assets and activities in the matched book, in
HB2755 Enrolled - 727 - LRB104 08253 BDA 18303 b
1 the arbitrage book and foreign currency
2 transactions (but excluding amounts described
3 in subparagraphs (A) or (B) of this
4 paragraph), attributable to this State and
5 included in the numerator is determined by
6 multiplying the amount described in
7 subparagraph (B) of paragraph (1) of this
8 subsection by a fraction, the numerator of
9 which is the total receipts included in the
10 numerator pursuant to items (i) through (vii)
11 of this subparagraph (3) and the denominator
12 of which is all total receipts included in the
13 denominator, other than interest, dividends,
14 net gains (but not less than zero), and other
15 income from investment assets and activities
16 and trading assets and activities.
17 (4) (Blank).
18 (5) (Blank).
19 (c-1) Federally regulated exchanges. For taxable years
20 ending on or after December 31, 2012, business income of a
21 federally regulated exchange shall, at the option of the
22 federally regulated exchange, be apportioned to this State by
23 multiplying such income by a fraction, the numerator of which
24 is its business income from sources within this State, and the
25 denominator of which is its business income from all sources.
26 For purposes of this subsection, the business income within
HB2755 Enrolled - 728 - LRB104 08253 BDA 18303 b
1 this State of a federally regulated exchange is the sum of the
2 following:
3 (1) Receipts attributable to transactions executed on
4 a physical trading floor if that physical trading floor is
5 located in this State.
6 (2) Receipts attributable to all other matching,
7 execution, or clearing transactions, including without
8 limitation receipts from the provision of matching,
9 execution, or clearing services to another entity,
10 multiplied by (i) for taxable years ending on or after
11 December 31, 2012 but before December 31, 2013, 63.77%;
12 and (ii) for taxable years ending on or after December 31,
13 2013, 27.54%.
14 (3) All other receipts not governed by subparagraphs
15 (1) or (2) of this subsection (c-1), to the extent the
16 receipts would be characterized as "sales in this State"
17 under item (3) of subsection (a) of this Section.
18 "Federally regulated exchange" means (i) a "registered
19 entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
20 or (C), (ii) an "exchange" or "clearing agency" within the
21 meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
22 entities regulated under any successor regulatory structure to
23 the foregoing, and (iv) all taxpayers who are members of the
24 same unitary business group as a federally regulated exchange,
25 determined without regard to the prohibition in Section
26 1501(a)(27) of this Act against including in a unitary
HB2755 Enrolled - 729 - LRB104 08253 BDA 18303 b
1 business group taxpayers who are ordinarily required to
2 apportion business income under different subsections of this
3 Section; provided that this subparagraph (iv) shall apply only
4 if 50% or more of the business receipts of the unitary business
5 group determined by application of this subparagraph (iv) for
6 the taxable year are attributable to the matching, execution,
7 or clearing of transactions conducted by an entity described
8 in subparagraph (i), (ii), or (iii) of this paragraph.
9 In no event shall the Illinois apportionment percentage
10 computed in accordance with this subsection (c-1) for any
11 taxpayer for any tax year be less than the Illinois
12 apportionment percentage computed under this subsection (c-1)
13 for that taxpayer for the first full tax year ending on or
14 after December 31, 2013 for which this subsection (c-1)
15 applied to the taxpayer.
16 (d) Transportation services. For taxable years ending
17 before December 31, 2008, business income derived from
18 furnishing transportation services shall be apportioned to
19 this State in accordance with paragraphs (1) and (2):
20 (1) Such business income (other than that derived from
21 transportation by pipeline) shall be apportioned to this
22 State by multiplying such income by a fraction, the
23 numerator of which is the revenue miles of the person in
24 this State, and the denominator of which is the revenue
25 miles of the person everywhere. For purposes of this
26 paragraph, a revenue mile is the transportation of 1
HB2755 Enrolled - 730 - LRB104 08253 BDA 18303 b
1 passenger or 1 net ton of freight the distance of 1 mile
2 for a consideration. Where a person is engaged in the
3 transportation of both passengers and freight, the
4 fraction above referred to shall be determined by means of
5 an average of the passenger revenue mile fraction and the
6 freight revenue mile fraction, weighted to reflect the
7 person's
8 (A) relative railway operating income from total
9 passenger and total freight service, as reported to
10 the Interstate Commerce Commission, in the case of
11 transportation by railroad, and
12 (B) relative gross receipts from passenger and
13 freight transportation, in case of transportation
14 other than by railroad.
15 (2) Such business income derived from transportation
16 by pipeline shall be apportioned to this State by
17 multiplying such income by a fraction, the numerator of
18 which is the revenue miles of the person in this State, and
19 the denominator of which is the revenue miles of the
20 person everywhere. For the purposes of this paragraph, a
21 revenue mile is the transportation by pipeline of 1 barrel
22 of oil, 1,000 cubic feet of gas, or of any specified
23 quantity of any other substance, the distance of 1 mile
24 for a consideration.
25 (3) For taxable years ending on or after December 31,
26 2008, business income derived from providing
HB2755 Enrolled - 731 - LRB104 08253 BDA 18303 b
1 transportation services other than airline services shall
2 be apportioned to this State by using a fraction, (a) the
3 numerator of which shall be (i) all receipts from any
4 movement or shipment of people, goods, mail, oil, gas, or
5 any other substance (other than by airline) that both
6 originates and terminates in this State, plus (ii) that
7 portion of the person's gross receipts from movements or
8 shipments of people, goods, mail, oil, gas, or any other
9 substance (other than by airline) that originates in one
10 state or jurisdiction and terminates in another state or
11 jurisdiction, that is determined by the ratio that the
12 miles traveled in this State bears to total miles
13 everywhere and (b) the denominator of which shall be all
14 revenue derived from the movement or shipment of people,
15 goods, mail, oil, gas, or any other substance (other than
16 by airline). Where a taxpayer is engaged in the
17 transportation of both passengers and freight, the
18 fraction above referred to shall first be determined
19 separately for passenger miles and freight miles. Then an
20 average of the passenger miles fraction and the freight
21 miles fraction shall be weighted to reflect the
22 taxpayer's:
23 (A) relative railway operating income from total
24 passenger and total freight service, as reported to
25 the Surface Transportation Board, in the case of
26 transportation by railroad; and
HB2755 Enrolled - 732 - LRB104 08253 BDA 18303 b
1 (B) relative gross receipts from passenger and
2 freight transportation, in case of transportation
3 other than by railroad.
4 (4) For taxable years ending on or after December 31,
5 2008, business income derived from furnishing airline
6 transportation services shall be apportioned to this State
7 by multiplying such income by a fraction, the numerator of
8 which is the revenue miles of the person in this State, and
9 the denominator of which is the revenue miles of the
10 person everywhere. For purposes of this paragraph, a
11 revenue mile is the transportation of one passenger or one
12 net ton of freight the distance of one mile for a
13 consideration. If a person is engaged in the
14 transportation of both passengers and freight, the
15 fraction above referred to shall be determined by means of
16 an average of the passenger revenue mile fraction and the
17 freight revenue mile fraction, weighted to reflect the
18 person's relative gross receipts from passenger and
19 freight airline transportation.
20 (e) Combined apportionment. Where 2 or more persons are
21 engaged in a unitary business as described in subsection
22 (a)(27) of Section 1501, a part of which is conducted in this
23 State by one or more members of the group, the business income
24 attributable to this State by any such member or members shall
25 be apportioned by means of the combined apportionment method.
26 (f) Alternative allocation. If the allocation and
HB2755 Enrolled - 733 - LRB104 08253 BDA 18303 b
1 apportionment provisions of subsections (a) through (e) and of
2 subsection (h) do not, for taxable years ending before
3 December 31, 2008, fairly represent the extent of a person's
4 business activity in this State, or, for taxable years ending
5 on or after December 31, 2008, fairly represent the market for
6 the person's goods, services, or other sources of business
7 income, the person may petition for, or the Director may,
8 without a petition, permit or require, in respect of all or any
9 part of the person's business activity, if reasonable:
10 (1) Separate accounting;
11 (2) The exclusion of any one or more factors;
12 (3) The inclusion of one or more additional factors
13 which will fairly represent the person's business
14 activities or market in this State; or
15 (4) The employment of any other method to effectuate
16 an equitable allocation and apportionment of the person's
17 business income.
18 (g) Cross-reference Cross reference. For allocation of
19 business income by residents, see Section 301(a).
20 (h) For tax years ending on or after December 31, 1998, the
21 apportionment factor of persons who apportion their business
22 income to this State under subsection (a) shall be equal to:
23 (1) for tax years ending on or after December 31, 1998
24 and before December 31, 1999, 16 2/3% of the property
25 factor plus 16 2/3% of the payroll factor plus 66 2/3% of
26 the sales factor;
HB2755 Enrolled - 734 - LRB104 08253 BDA 18303 b
1 (2) for tax years ending on or after December 31, 1999
2 and before December 31, 2000, 8 1/3% of the property
3 factor plus 8 1/3% of the payroll factor plus 83 1/3% of
4 the sales factor;
5 (3) for tax years ending on or after December 31,
6 2000, the sales factor.
7 If, in any tax year ending on or after December 31, 1998 and
8 before December 31, 2000, the denominator of the payroll,
9 property, or sales factor is zero, the apportionment factor
10 computed in paragraph (1) or (2) of this subsection for that
11 year shall be divided by an amount equal to 100% minus the
12 percentage weight given to each factor whose denominator is
13 equal to zero.
14 (Source: P.A. 102-40, eff. 6-25-21; 102-558, eff. 8-20-21;
15 103-592, eff. 6-7-24; revised 10-16-24.)
16 (35 ILCS 5/901)
17 Sec. 901. Collection authority.
18 (a) In general. The Department shall collect the taxes
19 imposed by this Act. The Department shall collect certified
20 past due child support amounts under Section 2505-650 of the
21 Department of Revenue Law of the Civil Administrative Code of
22 Illinois. Except as provided in subsections (b), (c), (e),
23 (f), (g), and (h) of this Section, money collected pursuant to
24 subsections (a) and (b) of Section 201 of this Act shall be
25 paid into the General Revenue Fund in the State treasury;
HB2755 Enrolled - 735 - LRB104 08253 BDA 18303 b
1 money collected pursuant to subsections (c) and (d) of Section
2 201 of this Act shall be paid into the Personal Property Tax
3 Replacement Fund, a special fund in the State Treasury; and
4 money collected under Section 2505-650 of the Department of
5 Revenue Law of the Civil Administrative Code of Illinois shall
6 be paid into the Child Support Enforcement Trust Fund, a
7 special fund outside the State Treasury, or to the State
8 Disbursement Unit established under Section 10-26 of the
9 Illinois Public Aid Code, as directed by the Department of
10 Healthcare and Family Services.
11 (b) Local Government Distributive Fund. Beginning August
12 1, 2017 and continuing through July 31, 2022, the Treasurer
13 shall transfer each month from the General Revenue Fund to the
14 Local Government Distributive Fund an amount equal to the sum
15 of: (i) 6.06% (10% of the ratio of the 3% individual income tax
16 rate prior to 2011 to the 4.95% individual income tax rate
17 after July 1, 2017) of the net revenue realized from the tax
18 imposed by subsections (a) and (b) of Section 201 of this Act
19 upon individuals, trusts, and estates during the preceding
20 month; (ii) 6.85% (10% of the ratio of the 4.8% corporate
21 income tax rate prior to 2011 to the 7% corporate income tax
22 rate after July 1, 2017) of the net revenue realized from the
23 tax imposed by subsections (a) and (b) of Section 201 of this
24 Act upon corporations during the preceding month; and (iii)
25 beginning February 1, 2022, 6.06% of the net revenue realized
26 from the tax imposed by subsection (p) of Section 201 of this
HB2755 Enrolled - 736 - LRB104 08253 BDA 18303 b
1 Act upon electing pass-through entities. Beginning August 1,
2 2022 and continuing through July 31, 2023, the Treasurer shall
3 transfer each month from the General Revenue Fund to the Local
4 Government Distributive Fund an amount equal to the sum of:
5 (i) 6.16% of the net revenue realized from the tax imposed by
6 subsections (a) and (b) of Section 201 of this Act upon
7 individuals, trusts, and estates during the preceding month;
8 (ii) 6.85% of the net revenue realized from the tax imposed by
9 subsections (a) and (b) of Section 201 of this Act upon
10 corporations during the preceding month; and (iii) 6.16% of
11 the net revenue realized from the tax imposed by subsection
12 (p) of Section 201 of this Act upon electing pass-through
13 entities. Beginning August 1, 2023, the Treasurer shall
14 transfer each month from the General Revenue Fund to the Local
15 Government Distributive Fund an amount equal to the sum of:
16 (i) 6.47% of the net revenue realized from the tax imposed by
17 subsections (a) and (b) of Section 201 of this Act upon
18 individuals, trusts, and estates during the preceding month;
19 (ii) 6.85% of the net revenue realized from the tax imposed by
20 subsections (a) and (b) of Section 201 of this Act upon
21 corporations during the preceding month; and (iii) 6.47% of
22 the net revenue realized from the tax imposed by subsection
23 (p) of Section 201 of this Act upon electing pass-through
24 entities. Net revenue realized for a month shall be defined as
25 the revenue from the tax imposed by subsections (a) and (b) of
26 Section 201 of this Act which is deposited into the General
HB2755 Enrolled - 737 - LRB104 08253 BDA 18303 b
1 Revenue Fund, the Education Assistance Fund, the Income Tax
2 Surcharge Local Government Distributive Fund, the Fund for the
3 Advancement of Education, and the Commitment to Human Services
4 Fund during the month minus the amount paid out of the General
5 Revenue Fund in State warrants during that same month as
6 refunds to taxpayers for overpayment of liability under the
7 tax imposed by subsections (a) and (b) of Section 201 of this
8 Act.
9 Notwithstanding any provision of law to the contrary,
10 beginning on July 6, 2017 (the effective date of Public Act
11 100-23), those amounts required under this subsection (b) to
12 be transferred by the Treasurer into the Local Government
13 Distributive Fund from the General Revenue Fund shall be
14 directly deposited into the Local Government Distributive Fund
15 as the revenue is realized from the tax imposed by subsections
16 (a) and (b) of Section 201 of this Act.
17 (c) Deposits Into Income Tax Refund Fund.
18 (1) Beginning on January 1, 1989 and thereafter, the
19 Department shall deposit a percentage of the amounts
20 collected pursuant to subsections (a) and (b)(1), (2), and
21 (3) of Section 201 of this Act into a fund in the State
22 treasury known as the Income Tax Refund Fund. Beginning
23 with State fiscal year 1990 and for each fiscal year
24 thereafter, the percentage deposited into the Income Tax
25 Refund Fund during a fiscal year shall be the Annual
26 Percentage. For fiscal year 2011, the Annual Percentage
HB2755 Enrolled - 738 - LRB104 08253 BDA 18303 b
1 shall be 8.75%. For fiscal year 2012, the Annual
2 Percentage shall be 8.75%. For fiscal year 2013, the
3 Annual Percentage shall be 9.75%. For fiscal year 2014,
4 the Annual Percentage shall be 9.5%. For fiscal year 2015,
5 the Annual Percentage shall be 10%. For fiscal year 2018,
6 the Annual Percentage shall be 9.8%. For fiscal year 2019,
7 the Annual Percentage shall be 9.7%. For fiscal year 2020,
8 the Annual Percentage shall be 9.5%. For fiscal year 2021,
9 the Annual Percentage shall be 9%. For fiscal year 2022,
10 the Annual Percentage shall be 9.25%. For fiscal year
11 2023, the Annual Percentage shall be 9.25%. For fiscal
12 year 2024, the Annual Percentage shall be 9.15%. For
13 fiscal year 2025, the Annual Percentage shall be 9.15%.
14 For all other fiscal years, the Annual Percentage shall be
15 calculated as a fraction, the numerator of which shall be
16 the amount of refunds approved for payment by the
17 Department during the preceding fiscal year as a result of
18 overpayment of tax liability under subsections (a) and
19 (b)(1), (2), and (3) of Section 201 of this Act plus the
20 amount of such refunds remaining approved but unpaid at
21 the end of the preceding fiscal year, minus the amounts
22 transferred into the Income Tax Refund Fund from the
23 Tobacco Settlement Recovery Fund, and the denominator of
24 which shall be the amounts which will be collected
25 pursuant to subsections (a) and (b)(1), (2), and (3) of
26 Section 201 of this Act during the preceding fiscal year;
HB2755 Enrolled - 739 - LRB104 08253 BDA 18303 b
1 except that in State fiscal year 2002, the Annual
2 Percentage shall in no event exceed 7.6%. The Director of
3 Revenue shall certify the Annual Percentage to the
4 Comptroller on the last business day of the fiscal year
5 immediately preceding the fiscal year for which it is to
6 be effective.
7 (2) Beginning on January 1, 1989 and thereafter, the
8 Department shall deposit a percentage of the amounts
9 collected pursuant to subsections (a) and (b)(6), (7), and
10 (8), (c) and (d) of Section 201 of this Act into a fund in
11 the State treasury known as the Income Tax Refund Fund.
12 Beginning with State fiscal year 1990 and for each fiscal
13 year thereafter, the percentage deposited into the Income
14 Tax Refund Fund during a fiscal year shall be the Annual
15 Percentage. For fiscal year 2011, the Annual Percentage
16 shall be 17.5%. For fiscal year 2012, the Annual
17 Percentage shall be 17.5%. For fiscal year 2013, the
18 Annual Percentage shall be 14%. For fiscal year 2014, the
19 Annual Percentage shall be 13.4%. For fiscal year 2015,
20 the Annual Percentage shall be 14%. For fiscal year 2018,
21 the Annual Percentage shall be 17.5%. For fiscal year
22 2019, the Annual Percentage shall be 15.5%. For fiscal
23 year 2020, the Annual Percentage shall be 14.25%. For
24 fiscal year 2021, the Annual Percentage shall be 14%. For
25 fiscal year 2022, the Annual Percentage shall be 15%. For
26 fiscal year 2023, the Annual Percentage shall be 14.5%.
HB2755 Enrolled - 740 - LRB104 08253 BDA 18303 b
1 For fiscal year 2024, the Annual Percentage shall be 14%.
2 For fiscal year 2025, the Annual Percentage shall be 14%.
3 For all other fiscal years, the Annual Percentage shall be
4 calculated as a fraction, the numerator of which shall be
5 the amount of refunds approved for payment by the
6 Department during the preceding fiscal year as a result of
7 overpayment of tax liability under subsections (a) and
8 (b)(6), (7), and (8), (c) and (d) of Section 201 of this
9 Act plus the amount of such refunds remaining approved but
10 unpaid at the end of the preceding fiscal year, and the
11 denominator of which shall be the amounts which will be
12 collected pursuant to subsections (a) and (b)(6), (7), and
13 (8), (c) and (d) of Section 201 of this Act during the
14 preceding fiscal year; except that in State fiscal year
15 2002, the Annual Percentage shall in no event exceed 23%.
16 The Director of Revenue shall certify the Annual
17 Percentage to the Comptroller on the last business day of
18 the fiscal year immediately preceding the fiscal year for
19 which it is to be effective.
20 (3) The Comptroller shall order transferred and the
21 Treasurer shall transfer from the Tobacco Settlement
22 Recovery Fund to the Income Tax Refund Fund (i)
23 $35,000,000 in January, 2001, (ii) $35,000,000 in January,
24 2002, and (iii) $35,000,000 in January, 2003.
25 (d) Expenditures from Income Tax Refund Fund.
26 (1) Beginning January 1, 1989, money in the Income Tax
HB2755 Enrolled - 741 - LRB104 08253 BDA 18303 b
1 Refund Fund shall be expended exclusively for the purpose
2 of paying refunds resulting from overpayment of tax
3 liability under Section 201 of this Act and for making
4 transfers pursuant to this subsection (d), except that in
5 State fiscal years 2022 and 2023, moneys in the Income Tax
6 Refund Fund shall also be used to pay one-time rebate
7 payments as provided under Sections 208.5 and 212.1.
8 (2) The Director shall order payment of refunds
9 resulting from overpayment of tax liability under Section
10 201 of this Act from the Income Tax Refund Fund only to the
11 extent that amounts collected pursuant to Section 201 of
12 this Act and transfers pursuant to this subsection (d) and
13 item (3) of subsection (c) have been deposited and
14 retained in the Fund.
15 (3) As soon as possible after the end of each fiscal
16 year, the Director shall order transferred and the State
17 Treasurer and State Comptroller shall transfer from the
18 Income Tax Refund Fund to the Personal Property Tax
19 Replacement Fund an amount, certified by the Director to
20 the Comptroller, equal to the excess of the amount
21 collected pursuant to subsections (c) and (d) of Section
22 201 of this Act deposited into the Income Tax Refund Fund
23 during the fiscal year over the amount of refunds
24 resulting from overpayment of tax liability under
25 subsections (c) and (d) of Section 201 of this Act paid
26 from the Income Tax Refund Fund during the fiscal year.
HB2755 Enrolled - 742 - LRB104 08253 BDA 18303 b
1 (4) As soon as possible after the end of each fiscal
2 year, the Director shall order transferred and the State
3 Treasurer and State Comptroller shall transfer from the
4 Personal Property Tax Replacement Fund to the Income Tax
5 Refund Fund an amount, certified by the Director to the
6 Comptroller, equal to the excess of the amount of refunds
7 resulting from overpayment of tax liability under
8 subsections (c) and (d) of Section 201 of this Act paid
9 from the Income Tax Refund Fund during the fiscal year
10 over the amount collected pursuant to subsections (c) and
11 (d) of Section 201 of this Act deposited into the Income
12 Tax Refund Fund during the fiscal year.
13 (4.5) As soon as possible after the end of fiscal year
14 1999 and of each fiscal year thereafter, the Director
15 shall order transferred and the State Treasurer and State
16 Comptroller shall transfer from the Income Tax Refund Fund
17 to the General Revenue Fund any surplus remaining in the
18 Income Tax Refund Fund as of the end of such fiscal year;
19 excluding for fiscal years 2000, 2001, and 2002 amounts
20 attributable to transfers under item (3) of subsection (c)
21 less refunds resulting from the earned income tax credit,
22 and excluding for fiscal year 2022 amounts attributable to
23 transfers from the General Revenue Fund authorized by
24 Public Act 102-700. For purposes of this item (4.5),
25 "surplus" means the cash balance in the Income Tax Refund
26 Fund at the end of such fiscal year, less amounts
HB2755 Enrolled - 743 - LRB104 08253 BDA 18303 b
1 attributable to transfers under item (3) of this
2 subsection (d).
3 (5) This Act shall constitute an irrevocable and
4 continuing appropriation from the Income Tax Refund Fund
5 for the purposes of (i) paying refunds upon the order of
6 the Director in accordance with the provisions of this
7 Section and (ii) paying one-time rebate payments under
8 Sections 208.5 and 212.1.
9 (e) Deposits into the Education Assistance Fund and the
10 Income Tax Surcharge Local Government Distributive Fund. On
11 July 1, 1991, and thereafter, of the amounts collected
12 pursuant to subsections (a) and (b) of Section 201 of this Act,
13 minus deposits into the Income Tax Refund Fund, the Department
14 shall deposit 7.3% into the Education Assistance Fund in the
15 State Treasury. Beginning July 1, 1991, and continuing through
16 January 31, 1993, of the amounts collected pursuant to
17 subsections (a) and (b) of Section 201 of the Illinois Income
18 Tax Act, minus deposits into the Income Tax Refund Fund, the
19 Department shall deposit 3.0% into the Income Tax Surcharge
20 Local Government Distributive Fund in the State Treasury.
21 Beginning February 1, 1993 and continuing through June 30,
22 1993, of the amounts collected pursuant to subsections (a) and
23 (b) of Section 201 of the Illinois Income Tax Act, minus
24 deposits into the Income Tax Refund Fund, the Department shall
25 deposit 4.4% into the Income Tax Surcharge Local Government
26 Distributive Fund in the State Treasury. Beginning July 1,
HB2755 Enrolled - 744 - LRB104 08253 BDA 18303 b
1 1993, and continuing through June 30, 1994, of the amounts
2 collected under subsections (a) and (b) of Section 201 of this
3 Act, minus deposits into the Income Tax Refund Fund, the
4 Department shall deposit 1.475% into the Income Tax Surcharge
5 Local Government Distributive Fund in the State Treasury.
6 (f) Deposits into the Fund for the Advancement of
7 Education. Beginning February 1, 2015, the Department shall
8 deposit the following portions of the revenue realized from
9 the tax imposed upon individuals, trusts, and estates by
10 subsections (a) and (b) of Section 201 of this Act, minus
11 deposits into the Income Tax Refund Fund, into the Fund for the
12 Advancement of Education:
13 (1) beginning February 1, 2015, and prior to February
14 1, 2025, 1/30; and
15 (2) beginning February 1, 2025, 1/26.
16 If the rate of tax imposed by subsection (a) and (b) of
17 Section 201 is reduced pursuant to Section 201.5 of this Act,
18 the Department shall not make the deposits required by this
19 subsection (f) on or after the effective date of the
20 reduction.
21 (g) Deposits into the Commitment to Human Services Fund.
22 Beginning February 1, 2015, the Department shall deposit the
23 following portions of the revenue realized from the tax
24 imposed upon individuals, trusts, and estates by subsections
25 (a) and (b) of Section 201 of this Act, minus deposits into the
26 Income Tax Refund Fund, into the Commitment to Human Services
HB2755 Enrolled - 745 - LRB104 08253 BDA 18303 b
1 Fund:
2 (1) beginning February 1, 2015, and prior to February
3 1, 2025, 1/30; and
4 (2) beginning February 1, 2025, 1/26.
5 If the rate of tax imposed by subsection (a) and (b) of
6 Section 201 is reduced pursuant to Section 201.5 of this Act,
7 the Department shall not make the deposits required by this
8 subsection (g) on or after the effective date of the
9 reduction.
10 (h) Deposits into the Tax Compliance and Administration
11 Fund. Beginning on the first day of the first calendar month to
12 occur on or after August 26, 2014 (the effective date of Public
13 Act 98-1098), each month the Department shall pay into the Tax
14 Compliance and Administration Fund, to be used, subject to
15 appropriation, to fund additional auditors and compliance
16 personnel at the Department, an amount equal to 1/12 of 5% of
17 the cash receipts collected during the preceding fiscal year
18 by the Audit Bureau of the Department from the tax imposed by
19 subsections (a), (b), (c), and (d) of Section 201 of this Act,
20 net of deposits into the Income Tax Refund Fund made from those
21 cash receipts.
22 (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
23 102-658, eff. 8-27-21; 102-699, eff. 4-19-22; 102-700, eff.
24 4-19-22; 102-813, eff. 5-13-22; 103-8, eff. 6-7-23; 103-154,
25 eff. 6-30-23; 103-588, eff. 6-5-24.)
HB2755 Enrolled - 746 - LRB104 08253 BDA 18303 b
1 Section 35-20. The Use Tax Act is amended by changing
2 Sections 3-55, 3-61, and 9 as follows:
3 (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
4 Sec. 3-55. Multistate exemption. To prevent actual or
5 likely multistate taxation, the tax imposed by this Act does
6 not apply to the use of tangible personal property in this
7 State under the following circumstances:
8 (a) The use, in this State, of tangible personal property
9 acquired outside this State by a nonresident individual and
10 brought into this State by the individual for his or her own
11 use while temporarily within this State or while passing
12 through this State.
13 (b) (Blank).
14 (c) The use, in this State, by owners or lessors, lessees,
15 or shippers of tangible personal property that is utilized by
16 interstate carriers for hire for use as rolling stock moving
17 in interstate commerce as long as so used by the interstate
18 carriers for hire, and equipment operated by a
19 telecommunications provider, licensed as a common carrier by
20 the Federal Communications Commission, which is permanently
21 installed in or affixed to aircraft moving in interstate
22 commerce.
23 (d) The use, in this State, of tangible personal property
24 that is acquired outside this State and caused to be brought
25 into this State by a person who has already paid a tax in
HB2755 Enrolled - 747 - LRB104 08253 BDA 18303 b
1 another State in respect to the sale, purchase, or use of that
2 property, to the extent of the amount of the tax properly due
3 and paid in the other State.
4 (e) The temporary storage, in this State, of tangible
5 personal property that is acquired outside this State and
6 that, after being brought into this State and stored here
7 temporarily, is used solely outside this State or is
8 physically attached to or incorporated into other tangible
9 personal property that is used solely outside this State, or
10 is altered by converting, fabricating, manufacturing,
11 printing, processing, or shaping, and, as altered, is used
12 solely outside this State.
13 (f) The temporary storage in this State of building
14 materials and fixtures that are acquired either in this State
15 or outside this State by an Illinois registered combination
16 retailer and construction contractor, and that the purchaser
17 thereafter uses outside this State by incorporating that
18 property into real estate located outside this State.
19 (g) The use or purchase of tangible personal property by a
20 common carrier by rail or motor that receives the physical
21 possession of the property in Illinois, and that transports
22 the property, or shares with another common carrier in the
23 transportation of the property, out of Illinois on a standard
24 uniform bill of lading showing the seller of the property as
25 the shipper or consignor of the property to a destination
26 outside Illinois, for use outside Illinois.
HB2755 Enrolled - 748 - LRB104 08253 BDA 18303 b
1 (h) Except as provided in subsections subsection (h-1) and
2 (h-1.5), the use, in this State, of a motor vehicle that was
3 sold in this State to a nonresident, even though the motor
4 vehicle is delivered to the nonresident in this State, if the
5 motor vehicle is not to be titled in this State, and if a
6 drive-away permit is issued to the motor vehicle as provided
7 in Section 3-603 of the Illinois Vehicle Code or if the
8 nonresident purchaser has vehicle registration plates to
9 transfer to the motor vehicle upon returning to his or her home
10 state. The issuance of the drive-away permit or having the
11 out-of-state registration plates to be transferred shall be
12 prima facie evidence that the motor vehicle will not be titled
13 in this State.
14 (h-1) The exemption under subsection (h) does not apply if
15 the state in which the motor vehicle will be titled does not
16 allow a reciprocal exemption for the use in that state of a
17 motor vehicle sold and delivered in that state to an Illinois
18 resident but titled in Illinois. The tax collected under this
19 Act on the sale of a motor vehicle in this State to a resident
20 of another state that does not allow a reciprocal exemption
21 shall be imposed at a rate equal to the state's rate of tax on
22 taxable property in the state in which the purchaser is a
23 resident, except that the tax shall not exceed the tax that
24 would otherwise be imposed under this Act. At the time of the
25 sale, the purchaser shall execute a statement, signed under
26 penalty of perjury, of his or her intent to title the vehicle
HB2755 Enrolled - 749 - LRB104 08253 BDA 18303 b
1 in the state in which the purchaser is a resident within 30
2 days after the sale and of the fact of the payment to the State
3 of Illinois of tax in an amount equivalent to the state's rate
4 of tax on taxable property in his or her state of residence and
5 shall submit the statement to the appropriate tax collection
6 agency in his or her state of residence. In addition, the
7 retailer must retain a signed copy of the statement in his or
8 her records. Nothing in this subsection shall be construed to
9 require the removal of the vehicle from this state following
10 the filing of an intent to title the vehicle in the purchaser's
11 state of residence if the purchaser titles the vehicle in his
12 or her state of residence within 30 days after the date of
13 sale. The tax collected under this Act in accordance with this
14 subsection (h-1) shall be proportionately distributed as if
15 the tax were collected at the 6.25% general rate imposed under
16 this Act.
17 (h-1.5) There is a rebuttable presumption that the
18 exemption under subsection (h) does not apply if the purchaser
19 is a limited liability company and a member of the limited
20 liability company is a resident of Illinois. This presumption
21 may be rebutted by other evidence, such as evidence the motor
22 vehicle is insured for primary use at an address outside of
23 Illinois or evidence that the motor vehicle will be
24 permanently stored or garaged at a physical address outside
25 Illinois.
26 (h-2) The following exemptions apply with respect to
HB2755 Enrolled - 750 - LRB104 08253 BDA 18303 b
1 certain aircraft:
2 (1) Beginning on July 1, 2007, no tax is imposed under
3 this Act on the purchase of an aircraft, as defined in
4 Section 3 of the Illinois Aeronautics Act, if all of the
5 following conditions are met:
6 (A) the aircraft leaves this State within 15 days
7 after the later of either the issuance of the final
8 billing for the purchase of the aircraft or the
9 authorized approval for return to service, completion
10 of the maintenance record entry, and completion of the
11 test flight and ground test for inspection, as
12 required by 14 C.F.R. 91.407;
13 (B) the aircraft is not based or registered in
14 this State after the purchase of the aircraft; and
15 (C) the purchaser provides the Department with a
16 signed and dated certification, on a form prescribed
17 by the Department, certifying that the requirements of
18 this item (1) are met. The certificate must also
19 include the name and address of the purchaser, the
20 address of the location where the aircraft is to be
21 titled or registered, the address of the primary
22 physical location of the aircraft, and other
23 information that the Department may reasonably
24 require.
25 (2) Beginning on July 1, 2007, no tax is imposed under
26 this Act on the use of an aircraft, as defined in Section 3
HB2755 Enrolled - 751 - LRB104 08253 BDA 18303 b
1 of the Illinois Aeronautics Act, that is temporarily
2 located in this State for the purpose of a prepurchase
3 evaluation if all of the following conditions are met:
4 (A) the aircraft is not based or registered in
5 this State after the prepurchase evaluation; and
6 (B) the purchaser provides the Department with a
7 signed and dated certification, on a form prescribed
8 by the Department, certifying that the requirements of
9 this item (2) are met. The certificate must also
10 include the name and address of the purchaser, the
11 address of the location where the aircraft is to be
12 titled or registered, the address of the primary
13 physical location of the aircraft, and other
14 information that the Department may reasonably
15 require.
16 (3) Beginning on July 1, 2007, no tax is imposed under
17 this Act on the use of an aircraft, as defined in Section 3
18 of the Illinois Aeronautics Act, that is temporarily
19 located in this State for the purpose of a post-sale
20 customization if all of the following conditions are met:
21 (A) the aircraft leaves this State within 15 days
22 after the authorized approval for return to service,
23 completion of the maintenance record entry, and
24 completion of the test flight and ground test for
25 inspection, as required by 14 C.F.R. 91.407;
26 (B) the aircraft is not based or registered in
HB2755 Enrolled - 752 - LRB104 08253 BDA 18303 b
1 this State either before or after the post-sale
2 customization; and
3 (C) the purchaser provides the Department with a
4 signed and dated certification, on a form prescribed
5 by the Department, certifying that the requirements of
6 this item (3) are met. The certificate must also
7 include the name and address of the purchaser, the
8 address of the location where the aircraft is to be
9 titled or registered, the address of the primary
10 physical location of the aircraft, and other
11 information that the Department may reasonably
12 require.
13 If tax becomes due under this subsection (h-2) because of
14 the purchaser's use of the aircraft in this State, the
15 purchaser shall file a return with the Department and pay the
16 tax on the fair market value of the aircraft. This return and
17 payment of the tax must be made no later than 30 days after the
18 aircraft is used in a taxable manner in this State. The tax is
19 based on the fair market value of the aircraft on the date that
20 it is first used in a taxable manner in this State.
21 For purposes of this subsection (h-2):
22 "Based in this State" means hangared, stored, or otherwise
23 used, excluding post-sale customizations as defined in this
24 Section, for 10 or more days in each 12-month period
25 immediately following the date of the sale of the aircraft.
26 "Post-sale customization" means any improvement,
HB2755 Enrolled - 753 - LRB104 08253 BDA 18303 b
1 maintenance, or repair that is performed on an aircraft
2 following a transfer of ownership of the aircraft.
3 "Prepurchase evaluation" means an examination of an
4 aircraft to provide a potential purchaser with information
5 relevant to the potential purchase.
6 "Registered in this State" means an aircraft registered
7 with the Department of Transportation, Aeronautics Division,
8 or titled or registered with the Federal Aviation
9 Administration to an address located in this State.
10 This subsection (h-2) is exempt from the provisions of
11 Section 3-90.
12 (i) Beginning July 1, 1999, the use, in this State, of fuel
13 acquired outside this State and brought into this State in the
14 fuel supply tanks of locomotives engaged in freight hauling
15 and passenger service for interstate commerce. This subsection
16 is exempt from the provisions of Section 3-90.
17 (j) Beginning on January 1, 2002 and through June 30,
18 2016, the use of tangible personal property purchased from an
19 Illinois retailer by a taxpayer engaged in centralized
20 purchasing activities in Illinois who will, upon receipt of
21 the property in Illinois, temporarily store the property in
22 Illinois (i) for the purpose of subsequently transporting it
23 outside this State for use or consumption thereafter solely
24 outside this State or (ii) for the purpose of being processed,
25 fabricated, or manufactured into, attached to, or incorporated
26 into other tangible personal property to be transported
HB2755 Enrolled - 754 - LRB104 08253 BDA 18303 b
1 outside this State and thereafter used or consumed solely
2 outside this State. The Director of Revenue shall, pursuant to
3 rules adopted in accordance with the Illinois Administrative
4 Procedure Act, issue a permit to any taxpayer in good standing
5 with the Department who is eligible for the exemption under
6 this subsection (j). The permit issued under this subsection
7 (j) shall authorize the holder, to the extent and in the manner
8 specified in the rules adopted under this Act, to purchase
9 tangible personal property from a retailer exempt from the
10 taxes imposed by this Act. Taxpayers shall maintain all
11 necessary books and records to substantiate the use and
12 consumption of all such tangible personal property outside of
13 the State of Illinois.
14 (Source: P.A. 103-592, eff. 1-1-25.)
15 (35 ILCS 105/3-61)
16 Sec. 3-61. Motor vehicles; trailers; use as rolling stock
17 definition.
18 (a) (Blank).
19 (b) (Blank).
20 (c) This subsection (c) applies to motor vehicles, other
21 than limousines, purchased through June 30, 2017. For motor
22 vehicles, other than limousines, purchased on or after July 1,
23 2017, subsection (d-5) applies. This subsection (c) applies to
24 limousines purchased before, on, or after July 1, 2017. "Use
25 as rolling stock moving in interstate commerce" in paragraph
HB2755 Enrolled - 755 - LRB104 08253 BDA 18303 b
1 (c) of Section 3-55 occurs for motor vehicles, as defined in
2 Section 1-146 of the Illinois Vehicle Code, when during a
3 12-month period the rolling stock has carried persons or
4 property for hire in interstate commerce for greater than 50%
5 of its total trips for that period or for greater than 50% of
6 its total miles for that period. The person claiming the
7 exemption shall make an election at the time of purchase to use
8 either the trips or mileage method. Persons who purchased
9 motor vehicles prior to July 1, 2004 shall make an election to
10 use either the trips or mileage method and document that
11 election in their books and records. If no election is made
12 under this subsection to use the trips or mileage method, the
13 person shall be deemed to have chosen the mileage method.
14 For purposes of determining qualifying trips or miles,
15 motor vehicles that carry persons or property for hire, even
16 just between points in Illinois, will be considered used for
17 hire in interstate commerce if the motor vehicle transports
18 persons whose journeys or property whose shipments originate
19 or terminate outside Illinois. The exemption for motor
20 vehicles used as rolling stock moving in interstate commerce
21 may be claimed only for the following vehicles: (i) motor
22 vehicles whose gross vehicle weight rating exceeds 16,000
23 pounds; and (ii) limousines, as defined in Section 1-139.1 of
24 the Illinois Vehicle Code. On and after July 1, 2025, the
25 exemption for limousines applies only if those limousines are
26 not used to provide transportation network company services,
HB2755 Enrolled - 756 - LRB104 08253 BDA 18303 b
1 as defined in the Transportation Network Providers Act.
2 Through June 30, 2017, this definition applies to all property
3 purchased for the purpose of being attached to those motor
4 vehicles as a part thereof. On and after July 1, 2017, this
5 definition applies to property purchased for the purpose of
6 being attached to limousines as a part thereof. For property
7 that is purchased on or after July 1, 2025 for the purpose of
8 being attached to a limousine as a part thereof, this
9 definition applies only if the limousine is not used to
10 provide transportation network company services, as defined in
11 the Transportation Network Providers Act.
12 (d) For purchases made through June 30, 2017, "use as
13 rolling stock moving in interstate commerce" in paragraph (c)
14 of Section 3-55 occurs for trailers, as defined in Section
15 1-209 of the Illinois Vehicle Code, semitrailers as defined in
16 Section 1-187 of the Illinois Vehicle Code, and pole trailers
17 as defined in Section 1-161 of the Illinois Vehicle Code, when
18 during a 12-month period the rolling stock has carried persons
19 or property for hire in interstate commerce for greater than
20 50% of its total trips for that period or for greater than 50%
21 of its total miles for that period. The person claiming the
22 exemption for a trailer or trailers that will not be dedicated
23 to a motor vehicle or group of motor vehicles shall make an
24 election at the time of purchase to use either the trips or
25 mileage method. Persons who purchased trailers prior to July
26 1, 2004 that are not dedicated to a motor vehicle or group of
HB2755 Enrolled - 757 - LRB104 08253 BDA 18303 b
1 motor vehicles shall make an election to use either the trips
2 or mileage method and document that election in their books
3 and records. If no election is made under this subsection to
4 use the trips or mileage method, the person shall be deemed to
5 have chosen the mileage method.
6 For purposes of determining qualifying trips or miles,
7 trailers, semitrailers, or pole trailers that carry property
8 for hire, even just between points in Illinois, will be
9 considered used for hire in interstate commerce if the
10 trailers, semitrailers, or pole trailers transport property
11 whose shipments originate or terminate outside Illinois. This
12 definition applies to all property purchased for the purpose
13 of being attached to those trailers, semitrailers, or pole
14 trailers as a part thereof. In lieu of a person providing
15 documentation regarding the qualifying use of each individual
16 trailer, semitrailer, or pole trailer, that person may
17 document such qualifying use by providing documentation of the
18 following:
19 (1) If a trailer, semitrailer, or pole trailer is
20 dedicated to a motor vehicle that qualifies as rolling
21 stock moving in interstate commerce under subsection (c)
22 of this Section, then that trailer, semitrailer, or pole
23 trailer qualifies as rolling stock moving in interstate
24 commerce under this subsection.
25 (2) If a trailer, semitrailer, or pole trailer is
26 dedicated to a group of motor vehicles that all qualify as
HB2755 Enrolled - 758 - LRB104 08253 BDA 18303 b
1 rolling stock moving in interstate commerce under
2 subsection (c) of this Section, then that trailer,
3 semitrailer, or pole trailer qualifies as rolling stock
4 moving in interstate commerce under this subsection.
5 (3) If one or more trailers, semitrailers, or pole
6 trailers are dedicated to a group of motor vehicles and
7 not all of those motor vehicles in that group qualify as
8 rolling stock moving in interstate commerce under
9 subsection (c) of this Section, then the percentage of
10 those trailers, semitrailers, or pole trailers that
11 qualifies as rolling stock moving in interstate commerce
12 under this subsection is equal to the percentage of those
13 motor vehicles in that group that qualify as rolling stock
14 moving in interstate commerce under subsection (c) of this
15 Section to which those trailers, semitrailers, or pole
16 trailers are dedicated. However, to determine the
17 qualification for the exemption provided under this item
18 (3), the mathematical application of the qualifying
19 percentage to one or more trailers, semitrailers, or pole
20 trailers under this subpart shall not be allowed as to any
21 fraction of a trailer, semitrailer, or pole trailer.
22 (d-5) For motor vehicles and trailers purchased on or
23 after July 1, 2017, "use as rolling stock moving in interstate
24 commerce" means that:
25 (1) the motor vehicle or trailer is used to transport
26 persons or property for hire;
HB2755 Enrolled - 759 - LRB104 08253 BDA 18303 b
1 (2) for purposes of the exemption under subsection (c)
2 of Section 3-55, the purchaser who is an owner, lessor, or
3 shipper claiming the exemption certifies that the motor
4 vehicle or trailer will be utilized, from the time of
5 purchase and continuing through the statute of limitations
6 for issuing a notice of tax liability under this Act, by an
7 interstate carrier or carriers for hire who hold, and are
8 required by Federal Motor Carrier Safety Administration
9 regulations to hold, an active USDOT Number with the
10 Carrier Operation listed as "Interstate" and the Operation
11 Classification listed as "authorized for hire", "exempt
12 for hire", or both "authorized for hire" and "exempt for
13 hire"; except that this paragraph (2) does not apply to a
14 motor vehicle or trailer used at an airport to support the
15 operation of an aircraft moving in interstate commerce, as
16 long as (i) in the case of a motor vehicle, the motor
17 vehicle meets paragraphs (1) and (3) of this subsection
18 (d-5) or (ii) in the case of a trailer, the trailer meets
19 paragraph (1) of this subsection (d-5); and
20 (3) for motor vehicles, the gross vehicle weight
21 rating exceeds 16,000 pounds.
22 The definition of "use as rolling stock moving in
23 interstate commerce" in this subsection (d-5) applies to all
24 property purchased on or after July 1, 2017 for the purpose of
25 being attached to a motor vehicle or trailer as a part thereof,
26 regardless of whether the motor vehicle or trailer was
HB2755 Enrolled - 760 - LRB104 08253 BDA 18303 b
1 purchased before, on, or after July 1, 2017.
2 If an item ceases to meet requirements (1) through (3)
3 under this subsection (d-5), then the tax is imposed on the
4 selling price, allowing for a reasonable depreciation for the
5 period during which the item qualified for the exemption.
6 For purposes of this subsection (d-5):
7 "Motor vehicle" excludes limousines, but otherwise
8 means that term as defined in Section 1-146 of the
9 Illinois Vehicle Code.
10 "Trailer" means (i) "trailer", as defined in Section
11 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
12 defined in Section 1-187 of the Illinois Vehicle Code, and
13 (iii) "pole trailer", as defined in Section 1-161 of the
14 Illinois Vehicle Code.
15 (e) For aircraft and watercraft purchased on or after
16 January 1, 2014, "use as rolling stock moving in interstate
17 commerce" in paragraph (c) of Section 3-55 occurs when, during
18 a 12-month period, the rolling stock has carried persons or
19 property for hire in interstate commerce for greater than 50%
20 of its total trips for that period or for greater than 50% of
21 its total miles for that period. The person claiming the
22 exemption shall make an election at the time of purchase to use
23 either the trips or mileage method and document that election
24 in their books and records. If no election is made under this
25 subsection to use the trips or mileage method, the person
26 shall be deemed to have chosen the mileage method. For
HB2755 Enrolled - 761 - LRB104 08253 BDA 18303 b
1 aircraft, flight hours may be used in lieu of recording miles
2 in determining whether the aircraft meets the mileage test in
3 this subsection. For watercraft, nautical miles or trip hours
4 may be used in lieu of recording miles in determining whether
5 the watercraft meets the mileage test in this subsection.
6 Notwithstanding any other provision of law to the
7 contrary, property purchased on or after January 1, 2014 for
8 the purpose of being attached to aircraft or watercraft as a
9 part thereof qualifies as rolling stock moving in interstate
10 commerce only if the aircraft or watercraft to which it will be
11 attached qualifies as rolling stock moving in interstate
12 commerce under the test set forth in this subsection (e),
13 regardless of when the aircraft or watercraft was purchased.
14 Persons who purchased aircraft or watercraft prior to January
15 1, 2014 shall make an election to use either the trips or
16 mileage method and document that election in their books and
17 records for the purpose of determining whether property
18 purchased on or after January 1, 2014 for the purpose of being
19 attached to aircraft or watercraft as a part thereof qualifies
20 as rolling stock moving in interstate commerce under this
21 subsection (e).
22 (f) The election to use either the trips or mileage method
23 made under the provisions of subsections (c), (d), or (e) of
24 this Section will remain in effect for the duration of the
25 purchaser's ownership of that item.
26 (Source: P.A. 100-321, eff. 8-24-17.)
HB2755 Enrolled - 762 - LRB104 08253 BDA 18303 b
1 (35 ILCS 105/9)
2 Sec. 9. Except as to motor vehicles, watercraft, aircraft,
3 and trailers that are required to be registered with an agency
4 of this State, each retailer required or authorized to collect
5 the tax imposed by this Act shall pay to the Department the
6 amount of such tax (except as otherwise provided) at the time
7 when he is required to file his return for the period during
8 which such tax was collected, less a discount of 2.1% prior to
9 January 1, 1990, and 1.75% on and after January 1, 1990, or $5
10 per calendar year, whichever is greater, which is allowed to
11 reimburse the retailer for expenses incurred in collecting the
12 tax, keeping records, preparing and filing returns, remitting
13 the tax and supplying data to the Department on request.
14 Beginning with returns due on or after January 1, 2025, the
15 discount allowed in this Section, the Retailers' Occupation
16 Tax Act, the Service Occupation Tax Act, and the Service Use
17 Tax Act, including any local tax administered by the
18 Department and reported on the same return, shall not exceed
19 $1,000 per month in the aggregate for returns other than
20 transaction returns filed during the month. When determining
21 the discount allowed under this Section, retailers shall
22 include the amount of tax that would have been due at the 6.25%
23 rate but for the 1.25% rate imposed on sales tax holiday items
24 under Public Act 102-700. The discount under this Section is
25 not allowed for the 1.25% portion of taxes paid on aviation
HB2755 Enrolled - 763 - LRB104 08253 BDA 18303 b
1 fuel that is subject to the revenue use requirements of 49
2 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining the
3 discount allowed under this Section, retailers shall include
4 the amount of tax that would have been due at the 1% rate but
5 for the 0% rate imposed under Public Act 102-700. In the case
6 of retailers who report and pay the tax on a transaction by
7 transaction basis, as provided in this Section, such discount
8 shall be taken with each such tax remittance instead of when
9 such retailer files his periodic return, but, beginning with
10 returns due on or after January 1, 2025, the discount allowed
11 under this Section and the Retailers' Occupation Tax Act,
12 including any local tax administered by the Department and
13 reported on the same transaction return, shall not exceed
14 $1,000 per month for all transaction returns filed during the
15 month. The discount allowed under this Section is allowed only
16 for returns that are filed in the manner required by this Act.
17 The Department may disallow the discount for retailers whose
18 certificate of registration is revoked at the time the return
19 is filed, but only if the Department's decision to revoke the
20 certificate of registration has become final. A retailer need
21 not remit that part of any tax collected by him to the extent
22 that he is required to remit and does remit the tax imposed by
23 the Retailers' Occupation Tax Act, with respect to the sale of
24 the same property.
25 Where such tangible personal property is sold under a
26 conditional sales contract, or under any other form of sale
HB2755 Enrolled - 764 - LRB104 08253 BDA 18303 b
1 wherein the payment of the principal sum, or a part thereof, is
2 extended beyond the close of the period for which the return is
3 filed, the retailer, in collecting the tax (except as to motor
4 vehicles, watercraft, aircraft, and trailers that are required
5 to be registered with an agency of this State), may collect for
6 each tax return period only the tax applicable to that part of
7 the selling price actually received during such tax return
8 period.
9 In the case of leases, except as otherwise provided in
10 this Act, the lessor, in collecting the tax, may collect for
11 each tax return period only the tax applicable to that part of
12 the selling price actually received during such tax return
13 period.
14 Except as provided in this Section, on or before the
15 twentieth day of each calendar month, such retailer shall file
16 a return for the preceding calendar month. Such return shall
17 be filed on forms prescribed by the Department and shall
18 furnish such information as the Department may reasonably
19 require. The return shall include the gross receipts on food
20 for human consumption that is to be consumed off the premises
21 where it is sold (other than alcoholic beverages, food
22 consisting of or infused with adult use cannabis, soft drinks,
23 and food that has been prepared for immediate consumption)
24 which were received during the preceding calendar month,
25 quarter, or year, as appropriate, and upon which tax would
26 have been due but for the 0% rate imposed under Public Act
HB2755 Enrolled - 765 - LRB104 08253 BDA 18303 b
1 102-700. The return shall also include the amount of tax that
2 would have been due on food for human consumption that is to be
3 consumed off the premises where it is sold (other than
4 alcoholic beverages, food consisting of or infused with adult
5 use cannabis, soft drinks, and food that has been prepared for
6 immediate consumption) but for the 0% rate imposed under
7 Public Act 102-700.
8 On and after January 1, 2018, except for returns required
9 to be filed prior to January 1, 2023 for motor vehicles,
10 watercraft, aircraft, and trailers that are required to be
11 registered with an agency of this State, with respect to
12 retailers whose annual gross receipts average $20,000 or more,
13 all returns required to be filed pursuant to this Act shall be
14 filed electronically. On and after January 1, 2023, with
15 respect to retailers whose annual gross receipts average
16 $20,000 or more, all returns required to be filed pursuant to
17 this Act, including, but not limited to, returns for motor
18 vehicles, watercraft, aircraft, and trailers that are required
19 to be registered with an agency of this State, shall be filed
20 electronically. Retailers who demonstrate that they do not
21 have access to the Internet or demonstrate hardship in filing
22 electronically may petition the Department to waive the
23 electronic filing requirement.
24 The Department may require returns to be filed on a
25 quarterly basis. If so required, a return for each calendar
26 quarter shall be filed on or before the twentieth day of the
HB2755 Enrolled - 766 - LRB104 08253 BDA 18303 b
1 calendar month following the end of such calendar quarter. The
2 taxpayer shall also file a return with the Department for each
3 of the first two months of each calendar quarter, on or before
4 the twentieth day of the following calendar month, stating:
5 1. The name of the seller;
6 2. The address of the principal place of business from
7 which he engages in the business of selling tangible
8 personal property at retail in this State;
9 3. The total amount of taxable receipts received by
10 him during the preceding calendar month from sales of
11 tangible personal property by him during such preceding
12 calendar month, including receipts from charge and time
13 sales, but less all deductions allowed by law;
14 4. The amount of credit provided in Section 2d of this
15 Act;
16 5. The amount of tax due;
17 5-5. The signature of the taxpayer; and
18 6. Such other reasonable information as the Department
19 may require.
20 Each retailer required or authorized to collect the tax
21 imposed by this Act on aviation fuel sold at retail in this
22 State during the preceding calendar month shall, instead of
23 reporting and paying tax on aviation fuel as otherwise
24 required by this Section, report and pay such tax on a separate
25 aviation fuel tax return. The requirements related to the
26 return shall be as otherwise provided in this Section.
HB2755 Enrolled - 767 - LRB104 08253 BDA 18303 b
1 Notwithstanding any other provisions of this Act to the
2 contrary, retailers collecting tax on aviation fuel shall file
3 all aviation fuel tax returns and shall make all aviation fuel
4 tax payments by electronic means in the manner and form
5 required by the Department. For purposes of this Section,
6 "aviation fuel" means jet fuel and aviation gasoline.
7 If a taxpayer fails to sign a return within 30 days after
8 the proper notice and demand for signature by the Department,
9 the return shall be considered valid and any amount shown to be
10 due on the return shall be deemed assessed.
11 Notwithstanding any other provision of this Act to the
12 contrary, retailers subject to tax on cannabis shall file all
13 cannabis tax returns and shall make all cannabis tax payments
14 by electronic means in the manner and form required by the
15 Department.
16 Beginning October 1, 1993, a taxpayer who has an average
17 monthly tax liability of $150,000 or more shall make all
18 payments required by rules of the Department by electronic
19 funds transfer. Beginning October 1, 1994, a taxpayer who has
20 an average monthly tax liability of $100,000 or more shall
21 make all payments required by rules of the Department by
22 electronic funds transfer. Beginning October 1, 1995, a
23 taxpayer who has an average monthly tax liability of $50,000
24 or more shall make all payments required by rules of the
25 Department by electronic funds transfer. Beginning October 1,
26 2000, a taxpayer who has an annual tax liability of $200,000 or
HB2755 Enrolled - 768 - LRB104 08253 BDA 18303 b
1 more shall make all payments required by rules of the
2 Department by electronic funds transfer. The term "annual tax
3 liability" shall be the sum of the taxpayer's liabilities
4 under this Act, and under all other State and local occupation
5 and use tax laws administered by the Department, for the
6 immediately preceding calendar year. The term "average monthly
7 tax liability" means the sum of the taxpayer's liabilities
8 under this Act, and under all other State and local occupation
9 and use tax laws administered by the Department, for the
10 immediately preceding calendar year divided by 12. Beginning
11 on October 1, 2002, a taxpayer who has a tax liability in the
12 amount set forth in subsection (b) of Section 2505-210 of the
13 Department of Revenue Law shall make all payments required by
14 rules of the Department by electronic funds transfer.
15 Before August 1 of each year beginning in 1993, the
16 Department shall notify all taxpayers required to make
17 payments by electronic funds transfer. All taxpayers required
18 to make payments by electronic funds transfer shall make those
19 payments for a minimum of one year beginning on October 1.
20 Any taxpayer not required to make payments by electronic
21 funds transfer may make payments by electronic funds transfer
22 with the permission of the Department.
23 All taxpayers required to make payment by electronic funds
24 transfer and any taxpayers authorized to voluntarily make
25 payments by electronic funds transfer shall make those
26 payments in the manner authorized by the Department.
HB2755 Enrolled - 769 - LRB104 08253 BDA 18303 b
1 The Department shall adopt such rules as are necessary to
2 effectuate a program of electronic funds transfer and the
3 requirements of this Section.
4 Before October 1, 2000, if the taxpayer's average monthly
5 tax liability to the Department under this Act, the Retailers'
6 Occupation Tax Act, the Service Occupation Tax Act, the
7 Service Use Tax Act was $10,000 or more during the preceding 4
8 complete calendar quarters, he shall file a return with the
9 Department each month by the 20th day of the month next
10 following the month during which such tax liability is
11 incurred and shall make payments to the Department on or
12 before the 7th, 15th, 22nd and last day of the month during
13 which such liability is incurred. On and after October 1,
14 2000, if the taxpayer's average monthly tax liability to the
15 Department under this Act, the Retailers' Occupation Tax Act,
16 the Service Occupation Tax Act, and the Service Use Tax Act was
17 $20,000 or more during the preceding 4 complete calendar
18 quarters, he shall file a return with the Department each
19 month by the 20th day of the month next following the month
20 during which such tax liability is incurred and shall make
21 payment to the Department on or before the 7th, 15th, 22nd and
22 last day of the month during which such liability is incurred.
23 If the month during which such tax liability is incurred began
24 prior to January 1, 1985, each payment shall be in an amount
25 equal to 1/4 of the taxpayer's actual liability for the month
26 or an amount set by the Department not to exceed 1/4 of the
HB2755 Enrolled - 770 - LRB104 08253 BDA 18303 b
1 average monthly liability of the taxpayer to the Department
2 for the preceding 4 complete calendar quarters (excluding the
3 month of highest liability and the month of lowest liability
4 in such 4 quarter period). If the month during which such tax
5 liability is incurred begins on or after January 1, 1985, and
6 prior to January 1, 1987, each payment shall be in an amount
7 equal to 22.5% of the taxpayer's actual liability for the
8 month or 27.5% of the taxpayer's liability for the same
9 calendar month of the preceding year. If the month during
10 which such tax liability is incurred begins on or after
11 January 1, 1987, and prior to January 1, 1988, each payment
12 shall be in an amount equal to 22.5% of the taxpayer's actual
13 liability for the month or 26.25% of the taxpayer's liability
14 for the same calendar month of the preceding year. If the month
15 during which such tax liability is incurred begins on or after
16 January 1, 1988, and prior to January 1, 1989, or begins on or
17 after January 1, 1996, each payment shall be in an amount equal
18 to 22.5% of the taxpayer's actual liability for the month or
19 25% of the taxpayer's liability for the same calendar month of
20 the preceding year. If the month during which such tax
21 liability is incurred begins on or after January 1, 1989, and
22 prior to January 1, 1996, each payment shall be in an amount
23 equal to 22.5% of the taxpayer's actual liability for the
24 month or 25% of the taxpayer's liability for the same calendar
25 month of the preceding year or 100% of the taxpayer's actual
26 liability for the quarter monthly reporting period. The amount
HB2755 Enrolled - 771 - LRB104 08253 BDA 18303 b
1 of such quarter monthly payments shall be credited against the
2 final tax liability of the taxpayer's return for that month.
3 Before October 1, 2000, once applicable, the requirement of
4 the making of quarter monthly payments to the Department shall
5 continue until such taxpayer's average monthly liability to
6 the Department during the preceding 4 complete calendar
7 quarters (excluding the month of highest liability and the
8 month of lowest liability) is less than $9,000, or until such
9 taxpayer's average monthly liability to the Department as
10 computed for each calendar quarter of the 4 preceding complete
11 calendar quarter period is less than $10,000. However, if a
12 taxpayer can show the Department that a substantial change in
13 the taxpayer's business has occurred which causes the taxpayer
14 to anticipate that his average monthly tax liability for the
15 reasonably foreseeable future will fall below the $10,000
16 threshold stated above, then such taxpayer may petition the
17 Department for change in such taxpayer's reporting status. On
18 and after October 1, 2000, once applicable, the requirement of
19 the making of quarter monthly payments to the Department shall
20 continue until such taxpayer's average monthly liability to
21 the Department during the preceding 4 complete calendar
22 quarters (excluding the month of highest liability and the
23 month of lowest liability) is less than $19,000 or until such
24 taxpayer's average monthly liability to the Department as
25 computed for each calendar quarter of the 4 preceding complete
26 calendar quarter period is less than $20,000. However, if a
HB2755 Enrolled - 772 - LRB104 08253 BDA 18303 b
1 taxpayer can show the Department that a substantial change in
2 the taxpayer's business has occurred which causes the taxpayer
3 to anticipate that his average monthly tax liability for the
4 reasonably foreseeable future will fall below the $20,000
5 threshold stated above, then such taxpayer may petition the
6 Department for a change in such taxpayer's reporting status.
7 The Department shall change such taxpayer's reporting status
8 unless it finds that such change is seasonal in nature and not
9 likely to be long term. Quarter monthly payment status shall
10 be determined under this paragraph as if the rate reduction to
11 1.25% in Public Act 102-700 on sales tax holiday items had not
12 occurred. For quarter monthly payments due on or after July 1,
13 2023 and through June 30, 2024, "25% of the taxpayer's
14 liability for the same calendar month of the preceding year"
15 shall be determined as if the rate reduction to 1.25% in Public
16 Act 102-700 on sales tax holiday items had not occurred.
17 Quarter monthly payment status shall be determined under this
18 paragraph as if the rate reduction to 0% in Public Act 102-700
19 on food for human consumption that is to be consumed off the
20 premises where it is sold (other than alcoholic beverages,
21 food consisting of or infused with adult use cannabis, soft
22 drinks, and food that has been prepared for immediate
23 consumption) had not occurred. For quarter monthly payments
24 due under this paragraph on or after July 1, 2023 and through
25 June 30, 2024, "25% of the taxpayer's liability for the same
26 calendar month of the preceding year" shall be determined as
HB2755 Enrolled - 773 - LRB104 08253 BDA 18303 b
1 if the rate reduction to 0% in Public Act 102-700 had not
2 occurred. If any such quarter monthly payment is not paid at
3 the time or in the amount required by this Section, then the
4 taxpayer shall be liable for penalties and interest on the
5 difference between the minimum amount due and the amount of
6 such quarter monthly payment actually and timely paid, except
7 insofar as the taxpayer has previously made payments for that
8 month to the Department in excess of the minimum payments
9 previously due as provided in this Section. The Department
10 shall make reasonable rules and regulations to govern the
11 quarter monthly payment amount and quarter monthly payment
12 dates for taxpayers who file on other than a calendar monthly
13 basis.
14 If any such payment provided for in this Section exceeds
15 the taxpayer's liabilities under this Act, the Retailers'
16 Occupation Tax Act, the Service Occupation Tax Act and the
17 Service Use Tax Act, as shown by an original monthly return,
18 the Department shall issue to the taxpayer a credit memorandum
19 no later than 30 days after the date of payment, which
20 memorandum may be submitted by the taxpayer to the Department
21 in payment of tax liability subsequently to be remitted by the
22 taxpayer to the Department or be assigned by the taxpayer to a
23 similar taxpayer under this Act, the Retailers' Occupation Tax
24 Act, the Service Occupation Tax Act or the Service Use Tax Act,
25 in accordance with reasonable rules and regulations to be
26 prescribed by the Department, except that if such excess
HB2755 Enrolled - 774 - LRB104 08253 BDA 18303 b
1 payment is shown on an original monthly return and is made
2 after December 31, 1986, no credit memorandum shall be issued,
3 unless requested by the taxpayer. If no such request is made,
4 the taxpayer may credit such excess payment against tax
5 liability subsequently to be remitted by the taxpayer to the
6 Department under this Act, the Retailers' Occupation Tax Act,
7 the Service Occupation Tax Act or the Service Use Tax Act, in
8 accordance with reasonable rules and regulations prescribed by
9 the Department. If the Department subsequently determines that
10 all or any part of the credit taken was not actually due to the
11 taxpayer, the taxpayer's vendor's discount shall be reduced,
12 if necessary, to reflect the difference between the credit
13 taken and that actually due, and the taxpayer shall be liable
14 for penalties and interest on such difference.
15 If the retailer is otherwise required to file a monthly
16 return and if the retailer's average monthly tax liability to
17 the Department does not exceed $200, the Department may
18 authorize his returns to be filed on a quarter annual basis,
19 with the return for January, February, and March of a given
20 year being due by April 20 of such year; with the return for
21 April, May and June of a given year being due by July 20 of
22 such year; with the return for July, August and September of a
23 given year being due by October 20 of such year, and with the
24 return for October, November and December of a given year
25 being due by January 20 of the following year.
26 If the retailer is otherwise required to file a monthly or
HB2755 Enrolled - 775 - LRB104 08253 BDA 18303 b
1 quarterly return and if the retailer's average monthly tax
2 liability to the Department does not exceed $50, the
3 Department may authorize his returns to be filed on an annual
4 basis, with the return for a given year being due by January 20
5 of the following year.
6 Such quarter annual and annual returns, as to form and
7 substance, shall be subject to the same requirements as
8 monthly returns.
9 Notwithstanding any other provision in this Act concerning
10 the time within which a retailer may file his return, in the
11 case of any retailer who ceases to engage in a kind of business
12 which makes him responsible for filing returns under this Act,
13 such retailer shall file a final return under this Act with the
14 Department not more than one month after discontinuing such
15 business.
16 In addition, with respect to motor vehicles, watercraft,
17 aircraft, and trailers that are required to be registered with
18 an agency of this State, except as otherwise provided in this
19 Section, every retailer selling this kind of tangible personal
20 property shall file, with the Department, upon a form to be
21 prescribed and supplied by the Department, a separate return
22 for each such item of tangible personal property which the
23 retailer sells, except that if, in the same transaction, (i) a
24 retailer of aircraft, watercraft, motor vehicles or trailers
25 transfers more than one aircraft, watercraft, motor vehicle or
26 trailer to another aircraft, watercraft, motor vehicle or
HB2755 Enrolled - 776 - LRB104 08253 BDA 18303 b
1 trailer retailer for the purpose of resale or (ii) a retailer
2 of aircraft, watercraft, motor vehicles, or trailers transfers
3 more than one aircraft, watercraft, motor vehicle, or trailer
4 to a purchaser for use as a qualifying rolling stock as
5 provided in Section 3-55 of this Act, then that seller may
6 report the transfer of all the aircraft, watercraft, motor
7 vehicles or trailers involved in that transaction to the
8 Department on the same uniform invoice-transaction reporting
9 return form. For purposes of this Section, "watercraft" means
10 a Class 2, Class 3, or Class 4 watercraft as defined in Section
11 3-2 of the Boat Registration and Safety Act, a personal
12 watercraft, or any boat equipped with an inboard motor.
13 In addition, with respect to motor vehicles, watercraft,
14 aircraft, and trailers that are required to be registered with
15 an agency of this State, every person who is engaged in the
16 business of leasing or renting such items and who, in
17 connection with such business, sells any such item to a
18 retailer for the purpose of resale is, notwithstanding any
19 other provision of this Section to the contrary, authorized to
20 meet the return-filing requirement of this Act by reporting
21 the transfer of all the aircraft, watercraft, motor vehicles,
22 or trailers transferred for resale during a month to the
23 Department on the same uniform invoice-transaction reporting
24 return form on or before the 20th of the month following the
25 month in which the transfer takes place. Notwithstanding any
26 other provision of this Act to the contrary, all returns filed
HB2755 Enrolled - 777 - LRB104 08253 BDA 18303 b
1 under this paragraph must be filed by electronic means in the
2 manner and form as required by the Department.
3 The transaction reporting return in the case of motor
4 vehicles or trailers that are required to be registered with
5 an agency of this State, shall be the same document as the
6 Uniform Invoice referred to in Section 5-402 of the Illinois
7 Vehicle Code and must show the name and address of the seller;
8 the name and address of the purchaser; the amount of the
9 selling price including the amount allowed by the retailer for
10 traded-in property, if any; the amount allowed by the retailer
11 for the traded-in tangible personal property, if any, to the
12 extent to which Section 2 of this Act allows an exemption for
13 the value of traded-in property; the balance payable after
14 deducting such trade-in allowance from the total selling
15 price; the amount of tax due from the retailer with respect to
16 such transaction; the amount of tax collected from the
17 purchaser by the retailer on such transaction (or satisfactory
18 evidence that such tax is not due in that particular instance,
19 if that is claimed to be the fact); the place and date of the
20 sale; a sufficient identification of the property sold; such
21 other information as is required in Section 5-402 of the
22 Illinois Vehicle Code, and such other information as the
23 Department may reasonably require.
24 The transaction reporting return in the case of watercraft
25 and aircraft must show the name and address of the seller; the
26 name and address of the purchaser; the amount of the selling
HB2755 Enrolled - 778 - LRB104 08253 BDA 18303 b
1 price including the amount allowed by the retailer for
2 traded-in property, if any; the amount allowed by the retailer
3 for the traded-in tangible personal property, if any, to the
4 extent to which Section 2 of this Act allows an exemption for
5 the value of traded-in property; the balance payable after
6 deducting such trade-in allowance from the total selling
7 price; the amount of tax due from the retailer with respect to
8 such transaction; the amount of tax collected from the
9 purchaser by the retailer on such transaction (or satisfactory
10 evidence that such tax is not due in that particular instance,
11 if that is claimed to be the fact); the place and date of the
12 sale, a sufficient identification of the property sold, and
13 such other information as the Department may reasonably
14 require.
15 Such transaction reporting return shall be filed not later
16 than 20 days after the date of delivery of the item that is
17 being sold, but may be filed by the retailer at any time sooner
18 than that if he chooses to do so. The transaction reporting
19 return and tax remittance or proof of exemption from the tax
20 that is imposed by this Act may be transmitted to the
21 Department by way of the State agency with which, or State
22 officer with whom, the tangible personal property must be
23 titled or registered (if titling or registration is required)
24 if the Department and such agency or State officer determine
25 that this procedure will expedite the processing of
26 applications for title or registration.
HB2755 Enrolled - 779 - LRB104 08253 BDA 18303 b
1 With each such transaction reporting return, the retailer
2 shall remit the proper amount of tax due (or shall submit
3 satisfactory evidence that the sale is not taxable if that is
4 the case), to the Department or its agents, whereupon the
5 Department shall issue, in the purchaser's name, a tax receipt
6 (or a certificate of exemption if the Department is satisfied
7 that the particular sale is tax exempt) which such purchaser
8 may submit to the agency with which, or State officer with
9 whom, he must title or register the tangible personal property
10 that is involved (if titling or registration is required) in
11 support of such purchaser's application for an Illinois
12 certificate or other evidence of title or registration to such
13 tangible personal property.
14 No retailer's failure or refusal to remit tax under this
15 Act precludes a user, who has paid the proper tax to the
16 retailer, from obtaining his certificate of title or other
17 evidence of title or registration (if titling or registration
18 is required) upon satisfying the Department that such user has
19 paid the proper tax (if tax is due) to the retailer. The
20 Department shall adopt appropriate rules to carry out the
21 mandate of this paragraph.
22 If the user who would otherwise pay tax to the retailer
23 wants the transaction reporting return filed and the payment
24 of tax or proof of exemption made to the Department before the
25 retailer is willing to take these actions and such user has not
26 paid the tax to the retailer, such user may certify to the fact
HB2755 Enrolled - 780 - LRB104 08253 BDA 18303 b
1 of such delay by the retailer, and may (upon the Department
2 being satisfied of the truth of such certification) transmit
3 the information required by the transaction reporting return
4 and the remittance for tax or proof of exemption directly to
5 the Department and obtain his tax receipt or exemption
6 determination, in which event the transaction reporting return
7 and tax remittance (if a tax payment was required) shall be
8 credited by the Department to the proper retailer's account
9 with the Department, but without the vendor's discount
10 provided for in this Section being allowed. When the user pays
11 the tax directly to the Department, he shall pay the tax in the
12 same amount and in the same form in which it would be remitted
13 if the tax had been remitted to the Department by the retailer.
14 On and after January 1, 2025, with respect to the lease of
15 trailers, other than semitrailers as defined in Section 1-187
16 of the Illinois Vehicle Code, that are required to be
17 registered with an agency of this State and that are subject to
18 the tax on lease receipts under this Act, notwithstanding any
19 other provision of this Act to the contrary, for the purpose of
20 reporting and paying tax under this Act on those lease
21 receipts, lessors shall file returns in addition to and
22 separate from the transaction reporting return. Lessors shall
23 file those lease returns and make payment to the Department by
24 electronic means on or before the 20th day of each month
25 following the month, quarter, or year, as applicable, in which
26 lease receipts were received. All lease receipts received by
HB2755 Enrolled - 781 - LRB104 08253 BDA 18303 b
1 the lessor from the lease of those trailers during the same
2 reporting period shall be reported and tax shall be paid on a
3 single return form to be prescribed by the Department.
4 Where a retailer collects the tax with respect to the
5 selling price of tangible personal property which he sells and
6 the purchaser thereafter returns such tangible personal
7 property and the retailer refunds the selling price thereof to
8 the purchaser, such retailer shall also refund, to the
9 purchaser, the tax so collected from the purchaser. When
10 filing his return for the period in which he refunds such tax
11 to the purchaser, the retailer may deduct the amount of the tax
12 so refunded by him to the purchaser from any other use tax
13 which such retailer may be required to pay or remit to the
14 Department, as shown by such return, if the amount of the tax
15 to be deducted was previously remitted to the Department by
16 such retailer. If the retailer has not previously remitted the
17 amount of such tax to the Department, he is entitled to no
18 deduction under this Act upon refunding such tax to the
19 purchaser.
20 Any retailer filing a return under this Section shall also
21 include (for the purpose of paying tax thereon) the total tax
22 covered by such return upon the selling price of tangible
23 personal property purchased by him at retail from a retailer,
24 but as to which the tax imposed by this Act was not collected
25 from the retailer filing such return, and such retailer shall
26 remit the amount of such tax to the Department when filing such
HB2755 Enrolled - 782 - LRB104 08253 BDA 18303 b
1 return.
2 If experience indicates such action to be practicable, the
3 Department may prescribe and furnish a combination or joint
4 return which will enable retailers, who are required to file
5 returns hereunder and also under the Retailers' Occupation Tax
6 Act, to furnish all the return information required by both
7 Acts on the one form.
8 Where the retailer has more than one business registered
9 with the Department under separate registration under this
10 Act, such retailer may not file each return that is due as a
11 single return covering all such registered businesses, but
12 shall file separate returns for each such registered business.
13 Beginning January 1, 1990, each month the Department shall
14 pay into the State and Local Sales Tax Reform Fund, a special
15 fund in the State Treasury which is hereby created, the net
16 revenue realized for the preceding month from the 1% tax
17 imposed under this Act.
18 Beginning January 1, 1990, each month the Department shall
19 pay into the County and Mass Transit District Fund 4% of the
20 net revenue realized for the preceding month from the 6.25%
21 general rate on the selling price of tangible personal
22 property which is purchased outside Illinois at retail from a
23 retailer and which is titled or registered by an agency of this
24 State's government.
25 Beginning January 1, 1990, each month the Department shall
26 pay into the State and Local Sales Tax Reform Fund, a special
HB2755 Enrolled - 783 - LRB104 08253 BDA 18303 b
1 fund in the State Treasury, 20% of the net revenue realized for
2 the preceding month from the 6.25% general rate on the selling
3 price of tangible personal property, other than (i) tangible
4 personal property which is purchased outside Illinois at
5 retail from a retailer and which is titled or registered by an
6 agency of this State's government and (ii) aviation fuel sold
7 on or after December 1, 2019. This exception for aviation fuel
8 only applies for so long as the revenue use requirements of 49
9 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
10 For aviation fuel sold on or after December 1, 2019, each
11 month the Department shall pay into the State Aviation Program
12 Fund 20% of the net revenue realized for the preceding month
13 from the 6.25% general rate on the selling price of aviation
14 fuel, less an amount estimated by the Department to be
15 required for refunds of the 20% portion of the tax on aviation
16 fuel under this Act, which amount shall be deposited into the
17 Aviation Fuel Sales Tax Refund Fund. The Department shall only
18 pay moneys into the State Aviation Program Fund and the
19 Aviation Fuels Sales Tax Refund Fund under this Act for so long
20 as the revenue use requirements of 49 U.S.C. 47107(b) and 49
21 U.S.C. 47133 are binding on the State.
22 Beginning August 1, 2000, each month the Department shall
23 pay into the State and Local Sales Tax Reform Fund 100% of the
24 net revenue realized for the preceding month from the 1.25%
25 rate on the selling price of motor fuel and gasohol. If, in any
26 month, the tax on sales tax holiday items, as defined in
HB2755 Enrolled - 784 - LRB104 08253 BDA 18303 b
1 Section 3-6, is imposed at the rate of 1.25%, then the
2 Department shall pay 100% of the net revenue realized for that
3 month from the 1.25% rate on the selling price of sales tax
4 holiday items into the State and Local Sales Tax Reform Fund.
5 Beginning January 1, 1990, each month the Department shall
6 pay into the Local Government Tax Fund 16% of the net revenue
7 realized for the preceding month from the 6.25% general rate
8 on the selling price of tangible personal property which is
9 purchased outside Illinois at retail from a retailer and which
10 is titled or registered by an agency of this State's
11 government.
12 Beginning October 1, 2009, each month the Department shall
13 pay into the Capital Projects Fund an amount that is equal to
14 an amount estimated by the Department to represent 80% of the
15 net revenue realized for the preceding month from the sale of
16 candy, grooming and hygiene products, and soft drinks that had
17 been taxed at a rate of 1% prior to September 1, 2009 but that
18 are now taxed at 6.25%.
19 Beginning July 1, 2011, each month the Department shall
20 pay into the Clean Air Act Permit Fund 80% of the net revenue
21 realized for the preceding month from the 6.25% general rate
22 on the selling price of sorbents used in Illinois in the
23 process of sorbent injection as used to comply with the
24 Environmental Protection Act or the federal Clean Air Act, but
25 the total payment into the Clean Air Act Permit Fund under this
26 Act and the Retailers' Occupation Tax Act shall not exceed
HB2755 Enrolled - 785 - LRB104 08253 BDA 18303 b
1 $2,000,000 in any fiscal year.
2 Beginning July 1, 2013, each month the Department shall
3 pay into the Underground Storage Tank Fund from the proceeds
4 collected under this Act, the Service Use Tax Act, the Service
5 Occupation Tax Act, and the Retailers' Occupation Tax Act an
6 amount equal to the average monthly deficit in the Underground
7 Storage Tank Fund during the prior year, as certified annually
8 by the Illinois Environmental Protection Agency, but the total
9 payment into the Underground Storage Tank Fund under this Act,
10 the Service Use Tax Act, the Service Occupation Tax Act, and
11 the Retailers' Occupation Tax Act shall not exceed $18,000,000
12 in any State fiscal year. As used in this paragraph, the
13 "average monthly deficit" shall be equal to the difference
14 between the average monthly claims for payment by the fund and
15 the average monthly revenues deposited into the fund,
16 excluding payments made pursuant to this paragraph.
17 Beginning July 1, 2015, of the remainder of the moneys
18 received by the Department under this Act, the Service Use Tax
19 Act, the Service Occupation Tax Act, and the Retailers'
20 Occupation Tax Act, each month the Department shall deposit
21 $500,000 into the State Crime Laboratory Fund.
22 Of the remainder of the moneys received by the Department
23 pursuant to this Act, (a) 1.75% thereof shall be paid into the
24 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
25 and after July 1, 1989, 3.8% thereof shall be paid into the
26 Build Illinois Fund; provided, however, that if in any fiscal
HB2755 Enrolled - 786 - LRB104 08253 BDA 18303 b
1 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
2 may be, of the moneys received by the Department and required
3 to be paid into the Build Illinois Fund pursuant to Section 3
4 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
5 Act, Section 9 of the Service Use Tax Act, and Section 9 of the
6 Service Occupation Tax Act, such Acts being hereinafter called
7 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
8 may be, of moneys being hereinafter called the "Tax Act
9 Amount", and (2) the amount transferred to the Build Illinois
10 Fund from the State and Local Sales Tax Reform Fund shall be
11 less than the Annual Specified Amount (as defined in Section 3
12 of the Retailers' Occupation Tax Act), an amount equal to the
13 difference shall be immediately paid into the Build Illinois
14 Fund from other moneys received by the Department pursuant to
15 the Tax Acts; and further provided, that if on the last
16 business day of any month the sum of (1) the Tax Act Amount
17 required to be deposited into the Build Illinois Bond Account
18 in the Build Illinois Fund during such month and (2) the amount
19 transferred during such month to the Build Illinois Fund from
20 the State and Local Sales Tax Reform Fund shall have been less
21 than 1/12 of the Annual Specified Amount, an amount equal to
22 the difference shall be immediately paid into the Build
23 Illinois Fund from other moneys received by the Department
24 pursuant to the Tax Acts; and, further provided, that in no
25 event shall the payments required under the preceding proviso
26 result in aggregate payments into the Build Illinois Fund
HB2755 Enrolled - 787 - LRB104 08253 BDA 18303 b
1 pursuant to this clause (b) for any fiscal year in excess of
2 the greater of (i) the Tax Act Amount or (ii) the Annual
3 Specified Amount for such fiscal year; and, further provided,
4 that the amounts payable into the Build Illinois Fund under
5 this clause (b) shall be payable only until such time as the
6 aggregate amount on deposit under each trust indenture
7 securing Bonds issued and outstanding pursuant to the Build
8 Illinois Bond Act is sufficient, taking into account any
9 future investment income, to fully provide, in accordance with
10 such indenture, for the defeasance of or the payment of the
11 principal of, premium, if any, and interest on the Bonds
12 secured by such indenture and on any Bonds expected to be
13 issued thereafter and all fees and costs payable with respect
14 thereto, all as certified by the Director of the Bureau of the
15 Budget (now Governor's Office of Management and Budget). If on
16 the last business day of any month in which Bonds are
17 outstanding pursuant to the Build Illinois Bond Act, the
18 aggregate of the moneys deposited in the Build Illinois Bond
19 Account in the Build Illinois Fund in such month shall be less
20 than the amount required to be transferred in such month from
21 the Build Illinois Bond Account to the Build Illinois Bond
22 Retirement and Interest Fund pursuant to Section 13 of the
23 Build Illinois Bond Act, an amount equal to such deficiency
24 shall be immediately paid from other moneys received by the
25 Department pursuant to the Tax Acts to the Build Illinois
26 Fund; provided, however, that any amounts paid to the Build
HB2755 Enrolled - 788 - LRB104 08253 BDA 18303 b
1 Illinois Fund in any fiscal year pursuant to this sentence
2 shall be deemed to constitute payments pursuant to clause (b)
3 of the preceding sentence and shall reduce the amount
4 otherwise payable for such fiscal year pursuant to clause (b)
5 of the preceding sentence. The moneys received by the
6 Department pursuant to this Act and required to be deposited
7 into the Build Illinois Fund are subject to the pledge, claim
8 and charge set forth in Section 12 of the Build Illinois Bond
9 Act.
10 Subject to payment of amounts into the Build Illinois Fund
11 as provided in the preceding paragraph or in any amendment
12 thereto hereafter enacted, the following specified monthly
13 installment of the amount requested in the certificate of the
14 Chairman of the Metropolitan Pier and Exposition Authority
15 provided under Section 8.25f of the State Finance Act, but not
16 in excess of the sums designated as "Total Deposit", shall be
17 deposited in the aggregate from collections under Section 9 of
18 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
19 9 of the Service Occupation Tax Act, and Section 3 of the
20 Retailers' Occupation Tax Act into the McCormick Place
21 Expansion Project Fund in the specified fiscal years.
22 Fiscal Year Total Deposit
23 1993 $0
24 1994 53,000,000
25 1995 58,000,000
26 1996 61,000,000
HB2755 Enrolled - 789 - LRB104 08253 BDA 18303 b
1 1997 64,000,000
68,000,000
2 1998 71,000,000
75,000,000
3 1999 80,000,000
93,000,000
4 2000 99,000,000
103,000,000
5 2001 108,000,000
113,000,000
6 2002 119,000,000
126,000,000
7 2003 132,000,000
139,000,000
8 2004 146,000,000
153,000,000
9 2005 161,000,000
170,000,000
10 2006 179,000,000
189,000,000
11 2007 199,000,000
210,000,000
12 2008 221,000,000
233,000,000
13 2009 300,000,000
300,000,000
14 2010
15 2011
16 2012
17 2013
18 2014
19 2015
20 2016
21 2017
22 2018
23 2019
24 2020
25 2021
26 2022
HB2755 Enrolled - 790 - LRB104 08253 BDA 18303 b
1 2023 300,000,000
2 2024 300,000,000
3 2025 300,000,000
4 2026 300,000,000
5 2027 375,000,000
6 2028 375,000,000
7 2029 375,000,000
8 2030 375,000,000
9 2031 375,000,000
10 2032 375,000,000
11 2033 375,000,000
12 2034 375,000,000
13 2035 375,000,000
14 2036 450,000,000
15 and
16 each fiscal year
17 thereafter that bonds
18 are outstanding under
19 Section 13.2 of the
20 Metropolitan Pier and
21 Exposition Authority Act,
22 but not after fiscal year 2060.
23 Beginning July 20, 1993 and in each month of each fiscal
24 year thereafter, one-eighth of the amount requested in the
25 certificate of the Chairman of the Metropolitan Pier and
26 Exposition Authority for that fiscal year, less the amount
HB2755 Enrolled - 791 - LRB104 08253 BDA 18303 b
1 deposited into the McCormick Place Expansion Project Fund by
2 the State Treasurer in the respective month under subsection
3 (g) of Section 13 of the Metropolitan Pier and Exposition
4 Authority Act, plus cumulative deficiencies in the deposits
5 required under this Section for previous months and years,
6 shall be deposited into the McCormick Place Expansion Project
7 Fund, until the full amount requested for the fiscal year, but
8 not in excess of the amount specified above as "Total
9 Deposit", has been deposited.
10 Subject to payment of amounts into the Capital Projects
11 Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
12 and the McCormick Place Expansion Project Fund pursuant to the
13 preceding paragraphs or in any amendments thereto hereafter
14 enacted, for aviation fuel sold on or after December 1, 2019,
15 the Department shall each month deposit into the Aviation Fuel
16 Sales Tax Refund Fund an amount estimated by the Department to
17 be required for refunds of the 80% portion of the tax on
18 aviation fuel under this Act. The Department shall only
19 deposit moneys into the Aviation Fuel Sales Tax Refund Fund
20 under this paragraph for so long as the revenue use
21 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
22 binding on the State.
23 Subject to payment of amounts into the Build Illinois Fund
24 and the McCormick Place Expansion Project Fund pursuant to the
25 preceding paragraphs or in any amendments thereto hereafter
26 enacted, beginning July 1, 1993 and ending on September 30,
HB2755 Enrolled - 792 - LRB104 08253 BDA 18303 b
1 2013, the Department shall each month pay into the Illinois
2 Tax Increment Fund 0.27% of 80% of the net revenue realized for
3 the preceding month from the 6.25% general rate on the selling
4 price of tangible personal property.
5 Subject to payment of amounts into the Build Illinois
6 Fund, the McCormick Place Expansion Project Fund, the Illinois
7 Tax Increment Fund, and the Energy Infrastructure Fund
8 pursuant to the preceding paragraphs or in any amendments to
9 this Section hereafter enacted, beginning on the first day of
10 the first calendar month to occur on or after August 26, 2014
11 (the effective date of Public Act 98-1098), each month, from
12 the collections made under Section 9 of the Use Tax Act,
13 Section 9 of the Service Use Tax Act, Section 9 of the Service
14 Occupation Tax Act, and Section 3 of the Retailers' Occupation
15 Tax Act, the Department shall pay into the Tax Compliance and
16 Administration Fund, to be used, subject to appropriation, to
17 fund additional auditors and compliance personnel at the
18 Department of Revenue, an amount equal to 1/12 of 5% of 80% of
19 the cash receipts collected during the preceding fiscal year
20 by the Audit Bureau of the Department under the Use Tax Act,
21 the Service Use Tax Act, the Service Occupation Tax Act, the
22 Retailers' Occupation Tax Act, and associated local occupation
23 and use taxes administered by the Department.
24 Subject to payments of amounts into the Build Illinois
25 Fund, the McCormick Place Expansion Project Fund, the Illinois
26 Tax Increment Fund, and the Tax Compliance and Administration
HB2755 Enrolled - 793 - LRB104 08253 BDA 18303 b
1 Fund as provided in this Section, beginning on July 1, 2018 the
2 Department shall pay each month into the Downstate Public
3 Transportation Fund the moneys required to be so paid under
4 Section 2-3 of the Downstate Public Transportation Act.
5 Subject to successful execution and delivery of a
6 public-private agreement between the public agency and private
7 entity and completion of the civic build, beginning on July 1,
8 2023, of the remainder of the moneys received by the
9 Department under the Use Tax Act, the Service Use Tax Act, the
10 Service Occupation Tax Act, and this Act, the Department shall
11 deposit the following specified deposits in the aggregate from
12 collections under the Use Tax Act, the Service Use Tax Act, the
13 Service Occupation Tax Act, and the Retailers' Occupation Tax
14 Act, as required under Section 8.25g of the State Finance Act
15 for distribution consistent with the Public-Private
16 Partnership for Civic and Transit Infrastructure Project Act.
17 The moneys received by the Department pursuant to this Act and
18 required to be deposited into the Civic and Transit
19 Infrastructure Fund are subject to the pledge, claim, and
20 charge set forth in Section 25-55 of the Public-Private
21 Partnership for Civic and Transit Infrastructure Project Act.
22 As used in this paragraph, "civic build", "private entity",
23 "public-private agreement", and "public agency" have the
24 meanings provided in Section 25-10 of the Public-Private
25 Partnership for Civic and Transit Infrastructure Project Act.
26 Fiscal Year ............................ Total Deposit
HB2755 Enrolled - 794 - LRB104 08253 BDA 18303 b
1 2024 .................................... $200,000,000
2 2025 .................................... $206,000,000
3 2026 .................................... $212,200,000
4 2027 .................................... $218,500,000
5 2028 .................................... $225,100,000
6 2029 .................................... $288,700,000
7 2030 .................................... $298,900,000
8 2031 .................................... $309,300,000
9 2032 .................................... $320,100,000
10 2033 .................................... $331,200,000
11 2034 .................................... $341,200,000
12 2035 .................................... $351,400,000
13 2036 .................................... $361,900,000
14 2037 .................................... $372,800,000
15 2038 .................................... $384,000,000
16 2039 .................................... $395,500,000
17 2040 .................................... $407,400,000
18 2041 .................................... $419,600,000
19 2042 .................................... $432,200,000
20 2043 .................................... $445,100,000
21 Beginning July 1, 2021 and until July 1, 2022, subject to
22 the payment of amounts into the State and Local Sales Tax
23 Reform Fund, the Build Illinois Fund, the McCormick Place
24 Expansion Project Fund, the Illinois Tax Increment Fund, and
25 the Tax Compliance and Administration Fund as provided in this
26 Section, the Department shall pay each month into the Road
HB2755 Enrolled - 795 - LRB104 08253 BDA 18303 b
1 Fund the amount estimated to represent 16% of the net revenue
2 realized from the taxes imposed on motor fuel and gasohol.
3 Beginning July 1, 2022 and until July 1, 2023, subject to the
4 payment of amounts into the State and Local Sales Tax Reform
5 Fund, the Build Illinois Fund, the McCormick Place Expansion
6 Project Fund, the Illinois Tax Increment Fund, and the Tax
7 Compliance and Administration Fund as provided in this
8 Section, the Department shall pay each month into the Road
9 Fund the amount estimated to represent 32% of the net revenue
10 realized from the taxes imposed on motor fuel and gasohol.
11 Beginning July 1, 2023 and until July 1, 2024, subject to the
12 payment of amounts into the State and Local Sales Tax Reform
13 Fund, the Build Illinois Fund, the McCormick Place Expansion
14 Project Fund, the Illinois Tax Increment Fund, and the Tax
15 Compliance and Administration Fund as provided in this
16 Section, the Department shall pay each month into the Road
17 Fund the amount estimated to represent 48% of the net revenue
18 realized from the taxes imposed on motor fuel and gasohol.
19 Beginning July 1, 2024 and until July 1, 2025, subject to the
20 payment of amounts into the State and Local Sales Tax Reform
21 Fund, the Build Illinois Fund, the McCormick Place Expansion
22 Project Fund, the Illinois Tax Increment Fund, and the Tax
23 Compliance and Administration Fund as provided in this
24 Section, the Department shall pay each month into the Road
25 Fund the amount estimated to represent 64% of the net revenue
26 realized from the taxes imposed on motor fuel and gasohol.
HB2755 Enrolled - 796 - LRB104 08253 BDA 18303 b
1 Beginning on July 1, 2025, subject to the payment of amounts
2 into the State and Local Sales Tax Reform Fund, the Build
3 Illinois Fund, the McCormick Place Expansion Project Fund, the
4 Illinois Tax Increment Fund, and the Tax Compliance and
5 Administration Fund as provided in this Section, the
6 Department shall pay each month into the Road Fund the amount
7 estimated to represent 80% of the net revenue realized from
8 the taxes imposed on motor fuel and gasohol. As used in this
9 paragraph "motor fuel" has the meaning given to that term in
10 Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
11 meaning given to that term in Section 3-40 of this Act.
12 Until July 1, 2025, of Of the remainder of the moneys
13 received by the Department pursuant to this Act, 75% thereof
14 shall be paid into the State Treasury and 25% shall be reserved
15 in a special account and used only for the transfer to the
16 Common School Fund as part of the monthly transfer from the
17 General Revenue Fund in accordance with Section 8a of the
18 State Finance Act. Beginning July 1, 2025, of the remainder of
19 the moneys received by the Department pursuant to this Act,
20 75% shall be deposited into the General Revenue Fund and 25%
21 shall be deposited into the Common School Fund.
22 As soon as possible after the first day of each month, upon
23 certification of the Department of Revenue, the Comptroller
24 shall order transferred and the Treasurer shall transfer from
25 the General Revenue Fund to the Motor Fuel Tax Fund an amount
26 equal to 1.7% of 80% of the net revenue realized under this Act
HB2755 Enrolled - 797 - LRB104 08253 BDA 18303 b
1 for the second preceding month. Beginning April 1, 2000, this
2 transfer is no longer required and shall not be made.
3 Net revenue realized for a month shall be the revenue
4 collected by the State pursuant to this Act, less the amount
5 paid out during that month as refunds to taxpayers for
6 overpayment of liability.
7 For greater simplicity of administration, manufacturers,
8 importers and wholesalers whose products are sold at retail in
9 Illinois by numerous retailers, and who wish to do so, may
10 assume the responsibility for accounting and paying to the
11 Department all tax accruing under this Act with respect to
12 such sales, if the retailers who are affected do not make
13 written objection to the Department to this arrangement.
14 (Source: P.A. 102-700, Article 60, Section 60-15, eff.
15 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
16 102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff.
17 7-28-23; 103-592, Article 75, Section 75-5, eff. 1-1-25;
18 103-592, Article 110, Section 110-5, eff. 6-7-24; 103-1055,
19 eff. 12-20-24.)
20 Section 35-25. The Service Use Tax Act is amended by
21 changing Sections 3-51 and 9 as follows:
22 (35 ILCS 110/3-51)
23 Sec. 3-51. Motor vehicles; trailers; use as rolling stock
24 definition.
HB2755 Enrolled - 798 - LRB104 08253 BDA 18303 b
1 (a) (Blank).
2 (b) (Blank).
3 (c) This subsection (c) applies to motor vehicles, other
4 than limousines, purchased through June 30, 2017. For motor
5 vehicles, other than limousines, purchased on or after July 1,
6 2017, subsection (d-5) applies. This subsection (c) applies to
7 limousines purchased before, on, or after July 1, 2017. "Use
8 as rolling stock moving in interstate commerce" in paragraph
9 (4a) of the definition of "sale of service" in Section 2 and
10 subsection (b) of Section 3-45 occurs for motor vehicles, as
11 defined in Section 1-146 of the Illinois Vehicle Code, when
12 during a 12-month period the rolling stock has carried persons
13 or property for hire in interstate commerce for greater than
14 50% of its total trips for that period or for greater than 50%
15 of its total miles for that period. The person claiming the
16 exemption shall make an election at the time of purchase to use
17 either the trips or mileage method. Persons who purchased
18 motor vehicles prior to July 1, 2004 shall make an election to
19 use either the trips or mileage method and document that
20 election in their books and records. If no election is made
21 under this subsection to use the trips or mileage method, the
22 person shall be deemed to have chosen the mileage method.
23 For purposes of determining qualifying trips or miles,
24 motor vehicles that carry persons or property for hire, even
25 just between points in Illinois, will be considered used for
26 hire in interstate commerce if the motor vehicle transports
HB2755 Enrolled - 799 - LRB104 08253 BDA 18303 b
1 persons whose journeys or property whose shipments originate
2 or terminate outside Illinois. The exemption for motor
3 vehicles used as rolling stock moving in interstate commerce
4 may be claimed only for the following vehicles: (i) motor
5 vehicles whose gross vehicle weight rating exceeds 16,000
6 pounds; and (ii) limousines, as defined in Section 1-139.1 of
7 the Illinois Vehicle Code. On and after July 1, 2025, the
8 exemption for limousines applies only if those limousines are
9 not used to provide transportation network company services,
10 as defined in the Transportation Network Providers Act.
11 Through June 30, 2017, this definition applies to all property
12 purchased for the purpose of being attached to those motor
13 vehicles as a part thereof. On and after July 1, 2017, this
14 definition applies to property purchased for the purpose of
15 being attached to limousines as a part thereof. With respect
16 to property that is transferred incident to a sale of service
17 on or after July 1, 2025 for the purpose of being attached to a
18 limousine as a part thereof, this definition applies only if
19 the limousine is not used to provide transportation network
20 company services, as defined in the Transportation Network
21 Providers Act.
22 (d) For purchases made through June 30, 2017, "use as
23 rolling stock moving in interstate commerce" in paragraph (4a)
24 of the definition of "sale of service" in Section 2 and
25 subsection (b) of Section 3-45 occurs for trailers, as defined
26 in Section 1-209 of the Illinois Vehicle Code, semitrailers as
HB2755 Enrolled - 800 - LRB104 08253 BDA 18303 b
1 defined in Section 1-187 of the Illinois Vehicle Code, and
2 pole trailers as defined in Section 1-161 of the Illinois
3 Vehicle Code, when during a 12-month period the rolling stock
4 has carried persons or property for hire in interstate
5 commerce for greater than 50% of its total trips for that
6 period or for greater than 50% of its total miles for that
7 period. The person claiming the exemption for a trailer or
8 trailers that will not be dedicated to a motor vehicle or group
9 of motor vehicles shall make an election at the time of
10 purchase to use either the trips or mileage method. Persons
11 who purchased trailers prior to July 1, 2004 that are not
12 dedicated to a motor vehicle or group of motor vehicles shall
13 make an election to use either the trips or mileage method and
14 document that election in their books and records. If no
15 election is made under this subsection to use the trips or
16 mileage method, the person shall be deemed to have chosen the
17 mileage method.
18 For purposes of determining qualifying trips or miles,
19 trailers, semitrailers, or pole trailers that carry property
20 for hire, even just between points in Illinois, will be
21 considered used for hire in interstate commerce if the
22 trailers, semitrailers, or pole trailers transport property
23 whose shipments originate or terminate outside Illinois. This
24 definition applies to all property purchased for the purpose
25 of being attached to those trailers, semitrailers, or pole
26 trailers as a part thereof. In lieu of a person providing
HB2755 Enrolled - 801 - LRB104 08253 BDA 18303 b
1 documentation regarding the qualifying use of each individual
2 trailer, semitrailer, or pole trailer, that person may
3 document such qualifying use by providing documentation of the
4 following:
5 (1) If a trailer, semitrailer, or pole trailer is
6 dedicated to a motor vehicle that qualifies as rolling
7 stock moving in interstate commerce under subsection (c)
8 of this Section, then that trailer, semitrailer, or pole
9 trailer qualifies as rolling stock moving in interstate
10 commerce under this subsection.
11 (2) If a trailer, semitrailer, or pole trailer is
12 dedicated to a group of motor vehicles that all qualify as
13 rolling stock moving in interstate commerce under
14 subsection (c) of this Section, then that trailer,
15 semitrailer, or pole trailer qualifies as rolling stock
16 moving in interstate commerce under this subsection.
17 (3) If one or more trailers, semitrailers, or pole
18 trailers are dedicated to a group of motor vehicles and
19 not all of those motor vehicles in that group qualify as
20 rolling stock moving in interstate commerce under
21 subsection (c) of this Section, then the percentage of
22 those trailers, semitrailers, or pole trailers that
23 qualifies as rolling stock moving in interstate commerce
24 under this subsection is equal to the percentage of those
25 motor vehicles in that group that qualify as rolling stock
26 moving in interstate commerce under subsection (c) of this
HB2755 Enrolled - 802 - LRB104 08253 BDA 18303 b
1 Section to which those trailers, semitrailers, or pole
2 trailers are dedicated. However, to determine the
3 qualification for the exemption provided under this item
4 (3), the mathematical application of the qualifying
5 percentage to one or more trailers, semitrailers, or pole
6 trailers under this subpart shall not be allowed as to any
7 fraction of a trailer, semitrailer, or pole trailer.
8 (d-5) For motor vehicles and trailers purchased on or
9 after July 1, 2017, "use as rolling stock moving in interstate
10 commerce" means that:
11 (1) the motor vehicle or trailer is used to transport
12 persons or property for hire;
13 (2) for purposes of the exemption under paragraph (4a)
14 of the definition of "sale of service" in Section 2, the
15 purchaser who is an owner, lessor, or shipper claiming the
16 exemption certifies that the motor vehicle or trailer will
17 be utilized, from the time of purchase and continuing
18 through the statute of limitations for issuing a notice of
19 tax liability under this Act, by an interstate carrier or
20 carriers for hire who hold, and are required by Federal
21 Motor Carrier Safety Administration regulations to hold,
22 an active USDOT Number with the Carrier Operation listed
23 as "Interstate" and the Operation Classification listed as
24 "authorized for hire", "exempt for hire", or both
25 "authorized for hire" and "exempt for hire"; except that
26 this paragraph (2) does not apply to a motor vehicle or
HB2755 Enrolled - 803 - LRB104 08253 BDA 18303 b
1 trailer used at an airport to support the operation of an
2 aircraft moving in interstate commerce, as long as (i) in
3 the case of a motor vehicle, the motor vehicle meets
4 paragraphs (1) and (3) of this subsection (d-5) or (ii) in
5 the case of a trailer, the trailer meets paragraph (1) of
6 this subsection (d-5); and
7 (3) for motor vehicles, the gross vehicle weight
8 rating exceeds 16,000 pounds.
9 The definition of "use as rolling stock moving in
10 interstate commerce" in this subsection (d-5) applies to all
11 property purchased on or after July 1, 2017 for the purpose of
12 being attached to a motor vehicle or trailer as a part thereof,
13 regardless of whether the motor vehicle or trailer was
14 purchased before, on, or after July 1, 2017.
15 If an item ceases to meet requirements (1) through (3)
16 under this subsection (d-5), then the tax is imposed on the
17 selling price, allowing for a reasonable depreciation for the
18 period during which the item qualified for the exemption.
19 For purposes of this subsection (d-5):
20 "Motor vehicle" excludes limousines, but otherwise
21 means that term as defined in Section 1-146 of the
22 Illinois Vehicle Code.
23 "Trailer" means (i) "trailer", as defined in Section
24 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
25 defined in Section 1-187 of the Illinois Vehicle Code, and
26 (iii) "pole trailer", as defined in Section 1-161 of the
HB2755 Enrolled - 804 - LRB104 08253 BDA 18303 b
1 Illinois Vehicle Code.
2 (e) For aircraft and watercraft purchased on or after
3 January 1, 2014, "use as rolling stock moving in interstate
4 commerce" in (i) paragraph (4a) of the definition of "sale of
5 service" in Section 2 and (ii) subsection (b) of Section 3-45
6 occurs when, during a 12-month period, the rolling stock has
7 carried persons or property for hire in interstate commerce
8 for greater than 50% of its total trips for that period or for
9 greater than 50% of its total miles for that period. The person
10 claiming the exemption shall make an election at the time of
11 purchase to use either the trips or mileage method and
12 document that election in their books and records. If no
13 election is made under this subsection to use the trips or
14 mileage method, the person shall be deemed to have chosen the
15 mileage method. For aircraft, flight hours may be used in lieu
16 of recording miles in determining whether the aircraft meets
17 the mileage test in this subsection. For watercraft, nautical
18 miles or trip hours may be used in lieu of recording miles in
19 determining whether the watercraft meets the mileage test in
20 this subsection.
21 Notwithstanding any other provision of law to the
22 contrary, property purchased on or after January 1, 2014 for
23 the purpose of being attached to aircraft or watercraft as a
24 part thereof qualifies as rolling stock moving in interstate
25 commerce only if the aircraft or watercraft to which it will be
26 attached qualifies as rolling stock moving in interstate
HB2755 Enrolled - 805 - LRB104 08253 BDA 18303 b
1 commerce under the test set forth in this subsection (e),
2 regardless of when the aircraft or watercraft was purchased.
3 Persons who purchased aircraft or watercraft prior to January
4 1, 2014 shall make an election to use either the trips or
5 mileage method and document that election in their books and
6 records for the purpose of determining whether property
7 purchased on or after January 1, 2014 for the purpose of being
8 attached to aircraft or watercraft as a part thereof qualifies
9 as rolling stock moving in interstate commerce under this
10 subsection (e).
11 (f) The election to use either the trips or mileage method
12 made under the provisions of subsections (c), (d), or (e) of
13 this Section will remain in effect for the duration of the
14 purchaser's ownership of that item.
15 (Source: P.A. 100-321, eff. 8-24-17.)
16 (35 ILCS 110/9)
17 Sec. 9. Each serviceman required or authorized to collect
18 the tax herein imposed shall pay to the Department the amount
19 of such tax (except as otherwise provided) at the time when he
20 is required to file his return for the period during which such
21 tax was collected, less a discount of 2.1% prior to January 1,
22 1990 and 1.75% on and after January 1, 1990, or $5 per calendar
23 year, whichever is greater, which is allowed to reimburse the
24 serviceman for expenses incurred in collecting the tax,
25 keeping records, preparing and filing returns, remitting the
HB2755 Enrolled - 806 - LRB104 08253 BDA 18303 b
1 tax, and supplying data to the Department on request.
2 Beginning with returns due on or after January 1, 2025, the
3 vendor's discount allowed in this Section, the Retailers'
4 Occupation Tax Act, the Service Occupation Tax Act, and the
5 Use Tax Act, including any local tax administered by the
6 Department and reported on the same return, shall not exceed
7 $1,000 per month in the aggregate. When determining the
8 discount allowed under this Section, servicemen shall include
9 the amount of tax that would have been due at the 1% rate but
10 for the 0% rate imposed under Public Act 102-700 this
11 amendatory Act of the 102nd General Assembly. The discount
12 under this Section is not allowed for the 1.25% portion of
13 taxes paid on aviation fuel that is subject to the revenue use
14 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
15 discount allowed under this Section is allowed only for
16 returns that are filed in the manner required by this Act. The
17 Department may disallow the discount for servicemen whose
18 certificate of registration is revoked at the time the return
19 is filed, but only if the Department's decision to revoke the
20 certificate of registration has become final. A serviceman
21 need not remit that part of any tax collected by him to the
22 extent that he is required to pay and does pay the tax imposed
23 by the Service Occupation Tax Act with respect to his sale of
24 service involving the incidental transfer by him of the same
25 property.
26 Except as provided hereinafter in this Section, on or
HB2755 Enrolled - 807 - LRB104 08253 BDA 18303 b
1 before the twentieth day of each calendar month, such
2 serviceman shall file a return for the preceding calendar
3 month in accordance with reasonable Rules and Regulations to
4 be promulgated by the Department. Such return shall be filed
5 on a form prescribed by the Department and shall contain such
6 information as the Department may reasonably require. The
7 return shall include the gross receipts which were received
8 during the preceding calendar month or quarter on the
9 following items upon which tax would have been due but for the
10 0% rate imposed under Public Act 102-700 this amendatory Act
11 of the 102nd General Assembly: (i) food for human consumption
12 that is to be consumed off the premises where it is sold (other
13 than alcoholic beverages, food consisting of or infused with
14 adult use cannabis, soft drinks, and food that has been
15 prepared for immediate consumption); and (ii) food prepared
16 for immediate consumption and transferred incident to a sale
17 of service subject to this Act or the Service Occupation Tax
18 Act by an entity licensed under the Hospital Licensing Act,
19 the Nursing Home Care Act, the Assisted Living and Shared
20 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
21 Specialized Mental Health Rehabilitation Act of 2013, or the
22 Child Care Act of 1969, or an entity that holds a permit issued
23 pursuant to the Life Care Facilities Act. The return shall
24 also include the amount of tax that would have been due on the
25 items listed in the previous sentence but for the 0% rate
26 imposed under Public Act 102-700 this amendatory Act of the
HB2755 Enrolled - 808 - LRB104 08253 BDA 18303 b
1 102nd General Assembly.
2 In the case of leases, except as otherwise provided in
3 this Act, the lessor, in collecting the tax, may collect for
4 each tax return period, only the tax applicable to that part of
5 the selling price actually received during such tax return
6 period.
7 On and after January 1, 2018, with respect to servicemen
8 whose annual gross receipts average $20,000 or more, all
9 returns required to be filed pursuant to this Act shall be
10 filed electronically. Servicemen who demonstrate that they do
11 not have access to the Internet or demonstrate hardship in
12 filing electronically may petition the Department to waive the
13 electronic filing requirement.
14 The Department may require returns to be filed on a
15 quarterly basis. If so required, a return for each calendar
16 quarter shall be filed on or before the twentieth day of the
17 calendar month following the end of such calendar quarter. The
18 taxpayer shall also file a return with the Department for each
19 of the first two months of each calendar quarter, on or before
20 the twentieth day of the following calendar month, stating:
21 1. The name of the seller;
22 2. The address of the principal place of business from
23 which he engages in business as a serviceman in this
24 State;
25 3. The total amount of taxable receipts received by
26 him during the preceding calendar month, including
HB2755 Enrolled - 809 - LRB104 08253 BDA 18303 b
1 receipts from charge and time sales, but less all
2 deductions allowed by law;
3 4. The amount of credit provided in Section 2d of this
4 Act;
5 5. The amount of tax due;
6 5-5. The signature of the taxpayer; and
7 6. Such other reasonable information as the Department
8 may require.
9 Each serviceman required or authorized to collect the tax
10 imposed by this Act on aviation fuel transferred as an
11 incident of a sale of service in this State during the
12 preceding calendar month shall, instead of reporting and
13 paying tax on aviation fuel as otherwise required by this
14 Section, report and pay such tax on a separate aviation fuel
15 tax return. The requirements related to the return shall be as
16 otherwise provided in this Section. Notwithstanding any other
17 provisions of this Act to the contrary, servicemen collecting
18 tax on aviation fuel shall file all aviation fuel tax returns
19 and shall make all aviation fuel tax payments by electronic
20 means in the manner and form required by the Department. For
21 purposes of this Section, "aviation fuel" means jet fuel and
22 aviation gasoline.
23 If a taxpayer fails to sign a return within 30 days after
24 the proper notice and demand for signature by the Department,
25 the return shall be considered valid and any amount shown to be
26 due on the return shall be deemed assessed.
HB2755 Enrolled - 810 - LRB104 08253 BDA 18303 b
1 Notwithstanding any other provision of this Act to the
2 contrary, servicemen subject to tax on cannabis shall file all
3 cannabis tax returns and shall make all cannabis tax payments
4 by electronic means in the manner and form required by the
5 Department.
6 Beginning October 1, 1993, a taxpayer who has an average
7 monthly tax liability of $150,000 or more shall make all
8 payments required by rules of the Department by electronic
9 funds transfer. Beginning October 1, 1994, a taxpayer who has
10 an average monthly tax liability of $100,000 or more shall
11 make all payments required by rules of the Department by
12 electronic funds transfer. Beginning October 1, 1995, a
13 taxpayer who has an average monthly tax liability of $50,000
14 or more shall make all payments required by rules of the
15 Department by electronic funds transfer. Beginning October 1,
16 2000, a taxpayer who has an annual tax liability of $200,000 or
17 more shall make all payments required by rules of the
18 Department by electronic funds transfer. The term "annual tax
19 liability" shall be the sum of the taxpayer's liabilities
20 under this Act, and under all other State and local occupation
21 and use tax laws administered by the Department, for the
22 immediately preceding calendar year. The term "average monthly
23 tax liability" means the sum of the taxpayer's liabilities
24 under this Act, and under all other State and local occupation
25 and use tax laws administered by the Department, for the
26 immediately preceding calendar year divided by 12. Beginning
HB2755 Enrolled - 811 - LRB104 08253 BDA 18303 b
1 on October 1, 2002, a taxpayer who has a tax liability in the
2 amount set forth in subsection (b) of Section 2505-210 of the
3 Department of Revenue Law shall make all payments required by
4 rules of the Department by electronic funds transfer.
5 Before August 1 of each year beginning in 1993, the
6 Department shall notify all taxpayers required to make
7 payments by electronic funds transfer. All taxpayers required
8 to make payments by electronic funds transfer shall make those
9 payments for a minimum of one year beginning on October 1.
10 Any taxpayer not required to make payments by electronic
11 funds transfer may make payments by electronic funds transfer
12 with the permission of the Department.
13 All taxpayers required to make payment by electronic funds
14 transfer and any taxpayers authorized to voluntarily make
15 payments by electronic funds transfer shall make those
16 payments in the manner authorized by the Department.
17 The Department shall adopt such rules as are necessary to
18 effectuate a program of electronic funds transfer and the
19 requirements of this Section.
20 If the serviceman is otherwise required to file a monthly
21 return and if the serviceman's average monthly tax liability
22 to the Department does not exceed $200, the Department may
23 authorize his returns to be filed on a quarter annual basis,
24 with the return for January, February, and March of a given
25 year being due by April 20 of such year; with the return for
26 April, May, and June of a given year being due by July 20 of
HB2755 Enrolled - 812 - LRB104 08253 BDA 18303 b
1 such year; with the return for July, August, and September of a
2 given year being due by October 20 of such year, and with the
3 return for October, November, and December of a given year
4 being due by January 20 of the following year.
5 If the serviceman is otherwise required to file a monthly
6 or quarterly return and if the serviceman's average monthly
7 tax liability to the Department does not exceed $50, the
8 Department may authorize his returns to be filed on an annual
9 basis, with the return for a given year being due by January 20
10 of the following year.
11 Such quarter annual and annual returns, as to form and
12 substance, shall be subject to the same requirements as
13 monthly returns.
14 Notwithstanding any other provision in this Act concerning
15 the time within which a serviceman may file his return, in the
16 case of any serviceman who ceases to engage in a kind of
17 business which makes him responsible for filing returns under
18 this Act, such serviceman shall file a final return under this
19 Act with the Department not more than one 1 month after
20 discontinuing such business.
21 Where a serviceman collects the tax with respect to the
22 selling price of property which he sells and the purchaser
23 thereafter returns such property and the serviceman refunds
24 the selling price thereof to the purchaser, such serviceman
25 shall also refund, to the purchaser, the tax so collected from
26 the purchaser. When filing his return for the period in which
HB2755 Enrolled - 813 - LRB104 08253 BDA 18303 b
1 he refunds such tax to the purchaser, the serviceman may
2 deduct the amount of the tax so refunded by him to the
3 purchaser from any other Service Use Tax, Service Occupation
4 Tax, retailers' occupation tax, or use tax which such
5 serviceman may be required to pay or remit to the Department,
6 as shown by such return, provided that the amount of the tax to
7 be deducted shall previously have been remitted to the
8 Department by such serviceman. If the serviceman shall not
9 previously have remitted the amount of such tax to the
10 Department, he shall be entitled to no deduction hereunder
11 upon refunding such tax to the purchaser.
12 Any serviceman filing a return hereunder shall also
13 include the total tax upon the selling price of tangible
14 personal property purchased for use by him as an incident to a
15 sale of service, and such serviceman shall remit the amount of
16 such tax to the Department when filing such return.
17 If experience indicates such action to be practicable, the
18 Department may prescribe and furnish a combination or joint
19 return which will enable servicemen, who are required to file
20 returns hereunder and also under the Service Occupation Tax
21 Act, to furnish all the return information required by both
22 Acts on the one form.
23 Where the serviceman has more than one business registered
24 with the Department under separate registration hereunder,
25 such serviceman shall not file each return that is due as a
26 single return covering all such registered businesses, but
HB2755 Enrolled - 814 - LRB104 08253 BDA 18303 b
1 shall file separate returns for each such registered business.
2 Beginning January 1, 1990, each month the Department shall
3 pay into the State and Local Tax Reform Fund, a special fund in
4 the State treasury Treasury, the net revenue realized for the
5 preceding month from the 1% tax imposed under this Act.
6 Beginning January 1, 1990, each month the Department shall
7 pay into the State and Local Sales Tax Reform Fund 20% of the
8 net revenue realized for the preceding month from the 6.25%
9 general rate on transfers of tangible personal property, other
10 than (i) tangible personal property which is purchased outside
11 Illinois at retail from a retailer and which is titled or
12 registered by an agency of this State's government and (ii)
13 aviation fuel sold on or after December 1, 2019. This
14 exception for aviation fuel only applies for so long as the
15 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
16 47133 are binding on the State.
17 For aviation fuel sold on or after December 1, 2019, each
18 month the Department shall pay into the State Aviation Program
19 Fund 20% of the net revenue realized for the preceding month
20 from the 6.25% general rate on the selling price of aviation
21 fuel, less an amount estimated by the Department to be
22 required for refunds of the 20% portion of the tax on aviation
23 fuel under this Act, which amount shall be deposited into the
24 Aviation Fuel Sales Tax Refund Fund. The Department shall only
25 pay moneys into the State Aviation Program Fund and the
26 Aviation Fuel Sales Tax Refund Fund under this Act for so long
HB2755 Enrolled - 815 - LRB104 08253 BDA 18303 b
1 as the revenue use requirements of 49 U.S.C. 47107(b) and 49
2 U.S.C. 47133 are binding on the State.
3 Beginning August 1, 2000, each month the Department shall
4 pay into the State and Local Sales Tax Reform Fund 100% of the
5 net revenue realized for the preceding month from the 1.25%
6 rate on the selling price of motor fuel and gasohol.
7 Beginning October 1, 2009, each month the Department shall
8 pay into the Capital Projects Fund an amount that is equal to
9 an amount estimated by the Department to represent 80% of the
10 net revenue realized for the preceding month from the sale of
11 candy, grooming and hygiene products, and soft drinks that had
12 been taxed at a rate of 1% prior to September 1, 2009 but that
13 are now taxed at 6.25%.
14 Beginning July 1, 2013, each month the Department shall
15 pay into the Underground Storage Tank Fund from the proceeds
16 collected under this Act, the Use Tax Act, the Service
17 Occupation Tax Act, and the Retailers' Occupation Tax Act an
18 amount equal to the average monthly deficit in the Underground
19 Storage Tank Fund during the prior year, as certified annually
20 by the Illinois Environmental Protection Agency, but the total
21 payment into the Underground Storage Tank Fund under this Act,
22 the Use Tax Act, the Service Occupation Tax Act, and the
23 Retailers' Occupation Tax Act shall not exceed $18,000,000 in
24 any State fiscal year. As used in this paragraph, the "average
25 monthly deficit" shall be equal to the difference between the
26 average monthly claims for payment by the fund and the average
HB2755 Enrolled - 816 - LRB104 08253 BDA 18303 b
1 monthly revenues deposited into the fund, excluding payments
2 made pursuant to this paragraph.
3 Beginning July 1, 2015, of the remainder of the moneys
4 received by the Department under the Use Tax Act, this Act, the
5 Service Occupation Tax Act, and the Retailers' Occupation Tax
6 Act, each month the Department shall deposit $500,000 into the
7 State Crime Laboratory Fund.
8 Of the remainder of the moneys received by the Department
9 pursuant to this Act, (a) 1.75% thereof shall be paid into the
10 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
11 and after July 1, 1989, 3.8% thereof shall be paid into the
12 Build Illinois Fund; provided, however, that if in any fiscal
13 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
14 may be, of the moneys received by the Department and required
15 to be paid into the Build Illinois Fund pursuant to Section 3
16 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
17 Act, Section 9 of the Service Use Tax Act, and Section 9 of the
18 Service Occupation Tax Act, such Acts being hereinafter called
19 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
20 may be, of moneys being hereinafter called the "Tax Act
21 Amount", and (2) the amount transferred to the Build Illinois
22 Fund from the State and Local Sales Tax Reform Fund shall be
23 less than the Annual Specified Amount (as defined in Section 3
24 of the Retailers' Occupation Tax Act), an amount equal to the
25 difference shall be immediately paid into the Build Illinois
26 Fund from other moneys received by the Department pursuant to
HB2755 Enrolled - 817 - LRB104 08253 BDA 18303 b
1 the Tax Acts; and further provided, that if on the last
2 business day of any month the sum of (1) the Tax Act Amount
3 required to be deposited into the Build Illinois Bond Account
4 in the Build Illinois Fund during such month and (2) the amount
5 transferred during such month to the Build Illinois Fund from
6 the State and Local Sales Tax Reform Fund shall have been less
7 than 1/12 of the Annual Specified Amount, an amount equal to
8 the difference shall be immediately paid into the Build
9 Illinois Fund from other moneys received by the Department
10 pursuant to the Tax Acts; and, further provided, that in no
11 event shall the payments required under the preceding proviso
12 result in aggregate payments into the Build Illinois Fund
13 pursuant to this clause (b) for any fiscal year in excess of
14 the greater of (i) the Tax Act Amount or (ii) the Annual
15 Specified Amount for such fiscal year; and, further provided,
16 that the amounts payable into the Build Illinois Fund under
17 this clause (b) shall be payable only until such time as the
18 aggregate amount on deposit under each trust indenture
19 securing Bonds issued and outstanding pursuant to the Build
20 Illinois Bond Act is sufficient, taking into account any
21 future investment income, to fully provide, in accordance with
22 such indenture, for the defeasance of or the payment of the
23 principal of, premium, if any, and interest on the Bonds
24 secured by such indenture and on any Bonds expected to be
25 issued thereafter and all fees and costs payable with respect
26 thereto, all as certified by the Director of the Bureau of the
HB2755 Enrolled - 818 - LRB104 08253 BDA 18303 b
1 Budget (now Governor's Office of Management and Budget). If on
2 the last business day of any month in which Bonds are
3 outstanding pursuant to the Build Illinois Bond Act, the
4 aggregate of the moneys deposited in the Build Illinois Bond
5 Account in the Build Illinois Fund in such month shall be less
6 than the amount required to be transferred in such month from
7 the Build Illinois Bond Account to the Build Illinois Bond
8 Retirement and Interest Fund pursuant to Section 13 of the
9 Build Illinois Bond Act, an amount equal to such deficiency
10 shall be immediately paid from other moneys received by the
11 Department pursuant to the Tax Acts to the Build Illinois
12 Fund; provided, however, that any amounts paid to the Build
13 Illinois Fund in any fiscal year pursuant to this sentence
14 shall be deemed to constitute payments pursuant to clause (b)
15 of the preceding sentence and shall reduce the amount
16 otherwise payable for such fiscal year pursuant to clause (b)
17 of the preceding sentence. The moneys received by the
18 Department pursuant to this Act and required to be deposited
19 into the Build Illinois Fund are subject to the pledge, claim
20 and charge set forth in Section 12 of the Build Illinois Bond
21 Act.
22 Subject to payment of amounts into the Build Illinois Fund
23 as provided in the preceding paragraph or in any amendment
24 thereto hereafter enacted, the following specified monthly
25 installment of the amount requested in the certificate of the
26 Chairman of the Metropolitan Pier and Exposition Authority
HB2755 Enrolled - 819 - LRB104 08253 BDA 18303 b
1 provided under Section 8.25f of the State Finance Act, but not
2 in excess of the sums designated as "Total Deposit", shall be
3 deposited in the aggregate from collections under Section 9 of
4 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
5 9 of the Service Occupation Tax Act, and Section 3 of the
6 Retailers' Occupation Tax Act into the McCormick Place
7 Expansion Project Fund in the specified fiscal years.
8 Fiscal Year Total Deposit
$0
9 1993
53,000,000
10 1994 58,000,000
61,000,000
11 1995 64,000,000
68,000,000
12 1996 71,000,000
75,000,000
13 1997 80,000,000
93,000,000
14 1998 99,000,000
103,000,000
15 1999 108,000,000
113,000,000
16 2000 119,000,000
126,000,000
17 2001 132,000,000
18 2002
19 2003
20 2004
21 2005
22 2006
23 2007
24 2008
25 2009
HB2755 Enrolled - 820 - LRB104 08253 BDA 18303 b
1 2010 139,000,000
146,000,000
2 2011 153,000,000
161,000,000
3 2012 170,000,000
179,000,000
4 2013 189,000,000
199,000,000
5 2014 210,000,000
221,000,000
6 2015 233,000,000
300,000,000
7 2016 300,000,000
300,000,000
8 2017 300,000,000
300,000,000
9 2018 300,000,000
375,000,000
10 2019 375,000,000
375,000,000
11 2020 375,000,000
375,000,000
12 2021 375,000,000
375,000,000
13 2022 375,000,000
375,000,000
14 2023
15 2024
16 2025
17 2026
18 2027
19 2028
20 2029
21 2030
22 2031
23 2032
24 2033
25 2034
26 2035
HB2755 Enrolled - 821 - LRB104 08253 BDA 18303 b
1 2036 450,000,000
2 and
3 each fiscal year
4 thereafter that bonds
5 are outstanding under
6 Section 13.2 of the
7 Metropolitan Pier and
8 Exposition Authority Act,
9 but not after fiscal year 2060.
10 Beginning July 20, 1993 and in each month of each fiscal
11 year thereafter, one-eighth of the amount requested in the
12 certificate of the Chairman of the Metropolitan Pier and
13 Exposition Authority for that fiscal year, less the amount
14 deposited into the McCormick Place Expansion Project Fund by
15 the State Treasurer in the respective month under subsection
16 (g) of Section 13 of the Metropolitan Pier and Exposition
17 Authority Act, plus cumulative deficiencies in the deposits
18 required under this Section for previous months and years,
19 shall be deposited into the McCormick Place Expansion Project
20 Fund, until the full amount requested for the fiscal year, but
21 not in excess of the amount specified above as "Total
22 Deposit", has been deposited.
23 Subject to payment of amounts into the Capital Projects
24 Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
25 and the McCormick Place Expansion Project Fund pursuant to the
26 preceding paragraphs or in any amendments thereto hereafter
HB2755 Enrolled - 822 - LRB104 08253 BDA 18303 b
1 enacted, for aviation fuel sold on or after December 1, 2019,
2 the Department shall each month deposit into the Aviation Fuel
3 Sales Tax Refund Fund an amount estimated by the Department to
4 be required for refunds of the 80% portion of the tax on
5 aviation fuel under this Act. The Department shall only
6 deposit moneys into the Aviation Fuel Sales Tax Refund Fund
7 under this paragraph for so long as the revenue use
8 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
9 binding on the State.
10 Subject to payment of amounts into the Build Illinois Fund
11 and the McCormick Place Expansion Project Fund pursuant to the
12 preceding paragraphs or in any amendments thereto hereafter
13 enacted, beginning July 1, 1993 and ending on September 30,
14 2013, the Department shall each month pay into the Illinois
15 Tax Increment Fund 0.27% of 80% of the net revenue realized for
16 the preceding month from the 6.25% general rate on the selling
17 price of tangible personal property.
18 Subject to payment of amounts into the Build Illinois
19 Fund, the McCormick Place Expansion Project Fund, the Illinois
20 Tax Increment Fund, pursuant to the preceding paragraphs or in
21 any amendments to this Section hereafter enacted, beginning on
22 the first day of the first calendar month to occur on or after
23 August 26, 2014 (the effective date of Public Act 98-1098),
24 each month, from the collections made under Section 9 of the
25 Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of
26 the Service Occupation Tax Act, and Section 3 of the
HB2755 Enrolled - 823 - LRB104 08253 BDA 18303 b
1 Retailers' Occupation Tax Act, the Department shall pay into
2 the Tax Compliance and Administration Fund, to be used,
3 subject to appropriation, to fund additional auditors and
4 compliance personnel at the Department of Revenue, an amount
5 equal to 1/12 of 5% of 80% of the cash receipts collected
6 during the preceding fiscal year by the Audit Bureau of the
7 Department under the Use Tax Act, the Service Use Tax Act, the
8 Service Occupation Tax Act, the Retailers' Occupation Tax Act,
9 and associated local occupation and use taxes administered by
10 the Department.
11 Subject to payments of amounts into the Build Illinois
12 Fund, the McCormick Place Expansion Project Fund, the Illinois
13 Tax Increment Fund, and the Tax Compliance and Administration
14 Fund as provided in this Section, beginning on July 1, 2018 the
15 Department shall pay each month into the Downstate Public
16 Transportation Fund the moneys required to be so paid under
17 Section 2-3 of the Downstate Public Transportation Act.
18 Subject to successful execution and delivery of a
19 public-private agreement between the public agency and private
20 entity and completion of the civic build, beginning on July 1,
21 2023, of the remainder of the moneys received by the
22 Department under the Use Tax Act, the Service Use Tax Act, the
23 Service Occupation Tax Act, and this Act, the Department shall
24 deposit the following specified deposits in the aggregate from
25 collections under the Use Tax Act, the Service Use Tax Act, the
26 Service Occupation Tax Act, and the Retailers' Occupation Tax
HB2755 Enrolled - 824 - LRB104 08253 BDA 18303 b
1 Act, as required under Section 8.25g of the State Finance Act
2 for distribution consistent with the Public-Private
3 Partnership for Civic and Transit Infrastructure Project Act.
4 The moneys received by the Department pursuant to this Act and
5 required to be deposited into the Civic and Transit
6 Infrastructure Fund are subject to the pledge, claim, and
7 charge set forth in Section 25-55 of the Public-Private
8 Partnership for Civic and Transit Infrastructure Project Act.
9 As used in this paragraph, "civic build", "private entity",
10 "public-private agreement", and "public agency" have the
11 meanings provided in Section 25-10 of the Public-Private
12 Partnership for Civic and Transit Infrastructure Project Act.
13 Fiscal Year ............................ Total Deposit
14 2024 .................................... $200,000,000
15 2025 .................................... $206,000,000
16 2026 .................................... $212,200,000
17 2027 .................................... $218,500,000
18 2028 .................................... $225,100,000
19 2029 .................................... $288,700,000
20 2030 .................................... $298,900,000
21 2031 .................................... $309,300,000
22 2032 .................................... $320,100,000
23 2033 .................................... $331,200,000
24 2034 .................................... $341,200,000
25 2035 .................................... $351,400,000
26 2036 .................................... $361,900,000
HB2755 Enrolled - 825 - LRB104 08253 BDA 18303 b
1 2037 .................................... $372,800,000
2 2038 .................................... $384,000,000
3 2039 .................................... $395,500,000
4 2040 .................................... $407,400,000
5 2041 .................................... $419,600,000
6 2042 .................................... $432,200,000
7 2043 .................................... $445,100,000
8 Beginning July 1, 2021 and until July 1, 2022, subject to
9 the payment of amounts into the State and Local Sales Tax
10 Reform Fund, the Build Illinois Fund, the McCormick Place
11 Expansion Project Fund, the Energy Infrastructure Fund, and
12 the Tax Compliance and Administration Fund as provided in this
13 Section, the Department shall pay each month into the Road
14 Fund the amount estimated to represent 16% of the net revenue
15 realized from the taxes imposed on motor fuel and gasohol.
16 Beginning July 1, 2022 and until July 1, 2023, subject to the
17 payment of amounts into the State and Local Sales Tax Reform
18 Fund, the Build Illinois Fund, the McCormick Place Expansion
19 Project Fund, the Illinois Tax Increment Fund, and the Tax
20 Compliance and Administration Fund as provided in this
21 Section, the Department shall pay each month into the Road
22 Fund the amount estimated to represent 32% of the net revenue
23 realized from the taxes imposed on motor fuel and gasohol.
24 Beginning July 1, 2023 and until July 1, 2024, subject to the
25 payment of amounts into the State and Local Sales Tax Reform
26 Fund, the Build Illinois Fund, the McCormick Place Expansion
HB2755 Enrolled - 826 - LRB104 08253 BDA 18303 b
1 Project Fund, the Illinois Tax Increment Fund, and the Tax
2 Compliance and Administration Fund as provided in this
3 Section, the Department shall pay each month into the Road
4 Fund the amount estimated to represent 48% of the net revenue
5 realized from the taxes imposed on motor fuel and gasohol.
6 Beginning July 1, 2024 and until July 1, 2025, subject to the
7 payment of amounts into the State and Local Sales Tax Reform
8 Fund, the Build Illinois Fund, the McCormick Place Expansion
9 Project Fund, the Illinois Tax Increment Fund, and the Tax
10 Compliance and Administration Fund as provided in this
11 Section, the Department shall pay each month into the Road
12 Fund the amount estimated to represent 64% of the net revenue
13 realized from the taxes imposed on motor fuel and gasohol.
14 Beginning on July 1, 2025, subject to the payment of amounts
15 into the State and Local Sales Tax Reform Fund, the Build
16 Illinois Fund, the McCormick Place Expansion Project Fund, the
17 Illinois Tax Increment Fund, and the Tax Compliance and
18 Administration Fund as provided in this Section, the
19 Department shall pay each month into the Road Fund the amount
20 estimated to represent 80% of the net revenue realized from
21 the taxes imposed on motor fuel and gasohol. As used in this
22 paragraph "motor fuel" has the meaning given to that term in
23 Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
24 meaning given to that term in Section 3-40 of the Use Tax Act.
25 Until July 1, 2025, of Of the remainder of the moneys
26 received by the Department pursuant to this Act, 75% thereof
HB2755 Enrolled - 827 - LRB104 08253 BDA 18303 b
1 shall be paid into the General Revenue Fund of the State
2 treasury Treasury and 25% shall be reserved in a special
3 account and used only for the transfer to the Common School
4 Fund as part of the monthly transfer from the General Revenue
5 Fund in accordance with Section 8a of the State Finance Act.
6 Beginning July 1, 2025, of the remainder of the moneys
7 received by the Department pursuant to this Act, 75% shall be
8 deposited into the General Revenue Fund and 25% shall be
9 deposited into the Common School Fund.
10 As soon as possible after the first day of each month, upon
11 certification of the Department of Revenue, the Comptroller
12 shall order transferred and the Treasurer shall transfer from
13 the General Revenue Fund to the Motor Fuel Tax Fund an amount
14 equal to 1.7% of 80% of the net revenue realized under this Act
15 for the second preceding month. Beginning April 1, 2000, this
16 transfer is no longer required and shall not be made.
17 Net revenue realized for a month shall be the revenue
18 collected by the State pursuant to this Act, less the amount
19 paid out during that month as refunds to taxpayers for
20 overpayment of liability.
21 (Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23;
22 103-592, Article 75, Section 75-10, eff. 1-1-25; 103-592,
23 Article 110, Section 110-10, eff. 6-7-24; revised 11-26-24.)
24 Section 35-30. The Service Occupation Tax Act is amended
25 by changing Sections 2d and 9 as follows:
HB2755 Enrolled - 828 - LRB104 08253 BDA 18303 b
1 (35 ILCS 115/2d)
2 Sec. 2d. Motor vehicles; trailers; use as rolling stock
3 definition.
4 (a) (Blank).
5 (b) (Blank).
6 (c) This subsection (c) applies to motor vehicles, other
7 than limousines, purchased through June 30, 2017. For motor
8 vehicles, other than limousines, purchased on or after July 1,
9 2017, subsection (d-5) applies. This subsection (c) applies to
10 limousines purchased before, on, or after July 1, 2017. "Use
11 as rolling stock moving in interstate commerce" in paragraph
12 (d-1) of the definition of "sale of service" in Section 2
13 occurs for motor vehicles, as defined in Section 1-146 of the
14 Illinois Vehicle Code, when during a 12-month period the
15 rolling stock has carried persons or property for hire in
16 interstate commerce for greater than 50% of its total trips
17 for that period or for greater than 50% of its total miles for
18 that period. The person claiming the exemption shall make an
19 election at the time of purchase to use either the trips or
20 mileage method. Persons who purchased motor vehicles prior to
21 July 1, 2004 shall make an election to use either the trips or
22 mileage method and document that election in their books and
23 records. If no election is made under this subsection to use
24 the trips or mileage method, the person shall be deemed to have
25 chosen the mileage method.
HB2755 Enrolled - 829 - LRB104 08253 BDA 18303 b
1 For purposes of determining qualifying trips or miles,
2 motor vehicles that carry persons or property for hire, even
3 just between points in Illinois, will be considered used for
4 hire in interstate commerce if the motor vehicle transports
5 persons whose journeys or property whose shipments originate
6 or terminate outside Illinois. The exemption for motor
7 vehicles used as rolling stock moving in interstate commerce
8 may be claimed only for the following vehicles: (i) motor
9 vehicles whose gross vehicle weight rating exceeds 16,000
10 pounds; and (ii) limousines, as defined in Section 1-139.1 of
11 the Illinois Vehicle Code. On and after July 1, 2025, the
12 exemption for limousines applies only if those limousines are
13 not used to provide transportation network company services,
14 as defined in the Transportation Network Providers Act.
15 Through June 30, 2017, this definition applies to all property
16 purchased for the purpose of being attached to those motor
17 vehicles as a part thereof. On and after July 1, 2017, this
18 definition applies to property purchased for the purpose of
19 being attached to limousines as a part thereof. With respect
20 to property that is transferred incident to a sale of service
21 on or after July 1, 2025 for the purpose of being attached to a
22 limousine as a part thereof, this definition applies only if
23 the limousine is not used to provide transportation network
24 company services, as defined in the Transportation Network
25 Providers Act.
26 (d) For purchases made through June 30, 2017, "use as
HB2755 Enrolled - 830 - LRB104 08253 BDA 18303 b
1 rolling stock moving in interstate commerce" in paragraph
2 (d-1) of the definition of "sale of service" in Section 2
3 occurs for trailers, as defined in Section 1-209 of the
4 Illinois Vehicle Code, semitrailers as defined in Section
5 1-187 of the Illinois Vehicle Code, and pole trailers as
6 defined in Section 1-161 of the Illinois Vehicle Code, when
7 during a 12-month period the rolling stock has carried persons
8 or property for hire in interstate commerce for greater than
9 50% of its total trips for that period or for greater than 50%
10 of its total miles for that period. The person claiming the
11 exemption for a trailer or trailers that will not be dedicated
12 to a motor vehicle or group of motor vehicles shall make an
13 election at the time of purchase to use either the trips or
14 mileage method. Persons who purchased trailers prior to July
15 1, 2004 that are not dedicated to a motor vehicle or group of
16 motor vehicles shall make an election to use either the trips
17 or mileage method and document that election in their books
18 and records. If no election is made under this subsection to
19 use the trips or mileage method, the person shall be deemed to
20 have chosen the mileage method.
21 For purposes of determining qualifying trips or miles,
22 trailers, semitrailers, or pole trailers that carry property
23 for hire, even just between points in Illinois, will be
24 considered used for hire in interstate commerce if the
25 trailers, semitrailers, or pole trailers transport property
26 whose shipments originate or terminate outside Illinois. This
HB2755 Enrolled - 831 - LRB104 08253 BDA 18303 b
1 definition applies to all property purchased for the purpose
2 of being attached to those trailers, semitrailers, or pole
3 trailers as a part thereof. In lieu of a person providing
4 documentation regarding the qualifying use of each individual
5 trailer, semitrailer, or pole trailer, that person may
6 document such qualifying use by providing documentation of the
7 following:
8 (1) If a trailer, semitrailer, or pole trailer is
9 dedicated to a motor vehicle that qualifies as rolling
10 stock moving in interstate commerce under subsection (c)
11 of this Section, then that trailer, semitrailer, or pole
12 trailer qualifies as rolling stock moving in interstate
13 commerce under this subsection.
14 (2) If a trailer, semitrailer, or pole trailer is
15 dedicated to a group of motor vehicles that all qualify as
16 rolling stock moving in interstate commerce under
17 subsection (c) of this Section, then that trailer,
18 semitrailer, or pole trailer qualifies as rolling stock
19 moving in interstate commerce under this subsection.
20 (3) If one or more trailers, semitrailers, or pole
21 trailers are dedicated to a group of motor vehicles and
22 not all of those motor vehicles in that group qualify as
23 rolling stock moving in interstate commerce under
24 subsection (c) of this Section, then the percentage of
25 those trailers, semitrailers, or pole trailers that
26 qualifies as rolling stock moving in interstate commerce
HB2755 Enrolled - 832 - LRB104 08253 BDA 18303 b
1 under this subsection is equal to the percentage of those
2 motor vehicles in that group that qualify as rolling stock
3 moving in interstate commerce under subsection (c) of this
4 Section to which those trailers, semitrailers, or pole
5 trailers are dedicated. However, to determine the
6 qualification for the exemption provided under this item
7 (3), the mathematical application of the qualifying
8 percentage to one or more trailers, semitrailers, or pole
9 trailers under this subpart shall not be allowed as to any
10 fraction of a trailer, semitrailer, or pole trailer.
11 (d-5) For motor vehicles and trailers purchased on or
12 after July 1, 2017, "use as rolling stock moving in interstate
13 commerce" means that:
14 (1) the motor vehicle or trailer is used to transport
15 persons or property for hire;
16 (2) for purposes of the exemption under paragraph
17 (d-1) of the definition of "sale of service" in Section 2,
18 the purchaser who is an owner, lessor, or shipper claiming
19 the exemption certifies that the motor vehicle or trailer
20 will be utilized, from the time of purchase and continuing
21 through the statute of limitations for issuing a notice of
22 tax liability under this Act, by an interstate carrier or
23 carriers for hire who hold, and are required by Federal
24 Motor Carrier Safety Administration regulations to hold,
25 an active USDOT Number with the Carrier Operation listed
26 as "Interstate" and the Operation Classification listed as
HB2755 Enrolled - 833 - LRB104 08253 BDA 18303 b
1 "authorized for hire", "exempt for hire", or both
2 "authorized for hire" and "exempt for hire"; except that
3 this paragraph (2) does not apply to a motor vehicle or
4 trailer used at an airport to support the operation of an
5 aircraft moving in interstate commerce, as long as (i) in
6 the case of a motor vehicle, the motor vehicle meets
7 paragraphs (1) and (3) of this subsection (d-5) or (ii) in
8 the case of a trailer, the trailer meets paragraph (1) of
9 this subsection (d-5); and
10 (3) for motor vehicles, the gross vehicle weight
11 rating exceeds 16,000 pounds.
12 The definition of "use as rolling stock moving in
13 interstate commerce" in this subsection (d-5) applies to all
14 property purchased on or after July 1, 2017 for the purpose of
15 being attached to a motor vehicle or trailer as a part thereof,
16 regardless of whether the motor vehicle or trailer was
17 purchased before, on, or after July 1, 2017.
18 If an item ceases to meet requirements (1) through (3)
19 under this subsection (d-5), then the tax is imposed on the
20 selling price, allowing for a reasonable depreciation for the
21 period during which the item qualified for the exemption.
22 For purposes of this subsection (d-5):
23 "Motor vehicle" excludes limousines, but otherwise
24 means that term as defined in Section 1-146 of the
25 Illinois Vehicle Code.
26 "Trailer" means (i) "trailer", as defined in Section
HB2755 Enrolled - 834 - LRB104 08253 BDA 18303 b
1 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
2 defined in Section 1-187 of the Illinois Vehicle Code, and
3 (iii) "pole trailer", as defined in Section 1-161 of the
4 Illinois Vehicle Code.
5 (e) For aircraft and watercraft purchased on or after
6 January 1, 2014, "use as rolling stock moving in interstate
7 commerce" in paragraph (d-1) of the definition of "sale of
8 service" in Section 2 occurs when, during a 12-month period,
9 the rolling stock has carried persons or property for hire in
10 interstate commerce for greater than 50% of its total trips
11 for that period or for greater than 50% of its total miles for
12 that period. The person claiming the exemption shall make an
13 election at the time of purchase to use either the trips or
14 mileage method and document that election in their books and
15 records. If no election is made under this subsection to use
16 the trips or mileage method, the person shall be deemed to have
17 chosen the mileage method. For aircraft, flight hours may be
18 used in lieu of recording miles in determining whether the
19 aircraft meets the mileage test in this subsection. For
20 watercraft, nautical miles or trip hours may be used in lieu of
21 recording miles in determining whether the watercraft meets
22 the mileage test in this subsection.
23 Notwithstanding any other provision of law to the
24 contrary, property purchased on or after January 1, 2014 for
25 the purpose of being attached to aircraft or watercraft as a
26 part thereof qualifies as rolling stock moving in interstate
HB2755 Enrolled - 835 - LRB104 08253 BDA 18303 b
1 commerce only if the aircraft or watercraft to which it will be
2 attached qualifies as rolling stock moving in interstate
3 commerce under the test set forth in this subsection (e),
4 regardless of when the aircraft or watercraft was purchased.
5 Persons who purchased aircraft or watercraft prior to January
6 1, 2014 shall make an election to use either the trips or
7 mileage method and document that election in their books and
8 records for the purpose of determining whether property
9 purchased on or after January 1, 2014 for the purpose of being
10 attached to aircraft or watercraft as a part thereof qualifies
11 as rolling stock moving in interstate commerce under this
12 subsection (e).
13 (f) The election to use either the trips or mileage method
14 made under the provisions of subsections (c), (d), or (e) of
15 this Section will remain in effect for the duration of the
16 purchaser's ownership of that item.
17 (Source: P.A. 102-558, eff. 8-20-21.)
18 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
19 Sec. 9. Each serviceman required or authorized to collect
20 the tax herein imposed shall pay to the Department the amount
21 of such tax at the time when he is required to file his return
22 for the period during which such tax was collectible, less a
23 discount of 2.1% prior to January 1, 1990, and 1.75% on and
24 after January 1, 1990, or $5 per calendar year, whichever is
25 greater, which is allowed to reimburse the serviceman for
HB2755 Enrolled - 836 - LRB104 08253 BDA 18303 b
1 expenses incurred in collecting the tax, keeping records,
2 preparing and filing returns, remitting the tax, and supplying
3 data to the Department on request. Beginning with returns due
4 on or after January 1, 2025, the vendor's discount allowed in
5 this Section, the Retailers' Occupation Tax Act, the Use Tax
6 Act, and the Service Use Tax Act, including any local tax
7 administered by the Department and reported on the same
8 return, shall not exceed $1,000 per month in the aggregate.
9 When determining the discount allowed under this Section,
10 servicemen shall include the amount of tax that would have
11 been due at the 1% rate but for the 0% rate imposed under
12 Public Act 102-700. The discount under this Section is not
13 allowed for the 1.25% portion of taxes paid on aviation fuel
14 that is subject to the revenue use requirements of 49 U.S.C.
15 47107(b) and 49 U.S.C. 47133. The discount allowed under this
16 Section is allowed only for returns that are filed in the
17 manner required by this Act. The Department may disallow the
18 discount for servicemen whose certificate of registration is
19 revoked at the time the return is filed, but only if the
20 Department's decision to revoke the certificate of
21 registration has become final.
22 Where such tangible personal property is sold under a
23 conditional sales contract, or under any other form of sale
24 wherein the payment of the principal sum, or a part thereof, is
25 extended beyond the close of the period for which the return is
26 filed, the serviceman, in collecting the tax may collect, for
HB2755 Enrolled - 837 - LRB104 08253 BDA 18303 b
1 each tax return period, only the tax applicable to the part of
2 the selling price actually received during such tax return
3 period.
4 Except as provided hereinafter in this Section, on or
5 before the twentieth day of each calendar month, such
6 serviceman shall file a return for the preceding calendar
7 month in accordance with reasonable rules and regulations to
8 be promulgated by the Department of Revenue. Such return shall
9 be filed on a form prescribed by the Department and shall
10 contain such information as the Department may reasonably
11 require. The return shall include the gross receipts which
12 were received during the preceding calendar month or quarter
13 on the following items upon which tax would have been due but
14 for the 0% rate imposed under Public Act 102-700: (i) food for
15 human consumption that is to be consumed off the premises
16 where it is sold (other than alcoholic beverages, food
17 consisting of or infused with adult use cannabis, soft drinks,
18 and food that has been prepared for immediate consumption);
19 and (ii) food prepared for immediate consumption and
20 transferred incident to a sale of service subject to this Act
21 or the Service Use Tax Act by an entity licensed under the
22 Hospital Licensing Act, the Nursing Home Care Act, the
23 Assisted Living and Shared Housing Act, the ID/DD Community
24 Care Act, the MC/DD Act, the Specialized Mental Health
25 Rehabilitation Act of 2013, or the Child Care Act of 1969, or
26 an entity that holds a permit issued pursuant to the Life Care
HB2755 Enrolled - 838 - LRB104 08253 BDA 18303 b
1 Facilities Act. The return shall also include the amount of
2 tax that would have been due on the items listed in the
3 previous sentence but for the 0% rate imposed under Public Act
4 102-700.
5 On and after January 1, 2018, with respect to servicemen
6 whose annual gross receipts average $20,000 or more, all
7 returns required to be filed pursuant to this Act shall be
8 filed electronically. Servicemen who demonstrate that they do
9 not have access to the Internet or demonstrate hardship in
10 filing electronically may petition the Department to waive the
11 electronic filing requirement.
12 The Department may require returns to be filed on a
13 quarterly basis. If so required, a return for each calendar
14 quarter shall be filed on or before the twentieth day of the
15 calendar month following the end of such calendar quarter. The
16 taxpayer shall also file a return with the Department for each
17 of the first two months of each calendar quarter, on or before
18 the twentieth day of the following calendar month, stating:
19 1. The name of the seller;
20 2. The address of the principal place of business from
21 which he engages in business as a serviceman in this
22 State;
23 3. The total amount of taxable receipts received by
24 him during the preceding calendar month, including
25 receipts from charge and time sales, but less all
26 deductions allowed by law;
HB2755 Enrolled - 839 - LRB104 08253 BDA 18303 b
1 4. The amount of credit provided in Section 2d of this
2 Act;
3 5. The amount of tax due;
4 5-5. The signature of the taxpayer; and
5 6. Such other reasonable information as the Department
6 may require.
7 Each serviceman required or authorized to collect the tax
8 herein imposed on aviation fuel acquired as an incident to the
9 purchase of a service in this State during the preceding
10 calendar month shall, instead of reporting and paying tax as
11 otherwise required by this Section, report and pay such tax on
12 a separate aviation fuel tax return. The requirements related
13 to the return shall be as otherwise provided in this Section.
14 Notwithstanding any other provisions of this Act to the
15 contrary, servicemen transferring aviation fuel incident to
16 sales of service shall file all aviation fuel tax returns and
17 shall make all aviation fuel tax payments by electronic means
18 in the manner and form required by the Department. For
19 purposes of this Section, "aviation fuel" means jet fuel and
20 aviation gasoline.
21 If a taxpayer fails to sign a return within 30 days after
22 the proper notice and demand for signature by the Department,
23 the return shall be considered valid and any amount shown to be
24 due on the return shall be deemed assessed.
25 Notwithstanding any other provision of this Act to the
26 contrary, servicemen subject to tax on cannabis shall file all
HB2755 Enrolled - 840 - LRB104 08253 BDA 18303 b
1 cannabis tax returns and shall make all cannabis tax payments
2 by electronic means in the manner and form required by the
3 Department.
4 Prior to October 1, 2003, and on and after September 1,
5 2004 a serviceman may accept a Manufacturer's Purchase Credit
6 certification from a purchaser in satisfaction of Service Use
7 Tax as provided in Section 3-70 of the Service Use Tax Act if
8 the purchaser provides the appropriate documentation as
9 required by Section 3-70 of the Service Use Tax Act. A
10 Manufacturer's Purchase Credit certification, accepted prior
11 to October 1, 2003 or on or after September 1, 2004 by a
12 serviceman as provided in Section 3-70 of the Service Use Tax
13 Act, may be used by that serviceman to satisfy Service
14 Occupation Tax liability in the amount claimed in the
15 certification, not to exceed 6.25% of the receipts subject to
16 tax from a qualifying purchase. A Manufacturer's Purchase
17 Credit reported on any original or amended return filed under
18 this Act after October 20, 2003 for reporting periods prior to
19 September 1, 2004 shall be disallowed. Manufacturer's Purchase
20 Credit reported on annual returns due on or after January 1,
21 2005 will be disallowed for periods prior to September 1,
22 2004. No Manufacturer's Purchase Credit may be used after
23 September 30, 2003 through August 31, 2004 to satisfy any tax
24 liability imposed under this Act, including any audit
25 liability.
26 Beginning on July 1, 2023 and through December 31, 2032, a
HB2755 Enrolled - 841 - LRB104 08253 BDA 18303 b
1 serviceman may accept a Sustainable Aviation Fuel Purchase
2 Credit certification from an air common carrier-purchaser in
3 satisfaction of Service Use Tax as provided in Section 3-72 of
4 the Service Use Tax Act if the purchaser provides the
5 appropriate documentation as required by Section 3-72 of the
6 Service Use Tax Act. A Sustainable Aviation Fuel Purchase
7 Credit certification accepted by a serviceman in accordance
8 with this paragraph may be used by that serviceman to satisfy
9 service occupation tax liability (but not in satisfaction of
10 penalty or interest) in the amount claimed in the
11 certification, not to exceed 6.25% of the receipts subject to
12 tax from a sale of aviation fuel. In addition, for a sale of
13 aviation fuel to qualify to earn the Sustainable Aviation Fuel
14 Purchase Credit, servicemen must retain in their books and
15 records a certification from the producer of the aviation fuel
16 that the aviation fuel sold by the serviceman and for which a
17 sustainable aviation fuel purchase credit was earned meets the
18 definition of sustainable aviation fuel under Section 3-72 of
19 the Service Use Tax Act. The documentation must include detail
20 sufficient for the Department to determine the number of
21 gallons of sustainable aviation fuel sold.
22 If the serviceman's average monthly tax liability to the
23 Department does not exceed $200, the Department may authorize
24 his returns to be filed on a quarter annual basis, with the
25 return for January, February, and March of a given year being
26 due by April 20 of such year; with the return for April, May,
HB2755 Enrolled - 842 - LRB104 08253 BDA 18303 b
1 and June of a given year being due by July 20 of such year;
2 with the return for July, August, and September of a given year
3 being due by October 20 of such year, and with the return for
4 October, November, and December of a given year being due by
5 January 20 of the following year.
6 If the serviceman's average monthly tax liability to the
7 Department does not exceed $50, the Department may authorize
8 his returns to be filed on an annual basis, with the return for
9 a given year being due by January 20 of the following year.
10 Such quarter annual and annual returns, as to form and
11 substance, shall be subject to the same requirements as
12 monthly returns.
13 Notwithstanding any other provision in this Act concerning
14 the time within which a serviceman may file his return, in the
15 case of any serviceman who ceases to engage in a kind of
16 business which makes him responsible for filing returns under
17 this Act, such serviceman shall file a final return under this
18 Act with the Department not more than one month after
19 discontinuing such business.
20 Beginning October 1, 1993, a taxpayer who has an average
21 monthly tax liability of $150,000 or more shall make all
22 payments required by rules of the Department by electronic
23 funds transfer. Beginning October 1, 1994, a taxpayer who has
24 an average monthly tax liability of $100,000 or more shall
25 make all payments required by rules of the Department by
26 electronic funds transfer. Beginning October 1, 1995, a
HB2755 Enrolled - 843 - LRB104 08253 BDA 18303 b
1 taxpayer who has an average monthly tax liability of $50,000
2 or more shall make all payments required by rules of the
3 Department by electronic funds transfer. Beginning October 1,
4 2000, a taxpayer who has an annual tax liability of $200,000 or
5 more shall make all payments required by rules of the
6 Department by electronic funds transfer. The term "annual tax
7 liability" shall be the sum of the taxpayer's liabilities
8 under this Act, and under all other State and local occupation
9 and use tax laws administered by the Department, for the
10 immediately preceding calendar year. The term "average monthly
11 tax liability" means the sum of the taxpayer's liabilities
12 under this Act, and under all other State and local occupation
13 and use tax laws administered by the Department, for the
14 immediately preceding calendar year divided by 12. Beginning
15 on October 1, 2002, a taxpayer who has a tax liability in the
16 amount set forth in subsection (b) of Section 2505-210 of the
17 Department of Revenue Law shall make all payments required by
18 rules of the Department by electronic funds transfer.
19 Before August 1 of each year beginning in 1993, the
20 Department shall notify all taxpayers required to make
21 payments by electronic funds transfer. All taxpayers required
22 to make payments by electronic funds transfer shall make those
23 payments for a minimum of one year beginning on October 1.
24 Any taxpayer not required to make payments by electronic
25 funds transfer may make payments by electronic funds transfer
26 with the permission of the Department.
HB2755 Enrolled - 844 - LRB104 08253 BDA 18303 b
1 All taxpayers required to make payment by electronic funds
2 transfer and any taxpayers authorized to voluntarily make
3 payments by electronic funds transfer shall make those
4 payments in the manner authorized by the Department.
5 The Department shall adopt such rules as are necessary to
6 effectuate a program of electronic funds transfer and the
7 requirements of this Section.
8 Where a serviceman collects the tax with respect to the
9 selling price of tangible personal property which he sells and
10 the purchaser thereafter returns such tangible personal
11 property and the serviceman refunds the selling price thereof
12 to the purchaser, such serviceman shall also refund, to the
13 purchaser, the tax so collected from the purchaser. When
14 filing his return for the period in which he refunds such tax
15 to the purchaser, the serviceman may deduct the amount of the
16 tax so refunded by him to the purchaser from any other Service
17 Occupation Tax, Service Use Tax, Retailers' Occupation Tax, or
18 Use Tax which such serviceman may be required to pay or remit
19 to the Department, as shown by such return, provided that the
20 amount of the tax to be deducted shall previously have been
21 remitted to the Department by such serviceman. If the
22 serviceman shall not previously have remitted the amount of
23 such tax to the Department, he shall be entitled to no
24 deduction hereunder upon refunding such tax to the purchaser.
25 If experience indicates such action to be practicable, the
26 Department may prescribe and furnish a combination or joint
HB2755 Enrolled - 845 - LRB104 08253 BDA 18303 b
1 return which will enable servicemen, who are required to file
2 returns hereunder and also under the Retailers' Occupation Tax
3 Act, the Use Tax Act, or the Service Use Tax Act, to furnish
4 all the return information required by all said Acts on the one
5 form.
6 Where the serviceman has more than one business registered
7 with the Department under separate registrations hereunder,
8 such serviceman shall file separate returns for each
9 registered business.
10 Beginning January 1, 1990, each month the Department shall
11 pay into the Local Government Tax Fund the revenue realized
12 for the preceding month from the 1% tax imposed under this Act.
13 Beginning January 1, 1990, each month the Department shall
14 pay into the County and Mass Transit District Fund 4% of the
15 revenue realized for the preceding month from the 6.25%
16 general rate on sales of tangible personal property other than
17 aviation fuel sold on or after December 1, 2019. This
18 exception for aviation fuel only applies for so long as the
19 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
20 47133 are binding on the State.
21 Beginning August 1, 2000, each month the Department shall
22 pay into the County and Mass Transit District Fund 20% of the
23 net revenue realized for the preceding month from the 1.25%
24 rate on the selling price of motor fuel and gasohol.
25 Beginning January 1, 1990, each month the Department shall
26 pay into the Local Government Tax Fund 16% of the revenue
HB2755 Enrolled - 846 - LRB104 08253 BDA 18303 b
1 realized for the preceding month from the 6.25% general rate
2 on transfers of tangible personal property other than aviation
3 fuel sold on or after December 1, 2019. This exception for
4 aviation fuel only applies for so long as the revenue use
5 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
6 binding on the State.
7 For aviation fuel sold on or after December 1, 2019, each
8 month the Department shall pay into the State Aviation Program
9 Fund 20% of the net revenue realized for the preceding month
10 from the 6.25% general rate on the selling price of aviation
11 fuel, less an amount estimated by the Department to be
12 required for refunds of the 20% portion of the tax on aviation
13 fuel under this Act, which amount shall be deposited into the
14 Aviation Fuel Sales Tax Refund Fund. The Department shall only
15 pay moneys into the State Aviation Program Fund and the
16 Aviation Fuel Sales Tax Refund Fund under this Act for so long
17 as the revenue use requirements of 49 U.S.C. 47107(b) and 49
18 U.S.C. 47133 are binding on the State.
19 Beginning August 1, 2000, each month the Department shall
20 pay into the Local Government Tax Fund 80% of the net revenue
21 realized for the preceding month from the 1.25% rate on the
22 selling price of motor fuel and gasohol.
23 Beginning October 1, 2009, each month the Department shall
24 pay into the Capital Projects Fund an amount that is equal to
25 an amount estimated by the Department to represent 80% of the
26 net revenue realized for the preceding month from the sale of
HB2755 Enrolled - 847 - LRB104 08253 BDA 18303 b
1 candy, grooming and hygiene products, and soft drinks that had
2 been taxed at a rate of 1% prior to September 1, 2009 but that
3 are now taxed at 6.25%.
4 Beginning July 1, 2013, each month the Department shall
5 pay into the Underground Storage Tank Fund from the proceeds
6 collected under this Act, the Use Tax Act, the Service Use Tax
7 Act, and the Retailers' Occupation Tax Act an amount equal to
8 the average monthly deficit in the Underground Storage Tank
9 Fund during the prior year, as certified annually by the
10 Illinois Environmental Protection Agency, but the total
11 payment into the Underground Storage Tank Fund under this Act,
12 the Use Tax Act, the Service Use Tax Act, and the Retailers'
13 Occupation Tax Act shall not exceed $18,000,000 in any State
14 fiscal year. As used in this paragraph, the "average monthly
15 deficit" shall be equal to the difference between the average
16 monthly claims for payment by the fund and the average monthly
17 revenues deposited into the fund, excluding payments made
18 pursuant to this paragraph.
19 Beginning July 1, 2015, of the remainder of the moneys
20 received by the Department under the Use Tax Act, the Service
21 Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
22 each month the Department shall deposit $500,000 into the
23 State Crime Laboratory Fund.
24 Of the remainder of the moneys received by the Department
25 pursuant to this Act, (a) 1.75% thereof shall be paid into the
26 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
HB2755 Enrolled - 848 - LRB104 08253 BDA 18303 b
1 and after July 1, 1989, 3.8% thereof shall be paid into the
2 Build Illinois Fund; provided, however, that if in any fiscal
3 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
4 may be, of the moneys received by the Department and required
5 to be paid into the Build Illinois Fund pursuant to Section 3
6 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
7 Act, Section 9 of the Service Use Tax Act, and Section 9 of the
8 Service Occupation Tax Act, such Acts being hereinafter called
9 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
10 may be, of moneys being hereinafter called the "Tax Act
11 Amount", and (2) the amount transferred to the Build Illinois
12 Fund from the State and Local Sales Tax Reform Fund shall be
13 less than the Annual Specified Amount (as defined in Section 3
14 of the Retailers' Occupation Tax Act), an amount equal to the
15 difference shall be immediately paid into the Build Illinois
16 Fund from other moneys received by the Department pursuant to
17 the Tax Acts; and further provided, that if on the last
18 business day of any month the sum of (1) the Tax Act Amount
19 required to be deposited into the Build Illinois Account in
20 the Build Illinois Fund during such month and (2) the amount
21 transferred during such month to the Build Illinois Fund from
22 the State and Local Sales Tax Reform Fund shall have been less
23 than 1/12 of the Annual Specified Amount, an amount equal to
24 the difference shall be immediately paid into the Build
25 Illinois Fund from other moneys received by the Department
26 pursuant to the Tax Acts; and, further provided, that in no
HB2755 Enrolled - 849 - LRB104 08253 BDA 18303 b
1 event shall the payments required under the preceding proviso
2 result in aggregate payments into the Build Illinois Fund
3 pursuant to this clause (b) for any fiscal year in excess of
4 the greater of (i) the Tax Act Amount or (ii) the Annual
5 Specified Amount for such fiscal year; and, further provided,
6 that the amounts payable into the Build Illinois Fund under
7 this clause (b) shall be payable only until such time as the
8 aggregate amount on deposit under each trust indenture
9 securing Bonds issued and outstanding pursuant to the Build
10 Illinois Bond Act is sufficient, taking into account any
11 future investment income, to fully provide, in accordance with
12 such indenture, for the defeasance of or the payment of the
13 principal of, premium, if any, and interest on the Bonds
14 secured by such indenture and on any Bonds expected to be
15 issued thereafter and all fees and costs payable with respect
16 thereto, all as certified by the Director of the Bureau of the
17 Budget (now Governor's Office of Management and Budget). If on
18 the last business day of any month in which Bonds are
19 outstanding pursuant to the Build Illinois Bond Act, the
20 aggregate of the moneys deposited in the Build Illinois Bond
21 Account in the Build Illinois Fund in such month shall be less
22 than the amount required to be transferred in such month from
23 the Build Illinois Bond Account to the Build Illinois Bond
24 Retirement and Interest Fund pursuant to Section 13 of the
25 Build Illinois Bond Act, an amount equal to such deficiency
26 shall be immediately paid from other moneys received by the
HB2755 Enrolled - 850 - LRB104 08253 BDA 18303 b
1 Department pursuant to the Tax Acts to the Build Illinois
2 Fund; provided, however, that any amounts paid to the Build
3 Illinois Fund in any fiscal year pursuant to this sentence
4 shall be deemed to constitute payments pursuant to clause (b)
5 of the preceding sentence and shall reduce the amount
6 otherwise payable for such fiscal year pursuant to clause (b)
7 of the preceding sentence. The moneys received by the
8 Department pursuant to this Act and required to be deposited
9 into the Build Illinois Fund are subject to the pledge, claim
10 and charge set forth in Section 12 of the Build Illinois Bond
11 Act.
12 Subject to payment of amounts into the Build Illinois Fund
13 as provided in the preceding paragraph or in any amendment
14 thereto hereafter enacted, the following specified monthly
15 installment of the amount requested in the certificate of the
16 Chairman of the Metropolitan Pier and Exposition Authority
17 provided under Section 8.25f of the State Finance Act, but not
18 in excess of the sums designated as "Total Deposit", shall be
19 deposited in the aggregate from collections under Section 9 of
20 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
21 9 of the Service Occupation Tax Act, and Section 3 of the
22 Retailers' Occupation Tax Act into the McCormick Place
23 Expansion Project Fund in the specified fiscal years.
24 Fiscal Year Total Deposit
$0
25 1993
HB2755 Enrolled - 851 - LRB104 08253 BDA 18303 b
1 1994 53,000,000
58,000,000
2 1995 61,000,000
64,000,000
3 1996 68,000,000
71,000,000
4 1997 75,000,000
80,000,000
5 1998 93,000,000
99,000,000
6 1999 103,000,000
108,000,000
7 2000 113,000,000
119,000,000
8 2001 126,000,000
132,000,000
9 2002 139,000,000
146,000,000
10 2003 153,000,000
161,000,000
11 2004 170,000,000
179,000,000
12 2005 189,000,000
199,000,000
13 2006 210,000,000
221,000,000
14 2007
15 2008
16 2009
17 2010
18 2011
19 2012
20 2013
21 2014
22 2015
23 2016
24 2017
25 2018
26 2019
HB2755 Enrolled - 852 - LRB104 08253 BDA 18303 b
1 2020 233,000,000
2 2021 300,000,000
3 2022 300,000,000
4 2023 300,000,000
5 2024 300,000,000
6 2025 300,000,000
7 2026 300,000,000
8 2027 375,000,000
9 2028 375,000,000
10 2029 375,000,000
11 2030 375,000,000
12 2031 375,000,000
13 2032 375,000,000
14 2033 375,000,000
15 2034 375,000,000
16 2035 375,000,000
17 2036 450,000,000
18 and
19 each fiscal year
20 thereafter that bonds
21 are outstanding under
22 Section 13.2 of the
23 Metropolitan Pier and
24 Exposition Authority Act,
25 but not after fiscal year 2060.
26 Beginning July 20, 1993 and in each month of each fiscal
HB2755 Enrolled - 853 - LRB104 08253 BDA 18303 b
1 year thereafter, one-eighth of the amount requested in the
2 certificate of the Chairman of the Metropolitan Pier and
3 Exposition Authority for that fiscal year, less the amount
4 deposited into the McCormick Place Expansion Project Fund by
5 the State Treasurer in the respective month under subsection
6 (g) of Section 13 of the Metropolitan Pier and Exposition
7 Authority Act, plus cumulative deficiencies in the deposits
8 required under this Section for previous months and years,
9 shall be deposited into the McCormick Place Expansion Project
10 Fund, until the full amount requested for the fiscal year, but
11 not in excess of the amount specified above as "Total
12 Deposit", has been deposited.
13 Subject to payment of amounts into the Capital Projects
14 Fund, the Build Illinois Fund, and the McCormick Place
15 Expansion Project Fund pursuant to the preceding paragraphs or
16 in any amendments thereto hereafter enacted, for aviation fuel
17 sold on or after December 1, 2019, the Department shall each
18 month deposit into the Aviation Fuel Sales Tax Refund Fund an
19 amount estimated by the Department to be required for refunds
20 of the 80% portion of the tax on aviation fuel under this Act.
21 The Department shall only deposit moneys into the Aviation
22 Fuel Sales Tax Refund Fund under this paragraph for so long as
23 the revenue use requirements of 49 U.S.C. 47107(b) and 49
24 U.S.C. 47133 are binding on the State.
25 Subject to payment of amounts into the Build Illinois Fund
26 and the McCormick Place Expansion Project Fund pursuant to the
HB2755 Enrolled - 854 - LRB104 08253 BDA 18303 b
1 preceding paragraphs or in any amendments thereto hereafter
2 enacted, beginning July 1, 1993 and ending on September 30,
3 2013, the Department shall each month pay into the Illinois
4 Tax Increment Fund 0.27% of 80% of the net revenue realized for
5 the preceding month from the 6.25% general rate on the selling
6 price of tangible personal property.
7 Subject to payment of amounts into the Build Illinois
8 Fund, the McCormick Place Expansion Project Fund, and the
9 Illinois Tax Increment Fund pursuant to the preceding
10 paragraphs or in any amendments to this Section hereafter
11 enacted, beginning on the first day of the first calendar
12 month to occur on or after August 26, 2014 (the effective date
13 of Public Act 98-1098), each month, from the collections made
14 under Section 9 of the Use Tax Act, Section 9 of the Service
15 Use Tax Act, Section 9 of the Service Occupation Tax Act, and
16 Section 3 of the Retailers' Occupation Tax Act, the Department
17 shall pay into the Tax Compliance and Administration Fund, to
18 be used, subject to appropriation, to fund additional auditors
19 and compliance personnel at the Department of Revenue, an
20 amount equal to 1/12 of 5% of 80% of the cash receipts
21 collected during the preceding fiscal year by the Audit Bureau
22 of the Department under the Use Tax Act, the Service Use Tax
23 Act, the Service Occupation Tax Act, the Retailers' Occupation
24 Tax Act, and associated local occupation and use taxes
25 administered by the Department.
26 Subject to payments of amounts into the Build Illinois
HB2755 Enrolled - 855 - LRB104 08253 BDA 18303 b
1 Fund, the McCormick Place Expansion Project Fund, the Illinois
2 Tax Increment Fund, and the Tax Compliance and Administration
3 Fund as provided in this Section, beginning on July 1, 2018 the
4 Department shall pay each month into the Downstate Public
5 Transportation Fund the moneys required to be so paid under
6 Section 2-3 of the Downstate Public Transportation Act.
7 Subject to successful execution and delivery of a
8 public-private agreement between the public agency and private
9 entity and completion of the civic build, beginning on July 1,
10 2023, of the remainder of the moneys received by the
11 Department under the Use Tax Act, the Service Use Tax Act, the
12 Service Occupation Tax Act, and this Act, the Department shall
13 deposit the following specified deposits in the aggregate from
14 collections under the Use Tax Act, the Service Use Tax Act, the
15 Service Occupation Tax Act, and the Retailers' Occupation Tax
16 Act, as required under Section 8.25g of the State Finance Act
17 for distribution consistent with the Public-Private
18 Partnership for Civic and Transit Infrastructure Project Act.
19 The moneys received by the Department pursuant to this Act and
20 required to be deposited into the Civic and Transit
21 Infrastructure Fund are subject to the pledge, claim and
22 charge set forth in Section 25-55 of the Public-Private
23 Partnership for Civic and Transit Infrastructure Project Act.
24 As used in this paragraph, "civic build", "private entity",
25 "public-private agreement", and "public agency" have the
26 meanings provided in Section 25-10 of the Public-Private
HB2755 Enrolled - 856 - LRB104 08253 BDA 18303 b
1 Partnership for Civic and Transit Infrastructure Project Act.
2 Fiscal Year ............................ Total Deposit
3 2024 .................................... $200,000,000
4 2025 .................................... $206,000,000
5 2026 .................................... $212,200,000
6 2027 .................................... $218,500,000
7 2028 .................................... $225,100,000
8 2029 .................................... $288,700,000
9 2030 .................................... $298,900,000
10 2031 .................................... $309,300,000
11 2032 .................................... $320,100,000
12 2033 .................................... $331,200,000
13 2034 .................................... $341,200,000
14 2035 .................................... $351,400,000
15 2036 .................................... $361,900,000
16 2037 .................................... $372,800,000
17 2038 .................................... $384,000,000
18 2039 .................................... $395,500,000
19 2040 .................................... $407,400,000
20 2041 .................................... $419,600,000
21 2042 .................................... $432,200,000
22 2043 .................................... $445,100,000
23 Beginning July 1, 2021 and until July 1, 2022, subject to
24 the payment of amounts into the County and Mass Transit
25 District Fund, the Local Government Tax Fund, the Build
26 Illinois Fund, the McCormick Place Expansion Project Fund, the
HB2755 Enrolled - 857 - LRB104 08253 BDA 18303 b
1 Illinois Tax Increment Fund, and the Tax Compliance and
2 Administration Fund as provided in this Section, the
3 Department shall pay each month into the Road Fund the amount
4 estimated to represent 16% of the net revenue realized from
5 the taxes imposed on motor fuel and gasohol. Beginning July 1,
6 2022 and until July 1, 2023, subject to the payment of amounts
7 into the County and Mass Transit District Fund, the Local
8 Government Tax Fund, the Build Illinois Fund, the McCormick
9 Place Expansion Project Fund, the Illinois Tax Increment Fund,
10 and the Tax Compliance and Administration Fund as provided in
11 this Section, the Department shall pay each month into the
12 Road Fund the amount estimated to represent 32% of the net
13 revenue realized from the taxes imposed on motor fuel and
14 gasohol. Beginning July 1, 2023 and until July 1, 2024,
15 subject to the payment of amounts into the County and Mass
16 Transit District Fund, the Local Government Tax Fund, the
17 Build Illinois Fund, the McCormick Place Expansion Project
18 Fund, the Illinois Tax Increment Fund, and the Tax Compliance
19 and Administration Fund as provided in this Section, the
20 Department shall pay each month into the Road Fund the amount
21 estimated to represent 48% of the net revenue realized from
22 the taxes imposed on motor fuel and gasohol. Beginning July 1,
23 2024 and until July 1, 2025, subject to the payment of amounts
24 into the County and Mass Transit District Fund, the Local
25 Government Tax Fund, the Build Illinois Fund, the McCormick
26 Place Expansion Project Fund, the Illinois Tax Increment Fund,
HB2755 Enrolled - 858 - LRB104 08253 BDA 18303 b
1 and the Tax Compliance and Administration Fund as provided in
2 this Section, the Department shall pay each month into the
3 Road Fund the amount estimated to represent 64% of the net
4 revenue realized from the taxes imposed on motor fuel and
5 gasohol. Beginning on July 1, 2025, subject to the payment of
6 amounts into the County and Mass Transit District Fund, the
7 Local Government Tax Fund, the Build Illinois Fund, the
8 McCormick Place Expansion Project Fund, the Illinois Tax
9 Increment Fund, and the Tax Compliance and Administration Fund
10 as provided in this Section, the Department shall pay each
11 month into the Road Fund the amount estimated to represent 80%
12 of the net revenue realized from the taxes imposed on motor
13 fuel and gasohol. As used in this paragraph "motor fuel" has
14 the meaning given to that term in Section 1.1 of the Motor Fuel
15 Tax Law, and "gasohol" has the meaning given to that term in
16 Section 3-40 of the Use Tax Act.
17 Until July 1, 2025, of Of the remainder of the moneys
18 received by the Department pursuant to this Act, 75% shall be
19 paid into the General Revenue Fund of the State treasury and
20 25% shall be reserved in a special account and used only for
21 the transfer to the Common School Fund as part of the monthly
22 transfer from the General Revenue Fund in accordance with
23 Section 8a of the State Finance Act. Beginning July 1, 2025, of
24 the remainder of the moneys received by the Department
25 pursuant to this Act, 75% shall be deposited into the General
26 Revenue Fund and 25% shall be deposited into the Common School
HB2755 Enrolled - 859 - LRB104 08253 BDA 18303 b
1 Fund.
2 The Department may, upon separate written notice to a
3 taxpayer, require the taxpayer to prepare and file with the
4 Department on a form prescribed by the Department within not
5 less than 60 days after receipt of the notice an annual
6 information return for the tax year specified in the notice.
7 Such annual return to the Department shall include a statement
8 of gross receipts as shown by the taxpayer's last federal
9 income tax return. If the total receipts of the business as
10 reported in the federal income tax return do not agree with the
11 gross receipts reported to the Department of Revenue for the
12 same period, the taxpayer shall attach to his annual return a
13 schedule showing a reconciliation of the 2 amounts and the
14 reasons for the difference. The taxpayer's annual return to
15 the Department shall also disclose the cost of goods sold by
16 the taxpayer during the year covered by such return, opening
17 and closing inventories of such goods for such year, cost of
18 goods used from stock or taken from stock and given away by the
19 taxpayer during such year, pay roll information of the
20 taxpayer's business during such year and any additional
21 reasonable information which the Department deems would be
22 helpful in determining the accuracy of the monthly, quarterly
23 or annual returns filed by such taxpayer as hereinbefore
24 provided for in this Section.
25 If the annual information return required by this Section
26 is not filed when and as required, the taxpayer shall be liable
HB2755 Enrolled - 860 - LRB104 08253 BDA 18303 b
1 as follows:
2 (i) Until January 1, 1994, the taxpayer shall be
3 liable for a penalty equal to 1/6 of 1% of the tax due from
4 such taxpayer under this Act during the period to be
5 covered by the annual return for each month or fraction of
6 a month until such return is filed as required, the
7 penalty to be assessed and collected in the same manner as
8 any other penalty provided for in this Act.
9 (ii) On and after January 1, 1994, the taxpayer shall
10 be liable for a penalty as described in Section 3-4 of the
11 Uniform Penalty and Interest Act.
12 The chief executive officer, proprietor, owner, or highest
13 ranking manager shall sign the annual return to certify the
14 accuracy of the information contained therein. Any person who
15 willfully signs the annual return containing false or
16 inaccurate information shall be guilty of perjury and punished
17 accordingly. The annual return form prescribed by the
18 Department shall include a warning that the person signing the
19 return may be liable for perjury.
20 The foregoing portion of this Section concerning the
21 filing of an annual information return shall not apply to a
22 serviceman who is not required to file an income tax return
23 with the United States Government.
24 As soon as possible after the first day of each month, upon
25 certification of the Department of Revenue, the Comptroller
26 shall order transferred and the Treasurer shall transfer from
HB2755 Enrolled - 861 - LRB104 08253 BDA 18303 b
1 the General Revenue Fund to the Motor Fuel Tax Fund an amount
2 equal to 1.7% of 80% of the net revenue realized under this Act
3 for the second preceding month. Beginning April 1, 2000, this
4 transfer is no longer required and shall not be made.
5 Net revenue realized for a month shall be the revenue
6 collected by the State pursuant to this Act, less the amount
7 paid out during that month as refunds to taxpayers for
8 overpayment of liability.
9 For greater simplicity of administration, it shall be
10 permissible for manufacturers, importers and wholesalers whose
11 products are sold by numerous servicemen in Illinois, and who
12 wish to do so, to assume the responsibility for accounting and
13 paying to the Department all tax accruing under this Act with
14 respect to such sales, if the servicemen who are affected do
15 not make written objection to the Department to this
16 arrangement.
17 (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
18 103-363, eff. 7-28-23; 103-592, eff. 6-7-24; 103-605, eff.
19 7-1-24.)
20 Section 35-35. The Retailers' Occupation Tax Act is
21 amended by changing Sections 2-5, 2-13, 2-51, and 3 as
22 follows:
23 (35 ILCS 120/2-5)
24 Sec. 2-5. Exemptions. Gross receipts from proceeds from
HB2755 Enrolled - 862 - LRB104 08253 BDA 18303 b
1 the sale, which, on and after January 1, 2025, includes the
2 lease, of the following tangible personal property are exempt
3 from the tax imposed by this Act:
4 (1) Farm chemicals.
5 (2) Farm machinery and equipment, both new and used,
6 including that manufactured on special order, certified by
7 the purchaser to be used primarily for production
8 agriculture or State or federal agricultural programs,
9 including individual replacement parts for the machinery
10 and equipment, including machinery and equipment purchased
11 for lease, and including implements of husbandry defined
12 in Section 1-130 of the Illinois Vehicle Code, farm
13 machinery and agricultural chemical and fertilizer
14 spreaders, and nurse wagons required to be registered
15 under Section 3-809 of the Illinois Vehicle Code, but
16 excluding other motor vehicles required to be registered
17 under the Illinois Vehicle Code. Horticultural polyhouses
18 or hoop houses used for propagating, growing, or
19 overwintering plants shall be considered farm machinery
20 and equipment under this item (2). Agricultural chemical
21 tender tanks and dry boxes shall include units sold
22 separately from a motor vehicle required to be licensed
23 and units sold mounted on a motor vehicle required to be
24 licensed, if the selling price of the tender is separately
25 stated.
26 Farm machinery and equipment shall include precision
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1 farming equipment that is installed or purchased to be
2 installed on farm machinery and equipment including, but
3 not limited to, tractors, harvesters, sprayers, planters,
4 seeders, or spreaders. Precision farming equipment
5 includes, but is not limited to, soil testing sensors,
6 computers, monitors, software, global positioning and
7 mapping systems, and other such equipment.
8 Farm machinery and equipment also includes computers,
9 sensors, software, and related equipment used primarily in
10 the computer-assisted operation of production agriculture
11 facilities, equipment, and activities such as, but not
12 limited to, the collection, monitoring, and correlation of
13 animal and crop data for the purpose of formulating animal
14 diets and agricultural chemicals.
15 Beginning on January 1, 2024, farm machinery and
16 equipment also includes electrical power generation
17 equipment used primarily for production agriculture.
18 This item (2) is exempt from the provisions of Section
19 2-70.
20 (3) Until July 1, 2003, distillation machinery and
21 equipment, sold as a unit or kit, assembled or installed
22 by the retailer, certified by the user to be used only for
23 the production of ethyl alcohol that will be used for
24 consumption as motor fuel or as a component of motor fuel
25 for the personal use of the user, and not subject to sale
26 or resale.
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1 (4) Until July 1, 2003 and beginning again September
2 1, 2004 through August 30, 2014, graphic arts machinery
3 and equipment, including repair and replacement parts,
4 both new and used, and including that manufactured on
5 special order or purchased for lease, certified by the
6 purchaser to be used primarily for graphic arts
7 production. Equipment includes chemicals or chemicals
8 acting as catalysts but only if the chemicals or chemicals
9 acting as catalysts effect a direct and immediate change
10 upon a graphic arts product. Beginning on July 1, 2017,
11 graphic arts machinery and equipment is included in the
12 manufacturing and assembling machinery and equipment
13 exemption under paragraph (14).
14 (5) A motor vehicle that is used for automobile
15 renting, as defined in the Automobile Renting Occupation
16 and Use Tax Act. This paragraph is exempt from the
17 provisions of Section 2-70.
18 (6) Personal property sold by a teacher-sponsored
19 student organization affiliated with an elementary or
20 secondary school located in Illinois.
21 (7) Until July 1, 2003, proceeds of that portion of
22 the selling price of a passenger car the sale of which is
23 subject to the Replacement Vehicle Tax.
24 (8) Personal property sold to an Illinois county fair
25 association for use in conducting, operating, or promoting
26 the county fair.
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1 (9) Personal property sold to a not-for-profit arts or
2 cultural organization that establishes, by proof required
3 by the Department by rule, that it has received an
4 exemption under Section 501(c)(3) of the Internal Revenue
5 Code and that is organized and operated primarily for the
6 presentation or support of arts or cultural programming,
7 activities, or services. These organizations include, but
8 are not limited to, music and dramatic arts organizations
9 such as symphony orchestras and theatrical groups, arts
10 and cultural service organizations, local arts councils,
11 visual arts organizations, and media arts organizations.
12 On and after July 1, 2001 (the effective date of Public Act
13 92-35), however, an entity otherwise eligible for this
14 exemption shall not make tax-free purchases unless it has
15 an active identification number issued by the Department.
16 (10) Personal property sold by a corporation, society,
17 association, foundation, institution, or organization,
18 other than a limited liability company, that is organized
19 and operated as a not-for-profit service enterprise for
20 the benefit of persons 65 years of age or older if the
21 personal property was not purchased by the enterprise for
22 the purpose of resale by the enterprise.
23 (11) Except as otherwise provided in this Section,
24 personal property sold to a governmental body, to a
25 corporation, society, association, foundation, or
26 institution organized and operated exclusively for
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1 charitable, religious, or educational purposes, or to a
2 not-for-profit corporation, society, association,
3 foundation, institution, or organization that has no
4 compensated officers or employees and that is organized
5 and operated primarily for the recreation of persons 55
6 years of age or older. A limited liability company may
7 qualify for the exemption under this paragraph only if the
8 limited liability company is organized and operated
9 exclusively for educational purposes. On and after July 1,
10 1987, however, no entity otherwise eligible for this
11 exemption shall make tax-free purchases unless it has an
12 active identification number issued by the Department.
13 (12) (Blank).
14 (12-5) On and after July 1, 2003 and through June 30,
15 2004, motor vehicles of the second division with a gross
16 vehicle weight in excess of 8,000 pounds that are subject
17 to the commercial distribution fee imposed under Section
18 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
19 2004 and through June 30, 2005, the use in this State of
20 motor vehicles of the second division: (i) with a gross
21 vehicle weight rating in excess of 8,000 pounds; (ii) that
22 are subject to the commercial distribution fee imposed
23 under Section 3-815.1 of the Illinois Vehicle Code; and
24 (iii) that are primarily used for commercial purposes.
25 Through June 30, 2005, this exemption applies to repair
26 and replacement parts added after the initial purchase of
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1 such a motor vehicle if that motor vehicle is used in a
2 manner that would qualify for the rolling stock exemption
3 otherwise provided for in this Act. For purposes of this
4 paragraph, "used for commercial purposes" means the
5 transportation of persons or property in furtherance of
6 any commercial or industrial enterprise whether for-hire
7 or not.
8 (13) Proceeds from sales to owners or lessors,
9 lessees, or shippers of tangible personal property that is
10 utilized by interstate carriers for hire for use as
11 rolling stock moving in interstate commerce and equipment
12 operated by a telecommunications provider, licensed as a
13 common carrier by the Federal Communications Commission,
14 which is permanently installed in or affixed to aircraft
15 moving in interstate commerce.
16 (14) Machinery and equipment that will be used by the
17 purchaser, or a lessee of the purchaser, primarily in the
18 process of manufacturing or assembling tangible personal
19 property for wholesale or retail sale or lease, whether
20 the sale or lease is made directly by the manufacturer or
21 by some other person, whether the materials used in the
22 process are owned by the manufacturer or some other
23 person, or whether the sale or lease is made apart from or
24 as an incident to the seller's engaging in the service
25 occupation of producing machines, tools, dies, jigs,
26 patterns, gauges, or other similar items of no commercial
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1 value on special order for a particular purchaser. The
2 exemption provided by this paragraph (14) does not include
3 machinery and equipment used in (i) the generation of
4 electricity for wholesale or retail sale; (ii) the
5 generation or treatment of natural or artificial gas for
6 wholesale or retail sale that is delivered to customers
7 through pipes, pipelines, or mains; or (iii) the treatment
8 of water for wholesale or retail sale that is delivered to
9 customers through pipes, pipelines, or mains. The
10 provisions of Public Act 98-583 are declaratory of
11 existing law as to the meaning and scope of this
12 exemption. Beginning on July 1, 2017, the exemption
13 provided by this paragraph (14) includes, but is not
14 limited to, graphic arts machinery and equipment, as
15 defined in paragraph (4) of this Section.
16 (15) Proceeds of mandatory service charges separately
17 stated on customers' bills for purchase and consumption of
18 food and beverages, to the extent that the proceeds of the
19 service charge are in fact turned over as tips or as a
20 substitute for tips to the employees who participate
21 directly in preparing, serving, hosting or cleaning up the
22 food or beverage function with respect to which the
23 service charge is imposed.
24 (16) Tangible personal property sold to a purchaser if
25 the purchaser is exempt from use tax by operation of
26 federal law. This paragraph is exempt from the provisions
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1 of Section 2-70.
2 (17) Tangible personal property sold to a common
3 carrier by rail or motor that receives the physical
4 possession of the property in Illinois and that transports
5 the property, or shares with another common carrier in the
6 transportation of the property, out of Illinois on a
7 standard uniform bill of lading showing the seller of the
8 property as the shipper or consignor of the property to a
9 destination outside Illinois, for use outside Illinois.
10 (18) Legal tender, currency, medallions, or gold or
11 silver coinage issued by the State of Illinois, the
12 government of the United States of America, or the
13 government of any foreign country, and bullion.
14 (19) Until July 1, 2003, oil field exploration,
15 drilling, and production equipment, including (i) rigs and
16 parts of rigs, rotary rigs, cable tool rigs, and workover
17 rigs, (ii) pipe and tubular goods, including casing and
18 drill strings, (iii) pumps and pump-jack units, (iv)
19 storage tanks and flow lines, (v) any individual
20 replacement part for oil field exploration, drilling, and
21 production equipment, and (vi) machinery and equipment
22 purchased for lease; but excluding motor vehicles required
23 to be registered under the Illinois Vehicle Code.
24 (20) Photoprocessing machinery and equipment,
25 including repair and replacement parts, both new and used,
26 including that manufactured on special order, certified by
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1 the purchaser to be used primarily for photoprocessing,
2 and including photoprocessing machinery and equipment
3 purchased for lease.
4 (21) Until July 1, 2028, coal and aggregate
5 exploration, mining, off-highway hauling, processing,
6 maintenance, and reclamation equipment, including
7 replacement parts and equipment, and including equipment
8 purchased for lease, but excluding motor vehicles required
9 to be registered under the Illinois Vehicle Code. The
10 changes made to this Section by Public Act 97-767 apply on
11 and after July 1, 2003, but no claim for credit or refund
12 is allowed on or after August 16, 2013 (the effective date
13 of Public Act 98-456) for such taxes paid during the
14 period beginning July 1, 2003 and ending on August 16,
15 2013 (the effective date of Public Act 98-456).
16 (22) Until June 30, 2013, fuel and petroleum products
17 sold to or used by an air carrier, certified by the carrier
18 to be used for consumption, shipment, or storage in the
19 conduct of its business as an air common carrier, for a
20 flight destined for or returning from a location or
21 locations outside the United States without regard to
22 previous or subsequent domestic stopovers.
23 Beginning July 1, 2013, fuel and petroleum products
24 sold to or used by an air carrier, certified by the carrier
25 to be used for consumption, shipment, or storage in the
26 conduct of its business as an air common carrier, for a
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1 flight that (i) is engaged in foreign trade or is engaged
2 in trade between the United States and any of its
3 possessions and (ii) transports at least one individual or
4 package for hire from the city of origination to the city
5 of final destination on the same aircraft, without regard
6 to a change in the flight number of that aircraft.
7 (23) A transaction in which the purchase order is
8 received by a florist who is located outside Illinois, but
9 who has a florist located in Illinois deliver the property
10 to the purchaser or the purchaser's donee in Illinois.
11 (24) Fuel consumed or used in the operation of ships,
12 barges, or vessels that are used primarily in or for the
13 transportation of property or the conveyance of persons
14 for hire on rivers bordering on this State if the fuel is
15 delivered by the seller to the purchaser's barge, ship, or
16 vessel while it is afloat upon that bordering river.
17 (25) Except as provided in items item (25-5) and
18 (25-6) of this Section, a motor vehicle sold in this State
19 to a nonresident even though the motor vehicle is
20 delivered to the nonresident in this State, if the motor
21 vehicle is not to be titled in this State, and if a
22 drive-away permit is issued to the motor vehicle as
23 provided in Section 3-603 of the Illinois Vehicle Code or
24 if the nonresident purchaser has vehicle registration
25 plates to transfer to the motor vehicle upon returning to
26 his or her home state. The issuance of the drive-away
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1 permit or having the out-of-state registration plates to
2 be transferred is prima facie evidence that the motor
3 vehicle will not be titled in this State.
4 (25-5) The exemption under item (25) does not apply if
5 the state in which the motor vehicle will be titled does
6 not allow a reciprocal exemption for a motor vehicle sold
7 and delivered in that state to an Illinois resident but
8 titled in Illinois. The tax collected under this Act on
9 the sale of a motor vehicle in this State to a resident of
10 another state that does not allow a reciprocal exemption
11 shall be imposed at a rate equal to the state's rate of tax
12 on taxable property in the state in which the purchaser is
13 a resident, except that the tax shall not exceed the tax
14 that would otherwise be imposed under this Act. At the
15 time of the sale, the purchaser shall execute a statement,
16 signed under penalty of perjury, of his or her intent to
17 title the vehicle in the state in which the purchaser is a
18 resident within 30 days after the sale and of the fact of
19 the payment to the State of Illinois of tax in an amount
20 equivalent to the state's rate of tax on taxable property
21 in his or her state of residence and shall submit the
22 statement to the appropriate tax collection agency in his
23 or her state of residence. In addition, the retailer must
24 retain a signed copy of the statement in his or her
25 records. Nothing in this item shall be construed to
26 require the removal of the vehicle from this state
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1 following the filing of an intent to title the vehicle in
2 the purchaser's state of residence if the purchaser titles
3 the vehicle in his or her state of residence within 30 days
4 after the date of sale. The tax collected under this Act in
5 accordance with this item (25-5) shall be proportionately
6 distributed as if the tax were collected at the 6.25%
7 general rate imposed under this Act.
8 (25-6) There is a rebuttable presumption that the
9 exemption under item (25) does not apply if the purchaser
10 is a limited liability company and a member of the limited
11 liability company is a resident of Illinois. This
12 presumption may be rebutted by other evidence, such as
13 evidence the motor vehicle is insured at a garaging or
14 storage address outside Illinois or other evidence of the
15 physical address at which the motor vehicle will be
16 permanently stored or garaged outside Illinois.
17 (25-7) Beginning on July 1, 2007, no tax is imposed
18 under this Act on the sale of an aircraft, as defined in
19 Section 3 of the Illinois Aeronautics Act, if all of the
20 following conditions are met:
21 (1) the aircraft leaves this State within 15 days
22 after the later of either the issuance of the final
23 billing for the sale of the aircraft, or the
24 authorized approval for return to service, completion
25 of the maintenance record entry, and completion of the
26 test flight and ground test for inspection, as
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1 required by 14 CFR 91.407;
2 (2) the aircraft is not based or registered in
3 this State after the sale of the aircraft; and
4 (3) the seller retains in his or her books and
5 records and provides to the Department a signed and
6 dated certification from the purchaser, on a form
7 prescribed by the Department, certifying that the
8 requirements of this item (25-7) are met. The
9 certificate must also include the name and address of
10 the purchaser, the address of the location where the
11 aircraft is to be titled or registered, the address of
12 the primary physical location of the aircraft, and
13 other information that the Department may reasonably
14 require.
15 For purposes of this item (25-7):
16 "Based in this State" means hangared, stored, or
17 otherwise used, excluding post-sale customizations as
18 defined in this Section, for 10 or more days in each
19 12-month period immediately following the date of the sale
20 of the aircraft.
21 "Registered in this State" means an aircraft
22 registered with the Department of Transportation,
23 Aeronautics Division, or titled or registered with the
24 Federal Aviation Administration to an address located in
25 this State.
26 This paragraph (25-7) is exempt from the provisions of
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1 Section 2-70.
2 (26) Semen used for artificial insemination of
3 livestock for direct agricultural production.
4 (27) Horses, or interests in horses, registered with
5 and meeting the requirements of any of the Arabian Horse
6 Club Registry of America, Appaloosa Horse Club, American
7 Quarter Horse Association, United States Trotting
8 Association, or Jockey Club, as appropriate, used for
9 purposes of breeding or racing for prizes. This item (27)
10 is exempt from the provisions of Section 2-70, and the
11 exemption provided for under this item (27) applies for
12 all periods beginning May 30, 1995, but no claim for
13 credit or refund is allowed on or after January 1, 2008
14 (the effective date of Public Act 95-88) for such taxes
15 paid during the period beginning May 30, 2000 and ending
16 on January 1, 2008 (the effective date of Public Act
17 95-88).
18 (28) Computers and communications equipment utilized
19 for any hospital purpose and equipment used in the
20 diagnosis, analysis, or treatment of hospital patients
21 sold to a lessor who leases the equipment, under a lease of
22 one year or longer executed or in effect at the time of the
23 purchase, to a hospital that has been issued an active tax
24 exemption identification number by the Department under
25 Section 1g of this Act.
26 (29) Personal property sold to a lessor who leases the
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1 property, under a lease of one year or longer executed or
2 in effect at the time of the purchase, to a governmental
3 body that has been issued an active tax exemption
4 identification number by the Department under Section 1g
5 of this Act.
6 (30) Beginning with taxable years ending on or after
7 December 31, 1995 and ending with taxable years ending on
8 or before December 31, 2004, personal property that is
9 donated for disaster relief to be used in a State or
10 federally declared disaster area in Illinois or bordering
11 Illinois by a manufacturer or retailer that is registered
12 in this State to a corporation, society, association,
13 foundation, or institution that has been issued a sales
14 tax exemption identification number by the Department that
15 assists victims of the disaster who reside within the
16 declared disaster area.
17 (31) Beginning with taxable years ending on or after
18 December 31, 1995 and ending with taxable years ending on
19 or before December 31, 2004, personal property that is
20 used in the performance of infrastructure repairs in this
21 State, including, but not limited to, municipal roads and
22 streets, access roads, bridges, sidewalks, waste disposal
23 systems, water and sewer line extensions, water
24 distribution and purification facilities, storm water
25 drainage and retention facilities, and sewage treatment
26 facilities, resulting from a State or federally declared
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1 disaster in Illinois or bordering Illinois when such
2 repairs are initiated on facilities located in the
3 declared disaster area within 6 months after the disaster.
4 (32) Beginning July 1, 1999, game or game birds sold
5 at a "game breeding and hunting preserve area" as that
6 term is used in the Wildlife Code. This paragraph is
7 exempt from the provisions of Section 2-70.
8 (33) A motor vehicle, as that term is defined in
9 Section 1-146 of the Illinois Vehicle Code, that is
10 donated to a corporation, limited liability company,
11 society, association, foundation, or institution that is
12 determined by the Department to be organized and operated
13 exclusively for educational purposes. For purposes of this
14 exemption, "a corporation, limited liability company,
15 society, association, foundation, or institution organized
16 and operated exclusively for educational purposes" means
17 all tax-supported public schools, private schools that
18 offer systematic instruction in useful branches of
19 learning by methods common to public schools and that
20 compare favorably in their scope and intensity with the
21 course of study presented in tax-supported schools, and
22 vocational or technical schools or institutes organized
23 and operated exclusively to provide a course of study of
24 not less than 6 weeks duration and designed to prepare
25 individuals to follow a trade or to pursue a manual,
26 technical, mechanical, industrial, business, or commercial
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1 occupation.
2 (34) Beginning January 1, 2000, personal property,
3 including food, purchased through fundraising events for
4 the benefit of a public or private elementary or secondary
5 school, a group of those schools, or one or more school
6 districts if the events are sponsored by an entity
7 recognized by the school district that consists primarily
8 of volunteers and includes parents and teachers of the
9 school children. This paragraph does not apply to
10 fundraising events (i) for the benefit of private home
11 instruction or (ii) for which the fundraising entity
12 purchases the personal property sold at the events from
13 another individual or entity that sold the property for
14 the purpose of resale by the fundraising entity and that
15 profits from the sale to the fundraising entity. This
16 paragraph is exempt from the provisions of Section 2-70.
17 (35) Beginning January 1, 2000 and through December
18 31, 2001, new or used automatic vending machines that
19 prepare and serve hot food and beverages, including
20 coffee, soup, and other items, and replacement parts for
21 these machines. Beginning January 1, 2002 and through June
22 30, 2003, machines and parts for machines used in
23 commercial, coin-operated amusement and vending business
24 if a use or occupation tax is paid on the gross receipts
25 derived from the use of the commercial, coin-operated
26 amusement and vending machines. This paragraph is exempt
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1 from the provisions of Section 2-70.
2 (35-5) Beginning August 23, 2001 and through June 30,
3 2016, food for human consumption that is to be consumed
4 off the premises where it is sold (other than alcoholic
5 beverages, soft drinks, and food that has been prepared
6 for immediate consumption) and prescription and
7 nonprescription medicines, drugs, medical appliances, and
8 insulin, urine testing materials, syringes, and needles
9 used by diabetics, for human use, when purchased for use
10 by a person receiving medical assistance under Article V
11 of the Illinois Public Aid Code who resides in a licensed
12 long-term care facility, as defined in the Nursing Home
13 Care Act, or a licensed facility as defined in the ID/DD
14 Community Care Act, the MC/DD Act, or the Specialized
15 Mental Health Rehabilitation Act of 2013.
16 (36) Beginning August 2, 2001, computers and
17 communications equipment utilized for any hospital purpose
18 and equipment used in the diagnosis, analysis, or
19 treatment of hospital patients sold to a lessor who leases
20 the equipment, under a lease of one year or longer
21 executed or in effect at the time of the purchase, to a
22 hospital that has been issued an active tax exemption
23 identification number by the Department under Section 1g
24 of this Act. This paragraph is exempt from the provisions
25 of Section 2-70.
26 (37) Beginning August 2, 2001, personal property sold
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1 to a lessor who leases the property, under a lease of one
2 year or longer executed or in effect at the time of the
3 purchase, to a governmental body that has been issued an
4 active tax exemption identification number by the
5 Department under Section 1g of this Act. This paragraph is
6 exempt from the provisions of Section 2-70.
7 (38) Beginning on January 1, 2002 and through June 30,
8 2016, tangible personal property purchased from an
9 Illinois retailer by a taxpayer engaged in centralized
10 purchasing activities in Illinois who will, upon receipt
11 of the property in Illinois, temporarily store the
12 property in Illinois (i) for the purpose of subsequently
13 transporting it outside this State for use or consumption
14 thereafter solely outside this State or (ii) for the
15 purpose of being processed, fabricated, or manufactured
16 into, attached to, or incorporated into other tangible
17 personal property to be transported outside this State and
18 thereafter used or consumed solely outside this State. The
19 Director of Revenue shall, pursuant to rules adopted in
20 accordance with the Illinois Administrative Procedure Act,
21 issue a permit to any taxpayer in good standing with the
22 Department who is eligible for the exemption under this
23 paragraph (38). The permit issued under this paragraph
24 (38) shall authorize the holder, to the extent and in the
25 manner specified in the rules adopted under this Act, to
26 purchase tangible personal property from a retailer exempt
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1 from the taxes imposed by this Act. Taxpayers shall
2 maintain all necessary books and records to substantiate
3 the use and consumption of all such tangible personal
4 property outside of the State of Illinois.
5 (39) Beginning January 1, 2008, tangible personal
6 property used in the construction or maintenance of a
7 community water supply, as defined under Section 3.145 of
8 the Environmental Protection Act, that is operated by a
9 not-for-profit corporation that holds a valid water supply
10 permit issued under Title IV of the Environmental
11 Protection Act. This paragraph is exempt from the
12 provisions of Section 2-70.
13 (40) Beginning January 1, 2010 and continuing through
14 December 31, 2029, materials, parts, equipment,
15 components, and furnishings incorporated into or upon an
16 aircraft as part of the modification, refurbishment,
17 completion, replacement, repair, or maintenance of the
18 aircraft. This exemption includes consumable supplies used
19 in the modification, refurbishment, completion,
20 replacement, repair, and maintenance of aircraft. However,
21 until January 1, 2024, this exemption excludes any
22 materials, parts, equipment, components, and consumable
23 supplies used in the modification, replacement, repair,
24 and maintenance of aircraft engines or power plants,
25 whether such engines or power plants are installed or
26 uninstalled upon any such aircraft. "Consumable supplies"
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1 include, but are not limited to, adhesive, tape,
2 sandpaper, general purpose lubricants, cleaning solution,
3 latex gloves, and protective films.
4 Beginning January 1, 2010 and continuing through
5 December 31, 2023, this exemption applies only to the sale
6 of qualifying tangible personal property to persons who
7 modify, refurbish, complete, replace, or maintain an
8 aircraft and who (i) hold an Air Agency Certificate and
9 are empowered to operate an approved repair station by the
10 Federal Aviation Administration, (ii) have a Class IV
11 Rating, and (iii) conduct operations in accordance with
12 Part 145 of the Federal Aviation Regulations. The
13 exemption does not include aircraft operated by a
14 commercial air carrier providing scheduled passenger air
15 service pursuant to authority issued under Part 121 or
16 Part 129 of the Federal Aviation Regulations. From January
17 1, 2024 through December 31, 2029, this exemption applies
18 only to the sale of qualifying tangible personal property
19 to: (A) persons who modify, refurbish, complete, repair,
20 replace, or maintain aircraft and who (i) hold an Air
21 Agency Certificate and are empowered to operate an
22 approved repair station by the Federal Aviation
23 Administration, (ii) have a Class IV Rating, and (iii)
24 conduct operations in accordance with Part 145 of the
25 Federal Aviation Regulations; and (B) persons who engage
26 in the modification, replacement, repair, and maintenance
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1 of aircraft engines or power plants without regard to
2 whether or not those persons meet the qualifications of
3 item (A).
4 The changes made to this paragraph (40) by Public Act
5 98-534 are declarative of existing law. It is the intent
6 of the General Assembly that the exemption under this
7 paragraph (40) applies continuously from January 1, 2010
8 through December 31, 2024; however, no claim for credit or
9 refund is allowed for taxes paid as a result of the
10 disallowance of this exemption on or after January 1, 2015
11 and prior to February 5, 2020 (the effective date of
12 Public Act 101-629).
13 (41) Tangible personal property sold to a
14 public-facilities corporation, as described in Section
15 11-65-10 of the Illinois Municipal Code, for purposes of
16 constructing or furnishing a municipal convention hall,
17 but only if the legal title to the municipal convention
18 hall is transferred to the municipality without any
19 further consideration by or on behalf of the municipality
20 at the time of the completion of the municipal convention
21 hall or upon the retirement or redemption of any bonds or
22 other debt instruments issued by the public-facilities
23 corporation in connection with the development of the
24 municipal convention hall. This exemption includes
25 existing public-facilities corporations as provided in
26 Section 11-65-25 of the Illinois Municipal Code. This
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1 paragraph is exempt from the provisions of Section 2-70.
2 (42) Beginning January 1, 2017 and through December
3 31, 2026, menstrual pads, tampons, and menstrual cups.
4 (43) Merchandise that is subject to the Rental
5 Purchase Agreement Occupation and Use Tax. The purchaser
6 must certify that the item is purchased to be rented
7 subject to a rental-purchase agreement, as defined in the
8 Rental-Purchase Agreement Act, and provide proof of
9 registration under the Rental Purchase Agreement
10 Occupation and Use Tax Act. This paragraph is exempt from
11 the provisions of Section 2-70.
12 (44) Qualified tangible personal property used in the
13 construction or operation of a data center that has been
14 granted a certificate of exemption by the Department of
15 Commerce and Economic Opportunity, whether that tangible
16 personal property is purchased by the owner, operator, or
17 tenant of the data center or by a contractor or
18 subcontractor of the owner, operator, or tenant. Data
19 centers that would have qualified for a certificate of
20 exemption prior to January 1, 2020 had Public Act 101-31
21 been in effect, may apply for and obtain an exemption for
22 subsequent purchases of computer equipment or enabling
23 software purchased or leased to upgrade, supplement, or
24 replace computer equipment or enabling software purchased
25 or leased in the original investment that would have
26 qualified.
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1 The Department of Commerce and Economic Opportunity
2 shall grant a certificate of exemption under this item
3 (44) to qualified data centers as defined by Section
4 605-1025 of the Department of Commerce and Economic
5 Opportunity Law of the Civil Administrative Code of
6 Illinois.
7 For the purposes of this item (44):
8 "Data center" means a building or a series of
9 buildings rehabilitated or constructed to house
10 working servers in one physical location or multiple
11 sites within the State of Illinois.
12 "Qualified tangible personal property" means:
13 electrical systems and equipment; climate control and
14 chilling equipment and systems; mechanical systems and
15 equipment; monitoring and secure systems; emergency
16 generators; hardware; computers; servers; data storage
17 devices; network connectivity equipment; racks;
18 cabinets; telecommunications cabling infrastructure;
19 raised floor systems; peripheral components or
20 systems; software; mechanical, electrical, or plumbing
21 systems; battery systems; cooling systems and towers;
22 temperature control systems; other cabling; and other
23 data center infrastructure equipment and systems
24 necessary to operate qualified tangible personal
25 property, including fixtures; and component parts of
26 any of the foregoing, including installation,
HB2755 Enrolled - 886 - LRB104 08253 BDA 18303 b
1 maintenance, repair, refurbishment, and replacement of
2 qualified tangible personal property to generate,
3 transform, transmit, distribute, or manage electricity
4 necessary to operate qualified tangible personal
5 property; and all other tangible personal property
6 that is essential to the operations of a computer data
7 center. The term "qualified tangible personal
8 property" also includes building materials physically
9 incorporated into the qualifying data center. To
10 document the exemption allowed under this Section, the
11 retailer must obtain from the purchaser a copy of the
12 certificate of eligibility issued by the Department of
13 Commerce and Economic Opportunity.
14 This item (44) is exempt from the provisions of
15 Section 2-70.
16 (45) Beginning January 1, 2020 and through December
17 31, 2020, sales of tangible personal property made by a
18 marketplace seller over a marketplace for which tax is due
19 under this Act but for which use tax has been collected and
20 remitted to the Department by a marketplace facilitator
21 under Section 2d of the Use Tax Act are exempt from tax
22 under this Act. A marketplace seller claiming this
23 exemption shall maintain books and records demonstrating
24 that the use tax on such sales has been collected and
25 remitted by a marketplace facilitator. Marketplace sellers
26 that have properly remitted tax under this Act on such
HB2755 Enrolled - 887 - LRB104 08253 BDA 18303 b
1 sales may file a claim for credit as provided in Section 6
2 of this Act. No claim is allowed, however, for such taxes
3 for which a credit or refund has been issued to the
4 marketplace facilitator under the Use Tax Act, or for
5 which the marketplace facilitator has filed a claim for
6 credit or refund under the Use Tax Act.
7 (46) Beginning July 1, 2022, breast pumps, breast pump
8 collection and storage supplies, and breast pump kits.
9 This item (46) is exempt from the provisions of Section
10 2-70. As used in this item (46):
11 "Breast pump" means an electrically controlled or
12 manually controlled pump device designed or marketed to be
13 used to express milk from a human breast during lactation,
14 including the pump device and any battery, AC adapter, or
15 other power supply unit that is used to power the pump
16 device and is packaged and sold with the pump device at the
17 time of sale.
18 "Breast pump collection and storage supplies" means
19 items of tangible personal property designed or marketed
20 to be used in conjunction with a breast pump to collect
21 milk expressed from a human breast and to store collected
22 milk until it is ready for consumption.
23 "Breast pump collection and storage supplies"
24 includes, but is not limited to: breast shields and breast
25 shield connectors; breast pump tubes and tubing adapters;
26 breast pump valves and membranes; backflow protectors and
HB2755 Enrolled - 888 - LRB104 08253 BDA 18303 b
1 backflow protector adaptors; bottles and bottle caps
2 specific to the operation of the breast pump; and breast
3 milk storage bags.
4 "Breast pump collection and storage supplies" does not
5 include: (1) bottles and bottle caps not specific to the
6 operation of the breast pump; (2) breast pump travel bags
7 and other similar carrying accessories, including ice
8 packs, labels, and other similar products; (3) breast pump
9 cleaning supplies; (4) nursing bras, bra pads, breast
10 shells, and other similar products; and (5) creams,
11 ointments, and other similar products that relieve
12 breastfeeding-related symptoms or conditions of the
13 breasts or nipples, unless sold as part of a breast pump
14 kit that is pre-packaged by the breast pump manufacturer
15 or distributor.
16 "Breast pump kit" means a kit that: (1) contains no
17 more than a breast pump, breast pump collection and
18 storage supplies, a rechargeable battery for operating the
19 breast pump, a breastmilk cooler, bottle stands, ice
20 packs, and a breast pump carrying case; and (2) is
21 pre-packaged as a breast pump kit by the breast pump
22 manufacturer or distributor.
23 (47) Tangible personal property sold by or on behalf
24 of the State Treasurer pursuant to the Revised Uniform
25 Unclaimed Property Act. This item (47) is exempt from the
26 provisions of Section 2-70.
HB2755 Enrolled - 889 - LRB104 08253 BDA 18303 b
1 (48) Beginning on January 1, 2024, tangible personal
2 property purchased by an active duty member of the armed
3 forces of the United States who presents valid military
4 identification and purchases the property using a form of
5 payment where the federal government is the payor. The
6 member of the armed forces must complete, at the point of
7 sale, a form prescribed by the Department of Revenue
8 documenting that the transaction is eligible for the
9 exemption under this paragraph. Retailers must keep the
10 form as documentation of the exemption in their records
11 for a period of not less than 6 years. "Armed forces of the
12 United States" means the United States Army, Navy, Air
13 Force, Space Force, Marine Corps, or Coast Guard. This
14 paragraph is exempt from the provisions of Section 2-70.
15 (49) Beginning July 1, 2024, home-delivered meals
16 provided to Medicare or Medicaid recipients when payment
17 is made by an intermediary, such as a Medicare
18 Administrative Contractor, a Managed Care Organization, or
19 a Medicare Advantage Organization, pursuant to a
20 government contract. This paragraph (49) is exempt from
21 the provisions of Section 2-70.
22 (50) (49) Beginning on January 1, 2026, as further
23 defined in Section 2-10, food for human consumption that
24 is to be consumed off the premises where it is sold (other
25 than alcoholic beverages, food consisting of or infused
26 with adult use cannabis, soft drinks, candy, and food that
HB2755 Enrolled - 890 - LRB104 08253 BDA 18303 b
1 has been prepared for immediate consumption). This item
2 (50) (49) is exempt from the provisions of Section 2-70.
3 (51) (49) Gross receipts from the lease of the
4 following tangible personal property:
5 (1) computer software transferred subject to a
6 license that meets the following requirements:
7 (A) it is evidenced by a written agreement
8 signed by the licensor and the customer;
9 (i) an electronic agreement in which the
10 customer accepts the license by means of an
11 electronic signature that is verifiable and
12 can be authenticated and is attached to or
13 made part of the license will comply with this
14 requirement;
15 (ii) a license agreement in which the
16 customer electronically accepts the terms by
17 clicking "I agree" does not comply with this
18 requirement;
19 (B) it restricts the customer's duplication
20 and use of the software;
21 (C) it prohibits the customer from licensing,
22 sublicensing, or transferring the software to a
23 third party (except to a related party) without
24 the permission and continued control of the
25 licensor;
26 (D) the licensor has a policy of providing
HB2755 Enrolled - 891 - LRB104 08253 BDA 18303 b
1 another copy at minimal or no charge if the
2 customer loses or damages the software, or of
3 permitting the licensee to make and keep an
4 archival copy, and such policy is either stated in
5 the license agreement, supported by the licensor's
6 books and records, or supported by a notarized
7 statement made under penalties of perjury by the
8 licensor; and
9 (E) the customer must destroy or return all
10 copies of the software to the licensor at the end
11 of the license period; this provision is deemed to
12 be met, in the case of a perpetual license,
13 without being set forth in the license agreement;
14 and
15 (2) property that is subject to a tax on lease
16 receipts imposed by a home rule unit of local
17 government if the ordinance imposing that tax was
18 adopted prior to January 1, 2023.
19 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
20 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
21 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
22 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
23 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
24 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; 103-592,
25 eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff. 7-1-24;
26 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995, eff.
HB2755 Enrolled - 892 - LRB104 08253 BDA 18303 b
1 8-9-24; revised 11-26-24.)
2 (35 ILCS 120/2-13 new)
3 Sec. 2-13. Remote Retailer Amnesty Program.
4 (a) As used in this Section:
5 "Eligibility period" means the period from January 1, 2021
6 through June 30, 2026.
7 "Eligible transaction" means the sale of tangible personal
8 property by a remote retailer to an Illinois customer that
9 occurs during the eligibility period and that requires the
10 remote retailer to ship or otherwise deliver the tangible
11 personal property to an address in the State.
12 "Local retailers' occupation tax" means a retailers'
13 occupation tax imposed by a municipality, county, or other
14 unit of local government and administered by the Department.
15 "Program" means the Remote Retailer Amnesty Program
16 established under this Section.
17 "Remote retailer" means a remote retailer, as defined in
18 Section 1 of this Act, who has met a tax remittance threshold
19 under subsection (b) of Section 2 of this Act for all or part
20 of the eligibility period and who is participating in the
21 Program established under this Section.
22 "Remote retailer amnesty period" means the period from
23 August 1, 2026 through October 31, 2026, during which the
24 Department will accept returns and payment of State and local
25 retailers' occupation taxes at the simplified retailers'
HB2755 Enrolled - 893 - LRB104 08253 BDA 18303 b
1 occupation tax rate for eligible transactions that occur
2 during the eligibility period.
3 "Simplified retailers' occupation tax rate" means the
4 combined State and average local retailers' occupation tax
5 rate imposed on remote retailers participating in the Program.
6 The simplified retailers' occupation tax rate shall be (i) 9%
7 of the gross receipts from sales of tangible personal property
8 that are subject to the 6.25% State rate of tax imposed by
9 Section 2-10 of this Act or (ii) 1.75% of the gross receipts
10 from sales of (A) tangible personal property that is subject
11 to the 1% State rate of tax imposed by Section 2-10 of this Act
12 and (B) food for human consumption that is to be consumed off
13 the premises where it is sold (other than alcoholic beverages,
14 food consisting of or infused with adult use cannabis, soft
15 drinks, and food that has been prepared for immediate
16 consumption), regardless of the applicable rate of tax.
17 "Taxing jurisdiction" means a municipality, county, or
18 other unit of local government that imposes a local retailers'
19 occupation tax.
20 (b) The Department shall establish a Remote Retailer
21 Amnesty Program for remote retailers that owe State or local
22 retailers' occupation taxes on eligible transactions. The
23 Program shall operate during the remote retailer amnesty
24 period.
25 The Program shall allow a remote retailer who participates
26 in the Program to report and remit, at the simplified
HB2755 Enrolled - 894 - LRB104 08253 BDA 18303 b
1 retailers' occupation tax rate, State and local retailers'
2 occupation taxes that are due in connection with eligible
3 transactions. The payment shall be made by the remote retailer
4 during the remote retailer amnesty period and shall be in lieu
5 of reporting and remitting State and local retailers'
6 occupation taxes at the rate otherwise provided by law. The
7 payment of the tax at the simplified retailers' occupation tax
8 rate relieves the remote retailer of any additional State or
9 local retailers' occupation taxes with respect to the eligible
10 transaction.
11 The Program shall provide that, if the remote retailer
12 satisfies its State and local retailers' occupation tax
13 liability during the remote retailer amnesty period by
14 reporting and remitting payment to the Department at the
15 simplified retailers' occupation tax rate, the Department
16 shall abate and not seek to collect any interest or penalties
17 that may be applicable with respect to those eligible
18 transactions, and the Department shall not seek civil or
19 criminal prosecution of the remote retailer for the period of
20 time for which amnesty has been granted to the retailer. The
21 remote retailer must make full payment of all State and local
22 retailers' occupation taxes due with respect to the remote
23 retailer's eligible transactions, using the simplified
24 retailers' occupation tax rate, during the remote retailer
25 amnesty period for amnesty to be granted, unless the remote
26 retailer enters into an approved repayment plan with the
HB2755 Enrolled - 895 - LRB104 08253 BDA 18303 b
1 Department during the remote retailer amnesty period. In that
2 case, amnesty shall be granted upon successful completion of
3 the repayment plan as long as the taxpayer remains in
4 compliance with the terms of the payment plan throughout its
5 duration. Failure to pay all taxes due using the simplified
6 retailers' occupation tax rate for the eligible period, unless
7 tax has previously been remitted using the applicable State
8 and local retailers' occupation tax rates, shall invalidate
9 any amnesty granted under this Act, and all retailers'
10 occupation tax due for the eligible period shall be due at the
11 applicable State and local rate for the particular selling
12 location.
13 (c) Amnesty shall be granted only if all amnesty
14 conditions are satisfied by the taxpayer. The amnesty provided
15 by this Section shall be granted to any remote retailer who,
16 during the remote retailer amnesty period, files all returns
17 and remits all State and local retailers' occupation tax on
18 all eligible transactions using the simplified retailers'
19 occupation tax rate or otherwise applicable State and local
20 retailers' occupation tax rates due for all of the remote
21 retailer's eligible transactions. In addition, the following
22 requirements apply to the Program:
23 (1) to participate in the Program, the remote
24 retailers must be registered with the Department as set
25 out in Section 2a of this Act;
26 (2) returns filed under the Program shall be filed
HB2755 Enrolled - 896 - LRB104 08253 BDA 18303 b
1 electronically in the manner prescribed by the Department
2 in Section 3 of this Act and shall be filed only during the
3 remote retailer amnesty period;
4 (3) the remote retailer shall remit the tax at the
5 simplified retailers' occupation tax rate or, if the tax
6 was collected, in the amount of the tax collected,
7 whichever is greater; the required reporting for each
8 return period from the remote retailer shall include only
9 statewide totals of the retailers' occupation taxes
10 remitted at the simplified retailers' occupation tax rate
11 and shall not require information related to the location
12 of purchasers or amount of sales into a specific taxing
13 jurisdiction;
14 (4) amnesty is not available for any retailers'
15 occupation tax remitted to the Department prior to the
16 remote retailer amnesty program period by the remote
17 retailer;
18 (5) amnesty shall not be granted to taxpayers who are
19 a party to any criminal investigation or to any civil or
20 criminal litigation that is pending in any circuit court,
21 any appellate court, or the Supreme Court of this State
22 for nonpayment, delinquency, or fraud in relation to any
23 State tax imposed by any law of the State of Illinois;
24 (6) amnesty shall not be granted to taxpayers who
25 commit fraud or intentional misrepresentation of a
26 material fact in any document filed under the Remote
HB2755 Enrolled - 897 - LRB104 08253 BDA 18303 b
1 Retailer Amnesty Program; and
2 (7) amnesty is applicable only to retailers'
3 occupation taxes due from the remote retailer in his or
4 her capacity as a remote retailer and not to any other
5 taxes that may be owed by the remote retailer pursuant to
6 another tax Act.
7 (d) Except as otherwise provided in paragraph (3) of
8 subsection (c), no remote retailer shall be required to remit
9 the tax at a rate greater than 9% or 1.75%, as applicable,
10 regardless of the combined actual tax rates that may otherwise
11 be applicable. Additionally, no gross receipts for which State
12 and local retailers' occupation tax is remitted at the
13 simplified retailers' occupation tax rate shall be subject to
14 any additional retailers' occupation tax from any taxing
15 jurisdiction imposing a retailers' occupation tax with respect
16 to the sale of the property, regardless of the actual tax rate
17 that might have otherwise been applicable.
18 (e) The remote retailer shall remit the State and local
19 retailers' occupation tax at the simplified rate on all gross
20 receipts from sales of tangible personal property into
21 Illinois unless the remote retailer can produce a valid
22 exemption number or certificate, resale certificate, or direct
23 pay permit issued by the Department. The remote retailer shall
24 retain all exemption numbers or certificates, resale
25 certificates, or direct pay permits in its books and records,
26 or in such other manner as directed by the Department.
HB2755 Enrolled - 898 - LRB104 08253 BDA 18303 b
1 (f) Remote retailers shall maintain records of all
2 eligible transactions, including copies of invoices showing
3 the purchaser, the purchase amount, the taxes collected, and
4 the retailers' occupation tax remitted. Records must be kept
5 documenting all tangible personal property sold for which the
6 1.75% simplified retailers' occupation tax rate is used to
7 verify that the tangible personal property qualifies for the
8 1% State tax rate imposed under Section 2-10 of this Act. Those
9 records shall be made available for review and inspection upon
10 request by the Department. Remote retailers participating in
11 the Program remain subject to audit by the Department as
12 provided in this Act. Remote retailers participating in the
13 Program shall not be subject to audit or review by any unit of
14 local government under the Local Government Revenue Recapture
15 Act.
16 (g) The net revenue realized at the 9% rate under this
17 Section shall be deposited as follows: (i) notwithstanding the
18 provisions of Section 3 of the Retailer's Occupation Tax Act
19 to the contrary, the net revenue realized from the portion of
20 the rate in excess of 5% shall be deposited into the State and
21 Local Sales Tax Reform Fund and (ii) the net revenue realized
22 from the 5% portion of the rate shall be deposited as provided
23 in this Section 3 of the Retailers' Occupation Tax Act for the
24 5% portion of the 6.25% general rate imposed under this Act.
25 The net revenue realized at the 1.75% rate under this Section
26 shall be deposited into the State and Local Sales Tax Reform
HB2755 Enrolled - 899 - LRB104 08253 BDA 18303 b
1 Fund.
2 (h) The Department may adopt rules related to the
3 implementation, administration, and participation in the
4 Program. The Department shall have exclusive responsibility
5 for reviewing and accepting applications for participation and
6 for the administration, return processing, and review of the
7 eligibility of remote retailers participating in the Program.
8 (35 ILCS 120/2-51)
9 Sec. 2-51. Motor vehicles; trailers; use as rolling stock
10 definition.
11 (a) (Blank).
12 (b) (Blank).
13 (c) This subsection (c) applies to motor vehicles, other
14 than limousines, purchased through June 30, 2017. For motor
15 vehicles, other than limousines, purchased on or after July 1,
16 2017, subsection (d-5) applies. This subsection (c) applies to
17 limousines purchased before, on, or after July 1, 2017. "Use
18 as rolling stock moving in interstate commerce" in paragraph
19 (13) of Section 2-5 occurs for motor vehicles, as defined in
20 Section 1-146 of the Illinois Vehicle Code, when during a
21 12-month period the rolling stock has carried persons or
22 property for hire in interstate commerce for greater than 50%
23 of its total trips for that period or for greater than 50% of
24 its total miles for that period. The person claiming the
25 exemption shall make an election at the time of purchase to use
HB2755 Enrolled - 900 - LRB104 08253 BDA 18303 b
1 either the trips or mileage method. Persons who purchased
2 motor vehicles prior to July 1, 2004 shall make an election to
3 use either the trips or mileage method and document that
4 election in their books and records. If no election is made
5 under this subsection to use the trips or mileage method, the
6 person shall be deemed to have chosen the mileage method.
7 For purposes of determining qualifying trips or miles,
8 motor vehicles that carry persons or property for hire, even
9 just between points in Illinois, will be considered used for
10 hire in interstate commerce if the motor vehicle transports
11 persons whose journeys or property whose shipments originate
12 or terminate outside Illinois. The exemption for motor
13 vehicles used as rolling stock moving in interstate commerce
14 may be claimed only for the following vehicles: (i) motor
15 vehicles whose gross vehicle weight rating exceeds 16,000
16 pounds; and (ii) limousines, as defined in Section 1-139.1 of
17 the Illinois Vehicle Code. On and after July 1, 2025, the
18 exemption for limousines applies only if those limousines are
19 not used to provide transportation network company services,
20 as defined in the Transportation Network Providers Act.
21 Through June 30, 2017, this definition applies to all property
22 purchased for the purpose of being attached to those motor
23 vehicles as a part thereof. On and after July 1, 2017, this
24 definition applies to property purchased for the purpose of
25 being attached to limousines as a part thereof. For property
26 that is purchased on or after July 1, 2025 for the purpose of
HB2755 Enrolled - 901 - LRB104 08253 BDA 18303 b
1 being attached to a limousine as a part thereof, this
2 definition applies only if the limousine is not used to
3 provide transportation network company services, as defined in
4 the Transportation Network Providers Act.
5 (d) For purchases made through June 30, 2017, "use as
6 rolling stock moving in interstate commerce" in paragraph (13)
7 of Section 2-5 occurs for trailers, as defined in Section
8 1-209 of the Illinois Vehicle Code, semitrailers as defined in
9 Section 1-187 of the Illinois Vehicle Code, and pole trailers
10 as defined in Section 1-161 of the Illinois Vehicle Code, when
11 during a 12-month period the rolling stock has carried persons
12 or property for hire in interstate commerce for greater than
13 50% of its total trips for that period or for greater than 50%
14 of its total miles for that period. The person claiming the
15 exemption for a trailer or trailers that will not be dedicated
16 to a motor vehicle or group of motor vehicles shall make an
17 election at the time of purchase to use either the trips or
18 mileage method. Persons who purchased trailers prior to July
19 1, 2004 that are not dedicated to a motor vehicle or group of
20 motor vehicles shall make an election to use either the trips
21 or mileage method and document that election in their books
22 and records. If no election is made under this subsection to
23 use the trips or mileage method, the person shall be deemed to
24 have chosen the mileage method.
25 For purposes of determining qualifying trips or miles,
26 trailers, semitrailers, or pole trailers that carry property
HB2755 Enrolled - 902 - LRB104 08253 BDA 18303 b
1 for hire, even just between points in Illinois, will be
2 considered used for hire in interstate commerce if the
3 trailers, semitrailers, or pole trailers transport property
4 whose shipments originate or terminate outside Illinois. This
5 definition applies to all property purchased for the purpose
6 of being attached to those trailers, semitrailers, or pole
7 trailers as a part thereof. In lieu of a person providing
8 documentation regarding the qualifying use of each individual
9 trailer, semitrailer, or pole trailer, that person may
10 document such qualifying use by providing documentation of the
11 following:
12 (1) If a trailer, semitrailer, or pole trailer is
13 dedicated to a motor vehicle that qualifies as rolling
14 stock moving in interstate commerce under subsection (c)
15 of this Section, then that trailer, semitrailer, or pole
16 trailer qualifies as rolling stock moving in interstate
17 commerce under this subsection.
18 (2) If a trailer, semitrailer, or pole trailer is
19 dedicated to a group of motor vehicles that all qualify as
20 rolling stock moving in interstate commerce under
21 subsection (c) of this Section, then that trailer,
22 semitrailer, or pole trailer qualifies as rolling stock
23 moving in interstate commerce under this subsection.
24 (3) If one or more trailers, semitrailers, or pole
25 trailers are dedicated to a group of motor vehicles and
26 not all of those motor vehicles in that group qualify as
HB2755 Enrolled - 903 - LRB104 08253 BDA 18303 b
1 rolling stock moving in interstate commerce under
2 subsection (c) of this Section, then the percentage of
3 those trailers, semitrailers, or pole trailers that
4 qualifies as rolling stock moving in interstate commerce
5 under this subsection is equal to the percentage of those
6 motor vehicles in that group that qualify as rolling stock
7 moving in interstate commerce under subsection (c) of this
8 Section to which those trailers, semitrailers, or pole
9 trailers are dedicated. However, to determine the
10 qualification for the exemption provided under this item
11 (3), the mathematical application of the qualifying
12 percentage to one or more trailers, semitrailers, or pole
13 trailers under this subpart shall not be allowed as to any
14 fraction of a trailer, semitrailer, or pole trailer.
15 (d-5) For motor vehicles and trailers purchased on or
16 after July 1, 2017, "use as rolling stock moving in interstate
17 commerce" means that:
18 (1) the motor vehicle or trailer is used to transport
19 persons or property for hire;
20 (2) for purposes of the exemption under paragraph (13)
21 of Section 2-5, the purchaser who is an owner, lessor, or
22 shipper claiming the exemption certifies that the motor
23 vehicle or trailer will be utilized, from the time of
24 purchase and continuing through the statute of limitations
25 for issuing a notice of tax liability under this Act, by an
26 interstate carrier or carriers for hire who hold, and are
HB2755 Enrolled - 904 - LRB104 08253 BDA 18303 b
1 required by Federal Motor Carrier Safety Administration
2 regulations to hold, an active USDOT Number with the
3 Carrier Operation listed as "Interstate" and the Operation
4 Classification listed as "authorized for hire", "exempt
5 for hire", or both "authorized for hire" and "exempt for
6 hire"; except that this paragraph (2) does not apply to a
7 motor vehicle or trailer used at an airport to support the
8 operation of an aircraft moving in interstate commerce, as
9 long as (i) in the case of a motor vehicle, the motor
10 vehicle meets paragraphs (1) and (3) of this subsection
11 (d-5) or (ii) in the case of a trailer, the trailer meets
12 paragraph (1) of this subsection (d-5); and
13 (3) for motor vehicles, the gross vehicle weight
14 rating exceeds 16,000 pounds.
15 The definition of "use as rolling stock moving in
16 interstate commerce" in this subsection (d-5) applies to all
17 property purchased on or after July 1, 2017 for the purpose of
18 being attached to a motor vehicle or trailer as a part thereof,
19 regardless of whether the motor vehicle or trailer was
20 purchased before, on, or after July 1, 2017.
21 If an item ceases to meet requirements (1) through (3)
22 under this subsection (d-5), then the tax is imposed on the
23 selling price, allowing for a reasonable depreciation for the
24 period during which the item qualified for the exemption.
25 For purposes of this subsection (d-5):
26 "Motor vehicle" excludes limousines, but otherwise
HB2755 Enrolled - 905 - LRB104 08253 BDA 18303 b
1 means that term as defined in Section 1-146 of the
2 Illinois Vehicle Code.
3 "Trailer" means (i) "trailer", as defined in Section
4 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
5 defined in Section 1-187 of the Illinois Vehicle Code, and
6 (iii) "pole trailer", as defined in Section 1-161 of the
7 Illinois Vehicle Code.
8 (e) For aircraft and watercraft purchased on or after
9 January 1, 2014, "use as rolling stock moving in interstate
10 commerce" in paragraph (13) of Section 2-5 occurs when, during
11 a 12-month period, the rolling stock has carried persons or
12 property for hire in interstate commerce for greater than 50%
13 of its total trips for that period or for greater than 50% of
14 its total miles for that period. The person claiming the
15 exemption shall make an election at the time of purchase to use
16 either the trips or mileage method and document that election
17 in their books and records. If no election is made under this
18 subsection to use the trips or mileage method, the person
19 shall be deemed to have chosen the mileage method. For
20 aircraft, flight hours may be used in lieu of recording miles
21 in determining whether the aircraft meets the mileage test in
22 this subsection. For watercraft, nautical miles or trip hours
23 may be used in lieu of recording miles in determining whether
24 the watercraft meets the mileage test in this subsection.
25 Notwithstanding any other provision of law to the
26 contrary, property purchased on or after January 1, 2014 for
HB2755 Enrolled - 906 - LRB104 08253 BDA 18303 b
1 the purpose of being attached to aircraft or watercraft as a
2 part thereof qualifies as rolling stock moving in interstate
3 commerce only if the aircraft or watercraft to which it will be
4 attached qualifies as rolling stock moving in interstate
5 commerce under the test set forth in this subsection (e),
6 regardless of when the aircraft or watercraft was purchased.
7 Persons who purchased aircraft or watercraft prior to January
8 1, 2014 shall make an election to use either the trips or
9 mileage method and document that election in their books and
10 records for the purpose of determining whether property
11 purchased on or after January 1, 2014 for the purpose of being
12 attached to aircraft or watercraft as a part thereof qualifies
13 as rolling stock moving in interstate commerce under this
14 subsection (e).
15 (f) The election to use either the trips or mileage method
16 made under the provisions of subsections (c), (d), or (e) of
17 this Section will remain in effect for the duration of the
18 purchaser's ownership of that item.
19 (Source: P.A. 100-321, eff. 8-24-17.)
20 (35 ILCS 120/3)
21 Sec. 3. Except as provided in this Section, on or before
22 the twentieth day of each calendar month, every person engaged
23 in the business of selling, which, on and after January 1,
24 2025, includes leasing, tangible personal property at retail
25 in this State during the preceding calendar month shall file a
HB2755 Enrolled - 907 - LRB104 08253 BDA 18303 b
1 return with the Department, stating:
2 1. The name of the seller;
3 2. His residence address and the address of his
4 principal place of business and the address of the
5 principal place of business (if that is a different
6 address) from which he engages in the business of selling
7 tangible personal property at retail in this State;
8 3. Total amount of receipts received by him during the
9 preceding calendar month or quarter, as the case may be,
10 from sales of tangible personal property, and from
11 services furnished, by him during such preceding calendar
12 month or quarter;
13 4. Total amount received by him during the preceding
14 calendar month or quarter on charge and time sales of
15 tangible personal property, and from services furnished,
16 by him prior to the month or quarter for which the return
17 is filed;
18 5. Deductions allowed by law;
19 6. Gross receipts which were received by him during
20 the preceding calendar month or quarter and upon the basis
21 of which the tax is imposed, including gross receipts on
22 food for human consumption that is to be consumed off the
23 premises where it is sold (other than alcoholic beverages,
24 food consisting of or infused with adult use cannabis,
25 soft drinks, and food that has been prepared for immediate
26 consumption) which were received during the preceding
HB2755 Enrolled - 908 - LRB104 08253 BDA 18303 b
1 calendar month or quarter and upon which tax would have
2 been due but for the 0% rate imposed under Public Act
3 102-700;
4 7. The amount of credit provided in Section 2d of this
5 Act;
6 8. The amount of tax due, including the amount of tax
7 that would have been due on food for human consumption
8 that is to be consumed off the premises where it is sold
9 (other than alcoholic beverages, food consisting of or
10 infused with adult use cannabis, soft drinks, and food
11 that has been prepared for immediate consumption) but for
12 the 0% rate imposed under Public Act 102-700;
13 9. The signature of the taxpayer; and
14 10. Such other reasonable information as the
15 Department may require.
16 In the case of leases, except as otherwise provided in
17 this Act, the lessor must remit for each tax return period only
18 the tax applicable to that part of the selling price actually
19 received during such tax return period.
20 On and after January 1, 2018, except for returns required
21 to be filed prior to January 1, 2023 for motor vehicles,
22 watercraft, aircraft, and trailers that are required to be
23 registered with an agency of this State, with respect to
24 retailers whose annual gross receipts average $20,000 or more,
25 all returns required to be filed pursuant to this Act shall be
26 filed electronically. On and after January 1, 2023, with
HB2755 Enrolled - 909 - LRB104 08253 BDA 18303 b
1 respect to retailers whose annual gross receipts average
2 $20,000 or more, all returns required to be filed pursuant to
3 this Act, including, but not limited to, returns for motor
4 vehicles, watercraft, aircraft, and trailers that are required
5 to be registered with an agency of this State, shall be filed
6 electronically. Retailers who demonstrate that they do not
7 have access to the Internet or demonstrate hardship in filing
8 electronically may petition the Department to waive the
9 electronic filing requirement.
10 If a taxpayer fails to sign a return within 30 days after
11 the proper notice and demand for signature by the Department,
12 the return shall be considered valid and any amount shown to be
13 due on the return shall be deemed assessed.
14 Each return shall be accompanied by the statement of
15 prepaid tax issued pursuant to Section 2e for which credit is
16 claimed.
17 Prior to October 1, 2003 and on and after September 1,
18 2004, a retailer may accept a Manufacturer's Purchase Credit
19 certification from a purchaser in satisfaction of Use Tax as
20 provided in Section 3-85 of the Use Tax Act if the purchaser
21 provides the appropriate documentation as required by Section
22 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
23 certification, accepted by a retailer prior to October 1, 2003
24 and on and after September 1, 2004 as provided in Section 3-85
25 of the Use Tax Act, may be used by that retailer to satisfy
26 Retailers' Occupation Tax liability in the amount claimed in
HB2755 Enrolled - 910 - LRB104 08253 BDA 18303 b
1 the certification, not to exceed 6.25% of the receipts subject
2 to tax from a qualifying purchase. A Manufacturer's Purchase
3 Credit reported on any original or amended return filed under
4 this Act after October 20, 2003 for reporting periods prior to
5 September 1, 2004 shall be disallowed. Manufacturer's Purchase
6 Credit reported on annual returns due on or after January 1,
7 2005 will be disallowed for periods prior to September 1,
8 2004. No Manufacturer's Purchase Credit may be used after
9 September 30, 2003 through August 31, 2004 to satisfy any tax
10 liability imposed under this Act, including any audit
11 liability.
12 Beginning on July 1, 2023 and through December 31, 2032, a
13 retailer may accept a Sustainable Aviation Fuel Purchase
14 Credit certification from an air common carrier-purchaser in
15 satisfaction of Use Tax on aviation fuel as provided in
16 Section 3-87 of the Use Tax Act if the purchaser provides the
17 appropriate documentation as required by Section 3-87 of the
18 Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
19 certification accepted by a retailer in accordance with this
20 paragraph may be used by that retailer to satisfy Retailers'
21 Occupation Tax liability (but not in satisfaction of penalty
22 or interest) in the amount claimed in the certification, not
23 to exceed 6.25% of the receipts subject to tax from a sale of
24 aviation fuel. In addition, for a sale of aviation fuel to
25 qualify to earn the Sustainable Aviation Fuel Purchase Credit,
26 retailers must retain in their books and records a
HB2755 Enrolled - 911 - LRB104 08253 BDA 18303 b
1 certification from the producer of the aviation fuel that the
2 aviation fuel sold by the retailer and for which a sustainable
3 aviation fuel purchase credit was earned meets the definition
4 of sustainable aviation fuel under Section 3-87 of the Use Tax
5 Act. The documentation must include detail sufficient for the
6 Department to determine the number of gallons of sustainable
7 aviation fuel sold.
8 The Department may require returns to be filed on a
9 quarterly basis. If so required, a return for each calendar
10 quarter shall be filed on or before the twentieth day of the
11 calendar month following the end of such calendar quarter. The
12 taxpayer shall also file a return with the Department for each
13 of the first 2 months of each calendar quarter, on or before
14 the twentieth day of the following calendar month, stating:
15 1. The name of the seller;
16 2. The address of the principal place of business from
17 which he engages in the business of selling tangible
18 personal property at retail in this State;
19 3. The total amount of taxable receipts received by
20 him during the preceding calendar month from sales of
21 tangible personal property by him during such preceding
22 calendar month, including receipts from charge and time
23 sales, but less all deductions allowed by law;
24 4. The amount of credit provided in Section 2d of this
25 Act;
26 5. The amount of tax due; and
HB2755 Enrolled - 912 - LRB104 08253 BDA 18303 b
1 6. Such other reasonable information as the Department
2 may require.
3 Every person engaged in the business of selling aviation
4 fuel at retail in this State during the preceding calendar
5 month shall, instead of reporting and paying tax as otherwise
6 required by this Section, report and pay such tax on a separate
7 aviation fuel tax return. The requirements related to the
8 return shall be as otherwise provided in this Section.
9 Notwithstanding any other provisions of this Act to the
10 contrary, retailers selling aviation fuel shall file all
11 aviation fuel tax returns and shall make all aviation fuel tax
12 payments by electronic means in the manner and form required
13 by the Department. For purposes of this Section, "aviation
14 fuel" means jet fuel and aviation gasoline.
15 Beginning on October 1, 2003, any person who is not a
16 licensed distributor, importing distributor, or manufacturer,
17 as defined in the Liquor Control Act of 1934, but is engaged in
18 the business of selling, at retail, alcoholic liquor shall
19 file a statement with the Department of Revenue, in a format
20 and at a time prescribed by the Department, showing the total
21 amount paid for alcoholic liquor purchased during the
22 preceding month and such other information as is reasonably
23 required by the Department. The Department may adopt rules to
24 require that this statement be filed in an electronic or
25 telephonic format. Such rules may provide for exceptions from
26 the filing requirements of this paragraph. For the purposes of
HB2755 Enrolled - 913 - LRB104 08253 BDA 18303 b
1 this paragraph, the term "alcoholic liquor" shall have the
2 meaning prescribed in the Liquor Control Act of 1934.
3 Beginning on October 1, 2003, every distributor, importing
4 distributor, and manufacturer of alcoholic liquor as defined
5 in the Liquor Control Act of 1934, shall file a statement with
6 the Department of Revenue, no later than the 10th day of the
7 month for the preceding month during which transactions
8 occurred, by electronic means, showing the total amount of
9 gross receipts from the sale of alcoholic liquor sold or
10 distributed during the preceding month to purchasers;
11 identifying the purchaser to whom it was sold or distributed;
12 the purchaser's tax registration number; and such other
13 information reasonably required by the Department. A
14 distributor, importing distributor, or manufacturer of
15 alcoholic liquor must personally deliver, mail, or provide by
16 electronic means to each retailer listed on the monthly
17 statement a report containing a cumulative total of that
18 distributor's, importing distributor's, or manufacturer's
19 total sales of alcoholic liquor to that retailer no later than
20 the 10th day of the month for the preceding month during which
21 the transaction occurred. The distributor, importing
22 distributor, or manufacturer shall notify the retailer as to
23 the method by which the distributor, importing distributor, or
24 manufacturer will provide the sales information. If the
25 retailer is unable to receive the sales information by
26 electronic means, the distributor, importing distributor, or
HB2755 Enrolled - 914 - LRB104 08253 BDA 18303 b
1 manufacturer shall furnish the sales information by personal
2 delivery or by mail. For purposes of this paragraph, the term
3 "electronic means" includes, but is not limited to, the use of
4 a secure Internet website, e-mail, or facsimile.
5 If a total amount of less than $1 is payable, refundable or
6 creditable, such amount shall be disregarded if it is less
7 than 50 cents and shall be increased to $1 if it is 50 cents or
8 more.
9 Notwithstanding any other provision of this Act to the
10 contrary, retailers subject to tax on cannabis shall file all
11 cannabis tax returns and shall make all cannabis tax payments
12 by electronic means in the manner and form required by the
13 Department.
14 Beginning October 1, 1993, a taxpayer who has an average
15 monthly tax liability of $150,000 or more shall make all
16 payments required by rules of the Department by electronic
17 funds transfer. Beginning October 1, 1994, a taxpayer who has
18 an average monthly tax liability of $100,000 or more shall
19 make all payments required by rules of the Department by
20 electronic funds transfer. Beginning October 1, 1995, a
21 taxpayer who has an average monthly tax liability of $50,000
22 or more shall make all payments required by rules of the
23 Department by electronic funds transfer. Beginning October 1,
24 2000, a taxpayer who has an annual tax liability of $200,000 or
25 more shall make all payments required by rules of the
26 Department by electronic funds transfer. The term "annual tax
HB2755 Enrolled - 915 - LRB104 08253 BDA 18303 b
1 liability" shall be the sum of the taxpayer's liabilities
2 under this Act, and under all other State and local occupation
3 and use tax laws administered by the Department, for the
4 immediately preceding calendar year. The term "average monthly
5 tax liability" shall be the sum of the taxpayer's liabilities
6 under this Act, and under all other State and local occupation
7 and use tax laws administered by the Department, for the
8 immediately preceding calendar year divided by 12. Beginning
9 on October 1, 2002, a taxpayer who has a tax liability in the
10 amount set forth in subsection (b) of Section 2505-210 of the
11 Department of Revenue Law shall make all payments required by
12 rules of the Department by electronic funds transfer.
13 Before August 1 of each year beginning in 1993, the
14 Department shall notify all taxpayers required to make
15 payments by electronic funds transfer. All taxpayers required
16 to make payments by electronic funds transfer shall make those
17 payments for a minimum of one year beginning on October 1.
18 Any taxpayer not required to make payments by electronic
19 funds transfer may make payments by electronic funds transfer
20 with the permission of the Department.
21 All taxpayers required to make payment by electronic funds
22 transfer and any taxpayers authorized to voluntarily make
23 payments by electronic funds transfer shall make those
24 payments in the manner authorized by the Department.
25 The Department shall adopt such rules as are necessary to
26 effectuate a program of electronic funds transfer and the
HB2755 Enrolled - 916 - LRB104 08253 BDA 18303 b
1 requirements of this Section.
2 Any amount which is required to be shown or reported on any
3 return or other document under this Act shall, if such amount
4 is not a whole-dollar amount, be increased to the nearest
5 whole-dollar amount in any case where the fractional part of a
6 dollar is 50 cents or more, and decreased to the nearest
7 whole-dollar amount where the fractional part of a dollar is
8 less than 50 cents.
9 If the retailer is otherwise required to file a monthly
10 return and if the retailer's average monthly tax liability to
11 the Department does not exceed $200, the Department may
12 authorize his returns to be filed on a quarter annual basis,
13 with the return for January, February, and March of a given
14 year being due by April 20 of such year; with the return for
15 April, May, and June of a given year being due by July 20 of
16 such year; with the return for July, August, and September of a
17 given year being due by October 20 of such year, and with the
18 return for October, November, and December of a given year
19 being due by January 20 of the following year.
20 If the retailer is otherwise required to file a monthly or
21 quarterly return and if the retailer's average monthly tax
22 liability with the Department does not exceed $50, the
23 Department may authorize his returns to be filed on an annual
24 basis, with the return for a given year being due by January 20
25 of the following year.
26 Such quarter annual and annual returns, as to form and
HB2755 Enrolled - 917 - LRB104 08253 BDA 18303 b
1 substance, shall be subject to the same requirements as
2 monthly returns.
3 Notwithstanding any other provision in this Act concerning
4 the time within which a retailer may file his return, in the
5 case of any retailer who ceases to engage in a kind of business
6 which makes him responsible for filing returns under this Act,
7 such retailer shall file a final return under this Act with the
8 Department not more than one month after discontinuing such
9 business.
10 Where the same person has more than one business
11 registered with the Department under separate registrations
12 under this Act, such person may not file each return that is
13 due as a single return covering all such registered
14 businesses, but shall file separate returns for each such
15 registered business.
16 In addition, with respect to motor vehicles, watercraft,
17 aircraft, and trailers that are required to be registered with
18 an agency of this State, except as otherwise provided in this
19 Section, every retailer selling this kind of tangible personal
20 property shall file, with the Department, upon a form to be
21 prescribed and supplied by the Department, a separate return
22 for each such item of tangible personal property which the
23 retailer sells, except that if, in the same transaction, (i) a
24 retailer of aircraft, watercraft, motor vehicles, or trailers
25 transfers more than one aircraft, watercraft, motor vehicle,
26 or trailer to another aircraft, watercraft, motor vehicle
HB2755 Enrolled - 918 - LRB104 08253 BDA 18303 b
1 retailer, or trailer retailer for the purpose of resale or
2 (ii) a retailer of aircraft, watercraft, motor vehicles, or
3 trailers transfers more than one aircraft, watercraft, motor
4 vehicle, or trailer to a purchaser for use as a qualifying
5 rolling stock as provided in Section 2-5 of this Act, then that
6 seller may report the transfer of all aircraft, watercraft,
7 motor vehicles, or trailers involved in that transaction to
8 the Department on the same uniform invoice-transaction
9 reporting return form. For purposes of this Section,
10 "watercraft" means a Class 2, Class 3, or Class 4 watercraft as
11 defined in Section 3-2 of the Boat Registration and Safety
12 Act, a personal watercraft, or any boat equipped with an
13 inboard motor.
14 In addition, with respect to motor vehicles, watercraft,
15 aircraft, and trailers that are required to be registered with
16 an agency of this State, every person who is engaged in the
17 business of leasing or renting such items and who, in
18 connection with such business, sells any such item to a
19 retailer for the purpose of resale is, notwithstanding any
20 other provision of this Section to the contrary, authorized to
21 meet the return-filing requirement of this Act by reporting
22 the transfer of all the aircraft, watercraft, motor vehicles,
23 or trailers transferred for resale during a month to the
24 Department on the same uniform invoice-transaction reporting
25 return form on or before the 20th of the month following the
26 month in which the transfer takes place. Notwithstanding any
HB2755 Enrolled - 919 - LRB104 08253 BDA 18303 b
1 other provision of this Act to the contrary, all returns filed
2 under this paragraph must be filed by electronic means in the
3 manner and form as required by the Department.
4 Any retailer who sells only motor vehicles, watercraft,
5 aircraft, or trailers that are required to be registered with
6 an agency of this State, so that all retailers' occupation tax
7 liability is required to be reported, and is reported, on such
8 transaction reporting returns and who is not otherwise
9 required to file monthly or quarterly returns, need not file
10 monthly or quarterly returns. However, those retailers shall
11 be required to file returns on an annual basis.
12 The transaction reporting return, in the case of motor
13 vehicles or trailers that are required to be registered with
14 an agency of this State, shall be the same document as the
15 Uniform Invoice referred to in Section 5-402 of the Illinois
16 Vehicle Code and must show the name and address of the seller;
17 the name and address of the purchaser; the amount of the
18 selling price including the amount allowed by the retailer for
19 traded-in property, if any; the amount allowed by the retailer
20 for the traded-in tangible personal property, if any, to the
21 extent to which Section 1 of this Act allows an exemption for
22 the value of traded-in property; the balance payable after
23 deducting such trade-in allowance from the total selling
24 price; the amount of tax due from the retailer with respect to
25 such transaction; the amount of tax collected from the
26 purchaser by the retailer on such transaction (or satisfactory
HB2755 Enrolled - 920 - LRB104 08253 BDA 18303 b
1 evidence that such tax is not due in that particular instance,
2 if that is claimed to be the fact); the place and date of the
3 sale; a sufficient identification of the property sold; such
4 other information as is required in Section 5-402 of the
5 Illinois Vehicle Code, and such other information as the
6 Department may reasonably require.
7 The transaction reporting return in the case of watercraft
8 or aircraft must show the name and address of the seller; the
9 name and address of the purchaser; the amount of the selling
10 price including the amount allowed by the retailer for
11 traded-in property, if any; the amount allowed by the retailer
12 for the traded-in tangible personal property, if any, to the
13 extent to which Section 1 of this Act allows an exemption for
14 the value of traded-in property; the balance payable after
15 deducting such trade-in allowance from the total selling
16 price; the amount of tax due from the retailer with respect to
17 such transaction; the amount of tax collected from the
18 purchaser by the retailer on such transaction (or satisfactory
19 evidence that such tax is not due in that particular instance,
20 if that is claimed to be the fact); the place and date of the
21 sale, a sufficient identification of the property sold, and
22 such other information as the Department may reasonably
23 require.
24 Such transaction reporting return shall be filed not later
25 than 20 days after the day of delivery of the item that is
26 being sold, but may be filed by the retailer at any time sooner
HB2755 Enrolled - 921 - LRB104 08253 BDA 18303 b
1 than that if he chooses to do so. The transaction reporting
2 return and tax remittance or proof of exemption from the
3 Illinois use tax may be transmitted to the Department by way of
4 the State agency with which, or State officer with whom the
5 tangible personal property must be titled or registered (if
6 titling or registration is required) if the Department and
7 such agency or State officer determine that this procedure
8 will expedite the processing of applications for title or
9 registration.
10 With each such transaction reporting return, the retailer
11 shall remit the proper amount of tax due (or shall submit
12 satisfactory evidence that the sale is not taxable if that is
13 the case), to the Department or its agents, whereupon the
14 Department shall issue, in the purchaser's name, a use tax
15 receipt (or a certificate of exemption if the Department is
16 satisfied that the particular sale is tax exempt) which such
17 purchaser may submit to the agency with which, or State
18 officer with whom, he must title or register the tangible
19 personal property that is involved (if titling or registration
20 is required) in support of such purchaser's application for an
21 Illinois certificate or other evidence of title or
22 registration to such tangible personal property.
23 No retailer's failure or refusal to remit tax under this
24 Act precludes a user, who has paid the proper tax to the
25 retailer, from obtaining his certificate of title or other
26 evidence of title or registration (if titling or registration
HB2755 Enrolled - 922 - LRB104 08253 BDA 18303 b
1 is required) upon satisfying the Department that such user has
2 paid the proper tax (if tax is due) to the retailer. The
3 Department shall adopt appropriate rules to carry out the
4 mandate of this paragraph.
5 If the user who would otherwise pay tax to the retailer
6 wants the transaction reporting return filed and the payment
7 of the tax or proof of exemption made to the Department before
8 the retailer is willing to take these actions and such user has
9 not paid the tax to the retailer, such user may certify to the
10 fact of such delay by the retailer and may (upon the Department
11 being satisfied of the truth of such certification) transmit
12 the information required by the transaction reporting return
13 and the remittance for tax or proof of exemption directly to
14 the Department and obtain his tax receipt or exemption
15 determination, in which event the transaction reporting return
16 and tax remittance (if a tax payment was required) shall be
17 credited by the Department to the proper retailer's account
18 with the Department, but without the vendor's discount
19 provided for in this Section being allowed. When the user pays
20 the tax directly to the Department, he shall pay the tax in the
21 same amount and in the same form in which it would be remitted
22 if the tax had been remitted to the Department by the retailer.
23 On and after January 1, 2025, with respect to the lease of
24 trailers, other than semitrailers as defined in Section 1-187
25 of the Illinois Vehicle Code, that are required to be
26 registered with an agency of this State and that are subject to
HB2755 Enrolled - 923 - LRB104 08253 BDA 18303 b
1 the tax on lease receipts under this Act, notwithstanding any
2 other provision of this Act to the contrary, for the purpose of
3 reporting and paying tax under this Act on those lease
4 receipts, lessors shall file returns in addition to and
5 separate from the transaction reporting return. Lessors shall
6 file those lease returns and make payment to the Department by
7 electronic means on or before the 20th day of each month
8 following the month, quarter, or year, as applicable, in which
9 lease receipts were received. All lease receipts received by
10 the lessor from the lease of those trailers during the same
11 reporting period shall be reported and tax shall be paid on a
12 single return form to be prescribed by the Department.
13 Refunds made by the seller during the preceding return
14 period to purchasers, on account of tangible personal property
15 returned to the seller, shall be allowed as a deduction under
16 subdivision 5 of his monthly or quarterly return, as the case
17 may be, in case the seller had theretofore included the
18 receipts from the sale of such tangible personal property in a
19 return filed by him and had paid the tax imposed by this Act
20 with respect to such receipts.
21 Where the seller is a corporation, the return filed on
22 behalf of such corporation shall be signed by the president,
23 vice-president, secretary, or treasurer or by the properly
24 accredited agent of such corporation.
25 Where the seller is a limited liability company, the
26 return filed on behalf of the limited liability company shall
HB2755 Enrolled - 924 - LRB104 08253 BDA 18303 b
1 be signed by a manager, member, or properly accredited agent
2 of the limited liability company.
3 Except as provided in this Section, the retailer filing
4 the return under this Section shall, at the time of filing such
5 return, pay to the Department the amount of tax imposed by this
6 Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
7 on and after January 1, 1990, or $5 per calendar year,
8 whichever is greater, which is allowed to reimburse the
9 retailer for the expenses incurred in keeping records,
10 preparing and filing returns, remitting the tax and supplying
11 data to the Department on request. On and after January 1,
12 2021, a certified service provider, as defined in the Leveling
13 the Playing Field for Illinois Retail Act, filing the return
14 under this Section on behalf of a remote retailer shall, at the
15 time of such return, pay to the Department the amount of tax
16 imposed by this Act less a discount of 1.75%. A remote retailer
17 using a certified service provider to file a return on its
18 behalf, as provided in the Leveling the Playing Field for
19 Illinois Retail Act, is not eligible for the discount.
20 Beginning with returns due on or after January 1, 2025, the
21 vendor's discount allowed in this Section, the Service
22 Occupation Tax Act, the Use Tax Act, and the Service Use Tax
23 Act, including any local tax administered by the Department
24 and reported on the same return, shall not exceed $1,000 per
25 month in the aggregate for returns other than transaction
26 returns filed during the month. When determining the discount
HB2755 Enrolled - 925 - LRB104 08253 BDA 18303 b
1 allowed under this Section, retailers shall include the amount
2 of tax that would have been due at the 1% rate but for the 0%
3 rate imposed under Public Act 102-700. When determining the
4 discount allowed under this Section, retailers shall include
5 the amount of tax that would have been due at the 6.25% rate
6 but for the 1.25% rate imposed on sales tax holiday items under
7 Public Act 102-700. The discount under this Section is not
8 allowed for the 1.25% portion of taxes paid on aviation fuel
9 that is subject to the revenue use requirements of 49 U.S.C.
10 47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to
11 Section 2d of this Act shall be included in the amount on which
12 such discount is computed. In the case of retailers who report
13 and pay the tax on a transaction by transaction basis, as
14 provided in this Section, such discount shall be taken with
15 each such tax remittance instead of when such retailer files
16 his periodic return, but, beginning with returns due on or
17 after January 1, 2025, the vendor's discount allowed under
18 this Section and the Use Tax Act, including any local tax
19 administered by the Department and reported on the same
20 transaction return, shall not exceed $1,000 per month for all
21 transaction returns filed during the month. The discount
22 allowed under this Section is allowed only for returns that
23 are filed in the manner required by this Act. The Department
24 may disallow the discount for retailers whose certificate of
25 registration is revoked at the time the return is filed, but
26 only if the Department's decision to revoke the certificate of
HB2755 Enrolled - 926 - LRB104 08253 BDA 18303 b
1 registration has become final.
2 Before October 1, 2000, if the taxpayer's average monthly
3 tax liability to the Department under this Act, the Use Tax
4 Act, the Service Occupation Tax Act, and the Service Use Tax
5 Act, excluding any liability for prepaid sales tax to be
6 remitted in accordance with Section 2d of this Act, was
7 $10,000 or more during the preceding 4 complete calendar
8 quarters, he shall file a return with the Department each
9 month by the 20th day of the month next following the month
10 during which such tax liability is incurred and shall make
11 payments to the Department on or before the 7th, 15th, 22nd and
12 last day of the month during which such liability is incurred.
13 On and after October 1, 2000, if the taxpayer's average
14 monthly tax liability to the Department under this Act, the
15 Use Tax Act, the Service Occupation Tax Act, and the Service
16 Use Tax Act, excluding any liability for prepaid sales tax to
17 be remitted in accordance with Section 2d of this Act, was
18 $20,000 or more during the preceding 4 complete calendar
19 quarters, he shall file a return with the Department each
20 month by the 20th day of the month next following the month
21 during which such tax liability is incurred and shall make
22 payment to the Department on or before the 7th, 15th, 22nd and
23 last day of the month during which such liability is incurred.
24 If the month during which such tax liability is incurred began
25 prior to January 1, 1985, each payment shall be in an amount
26 equal to 1/4 of the taxpayer's actual liability for the month
HB2755 Enrolled - 927 - LRB104 08253 BDA 18303 b
1 or an amount set by the Department not to exceed 1/4 of the
2 average monthly liability of the taxpayer to the Department
3 for the preceding 4 complete calendar quarters (excluding the
4 month of highest liability and the month of lowest liability
5 in such 4 quarter period). If the month during which such tax
6 liability is incurred begins on or after January 1, 1985 and
7 prior to January 1, 1987, each payment shall be in an amount
8 equal to 22.5% of the taxpayer's actual liability for the
9 month or 27.5% of the taxpayer's liability for the same
10 calendar month of the preceding year. If the month during
11 which such tax liability is incurred begins on or after
12 January 1, 1987 and prior to January 1, 1988, each payment
13 shall be in an amount equal to 22.5% of the taxpayer's actual
14 liability for the month or 26.25% of the taxpayer's liability
15 for the same calendar month of the preceding year. If the month
16 during which such tax liability is incurred begins on or after
17 January 1, 1988, and prior to January 1, 1989, or begins on or
18 after January 1, 1996, each payment shall be in an amount equal
19 to 22.5% of the taxpayer's actual liability for the month or
20 25% of the taxpayer's liability for the same calendar month of
21 the preceding year. If the month during which such tax
22 liability is incurred begins on or after January 1, 1989, and
23 prior to January 1, 1996, each payment shall be in an amount
24 equal to 22.5% of the taxpayer's actual liability for the
25 month or 25% of the taxpayer's liability for the same calendar
26 month of the preceding year or 100% of the taxpayer's actual
HB2755 Enrolled - 928 - LRB104 08253 BDA 18303 b
1 liability for the quarter monthly reporting period. The amount
2 of such quarter monthly payments shall be credited against the
3 final tax liability of the taxpayer's return for that month.
4 Before October 1, 2000, once applicable, the requirement of
5 the making of quarter monthly payments to the Department by
6 taxpayers having an average monthly tax liability of $10,000
7 or more as determined in the manner provided above shall
8 continue until such taxpayer's average monthly liability to
9 the Department during the preceding 4 complete calendar
10 quarters (excluding the month of highest liability and the
11 month of lowest liability) is less than $9,000, or until such
12 taxpayer's average monthly liability to the Department as
13 computed for each calendar quarter of the 4 preceding complete
14 calendar quarter period is less than $10,000. However, if a
15 taxpayer can show the Department that a substantial change in
16 the taxpayer's business has occurred which causes the taxpayer
17 to anticipate that his average monthly tax liability for the
18 reasonably foreseeable future will fall below the $10,000
19 threshold stated above, then such taxpayer may petition the
20 Department for a change in such taxpayer's reporting status.
21 On and after October 1, 2000, once applicable, the requirement
22 of the making of quarter monthly payments to the Department by
23 taxpayers having an average monthly tax liability of $20,000
24 or more as determined in the manner provided above shall
25 continue until such taxpayer's average monthly liability to
26 the Department during the preceding 4 complete calendar
HB2755 Enrolled - 929 - LRB104 08253 BDA 18303 b
1 quarters (excluding the month of highest liability and the
2 month of lowest liability) is less than $19,000 or until such
3 taxpayer's average monthly liability to the Department as
4 computed for each calendar quarter of the 4 preceding complete
5 calendar quarter period is less than $20,000. However, if a
6 taxpayer can show the Department that a substantial change in
7 the taxpayer's business has occurred which causes the taxpayer
8 to anticipate that his average monthly tax liability for the
9 reasonably foreseeable future will fall below the $20,000
10 threshold stated above, then such taxpayer may petition the
11 Department for a change in such taxpayer's reporting status.
12 The Department shall change such taxpayer's reporting status
13 unless it finds that such change is seasonal in nature and not
14 likely to be long term. Quarter monthly payment status shall
15 be determined under this paragraph as if the rate reduction to
16 0% in Public Act 102-700 on food for human consumption that is
17 to be consumed off the premises where it is sold (other than
18 alcoholic beverages, food consisting of or infused with adult
19 use cannabis, soft drinks, and food that has been prepared for
20 immediate consumption) had not occurred. For quarter monthly
21 payments due under this paragraph on or after July 1, 2023 and
22 through June 30, 2024, "25% of the taxpayer's liability for
23 the same calendar month of the preceding year" shall be
24 determined as if the rate reduction to 0% in Public Act 102-700
25 had not occurred. Quarter monthly payment status shall be
26 determined under this paragraph as if the rate reduction to
HB2755 Enrolled - 930 - LRB104 08253 BDA 18303 b
1 1.25% in Public Act 102-700 on sales tax holiday items had not
2 occurred. For quarter monthly payments due on or after July 1,
3 2023 and through June 30, 2024, "25% of the taxpayer's
4 liability for the same calendar month of the preceding year"
5 shall be determined as if the rate reduction to 1.25% in Public
6 Act 102-700 on sales tax holiday items had not occurred. If any
7 such quarter monthly payment is not paid at the time or in the
8 amount required by this Section, then the taxpayer shall be
9 liable for penalties and interest on the difference between
10 the minimum amount due as a payment and the amount of such
11 quarter monthly payment actually and timely paid, except
12 insofar as the taxpayer has previously made payments for that
13 month to the Department in excess of the minimum payments
14 previously due as provided in this Section. The Department
15 shall make reasonable rules and regulations to govern the
16 quarter monthly payment amount and quarter monthly payment
17 dates for taxpayers who file on other than a calendar monthly
18 basis.
19 The provisions of this paragraph apply before October 1,
20 2001. Without regard to whether a taxpayer is required to make
21 quarter monthly payments as specified above, any taxpayer who
22 is required by Section 2d of this Act to collect and remit
23 prepaid taxes and has collected prepaid taxes which average in
24 excess of $25,000 per month during the preceding 2 complete
25 calendar quarters, shall file a return with the Department as
26 required by Section 2f and shall make payments to the
HB2755 Enrolled - 931 - LRB104 08253 BDA 18303 b
1 Department on or before the 7th, 15th, 22nd and last day of the
2 month during which such liability is incurred. If the month
3 during which such tax liability is incurred began prior to
4 September 1, 1985 (the effective date of Public Act 84-221),
5 each payment shall be in an amount not less than 22.5% of the
6 taxpayer's actual liability under Section 2d. If the month
7 during which such tax liability is incurred begins on or after
8 January 1, 1986, each payment shall be in an amount equal to
9 22.5% of the taxpayer's actual liability for the month or
10 27.5% of the taxpayer's liability for the same calendar month
11 of the preceding calendar year. If the month during which such
12 tax liability is incurred begins on or after January 1, 1987,
13 each payment shall be in an amount equal to 22.5% of the
14 taxpayer's actual liability for the month or 26.25% of the
15 taxpayer's liability for the same calendar month of the
16 preceding year. The amount of such quarter monthly payments
17 shall be credited against the final tax liability of the
18 taxpayer's return for that month filed under this Section or
19 Section 2f, as the case may be. Once applicable, the
20 requirement of the making of quarter monthly payments to the
21 Department pursuant to this paragraph shall continue until
22 such taxpayer's average monthly prepaid tax collections during
23 the preceding 2 complete calendar quarters is $25,000 or less.
24 If any such quarter monthly payment is not paid at the time or
25 in the amount required, the taxpayer shall be liable for
26 penalties and interest on such difference, except insofar as
HB2755 Enrolled - 932 - LRB104 08253 BDA 18303 b
1 the taxpayer has previously made payments for that month in
2 excess of the minimum payments previously due.
3 The provisions of this paragraph apply on and after
4 October 1, 2001. Without regard to whether a taxpayer is
5 required to make quarter monthly payments as specified above,
6 any taxpayer who is required by Section 2d of this Act to
7 collect and remit prepaid taxes and has collected prepaid
8 taxes that average in excess of $20,000 per month during the
9 preceding 4 complete calendar quarters shall file a return
10 with the Department as required by Section 2f and shall make
11 payments to the Department on or before the 7th, 15th, 22nd,
12 and last day of the month during which the liability is
13 incurred. Each payment shall be in an amount equal to 22.5% of
14 the taxpayer's actual liability for the month or 25% of the
15 taxpayer's liability for the same calendar month of the
16 preceding year. The amount of the quarter monthly payments
17 shall be credited against the final tax liability of the
18 taxpayer's return for that month filed under this Section or
19 Section 2f, as the case may be. Once applicable, the
20 requirement of the making of quarter monthly payments to the
21 Department pursuant to this paragraph shall continue until the
22 taxpayer's average monthly prepaid tax collections during the
23 preceding 4 complete calendar quarters (excluding the month of
24 highest liability and the month of lowest liability) is less
25 than $19,000 or until such taxpayer's average monthly
26 liability to the Department as computed for each calendar
HB2755 Enrolled - 933 - LRB104 08253 BDA 18303 b
1 quarter of the 4 preceding complete calendar quarters is less
2 than $20,000. If any such quarter monthly payment is not paid
3 at the time or in the amount required, the taxpayer shall be
4 liable for penalties and interest on such difference, except
5 insofar as the taxpayer has previously made payments for that
6 month in excess of the minimum payments previously due.
7 If any payment provided for in this Section exceeds the
8 taxpayer's liabilities under this Act, the Use Tax Act, the
9 Service Occupation Tax Act, and the Service Use Tax Act, as
10 shown on an original monthly return, the Department shall, if
11 requested by the taxpayer, issue to the taxpayer a credit
12 memorandum no later than 30 days after the date of payment. The
13 credit evidenced by such credit memorandum may be assigned by
14 the taxpayer to a similar taxpayer under this Act, the Use Tax
15 Act, the Service Occupation Tax Act, or the Service Use Tax
16 Act, in accordance with reasonable rules and regulations to be
17 prescribed by the Department. If no such request is made, the
18 taxpayer may credit such excess payment against tax liability
19 subsequently to be remitted to the Department under this Act,
20 the Use Tax Act, the Service Occupation Tax Act, or the Service
21 Use Tax Act, in accordance with reasonable rules and
22 regulations prescribed by the Department. If the Department
23 subsequently determined that all or any part of the credit
24 taken was not actually due to the taxpayer, the taxpayer's
25 vendor's discount shall be reduced, if necessary, to reflect
26 the difference between the credit taken and that actually due,
HB2755 Enrolled - 934 - LRB104 08253 BDA 18303 b
1 and that taxpayer shall be liable for penalties and interest
2 on such difference.
3 If a retailer of motor fuel is entitled to a credit under
4 Section 2d of this Act which exceeds the taxpayer's liability
5 to the Department under this Act for the month for which the
6 taxpayer is filing a return, the Department shall issue the
7 taxpayer a credit memorandum for the excess.
8 Beginning January 1, 1990, each month the Department shall
9 pay into the Local Government Tax Fund, a special fund in the
10 State treasury which is hereby created, the net revenue
11 realized for the preceding month from the 1% tax imposed under
12 this Act.
13 Beginning January 1, 1990, each month the Department shall
14 pay into the County and Mass Transit District Fund, a special
15 fund in the State treasury which is hereby created, 4% of the
16 net revenue realized for the preceding month from the 6.25%
17 general rate other than aviation fuel sold on or after
18 December 1, 2019. This exception for aviation fuel only
19 applies for so long as the revenue use requirements of 49
20 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
21 Beginning August 1, 2000, each month the Department shall
22 pay into the County and Mass Transit District Fund 20% of the
23 net revenue realized for the preceding month from the 1.25%
24 rate on the selling price of motor fuel and gasohol. If, in any
25 month, the tax on sales tax holiday items, as defined in
26 Section 2-8, is imposed at the rate of 1.25%, then the
HB2755 Enrolled - 935 - LRB104 08253 BDA 18303 b
1 Department shall pay 20% of the net revenue realized for that
2 month from the 1.25% rate on the selling price of sales tax
3 holiday items into the County and Mass Transit District Fund.
4 Beginning January 1, 1990, each month the Department shall
5 pay into the Local Government Tax Fund 16% of the net revenue
6 realized for the preceding month from the 6.25% general rate
7 on the selling price of tangible personal property other than
8 aviation fuel sold on or after December 1, 2019. This
9 exception for aviation fuel only applies for so long as the
10 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
11 47133 are binding on the State.
12 For aviation fuel sold on or after December 1, 2019, each
13 month the Department shall pay into the State Aviation Program
14 Fund 20% of the net revenue realized for the preceding month
15 from the 6.25% general rate on the selling price of aviation
16 fuel, less an amount estimated by the Department to be
17 required for refunds of the 20% portion of the tax on aviation
18 fuel under this Act, which amount shall be deposited into the
19 Aviation Fuel Sales Tax Refund Fund. The Department shall only
20 pay moneys into the State Aviation Program Fund and the
21 Aviation Fuel Sales Tax Refund Fund under this Act for so long
22 as the revenue use requirements of 49 U.S.C. 47107(b) and 49
23 U.S.C. 47133 are binding on the State.
24 Beginning August 1, 2000, each month the Department shall
25 pay into the Local Government Tax Fund 80% of the net revenue
26 realized for the preceding month from the 1.25% rate on the
HB2755 Enrolled - 936 - LRB104 08253 BDA 18303 b
1 selling price of motor fuel and gasohol. If, in any month, the
2 tax on sales tax holiday items, as defined in Section 2-8, is
3 imposed at the rate of 1.25%, then the Department shall pay 80%
4 of the net revenue realized for that month from the 1.25% rate
5 on the selling price of sales tax holiday items into the Local
6 Government Tax Fund.
7 Beginning October 1, 2009, each month the Department shall
8 pay into the Capital Projects Fund an amount that is equal to
9 an amount estimated by the Department to represent 80% of the
10 net revenue realized for the preceding month from the sale of
11 candy, grooming and hygiene products, and soft drinks that had
12 been taxed at a rate of 1% prior to September 1, 2009 but that
13 are now taxed at 6.25%.
14 Beginning July 1, 2011, each month the Department shall
15 pay into the Clean Air Act Permit Fund 80% of the net revenue
16 realized for the preceding month from the 6.25% general rate
17 on the selling price of sorbents used in Illinois in the
18 process of sorbent injection as used to comply with the
19 Environmental Protection Act or the federal Clean Air Act, but
20 the total payment into the Clean Air Act Permit Fund under this
21 Act and the Use Tax Act shall not exceed $2,000,000 in any
22 fiscal year.
23 Beginning July 1, 2013, each month the Department shall
24 pay into the Underground Storage Tank Fund from the proceeds
25 collected under this Act, the Use Tax Act, the Service Use Tax
26 Act, and the Service Occupation Tax Act an amount equal to the
HB2755 Enrolled - 937 - LRB104 08253 BDA 18303 b
1 average monthly deficit in the Underground Storage Tank Fund
2 during the prior year, as certified annually by the Illinois
3 Environmental Protection Agency, but the total payment into
4 the Underground Storage Tank Fund under this Act, the Use Tax
5 Act, the Service Use Tax Act, and the Service Occupation Tax
6 Act shall not exceed $18,000,000 in any State fiscal year. As
7 used in this paragraph, the "average monthly deficit" shall be
8 equal to the difference between the average monthly claims for
9 payment by the fund and the average monthly revenues deposited
10 into the fund, excluding payments made pursuant to this
11 paragraph.
12 Beginning July 1, 2015, of the remainder of the moneys
13 received by the Department under the Use Tax Act, the Service
14 Use Tax Act, the Service Occupation Tax Act, and this Act, each
15 month the Department shall deposit $500,000 into the State
16 Crime Laboratory Fund.
17 Of the remainder of the moneys received by the Department
18 pursuant to this Act, (a) 1.75% thereof shall be paid into the
19 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
20 and after July 1, 1989, 3.8% thereof shall be paid into the
21 Build Illinois Fund; provided, however, that if in any fiscal
22 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
23 may be, of the moneys received by the Department and required
24 to be paid into the Build Illinois Fund pursuant to this Act,
25 Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
26 Act, and Section 9 of the Service Occupation Tax Act, such Acts
HB2755 Enrolled - 938 - LRB104 08253 BDA 18303 b
1 being hereinafter called the "Tax Acts" and such aggregate of
2 2.2% or 3.8%, as the case may be, of moneys being hereinafter
3 called the "Tax Act Amount", and (2) the amount transferred to
4 the Build Illinois Fund from the State and Local Sales Tax
5 Reform Fund shall be less than the Annual Specified Amount (as
6 hereinafter defined), an amount equal to the difference shall
7 be immediately paid into the Build Illinois Fund from other
8 moneys received by the Department pursuant to the Tax Acts;
9 the "Annual Specified Amount" means the amounts specified
10 below for fiscal years 1986 through 1993:
11 Fiscal Year Annual Specified Amount
12 1986 $54,800,000
13 1987 $76,650,000
14 1988 $80,480,000
15 1989 $88,510,000
16 1990 $115,330,000
17 1991 $145,470,000
18 1992 $182,730,000
19 1993 $206,520,000;
20 and means the Certified Annual Debt Service Requirement (as
21 defined in Section 13 of the Build Illinois Bond Act) or the
22 Tax Act Amount, whichever is greater, for fiscal year 1994 and
23 each fiscal year thereafter; and further provided, that if on
24 the last business day of any month the sum of (1) the Tax Act
25 Amount required to be deposited into the Build Illinois Bond
26 Account in the Build Illinois Fund during such month and (2)
HB2755 Enrolled - 939 - LRB104 08253 BDA 18303 b
1 the amount transferred to the Build Illinois Fund from the
2 State and Local Sales Tax Reform Fund shall have been less than
3 1/12 of the Annual Specified Amount, an amount equal to the
4 difference shall be immediately paid into the Build Illinois
5 Fund from other moneys received by the Department pursuant to
6 the Tax Acts; and, further provided, that in no event shall the
7 payments required under the preceding proviso result in
8 aggregate payments into the Build Illinois Fund pursuant to
9 this clause (b) for any fiscal year in excess of the greater of
10 (i) the Tax Act Amount or (ii) the Annual Specified Amount for
11 such fiscal year. The amounts payable into the Build Illinois
12 Fund under clause (b) of the first sentence in this paragraph
13 shall be payable only until such time as the aggregate amount
14 on deposit under each trust indenture securing Bonds issued
15 and outstanding pursuant to the Build Illinois Bond Act is
16 sufficient, taking into account any future investment income,
17 to fully provide, in accordance with such indenture, for the
18 defeasance of or the payment of the principal of, premium, if
19 any, and interest on the Bonds secured by such indenture and on
20 any Bonds expected to be issued thereafter and all fees and
21 costs payable with respect thereto, all as certified by the
22 Director of the Bureau of the Budget (now Governor's Office of
23 Management and Budget). If on the last business day of any
24 month in which Bonds are outstanding pursuant to the Build
25 Illinois Bond Act, the aggregate of moneys deposited in the
26 Build Illinois Bond Account in the Build Illinois Fund in such
HB2755 Enrolled - 940 - LRB104 08253 BDA 18303 b
1 month shall be less than the amount required to be transferred
2 in such month from the Build Illinois Bond Account to the Build
3 Illinois Bond Retirement and Interest Fund pursuant to Section
4 13 of the Build Illinois Bond Act, an amount equal to such
5 deficiency shall be immediately paid from other moneys
6 received by the Department pursuant to the Tax Acts to the
7 Build Illinois Fund; provided, however, that any amounts paid
8 to the Build Illinois Fund in any fiscal year pursuant to this
9 sentence shall be deemed to constitute payments pursuant to
10 clause (b) of the first sentence of this paragraph and shall
11 reduce the amount otherwise payable for such fiscal year
12 pursuant to that clause (b). The moneys received by the
13 Department pursuant to this Act and required to be deposited
14 into the Build Illinois Fund are subject to the pledge, claim
15 and charge set forth in Section 12 of the Build Illinois Bond
16 Act.
17 Subject to payment of amounts into the Build Illinois Fund
18 as provided in the preceding paragraph or in any amendment
19 thereto hereafter enacted, the following specified monthly
20 installment of the amount requested in the certificate of the
21 Chairman of the Metropolitan Pier and Exposition Authority
22 provided under Section 8.25f of the State Finance Act, but not
23 in excess of sums designated as "Total Deposit", shall be
24 deposited in the aggregate from collections under Section 9 of
25 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
26 9 of the Service Occupation Tax Act, and Section 3 of the
HB2755 Enrolled - 941 - LRB104 08253 BDA 18303 b
1 Retailers' Occupation Tax Act into the McCormick Place
2 Expansion Project Fund in the specified fiscal years.
3 Fiscal Year Total Deposit
4 1993 $0
5 1994 53,000,000
6 1995 58,000,000
7 1996 61,000,000
8 1997 64,000,000
9 1998 68,000,000
10 1999 71,000,000
11 2000 75,000,000
12 2001 80,000,000
13 2002 93,000,000
14 2003 99,000,000
15 2004 103,000,000
16 2005 108,000,000
17 2006 113,000,000
18 2007 119,000,000
19 2008 126,000,000
20 2009 132,000,000
21 2010 139,000,000
22 2011 146,000,000
23 2012 153,000,000
24 2013 161,000,000
25 2014 170,000,000
26 2015 179,000,000
HB2755 Enrolled - 942 - LRB104 08253 BDA 18303 b
1 2016 189,000,000
199,000,000
2 2017 210,000,000
221,000,000
3 2018 233,000,000
300,000,000
4 2019 300,000,000
300,000,000
5 2020 300,000,000
300,000,000
6 2021 300,000,000
375,000,000
7 2022 375,000,000
375,000,000
8 2023 375,000,000
375,000,000
9 2024 375,000,000
375,000,000
10 2025 375,000,000
375,000,000
11 2026 450,000,000
12 2027
13 2028
14 2029
15 2030
16 2031
17 2032
18 2033
19 2034
20 2035
21 2036
22 and
23 each fiscal year
24 thereafter that bonds
25 are outstanding under
26 Section 13.2 of the
HB2755 Enrolled - 943 - LRB104 08253 BDA 18303 b
1 Metropolitan Pier and
2 Exposition Authority Act,
3 but not after fiscal year 2060.
4 Beginning July 20, 1993 and in each month of each fiscal
5 year thereafter, one-eighth of the amount requested in the
6 certificate of the Chairman of the Metropolitan Pier and
7 Exposition Authority for that fiscal year, less the amount
8 deposited into the McCormick Place Expansion Project Fund by
9 the State Treasurer in the respective month under subsection
10 (g) of Section 13 of the Metropolitan Pier and Exposition
11 Authority Act, plus cumulative deficiencies in the deposits
12 required under this Section for previous months and years,
13 shall be deposited into the McCormick Place Expansion Project
14 Fund, until the full amount requested for the fiscal year, but
15 not in excess of the amount specified above as "Total
16 Deposit", has been deposited.
17 Subject to payment of amounts into the Capital Projects
18 Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
19 and the McCormick Place Expansion Project Fund pursuant to the
20 preceding paragraphs or in any amendments thereto hereafter
21 enacted, for aviation fuel sold on or after December 1, 2019,
22 the Department shall each month deposit into the Aviation Fuel
23 Sales Tax Refund Fund an amount estimated by the Department to
24 be required for refunds of the 80% portion of the tax on
25 aviation fuel under this Act. The Department shall only
26 deposit moneys into the Aviation Fuel Sales Tax Refund Fund
HB2755 Enrolled - 944 - LRB104 08253 BDA 18303 b
1 under this paragraph for so long as the revenue use
2 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
3 binding on the State.
4 Subject to payment of amounts into the Build Illinois Fund
5 and the McCormick Place Expansion Project Fund pursuant to the
6 preceding paragraphs or in any amendments thereto hereafter
7 enacted, beginning July 1, 1993 and ending on September 30,
8 2013, the Department shall each month pay into the Illinois
9 Tax Increment Fund 0.27% of 80% of the net revenue realized for
10 the preceding month from the 6.25% general rate on the selling
11 price of tangible personal property.
12 Subject to payment of amounts into the Build Illinois
13 Fund, the McCormick Place Expansion Project Fund, and the
14 Illinois Tax Increment Fund pursuant to the preceding
15 paragraphs or in any amendments to this Section hereafter
16 enacted, beginning on the first day of the first calendar
17 month to occur on or after August 26, 2014 (the effective date
18 of Public Act 98-1098), each month, from the collections made
19 under Section 9 of the Use Tax Act, Section 9 of the Service
20 Use Tax Act, Section 9 of the Service Occupation Tax Act, and
21 Section 3 of the Retailers' Occupation Tax Act, the Department
22 shall pay into the Tax Compliance and Administration Fund, to
23 be used, subject to appropriation, to fund additional auditors
24 and compliance personnel at the Department of Revenue, an
25 amount equal to 1/12 of 5% of 80% of the cash receipts
26 collected during the preceding fiscal year by the Audit Bureau
HB2755 Enrolled - 945 - LRB104 08253 BDA 18303 b
1 of the Department under the Use Tax Act, the Service Use Tax
2 Act, the Service Occupation Tax Act, the Retailers' Occupation
3 Tax Act, and associated local occupation and use taxes
4 administered by the Department.
5 Subject to payments of amounts into the Build Illinois
6 Fund, the McCormick Place Expansion Project Fund, the Illinois
7 Tax Increment Fund, the Energy Infrastructure Fund, and the
8 Tax Compliance and Administration Fund as provided in this
9 Section, beginning on July 1, 2018 the Department shall pay
10 each month into the Downstate Public Transportation Fund the
11 moneys required to be so paid under Section 2-3 of the
12 Downstate Public Transportation Act.
13 Subject to successful execution and delivery of a
14 public-private agreement between the public agency and private
15 entity and completion of the civic build, beginning on July 1,
16 2023, of the remainder of the moneys received by the
17 Department under the Use Tax Act, the Service Use Tax Act, the
18 Service Occupation Tax Act, and this Act, the Department shall
19 deposit the following specified deposits in the aggregate from
20 collections under the Use Tax Act, the Service Use Tax Act, the
21 Service Occupation Tax Act, and the Retailers' Occupation Tax
22 Act, as required under Section 8.25g of the State Finance Act
23 for distribution consistent with the Public-Private
24 Partnership for Civic and Transit Infrastructure Project Act.
25 The moneys received by the Department pursuant to this Act and
26 required to be deposited into the Civic and Transit
HB2755 Enrolled - 946 - LRB104 08253 BDA 18303 b
1 Infrastructure Fund are subject to the pledge, claim and
2 charge set forth in Section 25-55 of the Public-Private
3 Partnership for Civic and Transit Infrastructure Project Act.
4 As used in this paragraph, "civic build", "private entity",
5 "public-private agreement", and "public agency" have the
6 meanings provided in Section 25-10 of the Public-Private
7 Partnership for Civic and Transit Infrastructure Project Act.
8 Fiscal Year ............................ Total Deposit
9 2024 .................................... $200,000,000
10 2025 .................................... $206,000,000
11 2026 .................................... $212,200,000
12 2027 .................................... $218,500,000
13 2028 .................................... $225,100,000
14 2029 .................................... $288,700,000
15 2030 .................................... $298,900,000
16 2031 .................................... $309,300,000
17 2032 .................................... $320,100,000
18 2033 .................................... $331,200,000
19 2034 .................................... $341,200,000
20 2035 .................................... $351,400,000
21 2036 .................................... $361,900,000
22 2037 .................................... $372,800,000
23 2038 .................................... $384,000,000
24 2039 .................................... $395,500,000
25 2040 .................................... $407,400,000
26 2041 .................................... $419,600,000
HB2755 Enrolled - 947 - LRB104 08253 BDA 18303 b
1 2042 .................................... $432,200,000
2 2043 .................................... $445,100,000
3 Beginning July 1, 2021 and until July 1, 2022, subject to
4 the payment of amounts into the County and Mass Transit
5 District Fund, the Local Government Tax Fund, the Build
6 Illinois Fund, the McCormick Place Expansion Project Fund, the
7 Illinois Tax Increment Fund, and the Tax Compliance and
8 Administration Fund as provided in this Section, the
9 Department shall pay each month into the Road Fund the amount
10 estimated to represent 16% of the net revenue realized from
11 the taxes imposed on motor fuel and gasohol. Beginning July 1,
12 2022 and until July 1, 2023, subject to the payment of amounts
13 into the County and Mass Transit District Fund, the Local
14 Government Tax Fund, the Build Illinois Fund, the McCormick
15 Place Expansion Project Fund, the Illinois Tax Increment Fund,
16 and the Tax Compliance and Administration Fund as provided in
17 this Section, the Department shall pay each month into the
18 Road Fund the amount estimated to represent 32% of the net
19 revenue realized from the taxes imposed on motor fuel and
20 gasohol. Beginning July 1, 2023 and until July 1, 2024,
21 subject to the payment of amounts into the County and Mass
22 Transit District Fund, the Local Government Tax Fund, the
23 Build Illinois Fund, the McCormick Place Expansion Project
24 Fund, the Illinois Tax Increment Fund, and the Tax Compliance
25 and Administration Fund as provided in this Section, the
26 Department shall pay each month into the Road Fund the amount
HB2755 Enrolled - 948 - LRB104 08253 BDA 18303 b
1 estimated to represent 48% of the net revenue realized from
2 the taxes imposed on motor fuel and gasohol. Beginning July 1,
3 2024 and until July 1, 2025, subject to the payment of amounts
4 into the County and Mass Transit District Fund, the Local
5 Government Tax Fund, the Build Illinois Fund, the McCormick
6 Place Expansion Project Fund, the Illinois Tax Increment Fund,
7 and the Tax Compliance and Administration Fund as provided in
8 this Section, the Department shall pay each month into the
9 Road Fund the amount estimated to represent 64% of the net
10 revenue realized from the taxes imposed on motor fuel and
11 gasohol. Beginning on July 1, 2025, subject to the payment of
12 amounts into the County and Mass Transit District Fund, the
13 Local Government Tax Fund, the Build Illinois Fund, the
14 McCormick Place Expansion Project Fund, the Illinois Tax
15 Increment Fund, and the Tax Compliance and Administration Fund
16 as provided in this Section, the Department shall pay each
17 month into the Road Fund the amount estimated to represent 80%
18 of the net revenue realized from the taxes imposed on motor
19 fuel and gasohol. As used in this paragraph "motor fuel" has
20 the meaning given to that term in Section 1.1 of the Motor Fuel
21 Tax Law, and "gasohol" has the meaning given to that term in
22 Section 3-40 of the Use Tax Act.
23 Until July 1, 2025, of Of the remainder of the moneys
24 received by the Department pursuant to this Act, 75% thereof
25 shall be paid into the State treasury and 25% shall be reserved
26 in a special account and used only for the transfer to the
HB2755 Enrolled - 949 - LRB104 08253 BDA 18303 b
1 Common School Fund as part of the monthly transfer from the
2 General Revenue Fund in accordance with Section 8a of the
3 State Finance Act. Beginning July 1, 2025, of the remainder of
4 the moneys received by the Department pursuant to this Act,
5 75% shall be deposited into the General Revenue Fund and 25%
6 shall be deposited into the Common School Fund.
7 The Department may, upon separate written notice to a
8 taxpayer, require the taxpayer to prepare and file with the
9 Department on a form prescribed by the Department within not
10 less than 60 days after receipt of the notice an annual
11 information return for the tax year specified in the notice.
12 Such annual return to the Department shall include a statement
13 of gross receipts as shown by the retailer's last federal
14 income tax return. If the total receipts of the business as
15 reported in the federal income tax return do not agree with the
16 gross receipts reported to the Department of Revenue for the
17 same period, the retailer shall attach to his annual return a
18 schedule showing a reconciliation of the 2 amounts and the
19 reasons for the difference. The retailer's annual return to
20 the Department shall also disclose the cost of goods sold by
21 the retailer during the year covered by such return, opening
22 and closing inventories of such goods for such year, costs of
23 goods used from stock or taken from stock and given away by the
24 retailer during such year, payroll information of the
25 retailer's business during such year and any additional
26 reasonable information which the Department deems would be
HB2755 Enrolled - 950 - LRB104 08253 BDA 18303 b
1 helpful in determining the accuracy of the monthly, quarterly,
2 or annual returns filed by such retailer as provided for in
3 this Section.
4 If the annual information return required by this Section
5 is not filed when and as required, the taxpayer shall be liable
6 as follows:
7 (i) Until January 1, 1994, the taxpayer shall be
8 liable for a penalty equal to 1/6 of 1% of the tax due from
9 such taxpayer under this Act during the period to be
10 covered by the annual return for each month or fraction of
11 a month until such return is filed as required, the
12 penalty to be assessed and collected in the same manner as
13 any other penalty provided for in this Act.
14 (ii) On and after January 1, 1994, the taxpayer shall
15 be liable for a penalty as described in Section 3-4 of the
16 Uniform Penalty and Interest Act.
17 The chief executive officer, proprietor, owner, or highest
18 ranking manager shall sign the annual return to certify the
19 accuracy of the information contained therein. Any person who
20 willfully signs the annual return containing false or
21 inaccurate information shall be guilty of perjury and punished
22 accordingly. The annual return form prescribed by the
23 Department shall include a warning that the person signing the
24 return may be liable for perjury.
25 The provisions of this Section concerning the filing of an
26 annual information return do not apply to a retailer who is not
HB2755 Enrolled - 951 - LRB104 08253 BDA 18303 b
1 required to file an income tax return with the United States
2 Government.
3 As soon as possible after the first day of each month, upon
4 certification of the Department of Revenue, the Comptroller
5 shall order transferred and the Treasurer shall transfer from
6 the General Revenue Fund to the Motor Fuel Tax Fund an amount
7 equal to 1.7% of 80% of the net revenue realized under this Act
8 for the second preceding month. Beginning April 1, 2000, this
9 transfer is no longer required and shall not be made.
10 Net revenue realized for a month shall be the revenue
11 collected by the State pursuant to this Act, less the amount
12 paid out during that month as refunds to taxpayers for
13 overpayment of liability.
14 For greater simplicity of administration, manufacturers,
15 importers and wholesalers whose products are sold at retail in
16 Illinois by numerous retailers, and who wish to do so, may
17 assume the responsibility for accounting and paying to the
18 Department all tax accruing under this Act with respect to
19 such sales, if the retailers who are affected do not make
20 written objection to the Department to this arrangement.
21 Any person who promotes, organizes, or provides retail
22 selling space for concessionaires or other types of sellers at
23 the Illinois State Fair, DuQuoin State Fair, county fairs,
24 local fairs, art shows, flea markets, and similar exhibitions
25 or events, including any transient merchant as defined by
26 Section 2 of the Transient Merchant Act of 1987, is required to
HB2755 Enrolled - 952 - LRB104 08253 BDA 18303 b
1 file a report with the Department providing the name of the
2 merchant's business, the name of the person or persons engaged
3 in merchant's business, the permanent address and Illinois
4 Retailers Occupation Tax Registration Number of the merchant,
5 the dates and location of the event, and other reasonable
6 information that the Department may require. The report must
7 be filed not later than the 20th day of the month next
8 following the month during which the event with retail sales
9 was held. Any person who fails to file a report required by
10 this Section commits a business offense and is subject to a
11 fine not to exceed $250.
12 Any person engaged in the business of selling tangible
13 personal property at retail as a concessionaire or other type
14 of seller at the Illinois State Fair, county fairs, art shows,
15 flea markets, and similar exhibitions or events, or any
16 transient merchants, as defined by Section 2 of the Transient
17 Merchant Act of 1987, may be required to make a daily report of
18 the amount of such sales to the Department and to make a daily
19 payment of the full amount of tax due. The Department shall
20 impose this requirement when it finds that there is a
21 significant risk of loss of revenue to the State at such an
22 exhibition or event. Such a finding shall be based on evidence
23 that a substantial number of concessionaires or other sellers
24 who are not residents of Illinois will be engaging in the
25 business of selling tangible personal property at retail at
26 the exhibition or event, or other evidence of a significant
HB2755 Enrolled - 953 - LRB104 08253 BDA 18303 b
1 risk of loss of revenue to the State. The Department shall
2 notify concessionaires and other sellers affected by the
3 imposition of this requirement. In the absence of notification
4 by the Department, the concessionaires and other sellers shall
5 file their returns as otherwise required in this Section.
6 (Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60,
7 Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
8 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
9 1-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363,
10 eff. 7-28-23; 103-592, Article 75, Section 75-20, eff. 1-1-25;
11 103-592, Article 110, Section 110-20, eff. 6-7-24; 103-605,
12 eff. 7-1-24; 103-1055, eff. 12-20-24.)
13 Section 35-40. The Illinois Vehicle Code is amended by
14 changing Section 3-1001 as follows:
15 (625 ILCS 5/3-1001) (from Ch. 95 1/2, par. 3-1001)
16 Sec. 3-1001. A tax is hereby imposed on the privilege of
17 using, in this State, any motor vehicle as defined in Section
18 1-146 of this Code acquired by gift, transfer, or purchase,
19 and having a year model designation preceding the year of
20 application for title by 5 or fewer years prior to October 1,
21 1985 and 10 or fewer years on and after October 1, 1985 and
22 prior to January 1, 1988. On and after January 1, 1988, the tax
23 shall apply to all motor vehicles without regard to model
24 year. Except that the tax shall not apply:
HB2755 Enrolled - 954 - LRB104 08253 BDA 18303 b
1 (i) if the use of the motor vehicle is otherwise taxed
2 under the Use Tax Act;
3 (ii) if the motor vehicle is bought and used by a
4 governmental agency or a society, association, foundation
5 or institution organized and operated exclusively for
6 charitable, religious or educational purposes;
7 (iii) if the use of the motor vehicle is not subject to
8 the Use Tax Act by reason of subsection (a), (b), (c), (d),
9 (e) or (f) of Section 3-55 of that Act dealing with the
10 prevention of actual or likely multistate taxation;
11 (iv) to implements of husbandry;
12 (v) when a junking certificate is issued pursuant to
13 Section 3-117(a) of this Code;
14 (vi) when a vehicle is subject to the replacement
15 vehicle tax imposed by Section 3-2001 of this Act;
16 (vii) when the transfer is a gift to a beneficiary in
17 the administration of an estate and the beneficiary is a
18 surviving spouse;.
19 (viii) if the motor vehicle is purchased for the
20 purpose of resale by a retailer registered under Section
21 2a of the Retailers' Occupation Tax Act.
22 Prior to January 1, 1988, the rate of tax shall be 5% of
23 the selling price for each purchase of a motor vehicle covered
24 by Section 3-1001 of this Code. Except as hereinafter
25 provided, beginning January 1, 1988 and until January 1, 2022,
26 the rate of tax shall be as follows for transactions in which
HB2755 Enrolled - 955 - LRB104 08253 BDA 18303 b
1 the selling price of the motor vehicle is less than $15,000:
2 Number of Years Transpired After Applicable Tax
3 Model Year of Motor Vehicle
4 1 or less $390
5 2 290
6 3 215
7 4 165
8 5 115
9 6 90
10 7 80
11 8 65
12 9 50
13 10 40
14 over 10 25
15 Except as hereinafter provided, beginning January 1, 1988 and
16 until January 1, 2022, the rate of tax shall be as follows for
17 transactions in which the selling price of the motor vehicle
18 is $15,000 or more:
19 Selling Price Applicable Tax
20 $15,000 - $19,999 $ 750
21 $20,000 - $24,999 $1,000
22 $25,000 - $29,999 $1,250
23 $30,000 and over $1,500
24 Except as hereinafter provided, beginning on January 1,
25 2022, the rate of tax shall be as follows for transactions in
26 which the selling price of the motor vehicle is less than
HB2755 Enrolled - 956 - LRB104 08253 BDA 18303 b
1 $15,000:
2 (1) if one year or less has transpired after the model
3 year of the vehicle, then the applicable tax is $465;
4 (2) if 2 years have transpired after the model year of
5 the motor vehicle, then the applicable tax is $365;
6 (3) if 3 years have transpired after the model year of
7 the motor vehicle, then the applicable tax is $290;
8 (4) if 4 years have transpired after the model year of
9 the motor vehicle, then the applicable tax is $240;
10 (5) if 5 years have transpired after the model year of
11 the motor vehicle, then the applicable tax is $190;
12 (6) if 6 years have transpired after the model year of
13 the motor vehicle, then the applicable tax is $165;
14 (7) if 7 years have transpired after the model year of
15 the motor vehicle, then the applicable tax is $155;
16 (8) if 8 years have transpired after the model year of
17 the motor vehicle, then the applicable tax is $140;
18 (9) if 9 years have transpired after the model year of
19 the motor vehicle, then the applicable tax is $125;
20 (10) if 10 years have transpired after the model year
21 of the motor vehicle, then the applicable tax is $115; and
22 (11) if more than 10 years have transpired after the
23 model year of the motor vehicle, then the applicable tax
24 is $100.
25 Except as hereinafter provided, beginning on January 1,
26 2022, the rate of tax shall be as follows for transactions in
HB2755 Enrolled - 957 - LRB104 08253 BDA 18303 b
1 which the selling price of the motor vehicle is $15,000 or
2 more:
3 (1) if the selling price is $15,000 or more, but less
4 than $20,000, then the applicable tax shall be $850;
5 (2) if the selling price is $20,000 or more, but less
6 than $25,000, then the applicable tax shall be $1,100;
7 (3) if the selling price is $25,000 or more, but less
8 than $30,000, then the applicable tax shall be $1,350;
9 (4) if the selling price is $30,000 or more, but less
10 than $50,000, then the applicable tax shall be $1,600;
11 (5) if the selling price is $50,000 or more, but less
12 than $100,000, then the applicable tax shall be $2,600;
13 (6) if the selling price is $100,000 or more, but less
14 than $1,000,000, then the applicable tax shall be $5,100;
15 and
16 (7) if the selling price is $1,000,000 or more, then
17 the applicable tax shall be $10,100.
18 For the following transactions, the tax rate shall be $15 for
19 each motor vehicle acquired in such transaction:
20 (i) when the transferee or purchaser is the spouse,
21 mother, father, brother, sister or child of the
22 transferor;
23 (ii) when the transfer is a gift to a beneficiary in
24 the administration of an estate, including, but not
25 limited to, the administration of an inter vivos trust
26 that became irrevocable upon the death of a grantor, and
HB2755 Enrolled - 958 - LRB104 08253 BDA 18303 b
1 the beneficiary is not a surviving spouse;
2 (iii) when a motor vehicle which has once been
3 subjected to the Illinois retailers' occupation tax or use
4 tax is transferred in connection with the organization,
5 reorganization, dissolution or partial liquidation of an
6 incorporated or unincorporated business wherein the
7 beneficial ownership is not changed.
8 A claim that the transaction is taxable under subparagraph
9 (i) shall be supported by such proof of family relationship as
10 provided by rules of the Department.
11 For a transaction in which a motorcycle, motor driven
12 cycle or moped is acquired the tax rate shall be $25.
13 On and after October 1, 1985 and until January 1, 2022,
14 1/12 of $5,000,000 of the moneys received by the Department of
15 Revenue pursuant to this Section shall be paid each month into
16 the Build Illinois Fund; on and after January 1, 2022, 1/12 of
17 $40,000,000 of the moneys received by the Department of
18 Revenue pursuant to this Section shall be paid each month into
19 the Build Illinois Fund; and the remainder shall be paid into
20 the General Revenue Fund.
21 The tax imposed by this Section shall be abated and no
22 longer imposed when the amount deposited to secure the bonds
23 issued pursuant to the Build Illinois Bond Act is sufficient
24 to provide for the payment of the principal of, and interest
25 and premium, if any, on the bonds, as certified to the State
26 Comptroller and the Director of Revenue by the Director of the
HB2755 Enrolled - 959 - LRB104 08253 BDA 18303 b
1 Governor's Office of Management and Budget.
2 (Source: P.A. 102-353, eff. 1-1-22; 102-762, eff. 5-13-22.)
3 Section 35-45. The Illinois Gives Tax Credit Act is
4 amended by changing Sections 170-5 and 170-10 as follows:
5 (35 ILCS 60/170-5)
6 Sec. 170-5. Definitions. As used in this Act:
7 "Business entity" means a corporation (including a
8 Subchapter S corporation), trust, estate, partnership, limited
9 liability company, or sole proprietorship.
10 "Credit-eligible endowment gift" means an endowment gift
11 for which a taxpayer intends to apply for an income tax credit
12 under this Act.
13 "Department" means the Department of Revenue.
14 "Donor advised fund" has the meaning given to that term in
15 subsection (d) of Section 4966 of the Internal Revenue Code of
16 1986.
17 "Endowment gift" means an irrevocable contribution to a
18 permanent endowment fund held by a qualified community
19 foundation.
20 "Permanent endowment fund" means a fund that (i) is held
21 by a qualified community foundation, (ii) provides charitable
22 grants exclusively for the benefit of residents of the State
23 or charities and charitable projects located in the State,
24 (iii) is intended to exist in perpetuity, (iv) has an annual
HB2755 Enrolled - 960 - LRB104 08253 BDA 18303 b
1 spending rate based on the foundation spending policy, but not
2 to exceed 7%, and (v) is not a donor advised fund.
3 "Qualified community foundation" means a community
4 foundation or similar publicly supported organization
5 described in Section 170(b)(1)(A)(vi) of the Internal Revenue
6 Code of 1986 that is organized or operating in this State and
7 that (i) for applications submitted before July 1, 2025,
8 substantially complies with the national standards for U.S.
9 community foundations established by the Community Foundations
10 National Standards, as determined by the Department, (ii) for
11 applications or renewals submitted on or after July 1, 2025
12 and before July 1, 2026, has received or applied for the
13 Community Foundations National Standards accreditation seal,
14 or (iii) for applications or renewals submitted on or after
15 July 1, 2026, has received the Community Foundations National
16 Standards accreditation seal.
17 "Taxpayer" means any individual who is subject to the tax
18 imposed under subsections (a) and (b) of Section 201 of the
19 Illinois Income Tax Act or any business entity that is subject
20 to the tax imposed under subsections (a) and (b) of Section 201
21 of the Illinois Income Tax Act.
22 (Source: P.A. 103-592, eff. 6-7-24.)
23 (35 ILCS 60/170-10)
24 Sec. 170-10. Tax credit awards; limitations.
25 (a) For taxable years ending on or after December 31, 2025
HB2755 Enrolled - 961 - LRB104 08253 BDA 18303 b
1 and ending before December 31, 2030 January 1, 2030, the
2 Department shall award, in accordance with this Act, income
3 tax credits to taxpayers who provide an endowment gift to a
4 permanent endowment fund during the taxable year and receive a
5 certificate of receipt under Section 170-15 for that gift.
6 Subject to the limitations in this Section, the amount of the
7 credit that may be awarded to a taxpayer by the Department
8 under this Act is an amount equal to 25% of the endowment gift.
9 For the purposes of this Section, taxpayers filing a joint
10 return shall be considered one taxpayer.
11 (b) The aggregate amount of all Illinois Gives tax credits
12 awarded by the Department under this Act in any calendar year
13 may not exceed $5,000,000.
14 (c) The aggregate amount of all Illinois Gives tax credits
15 that the Department may award to any taxpayer under this Act in
16 any calendar year may not exceed $100,000 for taxpayers who
17 are not spouses filing a joint return or $200,000 for
18 taxpayers who are spouses filing a joint return.
19 (d) The amount of contributions to any specific qualified
20 community foundation that are eligible for Illinois Gives tax
21 credits under this Section in any calendar year shall not
22 exceed $3,000,000.
23 (e) Of the annual amount available for tax credits, 25%
24 must be reserved for endowment gifts that do not exceed the
25 small gift maximum set forth in this subsection. The small
26 gift maximum is $25,000. For purposes of determining if a
HB2755 Enrolled - 962 - LRB104 08253 BDA 18303 b
1 donation meets the small gift maximum, the amount of the
2 credit authorization certificate under Section 170-15 shall be
3 used.
4 (f) For the purpose of this Section, a credit is
5 considered to be awarded on the date the Department issues an
6 approved contribution authorization certificate under Section
7 170-15.
8 (Source: P.A. 103-592, eff. 6-7-24.)
9 Section 35-50. The Illinois Municipal Code is amended by
10 changing Section 8-11-2.3 as follows:
11 (65 ILCS 5/8-11-2.3)
12 Sec. 8-11-2.3. Municipal Motor Fuel Tax Law.
13 Notwithstanding any other provision of law, in addition to any
14 other tax that may be imposed, a municipality in a county with
15 a population of over 3,000,000 inhabitants may also impose, by
16 ordinance, a tax upon all persons engaged in the municipality
17 in the business of selling motor fuel, as defined in the Motor
18 Fuel Tax Law, at retail for the operation of motor vehicles
19 upon public highways or for the operation of recreational
20 watercraft upon waterways. The tax may be imposed, in one cent
21 increments, at a rate not to exceed $0.03 per gallon of motor
22 fuel sold at retail within the municipality for the purpose of
23 use or consumption and not for the purpose of resale. The tax
24 may not be imposed under this Section on aviation fuel, as
HB2755 Enrolled - 963 - LRB104 08253 BDA 18303 b
1 defined in Section 3 of the Retailers' Occupation Tax Act.
2 Notwithstanding any provisions of this Section to the
3 contrary, a municipality whose territory lies partially in a
4 county with a population of over 3,000,000 inhabitants and
5 partially outside such a county may, in the alternative,
6 impose the tax authorized under this Section in only that
7 portion of the municipality that lies in a county with a
8 population of over 3,000,000 inhabitants.
9 Persons subject to any tax imposed under the authority
10 granted in this Section may reimburse themselves for their
11 seller's tax liability hereunder by separately stating that
12 tax as an additional charge, which charge may be stated in
13 combination, in a single amount, with State tax which sellers
14 are required to collect under the Use Tax Act, pursuant to such
15 bracket schedules as the Department may prescribe.
16 A tax imposed pursuant to this Section, and all civil
17 penalties that may be assessed as an incident thereof, shall
18 be administered, collected, and enforced by the Department of
19 Revenue in the same manner as the tax imposed under the
20 Retailers' Occupation Tax Act, as now or hereafter amended,
21 insofar as may be practicable; except that in the event of a
22 conflict with the provisions of this Section, this Section
23 shall control. The Department of Revenue shall have full power
24 to: administer and enforce this Section; collect all taxes and
25 penalties due hereunder; dispose of taxes and penalties so
26 collected in the manner hereinafter provided; and determine
HB2755 Enrolled - 964 - LRB104 08253 BDA 18303 b
1 all rights to credit memoranda arising on account of the
2 erroneous payment of tax or penalty hereunder.
3 Whenever the Department determines that a refund shall be
4 made under this Section to a claimant instead of issuing a
5 credit memorandum, the Department shall notify the State
6 Comptroller, who shall cause the order to be drawn for the
7 amount specified, and to the person named, in the notification
8 from the Department. The refund shall be paid by the State
9 Treasurer out of the Municipal Motor Fuel Tax Fund.
10 The Department shall immediately pay over to the State
11 Treasurer, ex officio, as trustee, all taxes and penalties
12 collected under this Section. Those taxes and penalties shall
13 be deposited into the Municipal Motor Fuel Tax Fund, a trust
14 fund created in the State treasury. Moneys in the Municipal
15 Motor Fuel Tax Fund shall be used to make payments to
16 municipalities and for the payment of refunds under this
17 Section.
18 On or before the 25th day of each calendar month, the
19 Department shall prepare and certify to the State Comptroller
20 the disbursement of stated sums of money to named
21 municipalities for which taxpayers have paid taxes or
22 penalties hereunder to the Department during the second
23 preceding calendar month. The amount to be paid to each
24 municipality shall be the amount (not including credit
25 memoranda) collected under this Section from retailers within
26 the municipality during the second preceding calendar month by
HB2755 Enrolled - 965 - LRB104 08253 BDA 18303 b
1 the Department, plus an amount the Department determines is
2 necessary to offset amounts that were erroneously paid to a
3 different municipality, and not including an amount equal to
4 the amount of refunds made during the second preceding
5 calendar month by the Department on behalf of the
6 municipality, and not including any amount that the Department
7 determines is necessary to offset any amounts that were
8 payable to a different municipality but were erroneously paid
9 to the municipality, less 1.5% of the remainder, which the
10 Department shall transfer into the Tax Compliance and
11 Administration Fund. The Department, at the time of each
12 monthly disbursement, shall prepare and certify to the State
13 Comptroller the amount to be transferred into the Tax
14 Compliance and Administration Fund under this Section. Within
15 10 days after receipt by the Comptroller of the disbursement
16 certification to the municipalities and the Tax Compliance and
17 Administration Fund provided for in this Section to be given
18 to the Comptroller by the Department, the Comptroller shall
19 cause the orders to be drawn for the respective amounts in
20 accordance with the directions contained in the certification.
21 Nothing in this Section shall be construed to authorize a
22 municipality to impose a tax upon the privilege of engaging in
23 any business which under the Constitution of the United States
24 may not be made the subject of taxation by this State.
25 An ordinance or resolution imposing or discontinuing the
26 tax under this Section or effecting a change in the rate
HB2755 Enrolled - 966 - LRB104 08253 BDA 18303 b
1 thereof shall either: (i) be adopted and a certified copy
2 thereof filed with the Department on or before the first day of
3 April, whereupon the Department shall proceed to administer
4 and enforce this Section as of the first day of July next
5 following the adoption and filing; or (ii) be adopted and a
6 certified copy thereof filed with the Department on or before
7 the first day of October, whereupon the Department shall
8 proceed to administer and enforce this Section as of the first
9 day of January next following the adoption and filing.
10 An ordinance adopted in accordance with the provisions of
11 this Section in effect before the effective date of this
12 amendatory Act of the 101st General Assembly shall be deemed
13 to impose the tax in accordance with the provisions of this
14 Section as amended by this amendatory Act of the 101st General
15 Assembly and shall be administered by the Department of
16 Revenue in accordance with the provisions of this Section as
17 amended by this amendatory Act of the 101st General Assembly;
18 provided that, on or before October 1, 2020, the municipality
19 adopts and files a certified copy of a superseding ordinance
20 that imposes the tax in accordance with the provisions of this
21 Section as amended by this amendatory Act of the 101st General
22 Assembly. If a superseding ordinance is not so adopted and
23 filed, then the tax imposed in accordance with the provisions
24 of this Section in effect before the effective date of this
25 amendatory Act of the 101st General Assembly shall be
26 discontinued on January 1, 2021.
HB2755 Enrolled - 967 - LRB104 08253 BDA 18303 b
1 This Section shall be known and may be cited as the
2 Municipal Motor Fuel Tax Law.
3 (Source: P.A. 101-32, eff. 6-28-19; 101-604, eff. 12-13-19.)
4 Section 35-55. The Liquor Control Act of 1934 is amended
5 by changing Section 8-1 as follows:
6 (235 ILCS 5/8-1)
7 Sec. 8-1. A tax is imposed upon the privilege of engaging
8 in business as a manufacturer or as an importing distributor
9 of alcoholic liquor other than beer at the rate of $0.185 per
10 gallon until September 1, 2009 and $0.231 per gallon beginning
11 September 1, 2009 for cider containing not less than 0.5%
12 alcohol by volume nor more than 7% alcohol by volume, $0.73 per
13 gallon until September 1, 2009 and $1.39 per gallon beginning
14 September 1, 2009 for wine other than cider containing less
15 than 7% alcohol by volume, and $4.50 per gallon until
16 September 1, 2009 and $8.55 per gallon beginning September 1,
17 2009 on alcohol and spirits manufactured and sold or used by
18 such manufacturer, or as agent for any other person, or sold or
19 used by such importing distributor, or as agent for any other
20 person. A tax is imposed upon the privilege of engaging in
21 business as a manufacturer of beer or as an importing
22 distributor of beer at the rate of $0.185 per gallon until
23 September 1, 2009 and $0.231 per gallon beginning September 1,
24 2009 on all beer, regardless of alcohol by volume,
HB2755 Enrolled - 968 - LRB104 08253 BDA 18303 b
1 manufactured and sold or used by such manufacturer, or as
2 agent for any other person, or sold or used by such importing
3 distributor, or as agent for any other person. Any brewer
4 manufacturing beer in this State shall be entitled to and
5 given a credit or refund of 75% of the tax imposed on each
6 gallon of beer up to 4.9 million gallons per year in any given
7 calendar year for tax paid or payable on beer produced and sold
8 in the State of Illinois.
9 For purposes of this Section, "beer" means beer, ale,
10 porter, stout, and other similar fermented beverages of any
11 name or description containing one-half of one percent or more
12 of alcohol by volume, brewed or produced from malt, wholly or
13 in part, or from any substitute for malt.
14 For the purpose of this Section, "cider" means any
15 alcoholic beverage obtained by the alcohol fermentation of the
16 juice of apples or pears including, but not limited to,
17 flavored, sparkling, or carbonated cider.
18 The credit or refund created by this Act shall apply to all
19 beer taxes in the calendar years 1982 through 1986.
20 The increases made by this amendatory Act of the 91st
21 General Assembly in the rates of taxes imposed under this
22 Section shall apply beginning on July 1, 1999.
23 A tax at the rate of 1¢ per gallon on beer and 48¢ per
24 gallon on alcohol and spirits is also imposed upon the
25 privilege of engaging in business as a retailer or as a
26 distributor who is not also an importing distributor with
HB2755 Enrolled - 969 - LRB104 08253 BDA 18303 b
1 respect to all beer and all alcohol and spirits owned or
2 possessed by such retailer or distributor when this amendatory
3 Act of 1969 becomes effective, and with respect to which the
4 additional tax imposed by this amendatory Act upon
5 manufacturers and importing distributors does not apply.
6 Retailers and distributors who are subject to the additional
7 tax imposed by this paragraph of this Section shall be
8 required to inventory such alcoholic liquor and to pay this
9 additional tax in a manner prescribed by the Department.
10 The provisions of this Section shall be construed to apply
11 to any importing distributor engaging in business in this
12 State, whether licensed or not.
13 However, such tax is not imposed upon any such business as
14 to any alcoholic liquor shipped outside Illinois by an
15 Illinois licensed manufacturer or importing distributor, nor
16 as to any alcoholic liquor delivered in Illinois by an
17 Illinois licensed manufacturer or importing distributor to a
18 purchaser for immediate transportation by the purchaser to
19 another state into which the purchaser has a legal right,
20 under the laws of such state, to import such alcoholic liquor,
21 nor as to any alcoholic liquor other than beer sold by one
22 Illinois licensed manufacturer or importing distributor to
23 another Illinois licensed manufacturer or importing
24 distributor to the extent to which the sale of alcoholic
25 liquor other than beer by one Illinois licensed manufacturer
26 or importing distributor to another Illinois licensed
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1 manufacturer or importing distributor is authorized by the
2 licensing provisions of this Act, nor to alcoholic liquor
3 whether manufactured in or imported into this State when sold
4 to a "non-beverage user" licensed by the State for use in the
5 manufacture of any of the following when they are unfit for
6 beverage purposes:
7 Patent and proprietary medicines and medicinal,
8 antiseptic, culinary and toilet preparations;
9 Flavoring extracts and syrups and food products;
10 Scientific, industrial and chemical products, excepting
11 denatured alcohol;
12 Or for scientific, chemical, experimental or mechanical
13 purposes;
14 Nor is the tax imposed upon the privilege of engaging in
15 any business in interstate commerce or otherwise, which
16 business may not, under the Constitution and Statutes of the
17 United States, be made the subject of taxation by this State.
18 The tax herein imposed shall be in addition to all other
19 occupation or privilege taxes imposed by the State of Illinois
20 or political subdivision thereof.
21 If any alcoholic liquor manufactured in or imported into
22 this State is sold to a licensed manufacturer or importing
23 distributor by a licensed manufacturer or importing
24 distributor to be used solely as an ingredient in the
25 manufacture of any beverage for human consumption, the tax
26 imposed upon such purchasing manufacturer or importing
HB2755 Enrolled - 971 - LRB104 08253 BDA 18303 b
1 distributor shall be reduced by the amount of the taxes which
2 have been paid by the selling manufacturer or importing
3 distributor under this Act as to such alcoholic liquor so used
4 to the Department of Revenue.
5 If any person received any alcoholic liquors from a
6 manufacturer or importing distributor, with respect to which
7 alcoholic liquors no tax is imposed under this Article, and
8 such alcoholic liquor shall thereafter be disposed of in such
9 manner or under such circumstances as may cause the same to
10 become the base for the tax imposed by this Article, such
11 person shall make the same reports and returns, pay the same
12 taxes and be subject to all other provisions of this Article
13 relating to manufacturers and importing distributors.
14 Nothing in this Article shall be construed to require the
15 payment to the Department of the taxes imposed by this Article
16 more than once with respect to any quantity of alcoholic
17 liquor sold or used within this State.
18 No tax is imposed by this Act on sales of alcoholic liquor
19 by Illinois licensed foreign importers to Illinois licensed
20 importing distributors.
21 Before July 1, 2025, all All of the proceeds of the
22 additional tax imposed by Public Act 96-34 shall be deposited
23 by the Department into the Capital Projects Fund. The
24 remainder of the tax imposed by this Act shall be deposited by
25 the Department into the General Revenue Fund. On and after
26 July 1, 2025, the proceeds from the tax imposed by this Act
HB2755 Enrolled - 972 - LRB104 08253 BDA 18303 b
1 shall be deposited as follows:
2 (1) 43% into the Capital Projects Fund; and
3 (2) 57% into the General Revenue Fund.
4 A manufacturer of beer that imports or transfers beer into
5 this State must comply with the provisions of this Section
6 with regard to the beer imported into this State.
7 The provisions of this Section 8-1 are severable under
8 Section 1.31 of the Statute on Statutes.
9 (Source: P.A. 100-885, eff. 8-14-18; 101-16, eff. 6-14-19.)
10 ARTICLE 40
11 Section 40-5. The Motor Fuel Tax Law is amended by
12 changing Sections 1.1 and 13 as follows:
13 (35 ILCS 505/1.1) (from Ch. 120, par. 417.1)
14 Sec. 1.1. "Motor Fuel" means all volatile and inflammable
15 substances (whether in liquid or gaseous form) that are
16 liquids produced, blended or compounded for the purpose of, or
17 that which are suitable or practicable for, operating motor
18 vehicles. Among other things, "Motor Fuel" includes "Special
19 Fuel" as defined in Section 1.13 of this Act.
20 (Source: Laws 1963, p. 1557.)
21 (35 ILCS 505/13) (from Ch. 120, par. 429)
22 Sec. 13. Refund of tax paid. Any person other than a
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1 distributor or supplier, who loses motor fuel through any
2 cause or uses motor fuel (upon which he has paid the amount
3 required to be collected under Section 2 of this Act) for any
4 purpose other than operating a motor vehicle upon the public
5 highways or waters, shall be reimbursed and repaid the amount
6 so paid.
7 Any person who purchases motor fuel in Illinois and uses
8 that motor fuel in another state and that other state imposes a
9 tax on the use of such motor fuel shall be reimbursed and
10 repaid the amount of Illinois tax paid under Section 2 of this
11 Act on the motor fuel used in such other state. Reimbursement
12 and repayment shall be made by the Department upon receipt of
13 adequate proof of taxes directly paid to another state and the
14 amount of motor fuel used in that state.
15 Claims based in whole or in part on taxes paid to another
16 state shall include (i) a certified copy of the tax return
17 filed with such other state by the claimant; (ii) a copy of
18 either the cancelled check paying the tax due on such return,
19 or a receipt acknowledging payment of the tax due on such tax
20 return; and (iii) such other information as the Department may
21 reasonably require. This paragraph shall not apply to taxes
22 paid on returns filed under Section 13a.3 of this Act.
23 Any person who purchases motor fuel use tax decals as
24 required by Section 13a.4 and pays an amount of fees for such
25 decals that exceeds the amount due shall be reimbursed and
26 repaid the amount of the decal fees that are deemed by the
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1 department to be in excess of the amount due. Alternatively,
2 any person who purchases motor fuel use tax decals as required
3 by Section 13a.4 may credit any excess decal payment verified
4 by the Department against amounts subsequently due for the
5 purchase of additional decals, until such time as no excess
6 payment remains.
7 Claims for such reimbursement must be made to the
8 Department of Revenue, duly verified by the claimant (or by
9 the claimant's legal representative if the claimant has died
10 or become a person under legal disability), upon forms
11 prescribed by the Department. The claim must state such facts
12 relating to the purchase, importation, manufacture or
13 production of the motor fuel by the claimant as the Department
14 may deem necessary, and the time when, and the circumstances
15 of its loss or the specific purpose for which it was used (as
16 the case may be), together with such other information as the
17 Department may reasonably require. No claim based upon idle
18 time shall be allowed. Claims for reimbursement for
19 overpayment of decal fees shall be made to the Department of
20 Revenue, duly verified by the claimant (or by the claimant's
21 legal representative if the claimant has died or become a
22 person under legal disability), upon forms prescribed by the
23 Department. The claim shall state facts relating to the
24 overpayment of decal fees, together with such other
25 information as the Department may reasonably require. Claims
26 for reimbursement of overpayment of decal fees paid on or
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1 after January 1, 2011 must be filed not later than one year
2 after the date on which the fees were paid by the claimant. If
3 it is determined that the Department should reimburse a
4 claimant for overpayment of decal fees, the Department shall
5 first apply the amount of such refund against any tax or
6 penalty or interest due by the claimant under Section 13a of
7 this Act.
8 Claims for full reimbursement for taxes paid on or before
9 December 31, 1999 must be filed not later than one year after
10 the date on which the tax was paid by the claimant. If,
11 however, a claim for such reimbursement otherwise meeting the
12 requirements of this Section is filed more than one year but
13 less than 2 years after that date, the claimant shall be
14 reimbursed at the rate of 80% of the amount to which he would
15 have been entitled if his claim had been timely filed.
16 Claims for full reimbursement for taxes paid on or after
17 January 1, 2000 must be filed not later than 2 years after the
18 date on which the tax was paid by the claimant.
19 The Department may make such investigation of the
20 correctness of the facts stated in such claims as it deems
21 necessary. When the Department has approved any such claim, it
22 shall pay to the claimant (or to the claimant's legal
23 representative, as such if the claimant has died or become a
24 person under legal disability) the reimbursement provided in
25 this Section, out of any moneys appropriated to it for that
26 purpose.
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1 Any distributor or supplier who has paid the tax imposed
2 by Section 2 of this Act upon motor fuel lost or used by such
3 distributor or supplier for any purpose other than operating a
4 motor vehicle upon the public highways or waters may file a
5 claim for credit or refund to recover the amount so paid. Such
6 claims shall be filed on forms prescribed by the Department.
7 Such claims shall be made to the Department, duly verified by
8 the claimant (or by the claimant's legal representative if the
9 claimant has died or become a person under legal disability),
10 upon forms prescribed by the Department. The claim shall state
11 such facts relating to the purchase, importation, manufacture
12 or production of the motor fuel by the claimant as the
13 Department may deem necessary and the time when the loss or
14 nontaxable use occurred, and the circumstances of its loss or
15 the specific purpose for which it was used (as the case may
16 be), together with such other information as the Department
17 may reasonably require. Claims must be filed not later than
18 one year after the date on which the tax was paid by the
19 claimant.
20 The Department may make such investigation of the
21 correctness of the facts stated in such claims as it deems
22 necessary. When the Department approves a claim, the
23 Department shall issue a refund or credit memorandum as
24 requested by the taxpayer, to the distributor or supplier who
25 made the payment for which the refund or credit is being given
26 or, if the distributor or supplier has died or become
HB2755 Enrolled - 977 - LRB104 08253 BDA 18303 b
1 incompetent, to such distributor's or supplier's legal
2 representative, as such. The amount of such credit memorandum
3 shall be credited against any tax due or to become due under
4 this Act from the distributor or supplier who made the payment
5 for which credit has been given.
6 Any credit or refund that is allowed under this Section
7 shall bear interest at the rate and in the manner specified in
8 the Uniform Penalty and Interest Act.
9 In case the distributor or supplier requests and the
10 Department determines that the claimant is entitled to a
11 refund, such refund shall be made only from such appropriation
12 as may be available for that purpose. If it appears unlikely
13 that the amount appropriated would permit everyone having a
14 claim allowed during the period covered by such appropriation
15 to elect to receive a cash refund, the Department, by rule or
16 regulation, shall provide for the payment of refunds in
17 hardship cases and shall define what types of cases qualify as
18 hardship cases.
19 In any case in which there has been an erroneous refund of
20 tax or fees payable under this Section, a notice of tax
21 liability may be issued at any time within 3 years from the
22 making of that refund, or within 5 years from the making of
23 that refund if it appears that any part of the refund was
24 induced by fraud or the misrepresentation of material fact.
25 The amount of any proposed assessment set forth by the
26 Department shall be limited to the amount of the erroneous
HB2755 Enrolled - 978 - LRB104 08253 BDA 18303 b
1 refund.
2 If no tax is due and no proceeding is pending to determine
3 whether such distributor or supplier is indebted to the
4 Department for tax, the credit memorandum so issued may be
5 assigned and set over by the lawful holder thereof, subject to
6 reasonable rules of the Department, to any other licensed
7 distributor or supplier who is subject to this Act, and the
8 amount thereof applied by the Department against any tax due
9 or to become due under this Act from such assignee.
10 If the payment for which the distributor's or supplier's
11 claim is filed is held in the protest fund of the State
12 Treasury during the pendency of the claim for credit
13 proceedings pursuant to the order of the court in accordance
14 with Section 2a of the State Officers and Employees Money
15 Disposition Act and if it is determined by the Department or by
16 the final order of a reviewing court under the Administrative
17 Review Law that the claimant is entitled to all or a part of
18 the credit claimed, the claimant, instead of receiving a
19 credit memorandum from the Department, shall receive a cash
20 refund from the protest fund as provided for in Section 2a of
21 the State Officers and Employees Money Disposition Act.
22 If any person ceases to be licensed as a distributor or
23 supplier while still holding an unused credit memorandum
24 issued under this Act, such person may, at his election
25 (instead of assigning the credit memorandum to a licensed
26 distributor or licensed supplier under this Act), surrender
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1 such unused credit memorandum to the Department and receive a
2 refund of the amount to which such person is entitled.
3 For claims based upon taxes paid on or before December 31,
4 2000, a claim based upon the use of undyed diesel fuel shall
5 not be allowed except (i) if allowed under the following
6 paragraph or (ii) for undyed diesel fuel used by a commercial
7 vehicle, as that term is defined in Section 1-111.8 of the
8 Illinois Vehicle Code, for any purpose other than operating
9 the commercial vehicle upon the public highways and unlicensed
10 commercial vehicles operating on private property. Claims
11 shall be limited to commercial vehicles that are operated for
12 both highway purposes and any purposes other than operating
13 such vehicles upon the public highways.
14 For claims based upon taxes paid on or after January 1,
15 2000, a claim based upon the use of undyed diesel fuel shall
16 not be allowed except (i) if allowed under the preceding
17 paragraph or (ii) for claims for the following:
18 (1) Undyed diesel fuel used (i) in a manufacturing
19 process, as defined in Section 2-45 of the Retailers'
20 Occupation Tax Act, wherein the undyed diesel fuel becomes
21 a component part of a product or by-product, other than
22 fuel or motor fuel, when the use of dyed diesel fuel in
23 that manufacturing process results in a product that is
24 unsuitable for its intended use or (ii) for testing
25 machinery and equipment in a manufacturing process, as
26 defined in Section 2-45 of the Retailers' Occupation Tax
HB2755 Enrolled - 980 - LRB104 08253 BDA 18303 b
1 Act, wherein the testing takes place on private property.
2 (2) Undyed diesel fuel used by a manufacturer on
3 private property in the research and development, as
4 defined in Section 1.29, of machinery or equipment
5 intended for manufacture.
6 (3) Undyed diesel fuel used by a single unit
7 self-propelled agricultural fertilizer implement,
8 designed for on and off road use, equipped with flotation
9 tires and specially adapted for the application of plant
10 food materials or agricultural chemicals.
11 (4) Undyed diesel fuel used by a commercial motor
12 vehicle for any purpose other than operating the
13 commercial motor vehicle upon the public highways. Claims
14 shall be limited to commercial motor vehicles that are
15 operated for both highway purposes and any purposes other
16 than operating such vehicles upon the public highways.
17 (5) Undyed diesel fuel used by a unit of local
18 government in its operation of an airport if the undyed
19 diesel fuel is used directly in airport operations on
20 airport property.
21 (6) Undyed diesel fuel used by refrigeration units
22 that are permanently mounted to a semitrailer, as defined
23 in Section 1.28 of this Law, wherein the refrigeration
24 units have a fuel supply system dedicated solely for the
25 operation of the refrigeration units.
26 (7) Undyed diesel fuel used by power take-off
HB2755 Enrolled - 981 - LRB104 08253 BDA 18303 b
1 equipment as defined in Section 1.27 of this Law.
2 (8) Beginning on the effective date of this amendatory
3 Act of the 94th General Assembly, undyed diesel fuel used
4 by tugs and spotter equipment to shift vehicles or parcels
5 on both private and airport property. Any claim under this
6 item (8) may be made only by a claimant that owns tugs and
7 spotter equipment and operates that equipment on both
8 private and airport property. The aggregate of all credits
9 or refunds resulting from claims filed under this item (8)
10 by a claimant in any calendar year may not exceed
11 $100,000. A claim may not be made under this item (8) by
12 the same claimant more often than once each quarter. For
13 the purposes of this item (8), "tug" means a vehicle
14 designed for use on airport property that shifts
15 custom-designed containers of parcels from loading docks
16 to aircraft, and "spotter equipment" means a vehicle
17 designed for use on both private and airport property that
18 shifts trailers containing parcels between staging areas
19 and loading docks.
20 Any person who has paid the tax imposed by Section 2 of
21 this Law upon undyed diesel fuel that is unintentionally mixed
22 with dyed diesel fuel and who owns or controls the mixture of
23 undyed diesel fuel and dyed diesel fuel may file a claim for
24 refund to recover the amount paid. The amount of undyed diesel
25 fuel unintentionally mixed must equal 500 gallons or more. Any
26 claim for refund of unintentionally mixed undyed diesel fuel
HB2755 Enrolled - 982 - LRB104 08253 BDA 18303 b
1 and dyed diesel fuel shall be supported by documentation
2 showing the date and location of the unintentional mixing, the
3 number of gallons involved, the disposition of the mixed
4 diesel fuel, and any other information that the Department may
5 reasonably require. Any unintentional mixture of undyed diesel
6 fuel and dyed diesel fuel shall be sold or used only for
7 non-highway purposes.
8 The Department shall promulgate regulations establishing
9 specific limits on the amount of undyed diesel fuel that may be
10 claimed for refund.
11 For purposes of claims for refund, "loss" means the
12 reduction of motor fuel resulting from fire, theft, spillage,
13 spoilage, leakage, or any other provable cause, but does not
14 include a reduction resulting from evaporation, or shrinkage
15 due to temperature variations. In the case of losses due to
16 fire or theft, the claimant must include fire department or
17 police department reports and any other documentation that the
18 Department may require.
19 For purposes of claims for refund, "any purpose other than
20 operating a motor vehicle upon the public highways" refers to
21 the specific purpose for which the motor vehicle was used and
22 does not refer to the specific location where the motor fuel
23 was used. Incidental use of motor fuel on private roads or
24 private highways in the operation of a motor vehicle does not
25 constitute a "purpose other than operating a motor vehicle
26 upon the public highways" and does not form a basis for a claim
HB2755 Enrolled - 983 - LRB104 08253 BDA 18303 b
1 under this Section. The provisions of this amendatory Act of
2 the 104th General Assembly are declaratory of existing law as
3 to the meaning and scope of this claim for refund.
4 (Source: P.A. 100-1171, eff. 1-4-19.)
5 Section 40-10. The Retailers' Occupation Tax Act is
6 amended by changing Section 2a as follows:
7 (35 ILCS 120/2a) (from Ch. 120, par. 441a)
8 Sec. 2a. Registration of retailers. It is unlawful for any
9 person to engage in the business of selling, which, on and
10 after January 1, 2025, includes leasing, tangible personal
11 property at retail in this State without a certificate of
12 registration from the Department. Application for a
13 certificate of registration shall be made to the Department
14 upon forms furnished by it. Each such application shall be
15 signed and verified and shall state: (1) the name and social
16 security number of the applicant; (2) the address of his
17 principal place of business; (3) the address of the principal
18 place of business from which he engages in the business of
19 selling tangible personal property at retail in this State and
20 the addresses of all other places of business, if any
21 (enumerating such addresses, if any, in a separate list
22 attached to and made a part of the application), from which he
23 engages in the business of selling tangible personal property
24 at retail in this State; (4) the name and address of the person
HB2755 Enrolled - 984 - LRB104 08253 BDA 18303 b
1 or persons who will be responsible for filing returns and
2 payment of taxes due under this Act; (5) in the case of a
3 publicly traded corporation, the name and title of the Chief
4 Financial Officer, Chief Operating Officer, and any other
5 officer or employee with responsibility for preparing tax
6 returns under this Act, and, in the case of all other
7 corporations, the name, title, and social security number of
8 each corporate officer; (6) in the case of a limited liability
9 company, the name, social security number, and FEIN number of
10 each manager and member; and (7) such other information as the
11 Department may reasonably require. The application shall
12 contain an acceptance of responsibility signed by the person
13 or persons who will be responsible for filing returns and
14 payment of the taxes due under this Act. If the applicant will
15 sell tangible personal property at retail through vending
16 machines, his application to register shall indicate the
17 number of vending machines to be so operated. If requested by
18 the Department at any time, that person shall verify the total
19 number of vending machines he or she uses in his or her
20 business of selling tangible personal property at retail.
21 The Department shall provide by rule for an expedited
22 business registration process for remote retailers required to
23 register and file under subsection (b) of Section 2 who use a
24 certified service provider to file their returns under this
25 Act. Such expedited registration process shall allow the
26 Department to register a taxpayer based upon the same
HB2755 Enrolled - 985 - LRB104 08253 BDA 18303 b
1 registration information required by the Streamlined Sales Tax
2 Governing Board for states participating in the Streamlined
3 Sales Tax Project.
4 The Department may deny a certificate of registration to
5 any applicant if a person who is named as the owner, a partner,
6 a manager or member of a limited liability company, or a
7 corporate officer of the applicant on the application for the
8 certificate of registration is or has been named as the owner,
9 a partner, a manager or member of a limited liability company,
10 or a corporate officer on the application for the certificate
11 of registration of another retailer that (i) is in default for
12 moneys due under this Act or any other tax or fee Act
13 administered by the Department or (ii) fails to file any
14 return, on or before the due date prescribed for filing that
15 return (including any extensions of time granted by the
16 Department), that the retailer is required to file under this
17 Act or any other tax or fee Act administered by the Department.
18 For purposes of this paragraph only, in determining whether a
19 person is in default for moneys due, the Department shall
20 include only amounts established as a final liability within
21 the 23 years prior to the date of the Department's notice of
22 denial of a certificate of registration.
23 The Department may require an applicant for a certificate
24 of registration hereunder to, at the time of filing such
25 application, furnish a bond from a surety company authorized
26 to do business in the State of Illinois, or an irrevocable bank
HB2755 Enrolled - 986 - LRB104 08253 BDA 18303 b
1 letter of credit or a bond signed by 2 personal sureties who
2 have filed, with the Department, sworn statements disclosing
3 net assets equal to at least 3 times the amount of the bond to
4 be required of such applicant, or a bond secured by an
5 assignment of a bank account or certificate of deposit, stocks
6 or bonds, conditioned upon the applicant paying to the State
7 of Illinois all moneys becoming due under this Act and under
8 any other State tax law or municipal or county tax ordinance or
9 resolution under which the certificate of registration that is
10 issued to the applicant under this Act will permit the
11 applicant to engage in business without registering separately
12 under such other law, ordinance or resolution. In making a
13 determination as to whether to require a bond or other
14 security, the Department shall take into consideration whether
15 the owner, any partner, any manager or member of a limited
16 liability company, or a corporate officer of the applicant is
17 or has been the owner, a partner, a manager or member of a
18 limited liability company, or a corporate officer of another
19 retailer that is in default for moneys due under this Act or
20 any other tax or fee Act administered by the Department; and
21 whether the owner, any partner, any manager or member of a
22 limited liability company, or a corporate officer of the
23 applicant is or has been the owner, a partner, a manager or
24 member of a limited liability company, or a corporate officer
25 of another retailer whose certificate of registration has been
26 revoked within the previous 5 years under this Act or any other
HB2755 Enrolled - 987 - LRB104 08253 BDA 18303 b
1 tax or fee Act administered by the Department. If a bond or
2 other security is required, the Department shall fix the
3 amount of the bond or other security, taking into
4 consideration the amount of money expected to become due from
5 the applicant under this Act and under any other State tax law
6 or municipal or county tax ordinance or resolution under which
7 the certificate of registration that is issued to the
8 applicant under this Act will permit the applicant to engage
9 in business without registering separately under such other
10 law, ordinance, or resolution. The amount of security required
11 by the Department shall be such as, in its opinion, will
12 protect the State of Illinois against failure to pay the
13 amount which may become due from the applicant under this Act
14 and under any other State tax law or municipal or county tax
15 ordinance or resolution under which the certificate of
16 registration that is issued to the applicant under this Act
17 will permit the applicant to engage in business without
18 registering separately under such other law, ordinance or
19 resolution, but the amount of the security required by the
20 Department shall not exceed three times the amount of the
21 applicant's average monthly tax liability, or $50,000.00,
22 whichever amount is lower.
23 No certificate of registration under this Act shall be
24 issued by the Department until the applicant provides the
25 Department with satisfactory security, if required, as herein
26 provided for.
HB2755 Enrolled - 988 - LRB104 08253 BDA 18303 b
1 Upon receipt of the application for certificate of
2 registration in proper form, and upon approval by the
3 Department of the security furnished by the applicant, if
4 required, the Department shall issue to such applicant, in the
5 manner and form determined by the Department, a certificate of
6 registration which shall permit the person to whom it is
7 issued to engage in the business of selling tangible personal
8 property at retail in this State. The certificate of
9 registration shall be conspicuously displayed, in the manner
10 and form as the Department may require by rule, at the place of
11 business which the person so registered states in his
12 application to be the principal place of business from which
13 he engages in the business of selling tangible personal
14 property at retail in this State.
15 No certificate of registration issued prior to July 1,
16 2017 to a taxpayer who files returns required by this Act on a
17 monthly basis or renewed prior to July 1, 2017 by a taxpayer
18 who files returns required by this Act on a monthly basis shall
19 be valid after the expiration of 5 years from the date of its
20 issuance or last renewal. No certificate of registration
21 issued on or after July 1, 2017 to a taxpayer who files returns
22 required by this Act on a monthly basis or renewed on or after
23 July 1, 2017 by a taxpayer who files returns required by this
24 Act on a monthly basis shall be valid after the expiration of
25 one year from the date of its issuance or last renewal. The
26 expiration date of a sub-certificate of registration shall be
HB2755 Enrolled - 989 - LRB104 08253 BDA 18303 b
1 that of the certificate of registration to which the
2 sub-certificate relates. Prior to July 1, 2017, a certificate
3 of registration shall automatically be renewed, subject to
4 revocation as provided by this Act, for an additional 5 years
5 from the date of its expiration unless otherwise notified by
6 the Department as provided by this paragraph. On and after
7 July 1, 2017, a certificate of registration shall
8 automatically be renewed, subject to revocation as provided by
9 this Act, for an additional one year from the date of its
10 expiration unless otherwise notified by the Department as
11 provided by this paragraph.
12 Where a taxpayer to whom a certificate of registration is
13 issued under this Act is in default to the State of Illinois
14 for delinquent returns or for moneys due under this Act or any
15 other State tax law or municipal or county ordinance
16 administered or enforced by the Department, the Department
17 shall, not less than 60 days before the expiration date of such
18 certificate of registration, give notice to the taxpayer to
19 whom the certificate was issued of the account period of the
20 delinquent returns, the amount of tax, penalty and interest
21 due and owing from the taxpayer, and that the certificate of
22 registration shall not be automatically renewed upon its
23 expiration date unless the taxpayer, on or before the date of
24 expiration, has filed and paid the delinquent returns or paid
25 the defaulted amount in full. A taxpayer to whom such a notice
26 is issued shall be deemed an applicant for renewal. The
HB2755 Enrolled - 990 - LRB104 08253 BDA 18303 b
1 Department shall promulgate regulations establishing
2 procedures for taxpayers who file returns on a monthly basis
3 but desire and qualify to change to a quarterly or yearly
4 filing basis and will no longer be subject to renewal under
5 this Section, and for taxpayers who file returns on a yearly or
6 quarterly basis but who desire or are required to change to a
7 monthly filing basis and will be subject to renewal under this
8 Section.
9 The Department may in its discretion approve renewal by an
10 applicant who is in default if, at the time of application for
11 renewal, the applicant files all of the delinquent returns or
12 pays to the Department such percentage of the defaulted amount
13 as may be determined by the Department and agrees in writing to
14 waive all limitations upon the Department for collection of
15 the remaining defaulted amount to the Department over a period
16 not to exceed 5 years from the date of renewal of the
17 certificate; however, no renewal application submitted by an
18 applicant who is in default shall be approved if the
19 immediately preceding renewal by the applicant was conditioned
20 upon the installment payment agreement described in this
21 Section. The payment agreement herein provided for shall be in
22 addition to and not in lieu of the security that may be
23 required by this Section of a taxpayer who is no longer
24 considered a prior continuous compliance taxpayer. The
25 execution of the payment agreement as provided in this Act
26 shall not toll the accrual of interest at the statutory rate.
HB2755 Enrolled - 991 - LRB104 08253 BDA 18303 b
1 The Department may suspend a certificate of registration
2 if the Department finds that the person to whom the
3 certificate of registration has been issued knowingly sold
4 contraband cigarettes.
5 A certificate of registration issued under this Act more
6 than 5 years before January 1, 1990 (the effective date of
7 Public Act 86-383) shall expire and be subject to the renewal
8 provisions of this Section on the next anniversary of the date
9 of issuance of such certificate which occurs more than 6
10 months after January 1, 1990 (the effective date of Public Act
11 86-383). A certificate of registration issued less than 5
12 years before January 1, 1990 (the effective date of Public Act
13 86-383) shall expire and be subject to the renewal provisions
14 of this Section on the 5th anniversary of the issuance of the
15 certificate.
16 If the person so registered states that he operates other
17 places of business from which he engages in the business of
18 selling tangible personal property at retail in this State,
19 the Department shall furnish him with a sub-certificate of
20 registration for each such place of business, and the
21 applicant shall display the appropriate sub-certificate of
22 registration at each such place of business. All
23 sub-certificates of registration shall bear the same
24 registration number as that appearing upon the certificate of
25 registration to which such sub-certificates relate.
26 If the applicant will sell tangible personal property at
HB2755 Enrolled - 992 - LRB104 08253 BDA 18303 b
1 retail through vending machines, the Department shall furnish
2 him with a sub-certificate of registration for each such
3 vending machine, and the applicant shall display the
4 appropriate sub-certificate of registration on each such
5 vending machine by attaching the sub-certificate of
6 registration to a conspicuous part of such vending machine. If
7 a person who is registered to sell tangible personal property
8 at retail through vending machines adds an additional vending
9 machine or additional vending machines to the number of
10 vending machines he or she uses in his or her business of
11 selling tangible personal property at retail, he or she shall
12 notify the Department, on a form prescribed by the Department,
13 to request an additional sub-certificate or additional
14 sub-certificates of registration, as applicable. With each
15 such request, the applicant shall report the number of
16 sub-certificates of registration he or she is requesting as
17 well as the total number of vending machines from which he or
18 she makes retail sales.
19 Where the same person engages in 2 or more businesses of
20 selling tangible personal property at retail in this State,
21 which businesses are substantially different in character or
22 engaged in under different trade names or engaged in under
23 other substantially dissimilar circumstances (so that it is
24 more practicable, from an accounting, auditing or bookkeeping
25 standpoint, for such businesses to be separately registered),
26 the Department may require or permit such person (subject to
HB2755 Enrolled - 993 - LRB104 08253 BDA 18303 b
1 the same requirements concerning the furnishing of security as
2 those that are provided for hereinbefore in this Section as to
3 each application for a certificate of registration) to apply
4 for and obtain a separate certificate of registration for each
5 such business or for any of such businesses, under a single
6 certificate of registration supplemented by related
7 sub-certificates of registration.
8 Any person who is registered under the Retailers'
9 Occupation Tax Act as of March 8, 1963, and who, during the
10 3-year period immediately prior to March 8, 1963, or during a
11 continuous 3-year period part of which passed immediately
12 before and the remainder of which passes immediately after
13 March 8, 1963, has been so registered continuously and who is
14 determined by the Department not to have been either
15 delinquent or deficient in the payment of tax liability during
16 that period under this Act or under any other State tax law or
17 municipal or county tax ordinance or resolution under which
18 the certificate of registration that is issued to the
19 registrant under this Act will permit the registrant to engage
20 in business without registering separately under such other
21 law, ordinance or resolution, shall be considered to be a
22 Prior Continuous Compliance taxpayer. Also any taxpayer who
23 has, as verified by the Department, faithfully and
24 continuously complied with the condition of his bond or other
25 security under the provisions of this Act for a period of 3
26 consecutive years shall be considered to be a Prior Continuous
HB2755 Enrolled - 994 - LRB104 08253 BDA 18303 b
1 Compliance taxpayer.
2 Every Prior Continuous Compliance taxpayer shall be exempt
3 from all requirements under this Act concerning the furnishing
4 of a bond or other security as a condition precedent to his
5 being authorized to engage in the business of selling tangible
6 personal property at retail in this State. This exemption
7 shall continue for each such taxpayer until such time as he may
8 be determined by the Department to be delinquent in the filing
9 of any returns, or is determined by the Department (either
10 through the Department's issuance of a final assessment which
11 has become final under the Act, or by the taxpayer's filing of
12 a return which admits tax that is not paid to be due) to be
13 delinquent or deficient in the paying of any tax under this Act
14 or under any other State tax law or municipal or county tax
15 ordinance or resolution under which the certificate of
16 registration that is issued to the registrant under this Act
17 will permit the registrant to engage in business without
18 registering separately under such other law, ordinance or
19 resolution, at which time that taxpayer shall become subject
20 to all the financial responsibility requirements of this Act
21 and, as a condition of being allowed to continue to engage in
22 the business of selling tangible personal property at retail,
23 may be required to post bond or other acceptable security with
24 the Department covering liability which such taxpayer may
25 thereafter incur. Any taxpayer who fails to pay an admitted or
26 established liability under this Act may also be required to
HB2755 Enrolled - 995 - LRB104 08253 BDA 18303 b
1 post bond or other acceptable security with this Department
2 guaranteeing the payment of such admitted or established
3 liability.
4 No certificate of registration shall be issued to any
5 person who is in default to the State of Illinois for moneys
6 due under this Act or under any other State tax law or
7 municipal or county tax ordinance or resolution under which
8 the certificate of registration that is issued to the
9 applicant under this Act will permit the applicant to engage
10 in business without registering separately under such other
11 law, ordinance or resolution.
12 Any person aggrieved by any decision of the Department
13 under this Section may, within 20 days after notice of such
14 decision, protest and request a hearing, whereupon the
15 Department shall give notice to such person of the time and
16 place fixed for such hearing and shall hold a hearing in
17 conformity with the provisions of this Act and then issue its
18 final administrative decision in the matter to such person. In
19 the absence of such a protest within 20 days, the Department's
20 decision shall become final without any further determination
21 being made or notice given.
22 With respect to security other than bonds (upon which the
23 Department may sue in the event of a forfeiture), if the
24 taxpayer fails to pay, when due, any amount whose payment such
25 security guarantees, the Department shall, after such
26 liability is admitted by the taxpayer or established by the
HB2755 Enrolled - 996 - LRB104 08253 BDA 18303 b
1 Department through the issuance of a final assessment that has
2 become final under the law, convert the security which that
3 taxpayer has furnished into money for the State, after first
4 giving the taxpayer at least 10 days' written notice, by
5 registered or certified mail, to pay the liability or forfeit
6 such security to the Department. If the security consists of
7 stocks or bonds or other securities which are listed on a
8 public exchange, the Department shall sell such securities
9 through such public exchange. If the security consists of an
10 irrevocable bank letter of credit, the Department shall
11 convert the security in the manner provided for in the Uniform
12 Commercial Code. If the security consists of a bank
13 certificate of deposit, the Department shall convert the
14 security into money by demanding and collecting the amount of
15 such bank certificate of deposit from the bank which issued
16 such certificate. If the security consists of a type of stocks
17 or other securities which are not listed on a public exchange,
18 the Department shall sell such security to the highest and
19 best bidder after giving at least 10 days' notice of the date,
20 time and place of the intended sale by publication in the
21 "State Official Newspaper". If the Department realizes more
22 than the amount of such liability from the security, plus the
23 expenses incurred by the Department in converting the security
24 into money, the Department shall pay such excess to the
25 taxpayer who furnished such security, and the balance shall be
26 paid into the State Treasury.
HB2755 Enrolled - 997 - LRB104 08253 BDA 18303 b
1 The Department shall discharge any surety and shall
2 release and return any security deposited, assigned, pledged
3 or otherwise provided to it by a taxpayer under this Section
4 within 30 days after:
5 (1) such taxpayer becomes a Prior Continuous
6 Compliance taxpayer; or
7 (2) such taxpayer has ceased to collect receipts on
8 which he is required to remit tax to the Department, has
9 filed a final tax return, and has paid to the Department an
10 amount sufficient to discharge his remaining tax
11 liability, as determined by the Department, under this Act
12 and under every other State tax law or municipal or county
13 tax ordinance or resolution under which the certificate of
14 registration issued under this Act permits the registrant
15 to engage in business without registering separately under
16 such other law, ordinance or resolution. The Department
17 shall make a final determination of the taxpayer's
18 outstanding tax liability as expeditiously as possible
19 after his final tax return has been filed; if the
20 Department cannot make such final determination within 45
21 days after receiving the final tax return, within such
22 period it shall so notify the taxpayer, stating its
23 reasons therefor.
24 (Source: P.A. 102-40, eff. 6-25-21; 103-319, eff. 1-1-24;
25 103-592, eff. 1-1-25.)
HB2755 Enrolled - 998 - LRB104 08253 BDA 18303 b
1 Section 40-15. The Cigarette Machine Operators' Occupation
2 Tax Act is amended by changing Section 1-40 as follows:
3 (35 ILCS 128/1-40)
4 Sec. 1-40. Returns.
5 (a) Cigarette machine operators shall file a return and
6 remit the tax imposed by Section 1-10 by the 15th day of each
7 month covering the preceding calendar month. Each such return
8 shall show: the quantity of cigarettes made or fabricated
9 during the period covered by the return; the beginning and
10 ending meter reading for each cigarette machine for the period
11 covered by the return; the quantity of such cigarettes sold or
12 otherwise disposed of during the period covered by the return;
13 the brand family and manufacturer and quantity of tobacco
14 products used to make or fabricate cigarettes by use of a
15 cigarette machine; the license number of each distributor from
16 whom tobacco products are purchased; the type and quantity of
17 cigarette tubes purchased for use in a cigarette machine; the
18 type and quantity of cigarette tubes used in a cigarette
19 machine; and such other information as the Department may
20 require. All returns and supporting schedules required to be
21 filed under this Section and all payments required to be made
22 under this Section shall be by electronic means in the form
23 prescribed by the Department. Such returns shall be filed on
24 forms prescribed and furnished by the Department. The
25 Department may promulgate rules to require that the cigarette
HB2755 Enrolled - 999 - LRB104 08253 BDA 18303 b
1 machine operator's return be accompanied by appropriate
2 computer-generated magnetic media supporting schedule data in
3 the format required by the Department, unless, as provided by
4 rule, the Department grants an exception upon petition of a
5 cigarette machine operator.
6 Cigarette machine operators shall send a copy of those
7 returns, together with supporting schedule data, to the
8 Attorney General's Office by the 15th day of each month for the
9 period covering the preceding calendar month.
10 (b) Cigarette machine operators may take a credit against
11 any tax due under Section 1-10 of this Act for taxes imposed
12 and paid under the Tobacco Products Tax Act of 1995 on tobacco
13 products sold to a customer and used in a rolling machine
14 located at the cigarette machine operator's place of business.
15 To be eligible for such credit, the tobacco product must meet
16 the requirements of subsection (a) of Section 1-25 of this
17 Act. This subsection (b) is exempt from the provisions of
18 Section 1-155 of this Act.
19 (c) If any payment provided for in this Section exceeds
20 the cigarette machine operator's liabilities under this Act,
21 as shown on an original return, the cigarette machine operator
22 may credit such excess payment against liability subsequently
23 to be remitted to the Department under this Act, in accordance
24 with reasonable rules adopted by the Department.
25 (Source: P.A. 100-1171, eff. 1-4-19.)
HB2755 Enrolled - 1000 - LRB104 08253 BDA 18303 b
1 Section 40-20. The Cigarette Tax Act is amended by
2 changing Sections 4b, 9, 9e, and 9f as follows:
3 (35 ILCS 130/4b) (from Ch. 120, par. 453.4b)
4 Sec. 4b. (a) The Department may, in its discretion, upon
5 application, issue permits authorizing the payment of the tax
6 herein imposed by out-of-State cigarette manufacturers who are
7 not required to be licensed as distributors of cigarettes in
8 this State, but who elect to qualify under this Act as
9 distributors of cigarettes in this State, and who, to the
10 satisfaction of the Department, furnish adequate security to
11 insure payment of the tax, provided that any such permit shall
12 extend only to cigarettes which such permittee manufacturer
13 places in original packages that are contained inside a sealed
14 transparent wrapper. Such permits shall be issued without
15 charge in such form as the Department may prescribe and shall
16 not be transferable or assignable.
17 The following are ineligible to receive a distributor's
18 permit under this subsection:
19 (1) a person who is not of good character and
20 reputation in the community in which he resides; the
21 Department may consider past conviction of a felony but
22 the conviction shall not operate as an absolute bar to
23 receiving a permit;
24 (2) a person who has been convicted of a felony under
25 any Federal or State law, if the Department, after
HB2755 Enrolled - 1001 - LRB104 08253 BDA 18303 b
1 investigation and a hearing and consideration of
2 mitigating factors and evidence of rehabilitation
3 contained in the applicant's record, including those in
4 Section 4i of this Act, determines that such person has
5 not been sufficiently rehabilitated to warrant the public
6 trust and the conviction will impair the ability of the
7 person to engage in the position for which a permit is
8 sought;
9 (3) a corporation, if any officer, manager or director
10 thereof, or any stockholder or stockholders owning in the
11 aggregate more than 5% of the stock of such corporation,
12 would not be eligible to receive a permit under this Act
13 for any reason.
14 With respect to cigarettes which come within the scope of
15 such a permit and which any such permittee delivers or causes
16 to be delivered in Illinois to licensed distributors, such
17 permittee shall remit the tax imposed by this Act at the times
18 provided for in Section 3 of this Act. Each such remittance
19 shall be accompanied by a return filed with the Department on a
20 form to be prescribed and furnished by the Department and
21 shall disclose such information as the Department may lawfully
22 require. Information that the Department may lawfully require
23 includes information related to the uniform regulation and
24 taxation of cigarettes. All returns and supporting schedules
25 required to be filed under this Section and all payments
26 required to be made under this Section shall be by electronic
HB2755 Enrolled - 1002 - LRB104 08253 BDA 18303 b
1 means in the form prescribed by the Department. The Department
2 may promulgate rules to require that the permittee's return be
3 accompanied by appropriate computer-generated magnetic media
4 supporting schedule data in the format prescribed by the
5 Department, unless, as provided by rule, the Department grants
6 an exception upon petition of the permittee. Each such return
7 shall be accompanied by a copy of each invoice rendered by the
8 permittee to any licensed distributor to whom the permittee
9 delivered cigarettes of the type covered by the permit (or
10 caused cigarettes of the type covered by the permit to be
11 delivered) in Illinois during the period covered by such
12 return.
13 Such permit may be suspended, canceled or revoked when, at
14 any time, the Department considers that the security given is
15 inadequate, or that such tax can more effectively be collected
16 from distributors located in this State, or whenever the
17 permittee violates any provision of this Act or any lawful
18 rule or regulation issued by the Department pursuant to this
19 Act or is determined to be ineligible for a distributor's
20 permit under this Act as provided in this Section, whenever
21 the permittee shall notify the Department in writing of his
22 desire to have the permit canceled. The Department shall have
23 the power, in its discretion, to issue a new permit after such
24 suspension, cancellation or revocation, except when the person
25 who would receive the permit is ineligible to receive a
26 distributor's permit under this Act.
HB2755 Enrolled - 1003 - LRB104 08253 BDA 18303 b
1 All permits issued by the Department under this Act shall
2 be valid for not to exceed one year after issuance unless
3 sooner revoked, canceled or suspended as in this Act provided.
4 (b) Out-of-state cigarette manufacturers who are not
5 required to be licensed as distributors of cigarettes in this
6 State and who do not elect to obtain approval under subsection
7 4b(a) to pay the tax imposed by this Act, but who elect to
8 qualify under this Act as distributors of cigarettes in this
9 State for purposes of shipping and delivering unstamped
10 original packages of cigarettes into this State to licensed
11 distributors, shall obtain a permit from the Department. These
12 permits shall be issued without charge in such form as the
13 Department may prescribe and shall not be transferable or
14 assignable.
15 The following are ineligible to receive a distributor's
16 permit under this subsection:
17 (1) a person who is not of good character and
18 reputation in the community in which he or she resides;
19 the Department may consider past conviction of a felony
20 but the conviction shall not operate as an absolute bar to
21 receiving a permit;
22 (2) a person who has been convicted of a felony under
23 any federal or State law, if the Department, after
24 investigation and a hearing and consideration of
25 mitigating factors and evidence of rehabilitation
26 contained in the applicant's record, including those set
HB2755 Enrolled - 1004 - LRB104 08253 BDA 18303 b
1 forth in Section 4i of this Act, determines that the
2 person has not been sufficiently rehabilitated to warrant
3 the public trust and the conviction will impair the
4 ability of the person to engage in the position for which a
5 permit is sought; and
6 (3) a corporation, if any officer, manager, or
7 director thereof, or any stockholder or stockholders
8 owning in the aggregate more than 5% of the stock of the
9 corporation, would not be eligible to receive a permit
10 under this Act for any reason.
11 With respect to original packages of cigarettes that such
12 permittee delivers or causes to be delivered in Illinois and
13 distributes to the public for promotional purposes without
14 consideration, the permittee shall pay the tax imposed by this
15 Act by remitting the amount thereof to the Department by the
16 5th day of each month covering cigarettes shipped or otherwise
17 delivered in Illinois for those purposes during the preceding
18 calendar month. The permittee, before delivering those
19 cigarettes or causing those cigarettes to be delivered in this
20 State, shall evidence his or her obligation to remit the taxes
21 due with respect to those cigarettes by imprinting language to
22 be prescribed by the Department on each original package of
23 cigarettes, in such place thereon and in such manner also to be
24 prescribed by the Department. The imprinted language shall
25 acknowledge the permittee's payment of or liability for the
26 tax imposed by this Act with respect to the distribution of
HB2755 Enrolled - 1005 - LRB104 08253 BDA 18303 b
1 those cigarettes.
2 With respect to cigarettes that the permittee delivers or
3 causes to be delivered in Illinois to Illinois licensed
4 distributors or distributed to the public for promotional
5 purposes, the permittee shall, by the 5th day of each month,
6 file with the Department, a report covering cigarettes shipped
7 or otherwise delivered in Illinois to licensed distributors or
8 distributed to the public for promotional purposes during the
9 preceding calendar month on a form to be prescribed and
10 furnished by the Department and shall disclose such other
11 information as the Department may lawfully require.
12 Information that the Department may lawfully require includes
13 information related to the uniform regulation and taxation of
14 cigarettes. All reports and supporting schedules required to
15 be filed under this Section shall be filed electronically in
16 the form prescribed by the Department. The Department may
17 promulgate rules to require that the permittee's report be
18 accompanied by appropriate computer-generated magnetic media
19 supporting schedule data in the format prescribed by the
20 Department, unless, as provided by rule, the Department grants
21 an exception upon petition of the permittee. Each such report
22 shall be accompanied by a copy of each invoice rendered by the
23 permittee to any purchaser to whom the permittee delivered
24 cigarettes of the type covered by the permit (or caused
25 cigarettes of the type covered by the permit to be delivered)
26 in Illinois during the period covered by such report.
HB2755 Enrolled - 1006 - LRB104 08253 BDA 18303 b
1 Such permit may be suspended, canceled, or revoked
2 whenever the permittee violates any provision of this Act or
3 any lawful rule or regulation issued by the Department
4 pursuant to this Act, is determined to be ineligible for a
5 distributor's permit under this Act as provided in this
6 Section, or notifies the Department in writing of his or her
7 desire to have the permit canceled. The Department shall have
8 the power, in its discretion, to issue a new permit after such
9 suspension, cancellation, or revocation, except when the
10 person who would receive the permit is ineligible to receive a
11 distributor's permit under this Act.
12 All permits issued by the Department under this Act shall
13 be valid for a period not to exceed one year after issuance
14 unless sooner revoked, canceled, or suspended as provided in
15 this Act.
16 (Source: P.A. 103-592, eff. 1-1-25.)
17 (35 ILCS 130/9) (from Ch. 120, par. 453.9)
18 Sec. 9. Returns; remittance. Every distributor who is
19 required to procure a license under this Act, but who is not a
20 manufacturer of cigarettes in original packages which are
21 contained in a sealed transparent wrapper, shall, on or before
22 the 15th day of each calendar month, file a return with the
23 Department, showing the quantity of cigarettes manufactured
24 during the preceding calendar month, the quantity of
25 cigarettes brought into this State or caused to be brought
HB2755 Enrolled - 1007 - LRB104 08253 BDA 18303 b
1 into this State from outside this State during the preceding
2 calendar month without authorized evidence on the original
3 packages of such cigarettes underneath the sealed transparent
4 wrapper thereof that the tax liability imposed by this Act has
5 been assumed by the out-of-State seller of such cigarettes,
6 the quantity of cigarettes purchased tax-paid during the
7 preceding calendar month either within or outside this State,
8 the quantity of cigarettes sold by manufacturer
9 representatives on behalf of the distributor, the quantity of
10 cigarettes sold to manufacturer representatives, and the
11 quantity of cigarettes sold or otherwise disposed of during
12 the preceding calendar month. Such return shall be filed upon
13 forms furnished and prescribed by the Department and shall
14 contain such other information as the Department may
15 reasonably require. Information that the Department may
16 reasonably require includes information related to the uniform
17 regulation and taxation of cigarettes. All returns and
18 supporting schedules required to be filed under this Section
19 and all payments required to be made under this Section shall
20 be by electronic means in the form prescribed by the
21 Department. The Department may promulgate rules to require
22 that the distributor's return be accompanied by appropriate
23 computer-generated magnetic media supporting schedule data in
24 the format required by the Department, unless, as provided by
25 rule, the Department grants an exception upon petition of a
26 distributor.
HB2755 Enrolled - 1008 - LRB104 08253 BDA 18303 b
1 Illinois manufacturers of cigarettes in original packages
2 which are contained inside a sealed transparent wrapper shall
3 file a return by the 5th day of each month covering the
4 preceding calendar month. Each such return shall be
5 accompanied by the appropriate remittance for tax as provided
6 in Section 3 of this Act. Each such return shall show the
7 quantity of such cigarettes manufactured during the period
8 covered by the return, the quantity of cigarettes sold or
9 otherwise disposed of during the period covered by the return
10 and such other information as the Department may lawfully
11 require. Information that the Department may lawfully require
12 includes information related to the uniform regulation and
13 taxation of cigarettes. All returns and supporting schedules
14 required to be filed under this Section and all payments
15 required to be made under this Section shall be by electronic
16 means in the form prescribed Such returns shall be filed on
17 forms prescribed and furnished by the Department. Each such
18 return shall be accompanied by a copy of each invoice rendered
19 by such manufacturer to any purchaser to whom such
20 manufacturer delivered cigarettes (or caused cigarettes to be
21 delivered) during the period covered by the return. The
22 Department may promulgate rules to require that the
23 manufacturer's return be accompanied by appropriate
24 computer-generated magnetic media supporting schedule data in
25 the format required by the Department, unless, as provided by
26 rule, the Department grants an exception upon petition of a
HB2755 Enrolled - 1009 - LRB104 08253 BDA 18303 b
1 manufacturer.
2 (Source: P.A. 103-592, eff. 1-1-25.)
3 (35 ILCS 130/9e)
4 Sec. 9e. Secondary distributors; reports. Every secondary
5 distributor who is required to procure a license under this
6 Act shall, on or before the 15th day of each calendar month,
7 file a report with the Department, showing the quantity of
8 cigarettes purchased during the preceding calendar month
9 either within or outside this State, and the quantity of
10 cigarettes sold to retailers or otherwise disposed of during
11 the preceding calendar month. Such reports shall be filed
12 electronically in such form prescribed by the Department and
13 shall contain such other information as the Department may
14 reasonably require. Information that the Department may
15 reasonably require includes information related to the uniform
16 regulation and taxation of cigarettes. The secondary
17 distributor's report shall be accompanied by appropriate
18 computer generated magnetic media supporting schedule data in
19 the format required by the Department, unless, as provided by
20 rule, the Department grants an exception upon petition of a
21 secondary distributor.
22 A certification by the Director of the Department that a
23 report has not been filed, or that information has not been
24 supplied pursuant to the provisions of this Act, shall be
25 prima facie evidence thereof.
HB2755 Enrolled - 1010 - LRB104 08253 BDA 18303 b
1 (Source: P.A. 103-592, eff. 1-1-25.)
2 (35 ILCS 130/9f)
3 Sec. 9f. Manufacturer representatives; reports. Every
4 manufacturer with authority to maintain manufacturer
5 representatives as defined by Section 4f of this Act shall, on
6 or before the 15th day of each calendar month, file a report
7 with the Department, showing the quantity of cigarettes
8 purchased from licensed distributors during the preceding
9 calendar month, either within or outside this State, and the
10 quantity of cigarettes sold to retailers or otherwise disposed
11 of during the preceding calendar month. Such reports shall be
12 filed in the form prescribed by the Department and shall
13 contain such other information as the Department may
14 reasonably require. Information that the Department may
15 reasonably require includes information related to the uniform
16 regulation and taxation of cigarettes. The report and
17 supporting schedules shall be filed electronically in the form
18 prescribed by the Department and be accompanied by appropriate
19 computer generated magnetic media supporting schedule data in
20 the format required by the Department, unless, as provided by
21 rule, the Department grants an exception upon petition of a
22 manufacturer with authority to maintain manufacturer
23 representatives in this State.
24 A certification by the Director of the Department that a
25 report has not been filed, or that information has not been
HB2755 Enrolled - 1011 - LRB104 08253 BDA 18303 b
1 supplied pursuant to the provisions of this Act, shall be
2 prima facie evidence thereof.
3 (Source: P.A. 103-592, eff. 1-1-25.)
4 Section 40-25. The Cigarette Use Tax Act is amended by
5 changing Sections 11, 11a, and 12 as follows:
6 (35 ILCS 135/11) (from Ch. 120, par. 453.41)
7 Sec. 11. Return by distributor or manufacturer. Every
8 distributor, who is required or authorized to collect tax
9 under this Act, but who is not a manufacturer of cigarettes in
10 original packages which are contained in a sealed transparent
11 wrapper, shall, on or before the 15th day of each calendar
12 month, file a return with the Department, showing such
13 information as the Department may reasonably require.
14 Information that the Department may reasonably require
15 includes information related to the uniform regulation and
16 taxation of cigarettes. All returns and supporting schedules
17 required to be filed under this Section shall be filed
18 electronically in the form prescribed by the Department. The
19 Department may promulgate rules to require that the
20 distributor's return be accompanied by appropriate
21 computer-generated magnetic media supporting schedule data in
22 the format required by the Department, unless, as provided by
23 rule, the Department grants an exception upon petition of a
24 distributor.
HB2755 Enrolled - 1012 - LRB104 08253 BDA 18303 b
1 Illinois manufacturers of cigarettes in original packages
2 which are contained inside a sealed transparent wrapper shall
3 file a return by the 5th day of each month covering the
4 preceding calendar month. Each such return shall be
5 accompanied by the appropriate remittance for tax as provided
6 in Section 3 of this Act. Each such return shall disclose such
7 information as the Department may lawfully require.
8 Information that the Department may lawfully require includes
9 information related to the uniform regulation and taxation of
10 cigarettes. All returns and supporting schedules required to
11 be filed under this Section and all payments required to be
12 made under this Section shall be by electronic means in the
13 form prescribed by the Department. Each such return shall be
14 accompanied by a copy of each invoice rendered by such
15 manufacturer to any purchaser to whom such manufacturer
16 delivered cigarettes (or caused cigarettes to be delivered)
17 during the period covered by the return. The Department may
18 promulgate rules to require that the manufacturer's return be
19 accompanied by appropriate computer-generated magnetic media
20 supporting schedule data in the format required by the
21 Department, unless, as provided by rule, the Department grants
22 an exception upon petition of a manufacturer.
23 No distributor shall be required to return information to
24 the extent to which the reporting of such information would be
25 a duplication of such distributor's reporting of information
26 in any return which he is required to file with the Department
HB2755 Enrolled - 1013 - LRB104 08253 BDA 18303 b
1 under the Cigarette Tax Act. Returns shall be filed on forms
2 prescribed by the Department.
3 (Source: P.A. 103-592, eff. 1-1-25.)
4 (35 ILCS 135/11a)
5 Sec. 11a. Secondary distributors; reports. Every secondary
6 distributor who is required to procure, or is authorized to
7 procure, a license under this Act shall, on or before the 15th
8 day of each calendar month, file a report with the Department,
9 showing the quantity of cigarettes purchased during the
10 preceding calendar month either within or outside this State,
11 and the quantity of cigarettes sold to Illinois retailers or
12 otherwise disposed of during the preceding calendar month.
13 Such reports shall be filed electronically in such form
14 prescribed by the Department and shall contain such other
15 information as the Department may reasonably require.
16 Information that the Department may reasonably require
17 includes information related to the uniform regulation and
18 taxation of cigarettes. The secondary distributor's report
19 shall be accompanied by appropriate computer generated
20 magnetic media supporting schedule data in the format required
21 by the Department, unless, as provided by rule, the Department
22 grants an exception upon petition of a secondary distributor.
23 A certification by the Director of the Department that a
24 report has not been filed, or that information has not been
25 supplied pursuant to the provisions of this Act, shall be
HB2755 Enrolled - 1014 - LRB104 08253 BDA 18303 b
1 prima facie evidence thereof.
2 (Source: P.A. 103-592, eff. 1-1-25.)
3 (35 ILCS 135/12) (from Ch. 120, par. 453.42)
4 Sec. 12. Declaration of possession of cigarettes on which
5 tax not paid.
6 (a) When cigarettes are acquired for use in this State by a
7 person (including a distributor as well as any other person),
8 who did not pay the tax herein imposed to a distributor, the
9 person, within 30 days after acquiring the cigarettes, shall
10 file with the Department a return declaring the possession of
11 the cigarettes and shall transmit with the return to the
12 Department the tax imposed by this Act. All returns and
13 supporting schedules required to be filed under this Section
14 and all payments required to be made under this Section shall
15 be by electronic means in the form prescribed by the
16 Department.
17 (b) On receipt of the return and payment of the tax as
18 required by paragraph (a), the Department may furnish the
19 person with a suitable tax stamp to be affixed to the package
20 of cigarettes upon which the tax has been paid if the
21 Department determines that the cigarettes still exist.
22 (c) The return referred to in paragraph (a) shall contain
23 the name and address of the person possessing the cigarettes
24 involved, the location of the cigarettes and the quantity,
25 brand name, place, and date of the acquisition of the
HB2755 Enrolled - 1015 - LRB104 08253 BDA 18303 b
1 cigarettes.
2 (d) Nothing in this Section shall permit a secondary
3 distributor to purchase unstamped original packages of
4 cigarettes or to purchase original packages of cigarettes from
5 a person other than a licensed distributor.
6 (e) Any distributor who violates this Section is liable to
7 pay to the Department, for deposit in the Tax Compliance and
8 Administration Fund, a penalty of $1,000 for the first
9 violation and $3,000 for any subsequent violation. The
10 Department may adopt rules to administer the penalties under
11 this Section. The Department may, in addition to the penalties
12 imposed by this Section, and any other civil or criminal
13 penalties provided for in this Act, assess tax, penalty, and
14 interest on the original packages of cigarettes.
15 (Source: P.A. 100-940, eff. 8-17-18.)
16 Section 40-30. The Tobacco Products Tax Act of 1995 is
17 amended by changing Section 10-30 as follows:
18 (35 ILCS 143/10-30)
19 Sec. 10-30. Returns.
20 (a) Every distributor shall, on or before the 15th day of
21 each month, file a return with the Department covering the
22 preceding calendar month. The return shall disclose the
23 wholesale price for all tobacco products other than moist
24 snuff and the quantity in ounces of moist snuff sold or
HB2755 Enrolled - 1016 - LRB104 08253 BDA 18303 b
1 otherwise disposed of and other information that the
2 Department may reasonably require. Information that the
3 Department may reasonably require includes information related
4 to the uniform regulation and taxation of tobacco products.
5 The return shall be filed upon a form prescribed and furnished
6 by the Department.
7 (b) In addition to the information required under
8 subsection (a), on or before the 15th day of each month,
9 covering the preceding calendar month, each stamping
10 distributor shall, on forms prescribed and furnished by the
11 Department, report the quantity of little cigars sold or
12 otherwise disposed of, including the number of packages of
13 little cigars sold or disposed of during the month containing
14 20 or 25 little cigars.
15 (c) At the time when any return of any distributor is due
16 to be filed with the Department, the distributor shall also
17 remit to the Department the tax liability that the distributor
18 has incurred for transactions occurring in the preceding
19 calendar month.
20 (d) All returns and supporting schedules required to be
21 filed under this Section and all payments required to be made
22 under this Section shall be by electronic means in the form
23 prescribed by the Department. The Department may adopt rules
24 to require the electronic filing of any return or document
25 required to be filed under this Act. Those rules may provide
26 for exceptions from the filing requirement set forth in this
HB2755 Enrolled - 1017 - LRB104 08253 BDA 18303 b
1 paragraph for persons who demonstrate that they do not have
2 access to the Internet and petition the Department to waive
3 the electronic filing requirement.
4 (e) If any payment provided for in this Section exceeds
5 the distributor's liabilities under this Act, as shown on an
6 original return, the distributor may credit such excess
7 payment against liability subsequently to be remitted to the
8 Department under this Act, in accordance with reasonable rules
9 adopted by the Department.
10 (Source: P.A. 103-592, eff. 1-1-25.)
11 ARTICLE 47
12 Section 47-1. Short title. This Article may be cited as
13 the American Hostage Tax Liability Postponement Act.
14 References in this Article to "this Act" mean this Article.
15 Section 47-5. Definition. As used in this Act, "person"
16 means an individual who is: (i) a United States national who
17 has been unlawfully or wrongfully detained abroad, as
18 determined under 22 U.S.C. 1741; or (ii) a United States
19 national who has been taken hostage abroad, as determined
20 pursuant to the findings of the Hostage Recovery Fusion Cell,
21 as described in 22 U.S.C. 1741b.
22 Section 47-10. Tax liability postponed.
HB2755 Enrolled - 1018 - LRB104 08253 BDA 18303 b
1 (a) During the period during which a person was unlawfully
2 or wrongfully detained abroad or held hostage abroad, any tax
3 liability of that person shall be postponed until 90 days
4 after the person is no longer unlawfully or wrongfully
5 detained or held hostage abroad. The person shall be exempt
6 from paying any interest or penalty that accrues while the tax
7 liability is postponed. Notwithstanding any provision of law
8 to the contrary, property owned by such a person shall not be
9 sold for taxes pursuant to Section 21-205 of the Property Tax
10 Code during the period that the tax liability is postponed.
11 (b) The provisions of subsection (a) of this Section shall
12 also apply to the spouse of any person who is entitled to the
13 benefits under subsection (a)
14 Section 47-15. Applicability. The provisions of this Act
15 apply to any tax liability owed to the State or any unit of
16 local government including, but not limited to, any tax
17 liability owed under the Illinois Income Tax Act or the
18 Property Tax Code.
19 Section 47-20. Rules. The Department of Revenue may adopt
20 rules to implement this Act.
21 Section 47-25. Local implementation. The corporate
22 authorities of any unit of local government may adopt any
23 ordinance or resolution necessary to implement this Act.
HB2755 Enrolled - 1019 - LRB104 08253 BDA 18303 b
1 County treasurers may adopt any rule or policy necessary to
2 implement this Act.
3 Section 47-30. Home rule preemption. This Act is a denial
4 and limitation of home rule powers and functions in accordance
5 with subsection (i) of Section 6 of Article VII of the Illinois
6 Constitution. A home rule unit may not impose any tax
7 liability, or any interest or penalty thereof, inconsistent
8 with this Act.
9 Section 47-35. Act to be liberally construed. This Act and
10 the rules adopted under this Act shall be liberally construed
11 to the end that tax liabilities of applicable individuals
12 shall be postponed and no interest or penalty shall be accrued
13 during the period that a person was unlawfully or wrongfully
14 detained abroad or held hostage abroad.
15 Section 47-40. Severability. If a provision of this Act or
16 its application to a person or circumstance is held invalid,
17 the invalidity does not affect another provision or
18 application that can be given effect without the invalid
19 provision.
20 ARTICLE 50
21 Section 50-905. The Illinois Finance Authority Act is
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1 amended by changing Sections 801-10, 801-40, and 850-10 as
2 follows:
3 (20 ILCS 3501/801-10)
4 Sec. 801-10. Definitions. The following terms, whenever
5 used or referred to in this Act, shall have the following
6 meanings, except in such instances where the context may
7 clearly indicate otherwise:
8 (a) The term "Authority" means the Illinois Finance
9 Authority created by this Act.
10 (b) The term "project" means an industrial project, clean
11 energy project, conservation project, housing project, public
12 purpose project, higher education project, health facility
13 project, cultural institution project, municipal bond program
14 project, PACE Project, agricultural facility or agribusiness,
15 and "project" may include any combination of one or more of the
16 foregoing undertaken jointly by any person with one or more
17 other persons.
18 (c) The term "public purpose project" means (i) any
19 project or facility, including without limitation land,
20 buildings, structures, machinery, equipment and all other real
21 and personal property, which is authorized or required by law
22 to be acquired, constructed, improved, rehabilitated,
23 reconstructed, replaced or maintained by any unit of
24 government or any other lawful public purpose, including
25 provision of working capital, which is authorized or required
HB2755 Enrolled - 1021 - LRB104 08253 BDA 18303 b
1 by law to be undertaken by any unit of government or (ii) costs
2 incurred and other expenditures, including expenditures for
3 management, investment, or working capital costs, incurred in
4 connection with the reform, consolidation, or implementation
5 of the transition process as described in Articles 22B and 22C
6 of the Illinois Pension Code.
7 (d) The term "industrial project" means the acquisition,
8 construction, refurbishment, creation, development or
9 redevelopment of any facility, equipment, machinery, real
10 property or personal property for use by any instrumentality
11 of the State or its political subdivisions, for use by any
12 person or institution, public or private, for profit or not
13 for profit, or for use in any trade or business, including, but
14 not limited to, any industrial, manufacturing, clean energy,
15 or commercial enterprise that is located within or outside the
16 State, provided that, with respect to a project involving
17 property located outside the State, the property must be
18 owned, operated, leased or managed by an entity located within
19 the State or an entity affiliated with an entity located
20 within the State, and which is (1) a capital project or clean
21 energy project, including, but not limited to: (i) land and
22 any rights therein, one or more buildings, structures or other
23 improvements, machinery and equipment, whether now existing or
24 hereafter acquired, and whether or not located on the same
25 site or sites; (ii) all appurtenances and facilities
26 incidental to the foregoing, including, but not limited to,
HB2755 Enrolled - 1022 - LRB104 08253 BDA 18303 b
1 utilities, access roads, railroad sidings, track, docking and
2 similar facilities, parking facilities, dockage, wharfage,
3 railroad roadbed, track, trestle, depot, terminal, switching
4 and signaling or related equipment, site preparation and
5 landscaping; and (iii) all non-capital costs and expenses
6 relating thereto or (2) any addition to, renovation,
7 rehabilitation or improvement of a capital project or a clean
8 energy project, or (3) any activity or undertaking within or
9 outside the State, provided that, with respect to a project
10 involving property located outside the State, the property
11 must be owned, operated, leased or managed by an entity
12 located within the State or an entity affiliated with an
13 entity located within the State, which the Authority
14 determines will aid, assist or encourage economic growth,
15 development or redevelopment within the State or any area
16 thereof, will promote the expansion, retention or
17 diversification of employment opportunities within the State
18 or any area thereof or will aid in stabilizing or developing
19 any industry or economic sector of the State economy. The term
20 "industrial project" also means the production of motion
21 pictures.
22 (e) The term "bond" or "bonds" shall include bonds, notes
23 (including bond, grant or revenue anticipation notes),
24 certificates and/or other evidences of indebtedness
25 representing an obligation to pay money, including refunding
26 bonds.
HB2755 Enrolled - 1023 - LRB104 08253 BDA 18303 b
1 (f) The terms "lease agreement" and "loan agreement" shall
2 mean: (i) an agreement whereby a project acquired by the
3 Authority by purchase, gift or lease is leased to any person,
4 corporation or unit of local government which will use or
5 cause the project to be used as a project as heretofore defined
6 upon terms providing for lease rental payments at least
7 sufficient to pay when due all principal of, interest and
8 premium, if any, on any bonds of the Authority issued with
9 respect to such project, providing for the maintenance,
10 insuring and operation of the project on terms satisfactory to
11 the Authority, providing for disposition of the project upon
12 termination of the lease term, including purchase options or
13 abandonment of the premises, and such other terms as may be
14 deemed desirable by the Authority, or (ii) any agreement
15 pursuant to which the Authority agrees to loan the proceeds of
16 its bonds issued with respect to a project or other funds of
17 the Authority to any person which will use or cause the project
18 to be used as a project as heretofore defined or for any other
19 lawful purpose upon terms providing for loan repayment
20 installments at least sufficient to pay when due all principal
21 of, interest and premium, if any, on any bonds of the
22 Authority, if any, issued with respect to the project or for
23 any other lawful purpose, and providing for maintenance,
24 insurance and other matters as may be deemed desirable by the
25 Authority, or (iii) any financing or refinancing agreement
26 entered into by the Authority under subsection (aa) of Section
HB2755 Enrolled - 1024 - LRB104 08253 BDA 18303 b
1 801-40.
2 (g) The term "financial aid" means the expenditure of
3 Authority funds or funds provided by the Authority through the
4 issuance of its bonds, notes or other evidences of
5 indebtedness or from other sources for the development,
6 construction, acquisition or improvement of a project.
7 (h) The term "person" means an individual, corporation,
8 unit of government, business trust, estate, trust, partnership
9 or association, 2 or more persons having a joint or common
10 interest, or any other legal entity.
11 (i) The term "unit of government" means the federal
12 government, the State or unit of local government, a school
13 district, or any agency or instrumentality, office, officer,
14 department, division, bureau, commission, college or
15 university thereof.
16 (j) The term "health facility" means: (a) any public or
17 private institution, place, building, or agency required to be
18 licensed under the Hospital Licensing Act; (b) any public or
19 private institution, place, building, or agency required to be
20 licensed under the Nursing Home Care Act, the Specialized
21 Mental Health Rehabilitation Act of 2013, the ID/DD Community
22 Care Act, or the MC/DD Act; (c) any public or licensed private
23 hospital as defined in the Mental Health and Developmental
24 Disabilities Code; (d) any such facility exempted from such
25 licensure when the Director of Public Health attests that such
26 exempted facility meets the statutory definition of a facility
HB2755 Enrolled - 1025 - LRB104 08253 BDA 18303 b
1 subject to licensure; (e) any other public or private health
2 service institution, place, building, or agency which the
3 Director of Public Health attests is subject to certification
4 by the Secretary, U.S. Department of Health and Human Services
5 under the Social Security Act, as now or hereafter amended, or
6 which the Director of Public Health attests is subject to
7 standard-setting by a recognized public or voluntary
8 accrediting or standard-setting agency; (f) any public or
9 private institution, place, building or agency engaged in
10 providing one or more supporting services to a health
11 facility; (g) any public or private institution, place,
12 building or agency engaged in providing training in the
13 healing arts, including, but not limited to, schools of
14 medicine, dentistry, osteopathy, optometry, podiatry, pharmacy
15 or nursing, schools for the training of x-ray, laboratory or
16 other health care technicians and schools for the training of
17 para-professionals in the health care field; (h) any public or
18 private congregate, life or extended care or elderly housing
19 facility or any public or private home for the aged or infirm,
20 including, without limitation, any Facility as defined in the
21 Life Care Facilities Act; (i) any public or private mental,
22 emotional or physical rehabilitation facility or any public or
23 private educational, counseling, or rehabilitation facility or
24 home, for those persons with a developmental disability, those
25 who are physically ill or disabled, the emotionally disturbed,
26 those persons with a mental illness or persons with learning
HB2755 Enrolled - 1026 - LRB104 08253 BDA 18303 b
1 or similar disabilities or problems; (j) any public or private
2 alcohol, drug or substance abuse diagnosis, counseling
3 treatment or rehabilitation facility, (k) any public or
4 private institution, place, building or agency licensed by the
5 Department of Children and Family Services or which is not so
6 licensed but which the Director of Children and Family
7 Services attests provides child care, child welfare or other
8 services of the type provided by facilities subject to such
9 licensure; (l) any public or private adoption agency or
10 facility; and (m) any public or private blood bank or blood
11 center. "Health facility" also means a public or private
12 structure or structures suitable primarily for use as a
13 laboratory, laundry, nurses or interns residence or other
14 housing or hotel facility used in whole or in part for staff,
15 employees or students and their families, patients or
16 relatives of patients admitted for treatment or care in a
17 health facility, or persons conducting business with a health
18 facility, physician's facility, surgicenter, administration
19 building, research facility, maintenance, storage or utility
20 facility and all structures or facilities related to any of
21 the foregoing or required or useful for the operation of a
22 health facility, including parking or other facilities or
23 other supporting service structures required or useful for the
24 orderly conduct of such health facility. "Health facility"
25 also means, with respect to a project located outside the
26 State, any public or private institution, place, building, or
HB2755 Enrolled - 1027 - LRB104 08253 BDA 18303 b
1 agency which provides services similar to those described
2 above, provided that such project is owned, operated, leased
3 or managed by a participating health institution located
4 within the State, or a participating health institution
5 affiliated with an entity located within the State.
6 (k) The term "participating health institution" means (i)
7 a private corporation or association or (ii) a public entity
8 of this State, in either case authorized by the laws of this
9 State or the applicable state to provide or operate a health
10 facility as defined in this Act and which, pursuant to the
11 provisions of this Act, undertakes the financing, construction
12 or acquisition of a project or undertakes the refunding or
13 refinancing of obligations, loans, indebtedness or advances as
14 provided in this Act.
15 (l) The term "health facility project", means a specific
16 health facility work or improvement to be financed or
17 refinanced (including without limitation through reimbursement
18 of prior expenditures), acquired, constructed, enlarged,
19 remodeled, renovated, improved, furnished, or equipped, with
20 funds provided in whole or in part hereunder, any accounts
21 receivable, working capital, liability or insurance cost or
22 operating expense financing or refinancing program of a health
23 facility with or involving funds provided in whole or in part
24 hereunder, or any combination thereof.
25 (m) The term "bond resolution" means the resolution or
26 resolutions authorizing the issuance of, or providing terms
HB2755 Enrolled - 1028 - LRB104 08253 BDA 18303 b
1 and conditions related to, bonds issued under this Act and
2 includes, where appropriate, any trust agreement, trust
3 indenture, indenture of mortgage or deed of trust providing
4 terms and conditions for such bonds.
5 (n) The term "property" means any real, personal or mixed
6 property, whether tangible or intangible, or any interest
7 therein, including, without limitation, any real estate,
8 leasehold interests, appurtenances, buildings, easements,
9 equipment, furnishings, furniture, improvements, machinery,
10 rights of way, structures, accounts, contract rights or any
11 interest therein.
12 (o) The term "revenues" means, with respect to any
13 project, the rents, fees, charges, interest, principal
14 repayments, collections and other income or profit derived
15 therefrom.
16 (p) The term "higher education project" means, in the case
17 of a private institution of higher education, an educational
18 facility to be acquired, constructed, enlarged, remodeled,
19 renovated, improved, furnished, or equipped, or any
20 combination thereof.
21 (q) The term "cultural institution project" means, in the
22 case of a cultural institution, a cultural facility to be
23 acquired, constructed, enlarged, remodeled, renovated,
24 improved, furnished, or equipped, or any combination thereof.
25 (r) The term "educational facility" means any property
26 located within the State, or any property located outside the
HB2755 Enrolled - 1029 - LRB104 08253 BDA 18303 b
1 State, provided that, if the property is located outside the
2 State, it must be owned, operated, leased or managed by an
3 entity located within the State or an entity affiliated with
4 an entity located within the State, in each case constructed
5 or acquired before or after the effective date of this Act,
6 which is or will be, in whole or in part, suitable for the
7 instruction, feeding, recreation or housing of students, the
8 conducting of research or other work of a private institution
9 of higher education, the use by a private institution of
10 higher education in connection with any educational, research
11 or related or incidental activities then being or to be
12 conducted by it, or any combination of the foregoing,
13 including, without limitation, any such property suitable for
14 use as or in connection with any one or more of the following:
15 an academic facility, administrative facility, agricultural
16 facility, assembly hall, athletic facility, auditorium,
17 boating facility, campus, communication facility, computer
18 facility, continuing education facility, classroom, dining
19 hall, dormitory, exhibition hall, fire fighting facility, fire
20 prevention facility, food service and preparation facility,
21 gymnasium, greenhouse, health care facility, hospital,
22 housing, instructional facility, laboratory, library,
23 maintenance facility, medical facility, museum, offices,
24 parking area, physical education facility, recreational
25 facility, research facility, stadium, storage facility,
26 student union, study facility, theatre or utility.
HB2755 Enrolled - 1030 - LRB104 08253 BDA 18303 b
1 (s) The term "cultural facility" means any property
2 located within the State, or any property located outside the
3 State, provided that, if the property is located outside the
4 State, it must be owned, operated, leased or managed by an
5 entity located within the State or an entity affiliated with
6 an entity located within the State, in each case constructed
7 or acquired before or after the effective date of this Act,
8 which is or will be, in whole or in part, suitable for the
9 particular purposes or needs of a cultural institution,
10 including, without limitation, any such property suitable for
11 use as or in connection with any one or more of the following:
12 an administrative facility, aquarium, assembly hall,
13 auditorium, botanical garden, exhibition hall, gallery,
14 greenhouse, library, museum, scientific laboratory, theater or
15 zoological facility, and shall also include, without
16 limitation, books, works of art or music, animal, plant or
17 aquatic life or other items for display, exhibition or
18 performance. The term "cultural facility" includes buildings
19 on the National Register of Historic Places which are owned or
20 operated by nonprofit entities.
21 (t) "Private institution of higher education" means a
22 not-for-profit educational institution which is not owned by
23 the State or any political subdivision, agency,
24 instrumentality, district or municipality thereof, which is
25 authorized by law to provide a program of education beyond the
26 high school level and which:
HB2755 Enrolled - 1031 - LRB104 08253 BDA 18303 b
1 (1) Admits as regular students only individuals having
2 a certificate of graduation from a high school, or the
3 recognized equivalent of such a certificate;
4 (2) Provides an educational program for which it
5 awards a bachelor's degree, or provides an educational
6 program, admission into which is conditioned upon the
7 prior attainment of a bachelor's degree or its equivalent,
8 for which it awards a postgraduate degree, or provides not
9 less than a 2-year program which is acceptable for full
10 credit toward such a degree, or offers a 2-year program in
11 engineering, mathematics, or the physical or biological
12 sciences which is designed to prepare the student to work
13 as a technician and at a semiprofessional level in
14 engineering, scientific, or other technological fields
15 which require the understanding and application of basic
16 engineering, scientific, or mathematical principles or
17 knowledge;
18 (3) Is accredited by a nationally recognized
19 accrediting agency or association or, if not so
20 accredited, is an institution whose credits are accepted,
21 on transfer, by not less than 3 institutions which are so
22 accredited, for credit on the same basis as if transferred
23 from an institution so accredited, and holds an unrevoked
24 certificate of approval under the Private College Act from
25 the Board of Higher Education, or is qualified as a
26 "degree granting institution" under the Academic Degree
HB2755 Enrolled - 1032 - LRB104 08253 BDA 18303 b
1 Act; and
2 (4) Does not discriminate in the admission of students
3 on the basis of race or color. "Private institution of
4 higher education" also includes any "academic
5 institution".
6 (u) The term "academic institution" means any
7 not-for-profit institution which is not owned by the State or
8 any political subdivision, agency, instrumentality, district
9 or municipality thereof, which institution engages in, or
10 facilitates academic, scientific, educational or professional
11 research or learning in a field or fields of study taught at a
12 private institution of higher education. Academic institutions
13 include, without limitation, libraries, archives, academic,
14 scientific, educational or professional societies,
15 institutions, associations or foundations having such
16 purposes.
17 (v) The term "cultural institution" means any
18 not-for-profit institution which is not owned by the State or
19 any political subdivision, agency, instrumentality, district
20 or municipality thereof, which institution engages in the
21 cultural, intellectual, scientific, educational or artistic
22 enrichment of the people of the State. Cultural institutions
23 include, without limitation, aquaria, botanical societies,
24 historical societies, libraries, museums, performing arts
25 associations or societies, scientific societies and zoological
26 societies.
HB2755 Enrolled - 1033 - LRB104 08253 BDA 18303 b
1 (w) The term "affiliate" means, with respect to financing
2 of an agricultural facility or an agribusiness, any lender,
3 any person, firm or corporation controlled by, or under common
4 control with, such lender, and any person, firm or corporation
5 controlling such lender.
6 (x) The term "agricultural facility" means land, any
7 building or other improvement thereon or thereto, and any
8 personal properties deemed necessary or suitable for use,
9 whether or not now in existence, in farming, ranching, the
10 production of agricultural commodities (including, without
11 limitation, the products of aquaculture, hydroponics and
12 silviculture) or the treating, processing or storing of such
13 agricultural commodities when such activities are customarily
14 engaged in by farmers as a part of farming and which land,
15 building, improvement or personal property is located within
16 the State, or is located outside the State, provided that, if
17 such property is located outside the State, it must be owned,
18 operated, leased, or managed by an entity located within the
19 State or an entity affiliated with an entity located within
20 the State.
21 (y) The term "lender" with respect to financing of an
22 agricultural facility or an agribusiness, means any federal or
23 State chartered bank, Federal Land Bank, Production Credit
24 Association, Bank for Cooperatives, federal or State chartered
25 savings and loan association or building and loan association,
26 Small Business Investment Company or any other institution
HB2755 Enrolled - 1034 - LRB104 08253 BDA 18303 b
1 qualified within this State to originate and service loans,
2 including, but without limitation to, insurance companies,
3 credit unions and mortgage loan companies. "Lender" also means
4 a wholly owned subsidiary of a manufacturer, seller or
5 distributor of goods or services that makes loans to
6 businesses or individuals, commonly known as a "captive
7 finance company".
8 (z) The term "agribusiness" means any sole proprietorship,
9 limited partnership, co-partnership, joint venture,
10 corporation or cooperative which operates or will operate a
11 facility located within the State or outside the State,
12 provided that, if any facility is located outside the State,
13 it must be owned, operated, leased, or managed by an entity
14 located within the State or an entity affiliated with an
15 entity located within the State, that is related to the
16 processing of agricultural commodities (including, without
17 limitation, the products of aquaculture, hydroponics and
18 silviculture) or the manufacturing, production or construction
19 of agricultural buildings, structures, equipment, implements,
20 and supplies, or any other facilities or processes used in
21 agricultural production. Agribusiness includes but is not
22 limited to the following:
23 (1) grain handling and processing, including grain
24 storage, drying, treatment, conditioning, mailing and
25 packaging;
26 (2) seed and feed grain development and processing;
HB2755 Enrolled - 1035 - LRB104 08253 BDA 18303 b
1 (3) fruit and vegetable processing, including
2 preparation, canning and packaging;
3 (4) processing of livestock and livestock products,
4 dairy products, poultry and poultry products, fish or
5 apiarian products, including slaughter, shearing,
6 collecting, preparation, canning and packaging;
7 (5) fertilizer and agricultural chemical
8 manufacturing, processing, application and supplying;
9 (6) farm machinery, equipment and implement
10 manufacturing and supplying;
11 (7) manufacturing and supplying of agricultural
12 commodity processing machinery and equipment, including
13 machinery and equipment used in slaughter, treatment,
14 handling, collecting, preparation, canning or packaging of
15 agricultural commodities;
16 (8) farm building and farm structure manufacturing,
17 construction and supplying;
18 (9) construction, manufacturing, implementation,
19 supplying or servicing of irrigation, drainage and soil
20 and water conservation devices or equipment;
21 (10) fuel processing and development facilities that
22 produce fuel from agricultural commodities or byproducts;
23 (11) facilities and equipment for processing and
24 packaging agricultural commodities specifically for
25 export;
26 (12) facilities and equipment for forestry product
HB2755 Enrolled - 1036 - LRB104 08253 BDA 18303 b
1 processing and supplying, including sawmilling operations,
2 wood chip operations, timber harvesting operations, and
3 manufacturing of prefabricated buildings, paper, furniture
4 or other goods from forestry products;
5 (13) facilities and equipment for research and
6 development of products, processes and equipment for the
7 production, processing, preparation or packaging of
8 agricultural commodities and byproducts.
9 (aa) The term "asset" with respect to financing of any
10 agricultural facility or any agribusiness, means, but is not
11 limited to the following: cash crops or feed on hand;
12 livestock held for sale; breeding stock; marketable bonds and
13 securities; securities not readily marketable; accounts
14 receivable; notes receivable; cash invested in growing crops;
15 net cash value of life insurance; machinery and equipment;
16 cars and trucks; farm and other real estate including life
17 estates and personal residence; value of beneficial interests
18 in trusts; government payments or grants; and any other
19 assets.
20 (bb) The term "liability" with respect to financing of any
21 agricultural facility or any agribusiness shall include, but
22 not be limited to the following: accounts payable; notes or
23 other indebtedness owed to any source; taxes; rent; amounts
24 owed on real estate contracts or real estate mortgages;
25 judgments; accrued interest payable; and any other liability.
26 (cc) The term "Predecessor Authorities" means those
HB2755 Enrolled - 1037 - LRB104 08253 BDA 18303 b
1 authorities as described in Section 845-75.
2 (dd) The term "housing project" means a specific work or
3 improvement located within the State or outside the State and
4 undertaken to provide residential dwelling accommodations,
5 including the acquisition, construction or rehabilitation of
6 lands, buildings and community facilities and in connection
7 therewith to provide nonhousing facilities which are part of
8 the housing project, including land, buildings, improvements,
9 equipment and all ancillary facilities for use for offices,
10 stores, retirement homes, hotels, financial institutions,
11 service, health care, education, recreation or research
12 establishments, or any other commercial purpose which are or
13 are to be related to a housing development, provided that any
14 work or improvement located outside the State is owned,
15 operated, leased or managed by an entity located within the
16 State, or any entity affiliated with an entity located within
17 the State.
18 (ee) The term "conservation project" means any project
19 including the acquisition, construction, rehabilitation,
20 maintenance, operation, or upgrade that is intended to create
21 or expand open space or to reduce energy usage through
22 efficiency measures. For the purpose of this definition, "open
23 space" has the definition set forth under Section 10 of the
24 Illinois Open Land Trust Act.
25 (ff) The term "significant presence" means the existence
26 within the State of the national or regional headquarters of
HB2755 Enrolled - 1038 - LRB104 08253 BDA 18303 b
1 an entity or group or such other facility of an entity or group
2 of entities where a significant amount of the business
3 functions are performed for such entity or group of entities.
4 (gg) The term "municipal bond issuer" means the State or
5 any other state or commonwealth of the United States, or any
6 unit of local government, school district, agency or
7 instrumentality, office, department, division, bureau,
8 commission, college or university thereof located in the State
9 or any other state or commonwealth of the United States.
10 (hh) The term "municipal bond program project" means a
11 program for the funding of the purchase of bonds, notes or
12 other obligations issued by or on behalf of a municipal bond
13 issuer.
14 (ii) The term "participating lender" means any trust
15 company, bank, savings bank, credit union, merchant bank,
16 investment bank, broker, investment trust, pension fund,
17 building and loan association, savings and loan association,
18 insurance company, venture capital company, or other
19 institution approved by the Authority which provides a portion
20 of the financing for a project.
21 (jj) The term "loan participation" means any loan in which
22 the Authority co-operates with a participating lender to
23 provide all or a portion of the financing for a project.
24 (kk) The term "PACE Project" means an energy project as
25 defined in Section 5 of the Property Assessed Clean Energy
26 Act.
HB2755 Enrolled - 1039 - LRB104 08253 BDA 18303 b
1 (ll) The term "clean energy" means energy generation that
2 is substantially free (90% or more) of carbon dioxide
3 emissions by design or operations, or that otherwise
4 contributes to the reduction in emissions of environmentally
5 hazardous materials or reduces the volume of environmentally
6 dangerous materials.
7 (mm) The term "clean energy project" means the
8 acquisition, construction, refurbishment, creation,
9 development or redevelopment of any facility, equipment,
10 machinery, real property, or personal property for use by the
11 State or any unit of local government, school district, agency
12 or instrumentality, office, department, division, bureau,
13 commission, college, or university of the State, for use by
14 any person or institution, public or private, for profit or
15 not for profit, or for use in any trade or business, which the
16 Authority determines will aid, assist, or encourage the
17 development or implementation of clean energy in the State, or
18 as otherwise contemplated by Article 850.
19 (nn) The term "Climate Bank" means the Authority in the
20 exercise of those powers conferred on it by this Act related to
21 clean energy or clean water, drinking water, or wastewater
22 treatment.
23 (oo) "Equity investment eligible community" and "eligible
24 community" mean the geographic areas throughout Illinois that
25 would most benefit from equitable investments by the State
26 designed to combat discrimination. Specifically, the eligible
HB2755 Enrolled - 1040 - LRB104 08253 BDA 18303 b
1 communities shall be defined as the following areas:
2 (1) R3 Areas as established pursuant to Section 10-40
3 of the Cannabis Regulation and Tax Act, where residents
4 have historically been excluded from economic
5 opportunities, including opportunities in the energy
6 sector; and
7 (2) Environmental justice communities, as defined by
8 the Illinois Power Agency pursuant to the Illinois Power
9 Agency Act, where residents have historically been subject
10 to disproportionate burdens of pollution, including
11 pollution from the energy sector.
12 (pp) "Equity investment eligible person" and "eligible
13 person" mean the persons who would most benefit from equitable
14 investments by the State designed to combat discrimination.
15 Specifically, eligible persons means the following people:
16 (1) persons whose primary residence is in an equity
17 investment eligible community;
18 (2) persons who are graduates of or currently enrolled
19 in the foster care system; or
20 (3) persons who were formerly incarcerated.
21 (qq) "Environmental justice community" means the
22 definition of that term based on existing methodologies and
23 findings used and as may be updated by the Illinois Power
24 Agency and its program administrator in the Illinois Solar for
25 All Program.
26 (Source: P.A. 101-610, eff. 1-1-20; 102-662, eff. 9-15-21.)
HB2755 Enrolled - 1041 - LRB104 08253 BDA 18303 b
1 (20 ILCS 3501/801-40)
2 Sec. 801-40. In addition to the powers otherwise
3 authorized by law and in addition to the foregoing general
4 corporate powers, the Authority shall also have the following
5 additional specific powers to be exercised in furtherance of
6 the purposes of this Act.
7 (a) The Authority shall have power (i) to accept grants,
8 loans or appropriations from the federal government or the
9 State, or any agency or instrumentality thereof, or, in the
10 case of clean energy projects, any not-for-profit
11 philanthropic or other charitable organization, public or
12 private, to be used for the operating expenses of the
13 Authority, or for any purposes of the Authority, including the
14 making of direct loans of such funds with respect to projects,
15 and (ii) to enter into any agreement with the federal
16 government or the State, or any agency or instrumentality
17 thereof, in relationship to such grants, loans or
18 appropriations.
19 (b) The Authority shall have power to procure and enter
20 into contracts for any type of insurance and indemnity
21 agreements covering loss or damage to property from any cause,
22 including loss of use and occupancy, or covering any other
23 insurable risk.
24 (c) The Authority shall have the continuing power to issue
25 bonds for its corporate purposes. Bonds may be issued by the
HB2755 Enrolled - 1042 - LRB104 08253 BDA 18303 b
1 Authority in one or more series and may provide for the payment
2 of any interest deemed necessary on such bonds, of the costs of
3 issuance of such bonds, of any premium on any insurance, or of
4 the cost of any guarantees, letters of credit or other similar
5 documents, may provide for the funding of the reserves deemed
6 necessary in connection with such bonds, and may provide for
7 the refunding or advance refunding of any bonds or for
8 accounts deemed necessary in connection with any purpose of
9 the Authority. The bonds may bear interest payable at any time
10 or times and at any rate or rates, notwithstanding any other
11 provision of law to the contrary, and such rate or rates may be
12 established by an index or formula which may be implemented or
13 established by persons appointed or retained therefor by the
14 Authority, or may bear no interest or may bear interest
15 payable at maturity or upon redemption prior to maturity, may
16 bear such date or dates, may be payable at such time or times
17 and at such place or places, may mature at any time or times
18 not later than 40 years from the date of issuance, may be sold
19 at public or private sale at such time or times and at such
20 price or prices, may be secured by such pledges, reserves,
21 guarantees, letters of credit, insurance contracts or other
22 similar credit support or liquidity instruments, may be
23 executed in such manner, may be subject to redemption prior to
24 maturity, may provide for the registration of the bonds, and
25 may be subject to such other terms and conditions all as may be
26 provided by the resolution or indenture authorizing the
HB2755 Enrolled - 1043 - LRB104 08253 BDA 18303 b
1 issuance of such bonds. The holder or holders of any bonds
2 issued by the Authority may bring suits at law or proceedings
3 in equity to compel the performance and observance by any
4 person or by the Authority or any of its agents or employees of
5 any contract or covenant made with the holders of such bonds
6 and to compel such person or the Authority and any of its
7 agents or employees to perform any duties required to be
8 performed for the benefit of the holders of any such bonds by
9 the provision of the resolution authorizing their issuance,
10 and to enjoin such person or the Authority and any of its
11 agents or employees from taking any action in conflict with
12 any such contract or covenant. Notwithstanding the form and
13 tenor of any such bonds and in the absence of any express
14 recital on the face thereof that it is non-negotiable, all
15 such bonds shall be negotiable instruments. Pending the
16 preparation and execution of any such bonds, temporary bonds
17 may be issued as provided by the resolution. The bonds shall be
18 sold by the Authority in such manner as it shall determine. The
19 bonds may be secured as provided in the authorizing resolution
20 by the receipts, revenues, income and other available funds of
21 the Authority and by any amounts derived by the Authority from
22 the loan agreement or lease agreement with respect to the
23 project or projects; and bonds may be issued as general
24 obligations of the Authority payable from such revenues, funds
25 and obligations of the Authority as the bond resolution shall
26 provide, or may be issued as limited obligations with a claim
HB2755 Enrolled - 1044 - LRB104 08253 BDA 18303 b
1 for payment solely from such revenues, funds and obligations
2 as the bond resolution shall provide. The Authority may grant
3 a specific pledge or assignment of and lien on or security
4 interest in such rights, revenues, income, or amounts and may
5 grant a specific pledge or assignment of and lien on or
6 security interest in any reserves, funds or accounts
7 established in the resolution authorizing the issuance of
8 bonds. Any such pledge, assignment, lien or security interest
9 for the benefit of the holders of the Authority's bonds shall
10 be valid and binding from the time the bonds are issued without
11 any physical delivery or further act, and shall be valid and
12 binding as against and prior to the claims of all other parties
13 having claims against the Authority or any other person
14 irrespective of whether the other parties have notice of the
15 pledge, assignment, lien or security interest. As evidence of
16 such pledge, assignment, lien and security interest, the
17 Authority may execute and deliver a mortgage, trust agreement,
18 indenture or security agreement or an assignment thereof. A
19 remedy for any breach or default of the terms of any such
20 agreement by the Authority may be by mandamus proceedings in
21 any court of competent jurisdiction to compel the performance
22 and compliance therewith, but the agreement may prescribe by
23 whom or on whose behalf such action may be instituted. It is
24 expressly understood that the Authority may, but need not,
25 acquire title to any project with respect to which it
26 exercises its authority.
HB2755 Enrolled - 1045 - LRB104 08253 BDA 18303 b
1 (d) With respect to the powers granted by this Act, the
2 Authority may adopt rules and regulations prescribing the
3 procedures by which persons may apply for assistance under
4 this Act. Nothing herein shall be deemed to preclude the
5 Authority, prior to the filing of any formal application, from
6 conducting preliminary discussions and investigations with
7 respect to the subject matter of any prospective application.
8 (e) The Authority shall have power to acquire by purchase,
9 lease, gift or otherwise any property or rights therein from
10 any person useful for its purposes, whether improved for the
11 purposes of any prospective project, or unimproved. The
12 Authority may also accept any donation of funds for its
13 purposes from any such source. The Authority shall have no
14 independent power of condemnation but may acquire any property
15 or rights therein obtained upon condemnation by any other
16 authority, governmental entity or unit of local government
17 with such power.
18 (f) The Authority shall have power to develop, construct
19 and improve either under its own direction, or through
20 collaboration with any approved applicant, or to acquire
21 through purchase or otherwise, any project, using for such
22 purpose the proceeds derived from the sale of its bonds or from
23 governmental loans or grants, and to hold title in the name of
24 the Authority to such projects.
25 (g) The Authority shall have power to lease pursuant to a
26 lease agreement any project so developed and constructed or
HB2755 Enrolled - 1046 - LRB104 08253 BDA 18303 b
1 acquired to the approved tenant on such terms and conditions
2 as may be appropriate to further the purposes of this Act and
3 to maintain the credit of the Authority. Any such lease may
4 provide for either the Authority or the approved tenant to
5 assume initially, in whole or in part, the costs of
6 maintenance, repair and improvements during the leasehold
7 period. In no case, however, shall the total rentals from any
8 project during any initial leasehold period or the total loan
9 repayments to be made pursuant to any loan agreement, be less
10 than an amount necessary to return over such lease or loan
11 period (1) all costs incurred in connection with the
12 development, construction, acquisition or improvement of the
13 project and for repair, maintenance and improvements thereto
14 during the period of the lease or loan; provided, however,
15 that the rentals or loan repayments need not include costs met
16 through the use of funds other than those obtained by the
17 Authority through the issuance of its bonds or governmental
18 loans; (2) a reasonable percentage additive to be agreed upon
19 by the Authority and the borrower or tenant to cover a properly
20 allocable portion of the Authority's general expenses,
21 including, but not limited to, administrative expenses,
22 salaries and general insurance, and (3) an amount sufficient
23 to pay when due all principal of, interest and premium, if any
24 on, any bonds issued by the Authority with respect to the
25 project. The portion of total rentals payable under clause (3)
26 of this subsection (g) shall be deposited in such special
HB2755 Enrolled - 1047 - LRB104 08253 BDA 18303 b
1 accounts, including all sinking funds, acquisition or
2 construction funds, debt service and other funds as provided
3 by any resolution, mortgage or trust agreement of the
4 Authority pursuant to which any bond is issued.
5 (h) The Authority has the power, upon the termination of
6 any leasehold period of any project, to sell or lease for a
7 further term or terms such project on such terms and
8 conditions as the Authority shall deem reasonable and
9 consistent with the purposes of the Act. The net proceeds from
10 all such sales and the revenues or income from such leases
11 shall be used to satisfy any indebtedness of the Authority
12 with respect to such project and any balance may be used to pay
13 any expenses of the Authority or be used for the further
14 development, construction, acquisition or improvement of
15 projects. In the event any project is vacated by a tenant prior
16 to the termination of the initial leasehold period, the
17 Authority shall sell or lease the facilities of the project on
18 the most advantageous terms available. The net proceeds of any
19 such disposition shall be treated in the same manner as the
20 proceeds from sales or the revenues or income from leases
21 subsequent to the termination of any initial leasehold period.
22 (i) The Authority shall have the power to make loans, or to
23 purchase loan participations in loans made, to persons to
24 finance a project, to enter into loan agreements or agreements
25 with participating lenders with respect thereto, and to accept
26 guarantees from persons of its loans or the resultant
HB2755 Enrolled - 1048 - LRB104 08253 BDA 18303 b
1 evidences of obligations of the Authority.
2 (j) The Authority may fix, determine, charge and collect
3 any premiums, fees, charges, costs and expenses, including,
4 without limitation, any application fees, commitment fees,
5 program fees, financing charges or publication fees from any
6 person in connection with its activities under this Act.
7 (k) In addition to the funds established as provided
8 herein, the Authority shall have the power to create and
9 establish such reserve funds and accounts as may be necessary
10 or desirable to accomplish its purposes under this Act and to
11 deposit its available monies into the funds and accounts.
12 (l) At the request of the governing body of any unit of
13 local government, the Authority is authorized to market such
14 local government's revenue bond offerings by preparing bond
15 issues for sale, advertising for sealed bids, receiving bids
16 at its offices, making the award to the bidder that offers the
17 most favorable terms or arranging for negotiated placements or
18 underwritings of such securities. The Authority may, at its
19 discretion, offer for concurrent sale the revenue bonds of
20 several local governments. Sales by the Authority of revenue
21 bonds under this Section shall in no way imply State guarantee
22 of such debt issue. The Authority may require such financial
23 information from participating local governments as it deems
24 necessary in order to carry out the purposes of this
25 subsection (1).
26 (m) The Authority may make grants to any county to which
HB2755 Enrolled - 1049 - LRB104 08253 BDA 18303 b
1 Division 5-37 of the Counties Code is applicable to assist in
2 the financing of capital development, construction and
3 renovation of new or existing facilities for hospitals and
4 health care facilities under that Act. Such grants may only be
5 made from funds appropriated for such purposes from the Build
6 Illinois Bond Fund.
7 (n) The Authority may establish an urban development
8 action grant program for the purpose of assisting
9 municipalities in Illinois which are experiencing severe
10 economic distress to help stimulate economic development
11 activities needed to aid in economic recovery. The Authority
12 shall determine the types of activities and projects for which
13 the urban development action grants may be used, provided that
14 such projects and activities are broadly defined to include
15 all reasonable projects and activities the primary objectives
16 of which are the development of viable urban communities,
17 including decent housing and a suitable living environment,
18 and expansion of economic opportunity, principally for persons
19 of low and moderate incomes. The Authority shall enter into
20 grant agreements from monies appropriated for such purposes
21 from the Build Illinois Bond Fund. The Authority shall monitor
22 the use of the grants, and shall provide for audits of the
23 funds as well as recovery by the Authority of any funds
24 determined to have been spent in violation of this subsection
25 (n) or any rule or regulation promulgated hereunder. The
26 Authority shall provide technical assistance with regard to
HB2755 Enrolled - 1050 - LRB104 08253 BDA 18303 b
1 the effective use of the urban development action grants. The
2 Authority shall file an annual report to the General Assembly
3 concerning the progress of the grant program.
4 (o) The Authority may establish a Housing Partnership
5 Program whereby the Authority provides zero-interest loans to
6 municipalities for the purpose of assisting in the financing
7 of projects for the rehabilitation of affordable multi-family
8 housing for low and moderate income residents. The Authority
9 may provide such loans only upon a municipality's providing
10 evidence that it has obtained private funding for the
11 rehabilitation project. The Authority shall provide 3 State
12 dollars for every 7 dollars obtained by the municipality from
13 sources other than the State of Illinois. The loans shall be
14 made from monies appropriated for such purpose from the Build
15 Illinois Bond Fund. The total amount of loans available under
16 the Housing Partnership Program shall not exceed $30,000,000.
17 State loan monies under this subsection shall be used only for
18 the acquisition and rehabilitation of existing buildings
19 containing 4 or more dwelling units. The terms of any loan made
20 by the municipality under this subsection shall require
21 repayment of the loan to the municipality upon any sale or
22 other transfer of the project. In addition, the Authority may
23 use any moneys appropriated for such purpose from the Build
24 Illinois Bond Fund, including funds loaned under this
25 subsection and repaid as principal or interest, and investment
26 income on such funds, to make the loans authorized by
HB2755 Enrolled - 1051 - LRB104 08253 BDA 18303 b
1 subsection (z), without regard to any restrictions or
2 limitations provided in this subsection.
3 (p) The Authority may award grants to universities and
4 research institutions, research consortiums and other
5 not-for-profit entities for the purposes of: remodeling or
6 otherwise physically altering existing laboratory or research
7 facilities, expansion or physical additions to existing
8 laboratory or research facilities, construction of new
9 laboratory or research facilities or acquisition of modern
10 equipment to support laboratory or research operations
11 provided that such grants (i) be used solely in support of
12 project and equipment acquisitions which enhance technology
13 transfer, and (ii) not constitute more than 60 percent of the
14 total project or acquisition cost.
15 (q) Grants may be awarded by the Authority to units of
16 local government for the purpose of developing the appropriate
17 infrastructure or defraying other costs to the local
18 government in support of laboratory or research facilities
19 provided that such grants may not exceed 40% of the cost to the
20 unit of local government.
21 (r) In addition to the powers granted to the Authority
22 under subsection (i), and in all cases supplemental to it, the
23 Authority may establish a direct loan program to make loans
24 to, or may purchase participations in loans made by
25 participating lenders to, individuals, partnerships,
26 corporations, or other business entities for the purpose of
HB2755 Enrolled - 1052 - LRB104 08253 BDA 18303 b
1 financing an industrial project, as defined in Section 801-10
2 of this Act. For the purposes of such program and not by way of
3 limitation on any other program of the Authority, including,
4 without limitation, programs established under subsection (i),
5 the Authority shall have the power to issue bonds, notes, or
6 other evidences of indebtedness including commercial paper for
7 purposes of providing a fund of capital from which it may make
8 such loans. The Authority shall have the power to use any
9 appropriations from the State made especially for the
10 Authority's direct loan program, or moneys at any time held by
11 the Authority under this Act outside the State treasury in the
12 custody of either the Treasurer of the Authority or a trustee
13 or depository appointed by the Authority, for additional
14 capital to make such loans or purchase such loan
15 participations, or for the purposes of reserve funds or
16 pledged funds which secure the Authority's obligations of
17 repayment of any bond, note or other form of indebtedness
18 established for the purpose of providing capital for which it
19 intends to make such loans or purchase such loan
20 participations. For the purpose of obtaining such capital, the
21 Authority may also enter into agreements with financial
22 institutions, participating lenders, and other persons for the
23 purpose of administering a loan participation program, selling
24 loans or developing a secondary market for such loans or loan
25 participations. Loans made under the direct loan program
26 specifically established under this subsection (r), including
HB2755 Enrolled - 1053 - LRB104 08253 BDA 18303 b
1 loans under such program made by participating lenders in
2 which the Authority purchases a participation, may be in an
3 amount not to exceed $600,000 and shall be made for a portion
4 of an industrial project which does not exceed 50% of the total
5 project. No loan may be made by the Authority unless approved
6 by the affirmative vote of at least 8 members of the board. The
7 Authority shall establish procedures and publish rules which
8 shall provide for the submission, review, and analysis of each
9 direct loan and loan participation application and which shall
10 preserve the ability of each board member and the Executive
11 Director, as applicable, to reach an individual business
12 judgment regarding the propriety of each direct loan or loan
13 participation. The collective discretion of the board to
14 approve or disapprove each loan shall be unencumbered. The
15 Authority may establish and collect such fees and charges,
16 determine and enforce such terms and conditions, and charge
17 such interest rates as it determines to be necessary and
18 appropriate to the successful administration of the direct
19 loan program, including purchasing loan participations. The
20 Authority may require such interests in collateral and such
21 guarantees as it determines are necessary to protect the
22 Authority's interest in the repayment of the principal and
23 interest of each loan and loan participation made under the
24 direct loan program. The restrictions established under this
25 subsection (r) shall not be applicable to any loan or loan
26 participation made under subsection (i) or to any loan or loan
HB2755 Enrolled - 1054 - LRB104 08253 BDA 18303 b
1 participation made under any other Section of this Act.
2 (s) The Authority may guarantee private loans to third
3 parties up to a specified dollar amount in order to promote
4 economic development in this State.
5 (t) The Authority may adopt rules and regulations as may
6 be necessary or advisable to implement the powers conferred by
7 this Act.
8 (u) The Authority shall have the power to issue bonds,
9 notes or other evidences of indebtedness, which may be used to
10 make loans to units of local government which are authorized
11 to enter into loan agreements and other documents and to issue
12 bonds, notes and other evidences of indebtedness for the
13 purpose of financing the protection of storm sewer outfalls,
14 the construction of adequate storm sewer outfalls, and the
15 provision for flood protection of sanitary sewage treatment
16 plans, in counties that have established a stormwater
17 management planning committee in accordance with Section
18 5-1062 of the Counties Code. Any such loan shall be made by the
19 Authority pursuant to the provisions of Section 820-5 to
20 820-60 of this Act. The unit of local government shall pay back
21 to the Authority the principal amount of the loan, plus annual
22 interest as determined by the Authority. The Authority shall
23 have the power, subject to appropriations by the General
24 Assembly, to subsidize or buy down a portion of the interest on
25 such loans, up to 4% per annum.
26 (v) The Authority may accept security interests as
HB2755 Enrolled - 1055 - LRB104 08253 BDA 18303 b
1 provided in Sections 11-3 and 11-3.3 of the Illinois Public
2 Aid Code.
3 (w) Moral Obligation. In the event that the Authority
4 determines that monies of the Authority will not be sufficient
5 for the payment of the principal of and interest on its bonds
6 during the next State fiscal year, the Chairperson, as soon as
7 practicable, shall certify to the Governor the amount required
8 by the Authority to enable it to pay such principal of and
9 interest on the bonds. The Governor shall submit the amount so
10 certified to the General Assembly as soon as practicable, but
11 no later than the end of the current State fiscal year. This
12 subsection shall apply only to any bonds or notes as to which
13 the Authority shall have determined, in the resolution
14 authorizing the issuance of the bonds or notes, that this
15 subsection shall apply. Whenever the Authority makes such a
16 determination, that fact shall be plainly stated on the face
17 of the bonds or notes and that fact shall also be reported to
18 the Governor. In the event of a withdrawal of moneys from a
19 reserve fund established with respect to any issue or issues
20 of bonds of the Authority to pay principal or interest on those
21 bonds, the Chairperson of the Authority, as soon as
22 practicable, shall certify to the Governor the amount required
23 to restore the reserve fund to the level required in the
24 resolution or indenture securing those bonds. The Governor
25 shall submit the amount so certified to the General Assembly
26 as soon as practicable, but no later than the end of the
HB2755 Enrolled - 1056 - LRB104 08253 BDA 18303 b
1 current State fiscal year. The Authority shall obtain written
2 approval from the Governor for any bonds and notes to be issued
3 under this Section. In addition to any other bonds authorized
4 to be issued under Sections 825-60, 825-65(e), 830-25 and
5 845-5, the principal amount of Authority bonds outstanding
6 issued under this Section 801-40(w) or under 20 ILCS 3850/1-80
7 or 30 ILCS 360/2-6(c), which have been assumed by the
8 Authority, shall not exceed $150,000,000. This subsection (w)
9 shall in no way be applied to any bonds issued by the Authority
10 on behalf of the Illinois Power Agency under Section 825-90 of
11 this Act.
12 (x) The Authority may enter into agreements or contracts
13 with any person necessary or appropriate to place the payment
14 obligations of the Authority under any of its bonds in whole or
15 in part on any interest rate basis, cash flow basis, or other
16 basis desired by the Authority, including without limitation
17 agreements or contracts commonly known as "interest rate swap
18 agreements", "forward payment conversion agreements", and
19 "futures", or agreements or contracts to exchange cash flows
20 or a series of payments, or agreements or contracts, including
21 without limitation agreements or contracts commonly known as
22 "options", "puts", or "calls", to hedge payment, rate spread,
23 or similar exposure; provided that any such agreement or
24 contract shall not constitute an obligation for borrowed money
25 and shall not be taken into account under Section 845-5 of this
26 Act or any other debt limit of the Authority or the State of
HB2755 Enrolled - 1057 - LRB104 08253 BDA 18303 b
1 Illinois.
2 (y) The Authority shall publish summaries of projects and
3 actions approved by the members of the Authority on its
4 website. These summaries shall include, but not be limited to,
5 information regarding the:
6 (1) project;
7 (2) Board's action or actions;
8 (3) purpose of the project;
9 (4) Authority's program and contribution;
10 (5) volume cap;
11 (6) jobs retained;
12 (7) projected new jobs;
13 (8) construction jobs created;
14 (9) estimated sources and uses of funds;
15 (10) financing summary;
16 (11) project summary;
17 (12) business summary;
18 (13) ownership or economic disclosure statement;
19 (14) professional and financial information;
20 (15) service area; and
21 (16) legislative district.
22 The disclosure of information pursuant to this subsection
23 shall comply with the Freedom of Information Act.
24 (z) Consistent with the findings and declaration of policy
25 set forth in item (j) of Section 801-5 of this Act, the
26 Authority shall have the power to make loans to the Police
HB2755 Enrolled - 1058 - LRB104 08253 BDA 18303 b
1 Officers' Pension Investment Fund authorized by Section
2 22B-120 of the Illinois Pension Code and to make loans to the
3 Firefighters' Pension Investment Fund authorized by Section
4 22C-120 of the Illinois Pension Code. Notwithstanding anything
5 in this Act to the contrary, loans authorized by Section
6 22B-120 and Section 22C-120 of the Illinois Pension Code may
7 be made from any of the Authority's funds, including, but not
8 limited to, funds in its Illinois Housing Partnership Program
9 Fund, its Industrial Project Insurance Fund, or its Illinois
10 Venture Investment Fund.
11 (aa) The Authority may finance or refinance (including,
12 without limitation, through reimbursement of prior
13 expenditures) any accounts receivable, working capital,
14 liability, or insurance or noncapital cost or operating
15 expense, or any combination thereof, for any unit of
16 government, participating health institution, private
17 institution of higher education, academic institution,
18 cultural institution, or other person authorized to borrow
19 funds from the Authority pursuant to this Act.
20 (Source: P.A. 101-610, eff. 1-1-20; 102-662, eff. 9-15-21.)
21 (20 ILCS 3501/850-10)
22 Sec. 850-10. Powers and duties.
23 (a) The Authority shall have the powers enumerated in this
24 Act to assist in the development and implementation of clean
25 energy in the State. The powers enumerated in this Article
HB2755 Enrolled - 1059 - LRB104 08253 BDA 18303 b
1 shall be in addition to all other powers of the Authority
2 conferred in this Act, including those related to clean energy
3 and the provision of clean water, drinking water, and
4 wastewater treatment. The powers of the Authority to issue
5 bonds, notes, and other obligations to finance loans
6 administered by the Illinois Environmental Protection Agency
7 under the Public Water Supply Loan Program or the Water
8 Pollution Control Loan Program or other similar programs shall
9 not be limited or otherwise affected by this amendatory Act of
10 the 102nd General Assembly.
11 (b) In its role as the Climate Bank of the State, the
12 Authority shall have the power to: (i) administer programs and
13 funds appropriated by the General Assembly for clean energy
14 projects in eligible communities and environmental justice
15 communities or owned by eligible persons, (ii) support
16 investment in the clean energy and clean water, drinking
17 water, and wastewater treatment, (iii) support and otherwise
18 promote investment in clean energy projects to foster the
19 growth, development, and commercialization of clean energy
20 projects and related enterprises, and (iv) stimulate demand
21 for clean energy and the development of clean energy projects.
22 (c) In addition to, and not in limitation of, any other
23 power of the Authority set forth in this Section or any other
24 provisions of the general statutes, the Authority shall have
25 and may exercise the following powers in furtherance of or in
26 carrying out its clean energy powers and purposes:
HB2755 Enrolled - 1060 - LRB104 08253 BDA 18303 b
1 (1) To enter into joint ventures and invest in and
2 participate with any person, including, without
3 limitation, government entities and private corporations,
4 engaged primarily in the development of clean energy
5 projects, provided that members of the Authority or
6 officers may serve as directors, members, or officers of
7 any such business entity, and such service shall be deemed
8 to be in the discharge of the duties or within the scope of
9 the employment of any such member or officer, or Authority
10 or officers, as the case may be, so long as such member or
11 officer does not receive any compensation or direct or
12 indirect financial benefit as a result of serving in such
13 role.
14 (2) To utilize funding sources, including, but not
15 limited to:
16 (A) funds repurposed from existing programs
17 providing financing support for clean energy projects,
18 clean water projects, drinking water projects,
19 wastewater treatment projects, or climate resilience
20 projects, provided any transfer of funds from such
21 existing programs shall be subject to approval by the
22 General Assembly and shall be used for expenses of
23 financing, grants, and loans;
24 (B) any federal or other funds that can be used for
25 clean energy purposes, clean water projects, drinking
26 water projects, wastewater treatment projects, or
HB2755 Enrolled - 1061 - LRB104 08253 BDA 18303 b
1 climate resilience projects;
2 (C) charitable gifts, grants, and contributions as
3 well as loans from individuals, corporations,
4 university endowment funds, and philanthropic
5 foundations for clean energy projects or for the
6 provision of clean water, drinking water, and
7 wastewater treatment or climate resilience projects;
8 and
9 (D) earnings and interest derived from financing
10 support activities for clean energy projects or
11 climate resilience projects financed by the Authority.
12 (3) To enter into contracts with private sources to
13 raise capital.
14 (d) The Authority may finance working capital, refinance
15 outstanding indebtedness of any person, and otherwise assist
16 in the investment of equity from any source, public or
17 private, in connection with clean energy projects or any other
18 projects authorized by this Act.
19 (e) The Authority may assess reasonable fees on its
20 financing activities to cover its reasonable costs and
21 expenses, as determined by the Authority.
22 (f) The Authority shall make information regarding the
23 rates, terms and conditions for all of its financing support
24 transactions available to the public for inspection, including
25 formal annual reviews by both a private auditor and the
26 Comptroller, and providing details to the public on the
HB2755 Enrolled - 1062 - LRB104 08253 BDA 18303 b
1 Internet, provided public disclosure shall be restricted for
2 patentable ideas, trade secrets, and proprietary or
3 confidential commercial or financial information, disclosure
4 of which may cause commercial harm to a nongovernmental
5 recipient of such financing support and for other information
6 exempt from public records disclosure pursuant to Section
7 1-210.
8 (Source: P.A. 102-662, eff. 9-15-21.)
9 Section 50-910. The Climate Bank Loan Financing Act is
10 amended by changing Sections 5, 10, and 35 as follows:
11 (30 ILCS 445/5)
12 Sec. 5. Definitions. As used in this Act:
13 "Alternate bonds", "applicable law", "bond", "general
14 obligation bonds", "limited bonds", "governmental unit",
15 "revenue bonds", "enterprise revenues", and "revenue source"
16 have the respective meanings set forth in Section 3 of the
17 Local Government Debt Reform Act.
18 "Clean energy infrastructure project" means:
19 (i) a project that uses renewable energy resources, as
20 defined in Section 1-10 of the Illinois Power Agency Act;
21 (ii) an energy efficiency project;
22 (iii) a project that uses technology for the storage
23 of renewable energy, including, without limitation, the
24 use of battery or electrochemical storage technology for
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1 mobile or stationary applications;
2 (iv) a project for the acquisition or repairs of
3 electric vehicles;
4 (v) a project for the acquisition, construction, or
5 repairs to electric vehicle charging stations; and
6 (vi) a building electrification project of replacing
7 fossil fuels with electricity to meet a given end use.
8 "Climate resilience project" means a project to reduce
9 hazards or risks to people and property from future disasters
10 or climate-related conditions. "Climate resilience project"
11 includes, but is not limited to, projects that ensure access
12 to clean water and drinking water, support wastewater
13 treatment or resiliency of other essential infrastructure and
14 other projects that reduce the potential impact of disasters
15 or climate change.
16 "Electric vehicle" means a vehicle that is exclusively
17 powered by and refueled by electricity, must be plugged in to
18 charge, and is licensed to drive on public roadways.
19 "Electric vehicle charging station" means a station that
20 delivers electricity from a source outside an electric vehicle
21 into one or more electric vehicles.
22 "Energy efficiency project" means measures that reduce the
23 amount of electricity, natural gas, or total Btu of
24 electricity or natural gas required to achieve or meet a given
25 end use, consistent with Section 1-10 of the Illinois Power
26 Agency Act.
HB2755 Enrolled - 1064 - LRB104 08253 BDA 18303 b
1 "Governing body" means the council, board, commission, or
2 body, by whatever name it is known, having charge of the
3 finances of a governmental unit.
4 (Source: P.A. 103-1023, eff. 8-9-24.)
5 (30 ILCS 445/10)
6 Sec. 10. Clean energy infrastructure projects. A
7 governmental unit may own, construct, equip, manage, control,
8 erect, improve, extend, maintain, and operate new or existing
9 clean energy infrastructure projects and climate resilience
10 projects, may purchase real estate and any property rights to
11 be used for clean energy infrastructure projects and climate
12 resilience projects, and may charge for the use of clean
13 energy infrastructure.
14 (Source: P.A. 103-1023, eff. 8-9-24.)
15 (30 ILCS 445/35)
16 Sec. 35. Authority for issuance. The authority to issue
17 bonds by a governmental unit under this Act and applicable law
18 for clean energy infrastructure projects and climate
19 resilience projects is in addition to any other authority to
20 issue bonds by a governmental unit provided by law.
21 (Source: P.A. 103-1023, eff. 8-9-24.)
22 Section 50-915. The Property Tax Code is amended by
23 changing Sections 15-178 and 21-150 as follows:
HB2755 Enrolled - 1065 - LRB104 08253 BDA 18303 b
1 (35 ILCS 200/15-178)
2 Sec. 15-178. Affordable housing special assessment
3 programs; reduction Reduction in assessed value for affordable
4 rental housing construction or rehabilitation.
5 (a) The General Assembly finds that there is a shortage of
6 high quality affordable rental homes for low-income and
7 very-low-income households throughout Illinois; that owners
8 and developers of rental housing face significant challenges
9 building newly constructed apartments or undertaking
10 rehabilitation of existing properties that results in rents
11 that are affordable for low-income and very-low-income
12 households; and that it will help Cook County and other parts
13 of Illinois address the extreme shortage of affordable rental
14 housing by developing a statewide policy to determine the
15 assessed value for newly constructed and rehabilitated
16 affordable rental housing that both encourages investment and
17 incentivizes property owners to keep rents affordable.
18 (b) Each chief county assessment officer shall implement
19 special assessment programs to reduce the assessed value of
20 all eligible newly constructed residential real property or
21 qualifying rehabilitation to all eligible existing residential
22 real property in accordance with subsection (c) for 10 taxable
23 years after the newly constructed residential real property or
24 the qualifying rehabilitation of a improvements to existing
25 residential real property is are put in service. Any county
HB2755 Enrolled - 1066 - LRB104 08253 BDA 18303 b
1 with less than 3,000,000 inhabitants may decide not to
2 implement one or both of the special assessment programs
3 defined in subparagraph (1) of subsection (c) of this Section
4 and subparagraph (2) of subsection (c) of this Section upon
5 passage of an ordinance by a majority vote of the county board.
6 Subsequent to a vote to opt out of this special assessment
7 program, any county with less than 3,000,000 inhabitants may
8 decide to implement one or both of the special assessment
9 programs defined in subparagraph (1) of subsection (c) of this
10 Section and subparagraph (2) of subsection (c) of this Section
11 upon passage of an ordinance by a majority vote of the county
12 board. A county opting out shall not disqualify or shorten the
13 maximum eligibility periods for any property approved to
14 receive a reduced valuation prior to the county opting out.
15 The special assessment programs available under this Section
16 shall be available to all qualifying developments regardless
17 of whether or not the property has or is currently receiving
18 any other public financing or subsidies or subject to any
19 regulatory agreements with any public entity, or both. The
20 changes made to this subsection by this amendatory Act of the
21 104th General Assembly are declarative of existing law and
22 shall not be construed as a new enactment. Property is
23 eligible for the special assessment program if and only if all
24 of the following factors have been met:
25 (1) at the conclusion of the new construction or
26 qualifying rehabilitation, the property is a qualifying
HB2755 Enrolled - 1067 - LRB104 08253 BDA 18303 b
1 development consists of a newly constructed multifamily
2 building containing 7 or more rental dwelling units or an
3 existing multifamily building that has undergone
4 qualifying rehabilitation resulting in 7 or more rental
5 dwelling units; and
6 (2) the property meets the application requirements
7 defined in subsection (f).
8 (c) For those counties that are required to implement the
9 special assessment program and do not opt out of such special
10 assessment program, the chief county assessment officer for
11 that county shall require that residential real property is
12 eligible for the special assessment program if and only if one
13 of the additional factors have been met:
14 (1) except as defined in subparagraphs (E), (F), and
15 (G) of paragraph (1) of subsection (f) of this Section,
16 prior to the newly constructed residential real property
17 or the qualifying rehabilitation of improvements to
18 existing residential real property being put in service,
19 the owner of the residential real property commits that,
20 for a period of 10 years, at least 15% of the multifamily
21 building's units will have rents as defined in this
22 Section that are at or below maximum rents and are
23 occupied by households with household incomes at or below
24 maximum income limits; or
25 (2) except as defined in subparagraphs (E), (F), and
26 (G) of paragraph (1) of subsection (f) of this Section,
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1 prior to the newly constructed residential real property
2 or the qualifying rehabilitation of improvements to
3 existing residential real property located in a low
4 affordability community being put in service, the owner of
5 the residential real property commits that, for a period
6 of 30 years after the newly constructed residential real
7 property or the qualifying rehabilitation of improvements
8 to existing residential real property is are put in
9 service, at least 20% of the multifamily building's units
10 will have rents as defined in this Section that are at or
11 below maximum rents and are occupied by households with
12 household incomes at or below maximum income limits.
13 If a reduction in assessed value is granted under one
14 special assessment program provided for in this Section, then
15 that same residential real property is not eligible for an
16 additional special assessment program under this Section at
17 the same time.
18 (d) The amount of the reduction in assessed value for
19 residential real property meeting the conditions set forth in
20 subparagraph (1) of subsection (c) shall be calculated as
21 follows:
22 (1) if the owner of the residential real property
23 commits for a period of at least 10 years that at least 15%
24 but fewer than 35% of the multifamily building's units
25 have rents at or below maximum rents and are occupied by
26 households with household incomes at or below maximum
HB2755 Enrolled - 1069 - LRB104 08253 BDA 18303 b
1 income limits, the assessed value of the property used to
2 calculate the tax bill shall be reduced by an amount equal
3 to 25% of the assessed value of the property as determined
4 by the assessor for the property in the current taxable
5 year for either the newly constructed residential real
6 property or based on the qualifying rehabilitation of a
7 residential real property improvements to an existing
8 residential real property; and
9 (2) if the owner of the residential real property
10 commits for a period of at least 10 years that at least 35%
11 of the multifamily building's units have rents at or below
12 maximum rents and are occupied by households with
13 household incomes at or below maximum income limits, the
14 assessed value of the property used to calculate the tax
15 bill shall be reduced by an amount equal to 35% of the
16 assessed value of the property as determined by the
17 assessor for the property in the current assessment year
18 for either the newly constructed residential real property
19 or based on the qualifying rehabilitation of a residential
20 real property improvements to an existing residential real
21 property.
22 (e) The amount of the reduction for residential real
23 property meeting the conditions set forth in subparagraph (2)
24 of subsection (c) shall be calculated as follows:
25 (1) for the first, second, and third taxable year
26 after the residential real property is placed in service,
HB2755 Enrolled - 1070 - LRB104 08253 BDA 18303 b
1 the residential real property is entitled to a reduction
2 in its assessed value in an amount equal to the difference
3 between the assessed value in the year for which the
4 incentive is sought and the assessed value for the
5 residential real property in the base year;
6 (2) for the fourth, fifth, and sixth taxable year
7 after the residential real property is placed in service,
8 the property is entitled to a reduction in its assessed
9 value in an amount equal to 80% of the difference between
10 the assessed value in the year for which the incentive is
11 sought and the assessed value for the residential real
12 property in the base year;
13 (3) for the seventh, eighth, and ninth taxable year
14 after the property is placed in service, the residential
15 real property is entitled to a reduction in its assessed
16 value in an amount equal to 60% of the difference between
17 the assessed value in the year for which the incentive is
18 sought and the assessed value for the residential real
19 property in the base year;
20 (4) for the tenth, eleventh, and twelfth taxable year
21 after the residential real property is placed in service,
22 the residential real property is entitled to a reduction
23 in its assessed value in an amount equal to 40% of the
24 difference between the assessed value in the year for
25 which the incentive is sought and the assessed value for
26 the residential real property in the base year; and
HB2755 Enrolled - 1071 - LRB104 08253 BDA 18303 b
1 (5) for the thirteenth through the thirtieth taxable
2 year after the residential real property is placed in
3 service, the residential real property is entitled to a
4 reduction in its assessed value in an amount equal to 20%
5 of the difference between the assessed value in the year
6 for which the incentive is sought and the assessed value
7 for the residential real property in the base year.
8 (f) Application requirements.
9 (1) In order to receive the reduced valuation under
10 this Section, the owner must submit an application
11 containing the following information to the chief county
12 assessment officer for review in the form and by the date
13 required by the chief county assessment officer or, in the
14 absence of forms issued by the chief county assessment
15 officer, the Department:
16 (A) the owner's name;
17 (B) the postal address and permanent index number
18 or numbers of the parcel or parcels for which the owner
19 is applying to receive reduced valuation under this
20 Section;
21 (C) a deed or other instrument conveying the
22 parcel or parcels to the current owner;
23 (D) written evidence that the new construction or
24 qualifying rehabilitation has been completed with
25 respect to the residential real property, including,
26 but not limited to, copies of building permits, a
HB2755 Enrolled - 1072 - LRB104 08253 BDA 18303 b
1 notarized contractor's affidavit, and photographs of
2 the interior and exterior of the building after new
3 construction or rehabilitation is completed;
4 (E) written evidence that the residential real
5 property meets local building codes, or if there are
6 no local building codes, Housing Quality Standards, as
7 determined by the United States Department of Housing
8 and Urban Development;
9 (F) a list identifying the affordable units in
10 residential real property and a written statement that
11 the affordable units are comparable to the market rate
12 units in terms of unit type, number of bedrooms per
13 unit, quality of exterior appearance, energy
14 efficiency, and overall quality of construction;
15 (G) a written schedule certifying the rents in
16 each affordable unit and a written statement that
17 these rents do not exceed the maximum rents allowable
18 for the area in which the residential real property is
19 located;
20 (H) documentation from the administering agency
21 verifying the owner's participation in a qualifying
22 income-based rental subsidy program as defined in
23 subsection (e) of this Section if units receiving
24 rental subsidies are to be counted among the
25 affordable units in order to meet the thresholds
26 defined in this Section;
HB2755 Enrolled - 1073 - LRB104 08253 BDA 18303 b
1 (I) a written statement identifying the household
2 income for every household occupying an affordable
3 unit and certifying that the household income does not
4 exceed the maximum income limits allowable for the
5 area in which the residential real property is
6 located;
7 (J) a written statement that the owner has
8 verified and retained documentation of household
9 income for every household occupying an affordable
10 unit; and
11 (K) any additional information consistent with
12 this Section as reasonably required by the chief
13 county assessment officer, including, but not limited
14 to, any information necessary to ensure compliance
15 with applicable local ordinances and to ensure the
16 owner is complying with the provisions of this
17 Section.
18 (1.1) In order for a development to receive the
19 reduced valuation under subsection (e), the owner must
20 provide evidence to the county assessor's office of a
21 fully executed project labor agreement entered into with
22 the applicable local building trades council, prior to
23 commencement of any and all construction, building,
24 renovation, demolition, or any material change to the
25 structure or land.
26 (2) The application requirements contained in
HB2755 Enrolled - 1074 - LRB104 08253 BDA 18303 b
1 paragraph (1) of subsection (f) are continuing
2 requirements for the duration of the reduction in assessed
3 value received and may be annually or periodically
4 verified by the chief county assessment officer for the
5 county whereby the benefit is being issued.
6 (3) In lieu of submitting an application containing
7 the information prescribed in paragraph (1) of subsection
8 (f), the chief county assessment officer may allow for
9 submission of a substantially similar certification
10 granted by the Illinois Housing Development Authority or a
11 comparable local authority provided that the chief county
12 assessment officer independently verifies the veracity of
13 the certification with the Illinois Housing Development
14 Authority or comparable local authority.
15 (4) The chief county assessment officer shall notify
16 the owner as to whether or not the property meets the
17 requirements of this Section. If the property does not
18 meet the requirements of this Section, the chief county
19 assessment officer shall provide written notice of any
20 deficiencies to the owner, who shall then have 30 days
21 from the date of notification to provide supplemental
22 information showing compliance with this Section. The
23 chief county assessment officer shall, in its discretion,
24 grant additional time to cure any deficiency. If the owner
25 does not exercise this right to cure the deficiency, or if
26 the information submitted, in the sole judgment of the
HB2755 Enrolled - 1075 - LRB104 08253 BDA 18303 b
1 chief county assessment officer, is insufficient to meet
2 the requirements of this Section, the chief county
3 assessment officer shall provide a written explanation of
4 the reasons for denial.
5 (5) The chief county assessment officer may charge a
6 reasonable application fee to offset the administrative
7 expenses associated with the program.
8 (6) The reduced valuation conferred by this Section is
9 limited as follows:
10 (A) The owner is eligible to apply for the reduced
11 valuation conferred by this Section beginning in the
12 first assessment year after the effective date of this
13 amendatory Act of the 102nd General Assembly through
14 December 31, 2034 2027. If approved, the reduction
15 will be effective for the current assessment year,
16 which will be reflected in the tax bill issued in the
17 following calendar year. Owners that are approved for
18 the reduced valuation under paragraph (1) of
19 subsection (c) of this Section before December 31,
20 2034 2027 shall, at minimum, be eligible for annual
21 renewal of the reduced valuation during an initial
22 10-year period if annual certification requirements
23 are met for each of the 10 years, as described in
24 subparagraph (B) of paragraph (4) of subsection (d) of
25 this Section. If an owner is approved for the reduced
26 valuation conferred by this Section prior to December
HB2755 Enrolled - 1076 - LRB104 08253 BDA 18303 b
1 31, 2034 and this Section is not subsequently
2 extended, this shall not disqualify or shorten the
3 maximum eligibility periods for any property approved
4 to receive a reduced valuation.
5 (B) Property receiving a reduction outlined in
6 paragraph (1) of subsection (c) of this Section shall
7 continue to be eligible for an initial period of up to
8 10 years if annual certification requirements are met
9 for each of the 10 years, but shall be extended for up
10 to 2 additional 10-year periods with annual renewals
11 if the owner continues to meet the requirements of
12 this Section, including annual certifications, and
13 excluding the requirements regarding new construction
14 or qualifying rehabilitation defined in subparagraph
15 (D) of paragraph (1) of this subsection.
16 (C) The annual certification materials in the year
17 prior to final year of eligibility for the reduction
18 in assessed value must include a dated copy of the
19 written notice provided to tenants informing them of
20 the date of the termination if the owner is not seeking
21 a renewal.
22 (D) If the property is sold or transferred, the
23 purchaser or transferee must comply with all
24 requirements of this Section, excluding the
25 requirements regarding new construction or qualifying
26 rehabilitation defined in subparagraph (D) of
HB2755 Enrolled - 1077 - LRB104 08253 BDA 18303 b
1 paragraph (1) of this subsection, in order to continue
2 receiving the reduction in assessed value. Purchasers
3 and transferees who comply with all requirements of
4 this Section excluding the requirements regarding new
5 construction or qualifying rehabilitation defined in
6 subparagraph (D) of paragraph (1) of this subsection
7 are eligible to apply for renewal on the schedule set
8 by the initial application.
9 (E) (Blank). The owner may apply for the reduced
10 valuation if the residential real property meets all
11 requirements of this Section and the newly constructed
12 residential real property or improvements to existing
13 residential real property were put in service on or
14 after January 1, 2015. However, the initial 10-year
15 eligibility period or 30-year eligibility period,
16 depending on the applicable program, shall be reduced
17 by the number of years between the placed in service
18 date and the date the owner first receives this
19 reduced valuation.
20 (F) The owner may apply for the reduced valuation
21 within 2 years after the newly constructed residential
22 real property or the qualifying rehabilitation of
23 improvements to existing residential real property is
24 are put in service. However, the initial 10-year
25 eligibility period or 30-year eligibility period,
26 depending on the applicable program, shall be reduced
HB2755 Enrolled - 1078 - LRB104 08253 BDA 18303 b
1 for the number of years between the placed in service
2 date and the date the owner first receives this
3 reduced valuation.
4 (G) Owners of a multifamily building receiving a
5 reduced valuation through the Cook County Class 9
6 program during the year in which this amendatory Act
7 of the 102nd General Assembly takes effect shall be
8 deemed automatically eligible for the reduced
9 valuation defined in paragraph (1) of subsection (c)
10 of this Section in terms of meeting the criteria for
11 new construction or substantial rehabilitation for a
12 specific multifamily building regardless of when the
13 newly constructed residential real property or
14 improvements to existing residential real property
15 were put in service. If a Cook County Class 9 owner had
16 Class 9 status revoked on or after January 1, 2017 but
17 can provide documents sufficient to prove that the
18 revocation was in error or any deficiencies leading to
19 the revocation have been cured, the chief county
20 assessment officer may deem the owner to be eligible.
21 However, owners may not receive both the reduced
22 valuation under this Section and the reduced valuation
23 under the Cook County Class 9 program in any single
24 assessment year. In addition, the number of years
25 during which an owner has participated in the Class 9
26 program shall count against the 3 10-year periods of
HB2755 Enrolled - 1079 - LRB104 08253 BDA 18303 b
1 eligibility for the reduced valuation as defined in
2 subparagraph (1) of subsection (c) of this Section.
3 (H) When the property exits the special assessment
4 program, the entire parcel shall be assessed as
5 otherwise provided by law At the completion of the
6 assessment reduction period described in this Section:
7 the entire parcel will be assessed as otherwise
8 provided by law. At any time prior to exiting the
9 special assessment program, a property owner may apply
10 for a renewed 30-year eligibility period, to begin on
11 the first day of the year following approval.
12 (H-5) Any property that has reached or will reach
13 the end of its 30-year eligibility period before
14 December 31, 2025 may remain in the program pending a
15 reapplication filed by December 31, 2026. Those
16 applications shall cite qualifying expenditures made
17 in the 2 years before the application. This
18 subparagraph (H-5) is inoperative on and after January
19 31, 2027.
20 (7) If the chief county assessment officer has not
21 created application forms, the chief county assessment
22 officer shall make publicly available and accept
23 application forms that shall be available to local
24 governments from the Illinois Department of Revenue. If a
25 county Internet website exists, the application materials,
26 as well as any other program requirements used by the
HB2755 Enrolled - 1080 - LRB104 08253 BDA 18303 b
1 county (such as application deadlines, fees, and other
2 procedures required by the application) must be published
3 on that website, otherwise it must be available to the
4 public upon request at the office of the chief county
5 assessment officer.
6 (g) As used in this Section:
7 "Affordable units" means units that have rents that do not
8 exceed the maximum rents as defined in this Section.
9 "Assessed value for the residential real property in the
10 base year" means the assessed value used to calculate the tax
11 bill, as certified by the board of review, for the tax year
12 immediately prior to the tax year in which the building permit
13 is issued. For property assessed as other than residential
14 property, the "assessed value for the residential real
15 property in the base year" means the assessed value that would
16 have been obtained had the property been classified as
17 residential as derived from the board of review's certified
18 market value.
19 "Consumer Price Index-u" means the index published by the
20 Bureau of Labor Statistics of the United States Department of
21 Labor that measures the average change in prices of goods and
22 services purchased by all urban consumers, United States city
23 average, not seasonally adjusted, all items, 1982-84 = 100.
24 "Household income" includes the annual income for all the
25 people who occupy a housing unit that is anticipated to be
26 received from a source outside of the family during the
HB2755 Enrolled - 1081 - LRB104 08253 BDA 18303 b
1 12-month period following admission or the annual
2 recertification, including related family members and all the
3 unrelated people who share the housing unit. Household income
4 includes the total of the following income sources: wages,
5 salaries and tips before any payroll deductions; net business
6 income; interest and dividends; payments in lieu of earnings,
7 such as unemployment and disability compensation, worker's
8 compensation and severance pay; Social Security income,
9 including lump sum payments; payments from insurance policies,
10 annuities, pensions, disability benefits and other types of
11 periodic payments, alimony, child support, and other regular
12 monetary contributions; and public assistance, except for
13 assistance from the Supplemental Nutrition Assistance Program
14 (SNAP). "Household income" does not include: earnings of
15 children under age 18; temporary income such as cash gifts;
16 reimbursement for medical expenses; lump sums from
17 inheritance, insurance payments, settlements for personal or
18 property losses; student financial assistance paid directly to
19 the student or to an educational institution; foster child
20 care payments; receipts from government-funded training
21 programs; assistance from the Supplemental Nutrition
22 Assistance Program (SNAP).
23 "Low affordability community" means (1) a municipality or
24 jurisdiction with less than 1,000,000 inhabitants in which 40%
25 or less of its total year-round housing units are affordable,
26 as determined by the Illinois Housing Development Authority
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1 during the exemption determination process under the
2 Affordable Housing Planning and Appeal Act; (2) "D" zoning
3 districts as now or hereafter designated in the Chicago Zoning
4 Ordinance; or (3) a jurisdiction located in a municipality
5 with 1,000,000 or more inhabitants that has been designated as
6 a low affordability community by passage of a local ordinance
7 by that municipality, specifying the census tract or property
8 by permanent index number or numbers.
9 "Maximum income limits" means the maximum regular income
10 limits for 60% of area median income for the geographic area in
11 which the multifamily building is located for multifamily
12 programs as determined by the United States Department of
13 Housing and Urban Development and published annually by the
14 Illinois Housing Development Authority. A property may be
15 deemed to have satisfied the maximum income limits with a
16 weighted average if municipal, state, or federal laws,
17 ordinances, rules, or regulations requires the use of a
18 weighted average of no more than 60% of area median income for
19 that property.
20 "Maximum rent" means the maximum regular rent for 60% of
21 the area median income for the geographic area in which the
22 multifamily building is located for multifamily programs as
23 determined by the United States Department of Housing and
24 Urban Development and published annually by the Illinois
25 Housing Development Authority. To be eligible for the reduced
26 valuation defined in this Section, maximum rents are to be
HB2755 Enrolled - 1083 - LRB104 08253 BDA 18303 b
1 consistent with the Illinois Housing Development Authority's
2 rules; or if the owner is leasing an affordable unit to a
3 household with an income at or below the maximum income limit
4 who is participating in qualifying income-based rental subsidy
5 program, "maximum rent" means the maximum rents allowable
6 under the guidelines of the qualifying income-based rental
7 subsidy program. A property may be deemed to have satisfied
8 the maximum rent with a weighted average if municipal, state,
9 or federal laws, ordinances, rules, or regulations requires
10 the use of a weighted average of no more than 60% of area
11 median income for that property.
12 "Qualifying development" means:
13 (1) property containing a newly constructed
14 multifamily building containing 7 or more rental dwelling
15 units; or
16 (2) property containing an existing multifamily
17 building that has undergone qualifying rehabilitation
18 resulting in 7 or more rental dwelling units; or
19 (3) in counties with a population of 3,000,000 or more
20 inhabitants, property in a portfolio of properties
21 consisting of 7 or more total rental dwelling units across
22 2 or more multifamily rental buildings that are each newly
23 constructed or have undergone qualifying rehabilitation if
24 the portfolio meets all the following additional
25 requirements:
26 (A) all of the properties in the portfolio must be
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1 under common ownership and must be part of a single
2 financial entity or treated as a single entity for the
3 purposes of financing, regulatory agreements, or
4 participation in a qualifying income-based subsidy
5 program;
6 (B) the portfolio, as a whole, must participate in
7 a qualifying income-based subsidy program; and
8 (C) if the portfolio includes units supported by
9 tenant-based rental assistance, including, but not
10 limited to, the Housing Choice Voucher program, the
11 portfolio must also:
12 (i) operate under a regulatory agreement with
13 a federal, State, or local housing agency that
14 imposes affordability restrictions; or
15 (ii) participate in an additional qualifying
16 income-based subsidy program beyond tenant-based
17 assistance.
18 "Qualifying income-based rental subsidy program" means a
19 Housing Choice Voucher issued by a housing authority under
20 Section 8 of the United States Housing Act of 1937, a tenant
21 voucher converted to a project-based voucher by a housing
22 authority or any other program administered or funded by a
23 housing authority, the Illinois Housing Development Authority,
24 another State agency, a federal agency, or a unit of local
25 government where participation is limited to households with
26 incomes at or below the maximum income limits as defined in
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1 this Section and the tenants' portion of the rent payment is
2 based on a percentage of their income or a flat amount that
3 does not exceed the maximum rent as defined in this Section.
4 "Qualifying rehabilitation" means, at a minimum,
5 compliance with local building codes and the replacement or
6 renovation of at least 2 primary building systems to be
7 approved for the reduced valuation under paragraph (1) of
8 subsection (d) of this Section and at least 5 primary building
9 systems to be approved for the reduced valuation under
10 subsection (e) of this Section. Although the cost of each
11 primary building system may vary, to be approved for the
12 reduced valuation under paragraph (1) of subsection (d) of
13 this Section, for work completed between January 1, 2021 and
14 December 31, 2021, the combined expenditure for making the
15 building compliant with local codes and replacing primary
16 building systems must be at least $8 per square foot for work
17 completed between January 1 of the year in which this
18 amendatory Act of the 102nd General Assembly takes effect and
19 December 31 of the year in which this amendatory Act of the
20 102nd General Assembly takes effect and, in subsequent years,
21 $8 adjusted by the Consumer Price Index for All Urban
22 Consumers, as published annually by the U.S. Department of
23 Labor. For work completed in calendar years beginning on or
24 after January 1, 2022, that combined expenditure amount shall
25 be the combined expenditure amount necessary to be approved
26 for the reduced valuation under paragraph (1) of subsection
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1 (d) of this Section in the immediately preceding calendar
2 year, multiplied by one plus the percentage increase, if any,
3 in the Consumer Price Index-u during the immediately preceding
4 calendar year and rounded to the nearest penny. To be approved
5 for the reduced valuation under paragraph (2) of subsection
6 (d) of this Section, for work completed between January 1,
7 2021 and December 31, 2021, the combined expenditure for
8 making the building compliant with local codes and replacing
9 primary building systems must be at least $12.50 per square
10 foot for work completed between January 1 of the year in which
11 this amendatory Act of the 102nd General Assembly takes effect
12 and December 31 of the year in which this amendatory Act of the
13 102nd General Assembly takes effect, and in subsequent years,
14 $12.50 adjusted by the Consumer Price Index for All Urban
15 Consumers, as published annually by the U.S. Department of
16 Labor. For work completed in calendar years beginning on or
17 after January 1, 2022, that combined expenditure amount shall
18 be the combined expenditure amount necessary to be approved
19 for the reduced valuation under paragraph (2) of subsection
20 (d) of this Section in the immediately preceding calendar
21 year, multiplied by one plus the percentage increase, if any,
22 in the Consumer Price Index-u during the immediately preceding
23 calendar year and rounded to the nearest penny. To be approved
24 for the reduced valuation under subsection (e) of this
25 Section, for work completed between January 1, 2021 and
26 December 31, 2021, the combined expenditure for making the
HB2755 Enrolled - 1087 - LRB104 08253 BDA 18303 b
1 building compliant with local codes and replacing primary
2 building systems must be at least $60 per square foot for work
3 completed between January 1 of the year that this amendatory
4 Act of the 102nd General Assembly becomes effective and
5 December 31 of the year that this amendatory Act of the 102nd
6 General Assembly becomes effective and, in subsequent years,
7 $60 adjusted by the Consumer Price Index for All Urban
8 Consumers, as published annually by the U.S. Department of
9 Labor. For work completed in calendar years beginning on or
10 after January 1, 2022, that combined expenditure amount shall
11 be the combined expenditure amount necessary to be approved
12 for the reduced valuation under subsection (e) of this Section
13 in the immediately preceding calendar year, multiplied by one
14 plus the percentage increase, if any, in the Consumer Price
15 Index-u during the immediately preceding calendar year and
16 rounded to the nearest penny. This amendatory Act of the 104th
17 General Assembly is not intended to change the combined
18 expenditure amounts determined before the effective date of
19 this amendatory Act of the 104th General Assembly for any work
20 completed before January 1, 2026 and shall not be used as the
21 basis for any appeal filed with the chief county assessment
22 officer, the board of review, the Property Tax Appeal Board,
23 or the circuit court with respect to the scope or meaning of
24 the exemption under this Section for a tax year prior to tax
25 year 2026.
26 For the purposes of administering this Section, by
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1 February 15, 2026, and by February 15 of each year thereafter,
2 the Department of Revenue shall publish on its website the
3 percentage increase, if any, in the Consumer Price Index-u for
4 the immediately preceding calendar year, including historical
5 annual increases in the Consumer Price Index-u going back to
6 calendar year 2022. In counties with a population of 3,000,000
7 or more, by March 15, 2026, and by March 15 of each year
8 thereafter, the county assessor shall, using the data
9 available on the Department of Revenue's website, calculate
10 and make available on its website the combined expenditure
11 amounts used in the definition of "qualified rehabilitation"
12 for the applicable taxable year.
13 "Primary building systems", together with their related
14 rehabilitations, specifically approved for this program are:
15 (1) Electrical. All electrical work must comply with
16 applicable codes; it may consist of a combination of any
17 of the following alternatives:
18 (A) installing individual equipment and appliance
19 branch circuits as required by code (the minimum being
20 a kitchen appliance branch circuit);
21 (B) installing a new emergency service, including
22 emergency lighting with all associated conduits and
23 wiring;
24 (C) rewiring all existing feeder conduits ("home
25 runs") from the main switchgear to apartment area
26 distribution panels;
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1 (D) installing new in-wall conduits for
2 receptacles, switches, appliances, equipment, and
3 fixtures;
4 (E) replacing power wiring for receptacles,
5 switches, appliances, equipment, and fixtures;
6 (F) installing new light fixtures throughout the
7 building including closets and central areas;
8 (G) replacing, adding, or doing work as necessary
9 to bring all receptacles, switches, and other
10 electrical devices into code compliance;
11 (H) installing a new main service, including
12 conduit, cables into the building, and main disconnect
13 switch; and
14 (I) installing new distribution panels, including
15 all panel wiring, terminals, circuit breakers, and all
16 other panel devices.
17 (2) Heating. All heating work must comply with
18 applicable codes; it may consist of a combination of any
19 of the following alternatives:
20 (A) installing a new system to replace one of the
21 following heat distribution systems:
22 (i) piping and heat radiating units, including
23 new main line venting and radiator venting; or
24 (ii) duct work, diffusers, and cold air
25 returns; or
26 (iii) any other type of existing heat
HB2755 Enrolled - 1090 - LRB104 08253 BDA 18303 b
1 distribution and radiation/diffusion components;
2 or
3 (B) installing a new system to replace one of the
4 following heat generating units:
5 (i) hot water/steam boiler;
6 (ii) gas furnace; or
7 (iii) any other type of existing heat
8 generating unit.
9 (3) Plumbing. All plumbing work must comply with
10 applicable codes. Replace all or a part of the in-wall
11 supply and waste plumbing; however, main supply risers,
12 waste stacks and vents, and code-conforming waste lines
13 need not be replaced.
14 (4) Roofing. All roofing work must comply with
15 applicable codes; it may consist of either of the
16 following alternatives, separately or in combination:
17 (A) replacing all rotted roof decks and
18 insulation; or
19 (B) replacing or repairing leaking roof membranes
20 (10% is the suggested minimum replacement of
21 membrane); restoration of the entire roof is an
22 acceptable substitute for membrane replacement.
23 (5) Exterior doors and windows. Replace the exterior
24 doors and windows. Renovation of ornate entry doors is an
25 acceptable substitute for replacement.
26 (6) Floors, walls, and ceilings. Finishes must be
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1 replaced or covered over with new material. Acceptable
2 replacement or covering materials are as follows:
3 (A) floors must have new carpeting, vinyl tile,
4 ceramic, refurbished wood finish, or a similar
5 substitute;
6 (B) walls must have new drywall, including joint
7 taping and painting; or
8 (C) new ceilings must be either drywall, suspended
9 type, or a similar material.
10 (7) Exterior walls.
11 (A) replace loose or crumbling mortar and masonry
12 with new material;
13 (B) replace or paint wall siding and trim as
14 needed;
15 (C) bring porches and balconies to a sound
16 condition; or
17 (D) any combination of (A), (B), and (C).
18 (8) Elevators. Where applicable, at least 4 of the
19 following 7 alternatives must be accomplished:
20 (A) replace or rebuild the machine room controls
21 and refurbish the elevator machine (or equivalent
22 mechanisms in the case of hydraulic elevators);
23 (B) replace hoistway electro-mechanical items
24 including: ropes, switches, limits, buffers, levelers,
25 and deflector sheaves (or equivalent mechanisms in the
26 case of hydraulic elevators);
HB2755 Enrolled - 1092 - LRB104 08253 BDA 18303 b
1 (C) replace hoistway wiring;
2 (D) replace door operators and linkage;
3 (E) replace door panels at each opening;
4 (F) replace hall stations, car stations, and
5 signal fixtures; or
6 (G) rebuild the car shell and refinish the
7 interior.
8 (9) Health and safety.
9 (A) Install or replace fire suppression systems;
10 (B) install or replace security systems; or
11 (C) environmental remediation of lead-based paint,
12 asbestos, leaking underground storage tanks, or radon.
13 (10) Energy conservation improvements undertaken to
14 limit the amount of solar energy absorbed by a building's
15 roof or to reduce energy use for the property, including,
16 but not limited to, any of the following activities:
17 (A) installing or replacing reflective roof
18 coatings (flat roofs);
19 (B) installing or replacing R-49 roof insulation;
20 (C) installing or replacing R-19 perimeter wall
21 insulation;
22 (D) installing or replacing insulated entry doors;
23 (E) installing or replacing Low E, insulated
24 windows;
25 (F) installing or replacing WaterSense labeled
26 plumbing fixtures;
HB2755 Enrolled - 1093 - LRB104 08253 BDA 18303 b
1 (G) installing or replacing 90% or better sealed
2 combustion heating systems;
3 (H) installing Energy Star hot water heaters;
4 (I) installing or replacing mechanical ventilation
5 to exterior for kitchens and baths;
6 (J) installing or replacing Energy Star
7 appliances;
8 (K) installing or replacing Energy Star certified
9 lighting in common areas; or
10 (L) installing or replacing grading and
11 landscaping to promote on-site water retention if the
12 retained water is used to replace water that is
13 provided from a municipal source.
14 (11) Accessibility improvements. All accessibility
15 improvements must comply with applicable codes. An owner
16 may make accessibility improvements to residential real
17 property to increase access for people with disabilities.
18 As used in this paragraph (11), "disability" has the
19 meaning given to that term in the Illinois Human Rights
20 Act. As used in this paragraph (11), "accessibility
21 improvements" means a home modification listed under the
22 Home Services Program administered by the Department of
23 Human Services (Part 686 of Title 89 of the Illinois
24 Administrative Code) including, but not limited to:
25 installation of ramps, grab bars, or wheelchair lifts;
26 widening doorways or hallways; re-configuring rooms and
HB2755 Enrolled - 1094 - LRB104 08253 BDA 18303 b
1 closets; and any other changes to enhance the independence
2 of people with disabilities.
3 (12) Any applicant who has purchased the property in
4 an arm's length transaction not more than 90 days before
5 applying for this reduced valuation may use the cost of
6 rehabilitation or repairs required by documented code
7 violations, up to a maximum of $2 per square foot, to meet
8 the qualifying rehabilitation requirements.
9 (Source: P.A. 102-175, eff. 7-29-21; 102-893, eff. 5-20-22.)
10 (35 ILCS 200/21-150)
11 Sec. 21-150. Time of applying for judgment. Except as
12 otherwise provided in this Section or by ordinance or
13 resolution enacted under subsection (c) of Section 21-40, in
14 any county with fewer than 3,000,000 inhabitants, all
15 applications for judgment and order of sale for taxes and
16 special assessments on delinquent properties shall be made
17 within 90 days after the second installment due date. In Cook
18 County, all applications for judgment and order of sale for
19 taxes and special assessments on delinquent properties shall
20 be made (i) by July 1, 2011 for tax year 2009, (ii) by July 1,
21 2012 for tax year 2010, (iii) by July 1, 2013 for tax year
22 2011, (iv) by July 1, 2014 for tax year 2012, (v) by July 1,
23 2015 for tax year 2013, (vi) by May 1, 2016 for tax year 2014,
24 (vii) by March 1, 2017 for tax year 2015, (viii) by April 1 of
25 the next calendar year after the second installment due date
HB2755 Enrolled - 1095 - LRB104 08253 BDA 18303 b
1 for tax year 2016 and 2017, and (ix) within 365 days of the
2 second installment due date for each tax year thereafter.
3 Notwithstanding these dates, in Cook County, the
4 application for judgment and order of sale for the 2018 annual
5 tax sale that would normally be held in calendar year 2020
6 shall not be filed earlier than the first day of the first
7 month during which there is no longer a statewide COVID-19
8 public health emergency, as evidenced by an effective disaster
9 declaration of the Governor covering all counties in the
10 State, except that in no event may this application for
11 judgment and order of sale be filed later than October 1, 2021.
12 When a tax sale is delayed because of a statewide COVID-19
13 public health emergency, no subsequent annual tax sale may
14 begin earlier than 180 days after the last day of the prior
15 delayed tax sale, and no scavenger tax sale may begin earlier
16 than 90 days after the last day of the prior delayed tax sale.
17 In those counties which have adopted an ordinance under
18 Section 21-40, the application for judgment and order of sale
19 for delinquent taxes shall be made in December.
20 Notwithstanding these dates, in Cook County, the
21 application for judgment and order of sale for the 2023 annual
22 tax sale that would normally be held in calendar year 2025
23 shall be filed on or before March 10, 2026. Notwithstanding
24 Sections 9-260, 18-250, 20-100, 21-15, 21-25, and 21-45, in
25 Cook County, interest shall not accrue between September 2,
26 2025 and April 1, 2026 on delinquent warrant year 2023 tax
HB2755 Enrolled - 1096 - LRB104 08253 BDA 18303 b
1 balances.
2 In the 10 years next following the completion of a general
3 reassessment of property in any county with 3,000,000 or more
4 inhabitants, made under an order of the Department,
5 applications for judgment and order of sale shall be made as
6 soon as may be and on the day specified in the advertisement
7 required by Section 21-110 and 21-115. If for any cause the
8 court is not held on the day specified, the cause shall stand
9 continued, and it shall be unnecessary to re-advertise the
10 list or notice.
11 Within 30 days after the day specified for the application
12 for judgment the court shall hear and determine the matter. If
13 judgment is rendered, the sale shall begin on the date within 5
14 business days specified in the notice as provided in Section
15 21-115. If the collector is prevented from advertising and
16 obtaining judgment within the time periods specified by this
17 Section, the collector may obtain judgment at any time
18 thereafter; but if the failure arises by the county
19 collector's not complying with any of the requirements of this
20 Code, he or she shall be held on his or her official bond for
21 the full amount of all taxes and special assessments charged
22 against him or her. Any failure on the part of the county
23 collector shall not be allowed as a valid objection to the
24 collection of any tax or assessment, or to entry of a judgment
25 against any delinquent properties included in the application
26 of the county collector.
HB2755 Enrolled - 1097 - LRB104 08253 BDA 18303 b
1 As used in this Section, "warrant year" means the year
2 preceding the calendar year in which the taxes first became
3 due and payable.
4 (Source: P.A. 101-635, eff. 6-5-20; 102-519, eff. 8-20-21.)
5 Section 50-920. The Property Tax Code is amended by
6 changing Section 20-15 as follows:
7 (35 ILCS 200/20-15)
8 Sec. 20-15. Information on bill or separate statement.
9 There shall be printed on each bill, or on a separate slip
10 which shall be mailed with the bill:
11 (a) a statement itemizing the rate at which taxes have
12 been extended for each of the taxing districts in the
13 county in whose district the property is located, and in
14 those counties utilizing electronic data processing
15 equipment the dollar amount of tax due from the person
16 assessed allocable to each of those taxing districts,
17 including a separate statement of the dollar amount of tax
18 due which is allocable to a tax levied under the Illinois
19 Local Library Act or to any other tax levied by a
20 municipality or township for public library purposes,
21 (b) a separate statement for each of the taxing
22 districts of the dollar amount of tax due which is
23 allocable to a tax levied under the Illinois Pension Code
24 or to any other tax levied by a municipality or township
HB2755 Enrolled - 1098 - LRB104 08253 BDA 18303 b
1 for public pension or retirement purposes,
2 (b-5) a list of each tax increment financing (TIF)
3 district in which the property is located, and the dollar
4 amount of tax due that is allocable to the TIF district,
5 and each redevelopment project that (i) is associated with
6 the TIF district and (ii) has been completed during or
7 before the taxable year for which the bill is prepared or
8 is in the process of being completed during that taxable
9 year,
10 (c) the total tax rate,
11 (d) the total amount of tax due, and
12 (e) the amount by which the total tax and the tax
13 allocable to each taxing district differs from the
14 taxpayer's last prior tax bill.
15 The county treasurer shall ensure that only those taxing
16 districts in which a parcel of property is located shall be
17 listed on the bill for that property.
18 In all counties the statement shall also provide:
19 (1) the property index number or other suitable
20 description,
21 (2) the assessment of the property,
22 (3) the statutory amount of each homestead exemption
23 applied to the property,
24 (4) the assessed value of the property after
25 application of all homestead exemptions,
26 (5) the equalization factors imposed by the county and
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1 by the Department, and
2 (6) the equalized assessment resulting from the
3 application of the equalization factors to the basic
4 assessment.
5 In all counties which do not classify property for
6 purposes of taxation, for property on which a single family
7 residence is situated the statement shall also include a
8 statement to reflect the fair cash value determined for the
9 property. In all counties which classify property for purposes
10 of taxation in accordance with Section 4 of Article IX of the
11 Illinois Constitution, for parcels of residential property in
12 the lowest assessment classification the statement shall also
13 include a statement to reflect the fair cash value determined
14 for the property.
15 In all counties, the statement must include information
16 that certain taxpayers may be eligible for tax exemptions,
17 abatements, and other assistance programs and that, for more
18 information, taxpayers should consult with the office of their
19 township or county assessor and with the Department of
20 Revenue. For bills mailed on or after January 1, 2026, the
21 statement must include, in bold face type, a list of
22 exemptions available to taxpayers and contact information for
23 the chief county assessment officer.
24 In counties which use the estimated or accelerated billing
25 methods, these statements shall only be provided with the
26 final installment of taxes due. The provisions of this Section
HB2755 Enrolled - 1100 - LRB104 08253 BDA 18303 b
1 create a mandatory statutory duty. They are not merely
2 directory or discretionary. The failure or neglect of the
3 collector to mail the bill, or the failure of the taxpayer to
4 receive the bill, shall not affect the validity of any tax, or
5 the liability for the payment of any tax.
6 (Source: P.A. 103-592, eff. 1-1-25.)
7 Section 50-925. The River Edge Redevelopment Zone Act is
8 amended by changing Section 10-5.3 as follows:
9 (65 ILCS 115/10-5.3)
10 Sec. 10-5.3. Certification of River Edge Redevelopment
11 Zones.
12 (a) Approval of designated River Edge Redevelopment Zones
13 shall be made by the Department by certification of the
14 designating ordinance. The Department shall promptly issue a
15 certificate for each zone upon its approval. The certificate
16 shall be signed by the Director of the Department, shall make
17 specific reference to the designating ordinance, which shall
18 be attached thereto, and shall be filed in the office of the
19 Secretary of State. A certified copy of the River Edge
20 Redevelopment Zone Certificate, or a duplicate original
21 thereof, shall be recorded in the office of the recorder of
22 deeds of the county in which the River Edge Redevelopment Zone
23 lies.
24 (b) A River Edge Redevelopment Zone shall be effective
HB2755 Enrolled - 1101 - LRB104 08253 BDA 18303 b
1 upon its certification. The Department shall transmit a copy
2 of the certification to the Department of Revenue, and to the
3 designating municipality. Upon certification of a River Edge
4 Redevelopment Zone, the terms and provisions of the
5 designating ordinance shall be in effect, and may not be
6 amended or repealed except in accordance with Section 10-5.4.
7 (c) A River Edge Redevelopment Zone shall be in effect for
8 the period stated in the certificate, which shall in no event
9 exceed 30 calendar years. Zones shall terminate at midnight of
10 December 31 of the final calendar year of the certified term,
11 except as provided in Section 10-5.4.
12 (d) In calendar years 2006 and 2007, the Department may
13 certify one pilot River Edge Redevelopment Zone in the City of
14 East St. Louis, one pilot River Edge Redevelopment Zone in the
15 City of Rockford, and one pilot River Edge Redevelopment Zone
16 in the City of Aurora.
17 In calendar year 2009, the Department may certify one
18 pilot River Edge Redevelopment Zone in the City of Elgin.
19 On or after the effective date of this amendatory Act of
20 the 97th General Assembly, the Department may certify one
21 additional pilot River Edge Redevelopment Zone in the City of
22 Peoria.
23 On or after the effective date of this amendatory Act of
24 the 103rd General Assembly, the Department may certify 2
25 additional pilot River Edge Redevelopment Zones, including one
26 in the City of Joliet and one in the City of Kankakee.
HB2755 Enrolled - 1102 - LRB104 08253 BDA 18303 b
1 On or after the effective date of this amendatory Act of
2 the 103rd General Assembly, the Department may certify 7
3 additional pilot River Edge Redevelopment Zones, including one
4 in the City of East Moline, one in the City of Moline, one in
5 the City of Ottawa, one in the City of LaSalle, one in the City
6 of Peru, one in the City of Rock Island, and one in the City of
7 Quincy.
8 On or after the effective date of this amendatory Act of
9 the 104th General Assembly, the Department may certify 2
10 additional pilot River Edge Redevelopment Zones, including one
11 in the City of Alton and one in the City of Sterling.
12 After certifying the additional pilot River Edge
13 Redevelopment Zones authorized by the above paragraphs, the
14 Department may not certify any additional River Edge
15 Redevelopment Zones, but it may amend and rescind
16 certifications of existing River Edge Redevelopment Zones in
17 accordance with Section 10-5.4, except that no River Edge
18 Redevelopment Zone may be extended on or after the effective
19 date of this amendatory Act of the 97th General Assembly. Each
20 River Edge Redevelopment Zone in existence on the effective
21 date of this amendatory Act of the 97th General Assembly shall
22 continue until its scheduled termination under this Act,
23 unless the Zone is decertified sooner. At the time of its term
24 expiration each River Edge Redevelopment Zone will become an
25 open enterprise zone, available for the previously designated
26 area or a different area to compete for designation as an
HB2755 Enrolled - 1103 - LRB104 08253 BDA 18303 b
1 enterprise zone. No preference for designation as a Zone will
2 be given to the previously designated area.
3 (e) A municipality in which a River Edge Redevelopment
4 Zone has been certified must submit to the Department, within
5 60 days after the certification, a plan for encouraging the
6 participation by minority persons, women, persons with
7 disabilities, and veterans in the zone. The Department may
8 assist the municipality in developing and implementing the
9 plan. The terms "minority person", "woman", and "person with a
10 disability" have the meanings set forth under Section 2 of the
11 Business Enterprise for Minorities, Women, and Persons with
12 Disabilities Act. "Veteran" means an Illinois resident who is
13 a veteran as defined in subsection (h) of Section 1491 of Title
14 10 of the United States Code.
15 (Source: P.A. 103-9, eff. 6-7-23; 103-595, eff. 6-26-24.)
16 ARTICLE 55
17 Section 55-5. The Motor Fuel Tax Law is amended by
18 changing Sections 1.2, 1.20, 3, 3d, 5, 6, 7, 11.5, 12, 12a, 13,
19 14a, 15, and 16 as follows:
20 (35 ILCS 505/1.2) (from Ch. 120, par. 417.2)
21 Sec. 1.2. Distributor. "Distributor" means a person who
22 does any of the following:
23 (1) either (i) produces motor fuel in this State;
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1 (2) , refines motor fuel in this State;
2 (3) , blends motor fuel in this State;
3 (4) , compounds motor fuel in this State;
4 (5) or manufactures motor fuel in this State;
5 (6) , or (ii) transports motor fuel into this State;
6 (7) , or (iii) exports motor fuel out of this State; or
7 (8) distributes , or (iv) engages in the distribution
8 of motor fuel primarily by tank car or tank truck, or both,
9 and who operates an Illinois bulk plant where the person
10 he or she has active bulk storage capacity of not less than
11 20,000 30,000 gallons for motor fuel gasoline as defined
12 in item (A) of Section 5 of this Law.
13 "Distributor" does not, however, include a person who
14 receives or transports into this State and sells or uses motor
15 fuel under such circumstances as preclude the collection of
16 the tax herein imposed, by reason of the provisions of the
17 constitution and statutes of the United States. However, a
18 person operating a motor vehicle into the State, may transport
19 motor fuel in the ordinary fuel tank attached to the motor
20 vehicle for the operation of the motor vehicle, without being
21 considered a distributor. Any railroad registered under
22 Section 18c-7201 of the Illinois Vehicle Code may deliver
23 special fuel directly into the fuel supply tank of a
24 locomotive owned, operated, or controlled by any other
25 railroad registered under Section 18c-7201 of the Illinois
26 Vehicle Code without being considered a distributor or
HB2755 Enrolled - 1105 - LRB104 08253 BDA 18303 b
1 supplier.
2 (Source: P.A. 96-1384, eff. 7-29-10.)
3 (35 ILCS 505/1.20) (from Ch. 120, par. 417.20)
4 Sec. 1.20. Receiver. "Receiver" means a person who does
5 any of the following:
6 (1) either produces, refines, blends, compounds or
7 manufactures fuel in this State;
8 (2) , or transports fuel into this State;
9 (3) or receives fuel transported to him from without
10 the State;
11 (4) or exports fuel out of this State; or
12 (5) distributes , or who is engaged in distribution of
13 fuel primarily by tank car or tank truck, or both, and who
14 operates an Illinois bulk plant where the person he has
15 active fuel bulk storage capacity of not less than 20,000
16 30,000 gallons.
17 (Source: P.A. 86-125; 86-958.)
18 (35 ILCS 505/3) (from Ch. 120, par. 419)
19 Sec. 3. Application for distributor's license.
20 (a) No person shall act as a distributor of motor fuel
21 within this State without first securing a license to act as a
22 distributor of motor fuel from the Department. Application for
23 such license shall be made to the Department upon blanks
24 furnished by it. The application shall be signed and verified,
HB2755 Enrolled - 1106 - LRB104 08253 BDA 18303 b
1 and shall contain such information as the Department deems
2 necessary. A blender shall, in addition to securing a
3 distributor's license, make application to the Department for
4 a blender's permit, setting forth in the application such
5 information as the Department deems necessary. The applicant
6 for a distributor's license shall also file with the
7 Department a bond on a form to be approved by and with a surety
8 or sureties satisfactory to the Department conditioned upon
9 such applicant paying to the State of Illinois all monies
10 becoming due by reason of the sale, export, or use of motor
11 fuel by the applicant, together with all penalties and
12 interest thereon. The Department shall fix the penalty of such
13 bond in each case taking into consideration the amount of
14 motor fuel expected to be sold, distributed, exported, and
15 used by such applicant and the penalty fixed by the Department
16 shall be such, as in its opinion, will protect the State of
17 Illinois against failure to pay the amount hereinafter
18 provided on motor fuel sold, distributed, exported, and used,
19 but the amount of the penalty fixed by the Department shall not
20 exceed twice the monthly amount that would be collectable as a
21 tax in the event of a sale on all the motor fuel sold,
22 distributed, exported, and used by the distributor inclusive
23 of tax-free sales, exports, use, or distribution. Upon receipt
24 of the application and bond in proper form, the Department
25 shall issue to the applicant a license to act as a distributor.
26 No person who is in default to the State for monies due under
HB2755 Enrolled - 1107 - LRB104 08253 BDA 18303 b
1 this Act for the sale, distribution, export, or use of motor
2 fuel shall receive a license to act as a distributor.
3 (b) A license shall not be granted to any person whose
4 principal place of business is in a state other than Illinois,
5 unless such person is licensed for motor fuel distribution or
6 export in the state in which the principal place of business is
7 located and that such person is not in default to that State
8 for any monies due for the sale, distribution, export, or use
9 of motor fuel.
10 (c) On January 1, 2026, all valid and unrevoked supplier's
11 licenses and their corresponding receiver's licenses issued by
12 the Department shall be converted by the Department to
13 distributor's licenses and corresponding receiver's licenses.
14 Beginning on January 1, 2026, holders of these converted
15 distributor's licenses shall be subject to the same provisions
16 and requirements as other licensed distributors under this
17 Law.
18 (Source: P.A. 96-1384, eff. 7-29-10.)
19 (35 ILCS 505/3d)
20 Sec. 3d. Right to blend.
21 (a) A distributor who is properly licensed and permitted
22 as a blender pursuant to this Act may blend petroleum-based
23 diesel fuel with biodiesel and sell the blended or unblended
24 product on any premises owned and operated by the distributor
25 for the purpose of supporting or facilitating the retail sale
HB2755 Enrolled - 1108 - LRB104 08253 BDA 18303 b
1 of motor fuel.
2 (b) A refiner or distributor supplier of petroleum-based
3 diesel fuel or biodiesel shall not refuse to sell or transport
4 to a distributor who is properly licensed and permitted as a
5 blender pursuant to this Act any petroleum-based diesel fuel
6 or biodiesel based on the distributor's or dealer's intent to
7 use that product for blending.
8 (Source: P.A. 102-700, eff. 4-19-22.)
9 (35 ILCS 505/5) (from Ch. 120, par. 421)
10 Sec. 5. Distributor's monthly return. Except as
11 hereinafter provided, a person holding a valid unrevoked
12 license to act as a distributor of motor fuel shall, between
13 the 1st and 20th days of each calendar month, make return to
14 the Department, showing an itemized statement of the number of
15 invoiced gallons of motor fuel of the types specified in this
16 Section which were purchased, acquired, received, or exported
17 during the preceding calendar month; the amount of such motor
18 fuel produced, refined, compounded, manufactured, blended,
19 sold, distributed, exported, and used by the licensed
20 distributor during the preceding calendar month; the amount of
21 such motor fuel lost or destroyed during the preceding
22 calendar month; the amount of such motor fuel on hand at the
23 close of business for such month; and such other reasonable
24 information as the Department may require. If a distributor's
25 only activities with respect to motor fuel are either: (1)
HB2755 Enrolled - 1109 - LRB104 08253 BDA 18303 b
1 production of alcohol in quantities of less than 10,000 proof
2 gallons per year or (2) blending alcohol in quantities of less
3 than 10,000 proof gallons per year which such distributor has
4 produced, he shall file returns on an annual basis with the
5 return for a given year being due by January 20 of the
6 following year. Distributors whose total production of alcohol
7 (whether blended or not) exceeds 10,000 proof gallons per
8 year, based on production during the preceding (calendar) year
9 or as reasonably projected by the Department if one calendar
10 year's record of production cannot be established, shall file
11 returns between the 1st and 20th days of each calendar month as
12 hereinabove provided.
13 The types of motor fuel referred to in the preceding
14 paragraph are: (A) All products commonly or commercially known
15 or sold as gasoline (including casing-head and absorption or
16 natural gasoline), gasohol, motor benzol or motor benzene
17 regardless of their classification or uses; and (B) all
18 combustible gases, not including liquefied natural gas, which
19 exist in a gaseous state at 60 degrees Fahrenheit and at 14.7
20 pounds per square inch absolute including, but not limited to,
21 liquefied petroleum gases used for highway purposes; and (C)
22 special fuel. Only those quantities of combustible gases
23 (example (B) above) which are used or sold by the distributor
24 to be used to propel motor vehicles on the public highways, or
25 which are delivered into a storage tank that is located at a
26 facility that has withdrawal facilities which are readily
HB2755 Enrolled - 1110 - LRB104 08253 BDA 18303 b
1 accessible to and are capable of dispensing combustible gases
2 into the fuel supply tanks of motor vehicles, shall be subject
3 to return. Distributors of liquefied natural gas are not
4 required to make returns under this Section with respect to
5 that liquefied natural gas unless (i) the liquefied natural
6 gas is dispensed into the fuel supply tank of any motor vehicle
7 or (ii) the liquefied natural gas is delivered into a storage
8 tank that is located at a facility that has withdrawal
9 facilities which are readily accessible to and are capable of
10 dispensing liquefied natural gas into the fuel supply tanks of
11 motor vehicles. For purposes of this Section, a facility is
12 considered to have withdrawal facilities that are not "readily
13 accessible to and capable of dispensing combustible gases into
14 the fuel supply tanks of motor vehicles" only if the
15 combustible gases or liquefied natural gas are delivered from:
16 (i) a dispenser hose that is short enough so that it will not
17 reach the fuel supply tank of a motor vehicle or (ii) a
18 dispenser that is enclosed by a fence or other physical
19 barrier so that a vehicle cannot pull alongside the dispenser
20 to permit fueling. For the purposes of this Act, liquefied
21 petroleum gases shall mean and include any material having a
22 vapor pressure not exceeding that allowed for commercial
23 propane composed predominantly of the following hydrocarbons,
24 either by themselves or as mixtures: Propane, Propylene,
25 Butane (normal butane or iso-butane) and Butylene (including
26 isomers).
HB2755 Enrolled - 1111 - LRB104 08253 BDA 18303 b
1 In case of a sale of special fuel to someone other than a
2 licensed distributor, or a licensed supplier, for a use other
3 than in motor vehicles, the distributor shall show in his
4 return the amount of invoiced gallons sold and the name and
5 address of the purchaser in addition to any other information
6 the Department may require.
7 All special fuel sold or used for non-highway purposes
8 must have a dye added in accordance with Section 4d of this
9 Law.
10 In case of a tax-free sale, as provided in Section 6, of
11 motor fuel which the distributor is required by this Section
12 to include in his return to the Department, the distributor in
13 his return shall show: (1) If the sale is made to another
14 licensed distributor the amount sold and the name, address and
15 license number of the purchasing distributor; (2) if the sale
16 is made to a person where delivery is made outside of this
17 State the name and address of such purchaser and the point of
18 delivery together with the date and amount delivered; (3) if
19 the sale is made to the Federal Government or its
20 instrumentalities the amount sold; (4) if the sale is made to a
21 municipal corporation owning and operating a local
22 transportation system for public service in this State the
23 name and address of such purchaser, and the amount sold, as
24 evidenced by official forms of exemption certificates properly
25 executed and furnished by such purchaser; (5) if the sale is
26 made to a privately owned public utility owning and operating
HB2755 Enrolled - 1112 - LRB104 08253 BDA 18303 b
1 2-axle vehicles designed and used for transporting more than 7
2 passengers, which vehicles are used as common carriers in
3 general transportation of passengers, are not devoted to any
4 specialized purpose and are operated entirely within the
5 territorial limits of a single municipality or of any group of
6 contiguous municipalities or in a close radius thereof, and
7 the operations of which are subject to the regulations of the
8 Illinois Commerce Commission, then the name and address of
9 such purchaser and the amount sold as evidenced by official
10 forms of exemption certificates properly executed and
11 furnished by the purchaser; (6) if the product sold is special
12 fuel and if the sale is made to a licensed supplier under
13 conditions which qualify the sale for tax exemption under
14 Section 6 of this Act, the amount sold and the name, address
15 and license number of the purchaser; and (6) (7) if a sale of
16 special fuel is made to someone other than a licensed
17 distributor, or a licensed supplier, for a use other than in
18 motor vehicles, by making a specific notation thereof on the
19 invoice or sales slip covering such sales and obtaining such
20 supporting documentation as may be required by the Department.
21 All special fuel sold or used for non-highway purposes
22 must have a dye added in accordance with Section 4d of this
23 Law.
24 A person whose license to act as a distributor of motor
25 fuel has been revoked shall make a return to the Department
26 covering the period from the date of the last return to the
HB2755 Enrolled - 1113 - LRB104 08253 BDA 18303 b
1 date of the revocation of the license, which return shall be
2 delivered to the Department not later than 10 days from the
3 date of the revocation or termination of the license of such
4 distributor; the return shall in all other respects be subject
5 to the same provisions and conditions as returns by
6 distributors licensed under the provisions of this Act.
7 The records, waybills and supporting documents kept by
8 railroads and other common carriers in the regular course of
9 business shall be prima facie evidence of the contents and
10 receipt of cars or tanks covered by those records, waybills or
11 supporting documents.
12 If the Department has reason to believe and does believe
13 that the amount shown on the return as purchased, acquired,
14 received, exported, sold, used, lost or destroyed is
15 incorrect, or that an amount of motor fuel of the types
16 required by the second paragraph of this Section to be
17 reported to the Department has not been correctly reported the
18 Department shall fix an amount for such receipt, sales,
19 export, use, loss or destruction according to its best
20 judgment and information, which amount so fixed by the
21 Department shall be prima facie correct. All returns shall be
22 made on forms prepared and furnished by the Department, and
23 shall contain such other information as the Department may
24 reasonably require. The return must be accompanied by
25 appropriate computer-generated magnetic media supporting
26 schedule data in the format required by the Department,
HB2755 Enrolled - 1114 - LRB104 08253 BDA 18303 b
1 unless, as provided by rule, the Department grants an
2 exception upon petition of a taxpayer. All licensed
3 distributors shall report all losses of motor fuel sustained
4 on account of fire, theft, spillage, spoilage, leakage, or any
5 other provable cause when filing the return for the period
6 during which the loss occurred. If the distributor reports
7 losses due to fire or theft, then the distributor must include
8 fire department or police department reports and any other
9 documentation that the Department may require. The mere making
10 of the report does not assure the allowance of the loss as a
11 reduction in tax liability. Losses of motor fuel as the result
12 of evaporation or shrinkage due to temperature variations may
13 not exceed 1% of the total gallons in storage at the beginning
14 of the month, plus the receipts of gallonage during the month,
15 minus the gallonage remaining in storage at the end of the
16 month. Any loss reported that is in excess of 1% shall be
17 subject to the tax imposed by Section 2 of this Law. On and
18 after July 1, 2001, for each 6-month period January through
19 June, net losses of motor fuel (for each category of motor fuel
20 that is required to be reported on a return) as the result of
21 evaporation or shrinkage due to temperature variations may not
22 exceed 1% of the total gallons in storage at the beginning of
23 each January, plus the receipts of gallonage each January
24 through June, minus the gallonage remaining in storage at the
25 end of each June. On and after July 1, 2001, for each 6-month
26 period July through December, net losses of motor fuel (for
HB2755 Enrolled - 1115 - LRB104 08253 BDA 18303 b
1 each category of motor fuel that is required to be reported on
2 a return) as the result of evaporation or shrinkage due to
3 temperature variations may not exceed 1% of the total gallons
4 in storage at the beginning of each July, plus the receipts of
5 gallonage each July through December, minus the gallonage
6 remaining in storage at the end of each December. Any net loss
7 reported that is in excess of this amount shall be subject to
8 the tax imposed by Section 2 of this Law. For purposes of this
9 Section, "net loss" means the number of gallons gained through
10 temperature variations minus the number of gallons lost
11 through temperature variations or evaporation for each of the
12 respective 6-month periods.
13 If any payment provided for in this Section exceeds the
14 distributor's liabilities under this Act, as shown on an
15 original return, the Department may authorize the distributor
16 to credit such excess payment against liability subsequently
17 to be remitted to the Department under this Act, in accordance
18 with reasonable rules adopted by the Department. If the
19 Department subsequently determines that all or any part of the
20 credit taken was not actually due to the distributor, the
21 distributor's discount shall be reduced by an amount equal to
22 the difference between the discount as applied to the credit
23 taken and that actually due, and that distributor shall be
24 liable for penalties and interest on such difference.
25 (Source: P.A. 100-9, eff. 7-1-17; 100-1171, eff. 1-4-19.)
HB2755 Enrolled - 1116 - LRB104 08253 BDA 18303 b
1 (35 ILCS 505/6) (from Ch. 120, par. 422)
2 Sec. 6. Collection of tax; distributors. A distributor who
3 sells or distributes any motor fuel, which he is required by
4 Section 5 to report to the Department when filing a return,
5 shall (except as hereinafter provided) collect at the time of
6 such sale and distribution, the amount of tax imposed under
7 this Act on all such motor fuel sold and distributed, and at
8 the time of making a return, the distributor shall pay to the
9 Department the amount so collected less a discount of 2%
10 through June 30, 2003 and 1.75% thereafter which is allowed to
11 reimburse the distributor for the expenses incurred in keeping
12 records, preparing and filing returns, collecting and
13 remitting the tax and supplying data to the Department on
14 request, and shall also pay to the Department an amount equal
15 to the amount that would be collectible as a tax in the event
16 of a sale thereof on all such motor fuel used by said
17 distributor during the period covered by the return. However,
18 no payment shall be made based upon dyed diesel fuel used by
19 the distributor for non-highway purposes. The discount shall
20 only be applicable to the amount of tax payment which
21 accompanies a return which is filed timely in accordance with
22 Section 5 of this Act. In each subsequent sale of motor fuel on
23 which the amount of tax imposed under this Act has been
24 collected as provided in this Section, the amount so collected
25 shall be added to the selling price, so that the amount of tax
26 is paid ultimately by the user of the motor fuel. However, no
HB2755 Enrolled - 1117 - LRB104 08253 BDA 18303 b
1 collection or payment shall be made in the case of the sale or
2 use of any motor fuel to the extent to which such sale or use
3 of motor fuel may not, under the constitution and statutes of
4 the United States, be made the subject of taxation by this
5 State. A person whose license to act as a distributor of fuel
6 has been revoked shall, at the time of making a return, also
7 pay to the Department an amount equal to the amount that would
8 be collectible as a tax in the event of a sale thereof on all
9 motor fuel, which he is required by the second paragraph of
10 Section 5 to report to the Department in making a return, and
11 which he had on hand on the date on which the license was
12 revoked, and with respect to which no tax had been previously
13 paid under this Act.
14 A distributor may make tax free sales of motor fuel, with
15 respect to which he is otherwise required to collect the tax,
16 only as specified in the following items 1 through 7.
17 1. When the sale is made to a person holding a valid
18 unrevoked license as a distributor, by making a specific
19 notation thereof on invoices or sales slip covering each
20 sale.
21 2. When the sale is made with delivery to a purchaser
22 outside of this State.
23 3. When the sale is made to the Federal Government or
24 its instrumentalities.
25 4. When the sale is made to a municipal corporation
26 owning and operating a local transportation system for
HB2755 Enrolled - 1118 - LRB104 08253 BDA 18303 b
1 public service in this State when an official certificate
2 of exemption is obtained in lieu of the tax.
3 5. When the sale is made to a privately owned public
4 utility owning and operating 2 axle vehicles designed and
5 used for transporting more than 7 passengers, which
6 vehicles are used as common carriers in general
7 transportation of passengers, are not devoted to any
8 specialized purpose and are operated entirely within the
9 territorial limits of a single municipality or of any
10 group of contiguous municipalities, or in a close radius
11 thereof, and the operations of which are subject to the
12 regulations of the Illinois Commerce Commission, when an
13 official certificate of exemption is obtained in lieu of
14 the tax.
15 6. (Blank). When a sale of special fuel is made to a
16 person holding a valid, unrevoked license as a supplier,
17 by making a specific notation thereof on the invoice or
18 sales slip covering each such sale.
19 7. When a sale of dyed diesel fuel is made by the
20 licensed distributor to the end user of the fuel who is not
21 a licensed distributor or a licensed supplier for
22 non-highway purposes and the fuel is (i) delivered from a
23 vehicle designed for the specific purpose of such sales
24 and delivered directly into a stationary bulk storage tank
25 that displays the notice required by Section 4f of this
26 Act, (ii) delivered from a vehicle designed for the
HB2755 Enrolled - 1119 - LRB104 08253 BDA 18303 b
1 specific purpose of such sales and delivered directly into
2 the fuel supply tanks of non-highway vehicles that are not
3 required to be registered for highway use, or (iii)
4 dispensed from a dyed diesel fuel dispensing facility that
5 has withdrawal facilities that are not readily accessible
6 to and are not capable of dispensing dyed diesel fuel into
7 the fuel supply tank of a motor vehicle.
8 A specific notation is required on the invoice or
9 sales slip covering such sales, and any supporting
10 documentation that may be required by the Department must
11 be obtained by the distributor. The distributor shall
12 obtain and keep the supporting documentation in such form
13 as the Department may require by rule.
14 For purposes of this item 7, a dyed diesel fuel
15 dispensing facility is considered to have withdrawal
16 facilities that are "not readily accessible to and not
17 capable of dispensing dyed diesel fuel into the fuel
18 supply tank of a motor vehicle" only if the dyed diesel
19 fuel is delivered from: (i) a dispenser hose that is short
20 enough so that it will not reach the fuel supply tank of a
21 motor vehicle or (ii) a dispenser that is enclosed by a
22 fence or other physical barrier so that a vehicle cannot
23 pull alongside the dispenser to permit fueling.
24 8. (Blank).
25 All special fuel sold or used for non-highway purposes
26 must have a dye added in accordance with Section 4d of this
HB2755 Enrolled - 1120 - LRB104 08253 BDA 18303 b
1 Law.
2 All suits or other proceedings brought for the purpose of
3 recovering any taxes, interest or penalties due the State of
4 Illinois under this Act may be maintained in the name of the
5 Department.
6 (Source: P.A. 102-1019, eff. 5-27-22.)
7 (35 ILCS 505/7) (from Ch. 120, par. 423)
8 Sec. 7. Any person who is , not licensed as a receiver or ,
9 distributor and who purchases or supplier, purchasing fuel or
10 motor fuel as to which there has been no charge made to him of
11 the tax imposed by Section 2 or 2a, or both, shall make payment
12 of the tax imposed by Section 2a of this Act and if the same be
13 thereafter used in the operation of a motor vehicle upon the
14 public highways, make payment of the motor fuel tax computed
15 at the rate prescribed in Section 2 of this Act on the amount
16 so used, such payment to be made to the Department not later
17 than the 20th day of the month succeeding the month in which
18 the motor fuel was so used.
19 This Section does not apply in cases of such use of motor
20 fuel which was obtained tax-free under an official certificate
21 of exemption mentioned in Sections 6 and 6a of this Act.
22 (Source: P.A. 86-125.)
23 (35 ILCS 505/11.5) (from Ch. 120, par. 427a)
24 Sec. 11.5. In the event that liability upon the bond filed
HB2755 Enrolled - 1121 - LRB104 08253 BDA 18303 b
1 by a distributor, supplier, or receiver with the Department
2 shall be discharged or reduced, whether by judgment rendered,
3 payment made or otherwise, or if in the opinion of the
4 Department the bond of any distributor, supplier, or receiver
5 theretofore given shall become unsatisfactory, then the
6 distributor, supplier, or receiver shall forthwith, upon the
7 written demand of the Department, file a new bond in the same
8 manner and form and in an amount and with sureties
9 satisfactory to the Department, failing which the Department
10 shall forthwith revoke the license of the distributor,
11 supplier, or receiver.
12 If such new bond shall be furnished by the distributor,
13 supplier, or receiver as above provided, the Department shall
14 cancel the bond for which such new bond shall be substituted.
15 Any surety on any bond furnished by any distributor,
16 supplier, or receiver shall be released and discharged from
17 any and all liability to the State of Illinois accruing on such
18 bond after the expiration of 60 days from the date upon which
19 such surety shall have filed with the Department written
20 request so to be released and discharged. But such request
21 shall not operate to relieve, release or discharge such surety
22 from any liability already accrued, or which shall accrue,
23 before the expiration of said 60-day period. The Department
24 shall, promptly on receipt of such request, notify the
25 distributor, supplier, or receiver and, unless such
26 distributor, supplier, or receiver shall on or before the
HB2755 Enrolled - 1122 - LRB104 08253 BDA 18303 b
1 expiration of such 60-day period file with the Department a
2 new bond with a surety or sureties satisfactory to the
3 Department in the amount and form hereinbefore provided, the
4 Department shall forthwith cancel the license of such
5 distributor, supplier, or receiver. If such new bond shall be
6 furnished by said distributor, supplier, or receiver as above
7 provided, the Department shall cancel the bond for which such
8 new bond shall be substituted.
9 (Source: P.A. 91-173, eff. 1-1-00.)
10 (35 ILCS 505/12) (from Ch. 120, par. 428)
11 Sec. 12. It is the duty of every distributor and ,
12 receiver, and supplier under this Act to keep within this
13 State or at some office outside this State for any period for
14 which the Department is authorized to issue a Notice of Tax
15 Liability to the distributor or , receiver, or supplier
16 records and books showing all purchases, receipts, losses
17 through any cause, sales, distribution and use of motor fuel,
18 aviation fuels, home heating oils, and kerosene, and products
19 used for the purpose of blending to produce motor fuel, which
20 records and books shall, at all times during business hours of
21 the day, be subject to inspection by the Department, or its
22 duly authorized agents and employees. For purposes of this
23 Section, "records" means all data maintained by the taxpayer
24 including data on paper, microfilm, microfiche or any type of
25 machine-sensible data compilation. The Department may, in its
HB2755 Enrolled - 1123 - LRB104 08253 BDA 18303 b
1 discretion, prescribe reasonable and uniform methods for
2 keeping of records and books by licensees and that set forth
3 requirements for the form and format of records that must be
4 maintained in order to comply with any recordkeeping
5 requirement under this Act.
6 (Source: P.A. 91-173, eff. 1-1-00.)
7 (35 ILCS 505/12a) (from Ch. 120, par. 428a)
8 Sec. 12a. (a) Any duly authorized agent or employee of the
9 Department shall have authority to enter in or upon the
10 premises of any manufacturer, vendor, dealer, retailer,
11 distributor, receiver, supplier or user of motor fuel or
12 special fuels during the regular business hours in order to
13 examine books, records, invoices, storage tanks, and any other
14 applicable equipment pertaining to motor fuel, aviation fuels,
15 home heating oils, kerosene, or special fuels, to determine
16 whether or not the taxes imposed by this Act have been paid.
17 (b) Any duly authorized agent of the Department, upon
18 presenting appropriate credentials and a written notice to the
19 person who owns, operates, or controls the place to be
20 inspected, shall have the authority to enter any place and to
21 conduct inspections in accordance with subsections (b) through
22 (g) of this Section.
23 (c) Inspections will be performed in a reasonable manner
24 and at times that are reasonable under the circumstances,
25 taking into consideration the normal business hours of the
HB2755 Enrolled - 1124 - LRB104 08253 BDA 18303 b
1 place to be entered.
2 (d) Inspections may be at any place at which taxable motor
3 fuel is or may be produced or stored or at any inspection site
4 where evidence of the following activities may be discovered:
5 (1) Where any dyed diesel fuel is sold or held for sale
6 by any person for any use which the person knows or has
7 reason to know is not a nontaxable use of such fuel.
8 (2) Where any dyed diesel fuel is held for use or used
9 by any person for a use other than a nontaxable use and the
10 person knew, or had reason to know, that the fuel was dyed
11 according to Section 4d.
12 (3) Where any person willfully alters, or attempts to
13 alter, the strength or composition of any dye or marking
14 done pursuant to Section 4d of this Law.
15 The places may include, but are not limited to, the
16 following:
17 (1) Any terminal.
18 (2) Any fuel storage facility that is not a terminal.
19 (3) Any retail fuel facility.
20 (4) Any designated inspection site.
21 (e) Duly authorized agents of the Department may
22 physically inspect, examine, or otherwise search any tank,
23 reservoir, or other container that can or may be used for the
24 production, storage, or transportation of fuel, fuel dyes, or
25 fuel markers. Inspection may also be made of any equipment
26 used for, or in connection with, production, storage, or
HB2755 Enrolled - 1125 - LRB104 08253 BDA 18303 b
1 transportation of fuel, fuel dyes, or fuel markers. This
2 includes any equipment used for the dyeing or marking of fuel.
3 This also includes books and records, if any, that are
4 maintained at the place of inspection and are kept to
5 determine tax liability under this Law.
6 (f) Duly authorized agents of the Department may detain
7 any motor vehicle, train, barge, ship, or vessel for the
8 purpose of inspecting its fuel tanks and storage tanks.
9 Detainment will be either on the premises under inspection or
10 at a designated inspection site. Detainment may continue for a
11 reasonable period of time as is necessary to determine the
12 amount and composition of the fuel.
13 (g) Duly authorized agents of the Department may take and
14 remove samples of fuel in quantities as are reasonably
15 necessary to determine the composition of the fuel.
16 (h) (1) Any person that refuses to allow an inspection
17 shall pay a $1,000 penalty for each refusal. This penalty
18 is in addition to any other penalty or tax that may be
19 imposed upon that person or any other person liable for
20 tax under this Law. All penalties received under this
21 subsection shall be deposited into the Tax Compliance and
22 Administration Fund.
23 (2) In addition, any licensee who refuses to allow an
24 inspection shall be subject to license revocation as
25 provided by Section 16 of this Law.
26 (Source: P.A. 91-173, eff. 1-1-00.)
HB2755 Enrolled - 1126 - LRB104 08253 BDA 18303 b
1 (35 ILCS 505/13) (from Ch. 120, par. 429)
2 Sec. 13. Refund of tax paid. Any person other than a
3 distributor or supplier, who loses motor fuel through any
4 cause or uses motor fuel (upon which he has paid the amount
5 required to be collected under Section 2 of this Act) for any
6 purpose other than operating a motor vehicle upon the public
7 highways or waters, shall be reimbursed and repaid the amount
8 so paid.
9 Any person who purchases motor fuel in Illinois and uses
10 that motor fuel in another state and that other state imposes a
11 tax on the use of such motor fuel shall be reimbursed and
12 repaid the amount of Illinois tax paid under Section 2 of this
13 Act on the motor fuel used in such other state. Reimbursement
14 and repayment shall be made by the Department upon receipt of
15 adequate proof of taxes directly paid to another state and the
16 amount of motor fuel used in that state.
17 Claims based in whole or in part on taxes paid to another
18 state shall include (i) a certified copy of the tax return
19 filed with such other state by the claimant; (ii) a copy of
20 either the cancelled check paying the tax due on such return,
21 or a receipt acknowledging payment of the tax due on such tax
22 return; and (iii) such other information as the Department may
23 reasonably require. This paragraph shall not apply to taxes
24 paid on returns filed under Section 13a.3 of this Act.
25 Any person who purchases motor fuel use tax decals as
HB2755 Enrolled - 1127 - LRB104 08253 BDA 18303 b
1 required by Section 13a.4 and pays an amount of fees for such
2 decals that exceeds the amount due shall be reimbursed and
3 repaid the amount of the decal fees that are deemed by the
4 department to be in excess of the amount due. Alternatively,
5 any person who purchases motor fuel use tax decals as required
6 by Section 13a.4 may credit any excess decal payment verified
7 by the Department against amounts subsequently due for the
8 purchase of additional decals, until such time as no excess
9 payment remains.
10 Claims for such reimbursement must be made to the
11 Department of Revenue, duly verified by the claimant (or by
12 the claimant's legal representative if the claimant has died
13 or become a person under legal disability), upon forms
14 prescribed by the Department. The claim must state such facts
15 relating to the purchase, importation, manufacture or
16 production of the motor fuel by the claimant as the Department
17 may deem necessary, and the time when, and the circumstances
18 of its loss or the specific purpose for which it was used (as
19 the case may be), together with such other information as the
20 Department may reasonably require. No claim based upon idle
21 time shall be allowed. Claims for reimbursement for
22 overpayment of decal fees shall be made to the Department of
23 Revenue, duly verified by the claimant (or by the claimant's
24 legal representative if the claimant has died or become a
25 person under legal disability), upon forms prescribed by the
26 Department. The claim shall state facts relating to the
HB2755 Enrolled - 1128 - LRB104 08253 BDA 18303 b
1 overpayment of decal fees, together with such other
2 information as the Department may reasonably require. Claims
3 for reimbursement of overpayment of decal fees paid on or
4 after January 1, 2011 must be filed not later than one year
5 after the date on which the fees were paid by the claimant. If
6 it is determined that the Department should reimburse a
7 claimant for overpayment of decal fees, the Department shall
8 first apply the amount of such refund against any tax or
9 penalty or interest due by the claimant under Section 13a of
10 this Act.
11 Claims for full reimbursement for taxes paid on or before
12 December 31, 1999 must be filed not later than one year after
13 the date on which the tax was paid by the claimant. If,
14 however, a claim for such reimbursement otherwise meeting the
15 requirements of this Section is filed more than one year but
16 less than 2 years after that date, the claimant shall be
17 reimbursed at the rate of 80% of the amount to which he would
18 have been entitled if his claim had been timely filed.
19 Claims for full reimbursement for taxes paid on or after
20 January 1, 2000 must be filed not later than 2 years after the
21 date on which the tax was paid by the claimant.
22 The Department may make such investigation of the
23 correctness of the facts stated in such claims as it deems
24 necessary. When the Department has approved any such claim, it
25 shall pay to the claimant (or to the claimant's legal
26 representative, as such if the claimant has died or become a
HB2755 Enrolled - 1129 - LRB104 08253 BDA 18303 b
1 person under legal disability) the reimbursement provided in
2 this Section, out of any moneys appropriated to it for that
3 purpose.
4 Any distributor or supplier who has paid the tax imposed
5 by Section 2 of this Act upon motor fuel lost or used by such
6 distributor or supplier for any purpose other than operating a
7 motor vehicle upon the public highways or waters may file a
8 claim for credit or refund to recover the amount so paid. Such
9 claims shall be filed on forms prescribed by the Department.
10 Such claims shall be made to the Department, duly verified by
11 the claimant (or by the claimant's legal representative if the
12 claimant has died or become a person under legal disability),
13 upon forms prescribed by the Department. The claim shall state
14 such facts relating to the purchase, importation, manufacture
15 or production of the motor fuel by the claimant as the
16 Department may deem necessary and the time when the loss or
17 nontaxable use occurred, and the circumstances of its loss or
18 the specific purpose for which it was used (as the case may
19 be), together with such other information as the Department
20 may reasonably require. Claims must be filed not later than
21 one year after the date on which the tax was paid by the
22 claimant.
23 The Department may make such investigation of the
24 correctness of the facts stated in such claims as it deems
25 necessary. When the Department approves a claim, the
26 Department shall issue a refund or credit memorandum as
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1 requested by the taxpayer, to the distributor or supplier who
2 made the payment for which the refund or credit is being given
3 or, if the distributor or supplier has died or become
4 incompetent, to such distributor's or supplier's legal
5 representative, as such. The amount of such credit memorandum
6 shall be credited against any tax due or to become due under
7 this Act from the distributor or supplier who made the payment
8 for which credit has been given.
9 Any credit or refund that is allowed under this Section
10 shall bear interest at the rate and in the manner specified in
11 the Uniform Penalty and Interest Act.
12 In case the distributor or supplier requests and the
13 Department determines that the claimant is entitled to a
14 refund, such refund shall be made only from such appropriation
15 as may be available for that purpose. If it appears unlikely
16 that the amount appropriated would permit everyone having a
17 claim allowed during the period covered by such appropriation
18 to elect to receive a cash refund, the Department, by rule or
19 regulation, shall provide for the payment of refunds in
20 hardship cases and shall define what types of cases qualify as
21 hardship cases.
22 In any case in which there has been an erroneous refund of
23 tax or fees payable under this Section, a notice of tax
24 liability may be issued at any time within 3 years from the
25 making of that refund, or within 5 years from the making of
26 that refund if it appears that any part of the refund was
HB2755 Enrolled - 1131 - LRB104 08253 BDA 18303 b
1 induced by fraud or the misrepresentation of material fact.
2 The amount of any proposed assessment set forth by the
3 Department shall be limited to the amount of the erroneous
4 refund.
5 If no tax is due and no proceeding is pending to determine
6 whether such distributor or supplier is indebted to the
7 Department for tax, the credit memorandum so issued may be
8 assigned and set over by the lawful holder thereof, subject to
9 reasonable rules of the Department, to any other licensed
10 distributor or supplier who is subject to this Act, and the
11 amount thereof applied by the Department against any tax due
12 or to become due under this Act from such assignee.
13 If the payment for which the distributor's or supplier's
14 claim is filed is held in the protest fund of the State
15 Treasury during the pendency of the claim for credit
16 proceedings pursuant to the order of the court in accordance
17 with Section 2a of the State Officers and Employees Money
18 Disposition Act and if it is determined by the Department or by
19 the final order of a reviewing court under the Administrative
20 Review Law that the claimant is entitled to all or a part of
21 the credit claimed, the claimant, instead of receiving a
22 credit memorandum from the Department, shall receive a cash
23 refund from the protest fund as provided for in Section 2a of
24 the State Officers and Employees Money Disposition Act.
25 If any person ceases to be licensed as a distributor or
26 supplier while still holding an unused credit memorandum
HB2755 Enrolled - 1132 - LRB104 08253 BDA 18303 b
1 issued under this Act, such person may, at his election
2 (instead of assigning the credit memorandum to a licensed
3 distributor or licensed supplier under this Act), surrender
4 such unused credit memorandum to the Department and receive a
5 refund of the amount to which such person is entitled.
6 For claims based upon taxes paid on or before December 31,
7 2000, a claim based upon the use of undyed diesel fuel shall
8 not be allowed except (i) if allowed under the following
9 paragraph or (ii) for undyed diesel fuel used by a commercial
10 vehicle, as that term is defined in Section 1-111.8 of the
11 Illinois Vehicle Code, for any purpose other than operating
12 the commercial vehicle upon the public highways and unlicensed
13 commercial vehicles operating on private property. Claims
14 shall be limited to commercial vehicles that are operated for
15 both highway purposes and any purposes other than operating
16 such vehicles upon the public highways.
17 For claims based upon taxes paid on or after January 1,
18 2000, a claim based upon the use of undyed diesel fuel shall
19 not be allowed except (i) if allowed under the preceding
20 paragraph or (ii) for claims for the following:
21 (1) Undyed diesel fuel used (i) in a manufacturing
22 process, as defined in Section 2-45 of the Retailers'
23 Occupation Tax Act, wherein the undyed diesel fuel becomes
24 a component part of a product or by-product, other than
25 fuel or motor fuel, when the use of dyed diesel fuel in
26 that manufacturing process results in a product that is
HB2755 Enrolled - 1133 - LRB104 08253 BDA 18303 b
1 unsuitable for its intended use or (ii) for testing
2 machinery and equipment in a manufacturing process, as
3 defined in Section 2-45 of the Retailers' Occupation Tax
4 Act, wherein the testing takes place on private property.
5 (2) Undyed diesel fuel used by a manufacturer on
6 private property in the research and development, as
7 defined in Section 1.29, of machinery or equipment
8 intended for manufacture.
9 (3) Undyed diesel fuel used by a single unit
10 self-propelled agricultural fertilizer implement,
11 designed for on and off road use, equipped with flotation
12 tires and specially adapted for the application of plant
13 food materials or agricultural chemicals.
14 (4) Undyed diesel fuel used by a commercial motor
15 vehicle for any purpose other than operating the
16 commercial motor vehicle upon the public highways. Claims
17 shall be limited to commercial motor vehicles that are
18 operated for both highway purposes and any purposes other
19 than operating such vehicles upon the public highways.
20 (5) Undyed diesel fuel used by a unit of local
21 government in its operation of an airport if the undyed
22 diesel fuel is used directly in airport operations on
23 airport property.
24 (6) Undyed diesel fuel used by refrigeration units
25 that are permanently mounted to a semitrailer, as defined
26 in Section 1.28 of this Law, wherein the refrigeration
HB2755 Enrolled - 1134 - LRB104 08253 BDA 18303 b
1 units have a fuel supply system dedicated solely for the
2 operation of the refrigeration units.
3 (7) Undyed diesel fuel used by power take-off
4 equipment as defined in Section 1.27 of this Law.
5 (8) Beginning on the effective date of this amendatory
6 Act of the 94th General Assembly, undyed diesel fuel used
7 by tugs and spotter equipment to shift vehicles or parcels
8 on both private and airport property. Any claim under this
9 item (8) may be made only by a claimant that owns tugs and
10 spotter equipment and operates that equipment on both
11 private and airport property. The aggregate of all credits
12 or refunds resulting from claims filed under this item (8)
13 by a claimant in any calendar year may not exceed
14 $100,000. A claim may not be made under this item (8) by
15 the same claimant more often than once each quarter. For
16 the purposes of this item (8), "tug" means a vehicle
17 designed for use on airport property that shifts
18 custom-designed containers of parcels from loading docks
19 to aircraft, and "spotter equipment" means a vehicle
20 designed for use on both private and airport property that
21 shifts trailers containing parcels between staging areas
22 and loading docks.
23 Any person who has paid the tax imposed by Section 2 of
24 this Law upon undyed diesel fuel that is unintentionally mixed
25 with dyed diesel fuel and who owns or controls the mixture of
26 undyed diesel fuel and dyed diesel fuel may file a claim for
HB2755 Enrolled - 1135 - LRB104 08253 BDA 18303 b
1 refund to recover the amount paid. The amount of undyed diesel
2 fuel unintentionally mixed must equal 500 gallons or more. Any
3 claim for refund of unintentionally mixed undyed diesel fuel
4 and dyed diesel fuel shall be supported by documentation
5 showing the date and location of the unintentional mixing, the
6 number of gallons involved, the disposition of the mixed
7 diesel fuel, and any other information that the Department may
8 reasonably require. Any unintentional mixture of undyed diesel
9 fuel and dyed diesel fuel shall be sold or used only for
10 non-highway purposes.
11 The Department shall promulgate regulations establishing
12 specific limits on the amount of undyed diesel fuel that may be
13 claimed for refund.
14 For purposes of claims for refund, "loss" means the
15 reduction of motor fuel resulting from fire, theft, spillage,
16 spoilage, leakage, or any other provable cause, but does not
17 include a reduction resulting from evaporation, or shrinkage
18 due to temperature variations. In the case of losses due to
19 fire or theft, the claimant must include fire department or
20 police department reports and any other documentation that the
21 Department may require.
22 (Source: P.A. 100-1171, eff. 1-4-19.)
23 (35 ILCS 505/14a) (from Ch. 120, par. 430.1)
24 Sec. 14a. The Department of Revenue may enter into
25 reciprocal agreements with the appropriate officials of any
HB2755 Enrolled - 1136 - LRB104 08253 BDA 18303 b
1 other state under which the Department may waive all or any
2 part of the requirements imposed by the laws of this State upon
3 those who use or consume motor fuel in Illinois upon which a
4 tax has been paid to such other state, provided that the
5 officials of such other state grant equivalent privileges with
6 respect to motor fuel used in such other state but upon which
7 the tax has been paid to Illinois.
8 The Department may enter the International Fuel Tax
9 Agreement or other cooperative compacts or agreements with
10 other states or jurisdictions to permit base state or base
11 jurisdiction licensing of persons using motor fuel in this
12 State. Those agreements may provide for the cooperation and
13 assistance among member states in the administration and
14 collection of motor fuel tax, including, but not limited to,
15 exchanges of information, auditing and assessing of interstate
16 carriers and suppliers, and any other activities necessary to
17 further uniformity.
18 Pursuant to federal mandate, upon membership in the
19 International Fuel Tax Agreement ("Agreement"), the motor fuel
20 use tax imposed upon Commercial Motor Vehicles required to be
21 registered under the terms of the Agreement shall be
22 administered according to the terms of the Agreement, as now
23 and hereafter amended. Illinois shall not establish, maintain,
24 or enforce any law or regulation that has fuel use tax
25 reporting requirements or that provides for the payment of a
26 fuel use tax, unless that law or regulation is in conformity
HB2755 Enrolled - 1137 - LRB104 08253 BDA 18303 b
1 with the Agreement.
2 The Department shall adopt rules and regulations to
3 implement the provisions of the Agreement.
4 (Source: P.A. 88-480.)
5 (35 ILCS 505/15) (from Ch. 120, par. 431)
6 Sec. 15. 1. Any person who knowingly acts as a distributor
7 of motor fuel or supplier of special fuel, or receiver of fuel
8 without having a license so to do, or who knowingly fails or
9 refuses to file a return with the Department as provided in
10 Section 2b, Section 5, or Section 5a of this Act, or who
11 knowingly fails or refuses to make payment to the Department
12 as provided either in Section 2b, Section 6, Section 6a, or
13 Section 7 of this Act, shall be guilty of a Class 3 felony.
14 Each day any person knowingly acts as a distributor of motor
15 fuel, supplier of special fuel, or receiver of fuel without
16 having a license so to do or after such a license has been
17 revoked, constitutes a separate offense.
18 2. Any person who acts as a motor carrier without having a
19 valid motor fuel use tax license, issued by the Department or
20 by a member jurisdiction under the provisions of the
21 International Fuel Tax Agreement, or a valid single trip
22 permit is guilty of a Class A misdemeanor for a first offense
23 and is guilty of a Class 4 felony for each subsequent offense.
24 Any person (i) who fails or refuses to make payment to the
25 Department as provided in Section 13a.1 of this Act or in the
HB2755 Enrolled - 1138 - LRB104 08253 BDA 18303 b
1 International Fuel Tax Agreement referenced in Section 14a, or
2 (ii) who fails or refuses to make the quarterly return as
3 provided in Section 13a.3 is guilty of a Class 4 felony; and
4 for each subsequent offense, such person is guilty of a Class 3
5 felony.
6 3. In case such person acting as a distributor, receiver,
7 supplier, or motor carrier is a corporation, then the officer
8 or officers, agent or agents, employee or employees, of such
9 corporation responsible for any act of such corporation, or
10 failure of such corporation to act, which acts or failure to
11 act constitutes a violation of any of the provisions of this
12 Act as enumerated in paragraphs 1 and 2 of this Section, shall
13 be punished by such fine or imprisonment, or by both such fine
14 and imprisonment as provided in those paragraphs.
15 3.5. Any person who knowingly enters false information on
16 any supporting documentation required to be kept by Section 6
17 or 6a of this Act is guilty of a Class 3 felony.
18 3.7. Any person who knowingly attempts in any manner to
19 evade or defeat any tax imposed by this Act or the payment of
20 any tax imposed by this Act is guilty of a Class 2 felony.
21 4. Any person who refuses, upon demand, to submit for
22 inspection, books and records, or who fails or refuses to keep
23 books and records in violation of Section 12 of this Act, or
24 any distributor or , receiver, or supplier who violates any
25 reasonable rule or regulation adopted by the Department for
26 the enforcement of this Act is guilty of a Class A misdemeanor.
HB2755 Enrolled - 1139 - LRB104 08253 BDA 18303 b
1 Any person who acts as a blender in violation of Section 3 of
2 this Act is guilty of a Class 4 felony.
3 5. Any person licensed under Section 13a.4, 13a.5, or the
4 International Fuel Tax Agreement who: (a) fails or refuses to
5 keep records and books, as provided in Section 13a.2 or as
6 required by the terms of the International Fuel Tax Agreement,
7 (b) refuses upon demand by the Department to submit for
8 inspection and examination the records required by Section
9 13a.2 of this Act or by the terms of the International Fuel Tax
10 Agreement, or (c) violates any reasonable rule or regulation
11 adopted by the Department for the enforcement of this Act, is
12 guilty of a Class A misdemeanor.
13 6. Any person who makes any false return or report to the
14 Department as to any material fact required by Sections 2b, 5,
15 5a, 7, 13, or 13a.3 of this Act or by the International Fuel
16 Tax Agreement is guilty of a Class 2 felony.
17 7. A prosecution for any violation of this Section may be
18 commenced anytime within 5 years of the commission of that
19 violation. A prosecution for tax evasion as set forth in
20 paragraph 3.7 of this Section may be prosecuted any time
21 within 5 years of the commission of the last act in furtherance
22 of evasion. The running of the period of limitations under
23 this Section shall be suspended while any proceeding or appeal
24 from any proceeding relating to the quashing or enforcement of
25 any grand jury or administrative subpoena issued in connection
26 with an investigation of the violation of any provision of
HB2755 Enrolled - 1140 - LRB104 08253 BDA 18303 b
1 this Act is pending.
2 8. Any person who provides false documentation required by
3 any Section of this Act is guilty of a Class 4 felony.
4 9. Any person filing a fraudulent application or order
5 form under any provision of this Act is guilty of a Class A
6 misdemeanor. For each subsequent offense, the person is guilty
7 of a Class 4 felony.
8 10. Any person who acts as a motor carrier and who fails to
9 carry a manifest as provided in Section 5.5 is guilty of a
10 Class A misdemeanor. For each subsequent offense, the person
11 is guilty of a Class 4 felony.
12 11. Any person who knowingly sells or attempts to sell
13 dyed diesel fuel for highway use or for use by
14 recreational-type watercraft on the waters of this State is
15 guilty of a Class 4 felony. For each subsequent offense, the
16 person is guilty of a Class 2 felony.
17 12. Any person who knowingly possesses dyed diesel fuel
18 for highway use or for use by recreational-type watercraft on
19 the waters of this State is guilty of a Class A misdemeanor.
20 For each subsequent offense, the person is guilty of a Class 4
21 felony.
22 13. Any person who sells or transports dyed diesel fuel
23 without the notice required by Section 4e shall pay the
24 following penalty:
25 First occurrence .................................. $ 500
26 Second and each occurrence thereafter .............. $1,000
HB2755 Enrolled - 1141 - LRB104 08253 BDA 18303 b
1 14. Any person who owns, operates, or controls any
2 container, storage tank, or facility used to store or
3 distribute dyed diesel fuel without the notice required by
4 Section 4f shall pay the following penalty:
5 First occurrence .................................. $ 500
6 Second and each occurrence thereafter .............. $1,000
7 15. If a motor vehicle required to be registered for
8 highway purposes is found to have dyed diesel fuel within the
9 ordinary fuel tanks attached to the motor vehicle or if a
10 recreational-type watercraft on the waters of this State is
11 found to have dyed diesel fuel within the ordinary fuel tanks
12 attached to the watercraft, the operator shall pay the
13 following penalty:
14 First occurrence .................................. $1,000
15 Second and each occurrence thereafter .............. $5,000
16 16. Any licensed motor fuel distributor or licensed
17 supplier who sells or attempts to sell dyed diesel fuel for
18 highway use or for use by recreational-type watercraft on the
19 waters of this State shall pay the following penalty:
20 First occurrence .................................. $1,000
21 Second and each occurrence thereafter .............. $5,000
22 17. Any person who knowingly sells or distributes dyed
23 diesel fuel without the notice required by Section 4e is
24 guilty of a petty offense. For each subsequent offense, the
25 person is guilty of a Class A misdemeanor.
26 18. Any person who knowingly owns, operates, or controls
HB2755 Enrolled - 1142 - LRB104 08253 BDA 18303 b
1 any container, storage tank, or facility used to store or
2 distribute dyed diesel fuel without the notice required by
3 Section 4f is guilty of a petty offense. For each subsequent
4 offense the person is guilty of a Class A misdemeanor.
5 For purposes of this Section, dyed diesel fuel means any
6 dyed diesel fuel whether or not dyed pursuant to Section 4d of
7 this Law.
8 Any person aggrieved by any action of the Department under
9 item 13, 14, 15, or 16 of this Section may protest the action
10 by making a written request for a hearing within 60 days of the
11 original action. If the hearing is not requested in writing
12 within 60 days, the original action is final.
13 All penalties received under items 13, 14, 15, and 16 of
14 this Section shall be deposited into the Tax Compliance and
15 Administration Fund.
16 (Source: P.A. 102-851, eff. 1-1-23.)
17 (35 ILCS 505/16) (from Ch. 120, par. 432)
18 Sec. 16. The Department may, after 5 days' notice, revoke
19 the distributor's or , receiver's, or supplier's license or
20 permit of any person (1) who does not operate as a distributor
21 or , receiver, supplier (a) under Sections 1.2, 1.14, or 1.20,
22 (2) who violates any provision of this Act or any rule or
23 regulation promulgated by the Department under Section 14 of
24 this Act, or (3) who refuses to allow any inspection or test
25 authorized by this Law.
HB2755 Enrolled - 1143 - LRB104 08253 BDA 18303 b
1 Any person whose returns for 2 or more consecutive months
2 do not show sufficient taxable sales to indicate an active
3 business as a distributor or , receiver, or supplier shall be
4 deemed to not be operating as a distributor or , receiver, or
5 supplier as defined in Sections 1.2, 1.14 or 1.20.
6 The Department may, after 5 days notice, revoke any
7 distributor's or , receiver's, or supplier's license of a
8 person who is registered as a reseller of motor fuel pursuant
9 to Section 2a or 2c of the Retailers' Occupation Tax Act and
10 who fails to collect such prepaid tax on invoiced gallons of
11 motor fuel sold or who fails to deliver a statement of tax paid
12 to the purchaser or to the Department as required by Sections
13 2d and 2e of the Retailers' Occupation Tax Act.
14 The Department may, on notice given by registered mail,
15 cancel a Blender's Permit for any violation of any provisions
16 of this Act or for noncompliance with any rule or regulation
17 made by the Department under Section 14 of this Act.
18 The Department, upon complaint filed in the circuit court,
19 may, by injunction, restrain any person who fails or refuses
20 to comply with the provisions of this Act from acting as a
21 blender or distributor of motor fuel, supplier of special
22 fuel, or as a receiver of fuel in this State.
23 The Department may revoke the motor fuel use tax license
24 of a motor carrier registered under Section 13a.4, or that is
25 required to be registered under the terms of the International
26 Fuel Tax Agreement, that violates any provision of this Act or
HB2755 Enrolled - 1144 - LRB104 08253 BDA 18303 b
1 any rule promulgated by the Department under Sections 14 or
2 14a of this Act. Motor fuel use tax licenses that have been
3 revoked are subject to a $100 reinstatement fee.
4 Licensees registered or required to be registered under
5 Section 13a.4, or persons required to obtain single trip
6 permits under Section 13a.5, may protest any action or audit
7 finding made by the Department by making a written request for
8 a hearing within 30 days after service of the notice of the
9 original action or finding. If the hearing is not requested
10 within 30 days in writing, the original finding or action is
11 final. Once a hearing has been properly requested, the
12 Department shall give at least 20 days written notice of the
13 time and place of the hearing.
14 (Source: P.A. 94-1074, eff. 12-26-06.)
15 (35 ILCS 505/1.14 rep.)
16 (35 ILCS 505/3a rep.)
17 (35 ILCS 505/5a rep.)
18 (35 ILCS 505/6a rep.)
19 Section 55-10. The Motor Fuel Tax Law is amended by
20 repealing Sections 1.14, 3a, 5a, and 6a.
21 ARTICLE 65
22 Section 65-5. The Electric Vehicle Rebate Act is amended
23 by changing Sections 10, 15, 27, and 40 as follows:
HB2755 Enrolled - 1145 - LRB104 08253 BDA 18303 b
1 (415 ILCS 120/10)
2 Sec. 10. Definitions. As used in this Act:
3 "Agency" means the Environmental Protection Agency.
4 "Covered Area" means the counties of Cook, DuPage, Kane,
5 Lake, McHenry, and Will, the townships of Aux Sable and Goose
6 Lake in Grundy County, and the township of Oswego in Kendall
7 County.
8 "Electric vehicle" means a vehicle that is exclusively
9 powered by and refueled by electricity, must be plugged in to
10 charge, and is legally permitted licensed to drive on all
11 public roadways, including interstate highways. "Electric
12 Vehicle" does not include electric mopeds, electric
13 off-highway vehicles primarily intended to be driven
14 off-highway, including golf carts and electric vehicles with a
15 maximum speed below 45 miles per hour, or hybrid electric
16 vehicles and extended-range electric vehicles that are also
17 equipped with conventional fueled propulsion or auxiliary
18 engines.
19 "Eligible applicant" means persons and families whose
20 income does not exceed 500% of the federal poverty line for the
21 current State fiscal year and who may not be claimed as a
22 dependent.
23 "Eligible vehicle" means an electric vehicle, as defined
24 by this Act, with a selling price not exceeding $80,000 as
25 shown on the bill of sale, that has not previously received a
HB2755 Enrolled - 1146 - LRB104 08253 BDA 18303 b
1 rebate under this Act. For the purposes of this Act, State and
2 local taxes, license and registration fees, documentary
3 service fees, and aftermarket products, including, but not
4 limited to, extended warranties, service contracts, and other
5 voluntary vehicle protection products, are excluded from the
6 calculation of the selling price if separately itemized on the
7 bill of sale.
8 "Environmental justice community" has the same meaning,
9 based on existing methodologies and findings, used and as may
10 be updated by the Illinois Power Agency and its Program
11 Administrator of the Illinois Solar for All Program.
12 "Low-income applicants" "Low income" means persons and
13 families whose income does not exceed 80% of the regional or
14 county State median income for the current State fiscal year,
15 as established by the United States Department of Housing and
16 Urban Development's Illinois Income Limits by metropolitan
17 area and county Health and Human Services.
18 (Source: P.A. 102-662, eff. 9-15-21; 102-820, eff. 5-13-22.)
19 (415 ILCS 120/15)
20 Sec. 15. Rulemaking. The Agency shall adopt promulgate
21 rules as necessary and dedicate sufficient resources to
22 implement Section 27 of this Act. Such rules shall be
23 consistent with applicable provisions of the Clean Air Act and
24 any regulations promulgated pursuant thereto. The Secretary of
25 State may adopt promulgate rules to implement Section 35 of
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1 this Act.
2 (Source: P.A. 102-444, eff. 8-20-21; 102-662, eff. 9-15-21;
3 102-813, eff. 5-13-22.)
4 (415 ILCS 120/27)
5 Sec. 27. Electric vehicle rebate.
6 (a) Beginning July 1, 2022, and continuing as long as
7 funds are available, each eligible applicant person shall be
8 eligible to apply for a rebate, in the amounts set forth below,
9 following the purchase of an eligible electric vehicle in
10 Illinois. The Agency shall accept applications and issue
11 rebates consistent with the provisions of this Act and any
12 implementing regulations adopted by the Agency. In no event
13 shall a rebate amount exceed the purchase price of the
14 vehicle.
15 (1) Beginning July 1, 2025 2022, a $2,000 $4,000
16 rebate for eligible applicants toward the purchase of a
17 new or used an electric vehicle that is not an electric
18 motorcycle and a $1,500 rebate for the purchase of an
19 electric vehicle that is an electric motorcycle.
20 Low-income applicants are eligible for an additional
21 $2,000 rebate for new or used vehicles that are not
22 electric motorcycles.
23 (2) (Blank). Beginning July 1, 2026, a $2,000 rebate
24 for the purchase of an electric vehicle that is not an
25 electric motorcycle.
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1 (3) Beginning July 1, 2028, a $1,500 rebate for
2 eligible applicants toward the purchase of a new or used
3 an electric vehicle that is not an electric motorcycle and
4 a $750 rebate for the purchase of an electric vehicle that
5 is an electric motorcycle. Low-income applicants are
6 eligible for an additional $1,500 for new or used vehicles
7 that are not electric motorcycles.
8 (4) (Blank). Beginning July 1, 2022, a $1,500 rebate
9 for the purchase of an electric vehicle that is an
10 electric motorcycle.
11 (b) To be eligible to receive a rebate, a purchaser must:
12 (1) Reside in Illinois, both at the time the vehicle
13 was purchased and at the time the rebate is issued.
14 (2) Purchase an electric vehicle in Illinois on or
15 after July 1, 2022 and be the owner of the vehicle at the
16 time the rebate is issued. Rented or leased vehicles,
17 vehicles purchased from an out-of-state dealership, and
18 vehicles delivered to or received by the purchaser
19 out-of-state are not eligible for a rebate under this Act.
20 (3) Apply for the rebate within 180 90 days after the
21 vehicle purchase date, and provide to the Agency proof of
22 residence, proof of vehicle ownership, and proof that the
23 vehicle was purchased in Illinois, including a copy of a
24 purchase agreement noting an Illinois seller. The
25 purchaser must notify the Agency of any changes in
26 residency or ownership of the vehicle that occur between
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1 application for a rebate and issuance of a rebate.
2 (4) Apply for the rebate during an open rebate cycle,
3 as identified by the Agency.
4 (5) Certify that the purchaser qualifies as an
5 eligible applicant and a low-income applicant, if
6 applicable.
7 (c) The Agency shall make available in application
8 materials methods for purchasers to identify as low-income
9 applicants. The Agency shall prioritize the review of
10 qualified applications from low-income applicant purchasers
11 and award rebates to qualified purchasers accordingly.
12 (d) The purchaser must retain ownership of the vehicle for
13 a minimum of 12 consecutive months immediately after the
14 vehicle purchase date. The purchaser must continue to reside
15 in Illinois during that time frame and register the vehicle in
16 Illinois during that time frame. Rebate recipients who fail to
17 satisfy any of the above criteria will be required to
18 reimburse the Agency all or part of the original rebate amount
19 and shall notify the Agency within 60 days of failing to
20 satisfy the criteria.
21 (e) Rebates administered under this Section shall be
22 available for both new and used electric vehicles.
23 (f) A rebate administered under this Act may only be
24 applied for and awarded one time per vehicle identification
25 number. A rebate may only be applied for and awarded once per
26 purchaser in any 10-year period.
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1 (g) For program auditing purposes, the Agency may request
2 from a rebate recipient additional information and
3 documentation evidencing eligibility for a rebate issued on or
4 after July 1, 2025, including copies of income tax returns
5 that corroborate the certification referenced in paragraph (5)
6 of subsection (b). If requested by the Agency, a rebate
7 recipient shall provide the information and documentation
8 within the timeframe specified in the Agency's request. If the
9 rebate recipient fails to provide the information and
10 documentation requested by the Agency by the specified
11 deadline, or if the information and documentation provided
12 evidences that the rebate recipient was not eligible for the
13 rebate or the rebate recipient fails to corroborate the
14 certification referenced in paragraph (5) of subsection (b),
15 the rebate recipient may be required to reimburse the Agency
16 all or part of the original rebate amount.
17 (Source: P.A. 102-662, eff. 9-15-21; 102-820, eff. 5-13-22.)
18 (415 ILCS 120/40)
19 Sec. 40. Appropriations from the Electric Vehicle Rebate
20 Fund.
21 (a) The Agency shall estimate the amount of user fees
22 expected to be collected under Section 35 of this Act for each
23 fiscal year. User fee funds shall be deposited into and
24 distributed from the Electric Vehicle Rebate Fund in the
25 following manner:
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1 (1) Through fiscal year 2023, an annual amount not to
2 exceed $225,000 may be appropriated to the Agency from the
3 Electric Vehicle Rebate Fund to pay its costs of
4 administering the programs authorized by Section 27 of
5 this Act. Beginning in fiscal year 2024 and in each fiscal
6 year thereafter, an annual amount not to exceed $600,000
7 may be appropriated to the Agency from the Electric
8 Vehicle Rebate Fund to pay its costs of administering the
9 programs authorized by Section 27 of this Act. An amount
10 not to exceed $225,000 may be appropriated to the
11 Secretary of State from the Electric Vehicle Rebate Fund
12 to pay the Secretary of State's costs of administering the
13 programs authorized under this Act.
14 (2) In fiscal year 2022 and each fiscal year
15 thereafter, after appropriation of the amounts authorized
16 by item (1) of subsection (a) of this Section, the
17 remaining moneys estimated to be collected during each
18 fiscal year shall be appropriated.
19 (3) (Blank).
20 (4) Moneys appropriated to fund the programs
21 authorized in Sections 25 and 30 shall be expended only
22 after they have been collected and deposited into the
23 Electric Vehicle Rebate Fund.
24 (b) Amounts General Revenue Fund amounts appropriated to
25 and deposited into the Electric Vehicle Rebate Fund from the
26 General Revenue Fund, or any other fund, shall be distributed
HB2755 Enrolled - 1152 - LRB104 08253 BDA 18303 b
1 from the Electric Vehicle Rebate Fund to fund the program
2 authorized in Section 27.
3 (Source: P.A. 102-662, eff. 9-15-21; 103-8, eff. 6-7-23;
4 103-363, eff. 7-28-23; 103-605, eff. 7-1-24.)
5 ARTICLE 70
6 Section 70-5. The Film Production Services Tax Credit Act
7 of 2008 is amended by changing Section 10 as follows:
8 (35 ILCS 16/10)
9 Sec. 10. Definitions. As used in this Act:
10 "Above-the-line spending" means all salary, wages, fees,
11 and fringe benefits paid for services performed by personnel
12 of the production that are considered above-the-line services
13 in the film and television industry, including, but not
14 limited to, services performed by a producer, executive
15 producer, co-producer, director, screenwriter, lead cast,
16 supporting cast, or day player.
17 "Accredited production" means: (i) for productions
18 commencing before May 1, 2006, a film, video, or television
19 production that has been certified by the Department in which
20 the aggregate Illinois labor expenditures included in the cost
21 of the production, in the period that ends 12 months after the
22 time principal filming or taping of the production began,
23 exceed $100,000 for productions of 30 minutes or longer, or
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1 $50,000 for productions of less than 30 minutes; and (ii) for
2 productions commencing on or after May 1, 2006, a film, video,
3 or television production that has been certified by the
4 Department in which the Illinois production spending included
5 in the cost of production in the period that ends 12 months
6 after the time principal filming or taping of the production
7 began exceeds $100,000 for productions of 30 minutes or longer
8 or exceeds $50,000 for productions of less than 30 minutes.
9 "Accredited production" does not include a production that:
10 (1) is news, current events, or public programming, or
11 a program that includes weather or market reports;
12 (2) is a talk show produced for local or regional
13 markets;
14 (3) (blank);
15 (4) is a sports event or activity;
16 (5) is a gala presentation or awards show;
17 (6) is a finished production that solicits funds;
18 (7) is a production produced by a film production
19 company if records, as required by 18 U.S.C. 2257, are to
20 be maintained by that film production company with respect
21 to any performer portrayed in that single media or
22 multimedia program; or
23 (8) is a production produced primarily for industrial,
24 corporate, or institutional purposes.
25 "Accredited animated production" means an accredited
26 production in which movement and characters' performances are
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1 created using a frame-by-frame technique and a significant
2 number of major characters are animated. Motion capture by
3 itself is not an animation technique.
4 "Accredited production certificate" means a certificate
5 issued by the Department certifying that the production is an
6 accredited production that meets the guidelines of this Act.
7 "Applicant" means a taxpayer that is a film production
8 company that is operating or has operated an accredited
9 production located within the State of Illinois and that (i)
10 owns the copyright in the accredited production throughout the
11 Illinois production period or (ii) has contracted directly
12 with the owner of the copyright in the accredited production
13 or a person acting on behalf of the owner to provide services
14 for the production, where the owner of the copyright is not an
15 eligible production corporation.
16 "Below-the-line spending" means salary, wages, fees, and
17 fringe benefits paid for services performed by a person in a
18 position that is off camera and who provides technical
19 services during the physical production of a film.
20 "Below-the-line spending" does not include salary, wages,
21 fees, or fringe benefits paid to a person who is a producer,
22 executive producer, co-producer, director, screenwriter, lead
23 cast, supporting cast, or day player, or who performs other
24 services that are customarily considered above-the-line
25 services in the film and television industry.
26 "Credit" means:
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1 (1) for an accredited production approved by the
2 Department on or before January 1, 2005 and commencing
3 before May 1, 2006, the amount equal to 25% of the Illinois
4 labor expenditure approved by the Department. The
5 applicant is deemed to have paid, on its balance due day
6 for the year, an amount equal to 25% of its qualified
7 Illinois labor expenditure for the tax year. For Illinois
8 labor expenditures generated by the employment of
9 residents of geographic areas of high poverty or high
10 unemployment, as determined by the Department, in an
11 accredited production commencing before May 1, 2006 and
12 approved by the Department after January 1, 2005, the
13 applicant shall receive an enhanced credit of 10% in
14 addition to the 25% credit; and
15 (2) for an accredited production commencing on or
16 after May 1, 2006 and before January 1, 2009, the amount
17 equal to:
18 (i) 20% of the Illinois production spending for
19 the taxable year; plus
20 (ii) 15% of the Illinois labor expenditures
21 generated by the employment of residents of geographic
22 areas of high poverty or high unemployment, as
23 determined by the Department; and
24 (3) for an accredited production commencing on or
25 after January 1, 2009, the amount equal to:
26 (i) 30% of the Illinois production spending for
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1 the taxable year; plus
2 (ii) 15% of the Illinois labor expenditures
3 generated by the employment of residents of geographic
4 areas of high poverty or high unemployment, as
5 determined by the Department.
6 "Department" means the Department of Commerce and Economic
7 Opportunity.
8 "Director" means the Director of Commerce and Economic
9 Opportunity.
10 "Fair market value" means:
11 (1) for unrelated parties, the value established
12 through comparable transactions between unrelated parties
13 for substantially similar goods and services considering
14 the geographic market and other pertinent variables as
15 specified by the Department by rule; and
16 (2) for related parties, the value established through
17 the related party's historical dealings with unrelated
18 parties or established by comparable transactions between
19 other unrelated parties for substantially similar goods
20 and services considering the geographic market and other
21 pertinent variables as specified by the Department by
22 rule.
23 "Illinois labor expenditure" means salary or wages paid to
24 employees of the applicant for services on the accredited
25 production.
26 To qualify as an Illinois labor expenditure, the
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1 expenditure must be:
2 (1) Reasonable in the circumstances.
3 (2) Included in the federal income tax basis of the
4 property.
5 (3) Incurred by the applicant for services on or after
6 January 1, 2004.
7 (4) Incurred for the production stages of the
8 accredited production, from the final script stage to the
9 end of the post-production stage.
10 (5) Limited to the first $25,000 of wages paid or
11 incurred to each employee of a production commencing
12 before May 1, 2006 and the first $100,000 of wages paid or
13 incurred to each employee of a production commencing on or
14 after May 1, 2006 and prior to July 1, 2022. For
15 productions commencing on or after July 1, 2022, limited
16 to the first $500,000 of wages paid or incurred to each
17 eligible nonresident or resident employee of a production
18 company or loan out company that provides in-State
19 services to a production, whether those wages are paid or
20 incurred by the production company, loan out company, or
21 both, subject to withholding payments provided for in
22 Article 7 of the Illinois Income Tax Act. For purposes of
23 calculating Illinois labor expenditures for a television
24 series, the eligible nonresident wage limitations provided
25 under this subparagraph are applied to the entire season.
26 For the purpose of this paragraph (5), an eligible
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1 nonresident is a nonresident whose wages qualify as an
2 Illinois labor expenditure under the provisions of
3 paragraph (9) that apply to that production.
4 (6) For a production commencing before May 1, 2006,
5 exclusive of the salary or wages paid to or incurred for
6 the 2 highest paid employees of the production.
7 (7) Directly attributable to the accredited
8 production.
9 (8) (Blank).
10 (9) Prior to July 1, 2022, paid to persons resident in
11 Illinois at the time the payments were made. For a
12 production commencing on or after July 1, 2022, paid to
13 persons resident in Illinois and nonresidents at the time
14 the payments were made.
15 For purposes of this subparagraph, if the production
16 is accredited by the Department before the effective date
17 of this amendatory Act of the 102nd General Assembly, only
18 wages paid to nonresidents working in the following
19 positions shall be considered Illinois labor expenditures:
20 Writer, Director, Director of Photography, Production
21 Designer, Costume Designer, Production Accountant, VFX
22 Supervisor, Editor, Composer, and Actor, subject to the
23 limitations set forth under this subparagraph. For an
24 accredited Illinois production spending of $25,000,000 or
25 less, no more than 2 nonresident actors' wages shall
26 qualify as an Illinois labor expenditure. For an
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1 accredited production with Illinois production spending of
2 more than $25,000,000, no more than 4 nonresident actor's
3 wages shall qualify as Illinois labor expenditures.
4 For purposes of this subparagraph, if the production
5 is accredited by the Department on or after the effective
6 date of this amendatory Act of the 102nd General Assembly,
7 wages paid to nonresidents shall qualify as Illinois labor
8 expenditures only under the following conditions:
9 (A) the nonresident must be employed in a
10 qualified position;
11 (B) for each of those accredited productions, the
12 wages of not more than 9 nonresidents who are employed
13 in a qualified position other than Actor shall qualify
14 as Illinois labor expenditures;
15 (C) for an accredited production with Illinois
16 production spending of $25,000,000 or less, no more
17 than 2 nonresident actors' wages shall qualify as
18 Illinois labor expenditures; and
19 (D) for an accredited production with Illinois
20 production spending of more than $25,000,000, no more
21 than 4 nonresident actors' wages shall qualify as
22 Illinois labor expenditures.
23 As used in this paragraph (9), "qualified position"
24 means: Writer, Director, Director of Photography,
25 Production Designer, Costume Designer, Production
26 Accountant, VFX Supervisor, Editor, Composer, or Actor.
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1 (10) Paid for services rendered in Illinois.
2 For a production commencing on or after the effective date
3 of this amendatory Act of the 104th General Assembly,
4 "Illinois labor expenditure" does not include:
5 (1) above-the-line spending exceeding 40% of the total
6 Illinois production spending for the production, unless
7 the Department determines, through a process specified by
8 administrative rule, that inclusion as an Illinois labor
9 expenditure of above-the-line spending for the production
10 in an amount that exceeds 40% of the production's total
11 Illinois production spending is necessary for the
12 production to meet the conditions set forth in subsection
13 (a) of Section 30;
14 (2) above-the-line spending paid to related parties
15 that exceeds, in the aggregate, 12% of the total Illinois
16 production spending for the production; or
17 (3) below-the-line spending paid to a related party
18 that exceeds the fair market value of the transaction.
19 "Illinois production spending" means the expenses incurred
20 by the applicant for an accredited production that are
21 reasonable under the circumstances, but does not include any
22 monetary prize or the cost of any non-monetary prize awarded
23 pursuant to a production in respect of a game, questionnaire,
24 or contest. "Illinois production spending" includes, without
25 limitation, unless otherwise specified in this definition, all
26 of the following:
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1 (1) expenses to purchase, from vendors within
2 Illinois, tangible personal property that is used in the
3 accredited production;
4 (2) expenses to acquire services, from vendors in
5 Illinois, for film production, editing, or processing; and
6 (3) for a production commencing before July 1, 2022,
7 the compensation, not to exceed $100,000 for any one
8 employee, for contractual or salaried employees who are
9 Illinois residents performing services with respect to the
10 accredited production. For a production commencing on or
11 after July 1, 2022, Illinois labor expenditure the
12 compensation, not to exceed $500,000 for any one employee,
13 for contractual or salaried employees who are Illinois
14 residents or nonresident employees, subject to the
15 limitations set forth under Section 10 of this Act; and .
16 (4) for a production commencing on or after the
17 effective date of this amendatory Act of the 104th General
18 Assembly, the fair market value of any transaction that
19 (i) is entered into between the taxpayer and a related
20 party or the taxpayer and an unrelated party, (ii) is for
21 the accredited production, and (iii) has terms that
22 reflect the fair market value of the transaction.
23 "Loan out company" means a personal service corporation or
24 other entity that is under contract with the taxpayer to
25 provide specified individual personnel, such as artists, crew,
26 actors, producers, or directors for the performance of
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1 services used directly in a production. "Loan out company"
2 does not include entities contracted with by the taxpayer to
3 provide goods or ancillary contractor services such as
4 catering, construction, trailers, equipment, or
5 transportation.
6 "Qualified production facility" means stage facilities in
7 the State in which television shows and films are or are
8 intended to be regularly produced and that contain at least
9 one sound stage of at least 15,000 square feet.
10 "Related party" means a party that is deemed to be related
11 to the taxpayer by common ownership or control according to
12 generally accepted accounting standards and generally accepted
13 accounting principles.
14 "Unrelated party" means a party that is not a related
15 party with respect to the taxpayer.
16 The Department shall adopt rules to implement the changes
17 made to this Section within one year after the effective date
18 of this amendatory Act of the 104th General Assembly.
19 Rulemaking authority to implement Public Act 95-1006, if
20 any, is conditioned on the rules being adopted in accordance
21 with all provisions of the Illinois Administrative Procedure
22 Act and all rules and procedures of the Joint Committee on
23 Administrative Rules; any purported rule not so adopted, for
24 whatever reason, is unauthorized.
25 (Source: P.A. 102-558, eff. 8-20-21; 102-700, eff. 4-19-22;
26 102-1125, eff. 2-3-23; 103-595, eff. 6-26-24.)
HB2755 Enrolled - 1163 - LRB104 08253 BDA 18303 b
1 ARTICLE 77
2 Section 77-1. Short title. This Article may be cited as
3 the Advancing Innovative Manufacturing for Illinois Tax Credit
4 Act. References in this Article to "this Act" mean this
5 Article.
6 Section 77-5. Purpose. The General Assembly intends that
7 Illinois should lead the nation in manufacturing domestically
8 and internationally demanded goods. Through the support of
9 manufacturers existing within Illinois and those seeking to
10 relocate to Illinois, this Act is intended to spur innovation
11 in growth industries and fast-growing sectors, including:
12 automotive manufacturing; aerospace manufacturing; energy and
13 life sciences; machine manufacturing; fabricated metal
14 manufacturing; chemical manufacturing; robotics; and the
15 production of advanced materials. This Act is intended to
16 create good-paying jobs, generate long-term economic
17 investment in the Illinois business economy, and ensure that
18 vital products are made in the United States. Illinois must
19 aggressively adopt new business development investment tools
20 so that Illinois can compete with domestic and foreign
21 competitors.
22 Section 77-10. Definitions. In this Act:
HB2755 Enrolled - 1164 - LRB104 08253 BDA 18303 b
1 "Advanced manufacturing" means the practice of using
2 innovative technologies and methods to improve a company's
3 ability to be competitive in the manufacturing sector by
4 optimizing all aspects of the value chain, from concept to
5 end-of-life considerations. "Advanced manufacturing"
6 includes, but is not limited to, advanced manufacturing
7 practices adopted by the following industries: clean energy
8 ecosystem businesses; life science businesses; food
9 manufacturing; automotive and aerospace manufacturing;
10 machinery manufacturing; fabricated metal manufacturing;
11 chemical manufacturing; robotics; and advanced materials
12 manufacturing, including nanomaterial manufacturing.
13 "Advancing Innovative Manufacturing for Illinois Tax
14 Credit" or "Credit" means a credit agreed to between the
15 Department and the applicant under this Act that is based on
16 capital improvements made to a new or existing facility for
17 the purpose of modernizing, upgrading, automating, or
18 streamlining a manufacturing or production process.
19 "Agreement" means the agreement between a taxpayer and the
20 Department under the provisions of this Act.
21 "Applicant" means a taxpayer that: (1) operates a business
22 in Illinois as a manufacturer of critically needed goods; (2)
23 operates a business in Illinois that primarily engages in
24 research and development that will result in the manufacturing
25 of critically needed goods; or (3) is planning to locate a
26 business within the State of Illinois as a manufacturer of
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1 critically needed goods or a business in Illinois that
2 primarily engages in research and development that will result
3 in the manufacturing of critically needed goods. For the
4 purposes of this definition, a business primarily engages in
5 research and development if at least 50% of its business
6 activities involve research and development in the
7 manufacturing of critically needed goods.
8 "Applicant" does not include a taxpayer that closes or
9 substantially reduces, by more than 50%, operations at one
10 location in the State and relocates substantially the same
11 operation to another location in the State. This exclusion
12 does not prohibit a taxpayer from expanding its operations at
13 another location in the State. This exclusion also does not
14 prohibit a taxpayer from moving its operations from one
15 location in the State to another location in the State for the
16 purpose of expanding the operation of the business if the
17 Department determines that expansion cannot reasonably be
18 accommodated within the municipality or county in which the
19 business is located, or, in the case of a business located in
20 an incorporated area of the county, within the county in which
21 the business is located.
22 "Capital improvement" means (i) the purchase, renovation,
23 rehabilitation, or construction of permanent tangible land,
24 buildings, structures, equipment, and furnishings at an
25 approved project site in Illinois and (ii) expenditures for
26 goods or services that are normally capitalized, including
HB2755 Enrolled - 1166 - LRB104 08253 BDA 18303 b
1 organizational costs and research and development costs
2 incurred in Illinois. For land, buildings, structures, and
3 equipment that are leased, the term of the lease must equal or
4 exceed the term of the agreement, and the cost of the property
5 shall be determined from the present value, using the
6 corporate interest rate prevailing at the time of the
7 application, of the lease payments.
8 "Department" means the Department of Commerce and Economic
9 Opportunity.
10 "Director" means the Director of Commerce and Economic
11 Opportunity.
12 "Full-time employee" means an individual who is employed
13 for consideration for at least 35 hours each week or who
14 renders any other standard of service generally accepted by
15 industry custom or practice as full-time employment. An
16 individual for whom a W-2 is issued by a Professional Employer
17 Organization (PEO) is a full-time employee if employed in the
18 service of the applicant for consideration for at least 35
19 hours each week.
20 "Incremental income tax" means the total amount withheld
21 during the taxable year from the compensation of new employees
22 and, if applicable, retained employees under Article 7 of the
23 Illinois Income Tax Act arising from employment at a project
24 that is the subject of an agreement.
25 "New employee" means a newly-hired full-time employee
26 employed to work at the project site and whose work is directly
HB2755 Enrolled - 1167 - LRB104 08253 BDA 18303 b
1 related to the project.
2 "Noncompliance date" means, in the case of a taxpayer that
3 is not complying with the requirements of the agreement or the
4 provisions of this Act, the day following the last date upon
5 which the taxpayer was in compliance with the requirements of
6 the agreement and the provisions of this Act, as determined by
7 the Director.
8 "Pass-through entity" means an entity that is exempt from
9 the tax under subsection (b) or (c) of Section 205 of the
10 Illinois Income Tax Act.
11 "Placed in service" means that the facility is in a state
12 or condition of readiness, is available for a specifically
13 assigned function, and is constructed and ready to conduct
14 manufacturing operations.
15 "Professional employer organization" (PEO) means an
16 employee leasing company, as defined in Section 206.1 of the
17 Illinois Unemployment Insurance Act.
18 "Program" means the Advancing Innovative Manufacturing for
19 Illinois Tax Credit program established in this Act.
20 "Project" means a for-profit economic development activity
21 involving advanced manufacturing.
22 "Related member" means a person that, with respect to the
23 taxpayer during any portion of the taxable year, is any one of
24 the following:
25 (1) An individual stockholder, if the stockholder and
26 the members of the stockholder's family (as defined in
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1 Section 318 of the Internal Revenue Code) own directly,
2 indirectly, beneficially, or constructively, in the
3 aggregate, at least 50% of the value of the taxpayer's
4 outstanding stock.
5 (2) A partnership, estate, trust and any partner or
6 beneficiary, if the partnership, estate, or trust, and its
7 partners or beneficiaries own directly, indirectly,
8 beneficially, or constructively, in the aggregate, at
9 least 50% of the profits, capital, stock, or value of the
10 taxpayer.
11 (3) A corporation, and any party related to the
12 corporation in a manner that would require an attribution
13 of stock from the corporation under the attribution rules
14 of Section 318 of the Internal Revenue Code, if the
15 taxpayer owns directly, indirectly, beneficially, or
16 constructively at least 50% of the value of the
17 corporation's outstanding stock.
18 (4) A corporation and any party related to that
19 corporation in a manner that would require an attribution
20 of stock from the corporation to the party or from the
21 party to the corporation under the attribution rules of
22 Section 318 of the Internal Revenue Code, if the
23 corporation and all such related parties own in the
24 aggregate at least 50% of the profits, capital, stock, or
25 value of the taxpayer.
26 (5) A person to or from whom there is an attribution of
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1 stock ownership in accordance with Section 1563(e) of the
2 Internal Revenue Code, except, for purposes of determining
3 whether a person is a related member under this paragraph,
4 20% shall be substituted for 5% wherever 5% appears in
5 Section 1563(e) of the Internal Revenue Code.
6 "Research and development" means work directed toward the
7 innovation, introduction, and improvement of products and
8 processes in the space of advanced manufacturing.
9 "Retained employee" means a full-time employee who is
10 employed by the taxpayer before the first day of the term of
11 the agreement, who continues to be employed by the taxpayer
12 during the term of the agreement, and whose job duties are
13 directly and substantially related to the project. For
14 purposes of this definition, "directly and substantially
15 related to the project" means that at least two-thirds of the
16 employee's job duties must be directly related to the project
17 and the employee must devote at least two-thirds of his or her
18 time to the project. The term "retained employee" does not
19 include any individual who has a direct or an indirect
20 ownership interest of at least 5% in the profits, equity,
21 capital, or value of the taxpayer or a child, grandchild,
22 parent, or spouse, other than a spouse who is legally
23 separated from the individual, of any individual who has a
24 direct or indirect ownership of at least 5% in the profits,
25 equity, capital, or value of the taxpayer.
26 "Statewide baseline" means the total number of full-time
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1 employees of the applicant and any related member employed by
2 such entities in Illinois at the time of application for
3 incentives under this Act.
4 "Taxpayer" means an individual, corporation, partnership,
5 or other entity that has a legal obligation to pay Illinois
6 income taxes and file an Illinois income tax return.
7 "Underserved area" means any geographic area as defined in
8 Section 5-5 of the Economic Development for a Growing Economy
9 Tax Credit Act.
10 Section 77-15. Powers of the Department. The Department,
11 in addition to those powers granted under the Civil
12 Administrative Code of Illinois, is granted and shall have all
13 the powers necessary or convenient to administer the program
14 under this Act and to carry out and effectuate the purposes and
15 provisions of this Act, including, but not limited to, the
16 power and authority to:
17 (1) adopt rules deemed necessary and appropriate for
18 the administration of the program, the designation of
19 projects, and the awarding of credits;
20 (2) establish forms for applications, notifications,
21 contracts, or any other agreements;
22 (3) accept applications at any time during the year;
23 (4) assist taxpayers pursuant to the provisions of
24 this Act and cooperate with taxpayers that are parties to
25 agreements under this Act to promote, foster, and support
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1 economic development, capital investment, and job creation
2 or retention within the State;
3 (5) enter into agreements and memoranda of
4 understanding for the participation of, and engage in
5 cooperation with, agencies of the federal government,
6 units of local government, universities, research
7 foundations or institutions, regional economic development
8 corporations, or other organizations to implement the
9 requirements and purposes of this Act;
10 (6) gather information and conduct inquiries, in the
11 manner and by the methods it deems desirable, including,
12 without limitation, gathering information with respect to
13 applicants for the purpose of making any designations or
14 certifications necessary or desirable or to gather
15 information to assist the Department with any
16 recommendation or guidance in the furtherance of the
17 purposes of this Act;
18 (7) establish, negotiate, and effectuate agreements
19 and any term, agreement, or other document with any
20 person, necessary or appropriate to accomplish the
21 purposes of this Act and to consent, subject to the
22 provisions of any agreement with another party, to the
23 modification or restructuring of any agreement to which
24 the Department is a party;
25 (8) fix, determine, charge, and collect any premiums,
26 fees, charges, costs, and expenses from applicants,
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1 including, without limitation, any application fees,
2 commitment fees, program fees, financing charges, or
3 publication fees as deemed appropriate to pay expenses
4 necessary or incident to the administration, staffing, or
5 operation of the Department's activities under this Act,
6 or for preparation, implementation, and enforcement of the
7 terms of the agreement, or for consultation, advisory and
8 legal fees, and other costs; all of those fees and
9 expenses shall be the responsibility of the applicant;
10 (9) provide for sufficient personnel to permit
11 administration, staffing, operation, and related support
12 required to adequately discharge its duties and
13 responsibilities described in this Act from funds made
14 available through charges to applicants or from funds as
15 may be appropriated by the General Assembly for the
16 administration of this Act;
17 (10) require applicants, upon written request, to
18 issue any necessary authorization to the appropriate
19 federal, State, or local authority for the release of
20 information concerning a project being considered under
21 this Act, including, but not be limited to, financial
22 reports, returns, or records relating to the taxpayer or
23 its project;
24 (11) require that a taxpayer shall, at all times, keep
25 proper books of record and account in accordance with
26 generally accepted accounting principles; any books,
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1 records, or papers related to the agreement shall be kept
2 in the custody or control of the taxpayer and shall be open
3 for reasonable Department inspection and audit, including,
4 without limitation, the making of copies of the books,
5 records, or papers and the inspection or appraisal of any
6 of the taxpayer's or project's assets; and
7 (12) take whatever actions are necessary or
8 appropriate to protect the State's interest in the event
9 of bankruptcy, default, foreclosure, or noncompliance with
10 the terms and conditions of financial assistance or
11 participation required under this Act, including the power
12 to sell, dispose, lease, or rent, upon terms and
13 conditions determined by the Director to be appropriate,
14 real or personal property that the Department may receive
15 as a result of these actions.
16 Section 77-20. Advancing Innovative Manufacturing for
17 Illinois Tax Credit project applications.
18 (a) The Advancing Innovative Manufacturing for Illinois
19 Tax Credit program is hereby established and shall be
20 administered by the Department. The Program will provide
21 investment tax credit incentives to eligible manufacturers of
22 critically demanded goods.
23 (b) A taxpayer planning a project to be located in
24 Illinois may request consideration for designation of its
25 project as an Advancing Innovative Manufacturing for Illinois
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1 Tax Credit program project by formal written letter of request
2 to the Department. The letter must, at a minimum, identify the
3 company name and project location, detail the scope of the
4 project, and specify the amount of intended capital investment
5 in the project, the number of new full-time employees at a
6 designated location in Illinois, the number of retained
7 employees at a project location and across Illinois, and any
8 change in the statewide baseline. As circumstances require,
9 the Department shall require a formal application from an
10 applicant.
11 (c) The Department of Commerce and Economic Opportunity
12 shall review the merits of each letter provided to evaluate
13 the taxpayer's demonstrated commitment to expanding
14 manufacturing within Illinois, the overall positive fiscal
15 impact of the project on the State, the economic soundness of
16 the project, and the benefit of the project to the people of
17 the State through increased, retained, or improved employment
18 opportunities. In the Department's evaluation of the project,
19 special consideration may be applied to projects located
20 within underserved areas; projects targeting industries that
21 are vital to the Illinois economy; projects with significant
22 job creation or job retention, or both; and projects with
23 considerable capital improvement investments. At a minimum,
24 the Department shall review project applications that include
25 a capital improvement investment of at least $10,000,000.
26 (d) A taxpayer may not enter into more than one agreement
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1 under this Act with respect to a single address or location for
2 the same period of time. A taxpayer may not enter into an
3 agreement under this Act with respect to a single address or
4 location if the taxpayer also holds an active agreement under
5 the Economic Development for a Growing Economy Tax Credit Act,
6 Reimagining Electric Vehicles in Illinois Tax Credit Act,
7 Manufacturing Illinois Chips for Real Opportunity Act, or Data
8 Center Investment Tax Exemptions and Credits for the same
9 period of time. This provision does not preclude the applicant
10 from entering into an additional agreement after the
11 expiration or voluntary termination of an earlier agreement
12 under this Act or under the Economic Development for a Growing
13 Economy Tax Credit Act, Reimagining Electric Vehicles in
14 Illinois Tax Credit Act, Manufacturing Illinois Chips for Real
15 Opportunity Act, or Data Center Investment Tax Exemptions and
16 Credits to the extent that the taxpayer's application
17 otherwise satisfies the terms and conditions of this Act and
18 is approved by the Department. An applicant with an existing
19 agreement under the Economic Development for a Growing Economy
20 Tax Credit Act, Reimagining Electric Vehicles in Illinois Tax
21 Credit Act, Manufacturing Illinois Chips for Real Opportunity
22 Act, or Data Center Investment Tax Exemptions and Credits may
23 submit an application for an agreement under this Act after it
24 terminates any existing agreement under the Economic
25 Development for a Growing Economy Tax Credit Act, Reimagining
26 Electric Vehicles in Illinois Tax Credit Act, Manufacturing
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1 Illinois Chips for Real Opportunity Act, or Data Center
2 Investment Tax Exemptions and Credits with respect to the same
3 address or location.
4 Section 77-25. Tax credit awards.
5 (a) Subject to the conditions set forth in this Act, a
6 taxpayer is entitled to a credit against the tax imposed under
7 subsections (a) and (b) of Section 201 of the Illinois Income
8 Tax Act for taxable years beginning on or after January 1,
9 2026. The Department may award credits under this Act on and
10 after January 1, 2027.
11 (b) The credit under this Act shall not exceed 7% of the
12 applicant's total capital improvement investments for the year
13 for which the applicant seeks credit. Credits awarded under
14 this Act shall not reduce a taxpayer's liability for the tax
15 imposed by subsections (a) and (b) of Section 201 of the
16 Illinois Income Tax Act to less than zero. Unused credit may be
17 carried forward for a maximum of 10 years for use in future
18 taxable years. Any taxpayer qualifying for credits under this
19 Act shall not be eligible for the credits under subsections
20 (e), (f), or (h) of Section 201 of the Illinois Income Tax Act
21 for the same expenditures for the same taxable period.
22 (c) The Department shall certify to the Department of
23 Revenue: (1) the identity of taxpayers that are eligible to
24 receive tax credits under this Act and (2) the amount of the
25 credits awarded in each calendar year. Credits so earned and
HB2755 Enrolled - 1177 - LRB104 08253 BDA 18303 b
1 certified by the Department may be applied against the tax
2 imposed by Section subsections (a) and (b) of Section 201 of
3 the Illinois Income Tax Act for taxable years beginning on or
4 after January 1, 2026.
5 (d) Any applicant issued a certificate for a tax credit
6 under this Act must report to the Department the total project
7 tax benefits received. Reports are due no later than April 15
8 of the year in which the applicant is seeking the credit and
9 shall cover the entire project period. Failure to report data
10 may result in ineligibility to receive incentives. The
11 Department, in consultation with the Department of Revenue, is
12 authorized to adopt rules governing ineligibility to receive
13 exemptions, including the length of ineligibility. Factors to
14 be considered in determining whether a business is ineligible
15 include, but are not limited to, prior compliance with the
16 reporting requirements, cooperation in discontinuing and
17 correcting violations, the extent of the violation, and
18 whether the violation was willful or inadvertent.
19 (e) The Department shall determine the amount and duration
20 of the credit awarded under this Act, subject to the
21 limitations set forth in this Act. The credit amount shall be
22 determined based on the total amount of the capital
23 improvement investment made by the taxpayer. A capital
24 improvement investment of $10,000,000 or more but less than
25 $50,000,000 shall result in a maximum credit of 3% of the
26 capital improvement amount; a capital improvement investment
HB2755 Enrolled - 1178 - LRB104 08253 BDA 18303 b
1 of $50,000,000 or more but less than $100,000,000 shall result
2 in a maximum credit of 5% of the capital improvement amount; a
3 capital improvement investment of $100,000,000 or more shall
4 result in a maximum credit of 7% of the capital improvement
5 amount. Projects may be granted a tax credit award that
6 reflects investments made within a maximum 5-year period. Each
7 program agreement will detail a specific placed-in-service
8 date by which the company must complete the project
9 investment. Credit for a project shall be issued after the
10 project is placed in service.
11 (f) Nothing in this Section shall prevent the Department,
12 in consultation with the Department of Revenue, from adopting
13 rules to extend the sunset of any earned, existing, and unused
14 tax credit or credits awarded under this Act that a taxpayer
15 may be in possession of.
16 Section 77-30. Contents of agreements with applicants.
17 (a) The Department shall enter into an agreement with an
18 applicant that is awarded a credit under this Act. The
19 agreement shall include all of the following:
20 (1) a detailed description of the project that is the
21 subject of the agreement, including the location and
22 amount of the investment and jobs created or retained;
23 (2) the duration of the credit, the first taxable year
24 for which the credit may be awarded, and the first taxable
25 year in which the credit may be used by the taxpayer;
HB2755 Enrolled - 1179 - LRB104 08253 BDA 18303 b
1 (3) the maximum allowable credit as a percentage of
2 the project's total capital investment;
3 (4) a requirement that the taxpayer shall maintain
4 operations at the project location for a minimum of 15
5 years;
6 (5) a requirement that the taxpayer shall, at the time
7 that the project is placed in service, report to the
8 Department the number of new employees, the number of
9 retained employees, and the total capital improvement
10 investment of the project, and any other information the
11 Department deems necessary and appropriate to perform its
12 duties under this Act;
13 (6) a requirement authorizing the Director to verify
14 with the appropriate State agencies the amounts reported
15 under paragraph (5), and, after doing so, to issue a
16 certificate to the taxpayer stating that the amounts have
17 been verified;
18 (7) a requirement that the taxpayer shall provide
19 written notification to the Director not more than 30 days
20 after the taxpayer makes or receives a proposal that would
21 transfer the taxpayer's State tax liability obligations to
22 a successor taxpayer;
23 (8) a detailed description of the number of new
24 employees to be hired, and the occupation and payroll of
25 full-time jobs to be created or retained because of the
26 project;
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1 (9) the minimum investment the taxpayer will make in
2 capital improvements, the time period for which the
3 project may claim credit, and the designated location in
4 Illinois for the investment;
5 (10) a requirement that the taxpayer shall provide
6 written notification to the Director and the Director's
7 designee not more than 30 days after the taxpayer
8 determines that the minimum job creation or retention,
9 employment payroll, or investment no longer is or will be
10 achieved or maintained as set forth in the terms and
11 conditions of the agreement. Additionally, the
12 notification should outline to the Department the number
13 of layoffs, date of the layoffs, and detail taxpayer's
14 efforts to provide career and training counseling for the
15 impacted workers with industry-related certifications and
16 trainings;
17 (11) a provision that, if the total number of new
18 employees falls below a specified level, the allowance of
19 credit shall be suspended until the number of new
20 employees equals or exceeds the agreement amount;
21 (12) a detailed description of the items for which the
22 costs incurred by the taxpayer will be included in the
23 limitation on the credit;
24 (13) a provision stating that if the taxpayer ceases
25 principal operations with the intent to permanently shut
26 down the project in the State during the term of the
HB2755 Enrolled - 1181 - LRB104 08253 BDA 18303 b
1 agreement, then the entire credit amount awarded to the
2 taxpayer prior to the date the taxpayer ceases principal
3 operations shall be returned to the Department and shall
4 be reallocated to the local workforce investment area in
5 which the project was located; and
6 (14) any other performance conditions or contract
7 provisions the Department determines are necessary or
8 appropriate.
9 (b) The Department shall post on its website the terms of
10 each agreement entered into under this Act. The information
11 shall be posted within 10 days after entering into the
12 agreement and must include the following:
13 (1) the name of the taxpayer;
14 (2) the location of the project;
15 (3) the estimated value of the credit;
16 (4) the number of new employee jobs and, if
17 applicable, number of retained employee jobs at the
18 project; and
19 (5) whether or not the project is in an underserved
20 area or energy transition area.
21 Section 77-35. Certificate of verification; submission to
22 the Department of Revenue.
23 (a) A taxpayer claiming a credit under this Act shall
24 submit to the Department of Revenue a copy of the Director's
25 certificate of verification under this Act for the taxable
HB2755 Enrolled - 1182 - LRB104 08253 BDA 18303 b
1 year. However, failure to submit a copy of the certificate
2 with the taxpayer's tax return shall not invalidate a claim
3 for a credit.
4 (b) For a taxpayer to be eligible for a certificate of
5 verification, the taxpayer shall provide proof as required by
6 the Department, prior to the end of each calendar year,
7 including, but not limited to, attestation by the taxpayer
8 that the project has achieved the level of capital
9 improvements in Illinois specified in its agreement.
10 Section 77-40. Noncompliance; notice; assessment. If the
11 Director determines that a taxpayer who has received a credit
12 under this Act is not complying with the requirements of the
13 agreement or all of the provisions of this Act, the Director
14 shall provide notice to the taxpayer of the alleged
15 noncompliance and allow the taxpayer a hearing under the
16 provisions of the Illinois Administrative Procedure Act. If,
17 after such notice and any hearing, the Director determines
18 that noncompliance exists, the Director shall issue to the
19 Department of Revenue a notice to that effect, stating the
20 noncompliance date. If, during the term of an agreement, the
21 taxpayer ceases operations at a project location that is the
22 subject of the agreement with the intent to terminate
23 operations in the State, the Department and the Department of
24 Revenue shall recapture from the taxpayer the entire credit
25 amount awarded under that agreement prior to the date the
HB2755 Enrolled - 1183 - LRB104 08253 BDA 18303 b
1 taxpayer ceases operations. The Department shall, subject to
2 appropriation, reallocate the recaptured amounts within 6
3 months to the local workforce investment area in which the
4 project was located for purposes of workforce development,
5 expanded opportunities for unemployed persons, and expanded
6 opportunities for women and minority persons in the workforce.
7 The taxpayer will be ineligible for future funding under other
8 State tax credit or exemption programs for a 36-month period.
9 Noncompliance with the agreement will result in a default of
10 other agreements for State tax credits and exemption programs
11 for the project.
12 Section 77-45. Annual report.
13 (a) On or before July 1 of each year, the Department shall
14 submit a report on the tax credit program under this Act to the
15 Governor and the General Assembly. The report shall include
16 information on the number of agreements that were entered into
17 under this Act during the preceding calendar year, a
18 description of the project that is the subject of each
19 agreement, an update on the status of projects under
20 agreements entered into before the preceding calendar year,
21 and the sum of the credits awarded under this Act. A copy of
22 the report shall be delivered to the Governor and to each
23 member of the General Assembly.
24 (b) The report must include, for each agreement:
25 (1) the original estimates of the value of the credit
HB2755 Enrolled - 1184 - LRB104 08253 BDA 18303 b
1 and the number of new employee jobs to be created and, if
2 applicable, the number of retained employee jobs;
3 (2) any relevant modifications to existing agreements;
4 and
5 (3) a copy of the original agreement or link to the
6 agreement on the Department's website.
7 Section 77-50. Sunset of new agreements. The Department
8 shall not enter into any new agreements under the provisions
9 of this Act after December 31, 2030.
10 ARTICLE 80
11 Section 80-900. The Department of Commerce and Economic
12 Opportunity Law of the Civil Administrative Code of Illinois
13 is amended by changing Section 605-1115 as follows:
14 (20 ILCS 605/605-1115)
15 Sec. 605-1115. Quantum computing campuses.
16 (a) As used in this Section:
17 "Data center" means a facility: (1) whose primary services
18 are the storage, management, and processing of digital data;
19 and (2) that is used to house (A) computer and network systems,
20 including associated components such as servers, network
21 equipment and appliances, telecommunications, and data storage
22 systems, (B) systems for monitoring and managing
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1 infrastructure performance, (C) Internet-related equipment and
2 services, (D) data communications connections, (E)
3 environmental controls, (F) fire protection systems, and (G)
4 security systems and services.
5 "Full-time equivalent job" means a job in which an
6 employee works for a tenant of the quantum campus at a rate of
7 at least 35 hours per week. Vacations, paid holidays, and sick
8 time are included in this computation. Overtime is not
9 considered a part of regular hours.
10 "Quantum computing campus" or "campus" is a contiguous
11 area located in the State of Illinois that is designated by the
12 Department as a quantum computing campus in order to support
13 the demand for quantum computing research, development, and
14 implementation for practical use. A quantum computing campus
15 may include educational institutions intuitions, nonprofit
16 research and development organizations, and for-profit
17 organizations serving as anchor tenants and joining tenants
18 that, with approval from the Department, may change. Tenants
19 located at the campus shall have direct and supporting roles
20 in quantum computing activities. Eligible tenants include
21 quantum computer operators and research facilities, data
22 centers, manufacturers and assemblers of quantum computers and
23 component parts, cryogenic or refrigeration facilities, and
24 other facilities determined, by industry and academic leaders,
25 to be fundamental to the research and development of quantum
26 computing for practical solutions. Quantum computing shall
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1 include the research, development, and use of computing
2 methods that generate and manipulate quantum bits in a
3 controlled quantum state. This includes the use of photons,
4 semiconductors, superconductors, trapped ions, and other
5 industry and academically regarded methods for simulating
6 quantum bits. Additionally, a quantum computing campus shall
7 meet the following criteria:
8 (1) the campus must comprise a minimum of 100 acres
9 one-half square mile and not more than 640 acres 4 square
10 miles;
11 (2) the campus must contain tenants that demonstrate a
12 substantial plan for using the designation to encourage
13 participation by organizations owned by minorities, women,
14 and persons with disabilities, as those terms are defined
15 in the Business Enterprise for Minorities, Women, and
16 Persons with Disabilities Act, and the hiring of
17 minorities, women, and persons with disabilities;
18 (3) upon being placed in service, within 60 months
19 after designation or incorporation into a campus, the
20 owners of property located in a campus shall certify to
21 the Department that the property is carbon neutral or has
22 attained certification under one or more of the following
23 green building standards:
24 (A) BREEAM for New Construction or BREEAM, In-Use;
25 (B) ENERGY STAR;
26 (C) Envision;
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1 (D) ISO 50001-energy management;
2 (E) LEED for Building Design and Construction, or
3 LEED for Operations and Maintenance;
4 (F) Green Globes for New Construction, or Green
5 Globes for Existing Buildings;
6 (G) UL 3223; or
7 (H) an equivalent program approved by the
8 Department.
9 (b) Tenants located in a designated quantum computing
10 campus shall qualify for the following exemptions and credits:
11 (1) the Department may certify a taxpayer for an
12 exemption from any State or local use tax or retailers'
13 occupation tax on building materials that will be
14 incorporated into real estate at a quantum computing
15 campus; and
16 (2) an exemption from the charges imposed under
17 Section 9-222 of the Public Utilities Act, Section 5-10 of
18 the Gas Use Tax Law, Section 2-4 of the Electricity Excise
19 Tax Law, Section 2 of the Telecommunications Excise Tax
20 Act, Section 10 of the Telecommunications Infrastructure
21 Maintenance Fee Act, and Section 5-7 of the Simplified
22 Municipal Telecommunications Tax Act. ; and
23 (3) a credit against the taxes imposed under
24 subsections (a) and (b) of Section 201 of the Illinois
25 Income Tax Act as provided in Section 241 of the Illinois
26 Income Tax Act.
HB2755 Enrolled - 1188 - LRB104 08253 BDA 18303 b
1 (c) Each tenant eligible for exemptions under subsection
2 (b) of this Section shall be issued a certificate by the
3 Department. Upon issuing certificates under this Section, the
4 Department shall notify the Department of Revenue of the
5 certificates, and the Department of Revenue shall issue and
6 administer the exemptions listed in subsection (b) of this
7 Section. The duration of those exemptions may not exceed 20
8 calendar years and one renewal for an additional 20 years.
9 Certificates of exemption and credit certificates under this
10 Section shall be issued by the Department. Upon certification
11 by the Department under this Section, the Department shall
12 notify the Department of Revenue of the certification. The
13 exemption status shall take effect within 3 months after
14 certification of the taxpayer and notice to the Department of
15 Revenue by the Department.
16 (d) Entities seeking to form a quantum computing campus
17 must apply to the Department in the manner specified by the
18 Department. Entities seeking to join an established campus
19 must apply for an amendment to the existing campus. This
20 application for amendment must be submitted to the Department
21 with support from other campus members.
22 The Department shall determine the duration of
23 certificates of exemption awarded under this Act. The duration
24 of the certificates of exemption may not exceed 20 calendar
25 years and one renewal for an additional 20 years.
26 The Department and any tenant located in a quantum
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1 computing campus seeking the benefits under this Section must
2 enter into a memorandum of understanding that, at a minimum,
3 provides:
4 (1) the details for determining the amount of capital
5 investment to be made;
6 (2) the number of new jobs created;
7 (3) the timeline for achieving the capital investment
8 and new job goals;
9 (4) the repayment obligation should those goals not be
10 achieved and any conditions under which repayment by the
11 tenant or tenants claiming the exemption shall be
12 required;
13 (5) the duration of the exemptions; and
14 (6) other provisions as deemed necessary by the
15 Department.
16 A certificate designating a quantum computing campus shall
17 be issued by the Department to each qualifying campus. The
18 Department shall, within 10 days after the designation of a
19 quantum computing campus, send a letter of notification to
20 each member of the General Assembly whose legislative district
21 or representative district contains all or part of the
22 designated area.
23 (e) Beginning on July 1, 2025, and each year thereafter,
24 the Department shall annually report to the Governor and the
25 General Assembly on the outcomes and effectiveness of Public
26 Act 103-595 this amendatory Act of the 103rd General Assembly.
HB2755 Enrolled - 1190 - LRB104 08253 BDA 18303 b
1 The report shall include the following:
2 (1) the names of each tenant located within the
3 quantum computing campus;
4 (2) the location of each quantum computing campus;
5 (3) the estimated value of the credits to be issued to
6 quantum computing campus tenants;
7 (4) the number of new jobs and, if applicable,
8 retained jobs pledged at each quantum computing campus;
9 and
10 (5) whether or not the quantum computing campus is
11 located in an underserved area, an energy transition zone,
12 or an opportunity zone.
13 (f) Tenants at the quantum computing campus seeking a
14 certificate of exemption related to the construction of
15 required facilities shall require the contractor and all
16 subcontractors to:
17 (1) comply with the requirements of Section 30-22 of
18 the Illinois Procurement Code as those requirements apply
19 to responsible bidders and to present satisfactory
20 evidence of that compliance to the Department; and
21 (2) enter into a project labor agreement submitted to
22 the Department.
23 (g) The Department shall not issue any new certificates of
24 exemption under the provisions of this Section after July 1,
25 2030. This sunset shall not affect any existing certificates
26 of exemption in effect on July 1, 2030.
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1 (h) The Department shall adopt rules to implement and
2 administer this Section.
3 (Source: P.A. 103-595, eff. 6-26-24; revised 9-27-24.)
4 Section 80-915. The Reimagining Energy and Vehicles in
5 Illinois Act is amended by changing Sections 10, 20, and 45 as
6 follows:
7 (20 ILCS 686/10)
8 Sec. 10. Definitions. As used in this Act:
9 "Advanced battery" means a battery that consists of a
10 battery cell that can be integrated into a module, pack, or
11 system to be used in energy storage applications, including a
12 battery used in an electric vehicle or the electric grid.
13 "Advanced battery component" means a component of an
14 advanced battery, including materials, enhancements,
15 enclosures, anodes, cathodes, electrolytes, cells, and other
16 associated technologies that comprise an advanced battery.
17 "Agreement" means the agreement between a taxpayer and the
18 Department under the provisions of Section 45 of this Act.
19 "Applicant" means a taxpayer that (i) operates a business
20 in Illinois or is planning to locate a business within the
21 State of Illinois and (ii) is engaged in interstate or
22 intrastate commerce as an electric vehicle manufacturer, an
23 electric vehicle component parts manufacturer, or an electric
24 vehicle power supply equipment manufacturer. For applications
HB2755 Enrolled - 1192 - LRB104 08253 BDA 18303 b
1 for credits under this Act that are submitted on or after
2 February 3, 2023 (the effective date of Public Act 102-1125)
3 this amendatory Act of the 102nd General Assembly, "applicant"
4 also includes a taxpayer that (i) operates a business in
5 Illinois or is planning to locate a business within the State
6 of Illinois and (ii) is engaged in interstate or intrastate
7 commerce as a renewable energy manufacturer, a renewable
8 energy products manufacturer, the manufacturer of an eVTOL
9 aircraft or hybrid-electric or fully electric propulsion
10 system for airliners, a battery recycling and reuse
11 manufacturer, a green steel manufacturer, an electrical
12 transformer or transformer component part manufacturer, an
13 electric vehicle component parts service provider, a renewable
14 energy service provider, or a battery raw materials refining
15 service provider. "Applicant" does not include a taxpayer who
16 closes or substantially reduces by more than 50% operations at
17 one location in the State and relocates substantially the same
18 operation to another location in the State. This does not
19 prohibit a Taxpayer from expanding its operations at another
20 location in the State. This also does not prohibit a Taxpayer
21 from moving its operations from one location in the State to
22 another location in the State for the purpose of expanding the
23 operation, provided that the Department determines that
24 expansion cannot reasonably be accommodated within the
25 municipality or county in which the business is located, or,
26 in the case of a business located in an incorporated area of
HB2755 Enrolled - 1193 - LRB104 08253 BDA 18303 b
1 the county, within the county in which the business is
2 located, after conferring with the chief elected official of
3 the municipality or county and taking into consideration any
4 evidence offered by the municipality or county regarding the
5 ability to accommodate expansion within the municipality or
6 county.
7 "Battery raw materials" means the raw and processed form
8 of a mineral, metal, chemical, or other material used in an
9 advanced battery component.
10 "Battery raw materials refining service provider" means a
11 business that operates a facility that filters, sifts, and
12 treats battery raw materials for use in an advanced battery.
13 "Battery recycling and reuse manufacturer" means a
14 manufacturer that is primarily engaged in the recovery,
15 retrieval, processing, recycling, or recirculating of battery
16 raw materials for new use in electric vehicle batteries.
17 "Capital improvements" means the purchase, renovation,
18 rehabilitation, or construction of permanent tangible land,
19 buildings, structures, equipment, and furnishings in an
20 approved project sited in Illinois and expenditures for goods
21 or services that are normally capitalized, including
22 organizational costs and research and development costs
23 incurred in Illinois. For land, buildings, structures, and
24 equipment that are leased, the lease must equal or exceed the
25 term of the agreement, and the cost of the property shall be
26 determined from the present value, using the corporate
HB2755 Enrolled - 1194 - LRB104 08253 BDA 18303 b
1 interest rate prevailing at the time of the application, of
2 the lease payments.
3 "Credit" means either a "REV Illinois Credit" or a "REV
4 Construction Jobs Credit" agreed to between the Department and
5 applicant under this Act.
6 "Department" means the Department of Commerce and Economic
7 Opportunity.
8 "Director" means the Director of Commerce and Economic
9 Opportunity.
10 "Electric vehicle" means a vehicle that is exclusively or
11 partially powered by and refueled by electricity, including
12 electricity generated through hydrogen fuel cells or solar
13 technology. "Electric vehicle" also includes hybrid-electric
14 vehicles (HEV) but excludes electric bicycles , except when
15 referencing aircraft with hybrid electric propulsion systems,
16 does not include hybrid electric vehicles, electric bicycles,
17 or extended-range electric vehicles that are also equipped
18 with conventional fueled propulsion or auxiliary engines.
19 "Electric vehicle manufacturer" means a new or existing
20 manufacturer that is primarily focused on reequipping,
21 expanding, or establishing a manufacturing facility in
22 Illinois that produces electric vehicles as defined in this
23 Section.
24 "Electric vehicle component parts manufacturer" means a
25 new or existing manufacturer that is focused on reequipping,
26 expanding, or establishing a manufacturing facility in
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1 Illinois that produces parts or accessories used in electric
2 vehicles, as defined by this Section, including advanced
3 battery component parts. The changes to this definition of
4 "electric vehicle component parts manufacturer" apply to
5 agreements under this Act that are entered into on or after
6 December 21, 2022 (the effective date of Public Act 102-1112)
7 this amendatory Act of the 102nd General Assembly.
8 "Electric vehicle power supply equipment" means the
9 equipment used specifically for the purpose of delivering
10 electricity to an electric vehicle, including hydrogen fuel
11 cells or solar refueling infrastructure.
12 "Electric vehicle power supply manufacturer" means a new
13 or existing manufacturer that is focused on reequipping,
14 expanding, or establishing a manufacturing facility in
15 Illinois that produces electric vehicle power supply equipment
16 used for the purpose of delivering electricity to an electric
17 vehicle, including hydrogen fuel cell or solar refueling
18 infrastructure.
19 "Electric vehicle powertrain technology" means equipment
20 used to convert electricity for use in aerospace propulsion.
21 "Electric vehicle powertrain technology manufacturer"
22 means a new or existing manufacturer that is focused on
23 reequipping, expanding, or establishing a manufacturing
24 facility in Illinois that develops and validates electric
25 vehicle powertrain technology for use in aerospace propulsion.
26 "Electric vertical takeoff and landing aircraft" or "eVTOL
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1 aircraft" means a fully electric aircraft that lands and takes
2 off vertically.
3 "Energy Transition Area" means a county with less than
4 100,000 people or a municipality that contains one or more of
5 the following:
6 (1) a fossil fuel plant that was retired from service
7 or has significant reduced service within 6 years before
8 the time of the application or will be retired or have
9 service significantly reduced within 6 years following the
10 time of the application; or
11 (2) a coal mine that was closed or had operations
12 significantly reduced within 6 years before the time of
13 the application or is anticipated to be closed or have
14 operations significantly reduced within 6 years following
15 the time of the application.
16 "Full-time employee" means an individual who is employed
17 for consideration for at least 35 hours each week or who
18 renders any other standard of service generally accepted by
19 industry custom or practice as full-time employment. An
20 individual for whom a W-2 is issued by a Professional Employer
21 Organization (PEO) is a full-time employee if employed in the
22 service of the applicant for consideration for at least 35
23 hours each week.
24 "Green steel manufacturer" means an entity that
25 manufactures steel without the use of fossil fuels and with
26 zero net carbon emissions.
HB2755 Enrolled - 1197 - LRB104 08253 BDA 18303 b
1 "Hybrid-electric vehicle (HEV)" means a motor vehicle
2 which draws propulsion energy from onboard sources of stored
3 energy that are both an internal combustion engine or heat
4 engine using consumable fuel, and a rechargeable energy
5 storage system such as a battery, capacitor, hydraulic
6 accumulator, or flywheel. This includes plug-in,
7 hybrid-electric vehicles.
8 "Incremental income tax" means the total amount withheld
9 during the taxable year from the compensation of new employees
10 and, if applicable, retained employees under Article 7 of the
11 Illinois Income Tax Act arising from employment at a project
12 that is the subject of an agreement.
13 "Institution of higher education" or "institution" means
14 any accredited public or private university, college,
15 community college, business, technical, or vocational school,
16 or other accredited educational institution offering degrees
17 and instruction beyond the secondary school level.
18 "Minority person" means a minority person as defined in
19 the Business Enterprise for Minorities, Women, and Persons
20 with Disabilities Act.
21 "New employee" means a newly hired, newly-hired full-time
22 employee employed to work at the project site and whose work is
23 directly related to the project.
24 "Noncompliance date" means, in the case of a taxpayer that
25 is not complying with the requirements of the agreement or the
26 provisions of this Act, the day following the last date upon
HB2755 Enrolled - 1198 - LRB104 08253 BDA 18303 b
1 which the taxpayer was in compliance with the requirements of
2 the agreement and the provisions of this Act, as determined by
3 the Director, pursuant to Section 70.
4 "Pass-through entity" means an entity that is exempt from
5 the tax under subsection (b) or (c) of Section 205 of the
6 Illinois Income Tax Act.
7 "Placed in service" means the state or condition of
8 readiness, availability for a specifically assigned function,
9 and the facility is constructed and ready to conduct its
10 facility operations to manufacture goods.
11 "Professional employer organization" (PEO) means an
12 employee leasing company, as defined in Section 206.1 of the
13 Illinois Unemployment Insurance Act.
14 "Program" means the Reimagining Energy and Vehicles in
15 Illinois Program (the REV Illinois Program) established in
16 this Act.
17 "Project" or "REV Illinois Project" means a for-profit
18 economic development activity that is designated by the
19 Department as a REV Illinois Project, is the subject of an
20 agreement, and involves one or more of the following:
21 (1) the manufacture of electric vehicles, electric
22 vehicle component parts, or electric vehicle power supply
23 equipment;
24 (2) the manufacture of renewable energy products;
25 (3) the manufacture of eVTOL aircraft or
26 hybrid-electric or fully electric propulsion systems for
HB2755 Enrolled - 1199 - LRB104 08253 BDA 18303 b
1 airliners;
2 (4) the development of battery recycling and reuse
3 processes;
4 (5) the manufacture of green steel;
5 (6) the provision of battery raw materials
6 refining service; or
7 (7) the manufacture of electrical transformer or
8 transformer component parts. for the manufacture of
9 electric vehicles, electric vehicle component parts,
10 electric vehicle power supply equipment, or renewable
11 energy products, which is designated by the Department as
12 a REV Illinois Project and is the subject of an agreement.
13 "Recycling facility" means a location at which the
14 taxpayer disposes of batteries and other component parts in
15 manufacturing of electric vehicles, electric vehicle component
16 parts, or electric vehicle power supply equipment.
17 "Related member" means a person that, with respect to the
18 taxpayer during any portion of the taxable year, is any one of
19 the following:
20 (1) An individual stockholder, if the stockholder and
21 the members of the stockholder's family (as defined in
22 Section 318 of the Internal Revenue Code) own directly,
23 indirectly, beneficially, or constructively, in the
24 aggregate, at least 50% of the value of the taxpayer's
25 outstanding stock.
26 (2) A partnership, estate, trust and any partner or
HB2755 Enrolled - 1200 - LRB104 08253 BDA 18303 b
1 beneficiary, if the partnership, estate, or trust, and its
2 partners or beneficiaries own directly, indirectly,
3 beneficially, or constructively, in the aggregate, at
4 least 50% of the profits, capital, stock, or value of the
5 taxpayer.
6 (3) A corporation, and any party related to the
7 corporation in a manner that would require an attribution
8 of stock from the corporation under the attribution rules
9 of Section 318 of the Internal Revenue Code, if the
10 Taxpayer owns directly, indirectly, beneficially, or
11 constructively at least 50% of the value of the
12 corporation's outstanding stock.
13 (4) A corporation and any party related to that
14 corporation in a manner that would require an attribution
15 of stock from the corporation to the party or from the
16 party to the corporation under the attribution rules of
17 Section 318 of the Internal Revenue Code, if the
18 corporation and all such related parties own in the
19 aggregate at least 50% of the profits, capital, stock, or
20 value of the taxpayer.
21 (5) A person to or from whom there is an attribution of
22 stock ownership in accordance with Section 1563(e) of the
23 Internal Revenue Code, except, for purposes of determining
24 whether a person is a related member under this paragraph,
25 20% shall be substituted for 5% wherever 5% appears in
26 Section 1563(e) of the Internal Revenue Code.
HB2755 Enrolled - 1201 - LRB104 08253 BDA 18303 b
1 "Renewable energy" means energy produced through renewable
2 energy resources, as defined in Section 1-10 of the Illinois
3 Power Agency Act, and nuclear power using the materials and
4 sources of energy through which renewable energy resources are
5 generated.
6 "Renewable energy manufacturer" means a manufacturer whose
7 primary function is to manufacture or assemble: (i) equipment,
8 systems, or products used to produce renewable or nuclear
9 energy; (ii) products used for energy storage, or grid
10 efficiency purposes; or (iii) component parts for that
11 equipment or those systems or products.
12 "Renewable energy resources" has the meaning ascribed to
13 that term in Section 1-10 of the Illinois Power Agency Act.
14 "Research and development" means work directed toward the
15 innovation, introduction, and improvement of products and
16 processes. "Research and development" includes all levels of
17 research and development that directly result in the potential
18 manufacturing and marketability of renewable energy, electric
19 vehicles, electric vehicle component parts, and electric or
20 hybrid aircraft.
21 "Retained employee" means a full-time employee employed by
22 the taxpayer prior to the term of the Agreement who continues
23 to be employed during the term of the agreement whose job
24 duties are directly related to the project. The term "retained
25 employee" does not include any individual who has a direct or
26 an indirect ownership interest of at least 5% in the profits,
HB2755 Enrolled - 1202 - LRB104 08253 BDA 18303 b
1 equity, capital, or value of the taxpayer or a child,
2 grandchild, parent, or spouse, other than a spouse who is
3 legally separated from the individual, of any individual who
4 has a direct or indirect ownership of at least 5% in the
5 profits, equity, capital, or value of the taxpayer. The
6 changes to this definition of "retained employee" apply to
7 agreements for credits under this Act that are entered into on
8 or after December 21, 2022 (the effective date of Public Act
9 102-1112) this amendatory Act of the 102nd General Assembly.
10 "REV Illinois credit" means a credit agreed to between the
11 Department and the applicant under this Act that is based on
12 the incremental income tax attributable to new employees and,
13 if applicable, retained employees, and on training costs for
14 such employees at the applicant's project.
15 "REV construction jobs credit" means a credit agreed to
16 between the Department and the applicant under this Act that
17 is based on the incremental income tax attributable to
18 construction wages paid in connection with construction of the
19 project facilities.
20 "Statewide baseline" means the total number of full-time
21 employees of the applicant and any related member employed by
22 such entities at the time of application for incentives under
23 this Act.
24 "Taxpayer" means an individual, corporation, partnership,
25 or other entity that has a legal obligation to pay Illinois
26 income taxes and file an Illinois income tax return.
HB2755 Enrolled - 1203 - LRB104 08253 BDA 18303 b
1 "Training costs" means costs incurred to upgrade the
2 technological skills of full-time employees in Illinois and
3 includes: curriculum development; training materials
4 (including scrap product costs); trainee domestic travel
5 expenses; instructor costs (including wages, fringe benefits,
6 tuition, and domestic travel expenses); rent, purchase, or
7 lease of training equipment; and other usual and customary
8 training costs. "Training costs" do not include costs
9 associated with travel outside the United States (unless the
10 Taxpayer receives prior written approval for the travel by the
11 Director based on a showing of substantial need or other proof
12 the training is not reasonably available within the United
13 States), wages and fringe benefits of employees during periods
14 of training, or administrative cost related to full-time
15 employees of the taxpayer.
16 "Underserved area" means any geographic area as defined in
17 Section 5-5 of the Economic Development for a Growing Economy
18 Tax Credit Act.
19 (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
20 102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23; 103-595, eff.
21 6-26-24; revised 10-24-24.)
22 (20 ILCS 686/20)
23 Sec. 20. REV Illinois Program; project applications.
24 (a) The Reimagining Energy and Vehicles in Illinois (REV
25 Illinois) Program is hereby established and shall be
HB2755 Enrolled - 1204 - LRB104 08253 BDA 18303 b
1 administered by the Department. The Program will provide
2 financial incentives to any one or more of the following: (1)
3 eligible manufacturers of electric vehicles, electric vehicle
4 component parts, and electric vehicle power supply equipment;
5 (2) battery recycling and reuse manufacturers; (3) battery raw
6 materials refining service providers; or (4) renewable energy
7 manufacturers.
8 (b) Any taxpayer planning a project to be located in
9 Illinois may request consideration for designation of its
10 project as a REV Illinois Project, by formal written letter of
11 request or by formal application to the Department, in which
12 the applicant states its intent to make at least a specified
13 level of investment and intends to hire a specified number of
14 full-time employees at a designated location in Illinois. As
15 circumstances require, the Department shall require a formal
16 application from an applicant and a formal letter of request
17 for assistance.
18 (c) In order to qualify for credits under the REV Illinois
19 Program, an applicant must:
20 (1) if the applicant is an electric vehicle
21 manufacturer:
22 (A) make an investment of at least $1,500,000,000
23 in capital improvements at the project site;
24 (B) to be placed in service within the State
25 within a 60-month period after approval of the
26 application; and
HB2755 Enrolled - 1205 - LRB104 08253 BDA 18303 b
1 (C) create at least 500 new full-time employee
2 jobs; or
3 (2) if the applicant is: an electric vehicle component
4 parts manufacturer; , a renewable energy manufacturer; , a
5 green steel manufacturer; electrical transformer or
6 transformer component part manufacturer;, or an entity
7 engaged in research, development, or manufacturing of
8 eVTOL aircraft or hybrid-electric or fully electric
9 propulsion systems for airliners; an electric vehicle
10 power supply equipment manufacturer; a battery recycling
11 and reuse manufacturer; or a battery raw materials
12 refining service provider:
13 (A) make an investment of at least $300,000,000 in
14 capital improvements at the project site;
15 (B) manufacture one or more parts that are
16 primarily used for electric vehicle, renewable energy,
17 or green steel manufacturing or electrical transformer
18 or transformer component part manufacturer;
19 (C) to be placed in service within the State
20 within a 60-month period after approval of the
21 application; and
22 (D) create at least 150 new full-time employee
23 jobs; or
24 (3) if the agreement is entered into before February
25 3, 2023 (the effective date of Public Act 102-1125) this
26 amendatory Act of the 102nd General Assembly and the
HB2755 Enrolled - 1206 - LRB104 08253 BDA 18303 b
1 applicant is an electric vehicle manufacturer, an electric
2 vehicle power supply equipment manufacturer, an electric
3 vehicle component part manufacturer, renewable energy
4 manufacturer, or green steel manufacturer, or electrical
5 transformer or transformer component part manufacturer,
6 that does not qualify under paragraph (2) above, a battery
7 recycling and reuse manufacturer, or a battery raw
8 materials refining service provider:
9 (A) make an investment of at least $20,000,000 in
10 capital improvements at the project site;
11 (B) for electric vehicle component part
12 manufacturers, manufacture one or more parts that are
13 primarily used for electric vehicle manufacturing;
14 (C) to be placed in service within the State
15 within a 48-month period after approval of the
16 application; and
17 (D) create at least 50 new full-time employee
18 jobs; or
19 (3.1) if the agreement is entered into on or after
20 February 3, 2023 (the effective date of Public Act
21 102-1125), this amendatory Act of the 102nd General
22 Assembly the applicant does not qualify under paragraph
23 (2) above, and the applicant is: an electric vehicle
24 manufacturer; , an electric vehicle power supply equipment
25 manufacturer; , an electric vehicle component part
26 manufacturer; , a renewable energy manufacturer; , a green
HB2755 Enrolled - 1207 - LRB104 08253 BDA 18303 b
1 steel manufacturer; a manufacturer of electrical
2 transformers or transformer component parts; , or an
3 entity engaged in research, development, or manufacturing
4 of eVTOL aircraft or hybrid-electric or fully electric
5 propulsion systems for airliners; that does not qualify
6 under paragraph (2) above a battery recycling and reuse
7 manufacturer; , or a battery raw materials refining
8 service provider:
9 (A) make an investment of at least $2,500,000 in
10 capital improvements at the project site;
11 (B) in the case of electric vehicle component part
12 manufacturers, manufacture one or more parts that are
13 used for electric vehicle manufacturing;
14 (C) to be placed in service within the State
15 within a 48-month period after approval of the
16 application; and
17 (D) create the lesser of 50 new full-time employee
18 jobs or new full-time employee jobs equivalent to 10%
19 of the Statewide baseline applicable to the taxpayer
20 and any related member at the time of application; or
21 (4) if the agreement is entered into before February
22 3, 2023 (the effective date of Public Act 102-1125) this
23 amendatory Act of the 102nd General Assembly and the
24 applicant is an electric vehicle manufacturer or electric
25 vehicle component parts manufacturer with existing
26 operations within Illinois that intends to convert or
HB2755 Enrolled - 1208 - LRB104 08253 BDA 18303 b
1 expand, in whole or in part, the existing facility from
2 traditional manufacturing to primarily electric vehicle
3 manufacturing, electric vehicle component parts
4 manufacturing, an electric vehicle power supply equipment
5 manufacturing, or a green steel manufacturer, electrical
6 transformer or transformer component part manufacturer:
7 (A) make an investment of at least $100,000,000 in
8 capital improvements at the project site;
9 (B) to be placed in service within the State
10 within a 60-month period after approval of the
11 application; and
12 (C) create the lesser of 75 new full-time employee
13 jobs or new full-time employee jobs equivalent to 10%
14 of the Statewide baseline applicable to the taxpayer
15 and any related member at the time of application;
16 (4.1) if the agreement is entered into on or after
17 February 3, 2023 (the effective date of Public Act
18 102-1125) this amendatory Act of the 102nd General
19 Assembly and the applicant (i) is any of the following: an
20 electric vehicle manufacturer; , an electric vehicle
21 component parts manufacturer; , a renewable energy
22 manufacturer; , a green steel manufacturer; electrical
23 transformer or transformer component part; , or an entity
24 engaged in research, development, or manufacturing of
25 eVTOL aircraft or hybrid-electric hybrid electric or fully
26 electric propulsion systems for airliners and (ii) has
HB2755 Enrolled - 1209 - LRB104 08253 BDA 18303 b
1 existing operations within Illinois that the applicant
2 intends to convert or expand, in whole or in part, from
3 traditional manufacturing to electric vehicle
4 manufacturing, electric vehicle component parts
5 manufacturing, renewable energy manufacturing, or electric
6 vehicle power supply equipment manufacturing:
7 (A) make an investment of at least $100,000,000 in
8 capital improvements at the project site;
9 (B) to be placed in service within the State
10 within a 60-month period after approval of the
11 application; and
12 (C) create the lesser of 50 new full-time employee
13 jobs or new full-time employee jobs equivalent to 10%
14 of the Statewide baseline applicable to the taxpayer
15 and any related member at the time of application; or
16 (5) if the agreement is entered into on or after June
17 7, 2023 (the effective date of the changes made to this
18 Section by Public Act 103-9) this amendatory Act of the
19 103rd General Assembly and before June 1, 2024 and the
20 applicant (i) is an electric vehicle manufacturer, an
21 electric vehicle component parts manufacturer, or a
22 renewable energy manufacturer or (ii) has existing
23 operations within Illinois that the applicant intends to
24 convert or expand, in whole or in part, from traditional
25 manufacturing to electric vehicle manufacturing, electric
26 vehicle component parts manufacturing, renewable energy
HB2755 Enrolled - 1210 - LRB104 08253 BDA 18303 b
1 manufacturing, or electric vehicle power supply equipment
2 manufacturing:
3 (A) make an investment of at least $500,000,000 in
4 capital improvements at the project site;
5 (B) to be placed in service within the State
6 within a 60-month period after approval of the
7 application; and
8 (C) retain at least 800 full-time employee jobs at
9 the project.
10 (d) For agreements entered into prior to April 19, 2022
11 (the effective date of Public Act 102-700), for any applicant
12 creating the full-time employee jobs noted in subsection (c),
13 those jobs must have a total compensation equal to or greater
14 than 120% of the average wage paid to full-time employees in
15 the county where the project is located, as determined by the
16 U.S. Bureau of Labor Statistics. For agreements entered into
17 on or after April 19, 2022 (the effective date of Public Act
18 102-700), for any applicant creating the full-time employee
19 jobs noted in subsection (c), those jobs must have a
20 compensation equal to or greater than 120% of the average wage
21 paid to full-time employees in a similar position within an
22 occupational group in the county where the project is located,
23 as determined by the Department.
24 (e) For any applicant, within 24 months after being placed
25 in service, it must certify to the Department that it is carbon
26 neutral or has attained certification under one of more of the
HB2755 Enrolled - 1211 - LRB104 08253 BDA 18303 b
1 following green building standards:
2 (1) BREEAM for New Construction or BREEAM In-Use;
3 (2) ENERGY STAR;
4 (3) Envision;
5 (4) ISO 50001 - energy management;
6 (5) LEED for Building Design and Construction or LEED
7 for Building Operations and Maintenance;
8 (6) Green Globes for New Construction or Green Globes
9 for Existing Buildings; or
10 (7) UL 3223.
11 (f) Each applicant must outline its hiring plan and
12 commitment to recruit and hire full-time employee positions at
13 the project site. The hiring plan may include a partnership
14 with an institution of higher education to provide
15 internships, including, but not limited to, internships
16 supported by the Clean Jobs Workforce Network Program, or
17 full-time permanent employment for students at the project
18 site. Additionally, the applicant may create or utilize
19 participants from apprenticeship programs that are approved by
20 and registered with the United States Department of Labor's
21 Bureau of Apprenticeship and Training. The applicant may apply
22 for apprenticeship education expense credits in accordance
23 with the provisions set forth in 14 Ill. Adm. Code 522. Each
24 applicant, in each year when seeking a credit under this Act,
25 is required to report annually, on or before April 15, on the
26 diversity of its workforce in accordance with Section 50 of
HB2755 Enrolled - 1212 - LRB104 08253 BDA 18303 b
1 this Act. For existing facilities of applicants under
2 paragraph (3) of subsection (b) above, if the taxpayer expects
3 a reduction in force due to its transition to manufacturing
4 electric vehicle, electric vehicle component parts, or
5 electric vehicle power supply equipment, the plan submitted
6 under this Section must outline the taxpayer's plan to assist
7 with retraining its workforce aligned with the taxpayer's
8 adoption of new technologies and anticipated efforts to
9 retrain employees through employment opportunities within the
10 taxpayer's workforce.
11 (g) Each applicant must demonstrate a contractual or other
12 relationship with a recycling facility, or demonstrate its own
13 recycling capabilities, at the time of application and report
14 annually a continuing contractual or other relationship with a
15 recycling facility and the percentage of batteries used in
16 electric vehicles recycled throughout the term of the
17 agreement.
18 (h) A taxpayer may not enter into more than one agreement
19 under this Act with respect to a single address or location for
20 the same period of time. Also, a taxpayer may not enter into an
21 agreement under this Act with respect to a single address or
22 location for the same period of time for which the taxpayer
23 currently holds an active agreement under the Economic
24 Development for a Growing Economy Tax Credit Act. This
25 provision does not preclude the applicant from entering into
26 an additional agreement after the expiration or voluntary
HB2755 Enrolled - 1213 - LRB104 08253 BDA 18303 b
1 termination of an earlier agreement under this Act or under
2 the Economic Development for a Growing Economy Tax Credit Act
3 to the extent that the taxpayer's application otherwise
4 satisfies the terms and conditions of this Act and is approved
5 by the Department. An applicant with an existing agreement
6 under the Economic Development for a Growing Economy Tax
7 Credit Act may submit an application for an agreement under
8 this Act after it terminates any existing agreement under the
9 Economic Development for a Growing Economy Tax Credit Act with
10 respect to the same address or location. If a project that is
11 subject to an existing agreement under the Economic
12 Development for a Growing Economy Tax Credit Act meets the
13 requirements to be designated as a REV Illinois project under
14 this Act, including for actions undertaken prior to the
15 effective date of this Act, the taxpayer that is subject to
16 that existing agreement under the Economic Development for a
17 Growing Economy Tax Credit Act may apply to the Department to
18 amend the agreement to allow the project to become a
19 designated REV Illinois project. Following the amendment, time
20 accrued during which the project was eligible for credits
21 under the existing agreement under the Economic Development
22 for a Growing Economy Tax Credit Act shall count toward the
23 duration of the credit subject to limitations described in
24 Section 40 of this Act.
25 (i) If, at any time following the designation of a project
26 as a REV Illinois Project by the Department and prior to the
HB2755 Enrolled - 1214 - LRB104 08253 BDA 18303 b
1 termination or expiration of an agreement under this Act, the
2 project ceases to qualify as a REV Illinois project because
3 the taxpayer is no longer an electric vehicle manufacturer, an
4 electric vehicle component manufacturer, an electric vehicle
5 power supply equipment manufacturer, a battery recycling and
6 reuse manufacturer, a battery raw materials refining service
7 provider, a green steel manufacturer, an electrical
8 transformer manufacturer or transformer component part, or an
9 entity engaged in eVTOL or hybrid-electric hybrid electric or
10 fully electric propulsion systems for airliners research,
11 development, or manufacturing, that project may receive tax
12 credit awards as described in Section 5-15 and Section 5-51 of
13 the Economic Development for a Growing Economy Tax Credit Act,
14 as long as the project continues to meet requirements to
15 obtain those credits as described in the Economic Development
16 for a Growing Economy Tax Credit Act and remains compliant
17 with terms contained in the Agreement under this Act not
18 related to their status as an electric vehicle manufacturer,
19 an electric vehicle component manufacturer, an electric
20 vehicle power supply equipment manufacturer, a battery
21 recycling and reuse manufacturer, a battery raw materials
22 refining service provider, a green steel manufacturer, an
23 electrical transformer or transformer component part
24 manufacturer, or an entity engaged in eVTOL or hybrid-electric
25 or fully electric propulsion systems for airliners research,
26 development, or manufacturing. Time accrued during which the
HB2755 Enrolled - 1215 - LRB104 08253 BDA 18303 b
1 project was eligible for credits under an agreement under this
2 Act shall count toward the duration of the credit subject to
3 limitations described in Section 5-45 of the Economic
4 Development for a Growing Economy Tax Credit Act.
5 (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
6 102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23; 103-9, eff.
7 6-7-23; 103-595, eff. 6-26-24; revised 10-24-24.)
8 (20 ILCS 686/45)
9 Sec. 45. Contents of agreements with applicants.
10 (a) The Department shall enter into an agreement with an
11 applicant that is awarded a credit under this Act. The
12 agreement shall include all of the following:
13 (1) A detailed description of the project that is the
14 subject of the agreement, including the location and
15 amount of the investment and jobs created or retained.
16 (2) The duration of the credit, the first taxable year
17 for which the credit may be awarded, and the first taxable
18 year in which the credit may be used by the taxpayer.
19 (3) The credit amount that will be allowed for each
20 taxable year.
21 (4) For a project qualified under paragraphs (1), (2),
22 (4), or (5) of subsection (c) of Section 20, a requirement
23 that the taxpayer shall maintain operations at the project
24 location a minimum number of years not to exceed 15. For a
25 project qualified under paragraph (3) of subsection (c) of
HB2755 Enrolled - 1216 - LRB104 08253 BDA 18303 b
1 Section 20, a requirement that the taxpayer shall maintain
2 operations at the project location a minimum number of
3 years not to exceed 10.
4 (5) A specific method for determining the number of
5 new employees and if applicable, retained employees,
6 employed during a taxable year.
7 (6) A requirement that the taxpayer shall report
8 annually, in the years when the taxpayer is seeking a tax
9 credit, annually report to the Department the number of
10 new employees, the incremental income tax withheld in
11 connection with the new employees, and any other
12 information the Department deems necessary and appropriate
13 to perform its duties under this Act.
14 (7) A requirement that the Director is authorized to
15 verify with the appropriate State agencies the amounts
16 reported under paragraph (6), and after doing so shall
17 issue a certificate to the taxpayer stating that the
18 amounts have been verified.
19 (8) A requirement that the taxpayer shall provide
20 written notification to the Director not more than 30 days
21 after the taxpayer makes or receives a proposal that would
22 transfer the taxpayer's State tax liability obligations to
23 a successor taxpayer.
24 (9) (Blank). A detailed description of the number of
25 new employees to be hired, and the occupation and payroll
26 of full-time jobs to be created or retained because of the
HB2755 Enrolled - 1217 - LRB104 08253 BDA 18303 b
1 project.
2 (10) The minimum investment the taxpayer will make in
3 capital improvements, the time period for placing the
4 property in service, and the designated location in
5 Illinois for the investment.
6 (11) A requirement that the taxpayer shall provide
7 written notification to the Director and the Director's
8 designee not more than 30 days after the taxpayer
9 determines that the minimum job creation or retention,
10 employment payroll, or investment no longer is or will be
11 achieved or maintained as set forth in the terms and
12 conditions of the agreement. Additionally, the
13 notification should outline to the Department the number
14 of layoffs, date of the layoffs, and detail taxpayer's
15 efforts to provide career and training counseling for the
16 impacted workers with industry-related certifications and
17 trainings.
18 (12) If applicable, a provision that, if the total
19 number of new employees falls below a specified level, the
20 allowance of credit shall be suspended until the number of
21 new employees equals or exceeds the agreement amount.
22 (13) If applicable, a provision that specifies the
23 statewide baseline at the time of application for retained
24 employees. The agreement must have a provision addressing
25 if the total number of retained employees falls below the
26 lesser of the statewide baseline or the retention
HB2755 Enrolled - 1218 - LRB104 08253 BDA 18303 b
1 requirements specified in the agreement, the allowance of
2 the credit shall be suspended until the number of retained
3 employees equals or exceeds the agreement amount.
4 (14) A detailed description of the items for which the
5 costs incurred by the Taxpayer will be included in the
6 limitation on the Credit provided in Section 40.
7 (15) If the agreement is entered into before the
8 effective date of the changes made to this Section by this
9 amendatory Act of the 103rd General Assembly, a provision
10 stating that if the taxpayer fails to meet either the
11 investment or job creation and retention requirements
12 specified in the agreement during the entire 5-year period
13 beginning on the first day of the first taxable year in
14 which the agreement is executed and ending on the last day
15 of the fifth taxable year after the agreement is executed,
16 then the agreement is automatically terminated on the last
17 day of the fifth taxable year after the agreement is
18 executed, and the taxpayer is not entitled to the award of
19 any credits for any of that 5-year period. If the
20 agreement is entered into on or after the effective date
21 of the changes made to this Section by this amendatory Act
22 of the 103rd General Assembly, a provision stating that if
23 the taxpayer fails to meet either the investment or job
24 creation and retention requirements specified in the
25 agreement during the entire 10-year period beginning on
26 the effective date of the agreement and ending 10 years
HB2755 Enrolled - 1219 - LRB104 08253 BDA 18303 b
1 after the effective date of the agreement, then the
2 agreement is automatically terminated, and the taxpayer is
3 not entitled to the award of any credits for any of that
4 10-year period.
5 (16) A provision stating that if the taxpayer ceases
6 principal operations with the intent to permanently shut
7 down the project in the State during the term of the
8 Agreement, then the entire credit amount awarded to the
9 taxpayer prior to the date the taxpayer ceases principal
10 operations shall be returned to the Department and shall
11 be reallocated to the local workforce investment area in
12 which the project was located.
13 (17) A provision stating that the Taxpayer must
14 provide the reports outlined in Sections 50 and 55 on or
15 before April 15 each year.
16 (18) A provision requiring the taxpayer to report
17 annually its contractual obligations or otherwise with a
18 recycling facility for its operations.
19 (19) Any other performance conditions or contract
20 provisions the Department determines are necessary or
21 appropriate.
22 (20) Each taxpayer under paragraph (1) of subsection
23 (c) of Section 20 above shall maintain labor neutrality
24 toward any union organizing campaign for any employees of
25 the taxpayer assigned to work on the premises of the REV
26 Illinois Project Site. This paragraph shall not apply to
HB2755 Enrolled - 1220 - LRB104 08253 BDA 18303 b
1 an electric vehicle manufacturer, electric vehicle
2 component part manufacturer, electric vehicle power supply
3 manufacturer, or renewable energy manufacturer, or any
4 joint venture including an electric vehicle manufacturer,
5 electric vehicle component part manufacturer, electric
6 vehicle power supply manufacturer, renewable energy
7 manufacturer, or an entity engaged in eVTOL or
8 hybrid-electric or fully electric propulsion systems for
9 airliners research, development, or manufacturing, who is
10 subject to collective bargaining agreement entered into
11 prior to the taxpayer filing an application pursuant to
12 this Act.
13 (b) The Department shall post on its website the terms of
14 each agreement entered into under this Act. Such information
15 shall be posted within 10 days after entering into the
16 agreement and must include the following:
17 (1) the name of the taxpayer;
18 (2) the location of the project;
19 (3) the estimated value of the credit;
20 (4) the number of new employee jobs and, if
21 applicable, number of retained employee jobs at the
22 project; and
23 (5) whether or not the project is in an underserved
24 area or energy transition area.
25 (Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23;
26 103-9, eff. 6-7-23; 103-595, eff. 6-26-24.)
HB2755 Enrolled - 1221 - LRB104 08253 BDA 18303 b
1 Section 80-920. The Illinois Income Tax Act is amended by
2 changing Section 231 and by adding Section 252 as follows:
3 (35 ILCS 5/231)
4 Sec. 231. Apprenticeship education expense credit.
5 (a) As used in this Section:
6 "Accredited training organization" means an organization
7 that:
8 (1) incurs costs related to training apprentice
9 employees;
10 (2) maintains an apprenticeship program approved by
11 the United States Department of Labor, Office of
12 Apprenticeships, that results in an industry-recognized
13 credential; and either
14 (3) is affiliated with a public or nonpublic secondary
15 school in Illinois and is:
16 (A) an institution of higher education that
17 provides a program that leads to an
18 industry-recognized postsecondary credential or
19 degree;
20 (B) an entity that carries out programs that
21 are registered under the federal National
22 Apprenticeship Act; or
23 (C) a public or private provider of a program
24 of training services, including, but not limited to, a
HB2755 Enrolled - 1222 - LRB104 08253 BDA 18303 b
1 joint labor-management organization; or
2 (4) is not affiliated with a public or nonpublic
3 secondary school in Illinois but receives preapproval from
4 the Department to receive tax credits under this Section.
5 "Department" means the Department of Commerce and Economic
6 Opportunity.
7 "Employer" means an Illinois taxpayer who is the employer
8 of the qualifying apprentice.
9 "Qualifying apprentice" means an individual who: (i) is a
10 resident of the State of Illinois; (ii) is at least 16 years
11 old at the close of the school year for which a credit is
12 sought; (iii) during the school year for which a credit is
13 sought, was a full-time apprentice enrolled in an
14 apprenticeship program which is registered with the United
15 States Department of Labor, Office of Apprenticeship; and (iv)
16 is employed in Illinois by the taxpayer who is the employer.
17 "Qualified education expense" means the amount incurred on
18 behalf of a qualifying apprentice not to exceed $3,500 for
19 tuition, instructional materials, book fees (including, but
20 not limited to, book, license, and lab fees), or , and lab fees
21 other expenses that are directly related to training the
22 apprentices and that are preapproved by the Department. All
23 expenses must be paid to or incurred for training at the
24 school, or community college, or organization where in which
25 the apprentice receives training is enrolled during the
26 regular school year.
HB2755 Enrolled - 1223 - LRB104 08253 BDA 18303 b
1 "School" means any public or nonpublic secondary school in
2 Illinois that is: (i) an institution of higher education that
3 provides a program that leads to an industry-recognized
4 postsecondary credential or degree; (ii) an entity that
5 carries out programs registered under the federal National
6 Apprenticeship Act; or (iii) another public or private
7 provider of a program of training services, which may include
8 a joint labor-management organization.
9 (b) For taxable years beginning on or after January 1,
10 2020, and beginning on or before January 1, 2026, the employer
11 of one or more qualifying apprentices shall be allowed a
12 credit against the tax imposed by subsections (a) and (b) of
13 Section 201 of the Illinois Income Tax Act for qualified
14 education expenses incurred on behalf of a qualifying
15 apprentice. The credit shall be equal to 100% of the qualified
16 education expenses, but in no event may the total credit
17 amount awarded to a single taxpayer in a single taxable year
18 exceed $3,500 per qualifying apprentice. A taxpayer shall be
19 entitled to an additional $1,500 credit against the tax
20 imposed by subsections (a) and (b) of Section 201 of the
21 Illinois Income Tax Act if (i) the qualifying apprentice
22 resides in an underserved area as defined in Section 5-5 of the
23 Economic Development for a Growing Economy Tax Credit Act
24 during the school year for which a credit is sought by an
25 employer or (ii) the employer's principal place of business is
26 located in an underserved area, as defined in Section 5-5 of
HB2755 Enrolled - 1224 - LRB104 08253 BDA 18303 b
1 the Economic Development for a Growing Economy Tax Credit Act.
2 In no event shall a credit under this Section reduce the
3 taxpayer's liability under this Act to less than zero. For
4 taxable years ending before December 31, 2023, for partners,
5 shareholders of Subchapter S corporations, and owners of
6 limited liability companies, if the liability company is
7 treated as a partnership for purposes of federal and State
8 income taxation, there shall be allowed a credit under this
9 Section to be determined in accordance with the determination
10 of income and distributive share of income under Sections 702
11 and 704 and Subchapter S of the Internal Revenue Code. For
12 taxable years ending on or after December 31, 2023, partners
13 and shareholders of subchapter S corporations are entitled to
14 a credit under this Section as provided in Section 251.
15 (c) The Department shall implement a program to certify
16 applicants for an apprenticeship credit under this Section.
17 Upon satisfactory review, the Department shall issue a tax
18 credit certificate to an employer incurring costs on behalf of
19 a qualifying apprentice stating the amount of the tax credit
20 to which the employer is entitled. If the employer is seeking a
21 tax credit for multiple qualifying apprentices, the Department
22 may issue a single tax credit certificate that encompasses the
23 aggregate total of tax credits for qualifying apprentices for
24 a single employer.
25 (d) The Department, in addition to those powers granted
26 under the Civil Administrative Code of Illinois, is granted
HB2755 Enrolled - 1225 - LRB104 08253 BDA 18303 b
1 and shall have all the powers necessary or convenient to carry
2 out and effectuate the purposes and provisions of this
3 Section, including, but not limited to, power and authority
4 to:
5 (1) Adopt rules deemed necessary and appropriate for
6 the administration of this Section; establish forms for
7 applications, notifications, contracts, or any other
8 agreements; and accept applications at any time during the
9 year and require that all applications be submitted via
10 the Internet. The Department shall require that
11 applications be submitted in electronic form.
12 (2) Provide guidance and assistance to applicants
13 pursuant to the provisions of this Section and cooperate
14 with applicants to promote, foster, and support job
15 creation within the State.
16 (3) Enter into agreements and memoranda of
17 understanding for participation of and engage in
18 cooperation with agencies of the federal government, units
19 of local government, universities, research foundations or
20 institutions, regional economic development corporations,
21 or other organizations for the purposes of this Section.
22 (4) Gather information and conduct inquiries, in the
23 manner and by the methods it deems desirable, including,
24 without limitation, gathering information with respect to
25 applicants for the purpose of making any designations or
26 certifications necessary or desirable or to gather
HB2755 Enrolled - 1226 - LRB104 08253 BDA 18303 b
1 information in furtherance of the purposes of this Act.
2 (5) Establish, negotiate, and effectuate any term,
3 agreement, or other document with any person necessary or
4 appropriate to accomplish the purposes of this Section,
5 and consent, subject to the provisions of any agreement
6 with another party, to the modification or restructuring
7 of any agreement to which the Department is a party.
8 (6) Provide for sufficient personnel to permit
9 administration, staffing, operation, and related support
10 required to adequately discharge its duties and
11 responsibilities described in this Section from funds made
12 available through charges to applicants or from funds as
13 may be appropriated by the General Assembly for the
14 administration of this Section.
15 (7) Require applicants, upon written request, to issue
16 any necessary authorization to the appropriate federal,
17 State, or local authority or any other person for the
18 release to the Department of information requested by the
19 Department, including, but not be limited to, financial
20 reports, returns, or records relating to the applicant or
21 to the amount of credit allowable under this Section.
22 (8) Require that an applicant shall, at all times,
23 keep proper books of record and account in accordance with
24 generally accepted accounting principles consistently
25 applied, with the books, records, or papers related to the
26 agreement in the custody or control of the applicant open
HB2755 Enrolled - 1227 - LRB104 08253 BDA 18303 b
1 for reasonable Department inspection and audits,
2 including, without limitation, the making of copies of the
3 books, records, or papers.
4 (9) Take whatever actions are necessary or appropriate
5 to protect the State's interest in the event of
6 bankruptcy, default, foreclosure, or noncompliance with
7 the terms and conditions of financial assistance or
8 participation required under this Section or any agreement
9 entered into under this Section, including the power to
10 sell, dispose of, lease, or rent, upon terms and
11 conditions determined by the Department to be appropriate,
12 real or personal property that the Department may recover
13 as a result of these actions.
14 (e) The Department, in consultation with the Department of
15 Revenue, shall adopt rules to administer this Section. The
16 aggregate amount of the tax credits that may be claimed under
17 this Section for qualified education expenses incurred by an
18 employer on behalf of a qualifying apprentice shall be limited
19 to $5,000,000 per calendar year. If applications for a greater
20 amount are received, credits shall be allowed on a first-come
21 first-served basis, based on the date on which each properly
22 completed application for a certificate of eligibility is
23 received by the Department. If more than one certificate is
24 received on the same day, the credits will be awarded based on
25 the time of submission for that particular day.
26 (f) An employer may not sell or otherwise transfer a
HB2755 Enrolled - 1228 - LRB104 08253 BDA 18303 b
1 credit awarded under this Section to another person or
2 taxpayer.
3 (g) The employer shall provide the Department such
4 information as the Department may require, including, but not
5 limited to: (i) the name, age, and taxpayer identification
6 number of each qualifying apprentice employed by the taxpayer
7 during the taxable year; (ii) the amount of qualified
8 education expenses incurred with respect to each qualifying
9 apprentice; and (iii) the name of the accredited training
10 organization school at which the qualifying apprentice is
11 enrolled and the qualified education expenses are incurred.
12 (h) On or before July 1 of each year, the Department shall
13 report to the Governor and the General Assembly on the tax
14 credit certificates awarded under this Section for the prior
15 calendar year. The report must include:
16 (1) the name of each employer awarded or allocated a
17 credit;
18 (2) the number of qualifying apprentices for whom the
19 employer has incurred qualified education expenses;
20 (3) the North American Industry Classification System
21 (NAICS) code applicable to each employer awarded or
22 allocated a credit;
23 (4) the amount of the credit awarded or allocated to
24 each employer;
25 (5) the total number of employers awarded or allocated
26 a credit;
HB2755 Enrolled - 1229 - LRB104 08253 BDA 18303 b
1 (6) the total number of qualifying apprentices for
2 whom employers receiving credits under this Section
3 incurred qualified education expenses; and
4 (7) the average cost to the employer of all
5 apprenticeships receiving credits under this Section.
6 (Source: P.A. 102-558, eff. 8-20-21; 103-396, eff. 1-1-24;
7 103-1059, eff. 12-20-24.)
8 (35 ILCS 5/252 new)
9 Sec. 252. Advancing Innovative Manufacturing for Illinois
10 Tax Credit.
11 (a) For tax years beginning on or after January 1, 2026, a
12 taxpayer who has entered into an agreement under the Advancing
13 Innovative Manufacturing for Illinois Tax Credit Act is
14 entitled to a credit against the taxes imposed under
15 subsections (a) and (b) of Section 201 of this Act in an amount
16 to be determined in the Agreement. If the taxpayer is a
17 partnership or Subchapter S corporation, the credit shall be
18 allowed to the partners or shareholders in accordance with the
19 provisions of Section 251. The Department, in cooperation with
20 the Department of Commerce and Economic Opportunity, shall
21 adopt rules to enforce and administer the provisions of this
22 Section. This Section is exempt from the provisions of Section
23 250 of this Act.
24 (b) The credit established under this Section is subject
25 to the conditions set forth in the agreement and the following
HB2755 Enrolled - 1230 - LRB104 08253 BDA 18303 b
1 limitations:
2 (1) The amount of the credit shall be as stated in the
3 agreement between the taxpayer and the Department of
4 Commerce and Economic Opportunity. The production of a tax
5 credit certificate shall occur after the project is placed
6 in service and the taxpayer adequately completes all
7 required reporting demonstrating completion of the capital
8 improvement investment as outlined within the program
9 agreement. The credit shall be available only in the
10 taxable year in which the project is placed in service.
11 Except as applied in a carryover year pursuant to
12 paragraph (2), the credit may not be applied against any
13 State income tax liability in more than 10 taxable years.
14 (2) The credit shall be claimed for the taxable year
15 in which the tax credit award certificate is issued, and
16 the certificate shall be attached to the return. The
17 credit may not exceed the amount of the taxpayer's
18 liability under subsections (a) and (b) of Section 201 of
19 this Act. Any credit that is unused in the year the credit
20 is computed may be carried forward and applied to the tax
21 liability for 10 taxable years following the excess credit
22 year. The credit shall be applied to the earliest year for
23 which there is a tax liability.
24 (3) No credit shall be allowed with respect to any
25 agreement for any taxable year ending after the
26 noncompliance date. Upon receiving notification by the
HB2755 Enrolled - 1231 - LRB104 08253 BDA 18303 b
1 Department of Commerce and Economic Opportunity of the
2 noncompliance of a taxpayer with an agreement, the
3 Department shall notify the taxpayer that no credit is
4 allowed with respect to that agreement for any taxable
5 year ending after the noncompliance date, as stated in the
6 notification. If any credit has been allowed with respect
7 to an agreement for a taxable year ending after the
8 noncompliance date for that agreement, any refund paid to
9 the taxpayer for that taxable year shall, to the extent of
10 that credit allowed, be an erroneous refund within the
11 meaning of Section 912 of this Act.
12 (4) If the credit awarded under this Section is
13 required to be recaptured under the provisions of Section
14 77-40 of the Advancing Innovative Manufacturing for
15 Illinois Tax Credit Act, the tax imposed under subsections
16 (a) and (b) of Section 201 shall be increased by the amount
17 of the recapture for the taxable year in which recapture
18 is made.
19 Section 80-925. The Economic Development for a Growing
20 Economy Tax Credit Act is amended by changing Sections 5-15,
21 5-20, and 5-45 as follows:
22 (35 ILCS 10/5-15)
23 Sec. 5-15. Tax Credit Awards. Subject to the conditions
24 set forth in this Act, a Taxpayer is entitled to a Credit
HB2755 Enrolled - 1232 - LRB104 08253 BDA 18303 b
1 against or, as described in subsection (g) of this Section, a
2 payment towards taxes imposed pursuant to subsections (a) and
3 (b) of Section 201 of the Illinois Income Tax Act that may be
4 imposed on the Taxpayer for a taxable year beginning on or
5 after January 1, 1999, if the Taxpayer is awarded a Credit by
6 the Department under this Act for that taxable year.
7 (a) The Department shall make Credit awards under this Act
8 to foster job creation and retention in Illinois.
9 (b) A person that proposes a project to create new jobs in
10 Illinois must enter into an Agreement with the Department for
11 the Credit under this Act.
12 (c) The Credit shall be claimed for the taxable years
13 specified in the Agreement.
14 (d) The Credit shall not exceed the Incremental Income Tax
15 attributable to the project that is the subject of the
16 Agreement.
17 (e) Nothing herein shall prohibit a Tax Credit Award to an
18 Applicant that uses a PEO if all other award criteria are
19 satisfied.
20 (f) In lieu of the Credit allowed under this Act against
21 the taxes imposed pursuant to subsections (a) and (b) of
22 Section 201 of the Illinois Income Tax Act for any taxable year
23 ending on or after December 31, 2009, for Taxpayers that
24 entered into Agreements prior to January 1, 2015 and otherwise
25 meet the criteria set forth in this subsection (f), the
26 Taxpayer may elect to claim the Credit against its obligation
HB2755 Enrolled - 1233 - LRB104 08253 BDA 18303 b
1 to pay over withholding under Section 704A of the Illinois
2 Income Tax Act.
3 (1) The election under this subsection (f) may be made
4 only by a Taxpayer that (i) is primarily engaged in one of
5 the following business activities: water purification and
6 treatment, motor vehicle metal stamping, automobile
7 manufacturing, automobile and light duty motor vehicle
8 manufacturing, motor vehicle manufacturing, light truck
9 and utility vehicle manufacturing, heavy duty truck
10 manufacturing, motor vehicle body manufacturing, cable
11 television infrastructure design or manufacturing, or
12 wireless telecommunication or computing terminal device
13 design or manufacturing for use on public networks and
14 (ii) meets the following criteria:
15 (A) the Taxpayer (i) had an Illinois net loss or an
16 Illinois net loss deduction under Section 207 of the
17 Illinois Income Tax Act for the taxable year in which
18 the Credit is awarded, (ii) employed a minimum of
19 1,000 full-time employees in this State during the
20 taxable year in which the Credit is awarded, (iii) has
21 an Agreement under this Act on December 14, 2009 (the
22 effective date of Public Act 96-834), and (iv) is in
23 compliance with all provisions of that Agreement;
24 (B) the Taxpayer (i) had an Illinois net loss or an
25 Illinois net loss deduction under Section 207 of the
26 Illinois Income Tax Act for the taxable year in which
HB2755 Enrolled - 1234 - LRB104 08253 BDA 18303 b
1 the Credit is awarded, (ii) employed a minimum of
2 1,000 full-time employees in this State during the
3 taxable year in which the Credit is awarded, and (iii)
4 has applied for an Agreement within 365 days after
5 December 14, 2009 (the effective date of Public Act
6 96-834);
7 (C) the Taxpayer (i) had an Illinois net operating
8 loss carryforward under Section 207 of the Illinois
9 Income Tax Act in a taxable year ending during
10 calendar year 2008, (ii) has applied for an Agreement
11 within 150 days after the effective date of this
12 amendatory Act of the 96th General Assembly, (iii)
13 creates at least 400 new jobs in Illinois, (iv)
14 retains at least 2,000 jobs in Illinois that would
15 have been at risk of relocation out of Illinois over a
16 10-year period, and (v) makes a capital investment of
17 at least $75,000,000;
18 (D) the Taxpayer (i) had an Illinois net operating
19 loss carryforward under Section 207 of the Illinois
20 Income Tax Act in a taxable year ending during
21 calendar year 2009, (ii) has applied for an Agreement
22 within 150 days after the effective date of this
23 amendatory Act of the 96th General Assembly, (iii)
24 creates at least 150 new jobs, (iv) retains at least
25 1,000 jobs in Illinois that would have been at risk of
26 relocation out of Illinois over a 10-year period, and
HB2755 Enrolled - 1235 - LRB104 08253 BDA 18303 b
1 (v) makes a capital investment of at least
2 $57,000,000; or
3 (E) the Taxpayer (i) employed at least 2,500
4 full-time employees in the State during the year in
5 which the Credit is awarded, (ii) commits to make at
6 least $500,000,000 in combined capital improvements
7 and project costs under the Agreement, (iii) applies
8 for an Agreement between January 1, 2011 and June 30,
9 2011, (iv) executes an Agreement for the Credit during
10 calendar year 2011, and (v) was incorporated no more
11 than 5 years before the filing of an application for an
12 Agreement.
13 (1.5) The election under this subsection (f) may also
14 be made by a Taxpayer for any Credit awarded pursuant to an
15 agreement that was executed between January 1, 2011 and
16 June 30, 2011, if the Taxpayer (i) is primarily engaged in
17 the manufacture of inner tubes or tires, or both, from
18 natural and synthetic rubber, (ii) employs a minimum of
19 2,400 full-time employees in Illinois at the time of
20 application, (iii) creates at least 350 full-time jobs and
21 retains at least 250 full-time jobs in Illinois that would
22 have been at risk of being created or retained outside of
23 Illinois, and (iv) makes a capital investment of at least
24 $200,000,000 at the project location.
25 (1.6) The election under this subsection (f) may also
26 be made by a Taxpayer for any Credit awarded pursuant to an
HB2755 Enrolled - 1236 - LRB104 08253 BDA 18303 b
1 agreement that was executed within 150 days after the
2 effective date of this amendatory Act of the 97th General
3 Assembly, if the Taxpayer (i) is primarily engaged in the
4 operation of a discount department store, (ii) maintains
5 its corporate headquarters in Illinois, (iii) employs a
6 minimum of 4,250 full-time employees at its corporate
7 headquarters in Illinois at the time of application, (iv)
8 retains at least 4,250 full-time jobs in Illinois that
9 would have been at risk of being relocated outside of
10 Illinois, (v) had a minimum of $40,000,000,000 in total
11 revenue in 2010, and (vi) makes a capital investment of at
12 least $300,000,000 at the project location.
13 (1.7) Notwithstanding any other provision of law, the
14 election under this subsection (f) may also be made by a
15 Taxpayer for any Credit awarded pursuant to an agreement
16 that was executed or applied for on or after July 1, 2011
17 and on or before March 31, 2012, if the Taxpayer is
18 primarily engaged in the manufacture of original and
19 aftermarket filtration parts and products for automobiles,
20 motor vehicles, light duty motor vehicles, light trucks
21 and utility vehicles, and heavy duty trucks, (ii) employs
22 a minimum of 1,000 full-time employees in Illinois at the
23 time of application, (iii) creates at least 250 full-time
24 jobs in Illinois, (iv) relocates its corporate
25 headquarters to Illinois from another state, and (v) makes
26 a capital investment of at least $4,000,000 at the project
HB2755 Enrolled - 1237 - LRB104 08253 BDA 18303 b
1 location.
2 (1.8) Notwithstanding any other provision of law, the
3 election under this subsection (f) may also be made by a
4 startup taxpayer for any Credit awarded pursuant to an
5 Agreement that was executed on or after the effective date
6 of this amendatory Act of the 102nd General Assembly. Any
7 such election under this paragraph (1.8) shall be
8 effective unless and until such startup taxpayer has any
9 Illinois income tax liability. This election under this
10 paragraph (1.8) shall automatically terminate when the
11 startup taxpayer has any Illinois income tax liability at
12 the end of any taxable year during the term of the
13 Agreement. Thereafter, the startup taxpayer may receive a
14 Credit, taking into account any benefits previously
15 enjoyed or received by way of the election under this
16 paragraph (1.8), so long as the startup taxpayer remains
17 in compliance with the terms and conditions of the
18 Agreement.
19 (1.9) Notwithstanding any other provision of law, the
20 election under this subsection (f) may also be made by an
21 applicant qualified under paragraph (1.7) or (1.8) of
22 subsection (b) of Section 5-20 for any Credit awarded
23 pursuant to an Agreement that was executed on or after the
24 effective date of this amendatory Act of the 104th 103rd
25 General Assembly. Any such election under this paragraph
26 (1.9) shall be made by entering into an agreement with the
HB2755 Enrolled - 1238 - LRB104 08253 BDA 18303 b
1 Department that allows for such an election and remain
2 effective for the duration of the agreement allowing for
3 the election. effective unless and until such taxpayer has
4 any Illinois income tax liability. This election under
5 this paragraph (1.9) shall automatically terminate when
6 the taxpayer has any Illinois income tax liability at the
7 end of any taxable year during the term of the Agreement.
8 Thereafter, the startup taxpayer may receive a Credit,
9 taking into account any benefits previously enjoyed or
10 received by way of the election under this paragraph
11 (1.9), so long as the startup taxpayer remains in
12 compliance with the terms and conditions of the Agreement.
13 (1.10) The election under this subsection (f) may also
14 be made by a taxpayer that (i) is primarily engaged in the
15 recycling and melting of steel products and in the
16 manufacturing of new steel wire and rod products, (ii)
17 retains at least 700 full-time jobs that would have been
18 at risk of facing termination or relocation outside of
19 Illinois, (iii) relocates its corporate headquarters to
20 Illinois from another state, (iv) makes a capital
21 investment of at least $40,000,000 within 4 years after
22 the effective date of an Agreement under this Act, and (v)
23 makes an application for an agreement within 90 days after
24 the effective date of this amendatory Act of the 104th
25 General Assembly. The duration of the credit under this
26 paragraph (1.10) may not exceed 15 taxable years.
HB2755 Enrolled - 1239 - LRB104 08253 BDA 18303 b
1 (2) An election under this subsection shall allow the
2 credit to be taken against payments otherwise due under
3 Section 704A of the Illinois Income Tax Act during the
4 first calendar quarter beginning after the end of the
5 taxable quarter in which the credit is awarded under this
6 Act.
7 (3) The election shall be made in the form and manner
8 required by the Illinois Department of Revenue and, once
9 made, shall be irrevocable.
10 (4) If a Taxpayer who meets the requirements of
11 subparagraph (A) of paragraph (1) of this subsection (f)
12 elects to claim the Credit against its withholdings as
13 provided in this subsection (f), then, on and after the
14 date of the election, the terms of the Agreement between
15 the Taxpayer and the Department may not be further amended
16 during the term of the Agreement.
17 (g) A pass-through entity that has been awarded a credit
18 under this Act, its shareholders, or its partners may treat
19 some or all of the credit awarded pursuant to this Act as a tax
20 payment for purposes of the Illinois Income Tax Act. The term
21 "tax payment" means a payment as described in Article 6 or
22 Article 8 of the Illinois Income Tax Act or a composite payment
23 made by a pass-through entity on behalf of any of its
24 shareholders or partners to satisfy such shareholders' or
25 partners' taxes imposed pursuant to subsections (a) and (b) of
26 Section 201 of the Illinois Income Tax Act. In no event shall
HB2755 Enrolled - 1240 - LRB104 08253 BDA 18303 b
1 the amount of the award credited pursuant to this Act exceed
2 the Illinois income tax liability of the pass-through entity
3 or its shareholders or partners for the taxable year.
4 (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
5 103-595, eff. 6-26-24.)
6 (35 ILCS 10/5-20)
7 Sec. 5-20. Application for a project to create and retain
8 new jobs.
9 (a) Any Taxpayer proposing a project located or planned to
10 be located in Illinois may request consideration for
11 designation of its project, by formal written letter of
12 request or by formal application to the Department, in which
13 the Applicant states its intent to make at least a specified
14 level of investment and intends to hire or retain a specified
15 number of full-time employees at a designated location in
16 Illinois. As circumstances require, the Department may require
17 a formal application from an Applicant and a formal letter of
18 request for assistance.
19 (b) In order to qualify for Credits under this Act, an
20 Applicant's project must:
21 (1) if the Applicant has more than 100 employees,
22 involve an investment of at least $2,500,000 in capital
23 improvements to be placed in service within the State as a
24 direct result of the project; if the Applicant has 100 or
25 fewer employees, then there is no capital investment
HB2755 Enrolled - 1241 - LRB104 08253 BDA 18303 b
1 requirement;
2 (1.5) if the Applicant has more than 100 employees,
3 employ a number of new employees in the State equal to the
4 lesser of (A) 10% of the number of full-time employees
5 employed by the applicant world-wide on the date the
6 application is filed with the Department or (B) 50 New
7 Employees; and, if the Applicant has 100 or fewer
8 employees, employ a number of new employees in the State
9 equal to the lesser of (A) 5% of the number of full-time
10 employees employed by the applicant world-wide on the date
11 the application is filed with the Department or (B) 50 New
12 Employees;
13 (1.6) if the Applicant is a startup taxpayer, the
14 employees employed by Related Members shall not be
15 attributed to the Applicant for purposes of determining
16 the capital investment or job creation requirements under
17 this subsection (b);
18 (1.7) if the agreement is entered into on or after the
19 effective date of this amendatory Act of the 103rd General
20 Assembly and the Applicant's project:
21 (A) makes an investment of at least $50,000,000 in
22 capital improvements at the project site;
23 (B) is placed in service after approval of the
24 application; and
25 (C) creates jobs for at least 100 new full-time
26 employees; .
HB2755 Enrolled - 1242 - LRB104 08253 BDA 18303 b
1 (1.8) if the agreement is entered into on or after the
2 effective date of this amendatory Act of the 104th General
3 Assembly and the Applicant's project:
4 (A) makes an investment of at least $100,000,000
5 in capital improvements at the project site;
6 (B) is placed in service as described within the
7 agreement; and
8 (C) retains at least 500 full-time employees.
9 (2) (blank);
10 (3) (blank); and
11 (4) include an annual sexual harassment policy report
12 as provided under Section 5-58.
13 (c) After receipt of an application, the Department may
14 enter into an Agreement with the Applicant if the application
15 is accepted in accordance with Section 5-25.
16 (Source: P.A. 102-700, eff. 4-19-22; 103-595, eff. 6-26-24.)
17 (35 ILCS 10/5-45)
18 Sec. 5-45. Amount and duration of the credit.
19 (a) The Department shall determine the amount and duration
20 of the credit awarded under this Act. The duration of the
21 credit may not exceed 10 taxable years for projects qualified
22 under paragraph (1), (1.5), or (1.6) of subsection (b) of
23 Section 5-20 or 15 taxable years for projects qualified under
24 paragraph (1.7) or (1.8) of subsection (b) of Section 5-20.
25 The credit may be stated as a percentage of the Incremental
HB2755 Enrolled - 1243 - LRB104 08253 BDA 18303 b
1 Income Tax attributable to the applicant's project and may
2 include a fixed dollar limitation.
3 (b) Notwithstanding subsection (a), and except as the
4 credit may be applied in a carryover year pursuant to Section
5 211(4) of the Illinois Income Tax Act, the credit may be
6 applied against the State income tax liability in more than 10
7 taxable years but not in more than 15 taxable years for an
8 eligible business that (i) qualifies under this Act and the
9 Corporate Headquarters Relocation Act and has in fact
10 undertaken a qualifying project within the time frame
11 specified by the Department of Commerce and Economic
12 Opportunity under that Act, and (ii) applies against its State
13 income tax liability, during the entire 15-year period, no
14 more than 60% of the maximum credit per year that would
15 otherwise be available under this Act.
16 (c) Nothing in this Section shall prevent the Department,
17 in consultation with the Department of Revenue, from adopting
18 rules to extend the sunset of any earned, existing, and unused
19 tax credit or credits a taxpayer may be in possession of, as
20 provided for in Section 605-1070 of the Department of Commerce
21 and Economic Opportunity Law of the Civil Administrative Code
22 of Illinois, notwithstanding the carry-forward provisions
23 pursuant to paragraph (4) of Section 211 of the Illinois
24 Income Tax Act.
25 (Source: P.A. 102-16, eff. 6-17-21; 102-813, eff. 5-13-22;
26 103-595, eff. 6-26-24.)
HB2755 Enrolled - 1244 - LRB104 08253 BDA 18303 b
1 Section 80-930. The Illinois Enterprise Zone Act is
2 amended by changing Section 5.5 as follows:
3 (20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
4 Sec. 5.5. High Impact Business.
5 (a) In order to respond to unique opportunities to assist
6 in the encouragement, development, growth, and expansion of
7 the private sector through large scale investment and
8 development projects, the Department is authorized to receive
9 and approve applications for the designation of "High Impact
10 Businesses" in Illinois, for an initial term of 20 years with
11 an option for renewal for a term not to exceed 20 years,
12 subject to the following conditions:
13 (1) such applications may be submitted at any time
14 during the year;
15 (2) such business is not located, at the time of
16 designation, in an enterprise zone designated pursuant to
17 this Act, except for grocery stores, as defined in the
18 Grocery Initiative Act, and a new battery energy storage
19 solution facility, as defined by subparagraph (I) of
20 paragraph (3) of this subsection (a);
21 (3) the business intends to do, commits to do, or is
22 one or more of the following:
23 (A) the business intends to make a minimum
24 investment of $12,000,000 which will be placed in
HB2755 Enrolled - 1245 - LRB104 08253 BDA 18303 b
1 service in qualified property and intends to create
2 500 full-time equivalent jobs at a designated location
3 in Illinois or intends to make a minimum investment of
4 $30,000,000 which will be placed in service in
5 qualified property and intends to retain 1,500
6 full-time retained jobs at a designated location in
7 Illinois. The terms "placed in service" and "qualified
8 property" have the same meanings as described in
9 subsection (h) of Section 201 of the Illinois Income
10 Tax Act; or
11 (B) the business intends to establish a new
12 electric generating facility at a designated location
13 in Illinois. "New electric generating facility", for
14 purposes of this Section, means a newly constructed
15 electric generation plant or a newly constructed
16 generation capacity expansion at an existing electric
17 generation plant, including the transmission lines and
18 associated equipment that transfers electricity from
19 points of supply to points of delivery, and for which
20 such new foundation construction commenced not sooner
21 than July 1, 2001. Such facility shall be designed to
22 provide baseload electric generation and shall operate
23 on a continuous basis throughout the year; and (i)
24 shall have an aggregate rated generating capacity of
25 at least 1,000 megawatts for all new units at one site
26 if it uses natural gas as its primary fuel and
HB2755 Enrolled - 1246 - LRB104 08253 BDA 18303 b
1 foundation construction of the facility is commenced
2 on or before December 31, 2004, or shall have an
3 aggregate rated generating capacity of at least 400
4 megawatts for all new units at one site if it uses coal
5 or gases derived from coal as its primary fuel and
6 shall support the creation of at least 150 new
7 Illinois coal mining jobs, or (ii) shall be funded
8 through a federal Department of Energy grant before
9 December 31, 2010 and shall support the creation of
10 Illinois coal mining jobs, or (iii) shall use coal
11 gasification or integrated gasification-combined cycle
12 units that generate electricity or chemicals, or both,
13 and shall support the creation of Illinois coal mining
14 jobs. The term "placed in service" has the same
15 meaning as described in subsection (h) of Section 201
16 of the Illinois Income Tax Act; or
17 (B-5) the business intends to establish a new
18 gasification facility at a designated location in
19 Illinois. As used in this Section, "new gasification
20 facility" means a newly constructed coal gasification
21 facility that generates chemical feedstocks or
22 transportation fuels derived from coal (which may
23 include, but are not limited to, methane, methanol,
24 and nitrogen fertilizer), that supports the creation
25 or retention of Illinois coal mining jobs, and that
26 qualifies for financial assistance from the Department
HB2755 Enrolled - 1247 - LRB104 08253 BDA 18303 b
1 before December 31, 2010. A new gasification facility
2 does not include a pilot project located within
3 Jefferson County or within a county adjacent to
4 Jefferson County for synthetic natural gas from coal;
5 or
6 (C) the business intends to establish production
7 operations at a new coal mine, re-establish production
8 operations at a closed coal mine, or expand production
9 at an existing coal mine at a designated location in
10 Illinois not sooner than July 1, 2001; provided that
11 the production operations result in the creation of
12 150 new Illinois coal mining jobs as described in
13 subdivision (a)(3)(B) of this Section, and further
14 provided that the coal extracted from such mine is
15 utilized as the predominant source for a new electric
16 generating facility. The term "placed in service" has
17 the same meaning as described in subsection (h) of
18 Section 201 of the Illinois Income Tax Act; or
19 (D) the business intends to construct new
20 transmission facilities or upgrade existing
21 transmission facilities at designated locations in
22 Illinois, for which construction commenced not sooner
23 than July 1, 2001. For the purposes of this Section,
24 "transmission facilities" means transmission lines
25 with a voltage rating of 115 kilovolts or above,
26 including associated equipment, that transfer
HB2755 Enrolled - 1248 - LRB104 08253 BDA 18303 b
1 electricity from points of supply to points of
2 delivery and that transmit a majority of the
3 electricity generated by a new electric generating
4 facility designated as a High Impact Business in
5 accordance with this Section. The term "placed in
6 service" has the same meaning as described in
7 subsection (h) of Section 201 of the Illinois Income
8 Tax Act; or
9 (E) the business intends to establish a new wind
10 power facility at a designated location in Illinois.
11 For purposes of this Section, "new wind power
12 facility" means a newly constructed electric
13 generation facility, a newly constructed expansion of
14 an existing electric generation facility, or the
15 replacement of an existing electric generation
16 facility, including the demolition and removal of an
17 electric generation facility irrespective of whether
18 it will be replaced, placed in service or replaced on
19 or after July 1, 2009, that generates electricity
20 using wind energy devices, and such facility shall be
21 deemed to include any permanent structures associated
22 with the electric generation facility and all
23 associated transmission lines, substations, and other
24 equipment related to the generation of electricity
25 from wind energy devices. For purposes of this
26 Section, "wind energy device" means any device, with a
HB2755 Enrolled - 1249 - LRB104 08253 BDA 18303 b
1 nameplate capacity of at least 0.5 megawatts, that is
2 used in the process of converting kinetic energy from
3 the wind to generate electricity; or
4 (E-5) the business intends to establish a new
5 utility-scale solar facility at a designated location
6 in Illinois. For purposes of this Section, "new
7 utility-scale solar power facility" means a newly
8 constructed electric generation facility, or a newly
9 constructed expansion of an existing electric
10 generation facility, placed in service on or after
11 July 1, 2021, that (i) generates electricity using
12 photovoltaic cells and (ii) has a nameplate capacity
13 that is greater than 5,000 kilowatts, and such
14 facility shall be deemed to include all associated
15 transmission lines, substations, energy storage
16 facilities, and other equipment related to the
17 generation and storage of electricity from
18 photovoltaic cells; or
19 (F) the business commits to (i) make a minimum
20 investment of $500,000,000, which will be placed in
21 service in a qualified property, (ii) create 125
22 full-time equivalent jobs at a designated location in
23 Illinois, (iii) establish a fertilizer plant at a
24 designated location in Illinois that complies with the
25 set-back standards as described in Table 1: Initial
26 Isolation and Protective Action Distances in the 2012
HB2755 Enrolled - 1250 - LRB104 08253 BDA 18303 b
1 Emergency Response Guidebook published by the United
2 States Department of Transportation, (iv) pay a
3 prevailing wage for employees at that location who are
4 engaged in construction activities, and (v) secure an
5 appropriate level of general liability insurance to
6 protect against catastrophic failure of the fertilizer
7 plant or any of its constituent systems; in addition,
8 the business must agree to enter into a construction
9 project labor agreement including provisions
10 establishing wages, benefits, and other compensation
11 for employees performing work under the project labor
12 agreement at that location; for the purposes of this
13 Section, "fertilizer plant" means a newly constructed
14 or upgraded plant utilizing gas used in the production
15 of anhydrous ammonia and downstream nitrogen
16 fertilizer products for resale; for the purposes of
17 this Section, "prevailing wage" means the hourly cash
18 wages plus fringe benefits for training and
19 apprenticeship programs approved by the U.S.
20 Department of Labor, Bureau of Apprenticeship and
21 Training, health and welfare, insurance, vacations and
22 pensions paid generally, in the locality in which the
23 work is being performed, to employees engaged in work
24 of a similar character on public works; this paragraph
25 (F) applies only to businesses that submit an
26 application to the Department within 60 days after
HB2755 Enrolled - 1251 - LRB104 08253 BDA 18303 b
1 July 25, 2013 (the effective date of Public Act
2 98-109); or
3 (G) the business intends to establish a new
4 cultured cell material food production facility at a
5 designated location in Illinois. As used in this
6 paragraph (G):
7 "Cultured cell material food production facility"
8 means a facility (i) at which cultured animal cell
9 food is developed using animal cell culture
10 technology, (ii) at which production processes occur
11 that include the establishment of cell lines and cell
12 banks, manufacturing controls, and all components and
13 inputs, and (iii) that complies with all existing
14 registrations, inspections, licensing, and approvals
15 from all applicable and participating State and
16 federal food agencies, including the Department of
17 Agriculture, the Department of Public Health, and the
18 United States Food and Drug Administration, to ensure
19 that all food production is safe and lawful under
20 provisions of the Federal Food, Drug and Cosmetic Act
21 related to the development, production, and storage of
22 cultured animal cell food.
23 "New cultured cell material food production
24 facility" means a newly constructed cultured cell
25 material food production facility that is placed in
26 service on or after June 7, 2023 (the effective date of
HB2755 Enrolled - 1252 - LRB104 08253 BDA 18303 b
1 Public Act 103-9) or a newly constructed expansion of
2 an existing cultured cell material food production
3 facility, in a controlled environment, when the
4 improvements are placed in service on or after June 7,
5 2023 (the effective date of Public Act 103-9);
6 (H) the business is an existing or planned grocery
7 store, as that term is defined in Section 5 of the
8 Grocery Initiative Act, and receives financial support
9 under that Act within the 10 years before submitting
10 its application under this Act; or
11 (I) the business intends to establish a new
12 battery energy storage solution facility at a
13 designated location in Illinois. As used in this
14 paragraph (I):
15 "New battery energy storage solution facility"
16 means a newly constructed battery energy storage
17 facility, a newly constructed expansion of an existing
18 battery energy storage facility, or the replacement of
19 an existing battery energy storage facility that
20 stores electricity using battery devices and other
21 means. "New battery energy storage solution facility"
22 includes any permanent structures associated with the
23 new battery energy storage facility and all associated
24 transmission lines, substations, and other equipment
25 that is related to the storage and transmission of
26 electric power and that has a capacity of not less than
HB2755 Enrolled - 1253 - LRB104 08253 BDA 18303 b
1 20 megawatt and storage capability of not less than 40
2 megawatt hours of energy; or
3 (J) the business intends to construct a new high
4 voltage direct current converter station at a
5 designated location in Illinois. As used in this
6 paragraph, "high voltage direct current converter
7 station" has the same meaning given to that term in
8 Section 1-10 of the Illinois Power Act; or and
9 (K) the business intends to construct a new high
10 voltage direct current converter station facility at a
11 designated location in Illinois. As used in this
12 paragraph, "high voltage direct current converter
13 station" has the same meaning given to that term in
14 Section 1-10 of the Illinois Power Act; and
15 (4) no later than 90 days after an application is
16 submitted, the Department shall notify the applicant of
17 the Department's determination of the qualification of the
18 proposed High Impact Business under this Section.
19 (b) Businesses designated as High Impact Businesses
20 pursuant to subdivision (a)(3)(A) of this Section shall
21 qualify for the credits and exemptions described in the
22 following Acts: Section 9-222 and Section 9-222.1A of the
23 Public Utilities Act, subsection (h) of Section 201 of the
24 Illinois Income Tax Act, and Section 1d of the Retailers'
25 Occupation Tax Act; provided that these credits and exemptions
26 described in these Acts shall not be authorized until the
HB2755 Enrolled - 1254 - LRB104 08253 BDA 18303 b
1 minimum investments set forth in subdivision (a)(3)(A) of this
2 Section have been placed in service in qualified properties
3 and, in the case of the exemptions described in the Public
4 Utilities Act and Section 1d of the Retailers' Occupation Tax
5 Act, the minimum full-time equivalent jobs or full-time
6 retained jobs set forth in subdivision (a)(3)(A) of this
7 Section have been created or retained. Businesses designated
8 as High Impact Businesses under this Section shall also
9 qualify for the exemption described in Section 5l of the
10 Retailers' Occupation Tax Act. The credit provided in
11 subsection (h) of Section 201 of the Illinois Income Tax Act
12 shall be applicable to investments in qualified property as
13 set forth in subdivision (a)(3)(A) of this Section.
14 (b-5) Businesses designated as High Impact Businesses
15 pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
16 (a)(3)(D), (a)(3)(G), and (a)(3)(H), and (a)(3)(K) of this
17 Section shall qualify for the credits and exemptions described
18 in the following Acts: Section 51 of the Retailers' Occupation
19 Tax Act, Section 9-222 and Section 9-222.1A of the Public
20 Utilities Act, and subsection (h) of Section 201 of the
21 Illinois Income Tax Act; however, the credits and exemptions
22 authorized under Section 9-222 and Section 9-222.1A of the
23 Public Utilities Act, and subsection (h) of Section 201 of the
24 Illinois Income Tax Act shall not be authorized until the new
25 electric generating facility, the new gasification facility,
26 the new transmission facility, the new, expanded, or reopened
HB2755 Enrolled - 1255 - LRB104 08253 BDA 18303 b
1 coal mine, the new cultured cell material food production
2 facility, or the existing or planned grocery store is
3 operational, except that a new electric generating facility
4 whose primary fuel source is natural gas is eligible only for
5 the exemption under Section 5l of the Retailers' Occupation
6 Tax Act.
7 (b-6) Businesses designated as High Impact Businesses
8 pursuant to subdivision (a)(3)(E), (a)(3)(E-5), (A)(3)(I), or
9 (a)(3)(J) of this Section shall qualify for the exemptions
10 described in Section 5l of the Retailers' Occupation Tax Act;
11 any business so designated as a High Impact Business being,
12 for purposes of this Section, a "Wind Energy Business".
13 (b-7) Beginning on January 1, 2021, businesses designated
14 as High Impact Businesses by the Department shall qualify for
15 the High Impact Business construction jobs credit under
16 subsection (h-5) of Section 201 of the Illinois Income Tax Act
17 if the business meets the criteria set forth in subsection (i)
18 of this Section. The total aggregate amount of credits awarded
19 under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
20 shall not exceed $20,000,000 in any State fiscal year.
21 (c) High Impact Businesses located in federally designated
22 foreign trade zones or sub-zones are also eligible for
23 additional credits, exemptions and deductions as described in
24 the following Acts: Section 9-221 and Section 9-222.1 of the
25 Public Utilities Act; and subsection (g) of Section 201, and
26 Section 203 of the Illinois Income Tax Act.
HB2755 Enrolled - 1256 - LRB104 08253 BDA 18303 b
1 (d) Except for businesses contemplated under subdivision
2 (a)(3)(E), (a)(3)(E-5), (a)(3)(G), (a)(3)(H), (A)(3)(I), or
3 (a)(3)(J), or (a)(3)(K) of this Section, existing Illinois
4 businesses which apply for designation as a High Impact
5 Business must provide the Department with the prospective plan
6 for which 1,500 full-time retained jobs would be eliminated in
7 the event that the business is not designated.
8 (e) Except for new businesses contemplated under
9 subdivision (a)(3)(E), subdivision (a)(3)(G), subdivision
10 (a)(3)(H), or subdivision (a)(3)(J) of this Section, new
11 proposed facilities which apply for designation as High Impact
12 Business must provide the Department with proof of alternative
13 non-Illinois sites which would receive the proposed investment
14 and job creation in the event that the business is not
15 designated as a High Impact Business.
16 (f) Except for businesses contemplated under subdivision
17 (a)(3)(E), subdivision (a)(3)(G), subdivision (a)(3)(H), or
18 subdivision (a)(3)(J), or (a)(3)(K) of this Section, in the
19 event that a business is designated a High Impact Business and
20 it is later determined after reasonable notice and an
21 opportunity for a hearing as provided under the Illinois
22 Administrative Procedure Act, that the business would have
23 placed in service in qualified property the investments and
24 created or retained the requisite number of jobs without the
25 benefits of the High Impact Business designation, the
26 Department shall be required to immediately revoke the
HB2755 Enrolled - 1257 - LRB104 08253 BDA 18303 b
1 designation and notify the Director of the Department of
2 Revenue who shall begin proceedings to recover all wrongfully
3 exempted State taxes with interest. The business shall also be
4 ineligible for all State funded Department programs for a
5 period of 10 years.
6 (g) The Department shall revoke a High Impact Business
7 designation if the participating business fails to comply with
8 the terms and conditions of the designation.
9 (h) Prior to designating a business, the Department shall
10 provide the members of the General Assembly and Commission on
11 Government Forecasting and Accountability with a report
12 setting forth the terms and conditions of the designation and
13 guarantees that have been received by the Department in
14 relation to the proposed business being designated.
15 (i) High Impact Business construction jobs credit.
16 Beginning on January 1, 2021, a High Impact Business may
17 receive a tax credit against the tax imposed under subsections
18 (a) and (b) of Section 201 of the Illinois Income Tax Act in an
19 amount equal to 50% of the amount of the incremental income tax
20 attributable to High Impact Business construction jobs credit
21 employees employed in the course of completing a High Impact
22 Business construction jobs project. However, the High Impact
23 Business construction jobs credit may equal 75% of the amount
24 of the incremental income tax attributable to High Impact
25 Business construction jobs credit employees if the High Impact
26 Business construction jobs credit project is located in an
HB2755 Enrolled - 1258 - LRB104 08253 BDA 18303 b
1 underserved area.
2 The Department shall certify to the Department of Revenue:
3 (1) the identity of taxpayers that are eligible for the High
4 Impact Business construction jobs credit; and (2) the amount
5 of High Impact Business construction jobs credits that are
6 claimed pursuant to subsection (h-5) of Section 201 of the
7 Illinois Income Tax Act in each taxable year.
8 As used in this subsection (i):
9 "High Impact Business construction jobs credit" means an
10 amount equal to 50% (or 75% if the High Impact Business
11 construction project is located in an underserved area) of the
12 incremental income tax attributable to High Impact Business
13 construction job employees. The total aggregate amount of
14 credits awarded under the Blue Collar Jobs Act (Article 20 of
15 Public Act 101-9) shall not exceed $20,000,000 in any State
16 fiscal year
17 "High Impact Business construction job employee" means a
18 laborer or worker who is employed by a contractor or
19 subcontractor in the actual construction work on the site of a
20 High Impact Business construction job project.
21 "High Impact Business construction jobs project" means
22 building a structure or building or making improvements of any
23 kind to real property, undertaken and commissioned by a
24 business that was designated as a High Impact Business by the
25 Department. The term "High Impact Business construction jobs
26 project" does not include the routine operation, routine
HB2755 Enrolled - 1259 - LRB104 08253 BDA 18303 b
1 repair, or routine maintenance of existing structures,
2 buildings, or real property.
3 "Incremental income tax" means the total amount withheld
4 during the taxable year from the compensation of High Impact
5 Business construction job employees.
6 "Underserved area" means a geographic area that meets one
7 or more of the following conditions:
8 (1) the area has a poverty rate of at least 20%
9 according to the latest American Community Survey;
10 (2) 35% or more of the families with children in the
11 area are living below 130% of the poverty line, according
12 to the latest American Community Survey;
13 (3) at least 20% of the households in the area receive
14 assistance under the Supplemental Nutrition Assistance
15 Program (SNAP); or
16 (4) the area has an average unemployment rate, as
17 determined by the Illinois Department of Employment
18 Security, that is more than 120% of the national
19 unemployment average, as determined by the U.S. Department
20 of Labor, for a period of at least 2 consecutive calendar
21 years preceding the date of the application.
22 (j) (Blank).
23 (j-5) Annually, until construction is completed, a company
24 seeking High Impact Business Construction Job credits shall
25 submit a report that, at a minimum, describes the projected
26 project scope, timeline, and anticipated budget. Once the
HB2755 Enrolled - 1260 - LRB104 08253 BDA 18303 b
1 project has commenced, the annual report shall include actual
2 data for the prior year as well as projections for each
3 additional year through completion of the project. The
4 Department shall issue detailed reporting guidelines
5 prescribing the requirements of construction-related reports.
6 In order to receive credit for construction expenses, the
7 company must provide the Department with evidence that a
8 certified third-party executed an Agreed-Upon Procedure (AUP)
9 verifying the construction expenses or accept the standard
10 construction wage expense estimated by the Department.
11 Upon review of the final project scope, timeline, budget,
12 and AUP, the Department shall issue a tax credit certificate
13 reflecting a percentage of the total construction job wages
14 paid throughout the completion of the project.
15 (k) Upon 7 business days' notice, each taxpayer shall make
16 available to each State agency and to federal, State, or local
17 law enforcement agencies and prosecutors for inspection and
18 copying at a location within this State during reasonable
19 hours, the report under subsection (j-5).
20 (l) The changes made to this Section by Public Act
21 102-1125, other than the changes in subsection (a), apply to
22 High Impact Businesses that submit applications on or after
23 February 3, 2023 (the effective date of Public Act 102-1125).
24 (Source: P.A. 102-108, eff. 1-1-22; 102-558, eff. 8-20-21;
25 102-605, eff. 8-27-21; 102-662, eff. 9-15-21; 102-673, eff.
26 11-30-21; 102-813, eff. 5-13-22; 102-1125, eff. 2-3-23; 103-9,
HB2755 Enrolled - 1261 - LRB104 08253 BDA 18303 b
1 eff. 6-7-23; 103-561, eff. 1-1-24; 103-595, eff. 6-26-24;
2 103-605, eff. 7-1-24; 103-1066, eff. 2-20-25.)
3 ARTICLE 85
4 Section 85-5. The Illinois Lottery Law is amended by
5 changing Section 7.12 as follows:
6 (20 ILCS 1605/7.12)
7 (Section scheduled to be repealed on July 1, 2025)
8 Sec. 7.12. Internet program.
9 (a) The General Assembly finds that:
10 (1) the consumer market in Illinois has changed since
11 the creation of the Illinois State Lottery in 1974;
12 (2) the Internet has become an integral part of
13 everyday life for a significant number of Illinois
14 residents not only in regards to their professional life,
15 but also in regards to personal business and
16 communication; and
17 (3) the current practices of selling lottery tickets
18 does not appeal to the new form of market participants who
19 prefer to make purchases on the Internet at their own
20 convenience.
21 It is the intent of the General Assembly to create an
22 Internet program for the sale of lottery tickets to capture
23 this new form of market participant.
HB2755 Enrolled - 1262 - LRB104 08253 BDA 18303 b
1 (b) The Department shall create a program that allows an
2 individual 18 years of age or older to purchase lottery
3 tickets or shares on the Internet without using a Lottery
4 retailer with on-line status, as those terms are defined by
5 rule. The Department shall restrict the sale of lottery
6 tickets on the Internet to transactions initiated and received
7 or otherwise made exclusively within the State of Illinois.
8 The Department shall adopt rules necessary for the
9 administration of this program. These rules shall include,
10 among other things, requirements for marketing of the Lottery
11 to infrequent players, as well as limitations on the purchases
12 that may be made through any one individual's lottery account.
13 The provisions of this Act and the rules adopted under this Act
14 shall apply to the sale of lottery tickets or shares under this
15 program.
16 The Department is obligated to implement the program set
17 forth in this Section and Sections 7.15 and 7.16. The
18 Department may offer Lotto, Lucky Day Lotto, Mega Millions,
19 Powerball, Pick 3, Pick 4, and other draw games that are
20 offered at retail locations through the Internet program. The
21 private manager shall obtain the Director's approval before
22 providing any draw games. Any draw game tickets that are
23 approved for sale by lottery licensees are automatically
24 approved for sale through the Internet program. The Department
25 shall maintain responsible gaming controls in its policies.
26 The Department shall authorize the private manager to
HB2755 Enrolled - 1263 - LRB104 08253 BDA 18303 b
1 implement and administer the program pursuant to the
2 management agreement entered into under Section 9.1 and in a
3 manner consistent with the provisions of this Section. If a
4 private manager has not been selected pursuant to Section 9.1
5 at the time the Department is obligated to implement the
6 program, then the Department shall not proceed with the
7 program until after the selection of the private manager, at
8 which time the Department shall authorize the private manager
9 to implement and administer the program pursuant to the
10 management agreement entered into under Section 9.1 and in a
11 manner consistent with the provisions of this Section.
12 Nothing in this Section shall be construed as prohibiting
13 the Department from implementing and operating a website
14 portal whereby individuals who are 18 years of age or older
15 with an Illinois mailing address may apply to purchase lottery
16 tickets via subscription. Nothing in this Section shall also
17 be construed as prohibiting the Lottery draw game tickets
18 authorized for sale through the Internet program under this
19 Section from also continuing to be sold at retail locations by
20 a lottery licensee pursuant to the Department's rules.
21 (c) (Blank).
22 (d) This Section is repealed on July 1, 2028 July 1, 2025.
23 (Source: P.A. 101-35, eff. 6-28-19; 102-699, eff. 4-19-22.)
24 ARTICLE 90
HB2755 Enrolled - 1264 - LRB104 08253 BDA 18303 b
1 Section 90-5. The Tobacco Products Manufacturers' Escrow
2 Enforcement Act of 2003 is amended by changing Section 30 as
3 follows:
4 (30 ILCS 167/30)
5 Sec. 30. Penalties and other remedies.
6 (a) In addition to or in lieu of any other civil or
7 criminal remedy provided by law, upon a determination that a
8 distributor has violated subsection (e) of Section 15 or any
9 regulation adopted pursuant thereto, the Director may revoke
10 or suspend the license of any distributor in the manner
11 provided by Section 6 of the Cigarette Tax Act, Section 6 of
12 the Cigarette Use Tax Act, or Section 10-25 of the Tobacco
13 Products Tax Act of 1995, as appropriate. Each stamp affixed
14 and each offer to sell cigarettes in violation of subsection
15 (e) of Section 15 shall constitute a separate violation. For
16 each violation, the Director may also impose a civil penalty
17 in an amount not to exceed the greater of 500% of the retail
18 value of the cigarettes sold or $5,000 upon a determination of
19 violation of subsection (e) of Section 15 or any regulations
20 adopted pursuant thereto.
21 (b) Any cigarettes that have been sold, offered for sale,
22 or possessed for sale in this State, or imported for personal
23 consumption in this State in violation of subsection (e) of
24 Section 15 shall be subject to seizure and forfeiture as
25 provided in Sections 18, 18a, and 20 of the Cigarette Tax Act
HB2755 Enrolled - 1265 - LRB104 08253 BDA 18303 b
1 and Sections 24, 25, 25a and 26 of the Cigarette Use Tax Act,
2 and all cigarettes so seized and forfeited shall be destroyed
3 and not resold.
4 (c) The Attorney General may seek an injunction to
5 restrain a threatened or actual violation of subsection (e) of
6 Section 15, subsection (a) of Section 25, or subsection (d) of
7 Section 25 by a distributor and to compel the distributor to
8 comply with such subsections. In any action brought pursuant
9 to this Section, the State shall be entitled to recover the
10 costs of investigation, costs of the action, and reasonable
11 attorney fees.
12 (c-5) Upon a distributor's failure to submit information
13 as required by subsection (a) of Section 25 or subsection (d)
14 of Section 25, the Attorney General may send a notice of
15 violation to the distributor and provide the distributor with
16 10 days to cure the violation. If the distributor does not cure
17 the violation, the Attorney General may notify the Director of
18 the violation, and, upon receiving the Attorney General's
19 notice, the Director may revoke the distributor's license in
20 the manner provided by Section 6 of the Cigarette Tax Act,
21 Section 6 of the Cigarette Use Tax Act, or Section 10-25 of the
22 Tobacco Products Tax Act of 1995, as appropriate
23 (d) It shall be unlawful for a person to: (i) sell or
24 distribute cigarettes; or (ii) acquire, hold, own, possess,
25 transport, import, or cause to be imported cigarettes that the
26 person knows or should know are intended for distribution or
HB2755 Enrolled - 1266 - LRB104 08253 BDA 18303 b
1 sale in the State in violation of subsection (e) of Section 15.
2 A violation of this Section shall be a Class 2 felony.
3 (e) A person who violates subsection (e) of Section 15
4 engages in an unfair and deceptive trade practice in violation
5 of the Uniform Deceptive Trade Practices Act.
6 (Source: P.A. 93-446, eff. 1-1-04; 93-930, eff. 1-1-05;
7 94-575, eff. 8-12-05.)
8 Section 90-10. The Tobacco Product Manufacturers' Escrow
9 Act is amended by changing Section 15 as follows:
10 (30 ILCS 168/15)
11 Sec. 15. Requirements.
12 (a) Any tobacco product manufacturer selling cigarettes to
13 consumers within the State of Illinois (whether directly or
14 through a distributor, retailer, or similar intermediary or
15 intermediaries) after the effective date of this Act shall do
16 one of the following:
17 (1) become a participating manufacturer (as that term
18 is defined in Section II(jj) of the Master Settlement
19 Agreement) and generally perform its financial obligations
20 under the Master Settlement Agreement; or
21 (2) (A) place into a qualified escrow fund by April 15
22 of the year following the year in question the
23 following amounts (as such amounts are adjusted for
24 inflation):
HB2755 Enrolled - 1267 - LRB104 08253 BDA 18303 b
1 (i) For 1999: $0.0094241 per unit sold after
2 the effective date of this Act;
3 (ii) For 2000: $0.0104712 per unit sold;
4 (iii) For each of 2001 and 2002: $0.0136125
5 per unit sold;
6 (iv) For each of 2003 through 2006: $0.0167539
7 per unit sold;
8 (v) For each of 2007 and each year thereafter:
9 $0.0188482 per unit sold.
10 (B) A tobacco product manufacturer that places
11 funds into escrow pursuant to subdivision (a)(2)(A)
12 shall receive the interest or other appreciation on
13 the funds as earned. The funds themselves shall be
14 released from escrow only under the following
15 circumstances:
16 (i) to pay a judgment or settlement on any
17 released claim brought against the tobacco product
18 manufacturer by the State or any releasing party
19 located or residing in the State. Funds shall be
20 released from escrow under this subdivision
21 (a)(2)(B)(i): (I) in the order in which they were
22 placed into escrow; and (II) only to the extent
23 and at the time necessary to make payments
24 required under such judgment or settlement;
25 (ii) to the extent that a tobacco product
26 manufacturer establishes that the amount it was
HB2755 Enrolled - 1268 - LRB104 08253 BDA 18303 b
1 required to place into escrow on account of units
2 sold in the State in a particular year was greater
3 than the Master Settlement Agreement payments, as
4 determined pursuant to Section IX(i) of that
5 Agreement, including after final determination of
6 all adjustments, that such manufacturer would have
7 been required to make on account of such units
8 sold had it been a Participating Manufacturer, the
9 excess shall be released from escrow and revert
10 back to such tobacco product manufacturer; or
11 (iii) to the extent not released from escrow
12 under subdivisions (a)(2)(B)(i) or (a)(2)(B)(ii),
13 funds shall be released from escrow and revert
14 back to such tobacco product manufacturer 25 years
15 after the date on which they were placed into
16 escrow.
17 (C) Each tobacco product manufacturer that elects
18 to place funds into escrow pursuant to this
19 subdivision (a)(2) shall annually certify to the
20 Attorney General that it is in compliance with this
21 subdivision (a)(2). The Attorney General may bring a
22 civil action on behalf of the State of Illinois
23 against any tobacco product manufacturer that fails to
24 place into escrow the funds required under this
25 subdivision (a)(2). Any tobacco product manufacturer
26 that fails in any year to place into escrow the funds
HB2755 Enrolled - 1269 - LRB104 08253 BDA 18303 b
1 required under this subdivision (a)(2) shall:
2 (i) be required within 15 days to place such
3 funds into escrow as shall bring it into
4 compliance with this Section. The court, upon a
5 finding of a violation of this subdivision (a)(2),
6 may impose a civil penalty to be paid into the
7 General Revenue Fund in an amount not to exceed 5%
8 of the amount improperly withheld from escrow per
9 day of the violation and in a total amount not to
10 exceed 100% of the original amount improperly
11 withheld from escrow;
12 (ii) in the case of a knowing violation, be
13 required within 15 days to place such funds into
14 escrow as shall bring it into compliance with this
15 Section. The court, upon a finding of a knowing
16 violation of this subdivision (a)(2), may impose a
17 civil penalty to be paid into the General Revenue
18 Fund in an amount not to exceed 15% of the amount
19 improperly withheld from escrow per day of the
20 violation and in a total amount not to exceed 300%
21 of the original amount improperly withheld from
22 escrow; and
23 (iii) in the case of a second knowing
24 violation, be prohibited from selling cigarettes
25 to consumers within the State of Illinois (whether
26 directly or through a distributor, retailer, or
HB2755 Enrolled - 1270 - LRB104 08253 BDA 18303 b
1 similar intermediary) for a period not to exceed 2
2 years.
3 (b) Each failure to make an annual deposit required under
4 this Section shall constitute a separate violation. If a
5 tobacco product manufacturer is successfully prosecuted by the
6 Attorney General for a violation of subdivision (a)(2), the
7 tobacco product manufacturer must pay, in addition to any fine
8 imposed by a court, the State's costs and attorney's fees
9 incurred in the prosecution.
10 (c) Notwithstanding subparagraph (B) of item (2) of
11 subsection (a) of this Section, a tobacco product manufacturer
12 that elects to place funds into escrow pursuant to
13 subparagraph (A) of item (2) of subsection (a) of this Section
14 may make an irrevocable assignment of its interest in the
15 funds to the benefit of the State. The assignment shall be
16 permanent and shall apply to all funds that are in the escrow
17 account or that may subsequently come into the account,
18 including (i) those funds deposited into the escrow account
19 before the assignment is executed, (ii) those funds deposited
20 into the escrow account on or after the date the assignment is
21 executed, and (iii) interest or other appreciation on the
22 funds. The tobacco product manufacturer, the Attorney General,
23 and the financial institution where the escrow account is
24 maintained may make amendments to the qualified escrow account
25 agreement as necessary to effectuate an assignment of rights
26 executed pursuant to this subsection or a withdrawal of moneys
HB2755 Enrolled - 1271 - LRB104 08253 BDA 18303 b
1 from the escrow account pursuant to subparagraph (B) of item
2 (2) of subsection (a) of this Section. An assignment of rights
3 executed pursuant to this subsection shall be in writing,
4 shall be signed by a duly authorized representative of the
5 tobacco product manufacturer making the assignment, and shall
6 become effective on delivery of the assignment to the Attorney
7 General and the financial institution where the escrow account
8 is maintained. An assignment of escrow funds shall not be made
9 by a tobacco product manufacturer unless and until the
10 Attorney General provides written approval to the tobacco
11 product manufacturer.
12 (d) Notwithstanding subparagraph (B) of item (2) of
13 subsection (a) of this Section, any escrow funds assigned to
14 the State pursuant to subsection (c) shall be withdrawn by the
15 State on the approval of the Attorney General. Any funds
16 withdrawn pursuant to this subsection shall be used to
17 reimburse the State for Medicaid costs and shall be calculated
18 on a dollar-for-dollar basis as a credit against any judgment
19 or settlement described in subparagraph (B) of item (2) of
20 subsection (a) of this Section that may be obtained against
21 the tobacco product manufacturer that has assigned the funds
22 in the escrow account. This Section does not relieve a tobacco
23 product manufacturer from any past, current, or future
24 obligations that the manufacturer may have pursuant to this
25 Section.
26 (e) Notwithstanding subparagraph (B) of item (2) of
HB2755 Enrolled - 1272 - LRB104 08253 BDA 18303 b
1 subsection (a) of this Section, if, after more than one year
2 from the date of release, the escrow amount has not been
3 subject to a request by the tobacco product manufacturer who
4 made the deposit or currently owns the rights to the account,
5 the Attorney General may send a notice of intent to assign
6 giving the entity 10 days to make an application for release in
7 the manner established by the Attorney General. If, after the
8 expiration of that 10-day period, no application has been
9 received, the Attorney General may send a notice of assignment
10 to the last known contact, and if no application is received
11 after the expiration of that 10-day period, the Attorney
12 General may provide notice to the escrow bank that the funds
13 shall be transferred to the State.
14 (Source: P.A. 93-446, eff. 1-1-04.)
15 Section 90-15. The Cigarette Tax Act is amended by
16 changing Section 6 as follows:
17 (35 ILCS 130/6) (from Ch. 120, par. 453.6)
18 Sec. 6. Revocation, cancellation, or suspension of
19 license. The Department may, after notice and hearing as
20 provided for by this Act, revoke, cancel or suspend the
21 license of any distributor, secondary distributor, or retailer
22 for the violation of any provision of this Act, or for
23 noncompliance with any provision herein contained, or for any
24 noncompliance with any lawful rule or regulation promulgated
HB2755 Enrolled - 1273 - LRB104 08253 BDA 18303 b
1 by the Department under Section 8 of this Act, or because the
2 licensee is determined to be ineligible for a distributor's
3 license for any one or more of the reasons provided for in
4 Section 4 of this Act, or because the licensee is determined to
5 be ineligible for a secondary distributor's license for any
6 one or more of the reasons provided for in Section 4c of this
7 Act, or because the licensee is determined to be ineligible
8 for a retailer's license for any one or more of the reasons
9 provided for in Section 4g of this Act. However, no such
10 license shall be revoked, cancelled or suspended, except after
11 a hearing by the Department with notice to the distributor,
12 secondary distributor, or retailer, as aforesaid, and
13 affording such distributor, secondary distributor, or retailer
14 a reasonable opportunity to appear and defend, and any
15 distributor, secondary distributor, or retailer aggrieved by
16 any decision of the Department with respect thereto may have
17 the determination of the Department judicially reviewed, as
18 herein provided.
19 The Department may revoke, cancel, or suspend the license
20 of any distributor for a violation of the Tobacco Products
21 Product Manufacturers' Escrow Enforcement Act of 2003 as
22 provided in Section 30 of that Act. The Department may revoke,
23 cancel, or suspend the license of any secondary distributor
24 for a violation of subsection (e) of Section 15 of the Tobacco
25 Products Product Manufacturers' Escrow Enforcement Act of
26 2003.
HB2755 Enrolled - 1274 - LRB104 08253 BDA 18303 b
1 If the retailer has a training program that facilitates
2 compliance with minimum-age tobacco laws, the Department shall
3 suspend for 3 days the license of that retailer for a fourth or
4 subsequent violation of the Prevention of Tobacco Use by
5 Persons under 21 Years of Age and Sale and Distribution of
6 Tobacco Products Act, as provided in subsection (a) of Section
7 2 of that Act. For the purposes of this Section, any violation
8 of subsection (a) of Section 2 of the Prevention of Tobacco Use
9 by Persons under 21 Years of Age and Sale and Distribution of
10 Tobacco Products Act occurring at the retailer's licensed
11 location during a 24-month period shall be counted as a
12 violation against the retailer.
13 If the retailer does not have a training program that
14 facilitates compliance with minimum-age tobacco laws, the
15 Department shall suspend for 3 days the license of that
16 retailer for a second violation of the Prevention of Tobacco
17 Use by Persons under 21 Years of Age and Sale and Distribution
18 of Tobacco Products Act, as provided in subsection (a-5) of
19 Section 2 of that Act.
20 If the retailer does not have a training program that
21 facilitates compliance with minimum-age tobacco laws, the
22 Department shall suspend for 7 days the license of that
23 retailer for a third violation of the Prevention of Tobacco
24 Use by Persons under 21 Years of Age and Sale and Distribution
25 of Tobacco Products Act, as provided in subsection (a-5) of
26 Section 2 of that Act.
HB2755 Enrolled - 1275 - LRB104 08253 BDA 18303 b
1 If the retailer does not have a training program that
2 facilitates compliance with minimum-age tobacco laws, the
3 Department shall suspend for 30 days the license of a retailer
4 for a fourth or subsequent violation of the Prevention of
5 Tobacco Use by Persons under 21 Years of Age and Sale and
6 Distribution of Tobacco Products Act, as provided in
7 subsection (a-5) of Section 2 of that Act.
8 A training program that facilitates compliance with
9 minimum-age tobacco laws must include at least the following
10 elements: (i) it must explain that only individuals displaying
11 valid identification demonstrating that they are 21 years of
12 age or older shall be eligible to purchase cigarettes or
13 tobacco products and (ii) it must explain where a clerk can
14 check identification for a date of birth. The training may be
15 conducted electronically. Each retailer that has a training
16 program shall require each employee who completes the training
17 program to sign a form attesting that the employee has
18 received and completed tobacco training. The form shall be
19 kept in the employee's file and may be used to provide proof of
20 training.
21 Any distributor, secondary distributor, or retailer
22 aggrieved by any decision of the Department under this Section
23 may, within 20 days after notice of the decision, protest and
24 request a hearing. Upon receiving a request for a hearing, the
25 Department shall give notice in writing to the distributor,
26 secondary distributor, or retailer requesting the hearing that
HB2755 Enrolled - 1276 - LRB104 08253 BDA 18303 b
1 contains a statement of the charges preferred against the
2 distributor, secondary distributor, or retailer and that
3 states the time and place fixed for the hearing. The
4 Department shall hold the hearing in conformity with the
5 provisions of this Act and then issue its final administrative
6 decision in the matter to the distributor, secondary
7 distributor, or retailer. In the absence of a protest and
8 request for a hearing within 20 days, the Department's
9 decision shall become final without any further determination
10 being made or notice given.
11 No license so revoked, as aforesaid, shall be reissued to
12 any such distributor, secondary distributor, or retailer
13 within a period of 6 months after the date of the final
14 determination of such revocation. No such license shall be
15 reissued at all so long as the person who would receive the
16 license is ineligible to receive a distributor's license under
17 this Act for any one or more of the reasons provided for in
18 Section 4 of this Act, is ineligible to receive a secondary
19 distributor's license under this Act for any one or more of the
20 reasons provided for in Section 4c of this Act, or is
21 determined to be ineligible for a retailer's license under the
22 Act for any one or more of the reasons provided for in Section
23 4g of this Act.
24 The Department upon complaint filed in the circuit court
25 may by injunction restrain any person who fails, or refuses,
26 to comply with any of the provisions of this Act from acting as
HB2755 Enrolled - 1277 - LRB104 08253 BDA 18303 b
1 a distributor, secondary distributor, or retailer of
2 cigarettes in this State.
3 (Source: P.A. 101-2, eff. 7-1-19.)
4 Section 90-20. The Cigarette Use Tax Act is amended by
5 changing Section 6 as follows:
6 (35 ILCS 135/6) (from Ch. 120, par. 453.36)
7 Sec. 6. Revocation, cancellation, or suspension of
8 license. The Department may, after notice and hearing as
9 provided for by this Act, revoke, cancel or suspend the
10 license of any distributor or secondary distributor for the
11 violation of any provision of this Act, or for non-compliance
12 with any provision herein contained, or for any non-compliance
13 with any lawful rule or regulation promulgated by the
14 Department under Section 21 of this Act, or because the
15 licensee is determined to be ineligible for a distributor's
16 license for any one or more of the reasons provided for in
17 Section 4 of this Act, or because the licensee is determined to
18 be ineligible for a secondary distributor's license for any
19 one or more of the reasons provided for in Section 4b or
20 Section 7a of this Act. However, no such license shall be
21 revoked, canceled or suspended, except after a hearing by the
22 Department with notice to the distributor or secondary
23 distributor, as aforesaid, and affording such distributor or
24 secondary distributor a reasonable opportunity to appear and
HB2755 Enrolled - 1278 - LRB104 08253 BDA 18303 b
1 defend, and any distributor or secondary distributor aggrieved
2 by any decision of the Department with respect thereto may
3 have the determination of the Department judicially reviewed,
4 as herein provided.
5 The Department may revoke, cancel, or suspend the license
6 of any distributor for a violation of the Tobacco Products
7 Product Manufacturers' Escrow Enforcement Act of 2003 as
8 provided in Section 30 of that Act. The Department may revoke,
9 cancel, or suspend the license of any secondary distributor
10 for a violation of subsection (e) of Section 15 of the Tobacco
11 Products Product Manufacturers' Escrow Enforcement Act of
12 2003.
13 Any distributor or secondary distributor aggrieved by any
14 decision of the Department under this Section may, within 20
15 days after notice of the decision, protest and request a
16 hearing. Upon receiving a request for a hearing, the
17 Department shall give notice in writing to the distributor or
18 secondary distributor requesting the hearing that contains a
19 statement of the charges preferred against the distributor or
20 secondary distributor and that states the time and place fixed
21 for the hearing. The Department shall hold the hearing in
22 conformity with the provisions of this Act and then issue its
23 final administrative decision in the matter to the distributor
24 or secondary distributor. In the absence of a protest and
25 request for a hearing within 20 days, the Department's
26 decision shall become final without any further determination
HB2755 Enrolled - 1279 - LRB104 08253 BDA 18303 b
1 being made or notice given.
2 No license so revoked, shall be reissued to any such
3 distributor or secondary distributor within a period of 6
4 months after the date of the final determination of such
5 revocation. No such license shall be reissued at all so long as
6 the person who would receive the license is ineligible to
7 receive a distributor's license under this Act for any one or
8 more of the reasons provided for in Section 4 of this Act or is
9 ineligible to receive a secondary distributor's license under
10 this Act for any one or more of the reasons provided for in
11 Section 4b and Section 7a of this Act.
12 The Department upon complaint filed in the circuit court
13 may by injunction restrain any person who fails, or refuses,
14 to comply with this Act from acting as a distributor or
15 secondary distributor of cigarettes in this State.
16 (Source: P.A. 96-1027, eff. 7-12-10.)
17 Section 90-25. The Tobacco Products Tax Act of 1995 is
18 amended by changing Section 10-25 as follows:
19 (35 ILCS 143/10-25)
20 Sec. 10-25. License actions.
21 (a) The Department may, after notice and a hearing,
22 revoke, cancel, or suspend the license of any distributor or
23 retailer who violates any of the provisions of this Act, fails
24 to keep books and records as required under this Act, fails to
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1 make books and records available for inspection upon demand by
2 a duly authorized employee of the Department, or violates a
3 rule or regulation of the Department for the administration
4 and enforcement of this Act. The notice shall specify the
5 alleged violation or violations upon which the revocation,
6 cancellation, or suspension proceeding is based.
7 (b) The Department may revoke, cancel, or suspend the
8 license of any distributor for a violation of the Tobacco
9 Products Product Manufacturers' Escrow Enforcement Act of 2003
10 as provided in Section 30 20 of that Act.
11 (c) If the retailer has a training program that
12 facilitates compliance with minimum-age tobacco laws, the
13 Department shall suspend for 3 days the license of that
14 retailer for a fourth or subsequent violation of the
15 Prevention of Tobacco Use by Persons under 21 Years of Age and
16 Sale and Distribution of Tobacco Products Act, as provided in
17 subsection (a) of Section 2 of that Act. For the purposes of
18 this Section, any violation of subsection (a) of Section 2 of
19 the Prevention of Tobacco Use by Persons under 21 Years of Age
20 and Sale and Distribution of Tobacco Products Act occurring at
21 the retailer's licensed location, during a 24-month period,
22 shall be counted as a violation against the retailer.
23 If the retailer does not have a training program that
24 facilitates compliance with minimum-age tobacco laws, the
25 Department shall suspend for 3 days the license of that
26 retailer for a second violation of the Prevention of Tobacco
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1 Use by Persons under 21 Years of Age and Sale and Distribution
2 of Tobacco Products Act, as provided in subsection (a-5) of
3 Section 2 of that Act.
4 If the retailer does not have a training program that
5 facilitates compliance with minimum-age tobacco laws, the
6 Department shall suspend for 7 days the license of that
7 retailer for a third violation of the Prevention of Tobacco
8 Use by Persons under 21 Years of Age and Sale and Distribution
9 of Tobacco Products Act, as provided in subsection (a-5) of
10 Section 2 of that Act.
11 If the retailer does not have a training program that
12 facilitates compliance with minimum-age tobacco laws, the
13 Department shall suspend for 30 days the license of a retailer
14 for a fourth or subsequent violation of the Prevention of
15 Tobacco Use by Persons under 21 Years of Age and Sale and
16 Distribution of Tobacco Products Act, as provided in
17 subsection (a-5) of Section 2 of that Act.
18 A training program that facilitates compliance with
19 minimum-age tobacco laws must include at least the following
20 elements: (i) it must explain that only individuals displaying
21 valid identification demonstrating that they are 21 years of
22 age or older shall be eligible to purchase cigarettes or
23 tobacco products and (ii) it must explain where a clerk can
24 check identification for a date of birth. The training may be
25 conducted electronically. Each retailer that has a training
26 program shall require each employee who completes the training
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1 program to sign a form attesting that the employee has
2 received and completed tobacco training. The form shall be
3 kept in the employee's file and may be used to provide proof of
4 training.
5 (d) The Department may, by application to any circuit
6 court, obtain an injunction restraining any person who engages
7 in business as a distributor of tobacco products without a
8 license (either because his or her license has been revoked,
9 canceled, or suspended or because of a failure to obtain a
10 license in the first instance) from engaging in that business
11 until that person, as if that person were a new applicant for a
12 license, complies with all of the conditions, restrictions,
13 and requirements of Section 10-20 of this Act and qualifies
14 for and obtains a license. Refusal or neglect to obey the order
15 of the court may result in punishment for contempt.
16 (Source: P.A. 100-940, eff. 8-17-18; 101-2, eff. 7-1-19.)
17 ARTICLE 95
18 Section 95-95. No acceleration or delay. Where this Act
19 makes changes in a statute that is represented in this Act by
20 text that is not yet or no longer in effect (for example, a
21 Section represented by multiple versions), the use of that
22 text does not accelerate or delay the taking effect of (i) the
23 changes made by this Act or (ii) provisions derived from any
24 other Public Act.
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1 Section 95-97. Severability. The provisions of this Act
2 are severable under Section 1.31 of the Statute on Statutes.
3 ARTICLE 99
4 Section 99-99. Effective date. This Act takes effect upon
5 becoming law, except that Articles 10 and 65 takes effect on
6 July 1, 2025, Articles 15 and 55 take effect on January 1,
7 2026, and the changes made in Article 40 to Section 1.1 of the
8 Motor Fuel Tax Law, the Cigarette Machine Operators'
9 Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use
10 Tax Act, and the Tobacco Products Tax Act of 1995 take effect
11 January 1, 2026.Every fact on this page links to its source, starting with the official bill record.