HB4951 Enrolled LRB103 38094 HLH 68226 b
1		AN ACT concerning revenue.
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 Department of Revenue Law of the Civil
6		Administrative Code of Illinois is amended by adding Section
7		2505-815 as follows:
8		(20 ILCS 2505/2505-815 new)
9		Sec. 2505-815. County Official Compensation Task Force.
10		(a) The County Official Compensation Task Force is created
11		to review the compensation of county-level officials as
12		provided for in various State statutes and to make
13		recommendations to the General Assembly on any appropriate
14		changes to those statutes, including implementation dates.
15		(b) The members of the Task Force shall be as follows:
16		(1) the Director of Revenue or the Director's
17		designee, who shall serve as the chair of the Task Force;
18		(2) two representatives from a statewide organization
19		that represents chief county assessment officers, with one
20		representative from a county with a 2020 population of
21		fewer than 25,000 persons and one representative from a
22		county with a 2020 population of 25,000 or more, to be

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1		appointed by the Director of Revenue;
2		(3) two representatives from a statewide organization
3		that represents county auditors, with one representative
4		from a county with a 2020 population of fewer than 25,000
5		persons and one representative from a county with a 2020
6		population of 25,000 or more, to be appointed by the
7		Director of Revenue;
8		(4) two representatives from a statewide organization
9		that represents county clerks and recorders, with one
10		representative from a county with a 2020 population of
11		fewer than 25,000 persons and one representative from a
12		county with a 2020 population of 25,000 or more, to be
13		appointed by the Director of Revenue;
14		(5) two representatives from a statewide organization
15		that represents circuit clerks, with one representative
16		from a county with a 2020 population of fewer than 25,000
17		persons and one representative from a county with a 2020
18		population of 25,000 or more, to be appointed by the Chief
19		Justice of the Supreme Court;
20		(6) two representatives from a statewide organization
21		that represents county treasurers, with one representative
22		from a county with a 2020 population of fewer than 25,000
23		persons and one representative from a county with a 2020
24		population of 25,000 or more, to be appointed by the
25		Director of Revenue;
26		(7) four representatives from a statewide organization

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1		that represents county board members, with 2
2		representatives from counties with a 2020 population of
3		fewer than 25,000 persons and 2 representatives from
4		counties with a 2020 population of 25,000 or more, to be
5		appointed by the Governor; and
6		(8) four members from the General Assembly, with one
7		member appointed by the President of the Senate, one
8		member appointed by the Senate Minority Leader, one member
9		appointed by the Speaker of the House of Representatives,
10		and one member appointed by the House Minority Leader.
11		(c) The Department of Revenue shall provide administrative
12		and other support to the Task Force.
13		(d) The Task Force's review shall include, but is not
14		limited to, the following subjects:
15		(1) a review and comparison of current statutory
16		provisions and requirements for compensation of
17		county-level officials;
18		(2) the proportion of salary and related costs borne
19		by State government compared to local government;
20		(3) job duties, education requirements, and other
21		requirements of those serving as county-level officials;
22		and
23		(4) current compensation levels for county-level
24		officials as compared to comparable positions in
25		non-governmental positions and comparable positions in
26		other levels of government.

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1		(e) On or before September 1, 2024, the Task Force members
2		shall be appointed. On or before February 1, 2025, the Task
3		Force shall prepare a status report that summarizes its work.
4		The Task Force shall also prepare a comprehensive report
5		either (i) on or before May 1, 2025 or (ii) on or before
6		December 31, 2025, if all appointments to the Task Force are
7		not made by September 1, 2024. The comprehensive report shall
8		summarize the Task Force's findings and make recommendations
9		on the implementation of changes to the compensation of chief
10		county assessment officers, county auditors, county clerks and
11		recorders, county coroners, county treasurers, and circuit
12		clerks that will ensure compensation is competitive for
13		recruitment and retention and will ensure parity exists among
14		compensation levels within each profession, each county, and
15		across the State.
16		(f) The Task Force is dissolved on January 1, 2026.
17		ARTICLE 10.
18		Section 10-1. Short title. This Act may be cited as the
19		Workforce Development through Charitable Loan Repayment Act.
20		References in this Article to "this Act" mean this Article.
21		Section 10-5. Purpose. The purpose of this Act is to
22		create a private sector incentive for qualified workers to
23		work and live in eligible areas while also reducing the

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1		student debt burden of those workers.
2		Section 10-10. Definitions. As used in this Act:
3		"Commission" means the Illinois Student Assistance
4		Commission.
5		"Full-time employee" means an individual who is employed
6		for consideration for at least 35 hours each week.
7		"Program" means the Workforce Development Through
8		Charitable Loan Repayment Program established under this Act.
9		"Qualified community foundation" means a community
10		foundation or similar publicly supported organization
11		described in Section 170(b)(1)(A)(vi) of the Internal Revenue
12		Code of 1986 that (i) is organized or operating in this State,
13		(ii) substantially complies, as determined by the Commission,
14		with the national standards for United States community
15		foundations established by the Community Foundations National
16		Standards or a successor entity, and (iii) is approved by the
17		Commission for participation in the Program as provided in
18		Section 10-17.
19		"Qualified worker" means an individual who meets all of
20		the following:
21		(1) the individual is a full-time employee of a
22		business that meets one or more of the following:
23		(A) the business is a qualified new business
24		venture that is registered with the Department of
25		Commerce and Economic Opportunity under Section 220 of

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1		the Illinois Income Tax Act;
2		(B) the business is primarily engaged in a
3		targeted growth industry;
4		(C) the business is a minority-owned business, a
5		women-owned business, or a business owned by a person
6		with a disability, as those terms are defined in the
7		Business Enterprise for Minorities, Women, and Persons
8		with Disabilities Act; or
9		(D) the business is a not-for-profit corporation,
10		as defined in the General Not For Profit Corporation
11		Act of 1986;
12		(2) the individual is employed by the business
13		described in paragraph (1) at a job site that is located in
14		an Enterprise Zone, an Opportunity Zone, an underserved
15		area, or an area that has a bachelor's degree attainment
16		rate for the population that is below the State or
17		national average for the population, as determined by the
18		United States Census Bureau; and
19		(3) the individual (i) received an associate degree or
20		higher and has an outstanding balance due on a qualified
21		education loan, as defined in Section 221 of the Internal
22		Revenue Code, or (ii) accrued educational debt while
23		pursuing skilled trades and related schooling.
24		"Student loan repayment assistance" means grants or
25		post-graduation scholarships made by a community foundation
26		directly to a student loan servicer on behalf of a qualified

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1		worker.
2		"Targeted growth industry" means one or more of the
3		following:
4		(1) advanced manufacturing;
5		(2) agribusiness and food processing;
6		(3) transportation distribution and logistics;
7		(4) life sciences and biotechnology;
8		(5) business and professional services; or
9		(6) energy.
10		"Underserved area" has the meaning given to that term in
11		Section 5-5 of the Economic Development for a Growing Economy
12		Tax Credit Act.
13		Section 10-15. Establishment of the Program;
14		advertisement. The Workforce Development through Charitable
15		Loan Repayment Program is hereby created for the purpose of
16		facilitating student loan repayment assistance for qualified
17		workers. The Program shall be administered by qualified
18		community foundations with the assistance of the Commission.
19		The Commission shall advertise the program on its website.
20		Section 10-17. Approval to participate in the Program.
21		(a) A qualified community foundation shall apply to the
22		Commission, in the form and manner prescribed by the
23		Commission, for eligibility to participate in the Program
24		under this Act. Each application shall include:

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1		(1) documentary evidence that the qualified community
2		foundation meets the qualifications under Section
3		170(b)(1)(A)(vi) of the Internal Revenue Code and
4		substantially complies with the standards established by
5		Community Foundations National Standards;
6		(2) a list of the names and addresses of all members of
7		the governing board of the qualified community foundation;
8		and
9		(3) a copy of the most recent financial audit of the
10		qualified community foundation's accounts and records
11		conducted by an independent certified public accountant in
12		accordance with auditing standards generally accepted in
13		the United States, government auditing standards, and
14		rules adopted by the Commission.
15		(b) The Commission shall review and either approve or deny
16		each application for participation. Applicants shall be
17		notified of the status of their application within a
18		reasonable amount of time after the completed application is
19		received.
20		(c) The Commission may provide, by rule, that qualified
21		community foundations that are eligible to participate in tax
22		incentive programs administered by other State agencies are
23		automatically eligible to participate in the Program under
24		this Section.
25		Section 10-20. Applications. Each qualified community

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1		foundation shall establish an application process for
2		qualified workers to receive student loan repayment assistance
3		from the qualified community foundation in accordance with
4		this Act and rules adopted for the implementation of this Act
5		by the Commission. If necessary due to limited funds, the
6		qualified community foundation shall give priority to
7		applicants with a higher student debt-to-income ratio when
8		awarding student loan repayment assistance under the Program.
9		Section 10-25. Eligibility; work requirement. Each
10		individual qualified community foundation shall certify the
11		eligibility of qualified workers to receive student loan
12		repayment assistance and establish work requirements in
13		accordance with this Act, rules adopted by the Commission, and
14		the requirements of the individual qualified community
15		foundation.
16		Section 10-30. Administration; rules. Qualified community
17		foundations shall administer the Program under this Act and
18		shall issue to qualified workers any forms required by the
19		Commission or the Department of Revenue. The Commission shall
20		adopt rules for the Program's effective implementation, except
21		that rules regarding the documentation necessary to deduct
22		student loan repayment assistance from the worker's income
23		under subparagraph (LL) of subsection (a) of Section 203 of
24		the Illinois Income Tax Act may be adopted by the Department of

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1		Revenue in consultation with the Commission. Individual
2		qualified community foundations may impose requirements for
3		participation in the Program, which shall not be inconsistent
4		with this Act or the rules adopted by the Commission or the
5		Department of Revenue in connection with this Act.
6		Section 10-35. Reporting. Each qualified community
7		foundation shall submit an annual report to the Commission
8		summarizing its loan repayment activity under the Program.
9		Reports under this Section shall be submitted in the form and
10		manner prescribed by the Commission.
11		Section 10-900. The Illinois Income Tax Act is amended by
12		changing Section 203 as follows:
13		(35 ILCS 5/203)
14		Sec. 203. Base income defined.
15		(a) Individuals.
16		(1) In general. In the case of an individual, base
17		income means an amount equal to the taxpayer's adjusted
18		gross income for the taxable year as modified by paragraph
19		(2).
20		(2) Modifications. The adjusted gross income referred
21		to in paragraph (1) shall be modified by adding thereto
22		the sum of the following amounts:
23		(A) An amount equal to all amounts paid or accrued

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1		to the taxpayer as interest or dividends during the
2		taxable year to the extent excluded from gross income
3		in the computation of adjusted gross income, except
4		stock dividends of qualified public utilities
5		described in Section 305(e) of the Internal Revenue
6		Code;
7		(B) An amount equal to the amount of tax imposed by
8		this Act to the extent deducted from gross income in
9		the computation of adjusted gross income for the
10		taxable year;
11		(C) An amount equal to the amount received during
12		the taxable year as a recovery or refund of real
13		property taxes paid with respect to the taxpayer's
14		principal residence under the Revenue Act of 1939 and
15		for which a deduction was previously taken under
16		subparagraph (L) of this paragraph (2) prior to July
17		1, 1991, the retrospective application date of Article
18		4 of Public Act 87-17. In the case of multi-unit or
19		multi-use structures and farm dwellings, the taxes on
20		the taxpayer's principal residence shall be that
21		portion of the total taxes for the entire property
22		which is attributable to such principal residence;
23		(D) An amount equal to the amount of the capital
24		gain deduction allowable under the Internal Revenue
25		Code, to the extent deducted from gross income in the
26		computation of adjusted gross income;

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1		(D-5) An amount, to the extent not included in
2		adjusted gross income, equal to the amount of money
3		withdrawn by the taxpayer in the taxable year from a
4		medical care savings account and the interest earned
5		on the account in the taxable year of a withdrawal
6		pursuant to subsection (b) of Section 20 of the
7		Medical Care Savings Account Act or subsection (b) of
8		Section 20 of the Medical Care Savings Account Act of
9		2000;
10		(D-10) For taxable years ending after December 31,
11		1997, an amount equal to any eligible remediation
12		costs that the individual deducted in computing
13		adjusted gross income and for which the individual
14		claims a credit under subsection (l) of Section 201;
15		(D-15) For taxable years 2001 and thereafter, an
16		amount equal to the bonus depreciation deduction taken
17		on the taxpayer's federal income tax return for the
18		taxable year under subsection (k) of Section 168 of
19		the Internal Revenue Code;
20		(D-16) If the taxpayer sells, transfers, abandons,
21		or otherwise disposes of property for which the
22		taxpayer was required in any taxable year to make an
23		addition modification under subparagraph (D-15), then
24		an amount equal to the aggregate amount of the
25		deductions taken in all taxable years under
26		subparagraph (Z) with respect to that property.

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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		allowed in any taxable year to make a subtraction
6		modification under subparagraph (Z), then an amount
7		equal to that subtraction modification.
8		The taxpayer is required to make the addition
9		modification under this subparagraph only once with
10		respect to any one piece of property;
11		(D-17) An amount equal to the amount otherwise
12		allowed as a deduction in computing base income for
13		interest paid, accrued, or incurred, directly or
14		indirectly, (i) for taxable years ending on or after
15		December 31, 2004, to a foreign person who would be a
16		member of the same unitary business group but for the
17		fact that foreign person's business activity outside
18		the United States is 80% or more of the foreign
19		person's total business activity and (ii) for taxable
20		years ending on or after December 31, 2008, to a person
21		who would be a member of the same unitary business
22		group but for the fact that the person is prohibited
23		under Section 1501(a)(27) from being included in the
24		unitary business group because he or she is ordinarily
25		required to apportion business income under different
26		subsections of Section 304. The addition modification

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1		required by this subparagraph shall be reduced to the
2		extent that dividends were included in base income of
3		the unitary group for the same taxable year and
4		received by the taxpayer or by a member of the
5		taxpayer's unitary business group (including amounts
6		included in gross income under Sections 951 through
7		964 of the Internal Revenue Code and amounts included
8		in gross income under Section 78 of the Internal
9		Revenue Code) with respect to the stock of the same
10		person to whom the interest was paid, accrued, or
11		incurred.
12		This paragraph shall not apply to the following:
13		(i) an item of interest paid, accrued, or
14		incurred, directly or indirectly, to 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 interest; or
19		(ii) an item of interest paid, accrued, or
20		incurred, directly or indirectly, to a person if
21		the taxpayer can establish, based on a
22		preponderance of the evidence, both of the
23		following:
24		(a) the person, during the same taxable
25		year, paid, accrued, or incurred, the interest
26		to a person that is not a related member, and

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1		(b) the transaction giving rise to the
2		interest expense between the taxpayer and the
3		person did not have as a principal purpose the
4		avoidance of Illinois income tax, and is paid
5		pursuant to a contract or agreement that
6		reflects an arm's-length interest rate and
7		terms; or
8		(iii) the taxpayer can establish, based on
9		clear and convincing evidence, that the interest
10		paid, accrued, or incurred relates to a contract
11		or agreement entered into at arm's-length rates
12		and terms and the principal purpose for the
13		payment is not federal or Illinois tax avoidance;
14		or
15		(iv) an item of interest paid, accrued, or
16		incurred, directly or indirectly, to a person if
17		the taxpayer establishes by clear and convincing
18		evidence that the adjustments are unreasonable; or
19		if the taxpayer and the Director agree in writing
20		to the application or use of an alternative method
21		of apportionment under Section 304(f).
22		Nothing in this subsection shall preclude the
23		Director from making any other adjustment
24		otherwise allowed under Section 404 of this Act
25		for any tax year beginning after the effective
26		date of this amendment provided such adjustment is

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1		made pursuant to regulation adopted by the
2		Department and such regulations provide methods
3		and standards by which the Department will utilize
4		its authority under Section 404 of this Act;
5		(D-18) An amount equal to the amount of intangible
6		expenses and costs otherwise allowed as a deduction in
7		computing base income, and that were paid, accrued, or
8		incurred, directly or indirectly, (i) for taxable
9		years ending on or after December 31, 2004, to a
10		foreign person who would be a member of the same
11		unitary business group but for the fact that the
12		foreign person's business activity outside the United
13		States is 80% or more of that person's total business
14		activity and (ii) for taxable years ending on or after
15		December 31, 2008, to a person who would be a member of
16		the same unitary business group but for the fact that
17		the person is prohibited under Section 1501(a)(27)
18		from being included in the unitary business group
19		because he or she is ordinarily required to apportion
20		business income under different subsections of Section
21		304. The addition modification required by this
22		subparagraph shall be reduced to the extent that
23		dividends were included in base income of the unitary
24		group for the same taxable year and received by the
25		taxpayer or by a member of the taxpayer's unitary
26		business group (including amounts included in gross

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1		income under Sections 951 through 964 of the Internal
2		Revenue Code and amounts included in gross income
3		under Section 78 of the Internal Revenue Code) with
4		respect to the stock of the same person to whom the
5		intangible expenses and costs were directly or
6		indirectly paid, incurred, or accrued. The preceding
7		sentence does not apply to the extent that the same
8		dividends caused a reduction to the addition
9		modification required under Section 203(a)(2)(D-17) of
10		this Act. As used in this subparagraph, the term
11		"intangible expenses and costs" includes (1) expenses,
12		losses, and costs for, or related to, the direct or
13		indirect acquisition, use, maintenance or management,
14		ownership, sale, exchange, or any other disposition of
15		intangible property; (2) losses incurred, directly or
16		indirectly, from factoring transactions or discounting
17		transactions; (3) royalty, patent, technical, and
18		copyright fees; (4) licensing fees; and (5) other
19		similar expenses and costs. For purposes of this
20		subparagraph, "intangible property" includes patents,
21		patent applications, trade names, trademarks, service
22		marks, copyrights, mask works, trade secrets, and
23		similar types of intangible assets.
24		This paragraph shall not apply to the following:
25		(i) any item of intangible expenses or costs
26		paid, accrued, or incurred, directly or

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1		indirectly, from a transaction with 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 item; or
6		(ii) any item of intangible expense or cost
7		paid, accrued, or incurred, directly or
8		indirectly, if the taxpayer can establish, based
9		on a preponderance of the evidence, both of the
10		following:
11		(a) the person during the same taxable
12		year paid, accrued, or incurred, the
13		intangible expense or cost to a person that is
14		not a related member, and
15		(b) the transaction giving rise to the
16		intangible expense or cost between the
17		taxpayer and the person did not have as a
18		principal purpose the avoidance of Illinois
19		income tax, and is paid pursuant to a contract
20		or agreement that reflects arm's-length terms;
21		or
22		(iii) any item of intangible expense or cost
23		paid, accrued, or incurred, directly or
24		indirectly, from a transaction with a person if
25		the taxpayer establishes by clear and convincing
26		evidence, that the adjustments are unreasonable;

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1		or if the taxpayer and the Director agree in
2		writing to the application or use of an
3		alternative method of apportionment under Section
4		304(f);
5		Nothing in this subsection shall preclude the
6		Director from making any other adjustment
7		otherwise allowed under Section 404 of this Act
8		for any tax year beginning after the effective
9		date of this amendment provided such adjustment is
10		made pursuant to regulation adopted by the
11		Department and such regulations provide methods
12		and standards by which the Department will utilize
13		its authority under Section 404 of this Act;
14		(D-19) For taxable years ending on or after
15		December 31, 2008, an amount equal to the amount of
16		insurance premium expenses and costs otherwise allowed
17		as a deduction in computing base income, and that were
18		paid, accrued, or incurred, directly or indirectly, to
19		a person who would be a member of the same unitary
20		business group but for the fact that the person is
21		prohibited under Section 1501(a)(27) from being
22		included in the unitary business group because he or
23		she is ordinarily required to apportion business
24		income under different subsections of Section 304. The
25		addition modification required by this subparagraph
26		shall be reduced to the extent that dividends were

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1		included in base income of the unitary group for the
2		same taxable year and received by the taxpayer or by a
3		member of the taxpayer's unitary business group
4		(including amounts included in gross income under
5		Sections 951 through 964 of the Internal Revenue Code
6		and amounts included in gross income under Section 78
7		of the Internal Revenue Code) with respect to the
8		stock of the same person to whom the premiums and costs
9		were directly or indirectly paid, incurred, or
10		accrued. The preceding sentence does not apply to the
11		extent that the same dividends caused a reduction to
12		the addition modification required under Section
13		203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
14		Act;
15		(D-20) For taxable years beginning on or after
16		January 1, 2002 and ending on or before December 31,
17		2006, in the case of a distribution from a qualified
18		tuition program under Section 529 of the Internal
19		Revenue Code, other than (i) a distribution from a
20		College Savings Pool created under Section 16.5 of the
21		State Treasurer Act or (ii) a distribution from the
22		Illinois Prepaid Tuition Trust Fund, an amount equal
23		to the amount excluded from gross income under Section
24		529(c)(3)(B). For taxable years beginning on or after
25		January 1, 2007, in the case of a distribution from a
26		qualified tuition program under Section 529 of the

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1		Internal Revenue Code, other than (i) a distribution
2		from a College Savings Pool created under Section 16.5
3		of the State Treasurer Act, (ii) a distribution from
4		the Illinois Prepaid Tuition Trust Fund, or (iii) a
5		distribution from a qualified tuition program under
6		Section 529 of the Internal Revenue Code that (I)
7		adopts and determines that its offering materials
8		comply with the College Savings Plans Network's
9		disclosure principles and (II) has made reasonable
10		efforts to inform in-state residents of the existence
11		of in-state qualified tuition programs by informing
12		Illinois residents directly and, where applicable, to
13		inform financial intermediaries distributing the
14		program to inform in-state residents of the existence
15		of in-state qualified tuition programs at least
16		annually, an amount equal to the amount excluded from
17		gross income under Section 529(c)(3)(B).
18		For the purposes of this subparagraph (D-20), a
19		qualified tuition program has made reasonable efforts
20		if it makes disclosures (which may use the term
21		"in-state program" or "in-state plan" and need not
22		specifically refer to Illinois or its qualified
23		programs by name) (i) directly to prospective
24		participants in its offering materials or makes a
25		public disclosure, such as a website posting; and (ii)
26		where applicable, to intermediaries selling the

HB4951 Enrolled - 22 - LRB103 38094 HLH 68226 b
1		out-of-state program in the same manner that the
2		out-of-state program distributes its offering
3		materials;
4		(D-20.5) For taxable years beginning on or after
5		January 1, 2018, in the case of a distribution from a
6		qualified ABLE program under Section 529A of the
7		Internal Revenue Code, other than a distribution from
8		a qualified ABLE program created under Section 16.6 of
9		the State Treasurer Act, an amount equal to the amount
10		excluded from gross income under Section 529A(c)(1)(B)
11		of the Internal Revenue Code;
12		(D-21) For taxable years beginning on or after
13		January 1, 2007, in the case of transfer of moneys from
14		a qualified tuition program under Section 529 of the
15		Internal Revenue Code that is administered by the
16		State to an out-of-state program, an amount equal to
17		the amount of moneys previously deducted from base
18		income under subsection (a)(2)(Y) of this Section;
19		(D-21.5) For taxable years beginning on or after
20		January 1, 2018, in the case of the transfer of moneys
21		from a qualified tuition program under Section 529 or
22		a qualified ABLE program under Section 529A of the
23		Internal Revenue Code that is administered by this
24		State to an ABLE account established under an
25		out-of-state ABLE account program, an amount equal to
26		the contribution component of the transferred amount

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1		that was previously deducted from base income under
2		subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
3		Section;
4		(D-22) For taxable years beginning on or after
5		January 1, 2009, and prior to January 1, 2018, in the
6		case of a nonqualified withdrawal or refund of moneys
7		from a qualified tuition program under Section 529 of
8		the Internal Revenue Code administered by the State
9		that is not used for qualified expenses at an eligible
10		education institution, an amount equal to the
11		contribution component of the nonqualified withdrawal
12		or refund that was previously deducted from base
13		income under subsection (a)(2)(y) of this Section,
14		provided that the withdrawal or refund did not result
15		from the beneficiary's death or disability. For
16		taxable years beginning on or after January 1, 2018:
17		(1) in the case of a nonqualified withdrawal or
18		refund, as defined under Section 16.5 of the State
19		Treasurer Act, of moneys from a qualified tuition
20		program under Section 529 of the Internal Revenue Code
21		administered by the State, an amount equal to the
22		contribution component of the nonqualified withdrawal
23		or refund that was previously deducted from base
24		income under subsection (a)(2)(Y) of this Section, and
25		(2) in the case of a nonqualified withdrawal or refund
26		from a qualified ABLE program under Section 529A of

HB4951 Enrolled - 24 - LRB103 38094 HLH 68226 b
1		the Internal Revenue Code administered by the State
2		that is not used for qualified disability expenses, an
3		amount equal to the contribution component of the
4		nonqualified withdrawal or refund that was previously
5		deducted from base income under subsection (a)(2)(HH)
6		of this Section;
7		(D-23) An amount equal to the credit allowable to
8		the taxpayer under Section 218(a) of this Act,
9		determined without regard to Section 218(c) of this
10		Act;
11		(D-24) For taxable years ending on or after
12		December 31, 2017, an amount equal to the deduction
13		allowed under Section 199 of the Internal Revenue Code
14		for the taxable year;
15		(D-25) In the case of a resident, an amount equal
16		to the amount of tax for which a credit is allowed
17		pursuant to Section 201(p)(7) of this Act;
18		and by deducting from the total so obtained the sum of the
19		following amounts:
20		(E) For taxable years ending before December 31,
21		2001, any amount included in such total in respect of
22		any compensation (including but not limited to any
23		compensation paid or accrued to a serviceman while a
24		prisoner of war or missing in action) paid to a
25		resident by reason of being on active duty in the Armed
26		Forces of the United States and in respect of any

HB4951 Enrolled - 25 - LRB103 38094 HLH 68226 b
1		compensation paid or accrued to a resident who as a
2		governmental employee was a prisoner of war or missing
3		in action, and in respect of any compensation paid to a
4		resident in 1971 or thereafter for annual training
5		performed pursuant to Sections 502 and 503, Title 32,
6		United States Code as a member of the Illinois
7		National Guard or, beginning with taxable years ending
8		on or after December 31, 2007, the National Guard of
9		any other state. For taxable years ending on or after
10		December 31, 2001, any amount included in such total
11		in respect of any compensation (including but not
12		limited to any compensation paid or accrued to a
13		serviceman while a prisoner of war or missing in
14		action) paid to a resident by reason of being a member
15		of any component of the Armed Forces of the United
16		States and in respect of any compensation paid or
17		accrued to a resident who as a governmental employee
18		was a prisoner of war or missing in action, and in
19		respect of any compensation paid to a resident in 2001
20		or thereafter by reason of being a member of the
21		Illinois National Guard or, beginning with taxable
22		years ending on or after December 31, 2007, the
23		National Guard of any other state. The provisions of
24		this subparagraph (E) are exempt from the provisions
25		of Section 250;
26		(F) An amount equal to all amounts included in

HB4951 Enrolled - 26 - LRB103 38094 HLH 68226 b
1		such total pursuant to the provisions of Sections
2		402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
3		408 of the Internal Revenue Code, or included in such
4		total as distributions under the provisions of any
5		retirement or disability plan for employees of any
6		governmental agency or unit, or retirement payments to
7		retired partners, which payments are excluded in
8		computing net earnings from self employment by Section
9		1402 of the Internal Revenue Code and regulations
10		adopted pursuant thereto;
11		(G) The valuation limitation amount;
12		(H) An amount equal to the amount of any tax
13		imposed by this Act which was refunded to the taxpayer
14		and included in such total for the taxable year;
15		(I) An amount equal to all amounts included in
16		such total pursuant to the provisions of Section 111
17		of the Internal Revenue Code as a recovery of items
18		previously deducted from adjusted gross income in the
19		computation of taxable income;
20		(J) An amount equal to those dividends included in
21		such total which were paid by a corporation which
22		conducts business operations in a River Edge
23		Redevelopment Zone or zones created under the River
24		Edge Redevelopment Zone Act, and conducts
25		substantially all of its operations in a River Edge
26		Redevelopment Zone or zones. This subparagraph (J) is

HB4951 Enrolled - 27 - LRB103 38094 HLH 68226 b
1		exempt from the provisions of Section 250;
2		(K) An amount equal to those dividends included in
3		such total that were paid by a corporation that
4		conducts business operations in a federally designated
5		Foreign Trade Zone or Sub-Zone and that is designated
6		a High Impact Business located in Illinois; provided
7		that dividends eligible for the deduction provided in
8		subparagraph (J) of paragraph (2) of this subsection
9		shall not be eligible for the deduction provided under
10		this subparagraph (K);
11		(L) For taxable years ending after December 31,
12		1983, an amount equal to all social security benefits
13		and railroad retirement benefits included in such
14		total pursuant to Sections 72(r) and 86 of the
15		Internal Revenue Code;
16		(M) With the exception of any amounts subtracted
17		under subparagraph (N), an amount equal to the sum of
18		all amounts disallowed as deductions by (i) Sections
19		171(a)(2) and 265(a)(2) of the Internal Revenue Code,
20		and all amounts of expenses allocable to interest and
21		disallowed as deductions by Section 265(a)(1) of the
22		Internal Revenue Code; and (ii) for taxable years
23		ending on or after August 13, 1999, Sections
24		171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
25		Internal Revenue Code, plus, for taxable years ending
26		on or after December 31, 2011, Section 45G(e)(3) of

HB4951 Enrolled - 28 - LRB103 38094 HLH 68226 b
1		the Internal Revenue Code and, for taxable years
2		ending on or after December 31, 2008, any amount
3		included in gross income under Section 87 of the
4		Internal Revenue Code; the provisions of this
5		subparagraph are exempt from the provisions of Section
6		250;
7		(N) An amount equal to all amounts included in
8		such total which are exempt from taxation by this
9		State either by reason of its statutes or Constitution
10		or by reason of the Constitution, treaties or statutes
11		of the United States; provided that, in the case of any
12		statute of this State that exempts income derived from
13		bonds or other obligations from the tax imposed under
14		this Act, the amount exempted shall be the interest
15		net of bond premium amortization;
16		(O) An amount equal to any contribution made to a
17		job training project established pursuant to the Tax
18		Increment Allocation Redevelopment Act;
19		(P) An amount equal to the amount of the deduction
20		used to compute the federal income tax credit for
21		restoration of substantial amounts held under claim of
22		right for the taxable year pursuant to Section 1341 of
23		the Internal Revenue Code or of any itemized deduction
24		taken from adjusted gross income in the computation of
25		taxable income for restoration of substantial amounts
26		held under claim of right for the taxable year;

HB4951 Enrolled - 29 - LRB103 38094 HLH 68226 b
1		(Q) An amount equal to any amounts included in
2		such total, received by the taxpayer as an
3		acceleration in the payment of life, endowment or
4		annuity benefits in advance of the time they would
5		otherwise be payable as an indemnity for a terminal
6		illness;
7		(R) An amount equal to the amount of any federal or
8		State bonus paid to veterans of the Persian Gulf War;
9		(S) An amount, to the extent included in adjusted
10		gross income, equal to the amount of a contribution
11		made in the taxable year on behalf of the taxpayer to a
12		medical care savings account established under the
13		Medical Care Savings Account Act or the Medical Care
14		Savings Account Act of 2000 to the extent the
15		contribution is accepted by the account administrator
16		as provided in that Act;
17		(T) An amount, to the extent included in adjusted
18		gross income, equal to the amount of interest earned
19		in the taxable year on a medical care savings account
20		established under the Medical Care Savings Account Act
21		or the Medical Care Savings Account Act of 2000 on
22		behalf of the taxpayer, other than interest added
23		pursuant to item (D-5) of this paragraph (2);
24		(U) For one taxable year beginning on or after
25		January 1, 1994, an amount equal to the total amount of
26		tax imposed and paid under subsections (a) and (b) of

HB4951 Enrolled - 30 - LRB103 38094 HLH 68226 b
1		Section 201 of this Act on grant amounts received by
2		the taxpayer under the Nursing Home Grant Assistance
3		Act during the taxpayer's taxable years 1992 and 1993;
4		(V) Beginning with tax years ending on or after
5		December 31, 1995 and ending with tax years ending on
6		or before December 31, 2004, an amount equal to the
7		amount paid by a taxpayer who is a self-employed
8		taxpayer, a partner of a partnership, or a shareholder
9		in a Subchapter S corporation for health insurance or
10		long-term care insurance for that taxpayer or that
11		taxpayer's spouse or dependents, to the extent that
12		the amount paid for that health insurance or long-term
13		care insurance may be deducted under Section 213 of
14		the Internal Revenue Code, has not been deducted on
15		the federal income tax return of the taxpayer, and
16		does not exceed the taxable income attributable to
17		that taxpayer's income, self-employment income, or
18		Subchapter S corporation income; except that no
19		deduction shall be allowed under this item (V) if the
20		taxpayer is eligible to participate in any health
21		insurance or long-term care insurance plan of an
22		employer of the taxpayer or the taxpayer's spouse. The
23		amount of the health insurance and long-term care
24		insurance subtracted under this item (V) shall be
25		determined by multiplying total health insurance and
26		long-term care insurance premiums paid by the taxpayer

HB4951 Enrolled - 31 - LRB103 38094 HLH 68226 b
1		times a number that represents the fractional
2		percentage of eligible medical expenses under Section
3		213 of the Internal Revenue Code of 1986 not actually
4		deducted on the taxpayer's federal income tax return;
5		(W) For taxable years beginning on or after
6		January 1, 1998, all amounts included in the
7		taxpayer's federal gross income in the taxable year
8		from amounts converted from a regular IRA to a Roth
9		IRA. This paragraph is exempt from the provisions of
10		Section 250;
11		(X) For taxable year 1999 and thereafter, an
12		amount equal to the amount of any (i) distributions,
13		to the extent includible in gross income for federal
14		income tax purposes, made to the taxpayer because of
15		his or her status as a victim of persecution for racial
16		or religious reasons by Nazi Germany or any other Axis
17		regime or as an heir of the victim and (ii) items of
18		income, to the extent includible in gross income for
19		federal income tax purposes, attributable to, derived
20		from or in any way related to assets stolen from,
21		hidden from, or otherwise lost to a victim of
22		persecution for racial or religious reasons by Nazi
23		Germany or any other Axis regime immediately prior to,
24		during, and immediately after World War II, including,
25		but not limited to, interest on the proceeds
26		receivable as insurance under policies issued to a

HB4951 Enrolled - 32 - LRB103 38094 HLH 68226 b
1		victim of persecution for racial or religious reasons
2		by Nazi Germany or any other Axis regime by European
3		insurance companies immediately prior to and during
4		World War II; provided, however, this subtraction from
5		federal adjusted gross income does not apply to assets
6		acquired with such assets or with the proceeds from
7		the sale of such assets; provided, further, this
8		paragraph shall only apply to a taxpayer who was the
9		first recipient of such assets after their recovery
10		and who is a victim of persecution for racial or
11		religious reasons by Nazi Germany or any other Axis
12		regime or as an heir of the victim. The amount of and
13		the eligibility for any public assistance, benefit, or
14		similar entitlement is not affected by the inclusion
15		of items (i) and (ii) of this paragraph in gross income
16		for federal income tax purposes. This paragraph is
17		exempt from the provisions of Section 250;
18		(Y) For taxable years beginning on or after
19		January 1, 2002 and ending on or before December 31,
20		2004, moneys contributed in the taxable year to a
21		College Savings Pool account under Section 16.5 of the
22		State Treasurer Act, except that amounts excluded from
23		gross income under Section 529(c)(3)(C)(i) of the
24		Internal Revenue Code shall not be considered moneys
25		contributed under this subparagraph (Y). For taxable
26		years beginning on or after January 1, 2005, a maximum

HB4951 Enrolled - 33 - LRB103 38094 HLH 68226 b
1		of $10,000 contributed in the taxable year to (i) a
2		College Savings Pool account under Section 16.5 of the
3		State Treasurer Act or (ii) the Illinois Prepaid
4		Tuition Trust Fund, except that amounts excluded from
5		gross income under Section 529(c)(3)(C)(i) of the
6		Internal Revenue Code shall not be considered moneys
7		contributed under this subparagraph (Y). For purposes
8		of this subparagraph, contributions made by an
9		employer on behalf of an employee, or matching
10		contributions made by an employee, shall be treated as
11		made by the employee. This subparagraph (Y) is exempt
12		from the provisions of Section 250;
13		(Z) For taxable years 2001 and thereafter, for the
14		taxable year in which the bonus depreciation deduction
15		is taken on the taxpayer's federal income tax return
16		under subsection (k) of Section 168 of the Internal
17		Revenue Code and for each applicable taxable year
18		thereafter, an amount equal to "x", where:
19		(1) "y" equals the amount of the depreciation
20		deduction taken for the taxable year on the
21		taxpayer's federal income tax return on property
22		for which the bonus depreciation deduction was
23		taken in any year under subsection (k) of Section
24		168 of the Internal Revenue Code, but not
25		including the bonus depreciation deduction;
26		(2) for taxable years ending on or before

HB4951 Enrolled - 34 - LRB103 38094 HLH 68226 b
1		December 31, 2005, "x" equals "y" multiplied by 30
2		and then divided by 70 (or "y" multiplied by
3		0.429); and
4		(3) for taxable years ending after December
5		31, 2005:
6		(i) for property on which a bonus
7		depreciation deduction of 30% of the adjusted
8		basis was taken, "x" equals "y" multiplied by
9		30 and then divided by 70 (or "y" multiplied
10		by 0.429);
11		(ii) for property on which a bonus
12		depreciation deduction of 50% of the adjusted
13		basis was taken, "x" equals "y" multiplied by
14		1.0;
15		(iii) for property on which a bonus
16		depreciation deduction of 100% of the adjusted
17		basis was taken in a taxable year ending on or
18		after December 31, 2021, "x" equals the
19		depreciation deduction that would be allowed
20		on that property if the taxpayer had made the
21		election under Section 168(k)(7) of the
22		Internal Revenue Code to not claim bonus
23		depreciation on that property; and
24		(iv) for property on which a bonus
25		depreciation deduction of a percentage other
26		than 30%, 50% or 100% of the adjusted basis

HB4951 Enrolled - 35 - LRB103 38094 HLH 68226 b
1		was taken in a taxable year ending on or after
2		December 31, 2021, "x" equals "y" multiplied
3		by 100 times the percentage bonus depreciation
4		on the property (that is, 100(bonus%)) and
5		then divided by 100 times 1 minus the
6		percentage bonus depreciation on the property
7		(that is, 100(1-bonus%)).
8		The aggregate amount deducted under this
9		subparagraph in all taxable years for any one piece of
10		property may not exceed the amount of the bonus
11		depreciation deduction taken on that property on the
12		taxpayer's federal income tax return under subsection
13		(k) of Section 168 of the Internal Revenue Code. This
14		subparagraph (Z) is exempt from the provisions of
15		Section 250;
16		(AA) If the taxpayer sells, transfers, abandons,
17		or otherwise disposes of property for which the
18		taxpayer was required in any taxable year to make an
19		addition modification under subparagraph (D-15), then
20		an amount equal to that addition modification.
21		If the taxpayer continues to own property through
22		the last day of the last tax year for which a
23		subtraction is allowed with respect to that property
24		under subparagraph (Z) and for which the taxpayer was
25		required in any taxable year to make an addition
26		modification under subparagraph (D-15), then an amount

HB4951 Enrolled - 36 - LRB103 38094 HLH 68226 b
1		equal to that addition modification.
2		The taxpayer is allowed to take the deduction
3		under this subparagraph only once with respect to any
4		one piece of property.
5		This subparagraph (AA) is exempt from the
6		provisions of Section 250;
7		(BB) Any amount included in adjusted gross income,
8		other than salary, received by a driver in a
9		ridesharing arrangement using a motor vehicle;
10		(CC) The amount of (i) any interest income (net of
11		the deductions allocable thereto) taken into account
12		for the taxable year with respect to a transaction
13		with a taxpayer that is required to make an addition
14		modification with respect to such transaction under
15		Section 203(a)(2)(D-17), 203(b)(2)(E-12),
16		203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
17		the amount of that addition modification, and (ii) any
18		income from intangible property (net of the deductions
19		allocable thereto) taken into account for the taxable
20		year with respect to a transaction with a taxpayer
21		that is required to make an addition modification with
22		respect to such transaction under Section
23		203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
24		203(d)(2)(D-8), but not to exceed the amount of that
25		addition modification. This subparagraph (CC) is
26		exempt from the provisions of Section 250;

HB4951 Enrolled - 37 - LRB103 38094 HLH 68226 b
1		(DD) An amount equal to the interest income taken
2		into account for the taxable year (net of the
3		deductions allocable thereto) with respect to
4		transactions with (i) a foreign person who would be a
5		member of the taxpayer's unitary business group but
6		for the fact that the foreign person's business
7		activity outside the United States is 80% or more of
8		that person's total business activity and (ii) for
9		taxable years ending on or after December 31, 2008, to
10		a person who would be a member of the same unitary
11		business group but for the fact that the person is
12		prohibited under Section 1501(a)(27) from being
13		included in the unitary business group because he or
14		she is ordinarily required to apportion business
15		income under different subsections of Section 304, but
16		not to exceed the addition modification required to be
17		made for the same taxable year under Section
18		203(a)(2)(D-17) for interest paid, accrued, or
19		incurred, directly or indirectly, to the same person.
20		This subparagraph (DD) is exempt from the provisions
21		of Section 250;
22		(EE) An amount equal to the income from intangible
23		property taken into account for the taxable year (net
24		of the deductions allocable thereto) with respect to
25		transactions with (i) a foreign person who would be a
26		member of the taxpayer's unitary business group but

HB4951 Enrolled - 38 - LRB103 38094 HLH 68226 b
1		for the fact that the foreign person's business
2		activity outside the United States is 80% or more of
3		that person's total business activity and (ii) for
4		taxable years ending on or after December 31, 2008, to
5		a person who would be a member of the same unitary
6		business group but for the fact that the person is
7		prohibited under Section 1501(a)(27) from being
8		included in the unitary business group because he or
9		she is ordinarily required to apportion business
10		income under different subsections of Section 304, but
11		not to exceed the addition modification required to be
12		made for the same taxable year under Section
13		203(a)(2)(D-18) for intangible expenses and costs
14		paid, accrued, or incurred, directly or indirectly, to
15		the same foreign person. This subparagraph (EE) is
16		exempt from the provisions of Section 250;
17		(FF) An amount equal to any amount awarded to the
18		taxpayer during the taxable year by the Court of
19		Claims under subsection (c) of Section 8 of the Court
20		of Claims Act for time unjustly served in a State
21		prison. This subparagraph (FF) is exempt from the
22		provisions of Section 250;
23		(GG) For taxable years ending on or after December
24		31, 2011, in the case of a taxpayer who was required to
25		add back any insurance premiums under Section
26		203(a)(2)(D-19), such taxpayer may elect to subtract

HB4951 Enrolled - 39 - LRB103 38094 HLH 68226 b
1		that part of a reimbursement received from the
2		insurance company equal to the amount of the expense
3		or loss (including expenses incurred by the insurance
4		company) that would have been taken into account as a
5		deduction for federal income tax purposes if the
6		expense or loss had been uninsured. If a taxpayer
7		makes the election provided for by this subparagraph
8		(GG), the insurer to which the premiums were paid must
9		add back to income the amount subtracted by the
10		taxpayer pursuant to this subparagraph (GG). This
11		subparagraph (GG) is exempt from the provisions of
12		Section 250;
13		(HH) For taxable years beginning on or after
14		January 1, 2018 and prior to January 1, 2028, a maximum
15		of $10,000 contributed in the taxable year to a
16		qualified ABLE account under Section 16.6 of the State
17		Treasurer Act, except that amounts excluded from gross
18		income under Section 529(c)(3)(C)(i) or Section
19		529A(c)(1)(C) of the Internal Revenue Code shall not
20		be considered moneys contributed under this
21		subparagraph (HH). For purposes of this subparagraph
22		(HH), contributions made by an employer on behalf of
23		an employee, or matching contributions made by an
24		employee, shall be treated as made by the employee;
25		(II) For taxable years that begin on or after
26		January 1, 2021 and begin before January 1, 2026, the

HB4951 Enrolled - 40 - LRB103 38094 HLH 68226 b
1		amount that is included in the taxpayer's federal
2		adjusted gross income pursuant to Section 61 of the
3		Internal Revenue Code as discharge of indebtedness
4		attributable to student loan forgiveness and that is
5		not excluded from the taxpayer's federal adjusted
6		gross income pursuant to paragraph (5) of subsection
7		(f) of Section 108 of the Internal Revenue Code; and
8		(JJ) For taxable years beginning on or after
9		January 1, 2023, for any cannabis establishment
10		operating in this State and licensed under the
11		Cannabis Regulation and Tax Act or any cannabis
12		cultivation center or medical cannabis dispensing
13		organization operating in this State and licensed
14		under the Compassionate Use of Medical Cannabis
15		Program Act, an amount equal to the deductions that
16		were disallowed under Section 280E of the Internal
17		Revenue Code for the taxable year and that would not be
18		added back under this subsection. The provisions of
19		this subparagraph (JJ) are exempt from the provisions
20		of Section 250; .
21		(KK) (JJ) To the extent includible in gross income
22		for federal income tax purposes, any amount awarded or
23		paid to the taxpayer as a result of a judgment or
24		settlement for fertility fraud as provided in Section
25		15 of the Illinois Fertility Fraud Act, donor
26		fertility fraud as provided in Section 20 of the

HB4951 Enrolled - 41 - LRB103 38094 HLH 68226 b
1		Illinois Fertility Fraud Act, or similar action in
2		another state; and .
3		(LL) For taxable years beginning on or after
4		January 1, 2026, if the taxpayer is a qualified
5		worker, as defined in the Workforce Development
6		through Charitable Loan Repayment Act, an amount equal
7		to the amount included in the taxpayer's federal
8		adjusted gross income that is attributable to student
9		loan repayment assistance received by the taxpayer
10		during the taxable year from a qualified community
11		foundation under the provisions of the Workforce
12		Development Through Charitable Loan Repayment Act.
13		This subparagraph (LL) is exempt from the
14		provisions of Section 250.
15		(b) Corporations.
16		(1) In general. In the case of a corporation, base
17		income means an amount equal to the taxpayer's taxable
18		income for the taxable year as modified by paragraph (2).
19		(2) Modifications. The taxable income referred to in
20		paragraph (1) shall be modified by adding thereto the sum
21		of the following amounts:
22		(A) An amount equal to all amounts paid or accrued
23		to the taxpayer as interest and all distributions
24		received from regulated investment companies during
25		the taxable year to the extent excluded from gross

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1		income in the computation of taxable income;
2		(B) An amount equal to the amount of tax imposed by
3		this Act to the extent deducted from gross income in
4		the computation of taxable income for the taxable
5		year;
6		(C) In the case of a regulated investment company,
7		an amount equal to the excess of (i) the net long-term
8		capital gain for the taxable year, over (ii) the
9		amount of the capital gain dividends designated as
10		such in accordance with Section 852(b)(3)(C) of the
11		Internal Revenue Code and any amount designated under
12		Section 852(b)(3)(D) of the Internal Revenue Code,
13		attributable to the taxable year (this amendatory Act
14		of 1995 (Public Act 89-89) is declarative of existing
15		law and is not a new enactment);
16		(D) The amount of any net operating loss deduction
17		taken in arriving at taxable income, other than a net
18		operating loss carried forward from a taxable year
19		ending prior to December 31, 1986;
20		(E) For taxable years in which a net operating
21		loss carryback or carryforward from a taxable year
22		ending prior to December 31, 1986 is an element of
23		taxable income under paragraph (1) of subsection (e)
24		or subparagraph (E) of paragraph (2) of subsection
25		(e), the amount by which addition modifications other
26		than those provided by this subparagraph (E) exceeded

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1		subtraction modifications in such earlier taxable
2		year, with the following limitations applied in the
3		order that they are listed:
4		(i) the addition modification relating to the
5		net operating loss carried back or forward to the
6		taxable year from any taxable year ending prior to
7		December 31, 1986 shall be reduced by the amount
8		of addition modification under this subparagraph
9		(E) which related to that net operating loss and
10		which was taken into account in calculating the
11		base income of an earlier taxable year, and
12		(ii) the addition modification relating to the
13		net operating loss carried back or forward to the
14		taxable year from any taxable year ending prior to
15		December 31, 1986 shall not exceed the amount of
16		such carryback or carryforward;
17		For taxable years in which there is a net
18		operating loss carryback or carryforward from more
19		than one other taxable year ending prior to December
20		31, 1986, the addition modification provided in this
21		subparagraph (E) shall be the sum of the amounts
22		computed independently under the preceding provisions
23		of this subparagraph (E) for each such taxable year;
24		(E-5) For taxable years ending after December 31,
25		1997, an amount equal to any eligible remediation
26		costs that the corporation deducted in computing

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1		adjusted gross income and for which the corporation
2		claims a credit under subsection (l) of Section 201;
3		(E-10) For taxable years 2001 and thereafter, an
4		amount equal to the bonus depreciation deduction taken
5		on the taxpayer's federal income tax return for the
6		taxable year under subsection (k) of Section 168 of
7		the Internal Revenue Code;
8		(E-11) If the taxpayer sells, transfers, abandons,
9		or otherwise disposes of property for which the
10		taxpayer was required in any taxable year to make an
11		addition modification under subparagraph (E-10), then
12		an amount equal to the aggregate amount of the
13		deductions taken in all taxable years under
14		subparagraph (T) with respect to that property.
15		If the taxpayer continues to own property through
16		the last day of the last tax year for which a
17		subtraction is allowed with respect to that property
18		under subparagraph (T) and for which the taxpayer was
19		allowed in any taxable year to make a subtraction
20		modification under subparagraph (T), then an amount
21		equal to that subtraction modification.
22		The taxpayer is required to make the addition
23		modification under this subparagraph only once with
24		respect to any one piece of property;
25		(E-12) An amount equal to the amount otherwise
26		allowed as a deduction in computing base income for

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1		interest paid, accrued, or incurred, directly or
2		indirectly, (i) for taxable years ending on or after
3		December 31, 2004, to a foreign person who would be a
4		member of the same unitary business group but for the
5		fact the foreign person's business activity outside
6		the United States is 80% or more of the foreign
7		person's total business activity and (ii) for taxable
8		years ending on or after December 31, 2008, to a person
9		who would be a member of the same unitary business
10		group but for the fact that the person is prohibited
11		under Section 1501(a)(27) from being included in the
12		unitary business group because he or she is ordinarily
13		required to apportion business income under different
14		subsections of Section 304. The addition modification
15		required by this subparagraph shall be reduced to the
16		extent that dividends were included in base income of
17		the unitary group for the same taxable year and
18		received by the taxpayer or by a member of the
19		taxpayer's unitary business group (including amounts
20		included in gross income pursuant to Sections 951
21		through 964 of the Internal Revenue Code and amounts
22		included in gross income under Section 78 of the
23		Internal Revenue Code) with respect to the stock of
24		the same person to whom the interest was paid,
25		accrued, or incurred.
26		This paragraph shall not apply to the following:

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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

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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		Nothing in this subsection shall preclude the
11		Director from making any other adjustment
12		otherwise allowed under Section 404 of this Act
13		for any tax year beginning after the effective
14		date of this amendment provided such adjustment is
15		made pursuant to regulation adopted by the
16		Department and such regulations provide methods
17		and standards by which the Department will utilize
18		its authority under Section 404 of this Act;
19		(E-13) An amount equal to the amount of intangible
20		expenses and costs otherwise allowed as a deduction in
21		computing base income, and that were paid, accrued, or
22		incurred, directly or indirectly, (i) for taxable
23		years ending on or after December 31, 2004, to a
24		foreign person who would be a member of the same
25		unitary business group but for the fact that the
26		foreign person's business activity outside the United

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1		States is 80% or more of that person's total business
2		activity and (ii) for taxable years ending on or after
3		December 31, 2008, to a person who would be a member of
4		the same unitary business group but for the fact that
5		the person is prohibited under Section 1501(a)(27)
6		from being included in the unitary business group
7		because he or she is ordinarily required to apportion
8		business income under different subsections of Section
9		304. The addition modification required by this
10		subparagraph shall be reduced to the extent that
11		dividends were included in base income of the unitary
12		group for the same taxable year and received by the
13		taxpayer or by a member of the taxpayer's unitary
14		business group (including amounts included in gross
15		income pursuant to Sections 951 through 964 of the
16		Internal Revenue Code and amounts included in gross
17		income under Section 78 of the Internal Revenue Code)
18		with respect to the stock of the same person to whom
19		the intangible expenses and costs were directly or
20		indirectly paid, incurred, or accrued. The preceding
21		sentence shall not apply to the extent that the same
22		dividends caused a reduction to the addition
23		modification required under Section 203(b)(2)(E-12) of
24		this Act. As used in this subparagraph, the term
25		"intangible expenses and costs" includes (1) expenses,
26		losses, and costs for, or related to, the direct or

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1		indirect acquisition, use, maintenance or management,
2		ownership, sale, exchange, or any other disposition of
3		intangible property; (2) losses incurred, directly or
4		indirectly, from factoring transactions or discounting
5		transactions; (3) royalty, patent, technical, and
6		copyright fees; (4) licensing fees; and (5) other
7		similar expenses and costs. For purposes of this
8		subparagraph, "intangible property" includes patents,
9		patent applications, trade names, trademarks, service
10		marks, copyrights, mask works, trade secrets, and
11		similar types of intangible assets.
12		This paragraph shall not apply to the following:
13		(i) any item of intangible expenses or costs
14		paid, accrued, or incurred, directly or
15		indirectly, from a transaction with a person who
16		is subject in a foreign country or state, other
17		than a state which requires mandatory unitary
18		reporting, to a tax on or measured by net income
19		with respect to such item; or
20		(ii) 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

HB4951 Enrolled - 50 - LRB103 38094 HLH 68226 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		(iii) 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

HB4951 Enrolled - 51 - LRB103 38094 HLH 68226 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

HB4951 Enrolled - 52 - LRB103 38094 HLH 68226 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

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1		under Sections 243(e) and 245A(a) of the Internal
2		Revenue Code for the taxable year.
3		and by deducting from the total so obtained the sum of the
4		following amounts:
5		(F) An amount equal to the amount of any tax
6		imposed by this Act which was refunded to the taxpayer
7		and included in such total for the taxable year;
8		(G) An amount equal to any amount included in such
9		total under Section 78 of the Internal Revenue Code;
10		(H) In the case of a regulated investment company,
11		an amount equal to the amount of exempt interest
12		dividends as defined in subsection (b)(5) of Section
13		852 of the Internal Revenue Code, paid to shareholders
14		for the taxable year;
15		(I) With the exception of any amounts subtracted
16		under subparagraph (J), an amount equal to the sum of
17		all amounts disallowed as deductions by (i) Sections
18		171(a)(2) and 265(a)(2) and amounts disallowed as
19		interest expense by Section 291(a)(3) of the Internal
20		Revenue Code, and all amounts of expenses allocable to
21		interest and disallowed as deductions by Section
22		265(a)(1) of the Internal Revenue Code; and (ii) for
23		taxable years ending on or after August 13, 1999,
24		Sections 171(a)(2), 265, 280C, 291(a)(3), and
25		832(b)(5)(B)(i) of the Internal Revenue Code, plus,
26		for tax years ending on or after December 31, 2011,

HB4951 Enrolled - 54 - LRB103 38094 HLH 68226 b
1		amounts disallowed as deductions by Section 45G(e)(3)
2		of the Internal Revenue Code and, for taxable years
3		ending on or after December 31, 2008, any amount
4		included in gross income under Section 87 of the
5		Internal Revenue Code and the policyholders' share of
6		tax-exempt interest of a life insurance company under
7		Section 807(a)(2)(B) of the Internal Revenue Code (in
8		the case of a life insurance company with gross income
9		from a decrease in reserves for the tax year) or
10		Section 807(b)(1)(B) of the Internal Revenue Code (in
11		the case of a life insurance company allowed a
12		deduction for an increase in reserves for the tax
13		year); the provisions of this subparagraph are exempt
14		from the provisions of Section 250;
15		(J) An amount equal to all amounts included in
16		such total which are exempt from taxation by this
17		State either by reason of its statutes or Constitution
18		or by reason of the Constitution, treaties or statutes
19		of the United States; provided that, in the case of any
20		statute of this State that exempts income derived from
21		bonds or other obligations from the tax imposed under
22		this Act, the amount exempted shall be the interest
23		net of bond premium amortization;
24		(K) An amount equal to those dividends included in
25		such total which were paid by a corporation which
26		conducts business operations in a River Edge

HB4951 Enrolled - 55 - LRB103 38094 HLH 68226 b
1		Redevelopment Zone or zones created under the River
2		Edge Redevelopment Zone Act and conducts substantially
3		all of its operations in a River Edge Redevelopment
4		Zone or zones. This subparagraph (K) is exempt from
5		the provisions of Section 250;
6		(L) An amount equal to those dividends included in
7		such total that were paid by a corporation that
8		conducts business operations in a federally designated
9		Foreign Trade Zone or Sub-Zone and that is designated
10		a High Impact Business located in Illinois; provided
11		that dividends eligible for the deduction provided in
12		subparagraph (K) of paragraph 2 of this subsection
13		shall not be eligible for the deduction provided under
14		this subparagraph (L);
15		(M) For any taxpayer that is a financial
16		organization within the meaning of Section 304(c) of
17		this Act, an amount included in such total as interest
18		income from a loan or loans made by such taxpayer to a
19		borrower, to the extent that such a loan is secured by
20		property which is eligible for the River Edge
21		Redevelopment Zone Investment Credit. To determine the
22		portion of a loan or loans that is secured by property
23		eligible for a Section 201(f) investment credit to the
24		borrower, the entire principal amount of the loan or
25		loans between the taxpayer and the borrower should be
26		divided into the basis of the Section 201(f)

HB4951 Enrolled - 56 - LRB103 38094 HLH 68226 b
1		investment credit property which secures the loan or
2		loans, using for this purpose the original basis of
3		such property on the date that it was placed in service
4		in the River Edge Redevelopment Zone. The subtraction
5		modification available to the taxpayer in any year
6		under this subsection shall be that portion of the
7		total interest paid by the borrower with respect to
8		such loan attributable to the eligible property as
9		calculated under the previous sentence. This
10		subparagraph (M) is exempt from the provisions of
11		Section 250;
12		(M-1) For any taxpayer that is a financial
13		organization within the meaning of Section 304(c) of
14		this Act, an amount included in such total as interest
15		income from a loan or loans made by such taxpayer to a
16		borrower, to the extent that such a loan is secured by
17		property which is eligible for the High Impact
18		Business Investment Credit. To determine the portion
19		of a loan or loans that is secured by property eligible
20		for a Section 201(h) investment credit to the
21		borrower, the entire principal amount of the loan or
22		loans between the taxpayer and the borrower should be
23		divided into the basis of the Section 201(h)
24		investment credit property which secures the loan or
25		loans, using for this purpose the original basis of
26		such property on the date that it was placed in service

HB4951 Enrolled - 57 - LRB103 38094 HLH 68226 b
1		in a federally designated Foreign Trade Zone or
2		Sub-Zone located in Illinois. No taxpayer that is
3		eligible for the deduction provided in subparagraph
4		(M) of paragraph (2) of this subsection shall be
5		eligible for the deduction provided under this
6		subparagraph (M-1). The subtraction modification
7		available to taxpayers in any year under this
8		subsection shall be that portion of the total interest
9		paid by the borrower with respect to such loan
10		attributable to the eligible property as calculated
11		under the previous sentence;
12		(N) Two times any contribution made during the
13		taxable year to a designated zone organization to the
14		extent that the contribution (i) qualifies as a
15		charitable contribution under subsection (c) of
16		Section 170 of the Internal Revenue Code and (ii)
17		must, by its terms, be used for a project approved by
18		the Department of Commerce and Economic Opportunity
19		under Section 11 of the Illinois Enterprise Zone Act
20		or under Section 10-10 of the River Edge Redevelopment
21		Zone Act. This subparagraph (N) is exempt from the
22		provisions of Section 250;
23		(O) An amount equal to: (i) 85% for taxable years
24		ending on or before December 31, 1992, or, a
25		percentage equal to the percentage allowable under
26		Section 243(a)(1) of the Internal Revenue Code of 1986

HB4951 Enrolled - 58 - LRB103 38094 HLH 68226 b
1		for taxable years ending after December 31, 1992, of
2		the amount by which dividends included in taxable
3		income and received from a corporation that is not
4		created or organized under the laws of the United
5		States or any state or political subdivision thereof,
6		including, for taxable years ending on or after
7		December 31, 1988, dividends received or deemed
8		received or paid or deemed paid under Sections 951
9		through 965 of the Internal Revenue Code, exceed the
10		amount of the modification provided under subparagraph
11		(G) of paragraph (2) of this subsection (b) which is
12		related to such dividends, and including, for taxable
13		years ending on or after December 31, 2008, dividends
14		received from a captive real estate investment trust;
15		plus (ii) 100% of the amount by which dividends,
16		included in taxable income and received, including,
17		for taxable years ending on or after December 31,
18		1988, dividends received or deemed received or paid or
19		deemed paid under Sections 951 through 964 of the
20		Internal Revenue Code and including, for taxable years
21		ending on or after December 31, 2008, dividends
22		received from a captive real estate investment trust,
23		from any such corporation specified in clause (i) that
24		would but for the provisions of Section 1504(b)(3) of
25		the Internal Revenue Code be treated as a member of the
26		affiliated group which includes the dividend

HB4951 Enrolled - 59 - LRB103 38094 HLH 68226 b
1		recipient, exceed the amount of the modification
2		provided under subparagraph (G) of paragraph (2) of
3		this subsection (b) which is related to such
4		dividends. For taxable years ending on or after June
5		30, 2021, (i) for purposes of this subparagraph, the
6		term "dividend" does not include any amount treated as
7		a dividend under Section 1248 of the Internal Revenue
8		Code, and (ii) this subparagraph shall not apply to
9		dividends for which a deduction is allowed under
10		Section 245(a) of the Internal Revenue Code. This
11		subparagraph (O) is exempt from the provisions of
12		Section 250 of this Act;
13		(P) An amount equal to any contribution made to a
14		job training project established pursuant to the Tax
15		Increment Allocation Redevelopment Act;
16		(Q) An amount equal to the amount of the deduction
17		used to compute the federal income tax credit for
18		restoration of substantial amounts held under claim of
19		right for the taxable year pursuant to Section 1341 of
20		the Internal Revenue Code;
21		(R) On and after July 20, 1999, in the case of an
22		attorney-in-fact with respect to whom an interinsurer
23		or a reciprocal insurer has made the election under
24		Section 835 of the Internal Revenue Code, 26 U.S.C.
25		835, an amount equal to the excess, if any, of the
26		amounts paid or incurred by that interinsurer or

HB4951 Enrolled - 60 - LRB103 38094 HLH 68226 b
1		reciprocal insurer in the taxable year to the
2		attorney-in-fact over the deduction allowed to that
3		interinsurer or reciprocal insurer with respect to the
4		attorney-in-fact under Section 835(b) of the Internal
5		Revenue Code for the taxable year; the provisions of
6		this subparagraph are exempt from the provisions of
7		Section 250;
8		(S) For taxable years ending on or after December
9		31, 1997, in the case of a Subchapter S corporation, an
10		amount equal to all amounts of income allocable to a
11		shareholder subject to the Personal Property Tax
12		Replacement Income Tax imposed by subsections (c) and
13		(d) of Section 201 of this Act, including amounts
14		allocable to organizations exempt from federal income
15		tax by reason of Section 501(a) of the Internal
16		Revenue Code. This subparagraph (S) is exempt from the
17		provisions of Section 250;
18		(T) For taxable years 2001 and thereafter, for the
19		taxable year in which the bonus depreciation deduction
20		is taken on the taxpayer's federal income tax return
21		under subsection (k) of Section 168 of the Internal
22		Revenue Code and for each applicable taxable year
23		thereafter, an amount equal to "x", where:
24		(1) "y" equals the amount of the depreciation
25		deduction taken for the taxable year on the
26		taxpayer's federal income tax return on property

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1		for which the bonus depreciation deduction was
2		taken in any year under subsection (k) of Section
3		168 of the Internal Revenue Code, but not
4		including the bonus depreciation deduction;
5		(2) for taxable years ending on or before
6		December 31, 2005, "x" equals "y" multiplied by 30
7		and then divided by 70 (or "y" multiplied by
8		0.429); and
9		(3) for taxable years ending after December
10		31, 2005:
11		(i) for property on which a bonus
12		depreciation deduction of 30% of the adjusted
13		basis was taken, "x" equals "y" multiplied by
14		30 and then divided by 70 (or "y" multiplied
15		by 0.429);
16		(ii) for property on which a bonus
17		depreciation deduction of 50% of the adjusted
18		basis was taken, "x" equals "y" multiplied by
19		1.0;
20		(iii) for property on which a bonus
21		depreciation deduction of 100% of the adjusted
22		basis was taken in a taxable year ending on or
23		after December 31, 2021, "x" equals the
24		depreciation deduction that would be allowed
25		on that property if the taxpayer had made the
26		election under Section 168(k)(7) of the

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1		Internal Revenue Code to not claim bonus
2		depreciation on that property; and
3		(iv) for property on which a bonus
4		depreciation deduction of a percentage other
5		than 30%, 50% or 100% of the adjusted basis
6		was taken in a taxable year ending on or after
7		December 31, 2021, "x" equals "y" multiplied
8		by 100 times the percentage bonus depreciation
9		on the property (that is, 100(bonus%)) and
10		then divided by 100 times 1 minus the
11		percentage bonus depreciation on the property
12		(that is, 100(1-bonus%)).
13		The aggregate amount deducted under this
14		subparagraph in all taxable years for any one piece of
15		property may not exceed the amount of the bonus
16		depreciation deduction taken on that property on the
17		taxpayer's federal income tax return under subsection
18		(k) of Section 168 of the Internal Revenue Code. This
19		subparagraph (T) is exempt from the provisions of
20		Section 250;
21		(U) If the taxpayer sells, transfers, abandons, or
22		otherwise disposes of property for which the taxpayer
23		was required in any taxable year to make an addition
24		modification under subparagraph (E-10), then an amount
25		equal to that addition modification.
26		If the taxpayer continues to own property through

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1		the last day of the last tax year for which a
2		subtraction is allowed with respect to that property
3		under subparagraph (T) and for which the taxpayer was
4		required in any taxable year to make an addition
5		modification under subparagraph (E-10), then an amount
6		equal to that addition modification.
7		The taxpayer is allowed to take the deduction
8		under this subparagraph only once with respect to any
9		one piece of property.
10		This subparagraph (U) is exempt from the
11		provisions of Section 250;
12		(V) The amount of: (i) any interest income (net of
13		the deductions allocable thereto) taken into account
14		for the taxable year with respect to a transaction
15		with a taxpayer that is required to make an addition
16		modification with respect to such transaction under
17		Section 203(a)(2)(D-17), 203(b)(2)(E-12),
18		203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
19		the amount of such addition modification, (ii) any
20		income from intangible property (net of the deductions
21		allocable thereto) taken into account for the taxable
22		year with respect to a transaction with a taxpayer
23		that is required to make an addition modification with
24		respect to such transaction under Section
25		203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
26		203(d)(2)(D-8), but not to exceed the amount of such

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1		addition modification, and (iii) any insurance premium
2		income (net of deductions allocable thereto) taken
3		into account for the taxable year with respect to a
4		transaction with a taxpayer that is required to make
5		an addition modification with respect to such
6		transaction under Section 203(a)(2)(D-19), Section
7		203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
8		203(d)(2)(D-9), but not to exceed the amount of that
9		addition modification. This subparagraph (V) is exempt
10		from the provisions of Section 250;
11		(W) An amount equal to the interest income taken
12		into account for the taxable year (net of the
13		deductions allocable thereto) with respect to
14		transactions with (i) a foreign person who would be a
15		member of the taxpayer's unitary business group but
16		for the fact that the foreign person's business
17		activity outside the United States is 80% or more of
18		that person's total business activity and (ii) for
19		taxable years ending on or after December 31, 2008, to
20		a person who would be a member of the same unitary
21		business group but for the fact that the person is
22		prohibited under Section 1501(a)(27) from being
23		included in the unitary business group because he or
24		she is ordinarily required to apportion business
25		income under different subsections of Section 304, but
26		not to exceed the addition modification required to be

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1		made for the same taxable year under Section
2		203(b)(2)(E-12) for interest paid, accrued, or
3		incurred, directly or indirectly, to the same person.
4		This subparagraph (W) is exempt from the provisions of
5		Section 250;
6		(X) An amount equal to the income from intangible
7		property taken into account for the taxable year (net
8		of the 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 that the foreign person's business
12		activity outside the United States is 80% or more of
13		that person's total business activity and (ii) for
14		taxable years ending on or after December 31, 2008, to
15		a person who would be a member of the same unitary
16		business group but for the fact that the person is
17		prohibited under Section 1501(a)(27) from being
18		included in the unitary business group because he or
19		she is ordinarily required to apportion business
20		income under different subsections of Section 304, but
21		not to exceed the addition modification required to be
22		made for the same taxable year under Section
23		203(b)(2)(E-13) for intangible expenses and costs
24		paid, accrued, or incurred, directly or indirectly, to
25		the same foreign person. This subparagraph (X) is
26		exempt from the provisions of Section 250;

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1		(Y) For taxable years ending on or after December
2		31, 2011, in the case of a taxpayer who was required to
3		add back any insurance premiums under Section
4		203(b)(2)(E-14), such taxpayer may elect to subtract
5		that part of a reimbursement received from the
6		insurance company equal to the amount of the expense
7		or loss (including expenses incurred by the insurance
8		company) that would have been taken into account as a
9		deduction for federal income tax purposes if the
10		expense or loss had been uninsured. If a taxpayer
11		makes the election provided for by this subparagraph
12		(Y), the insurer to which the premiums were paid must
13		add back to income the amount subtracted by the
14		taxpayer pursuant to this subparagraph (Y). This
15		subparagraph (Y) is exempt from the provisions of
16		Section 250;
17		(Z) The difference between the nondeductible
18		controlled foreign corporation dividends under Section
19		965(e)(3) of the Internal Revenue Code over the
20		taxable income of the taxpayer, computed without
21		regard to Section 965(e)(2)(A) of the Internal Revenue
22		Code, and without regard to any net operating loss
23		deduction. This subparagraph (Z) is exempt from the
24		provisions of Section 250; and
25		(AA) For taxable years beginning on or after
26		January 1, 2023, for any cannabis establishment

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1		operating in this State and licensed under the
2		Cannabis Regulation and Tax Act or any cannabis
3		cultivation center or medical cannabis dispensing
4		organization operating in this State and licensed
5		under the Compassionate Use of Medical Cannabis
6		Program Act, an amount equal to the deductions that
7		were disallowed under Section 280E of the Internal
8		Revenue Code for the taxable year and that would not be
9		added back under this subsection. The provisions of
10		this subparagraph (AA) are exempt from the provisions
11		of Section 250.
12		(3) Special rule. For purposes of paragraph (2)(A),
13		"gross income" in the case of a life insurance company,
14		for tax years ending on and after December 31, 1994, and
15		prior to December 31, 2011, shall mean the gross
16		investment income for the taxable year and, for tax years
17		ending on or after December 31, 2011, shall mean all
18		amounts included in life insurance gross income under
19		Section 803(a)(3) of the Internal Revenue Code.
20		(c) Trusts and estates.
21		(1) In general. In the case of a trust or estate, base
22		income means an amount equal to the taxpayer's taxable
23		income for the taxable year as modified by paragraph (2).
24		(2) Modifications. Subject to the provisions of
25		paragraph (3), the taxable income referred to in paragraph

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1		(1) shall be modified by adding thereto the sum of the
2		following amounts:
3		(A) An amount equal to all amounts paid or accrued
4		to the taxpayer as interest or dividends during the
5		taxable year to the extent excluded from gross income
6		in the computation of taxable income;
7		(B) In the case of (i) an estate, $600; (ii) a
8		trust which, under its governing instrument, is
9		required to distribute all of its income currently,
10		$300; and (iii) any other trust, $100, but in each such
11		case, only to the extent such amount was deducted in
12		the computation of taxable income;
13		(C) An amount equal to the amount of tax imposed by
14		this Act to the extent deducted from gross income in
15		the computation of taxable income for the taxable
16		year;
17		(D) The amount of any net operating loss deduction
18		taken in arriving at taxable income, other than a net
19		operating loss carried forward from a taxable year
20		ending prior to December 31, 1986;
21		(E) For taxable years in which a net operating
22		loss carryback or carryforward from a taxable year
23		ending prior to December 31, 1986 is an element of
24		taxable income under paragraph (1) of subsection (e)
25		or subparagraph (E) of paragraph (2) of subsection
26		(e), the amount by which addition modifications other

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1		than those provided by this subparagraph (E) exceeded
2		subtraction modifications in such taxable year, with
3		the following limitations applied in the order that
4		they are listed:
5		(i) the addition modification relating to the
6		net operating loss carried back or forward to the
7		taxable year from any taxable year ending prior to
8		December 31, 1986 shall be reduced by the amount
9		of addition modification under this subparagraph
10		(E) which related to that net operating loss and
11		which was taken into account in calculating the
12		base income of an earlier taxable year, and
13		(ii) the addition modification relating to the
14		net operating loss carried back or forward to the
15		taxable year from any taxable year ending prior to
16		December 31, 1986 shall not exceed the amount of
17		such carryback or carryforward;
18		For taxable years in which there is a net
19		operating loss carryback or carryforward from more
20		than one other taxable year ending prior to December
21		31, 1986, the addition modification provided in this
22		subparagraph (E) shall be the sum of the amounts
23		computed independently under the preceding provisions
24		of this subparagraph (E) for each such taxable year;
25		(F) For taxable years ending on or after January
26		1, 1989, an amount equal to the tax deducted pursuant

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1		to Section 164 of the Internal Revenue Code if the
2		trust or estate is claiming the same tax for purposes
3		of the Illinois foreign tax credit under Section 601
4		of this Act;
5		(G) An amount equal to the amount of the capital
6		gain deduction allowable under the Internal Revenue
7		Code, to the extent deducted from gross income in the
8		computation of taxable income;
9		(G-5) For taxable years ending after December 31,
10		1997, an amount equal to any eligible remediation
11		costs that the trust or estate deducted in computing
12		adjusted gross income and for which the trust or
13		estate claims a credit under subsection (l) of Section
14		201;
15		(G-10) For taxable years 2001 and thereafter, an
16		amount equal to the bonus depreciation deduction taken
17		on the taxpayer's federal income tax return for the
18		taxable year under subsection (k) of Section 168 of
19		the Internal Revenue Code; and
20		(G-11) If the taxpayer sells, transfers, abandons,
21		or otherwise disposes of property for which the
22		taxpayer was required in any taxable year to make an
23		addition modification under subparagraph (G-10), then
24		an amount equal to the aggregate amount of the
25		deductions taken in all taxable years under
26		subparagraph (R) with respect to that property.

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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 (R) and for which the taxpayer was
5		allowed in any taxable year to make a subtraction
6		modification under subparagraph (R), then an amount
7		equal to that subtraction modification.
8		The taxpayer is required to make the addition
9		modification under this subparagraph only once with
10		respect to any one piece of property;
11		(G-12) An amount equal to the amount otherwise
12		allowed as a deduction in computing base income for
13		interest paid, accrued, or incurred, directly or
14		indirectly, (i) for taxable years ending on or after
15		December 31, 2004, to a foreign person who would be a
16		member of the same unitary business group but for the
17		fact that the foreign person's business activity
18		outside the United States is 80% or more of the foreign
19		person's total business activity and (ii) for taxable
20		years ending on or after December 31, 2008, to a person
21		who would be a member of the same unitary business
22		group but for the fact that the person is prohibited
23		under Section 1501(a)(27) from being included in the
24		unitary business group because he or she is ordinarily
25		required to apportion business income under different
26		subsections of Section 304. The addition modification

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1		required by this subparagraph shall be reduced to the
2		extent that dividends were included in base income of
3		the unitary group for the same taxable year and
4		received by the taxpayer or by a member of the
5		taxpayer's unitary business group (including amounts
6		included in gross income pursuant to Sections 951
7		through 964 of the Internal Revenue Code and amounts
8		included in gross income under Section 78 of the
9		Internal Revenue Code) with respect to the stock of
10		the same person to whom the interest was paid,
11		accrued, or incurred.
12		This paragraph shall not apply to the following:
13		(i) an item of interest paid, accrued, or
14		incurred, directly or indirectly, to 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 interest; or
19		(ii) an item of interest paid, accrued, or
20		incurred, directly or indirectly, to a person if
21		the taxpayer can establish, based on a
22		preponderance of the evidence, both of the
23		following:
24		(a) the person, during the same taxable
25		year, paid, accrued, or incurred, the interest
26		to a person that is not a related member, and

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1		(b) the transaction giving rise to the
2		interest expense between the taxpayer and the
3		person did not have as a principal purpose the
4		avoidance of Illinois income tax, and is paid
5		pursuant to a contract or agreement that
6		reflects an arm's-length interest rate and
7		terms; or
8		(iii) the taxpayer can establish, based on
9		clear and convincing evidence, that the interest
10		paid, accrued, or incurred relates to a contract
11		or agreement entered into at arm's-length rates
12		and terms and the principal purpose for the
13		payment is not federal or Illinois tax avoidance;
14		or
15		(iv) an item of interest paid, accrued, or
16		incurred, directly or indirectly, to a person if
17		the taxpayer establishes by clear and convincing
18		evidence that the adjustments are unreasonable; or
19		if the taxpayer and the Director agree in writing
20		to the application or use of an alternative method
21		of apportionment under Section 304(f).
22		Nothing in this subsection shall preclude the
23		Director from making any other adjustment
24		otherwise allowed under Section 404 of this Act
25		for any tax year beginning after the effective
26		date of this amendment provided such adjustment is

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1		made pursuant to regulation adopted by the
2		Department and such regulations provide methods
3		and standards by which the Department will utilize
4		its authority under Section 404 of this Act;
5		(G-13) An amount equal to the amount of intangible
6		expenses and costs otherwise allowed as a deduction in
7		computing base income, and that were paid, accrued, or
8		incurred, directly or indirectly, (i) for taxable
9		years ending on or after December 31, 2004, to a
10		foreign person who would be a member of the same
11		unitary business group but for the fact that the
12		foreign person's business activity outside the United
13		States is 80% or more of that person's total business
14		activity and (ii) for taxable years ending on or after
15		December 31, 2008, to a person who would be a member of
16		the same unitary business group but for the fact that
17		the person is prohibited under Section 1501(a)(27)
18		from being included in the unitary business group
19		because he or she is ordinarily required to apportion
20		business income under different subsections of Section
21		304. The addition modification required by this
22		subparagraph shall be reduced to the extent that
23		dividends were included in base income of the unitary
24		group for the same taxable year and received by the
25		taxpayer or by a member of the taxpayer's unitary
26		business group (including amounts included in gross

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1		income pursuant to Sections 951 through 964 of the
2		Internal Revenue Code and amounts included in gross
3		income under Section 78 of the Internal Revenue Code)
4		with respect to the stock of the same person to whom
5		the intangible expenses and costs were directly or
6		indirectly paid, incurred, or accrued. The preceding
7		sentence shall not apply to the extent that the same
8		dividends caused a reduction to the addition
9		modification required under Section 203(c)(2)(G-12) of
10		this Act. As used in this subparagraph, the term
11		"intangible expenses and costs" includes: (1)
12		expenses, losses, and costs for or related to the
13		direct or indirect acquisition, use, maintenance or
14		management, ownership, sale, exchange, or any other
15		disposition of intangible property; (2) losses
16		incurred, directly or indirectly, from factoring
17		transactions or discounting transactions; (3) royalty,
18		patent, technical, and copyright fees; (4) licensing
19		fees; and (5) other similar expenses and costs. For
20		purposes of this subparagraph, "intangible property"
21		includes patents, patent applications, trade names,
22		trademarks, service marks, copyrights, mask works,
23		trade secrets, and similar types of intangible assets.
24		This paragraph shall not apply to the following:
25		(i) any item of intangible expenses or costs
26		paid, accrued, or incurred, directly or

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1		indirectly, from a transaction with 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 item; or
6		(ii) any item of intangible expense or cost
7		paid, accrued, or incurred, directly or
8		indirectly, if the taxpayer can establish, based
9		on a preponderance of the evidence, both of the
10		following:
11		(a) the person during the same taxable
12		year paid, accrued, or incurred, the
13		intangible expense or cost to a person that is
14		not a related member, and
15		(b) the transaction giving rise to the
16		intangible expense or cost between the
17		taxpayer and the person did not have as a
18		principal purpose the avoidance of Illinois
19		income tax, and is paid pursuant to a contract
20		or agreement that reflects arm's-length terms;
21		or
22		(iii) any item of intangible expense or cost
23		paid, accrued, or incurred, directly or
24		indirectly, from a transaction with a person if
25		the taxpayer establishes by clear and convincing
26		evidence, that the adjustments are unreasonable;

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1		or if the taxpayer and the Director agree in
2		writing to the application or use of an
3		alternative method of apportionment under Section
4		304(f);
5		Nothing in this subsection shall preclude the
6		Director from making any other adjustment
7		otherwise allowed under Section 404 of this Act
8		for any tax year beginning after the effective
9		date of this amendment provided such adjustment is
10		made pursuant to regulation adopted by the
11		Department and such regulations provide methods
12		and standards by which the Department will utilize
13		its authority under Section 404 of this Act;
14		(G-14) For taxable years ending on or after
15		December 31, 2008, an amount equal to the amount of
16		insurance premium expenses and costs otherwise allowed
17		as a deduction in computing base income, and that were
18		paid, accrued, or incurred, directly or indirectly, to
19		a person who would be a member of the same unitary
20		business group but for the fact that the person is
21		prohibited under Section 1501(a)(27) from being
22		included in the unitary business group because he or
23		she is ordinarily required to apportion business
24		income under different subsections of Section 304. The
25		addition modification required by this subparagraph
26		shall be reduced to the extent that dividends were

HB4951 Enrolled - 78 - LRB103 38094 HLH 68226 b
1		included in base income of the unitary group for the
2		same taxable year and received by the taxpayer or by a
3		member of the taxpayer's unitary business group
4		(including amounts included in gross income under
5		Sections 951 through 964 of the Internal Revenue Code
6		and amounts included in gross income under Section 78
7		of the Internal Revenue Code) with respect to the
8		stock of the same person to whom the premiums and costs
9		were directly or indirectly paid, incurred, or
10		accrued. The preceding sentence does not apply to the
11		extent that the same dividends caused a reduction to
12		the addition modification required under Section
13		203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
14		Act;
15		(G-15) An amount equal to the credit allowable to
16		the taxpayer under Section 218(a) of this Act,
17		determined without regard to Section 218(c) of this
18		Act;
19		(G-16) For taxable years ending on or after
20		December 31, 2017, an amount equal to the deduction
21		allowed under Section 199 of the Internal Revenue Code
22		for the taxable year;
23		and by deducting from the total so obtained the sum of the
24		following amounts:
25		(H) An amount equal to all amounts included in
26		such total pursuant to the provisions of Sections

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1		402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
2		of the Internal Revenue Code or included in such total
3		as distributions under the provisions of any
4		retirement or disability plan for employees of any
5		governmental agency or unit, or retirement payments to
6		retired partners, which payments are excluded in
7		computing net earnings from self employment by Section
8		1402 of the Internal Revenue Code and regulations
9		adopted pursuant thereto;
10		(I) The valuation limitation amount;
11		(J) 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		(K) An amount equal to all amounts included in
15		taxable income as modified by subparagraphs (A), (B),
16		(C), (D), (E), (F) and (G) which are exempt from
17		taxation by this State either by reason of its
18		statutes or Constitution or by reason of the
19		Constitution, treaties or statutes of the United
20		States; provided that, in the case of any statute of
21		this State that exempts income derived from bonds or
22		other obligations from the tax imposed under this Act,
23		the amount exempted shall be the interest net of bond
24		premium amortization;
25		(L) With the exception of any amounts subtracted
26		under subparagraph (K), an amount equal to the sum of

HB4951 Enrolled - 80 - LRB103 38094 HLH 68226 b
1		all amounts disallowed as deductions by (i) Sections
2		171(a)(2) and 265(a)(2) of the Internal Revenue Code,
3		and all amounts of expenses allocable to interest and
4		disallowed as deductions by Section 265(a)(1) of the
5		Internal Revenue Code; and (ii) for taxable years
6		ending on or after August 13, 1999, Sections
7		171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
8		Internal Revenue Code, plus, (iii) for taxable years
9		ending on or after December 31, 2011, Section
10		45G(e)(3) of the Internal Revenue Code and, for
11		taxable years ending on or after December 31, 2008,
12		any amount included in gross income under Section 87
13		of the Internal Revenue Code; the provisions of this
14		subparagraph are exempt from the provisions of Section
15		250;
16		(M) An amount equal to those dividends included in
17		such total which were paid by a corporation which
18		conducts business operations in a River Edge
19		Redevelopment Zone or zones created under the River
20		Edge Redevelopment Zone Act and conducts substantially
21		all of its operations in a River Edge Redevelopment
22		Zone or zones. This subparagraph (M) is exempt from
23		the provisions of Section 250;
24		(N) An amount equal to any contribution made to a
25		job training project established pursuant to the Tax
26		Increment Allocation Redevelopment Act;

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1		(O) An amount equal to those dividends included in
2		such total that were paid by a corporation that
3		conducts business operations in a federally designated
4		Foreign Trade Zone or Sub-Zone and that is designated
5		a High Impact Business located in Illinois; provided
6		that dividends eligible for the deduction provided in
7		subparagraph (M) of paragraph (2) of this subsection
8		shall not be eligible for the deduction provided under
9		this subparagraph (O);
10		(P) An amount equal to the amount of the deduction
11		used to compute the federal income tax credit for
12		restoration of substantial amounts held under claim of
13		right for the taxable year pursuant to Section 1341 of
14		the Internal Revenue Code;
15		(Q) For taxable year 1999 and thereafter, an
16		amount equal to the amount of any (i) distributions,
17		to the extent includible in gross income for federal
18		income tax purposes, made to the taxpayer because of
19		his or her status as a victim of persecution for racial
20		or religious reasons by Nazi Germany or any other Axis
21		regime or as an heir of the victim and (ii) items of
22		income, to the extent includible in gross income for
23		federal income tax purposes, attributable to, derived
24		from or in any way related to assets stolen from,
25		hidden from, or otherwise lost to a victim of
26		persecution for racial or religious reasons by Nazi

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1		Germany or any other Axis regime immediately prior to,
2		during, and immediately after World War II, including,
3		but not limited to, interest on the proceeds
4		receivable as insurance under policies issued to a
5		victim of persecution for racial or religious reasons
6		by Nazi Germany or any other Axis regime by European
7		insurance companies immediately prior to and during
8		World War II; provided, however, this subtraction from
9		federal adjusted gross income does not apply to assets
10		acquired with such assets or with the proceeds from
11		the sale of such assets; provided, further, this
12		paragraph shall only apply to a taxpayer who was the
13		first recipient of such assets after their recovery
14		and who is a victim of persecution for racial or
15		religious reasons by Nazi Germany or any other Axis
16		regime or as an heir of the victim. The amount of and
17		the eligibility for any public assistance, benefit, or
18		similar entitlement is not affected by the inclusion
19		of items (i) and (ii) of this paragraph in gross income
20		for federal income tax purposes. This paragraph is
21		exempt from the provisions of Section 250;
22		(R) For taxable years 2001 and thereafter, for the
23		taxable year in which the bonus depreciation deduction
24		is taken on the taxpayer's federal income tax return
25		under subsection (k) of Section 168 of the Internal
26		Revenue Code and for each applicable taxable year

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1		thereafter, an amount equal to "x", where:
2		(1) "y" equals the amount of the depreciation
3		deduction taken for the taxable year on the
4		taxpayer's federal income tax return on property
5		for which the bonus depreciation deduction was
6		taken in any year under subsection (k) of Section
7		168 of the Internal Revenue Code, but not
8		including the bonus depreciation deduction;
9		(2) for taxable years ending on or before
10		December 31, 2005, "x" equals "y" multiplied by 30
11		and then divided by 70 (or "y" multiplied by
12		0.429); and
13		(3) for taxable years ending after December
14		31, 2005:
15		(i) for property on which a bonus
16		depreciation deduction of 30% of the adjusted
17		basis was taken, "x" equals "y" multiplied by
18		30 and then divided by 70 (or "y" multiplied
19		by 0.429);
20		(ii) for property on which a bonus
21		depreciation deduction of 50% of the adjusted
22		basis was taken, "x" equals "y" multiplied by
23		1.0;
24		(iii) for property on which a bonus
25		depreciation deduction of 100% of the adjusted
26		basis was taken in a taxable year ending on or

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1		after December 31, 2021, "x" equals the
2		depreciation deduction that would be allowed
3		on that property if the taxpayer had made the
4		election under Section 168(k)(7) of the
5		Internal Revenue Code to not claim bonus
6		depreciation on that property; and
7		(iv) for property on which a bonus
8		depreciation deduction of a percentage other
9		than 30%, 50% or 100% of the adjusted basis
10		was taken in a taxable year ending on or after
11		December 31, 2021, "x" equals "y" multiplied
12		by 100 times the percentage bonus depreciation
13		on the property (that is, 100(bonus%)) and
14		then divided by 100 times 1 minus the
15		percentage bonus depreciation on the property
16		(that is, 100(1-bonus%)).
17		The aggregate amount deducted under this
18		subparagraph in all taxable years for any one piece of
19		property may not exceed the amount of the bonus
20		depreciation deduction taken on that property on the
21		taxpayer's federal income tax return under subsection
22		(k) of Section 168 of the Internal Revenue Code. This
23		subparagraph (R) is exempt from the provisions of
24		Section 250;
25		(S) If the taxpayer sells, transfers, abandons, or
26		otherwise disposes of property for which the taxpayer

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1		was required in any taxable year to make an addition
2		modification under subparagraph (G-10), then an amount
3		equal to that addition modification.
4		If the taxpayer continues to own property through
5		the last day of the last tax year for which a
6		subtraction is allowed with respect to that property
7		under subparagraph (R) and for which the taxpayer was
8		required in any taxable year to make an addition
9		modification under subparagraph (G-10), then an amount
10		equal to that addition modification.
11		The taxpayer is allowed to take the deduction
12		under this subparagraph only once with respect to any
13		one piece of property.
14		This subparagraph (S) is exempt from the
15		provisions of Section 250;
16		(T) 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 such 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

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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 such
5		addition modification. This subparagraph (T) is exempt
6		from the provisions of Section 250;
7		(U) 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 the foreign person's business activity
13		outside the United States is 80% or more of that
14		person's total business activity and (ii) for taxable
15		years ending on or after December 31, 2008, to a person
16		who would be a member of the same unitary business
17		group but for the fact that the person is prohibited
18		under Section 1501(a)(27) from being included in the
19		unitary business group because he or she is ordinarily
20		required to apportion business income under different
21		subsections of Section 304, but not to exceed the
22		addition modification required to be made for the same
23		taxable year under Section 203(c)(2)(G-12) for
24		interest paid, accrued, or incurred, directly or
25		indirectly, to the same person. This subparagraph (U)
26		is exempt from the provisions of Section 250;

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1		(V) An amount equal to the income from intangible
2		property taken into account for the taxable year (net
3		of the deductions allocable thereto) with respect to
4		transactions with (i) a foreign person who would be a
5		member of the taxpayer's unitary business group but
6		for the fact that the foreign person's business
7		activity outside the United States is 80% or more of
8		that person's total business activity and (ii) for
9		taxable years ending on or after December 31, 2008, to
10		a person who would be a member of the same unitary
11		business group but for the fact that the person is
12		prohibited under Section 1501(a)(27) from being
13		included in the unitary business group because he or
14		she is ordinarily required to apportion business
15		income under different subsections of Section 304, but
16		not to exceed the addition modification required to be
17		made for the same taxable year under Section
18		203(c)(2)(G-13) for intangible expenses and costs
19		paid, accrued, or incurred, directly or indirectly, to
20		the same foreign person. This subparagraph (V) is
21		exempt from the provisions of Section 250;
22		(W) in the case of an estate, an amount equal to
23		all amounts included in such total pursuant to the
24		provisions of Section 111 of the Internal Revenue Code
25		as a recovery of items previously deducted by the
26		decedent from adjusted gross income in the computation

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1		of taxable income. This subparagraph (W) is exempt
2		from Section 250;
3		(X) an amount equal to the refund included in such
4		total of any tax deducted for federal income tax
5		purposes, to the extent that deduction was added back
6		under subparagraph (F). This subparagraph (X) is
7		exempt from the provisions of Section 250;
8		(Y) For taxable years ending on or after December
9		31, 2011, in the case of a taxpayer who was required to
10		add back any insurance premiums under Section
11		203(c)(2)(G-14), such taxpayer may elect to subtract
12		that part of a reimbursement received from the
13		insurance company equal to the amount of the expense
14		or loss (including expenses incurred by the insurance
15		company) that would have been taken into account as a
16		deduction for federal income tax purposes if the
17		expense or loss had been uninsured. If a taxpayer
18		makes the election provided for by this subparagraph
19		(Y), the insurer to which the premiums were paid must
20		add back to income the amount subtracted by the
21		taxpayer pursuant to this subparagraph (Y). This
22		subparagraph (Y) is exempt from the provisions of
23		Section 250;
24		(Z) For taxable years beginning after December 31,
25		2018 and before January 1, 2026, the amount of excess
26		business loss of the taxpayer disallowed as a

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1		deduction by Section 461(l)(1)(B) of the Internal
2		Revenue Code; and
3		(AA) For taxable years beginning on or after
4		January 1, 2023, for any cannabis establishment
5		operating in this State and licensed under the
6		Cannabis Regulation and Tax Act or any cannabis
7		cultivation center or medical cannabis dispensing
8		organization operating in this State and licensed
9		under the Compassionate Use of Medical Cannabis
10		Program Act, an amount equal to the deductions that
11		were disallowed under Section 280E of the Internal
12		Revenue Code for the taxable year and that would not be
13		added back under this subsection. The provisions of
14		this subparagraph (AA) are exempt from the provisions
15		of Section 250.
16		(3) Limitation. The amount of any modification
17		otherwise required under this subsection shall, under
18		regulations prescribed by the Department, be adjusted by
19		any amounts included therein which were properly paid,
20		credited, or required to be distributed, or permanently
21		set aside for charitable purposes pursuant to Internal
22		Revenue Code Section 642(c) during the taxable year.
23		(d) Partnerships.
24		(1) In general. In the case of a partnership, base
25		income means an amount equal to the taxpayer's taxable

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1		income for the taxable year as modified by paragraph (2).
2		(2) Modifications. The taxable income referred to in
3		paragraph (1) shall be modified by adding thereto the sum
4		of the following amounts:
5		(A) An amount equal to all amounts paid or accrued
6		to the taxpayer as interest or dividends during the
7		taxable year to the extent excluded from gross income
8		in the computation of taxable income;
9		(B) An amount equal to the amount of tax imposed by
10		this Act to the extent deducted from gross income for
11		the taxable year;
12		(C) The amount of deductions allowed to the
13		partnership pursuant to Section 707 (c) of the
14		Internal Revenue Code in calculating its taxable
15		income;
16		(D) An amount equal to the amount of the capital
17		gain deduction allowable under the Internal Revenue
18		Code, to the extent deducted from gross income in the
19		computation of taxable income;
20		(D-5) 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		(D-6) If the taxpayer sells, transfers, abandons,
26		or otherwise disposes of property for which the

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1		taxpayer was required in any taxable year to make an
2		addition modification under subparagraph (D-5), then
3		an amount equal to the aggregate amount of the
4		deductions taken in all taxable years under
5		subparagraph (O) 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 (O) and for which the taxpayer was
10		allowed in any taxable year to make a subtraction
11		modification under subparagraph (O), 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		(D-7) 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

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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.
17		This paragraph shall not apply to the following:
18		(i) an item of interest paid, accrued, or
19		incurred, directly or indirectly, to 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 interest; or
24		(ii) an item of interest paid, accrued, or
25		incurred, directly or indirectly, to a person if
26		the taxpayer can establish, based on a

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1		preponderance of the evidence, both of the
2		following:
3		(a) the person, during the same taxable
4		year, paid, accrued, or incurred, the interest
5		to a person that is not a related member, and
6		(b) the transaction giving rise to the
7		interest expense between the taxpayer and the
8		person did not have as a principal purpose the
9		avoidance of Illinois income tax, and is paid
10		pursuant to a contract or agreement that
11		reflects an arm's-length interest rate and
12		terms; or
13		(iii) the taxpayer can establish, based on
14		clear and convincing evidence, that the interest
15		paid, accrued, or incurred relates to a contract
16		or agreement entered into at arm's-length rates
17		and terms and the principal purpose for the
18		payment is not federal or Illinois tax avoidance;
19		or
20		(iv) an item of interest paid, accrued, or
21		incurred, directly or indirectly, to a person if
22		the taxpayer establishes by clear and convincing
23		evidence that the adjustments are unreasonable; or
24		if the taxpayer and the Director agree in writing
25		to the application or use of an alternative method
26		of apportionment under Section 304(f).

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1		Nothing in this subsection shall preclude the
2		Director from making any other adjustment
3		otherwise allowed under Section 404 of this Act
4		for any tax year beginning after the effective
5		date of this amendment provided such adjustment is
6		made pursuant to regulation adopted by the
7		Department and such regulations provide methods
8		and standards by which the Department will utilize
9		its authority under Section 404 of this Act; and
10		(D-8) An amount equal to the amount of intangible
11		expenses and costs otherwise allowed as a deduction in
12		computing base income, and that were paid, accrued, or
13		incurred, directly or indirectly, (i) for taxable
14		years ending on or after December 31, 2004, to a
15		foreign person who would be a member of the same
16		unitary business group but for the fact that the
17		foreign person's business activity outside the United
18		States is 80% or more of that person's total business
19		activity and (ii) for taxable years ending on or after
20		December 31, 2008, to a person who would be a member of
21		the same unitary business group but for the fact that
22		the person is prohibited under Section 1501(a)(27)
23		from being included in the unitary business group
24		because he or she is ordinarily required to apportion
25		business income under different subsections of Section
26		304. The addition modification required by this

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1		subparagraph shall be reduced to the extent that
2		dividends were included in base income of the unitary
3		group for the same taxable year and received by the
4		taxpayer or by a member of the taxpayer's unitary
5		business group (including amounts included in gross
6		income pursuant to Sections 951 through 964 of the
7		Internal Revenue Code and amounts included in gross
8		income under Section 78 of the Internal Revenue Code)
9		with respect to the stock of the same person to whom
10		the intangible expenses and costs were directly or
11		indirectly paid, incurred or accrued. The preceding
12		sentence shall not apply to the extent that the same
13		dividends caused a reduction to the addition
14		modification required under Section 203(d)(2)(D-7) of
15		this Act. As used in this subparagraph, the term
16		"intangible expenses and costs" includes (1) expenses,
17		losses, and costs for, or related to, the direct or
18		indirect acquisition, use, maintenance or management,
19		ownership, sale, exchange, or any other disposition of
20		intangible property; (2) losses incurred, directly or
21		indirectly, from factoring transactions or discounting
22		transactions; (3) royalty, patent, technical, and
23		copyright fees; (4) licensing fees; and (5) other
24		similar expenses and costs. For purposes of this
25		subparagraph, "intangible property" includes patents,
26		patent applications, trade names, trademarks, service

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1		marks, copyrights, mask works, trade secrets, and
2		similar types of intangible assets;
3		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

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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		Nothing in this subsection shall preclude the
11		Director from making any other adjustment
12		otherwise allowed under Section 404 of this Act
13		for any tax year beginning after the effective
14		date of this amendment provided such adjustment is
15		made pursuant to regulation adopted by the
16		Department and such regulations provide methods
17		and standards by which the Department will utilize
18		its authority under Section 404 of this Act;
19		(D-9) For taxable years ending on or after
20		December 31, 2008, an amount equal to the amount of
21		insurance premium expenses and costs otherwise allowed
22		as a deduction in computing base income, and that were
23		paid, accrued, or incurred, directly or indirectly, to
24		a person who would be a member of the same unitary
25		business group but for the fact that the person is
26		prohibited under Section 1501(a)(27) from being

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1		included in the unitary business group because he or
2		she is ordinarily required to apportion business
3		income under different subsections of Section 304. The
4		addition modification required by this subparagraph
5		shall be reduced to the extent that dividends were
6		included in base income of the unitary group for the
7		same taxable year and received by the taxpayer or by a
8		member of the taxpayer's unitary business group
9		(including amounts included in gross income under
10		Sections 951 through 964 of the Internal Revenue Code
11		and amounts included in gross income under Section 78
12		of the Internal Revenue Code) with respect to the
13		stock of the same person to whom the premiums and costs
14		were directly or indirectly paid, incurred, or
15		accrued. The preceding sentence does not apply to the
16		extent that the same dividends caused a reduction to
17		the addition modification required under Section
18		203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
19		(D-10) An amount equal to the credit allowable to
20		the taxpayer under Section 218(a) of this Act,
21		determined without regard to Section 218(c) of this
22		Act;
23		(D-11) For taxable years ending on or after
24		December 31, 2017, an amount equal to the deduction
25		allowed under Section 199 of the Internal Revenue Code
26		for the taxable year;

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1		and by deducting from the total so obtained the following
2		amounts:
3		(E) The valuation limitation amount;
4		(F) An amount equal to the amount of any tax
5		imposed by this Act which was refunded to the taxpayer
6		and included in such total for the taxable year;
7		(G) An amount equal to all amounts included in
8		taxable income as modified by subparagraphs (A), (B),
9		(C) and (D) which are exempt from taxation by this
10		State either by reason of its statutes or Constitution
11		or by reason of the Constitution, treaties or statutes
12		of the United States; provided that, in the case of any
13		statute of this State that exempts income derived from
14		bonds or other obligations from the tax imposed under
15		this Act, the amount exempted shall be the interest
16		net of bond premium amortization;
17		(H) Any income of the partnership which
18		constitutes personal service income as defined in
19		Section 1348(b)(1) of the Internal Revenue Code (as in
20		effect December 31, 1981) or a reasonable allowance
21		for compensation paid or accrued for services rendered
22		by partners to the partnership, whichever is greater;
23		this subparagraph (H) is exempt from the provisions of
24		Section 250;
25		(I) An amount equal to all amounts of income
26		distributable to an entity subject to the Personal

HB4951 Enrolled - 100 - LRB103 38094 HLH 68226 b
1		Property Tax Replacement Income Tax imposed by
2		subsections (c) and (d) of Section 201 of this Act
3		including amounts distributable to organizations
4		exempt from federal income tax by reason of Section
5		501(a) of the Internal Revenue Code; this subparagraph
6		(I) is exempt from the provisions of Section 250;
7		(J) With the exception of any amounts subtracted
8		under subparagraph (G), an amount equal to the sum of
9		all amounts disallowed as deductions by (i) Sections
10		171(a)(2) and 265(a)(2) of the Internal Revenue Code,
11		and all amounts of expenses allocable to interest and
12		disallowed as deductions by Section 265(a)(1) of the
13		Internal Revenue Code; and (ii) for taxable years
14		ending on or after August 13, 1999, Sections
15		171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
16		Internal Revenue Code, plus, (iii) for taxable years
17		ending on or after December 31, 2011, Section
18		45G(e)(3) of the Internal Revenue Code and, for
19		taxable years ending on or after December 31, 2008,
20		any amount included in gross income under Section 87
21		of the Internal Revenue Code; the provisions of this
22		subparagraph are exempt from the provisions of Section
23		250;
24		(K) An amount equal to those dividends included in
25		such total which were paid by a corporation which
26		conducts business operations in a River Edge

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1		Redevelopment Zone or zones created under the River
2		Edge Redevelopment Zone Act and conducts substantially
3		all of its operations from a River Edge Redevelopment
4		Zone or zones. This subparagraph (K) is exempt from
5		the provisions of Section 250;
6		(L) An amount equal to any contribution made to a
7		job training project established pursuant to the Real
8		Property Tax Increment Allocation Redevelopment Act;
9		(M) An amount equal to those dividends included in
10		such total that were paid by a corporation that
11		conducts business operations in a federally designated
12		Foreign Trade Zone or Sub-Zone and that is designated
13		a High Impact Business located in Illinois; provided
14		that dividends eligible for the deduction provided in
15		subparagraph (K) of paragraph (2) of this subsection
16		shall not be eligible for the deduction provided under
17		this subparagraph (M);
18		(N) An amount equal to the amount of the deduction
19		used to compute the federal income tax credit for
20		restoration of substantial amounts held under claim of
21		right for the taxable year pursuant to Section 1341 of
22		the Internal Revenue Code;
23		(O) For taxable years 2001 and thereafter, for the
24		taxable year in which the bonus depreciation deduction
25		is taken on the taxpayer's federal income tax return
26		under subsection (k) of Section 168 of the Internal

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1		Revenue Code and for each applicable taxable year
2		thereafter, an amount equal to "x", where:
3		(1) "y" equals the amount of the depreciation
4		deduction taken for the taxable year on the
5		taxpayer's federal income tax return on property
6		for which the bonus depreciation deduction was
7		taken in any year under subsection (k) of Section
8		168 of the Internal Revenue Code, but not
9		including the bonus depreciation deduction;
10		(2) for taxable years ending on or before
11		December 31, 2005, "x" equals "y" multiplied by 30
12		and then divided by 70 (or "y" multiplied by
13		0.429); and
14		(3) for taxable years ending after December
15		31, 2005:
16		(i) for property on which a bonus
17		depreciation deduction of 30% of the adjusted
18		basis was taken, "x" equals "y" multiplied by
19		30 and then divided by 70 (or "y" multiplied
20		by 0.429);
21		(ii) for property on which a bonus
22		depreciation deduction of 50% of the adjusted
23		basis was taken, "x" equals "y" multiplied by
24		1.0;
25		(iii) for property on which a bonus
26		depreciation deduction of 100% of the adjusted

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1		basis was taken in a taxable year ending on or
2		after December 31, 2021, "x" equals the
3		depreciation deduction that would be allowed
4		on that property if the taxpayer had made the
5		election under Section 168(k)(7) of the
6		Internal Revenue Code to not claim bonus
7		depreciation on that property; and
8		(iv) for property on which a bonus
9		depreciation deduction of a percentage other
10		than 30%, 50% or 100% of the adjusted basis
11		was taken in a taxable year ending on or after
12		December 31, 2021, "x" equals "y" multiplied
13		by 100 times the percentage bonus depreciation
14		on the property (that is, 100(bonus%)) and
15		then divided by 100 times 1 minus the
16		percentage bonus depreciation on the property
17		(that is, 100(1-bonus%)).
18		The aggregate amount deducted under this
19		subparagraph in all taxable years for any one piece of
20		property may not exceed the amount of the bonus
21		depreciation deduction taken on that property on the
22		taxpayer's federal income tax return under subsection
23		(k) of Section 168 of the Internal Revenue Code. This
24		subparagraph (O) is exempt from the provisions of
25		Section 250;
26		(P) If the taxpayer sells, transfers, abandons, or

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1		otherwise disposes of property for which the taxpayer
2		was required in any taxable year to make an addition
3		modification under subparagraph (D-5), then an amount
4		equal to that addition modification.
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		required in any taxable year to make an addition
10		modification under subparagraph (D-5), then an amount
11		equal to that addition modification.
12		The taxpayer is allowed to take the deduction
13		under this subparagraph only once with respect to any
14		one piece of property.
15		This subparagraph (P) is exempt from the
16		provisions of Section 250;
17		(Q) The amount of (i) any interest income (net of
18		the deductions allocable thereto) taken into account
19		for the taxable year with respect to a transaction
20		with a taxpayer that is required to make an addition
21		modification with respect to such transaction under
22		Section 203(a)(2)(D-17), 203(b)(2)(E-12),
23		203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
24		the amount of such addition modification and (ii) any
25		income from intangible property (net of the deductions
26		allocable thereto) taken into account for the taxable

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1		year with respect to a transaction with a taxpayer
2		that is required to make an addition modification with
3		respect to such transaction under Section
4		203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
5		203(d)(2)(D-8), but not to exceed the amount of such
6		addition modification. This subparagraph (Q) is exempt
7		from Section 250;
8		(R) An amount equal to the interest income taken
9		into account for the taxable year (net of the
10		deductions allocable thereto) with respect to
11		transactions with (i) a foreign person who would be a
12		member of the taxpayer's unitary business group but
13		for the fact that the foreign person's business
14		activity outside the United States is 80% or more of
15		that person's total business activity and (ii) for
16		taxable years ending on or after December 31, 2008, to
17		a person who would be a member of the same unitary
18		business group but for the fact that the person is
19		prohibited under Section 1501(a)(27) from being
20		included in the unitary business group because he or
21		she is ordinarily required to apportion business
22		income under different subsections of Section 304, but
23		not to exceed the addition modification required to be
24		made for the same taxable year under Section
25		203(d)(2)(D-7) for interest paid, accrued, or
26		incurred, directly or indirectly, to the same person.

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1		This subparagraph (R) is exempt from Section 250;
2		(S) 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(d)(2)(D-8) for intangible expenses and costs paid,
20		accrued, or incurred, directly or indirectly, to the
21		same person. This subparagraph (S) is exempt from
22		Section 250;
23		(T) For taxable years ending on or after December
24		31, 2011, in the case of a taxpayer who was required to
25		add back any insurance premiums under Section
26		203(d)(2)(D-9), such taxpayer may elect to subtract

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1		that part of a reimbursement received from the
2		insurance company equal to the amount of the expense
3		or loss (including expenses incurred by the insurance
4		company) that would have been taken into account as a
5		deduction for federal income tax purposes if the
6		expense or loss had been uninsured. If a taxpayer
7		makes the election provided for by this subparagraph
8		(T), the insurer to which the premiums were paid must
9		add back to income the amount subtracted by the
10		taxpayer pursuant to this subparagraph (T). This
11		subparagraph (T) is exempt from the provisions of
12		Section 250; and
13		(U) For taxable years beginning on or after
14		January 1, 2023, for any cannabis establishment
15		operating in this State and licensed under the
16		Cannabis Regulation and Tax Act or any cannabis
17		cultivation center or medical cannabis dispensing
18		organization operating in this State and licensed
19		under the Compassionate Use of Medical Cannabis
20		Program Act, an amount equal to the deductions that
21		were disallowed under Section 280E of the Internal
22		Revenue Code for the taxable year and that would not be
23		added back under this subsection. The provisions of
24		this subparagraph (U) are exempt from the provisions
25		of Section 250.

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1		(e) Gross income; adjusted gross income; taxable income.
2		(1) In general. Subject to the provisions of paragraph
3		(2) and subsection (b)(3), for purposes of this Section
4		and Section 803(e), a taxpayer's gross income, adjusted
5		gross income, or taxable income for the taxable year shall
6		mean the amount of gross income, adjusted gross income or
7		taxable income properly reportable for federal income tax
8		purposes for the taxable year under the provisions of the
9		Internal Revenue Code. Taxable income may be less than
10		zero. However, for taxable years ending on or after
11		December 31, 1986, net operating loss carryforwards from
12		taxable years ending prior to December 31, 1986, may not
13		exceed the sum of federal taxable income for the taxable
14		year before net operating loss deduction, plus the excess
15		of addition modifications over subtraction modifications
16		for the taxable year. For taxable years ending prior to
17		December 31, 1986, taxable income may never be an amount
18		in excess of the net operating loss for the taxable year as
19		defined in subsections (c) and (d) of Section 172 of the
20		Internal Revenue Code, provided that when taxable income
21		of a corporation (other than a Subchapter S corporation),
22		trust, or estate is less than zero and addition
23		modifications, other than those provided by subparagraph
24		(E) of paragraph (2) of subsection (b) for corporations or
25		subparagraph (E) of paragraph (2) of subsection (c) for
26		trusts and estates, exceed subtraction modifications, an

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1		addition modification must be made under those
2		subparagraphs for any other taxable year to which the
3		taxable income less than zero (net operating loss) is
4		applied under Section 172 of the Internal Revenue Code or
5		under subparagraph (E) of paragraph (2) of this subsection
6		(e) applied in conjunction with Section 172 of the
7		Internal Revenue Code.
8		(2) Special rule. For purposes of paragraph (1) of
9		this subsection, the taxable income properly reportable
10		for federal income tax purposes shall mean:
11		(A) Certain life insurance companies. In the case
12		of a life insurance company subject to the tax imposed
13		by Section 801 of the Internal Revenue Code, life
14		insurance company taxable income, plus the amount of
15		distribution from pre-1984 policyholder surplus
16		accounts as calculated under Section 815a of the
17		Internal Revenue Code;
18		(B) Certain other insurance companies. In the case
19		of mutual insurance companies subject to the tax
20		imposed by Section 831 of the Internal Revenue Code,
21		insurance company taxable income;
22		(C) Regulated investment companies. In the case of
23		a regulated investment company subject to the tax
24		imposed by Section 852 of the Internal Revenue Code,
25		investment company taxable income;
26		(D) Real estate investment trusts. In the case of

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1		a real estate investment trust subject to the tax
2		imposed by Section 857 of the Internal Revenue Code,
3		real estate investment trust taxable income;
4		(E) Consolidated corporations. In the case of a
5		corporation which is a member of an affiliated group
6		of corporations filing a consolidated income tax
7		return for the taxable year for federal income tax
8		purposes, taxable income determined as if such
9		corporation had filed a separate return for federal
10		income tax purposes for the taxable year and each
11		preceding taxable year for which it was a member of an
12		affiliated group. For purposes of this subparagraph,
13		the taxpayer's separate taxable income shall be
14		determined as if the election provided by Section
15		243(b)(2) of the Internal Revenue Code had been in
16		effect for all such years;
17		(F) Cooperatives. In the case of a cooperative
18		corporation or association, the taxable income of such
19		organization determined in accordance with the
20		provisions of Section 1381 through 1388 of the
21		Internal Revenue Code, but without regard to the
22		prohibition against offsetting losses from patronage
23		activities against income from nonpatronage
24		activities; except that a cooperative corporation or
25		association may make an election to follow its federal
26		income tax treatment of patronage losses and

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1		nonpatronage losses. In the event such election is
2		made, such losses shall be computed and carried over
3		in a manner consistent with subsection (a) of Section
4		207 of this Act and apportioned by the apportionment
5		factor reported by the cooperative on its Illinois
6		income tax return filed for the taxable year in which
7		the losses are incurred. The election shall be
8		effective for all taxable years with original returns
9		due on or after the date of the election. In addition,
10		the cooperative may file an amended return or returns,
11		as allowed under this Act, to provide that the
12		election shall be effective for losses incurred or
13		carried forward for taxable years occurring prior to
14		the date of the election. Once made, the election may
15		only be revoked upon approval of the Director. The
16		Department shall adopt rules setting forth
17		requirements for documenting the elections and any
18		resulting Illinois net loss and the standards to be
19		used by the Director in evaluating requests to revoke
20		elections. Public Act 96-932 is declaratory of
21		existing law;
22		(G) Subchapter S corporations. In the case of: (i)
23		a Subchapter S corporation for which there is in
24		effect an election for the taxable year under Section
25		1362 of the Internal Revenue Code, the taxable income
26		of such corporation determined in accordance with

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1		Section 1363(b) of the Internal Revenue Code, except
2		that taxable income shall take into account those
3		items which are required by Section 1363(b)(1) of the
4		Internal Revenue Code to be separately stated; and
5		(ii) a Subchapter S corporation for which there is in
6		effect a federal election to opt out of the provisions
7		of the Subchapter S Revision Act of 1982 and have
8		applied instead the prior federal Subchapter S rules
9		as in effect on July 1, 1982, the taxable income of
10		such corporation determined in accordance with the
11		federal Subchapter S rules as in effect on July 1,
12		1982; and
13		(H) Partnerships. In the case of a partnership,
14		taxable income determined in accordance with Section
15		703 of the Internal Revenue Code, except that taxable
16		income shall take into account those items which are
17		required by Section 703(a)(1) to be separately stated
18		but which would be taken into account by an individual
19		in calculating his taxable income.
20		(3) Recapture of business expenses on disposition of
21		asset or business. Notwithstanding any other law to the
22		contrary, if in prior years income from an asset or
23		business has been classified as business income and in a
24		later year is demonstrated to be non-business income, then
25		all expenses, without limitation, deducted in such later
26		year and in the 2 immediately preceding taxable years

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1		related to that asset or business that generated the
2		non-business income shall be added back and recaptured as
3		business income in the year of the disposition of the
4		asset or business. Such amount shall be apportioned to
5		Illinois using the greater of the apportionment fraction
6		computed for the business under Section 304 of this Act
7		for the taxable year or the average of the apportionment
8		fractions computed for the business under Section 304 of
9		this Act for the taxable year and for the 2 immediately
10		preceding taxable years.
11		(f) Valuation limitation amount.
12		(1) In general. The valuation limitation amount
13		referred to in subsections (a)(2)(G), (c)(2)(I) and
14		(d)(2)(E) is an amount equal to:
15		(A) The sum of the pre-August 1, 1969 appreciation
16		amounts (to the extent consisting of gain reportable
17		under the provisions of Section 1245 or 1250 of the
18		Internal Revenue Code) for all property in respect of
19		which such gain was reported for the taxable year;
20		plus
21		(B) The lesser of (i) the sum of the pre-August 1,
22		1969 appreciation amounts (to the extent consisting of
23		capital gain) for all property in respect of which
24		such gain was reported for federal income tax purposes
25		for the taxable year, or (ii) the net capital gain for

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1		the taxable year, reduced in either case by any amount
2		of such gain included in the amount determined under
3		subsection (a)(2)(F) or (c)(2)(H).
4		(2) Pre-August 1, 1969 appreciation amount.
5		(A) If the fair market value of property referred
6		to in paragraph (1) was readily ascertainable on
7		August 1, 1969, the pre-August 1, 1969 appreciation
8		amount for such property is the lesser of (i) the
9		excess of such fair market value over the taxpayer's
10		basis (for determining gain) for such property on that
11		date (determined under the Internal Revenue Code as in
12		effect on that date), or (ii) the total gain realized
13		and reportable for federal income tax purposes in
14		respect of the sale, exchange or other disposition of
15		such property.
16		(B) If the fair market value of property referred
17		to in paragraph (1) was not readily ascertainable on
18		August 1, 1969, the pre-August 1, 1969 appreciation
19		amount for such property is that amount which bears
20		the same ratio to the total gain reported in respect of
21		the property for federal income tax purposes for the
22		taxable year, as the number of full calendar months in
23		that part of the taxpayer's holding period for the
24		property ending July 31, 1969 bears to the number of
25		full calendar months in the taxpayer's entire holding
26		period for the property.

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1		(C) The Department shall prescribe such
2		regulations as may be necessary to carry out the
3		purposes of this paragraph.
4		(g) Double deductions. Unless specifically provided
5		otherwise, nothing in this Section shall permit the same item
6		to be deducted more than once.
7		(h) Legislative intention. Except as expressly provided by
8		this Section there shall be no modifications or limitations on
9		the amounts of income, gain, loss or deduction taken into
10		account in determining gross income, adjusted gross income or
11		taxable income for federal income tax purposes for the taxable
12		year, or in the amount of such items entering into the
13		computation of base income and net income under this Act for
14		such taxable year, whether in respect of property values as of
15		August 1, 1969 or otherwise.
16		(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
17		102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
18		12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised
19		9-26-23.)
20		ARTICLE 15.
21		Section 15-5. The Property Tax Code is amended by changing
22		Section 18-173 as follows:

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1		(35 ILCS 200/18-173)
2		Sec. 18-173. Housing opportunity area abatement program.
3		(a) For the purpose of promoting access to housing near
4		work and in order to promote economic diversity throughout
5		Illinois and to alleviate the concentration of low-income
6		households in areas of high poverty, a housing opportunity
7		area tax abatement program is created.
8		(b) As used in this Section:
9		"Housing authority" means either a housing authority
10		created under the Housing Authorities Act or other government
11		agency that is authorized by the United States government
12		under the United States Housing Act of 1937 to administer a
13		housing choice voucher program, or the authorized agent of
14		such a housing authority that is authorized to act upon that
15		authority's behalf.
16		"Housing choice voucher" means a tenant voucher issued by
17		a housing authority under Section 8 of the United States
18		Housing Act of 1937 and a tenant voucher converted to a
19		project-based voucher by a housing authority.
20		"Housing opportunity area" means a census tract where less
21		than 10% of the residents live below the poverty level, as
22		defined by the United States government and determined by the
23		most recent United States census, that is located within a
24		qualified township, except for census tracts located within
25		any township that is located wholly within a municipality with

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1		1,000,000 or more inhabitants. A census tract that is located
2		within a township that is located wholly within a municipality
3		with 1,000,000 or more inhabitants is considered a housing
4		opportunity area if less than 12% of the residents of the
5		census tract live below the poverty level.
6		"Housing opportunity unit" means a dwelling unit located
7		in residential property that is located in a housing
8		opportunity area, that is owned by the applicant, and that is
9		rented to and occupied by a tenant who is participating in a
10		housing choice voucher program administered by a housing
11		authority as of January 1st of the tax year for which the
12		application is made.
13		"Qualified units" means the number of housing opportunity
14		units located in the property with the limitation that no more
15		than 2 units or 20% of the total units contained within the
16		property, whichever is greater, may be considered qualified
17		units. Further, no unit may be considered qualified unless the
18		property in which it is contained is in substantial compliance
19		with local building codes, and, moreover, no unit may be
20		considered qualified unless it meets the United States
21		Department of Housing and Urban Development's housing quality
22		standards as of the most recent housing authority inspection.
23		"Qualified township" means a township located within a
24		county with 200,000 or more inhabitants whose tax capacity
25		exceeds 80% of the average tax capacity of the county in which
26		it is located, except for townships located within a county

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1		with 3,000,000 or more inhabitants, where a qualified township
2		means a township whose tax capacity exceeds 115% of the
3		average tax capacity of the county except for townships
4		located wholly within a municipality with 1,000,000 or more
5		inhabitants. All townships located wholly within a
6		municipality with 1,000,000 or more inhabitants are considered
7		qualified townships.
8		"Tax capacity" means the equalized assessed value of all
9		taxable real estate located within a township or county
10		divided by the total population of that township or county.
11		(c) The owner of property located within a housing
12		opportunity area who has a housing choice voucher contract
13		with a housing authority may apply for a housing opportunity
14		area tax abatement by annually submitting an application to
15		the housing authority that administers the housing choice
16		voucher contract. The application must include the number of
17		housing opportunity units as well as the total number of
18		dwelling units contained within the property. The owner must,
19		under oath, self-certify as to the total number of dwelling
20		units in the property and must self-certify that the property
21		is in substantial compliance with local building codes. The
22		housing authority shall annually determine the number of
23		qualified units located within each property for which an
24		application is made.
25		The housing authority shall establish rules and procedures
26		governing the application processes and may charge an

HB4951 Enrolled - 119 - LRB103 38094 HLH 68226 b
1		application fee. The county clerk may audit the applications
2		to determine that the properties subject to the tax abatement
3		meet the requirements of this Section. The determination of
4		eligibility of a property for the housing opportunity area
5		abatement shall be made annually; however, no property may
6		receive an abatement for more than 10 tax years.
7		(d) The housing authority shall determine housing
8		opportunity areas within its service area and annually deliver
9		to the county clerk, in a manner determined by the county
10		clerk, a list of all properties containing qualified units
11		within that service area by December 31st of the tax year for
12		which the property is eligible for abatement; the list shall
13		include the number of qualified units and the total number of
14		dwelling units for each property.
15		The county clerk shall deliver annually to a housing
16		authority, upon that housing authority's request, the most
17		recent available equalized assessed value for the county as a
18		whole and for those taxing districts and townships so
19		specified by the requesting housing authority.
20		(e) The county clerk shall abate the tax attributed to a
21		portion of the property determined to be eligible for a
22		housing opportunity area abatement. The portion eligible for
23		abatement shall be determined by reducing the equalized
24		assessment value by a percentage calculated using the
25		following formula: 19% of the equalized assessed value of the
26		property multiplied by a fraction where the numerator is the

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1		number of qualified units and denominator is the total number
2		of dwelling units located within the property.
3		(f) Any municipality, except for municipalities with
4		1,000,000 or more inhabitants, may annually petition the
5		county clerk to be excluded from a housing opportunity area if
6		it is able to demonstrate that more than 2.5% of the total
7		residential units located within that municipality are
8		occupied by tenants under the housing choice voucher program.
9		Properties located within an excluded municipality shall not
10		be eligible for the housing opportunity area abatement for the
11		tax year in which the petition is made.
12		(g) Applicability. This Section applies to tax years 2004
13		through 2034 2024, unless extended by law.
14		(Source: P.A. 98-957, eff. 8-15-14.)
15		ARTICLE 20.
16		Section 20-5. The Property Tax Code is amended by changing
17		Section 21-355 as follows:
18		(35 ILCS 200/21-355)
19		Sec. 21-355. Amount of redemption. Any person desiring to
20		redeem shall deposit an amount specified in this Section with
21		the county clerk of the county in which the property is
22		situated, in legal money of the United States, or by cashier's
23		check, certified check, post office money order or money order

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1		issued by a financial institution insured by an agency or
2		instrumentality of the United States, payable to the county
3		clerk of the proper county. The deposit shall be deemed timely
4		only if actually received in person at the county clerk's
5		office prior to the close of business as defined in Section
6		3-2007 of the Counties Code on or before the expiration of the
7		period of redemption or by United States mail with a post
8		office cancellation mark dated not less than one day prior to
9		the expiration of the period of redemption. The deposit shall
10		be in an amount equal to the total of the following:
11		(a) the certificate amount, which shall include all
12		tax principal, special assessments, interest and penalties
13		paid by the tax purchaser together with costs and fees of
14		sale and fees paid under Sections 21-295 and 21-315
15		through 21-335, except for the nonrefundable $80 fee paid,
16		pursuant to Section 21-295, for each item purchased at the
17		tax sale;
18		(b) the accrued penalty, computed through the date of
19		redemption as a percentage of the certificate amount, as
20		follows:
21		(1) if the redemption occurs on or before the
22		expiration of 6 months from the date of sale, the
23		certificate amount times the penalty bid at sale;
24		(2) if the redemption occurs after 6 months from
25		the date of sale, and on or before the expiration of 12
26		months from the date of sale, the certificate amount

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1		times 2 times the penalty bid at sale;
2		(3) if the redemption occurs after 12 months from
3		the date of sale and on or before the expiration of 18
4		months from the date of sale, the certificate amount
5		times 3 times the penalty bid at sale;
6		(4) if the redemption occurs after 18 months from
7		the date of sale and on or before the expiration of 24
8		months from the date of sale, the certificate amount
9		times 4 times the penalty bid at sale;
10		(5) if the redemption occurs after 24 months from
11		the date of sale and on or before the expiration of 30
12		months from the date of sale, the certificate amount
13		times 5 times the penalty bid at sale;
14		(6) if the redemption occurs after 30 months from
15		the date of sale and on or before the expiration of 36
16		months from the date of sale, the certificate amount
17		times 6 times the penalty bid at sale.
18		In the event that the property to be redeemed has been
19		purchased under Section 21-405 before January 1, 2024, the
20		penalty bid shall be 12% per penalty period as set forth in
21		subparagraphs (1) through (6) of this subsection (b). The
22		changes to this subdivision (b)(6) made by this amendatory
23		Act of the 91st General Assembly are not a new enactment,
24		but declaratory of existing law.
25		For counties with fewer than 3,000,000 inhabitants, if
26		the property to be redeemed is property with respect to

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1		which a tax lien or certificate is acquired after January
2		1, 2024 by the county as trustee pursuant to Section
3		21-90, the penalty bid at sale shall accrue according to
4		the penalty periods established in subparagraphs (1)
5		through (6) of this subsection (b).
6		For counties with more than 3,000,000 inhabitants, if
7		If the property to be redeemed is property with respect to
8		which a tax lien or certificate is acquired on or after
9		January 1, 2024 by the county as trustee pursuant to
10		Section 21-90, the penalty bid is 0.75% and shall accrue
11		monthly instead of according to the penalty periods
12		established in subparagraphs (1) through (6) of this
13		subsection (b).
14		(c) The total of all taxes, special assessments,
15		accrued interest on those taxes and special assessments
16		and costs charged in connection with the payment of those
17		taxes or special assessments, except for the nonrefundable
18		$80 fee paid, pursuant to Section 21-295, for each item
19		purchased at the tax sale, which have been paid by the tax
20		certificate holder on or after the date those taxes or
21		special assessments became delinquent together with 12%
22		penalty on each amount so paid for each year or portion
23		thereof intervening between the date of that payment and
24		the date of redemption. In counties with less than
25		3,000,000 inhabitants, however, a tax certificate holder
26		may not pay all or part of an installment of a subsequent

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1		tax or special assessment for any year, nor shall any
2		tender of such a payment be accepted, until after the
3		second or final installment of the subsequent tax or
4		special assessment has become delinquent or until after
5		the holder of the certificate of purchase has filed a
6		petition for a tax deed under Section 22.30. The person
7		redeeming shall also pay the amount of interest charged on
8		the subsequent tax or special assessment and paid as a
9		penalty by the tax certificate holder. This amendatory Act
10		of 1995 applies to tax years beginning with the 1995
11		taxes, payable in 1996, and thereafter.
12		(d) Any amount paid to redeem a forfeiture occurring
13		before January 1, 2024 but after the tax sale together
14		with 12% penalty thereon for each year or portion thereof
15		intervening between the date of the forfeiture redemption
16		and the date of redemption from the sale.
17		(e) Any amount paid by the certificate holder for
18		redemption of a subsequently occurring tax sale, including
19		tax liens or certificates held by the county as trustee,
20		pursuant to Section 21-90.
21		(f) All fees paid to the county clerk under Section
22		22-5.
23		(g) All fees paid to the registrar of titles incident
24		to registering the tax certificate in compliance with the
25		Registered Titles (Torrens) Act.
26		(h) All fees paid to the circuit clerk and the

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1		sheriff, a licensed or registered private detective, or
2		the coroner in connection with the filing of the petition
3		for tax deed and service of notices under Sections 22-15
4		through 22-30 and 22-40 in addition to (1) a fee of $35 if
5		a petition for tax deed has been filed, which fee shall be
6		posted to the tax judgement, sale, redemption, and
7		forfeiture record, to be paid to the purchaser or his or
8		her assignee; (2) a fee of $4 if a notice under Section
9		22-5 has been filed, which fee shall be posted to the tax
10		judgment, sale, redemption, and forfeiture record, to be
11		paid to the purchaser or his or her assignee; (3) all costs
12		paid to record a lis pendens notice in connection with
13		filing a petition under this Code; and (4) if a petition
14		for tax deed has been filed, all fees up to $150 per
15		redemption paid to a registered or licensed title
16		insurance company or title insurance agent for a title
17		search to identify all owners, parties interested, and
18		occupants of the property, to be paid to the purchaser or
19		his or her assignee. The fees in (1) and (2) of this
20		paragraph (h) shall be exempt from the posting
21		requirements of Section 21-360. The costs incurred in
22		causing notices to be served by a licensed or registered
23		private detective under Section 22-15, may not exceed the
24		amount that the sheriff would be authorized by law to
25		charge if those notices had been served by the sheriff.
26		(i) All fees paid for publication of notice of the tax

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1		sale in accordance with Section 22-20.
2		(j) All sums paid to any county, city, village or
3		incorporated town for reimbursement under Section 22-35.
4		(k) All costs and expenses of receivership under
5		Section 21-410, to the extent that these costs and
6		expenses exceed any income from the property in question,
7		if the costs and expenditures have been approved by the
8		court appointing the receiver and a certified copy of the
9		order or approval is filed and posted by the certificate
10		holder with the county clerk. Only actual costs expended
11		may be posted on the tax judgment, sale, redemption and
12		forfeiture record.
13		(Source: P.A. 103-555, eff. 1-1-24.)
14		ARTICLE 25.
15		Section 25-5. The Property Tax Code is amended by changing
16		Section 20-15 as follows:
17		(35 ILCS 200/20-15)
18		Sec. 20-15. Information on bill or separate statement.
19		There shall be printed on each bill, or on a separate slip
20		which shall be mailed with the bill:
21		(a) a statement itemizing the rate at which taxes have
22		been extended for each of the taxing districts in the
23		county in whose district the property is located, and in

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1		those counties utilizing electronic data processing
2		equipment the dollar amount of tax due from the person
3		assessed allocable to each of those taxing districts,
4		including a separate statement of the dollar amount of tax
5		due which is allocable to a tax levied under the Illinois
6		Local Library Act or to any other tax levied by a
7		municipality or township for public library purposes,
8		(b) a separate statement for each of the taxing
9		districts of the dollar amount of tax due which is
10		allocable to a tax levied under the Illinois Pension Code
11		or to any other tax levied by a municipality or township
12		for public pension or retirement purposes,
13		(b-5) a list of each tax increment financing (TIF)
14		district in which the property is located and the dollar
15		amount of tax due that is allocable to the TIF district,
16		(c) the total tax rate,
17		(d) the total amount of tax due, and
18		(e) the amount by which the total tax and the tax
19		allocable to each taxing district differs from the
20		taxpayer's last prior tax bill.
21		The county treasurer shall ensure that only those taxing
22		districts in which a parcel of property is located shall be
23		listed on the bill for that property.
24		In all counties the statement shall also provide:
25		(1) the property index number or other suitable
26		description,

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1		(2) the assessment of the property,
2		(3) the statutory amount of each homestead exemption
3		applied to the property,
4		(4) the assessed value of the property after
5		application of all homestead exemptions,
6		(5) the equalization factors imposed by the county and
7		by the Department, and
8		(6) the equalized assessment resulting from the
9		application of the equalization factors to the basic
10		assessment.
11		In all counties which do not classify property for
12		purposes of taxation, for property on which a single family
13		residence is situated the statement shall also include a
14		statement to reflect the fair cash value determined for the
15		property. In all counties which classify property for purposes
16		of taxation in accordance with Section 4 of Article IX of the
17		Illinois Constitution, for parcels of residential property in
18		the lowest assessment classification the statement shall also
19		include a statement to reflect the fair cash value determined
20		for the property.
21		In all counties, the statement must include information
22		that certain taxpayers may be eligible for tax exemptions,
23		abatements, and other assistance programs and that, for more
24		information, taxpayers should consult with the office of their
25		township or county assessor and with the Illinois Department
26		of Revenue. For bills mailed on or after January 1, 2026, the

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1		statement must include, in bold face type, a list of
2		exemptions available to taxpayers and contact information for
3		the chief county assessment officer.
4		In counties which use the estimated or accelerated billing
5		methods, these statements shall only be provided with the
6		final installment of taxes due. The provisions of this Section
7		create a mandatory statutory duty. They are not merely
8		directory or discretionary. The failure or neglect of the
9		collector to mail the bill, or the failure of the taxpayer to
10		receive the bill, shall not affect the validity of any tax, or
11		the liability for the payment of any tax.
12		(Source: P.A. 100-621, eff. 7-20-18; 101-134, eff. 7-26-19.)
13		ARTICLE 30.
14		Section 30-5. The Property Tax Code is amended by changing
15		Section 30-25 as follows:
16		(35 ILCS 200/30-25)
17		Sec. 30-25. Distributions from account.
18		(a) At the direction of the corporate authorities of a
19		taxing district, the treasurer of the taxing district shall
20		disburse the amounts held in the tax reimbursement account.
21		Unless the taxing district has divided the moneys as provided
22		in subsection (b), disbursements shall be made to all of the
23		owners of taxable homestead property within the taxing

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1		district. Each owner of taxable homestead property shall
2		receive a proportionate share of the total disbursement based
3		on the amount of ad valorem taxes on taxable homestead
4		property paid by the owner to the taxing district under the
5		most recent tax bill.
6		(b) The corporate authorities of a taxing district may
7		direct the treasurer to divide the moneys deposited into the
8		account into 2 separate pools to be designated the homestead
9		property pool and the commercial or industrial property pool.
10		The amount to be deposited into each pool shall be determined
11		by the corporate authorities of the taxing district, except
12		that at least 50% of the moneys in the account shall be
13		deposited into the homestead property pool. The treasurer
14		shall disburse the amounts held in each pool in the tax
15		reimbursement account at the direction of the corporate
16		authorities. Disbursements from the homestead property pool
17		shall be made to all of the owners of taxable homestead
18		property within the taxing district. Each owner of taxable
19		homestead property shall receive a proportionate share of the
20		total disbursement from the pool based on the amount of ad
21		valorem taxes on taxable homestead property paid by the owner
22		to the taxing district under the most recent tax bill.
23		Disbursements from the commercial or industrial property pool
24		shall be made to all of the owners of taxable commercial or
25		industrial property, except (i) those owners whose property is
26		located within a tax increment financing district, (ii) those

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1		owners who received a tax incentive as a result of a tax
2		incentivized development established by an intergovernmental
3		agreement to which the taxing district is a party, or (iii)
4		those owners whose property is classified as an apartment
5		building. Each eligible owner of taxable commercial or
6		industrial property shall receive a proportionate share of the
7		total disbursement from the pool based on the amount of ad
8		valorem taxes on taxable commercial or industrial property
9		paid by the owner to the taxing district under the most recent
10		tax bill.
11		(c) In determining the proportionate share of each owner
12		of homestead property, the numerator shall be the amount of
13		taxes on homestead property paid by that owner to the taxing
14		district under the most recent tax bill, and the denominator
15		shall be the aggregate total of all taxes on homestead
16		property paid by all owners to the taxing district under the
17		most recent tax bills.
18		(d) In determining the proportionate share of each owner
19		of commercial or industrial property, the numerator shall be
20		the amount of taxes on commercial or industrial property paid
21		by that owner to the taxing district under the most recent tax
22		bill, and the denominator shall be the aggregate total of all
23		taxes on commercial or industrial property paid by all owners
24		to the taxing district under the most recent tax bills less
25		taxes paid on commercial or industrial property located in a
26		tax increment financing district, taxes paid on commercial or

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1		industrial property for which the owner received a tax
2		incentive as a result of a tax incentivized development
3		established by an intergovernmental agreement to which the
4		taxing district is a party, and taxes paid on an apartment
5		building.
6		(e) As used in this Section:
7		"Qualified redevelopment costs" means costs advanced by a
8		taxing district to a commercial or industrial property owner
9		to promote economic development when, but for the advancement
10		of the funds, the development would not be financially
11		feasible.
12		"Tax incentivized development" means an economic
13		development project established by intergovernmental agreement
14		whereby a taxing district advances qualified redevelopment
15		costs to a commercial or industrial property owner.
16		(Source: P.A. 90-471, eff. 8-17-97.)
17		ARTICLE 35.
18		Section 35-5. The Property Tax Code is amended by changing
19		Sections 18-15 and 18-190 and by adding Section 18-17 as
20		follows:
21		(35 ILCS 200/18-15)
22		Sec. 18-15. Filing of levies of taxing districts.
23		(a) Notwithstanding any other law to the contrary, all

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1		taxing districts, other than a school district subject to the
2		authority of a Financial Oversight Panel pursuant to Article
3		1H of the School Code, and except as provided in Section 18-17,
4		shall annually certify to the county clerk, on or before the
5		last Tuesday in December, the several amounts that they have
6		levied.
7		(a-5) Certification to the county clerk under subsection
8		(a), including any supplemental or supportive documentation,
9		may be submitted electronically.
10		(b) A school district subject to the authority of a
11		Financial Oversight Panel pursuant to Article 1H of the School
12		Code shall file a certificate of tax levy, necessary to effect
13		the implementation of the approved financial plan and the
14		approval of the Panel, as otherwise provided by this Section,
15		except that the certificate must be certified to the county
16		clerk on or before the first Tuesday in November.
17		(c) If a school district as specified in subsection (b) of
18		this Section fails to certify and return the certificate of
19		tax levy, necessary to effect the implementation of the
20		approved financial plan and the approval of the Financial
21		Oversight Panel, to the county clerk on or before the first
22		Tuesday in November, then the Financial Oversight Panel for
23		the school district shall proceed to adopt, certify, and
24		return a certificate of tax levy for the school district to the
25		county clerk on or before the last Tuesday in December.
26		(Source: P.A. 102-625, eff. 1-1-22.)

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1		(35 ILCS 200/18-17 new)
2		Sec. 18-17. Supplemental levy for LaMoille Community Unit
3		School District #303. Notwithstanding any other provision of
4		law, LaMoille Community Unit School District #303 may, by
5		ordinance adopted on or before June 30, 2024, amend or
6		supplement its levy for the 2023 tax year for taxes scheduled
7		to be collected in calendar year 2024. The District shall
8		certify the amount of the amended or supplemental levy to the
9		county clerk as soon as possible after the amended or
10		supplemental levy is adopted, and the county clerk shall
11		include those amounts in the extension of taxes for the 2023
12		tax year. In no event shall the amended or supplemental levy
13		adopted under this Section cause the District's property tax
14		rate for the 2023 tax year to exceed the District's limiting
15		rate under the Property Tax Extension Limitation Law or any
16		other limitation on the extension of property taxes applicable
17		to the District. This Section is repealed on January 1, 2025.
18		(35 ILCS 200/18-190)
19		Sec. 18-190. Direct referendum; new rate or increased
20		limiting rate.
21		(a) If a new rate is authorized by statute to be imposed
22		without referendum or is subject to a backdoor referendum, as
23		defined in Section 28-2 of the Election Code, the governing
24		body of the affected taxing district before levying the new

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1		rate shall submit the new rate to direct referendum under the
2		provisions of this Section and of Article 28 of the Election
3		Code. Notwithstanding any other provision of law, the levies
4		authorized by Sections 21-110 and 21-110.1 of the Illinois
5		Pension Code shall not be considered new rates; however,
6		nothing in this amendatory Act of the 98th General Assembly
7		authorizes a taxing district to increase its limiting rate or
8		its aggregate extension without first obtaining referendum
9		approval as provided in this Section. Notwithstanding any
10		other provision of law, the levy authorized by Section 18-17
11		is considered part of the annual corporate extension for the
12		taxing district and is not considered a new rate.
13		Notwithstanding the provisions, requirements, or limitations
14		of any other law, any tax levied for the 2005 levy year and all
15		subsequent levy years by any taxing district subject to this
16		Law may be extended at a rate exceeding the rate established
17		for that tax by referendum or statute, provided that the rate
18		does not exceed the statutory ceiling above which the tax is
19		not authorized to be further increased either by referendum or
20		in any other manner. Notwithstanding the provisions,
21		requirements, or limitations of any other law, all taxing
22		districts subject to this Law shall follow the provisions of
23		this Section whenever seeking referenda approval after March
24		21, 2006 to (i) levy a new tax rate authorized by statute or
25		(ii) increase the limiting rate applicable to the taxing
26		district. All taxing districts subject to this Law are

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1		authorized to seek referendum approval of each proposition
2		described and set forth in this Section.
3		The proposition seeking to obtain referendum approval to
4		levy a new tax rate as authorized in clause (i) shall be in
5		substantially the following form:
6		Shall ... (insert legal name, number, if any, and
7		county or counties of taxing district and geographic or
8		other common name by which a school or community college
9		district is known and referred to), Illinois, be
10		authorized to levy a new tax for ... purposes and have an
11		additional tax of ...% of the equalized assessed value of
12		the taxable property therein extended for such purposes?
13		The votes must be recorded as "Yes" or "No".
14		The proposition seeking to obtain referendum approval to
15		increase the limiting rate as authorized in clause (ii) shall
16		be in substantially the following form:
17		Shall the limiting rate under the Property Tax
18		Extension Limitation Law for ... (insert legal name,
19		number, if any, and county or counties of taxing district
20		and geographic or other common name by which a school or
21		community college district is known and referred to),
22		Illinois, be increased by an additional amount equal to
23		...% above the limiting rate for the purpose of...(insert
24		purpose) for levy year ... (insert the most recent levy
25		year for which the limiting rate of the taxing district is
26		known at the time the submission of the proposition is

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1		initiated by the taxing district) and be equal to ...% of
2		the equalized assessed value of the taxable property
3		therein for levy year(s) (insert each levy year for which
4		the increase will be applicable, which years must be
5		consecutive and may not exceed 4)?
6		The votes must be recorded as "Yes" or "No".
7		The ballot for any proposition submitted pursuant to this
8		Section shall have printed thereon, but not as a part of the
9		proposition submitted, only the following supplemental
10		information (which shall be supplied to the election authority
11		by the taxing district) in substantially the following form:
12		(1) The approximate amount of taxes extendable at the
13		most recently extended limiting rate is $..., and the
14		approximate amount of taxes extendable if the proposition
15		is approved is $....
16		(2) For the ... (insert the first levy year for which
17		the new rate or increased limiting rate will be
18		applicable) levy year the approximate amount of the
19		additional tax extendable against property containing a
20		single family residence and having a fair market value at
21		the time of the referendum of $100,000 is estimated to be
22		$....
23		(3) Based upon an average annual percentage increase
24		(or decrease) in the market value of such property of %...
25		(insert percentage equal to the average annual percentage
26		increase or decrease for the prior 3 levy years, at the

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1		time the submission of the proposition is initiated by the
2		taxing district, in the amount of (A) the equalized
3		assessed value of the taxable property in the taxing
4		district less (B) the new property included in the
5		equalized assessed value), the approximate amount of the
6		additional tax extendable against such property for the
7		... levy year is estimated to be $... and for the ... levy
8		year is estimated to be $ ....
9		(4) If the proposition is approved, the aggregate
10		extension for ... (insert each levy year for which the
11		increase will apply) will be determined by the limiting
12		rate set forth in the proposition, rather than the
13		otherwise applicable limiting rate calculated under the
14		provisions of the Property Tax Extension Limitation Law
15		(commonly known as the Property Tax Cap Law).
16		The approximate amount of taxes extendable shown in paragraph
17		(1) shall be computed upon the last known equalized assessed
18		value of taxable property in the taxing district (at the time
19		the submission of the proposition is initiated by the taxing
20		district). Paragraph (3) shall be included only if the
21		increased limiting rate will be applicable for more than one
22		levy year and shall list each levy year for which the increased
23		limiting rate will be applicable. The additional tax shown for
24		each levy year shall be the approximate dollar amount of the
25		increase over the amount of the most recently completed
26		extension at the time the submission of the proposition is

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1		initiated by the taxing district. The approximate amount of
2		the additional taxes extendable shown in paragraphs (2) and
3		(3) shall be calculated by multiplying $100,000 (the fair
4		market value of the property without regard to any property
5		tax exemptions) by (i) the percentage level of assessment
6		prescribed for that property by statute, or by ordinance of
7		the county board in counties that classify property for
8		purposes of taxation in accordance with Section 4 of Article
9		IX of the Illinois Constitution; (ii) the most recent final
10		equalization factor certified to the county clerk by the
11		Department of Revenue at the time the taxing district
12		initiates the submission of the proposition to the electors;
13		and (iii) either the new rate or the amount by which the
14		limiting rate is to be increased. This amendatory Act of the
15		97th General Assembly is intended to clarify the existing
16		requirements of this Section, and shall not be construed to
17		validate any prior non-compliant referendum language.
18		Paragraph (4) shall be included if the proposition concerns a
19		limiting rate increase but shall not be included if the
20		proposition concerns a new rate. Any notice required to be
21		published in connection with the submission of the proposition
22		shall also contain this supplemental information and shall not
23		contain any other supplemental information regarding the
24		proposition. Any error, miscalculation, or inaccuracy in
25		computing any amount set forth on the ballot and in the notice
26		that is not deliberate shall not invalidate or affect the

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1		validity of any proposition approved. Notice of the referendum
2		shall be published and posted as otherwise required by law,
3		and the submission of the proposition shall be initiated as
4		provided by law.
5		If a majority of all ballots cast on the proposition are in
6		favor of the proposition, the following provisions shall be
7		applicable to the extension of taxes for the taxing district:
8		(A) a new tax rate shall be first effective for the
9		levy year in which the new rate is approved;
10		(B) if the proposition provides for a new tax rate,
11		the taxing district is authorized to levy a tax after the
12		canvass of the results of the referendum by the election
13		authority for the purposes for which the tax is
14		authorized;
15		(C) a limiting rate increase shall be first effective
16		for the levy year in which the limiting rate increase is
17		approved, provided that the taxing district may elect to
18		have a limiting rate increase be effective for the levy
19		year prior to the levy year in which the limiting rate
20		increase is approved unless the extension of taxes for the
21		prior levy year occurs 30 days or less after the canvass of
22		the results of the referendum by the election authority in
23		any county in which the taxing district is located;
24		(D) in order for the limiting rate increase to be
25		first effective for the levy year prior to the levy year of
26		the referendum, the taxing district must certify its

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1		election to have the limiting rate increase be effective
2		for the prior levy year to the clerk of each county in
3		which the taxing district is located not more than 2 days
4		after the date the results of the referendum are canvassed
5		by the election authority; and
6		(E) if the proposition provides for a limiting rate
7		increase, the increase may be effective regardless of
8		whether the proposition is approved before or after the
9		taxing district adopts or files its levy for any levy
10		year.
11		Rates required to extend taxes on levies subject to a
12		backdoor referendum in each year there is a levy are not new
13		rates or rate increases under this Section if a levy has been
14		made for the fund in one or more of the preceding 3 levy years.
15		Changes made by this amendatory Act of 1997 to this Section in
16		reference to rates required to extend taxes on levies subject
17		to a backdoor referendum in each year there is a levy are
18		declarative of existing law and not a new enactment.
19		(b) Whenever other applicable law authorizes a taxing
20		district subject to the limitation with respect to its
21		aggregate extension provided for in this Law to issue bonds or
22		other obligations either without referendum or subject to
23		backdoor referendum, the taxing district may elect for each
24		separate bond issuance to submit the question of the issuance
25		of the bonds or obligations directly to the voters of the
26		taxing district, and if the referendum passes the taxing

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1		district is not required to comply with any backdoor
2		referendum procedures or requirements set forth in the other
3		applicable law. The direct referendum shall be initiated by
4		ordinance or resolution of the governing body of the taxing
5		district, and the question shall be certified to the proper
6		election authorities in accordance with the provisions of the
7		Election Code.
8		(Source: P.A. 97-1087, eff. 8-24-12; 98-1088, eff. 8-26-14.)
9		Section 35-10. The School Code is amended by changing
10		Section 17-3.2 as follows:
11		(105 ILCS 5/17-3.2) (from Ch. 122, par. 17-3.2)
12		Sec. 17-3.2. Additional or supplemental budget.
13		(a) Whenever the voters of a school district have voted in
14		favor of an increase in the annual tax rate for educational or
15		operations and maintenance purposes or both at an election
16		held after the adoption of the annual school budget for any
17		fiscal year, the board may adopt or pass during that fiscal
18		year an additional or supplemental budget under the sole
19		authority of this Section by a vote of a majority of the full
20		membership of the board, any other provision of this Article
21		to the contrary notwithstanding, in and by which such
22		additional or supplemental budget the board shall appropriate
23		such additional sums of money as it may find necessary to
24		defray expenses and liabilities of that district to be

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1		incurred for educational or operations and maintenance
2		purposes or both of the district during that fiscal year, but
3		not in excess of the additional funds estimated to be
4		available by virtue of such voted increase in the annual tax
5		rate for educational or operations and maintenance purposes or
6		both. Such additional or supplemental budget shall be regarded
7		as an amendment of the annual school budget for the fiscal year
8		in which it is adopted, and the board may levy the additional
9		tax for educational or operations and maintenance purposes or
10		both to equal the amount of the additional sums of money
11		appropriated in that additional or supplemental budget,
12		immediately.
13		(b) Notwithstanding any other provision of law, LaMoille
14		Community Unit School District #303 may adopt an additional or
15		supplemental budget in connection with an amended or
16		supplemental levy adopted under Section 18-17 of the Property
17		Tax Code without receiving the approval of the voters as
18		provided in subsection (a). This subsection (b) is inoperative
19		on and after January 1, 2025.
20		(Source: P.A. 86-1334.)
21		ARTICLE 40.
22		Section 40-1. Short title. This Act may be cited as the
23		Local Journalism Sustainability Act. References in this
24		Article to "this Act" mean this Article.

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1		Section 40-5. Definitions.
2		"Award cycle" means the 4 reporting periods for which the
3		employer is awarded a credit under Section 40-10.
4		"Comparable rate" has the meaning given to that term by
5		the Federal Communications Commission in its campaign
6		advertising rate rules.
7		"Department" means the Department of Commerce and Economic
8		Opportunity.
9		"Independently owned" means, as applied to a local news
10		organization, that:
11		(1) the local news organization is not a publicly
12		traded entity and no more than 5% of the beneficial
13		ownership of the local news organization is owned,
14		directly or indirectly, by a publicly traded entity; and
15		(2) the local news organization is not a subsidiary.
16		"Local news organization" means an entity that:
17		(1) engages professionals to create, edit, produce,
18		and distribute original content concerning matters of
19		public interest through reporting activities, including
20		conducting interviews, observing current events, or
21		analyzing documents or other information;
22		(2) has at least one employee who meets all of the
23		following criteria:
24		(A) the employee is employed by the entity on a
25		full-time basis for at least 30 hours a week;

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1		(B) the employee's job duties for the entity
2		consist primarily of providing coverage of Illinois or
3		local Illinois community news as described in
4		paragraph (C);
5		(C) the employee gathers, prepares, collects,
6		photographs, writes, edits, reports, or publishes
7		original local or State community news for
8		dissemination to the local or State community; and
9		(D) the employee lives within 50 miles of the
10		coverage area;
11		(3) in the case of a print publication, has published
12		at least one print publication per month over the previous
13		12 months and either (i) holds a valid United States
14		Postal Service periodical permit or (ii) has at least 25%
15		of its content dedicated to local news;
16		(4) in the case of a digital-only entity, has
17		published one piece about the community per week over the
18		previous 12 months and has at least 33% of its digital
19		audience in Illinois, averaged over a 12-month period;
20		(5) in the case of a hybrid entity that has both print
21		and digital outlets, meets the requirements in either
22		paragraph (3) or (4) of this definition;
23		(6) has disclosed in its print publication or on its
24		website its beneficial ownership or, in the case of a
25		not-for-profit entity, its board of directors;
26		(7) in the case of an entity that maintains tax status

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1		under Section 501(c)(3) of the federal Internal Revenue
2		Code, has declared the coverage of local or State news as
3		the stated mission in its filings with the Internal
4		Revenue Service;
5		(8) has not received any payments of more than 50% of
6		its gross receipts for the previous year from political
7		action committees or other entities described in Section
8		527 of the federal Internal Revenue Code or from an
9		organization that maintains Section 501(c)(4) or 501(c)(6)
10		status under the federal Internal Revenue Code, unless
11		those payments are for political advertising during the
12		lowest unit windows and using comparable rates; and
13		(9) has not received more than 30% of its revenue from
14		the previous taxable year from political advertisements
15		during lowest unit windows.
16		"Local news organization" does not include an organization
17		that received more than $100,000 from organizations described
18		in paragraph (8) during the taxable year or any preceding
19		taxable year.
20		"Lowest unit window" has the meaning given to that term by
21		the Federal Communications Commission in its campaign
22		advertising rate rules.
23		"New journalism position" means an employment position
24		that results in a net increase in qualified journalists
25		employed by the local news organization from January 1 of the
26		preceding calendar year compared to January 1 of the calendar

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1		year in which a credit under this Act is sought.
2		"Private fund" means a corporation that:
3		(1) would be considered an investment company under
4		Section 3 of the Investment Company Act of 1940, 15 U.S.C.
5		80a-3, but for the application of paragraph (1) or (7) of
6		subsection (c) of that Section;
7		(2) is not a venture capital fund, as defined in
8		Section 275.203(l)-1 of Title 17 of the Code of Federal
9		Regulations, as in effect on the effective date of this
10		Act; and
11		(3) is not an institution selected under Section 107
12		of the federal Community Development Banking and Financial
13		Institutions Act of 1994.
14		"Qualified journalist" means a person who:
15		(1) is employed for an average of at least 30 hours per
16		week; and
17		(2) is responsible for gathering, developing,
18		preparing, directing the recording of, producing,
19		collecting, photographing, recording, writing, editing,
20		reporting, designing, presenting, distributing, or
21		publishing original news or information that concerns
22		local matters of public interest.
23		"Reporting period" means the quarter for which a return is
24		required to be filed under Article 7 of the Illinois Income Tax
25		Act.

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1		Section 40-10. Credit award. For reporting periods that
2		begin on or after January 1, 2025 and before January 1, 2030,
3		employers, including employers that maintain tax status under
4		Section 501(c)(3) of the federal Internal Revenue Code, that
5		are local news organizations and that are required to deduct
6		and withhold taxes as provided in Article 7 of the Illinois
7		Income Tax Act are eligible to receive a credit against
8		payments due under Section 704A of the Illinois Income Tax
9		Act. The credit shall be $15,000 per qualified journalist
10		employed and paid by the employer during the 12-month period
11		immediately preceding the date on which the employer applies
12		for a credit under this Section. An additional credit of
13		$10,000 shall be awarded against payments due under Section
14		704A of the Illinois Income Tax Act for each qualified
15		journalist who fills a new journalism position for the
16		employer during the 12-month period immediately preceding the
17		date on which the employer applies for a credit under this
18		Section. No more than $150,000 in credits under this Act may be
19		awarded to any one local news organization in a single
20		calendar year. If the local news organization is not
21		independently owned or lists a private fund among its
22		beneficial ownership, no more than $250,000 in credits may be
23		awarded in a single calendar year to all local news
24		organizations that share the same ownership interest. The
25		total amount of credits that may be awarded under this Act in
26		any given calendar year may not exceed $5,000,000, of which no

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1		more than $4,000,000 may be awarded for the $15,000 credit
2		that applies to qualified journalists, and no more than
3		$1,000,000 may be awarded for the additional $10,000 credit
4		that is awarded for new journalism positions. Credits under
5		this Section shall be awarded by the Department on a
6		first-come, first-served basis.
7		The Department shall issue a credit certificate to each
8		eligible local news organization. Upon issuance of the credit
9		certificate, the Department shall inform the Department of
10		Revenue, in the form and manner as agreed between the
11		agencies, of the date the credit certificate was issued, the
12		name and tax identification number of the recipient, the
13		amount of the credit, and such other information as the
14		Department of Revenue may require. The credit certificate
15		shall be attached to the taxpayer's return.
16		The credit shall be applied to the first reporting period
17		after the credit certificate is issued and that begins on or
18		after January 1, 2025. If the amount of credit exceeds the
19		liability for the reporting period, the excess credit shall be
20		refunded to the taxpayer.
21		Section 40-15. Application for local journalism
22		certificate.
23		(a) In order to qualify for a tax credit award under this
24		Act, an applicant must apply with the Department, in the form
25		and manner required by the Department, for each award cycle

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1		for which a credit under this Act is sought, providing
2		information necessary to calculate the tax credit award and
3		any additional information as reasonably required by the
4		Department. A separate application shall be filed for each
5		local news organization. The tax credit award shall be
6		calculated based upon the filing by the applicant on forms
7		prescribed by the Department. The Department shall cooperate
8		with the Department of Revenue as needed in order to determine
9		credit amount and eligibility.
10		(b) Upon satisfactory review of the application, the
11		Department shall issue a local journalism certificate stating
12		the amount of the tax credit award to which the applicant is
13		entitled for the credit period and shall contemporaneously
14		notify the applicant and Department of Revenue upon issuance
15		of the certificate.
16		Section 40-20. Powers of the Department. The Department
17		and the Department of Revenue may, in consultation, adopt any
18		rules necessary to administer the provisions of this Act.
19		Section 40-25. Program terms and conditions. Any
20		documentary materials or data made available or received from
21		an applicant by any agent or employee of the Department are
22		confidential and are not public records to the extent that the
23		materials or data consist of commercial or financial
24		information regarding the operation of, or the production of,

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1		the applicant or recipient of any tax credit award under this
2		Act.
3		Section 40-900. The Illinois Income Tax Act is amended by
4		changing Section 704A as follows:
5		(35 ILCS 5/704A)
6		Sec. 704A. Employer's return and payment of tax withheld.
7		(a) In general, every employer who deducts and withholds
8		or is required to deduct and withhold tax under this Act on or
9		after January 1, 2008 shall make those payments and returns as
10		provided in this Section.
11		(b) Returns. Every employer shall, in the form and manner
12		required by the Department, make returns with respect to taxes
13		withheld or required to be withheld under this Article 7 for
14		each quarter beginning on or after January 1, 2008, on or
15		before the last day of the first month following the close of
16		that quarter.
17		(c) Payments. With respect to amounts withheld or required
18		to be withheld on or after January 1, 2008:
19		(1) Semi-weekly payments. For each calendar year, each
20		employer who withheld or was required to withhold more
21		than $12,000 during the one-year period ending on June 30
22		of the immediately preceding calendar year, payment must
23		be made:
24		(A) on or before each Friday of the calendar year,

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1		for taxes withheld or required to be withheld on the
2		immediately preceding Saturday, Sunday, Monday, or
3		Tuesday;
4		(B) on or before each Wednesday of the calendar
5		year, for taxes withheld or required to be withheld on
6		the immediately preceding Wednesday, Thursday, or
7		Friday.
8		Beginning with calendar year 2011, payments made under
9		this paragraph (1) of subsection (c) must be made by
10		electronic funds transfer.
11		(2) Semi-weekly payments. Any employer who withholds
12		or is required to withhold more than $12,000 in any
13		quarter of a calendar year is required to make payments on
14		the dates set forth under item (1) of this subsection (c)
15		for each remaining quarter of that calendar year and for
16		the subsequent calendar year.
17		(3) Monthly payments. Each employer, other than an
18		employer described in items (1) or (2) of this subsection,
19		shall pay to the Department, on or before the 15th day of
20		each month the taxes withheld or required to be withheld
21		during the immediately preceding month.
22		(4) Payments with returns. Each employer shall pay to
23		the Department, on or before the due date for each return
24		required to be filed under this Section, any tax withheld
25		or required to be withheld during the period for which the
26		return is due and not previously paid to the Department.

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1		(d) Regulatory authority. The Department may, by rule:
2		(1) Permit employers, in lieu of the requirements of
3		subsections (b) and (c), to file annual returns due on or
4		before January 31 of the year for taxes withheld or
5		required to be withheld during the previous calendar year
6		and, if the aggregate amounts required to be withheld by
7		the employer under this Article 7 (other than amounts
8		required to be withheld under Section 709.5) do not exceed
9		$1,000 for the previous calendar year, to pay the taxes
10		required to be shown on each such return no later than the
11		due date for such return.
12		(2) Provide that any payment required to be made under
13		subsection (c)(1) or (c)(2) is deemed to be timely to the
14		extent paid by electronic funds transfer on or before the
15		due date for deposit of federal income taxes withheld
16		from, or federal employment taxes due with respect to, the
17		wages from which the Illinois taxes were withheld.
18		(3) Designate one or more depositories to which
19		payment of taxes required to be withheld under this
20		Article 7 must be paid by some or all employers.
21		(4) Increase the threshold dollar amounts at which
22		employers are required to make semi-weekly payments under
23		subsection (c)(1) or (c)(2).
24		(e) Annual return and payment. Every employer who deducts
25		and withholds or is required to deduct and withhold tax from a
26		person engaged in domestic service employment, as that term is

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1		defined in Section 3510 of the Internal Revenue Code, may
2		comply with the requirements of this Section with respect to
3		such employees by filing an annual return and paying the taxes
4		required to be deducted and withheld on or before the 15th day
5		of the fourth month following the close of the employer's
6		taxable year. The Department may allow the employer's return
7		to be submitted with the employer's individual income tax
8		return or to be submitted with a return due from the employer
9		under Section 1400.2 of the Unemployment Insurance Act.
10		(f) Magnetic media and electronic filing. With respect to
11		taxes withheld in calendar years prior to 2017, any W-2 Form
12		that, under the Internal Revenue Code and regulations
13		promulgated thereunder, is required to be submitted to the
14		Internal Revenue Service on magnetic media or electronically
15		must also be submitted to the Department on magnetic media or
16		electronically for Illinois purposes, if required by the
17		Department.
18		With respect to taxes withheld in 2017 and subsequent
19		calendar years, the Department may, by rule, require that any
20		return (including any amended return) under this Section and
21		any W-2 Form that is required to be submitted to the Department
22		must be submitted on magnetic media or electronically.
23		The due date for submitting W-2 Forms shall be as
24		prescribed by the Department by rule.
25		(g) For amounts deducted or withheld after December 31,
26		2009, a taxpayer who makes an election under subsection (f) of

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1		Section 5-15 of the Economic Development for a Growing Economy
2		Tax Credit Act for a taxable year shall be allowed a credit
3		against payments due under this Section for amounts withheld
4		during the first calendar year beginning after the end of that
5		taxable year equal to the amount of the credit for the
6		incremental income tax attributable to full-time employees of
7		the taxpayer awarded to the taxpayer by the Department of
8		Commerce and Economic Opportunity under the Economic
9		Development for a Growing Economy Tax Credit Act for the
10		taxable year and credits not previously claimed and allowed to
11		be carried forward under Section 211(4) of this Act as
12		provided in subsection (f) of Section 5-15 of the Economic
13		Development for a Growing Economy Tax Credit Act. The credit
14		or credits may not reduce the taxpayer's obligation for any
15		payment due under this Section to less than zero. If the amount
16		of the credit or credits exceeds the total payments due under
17		this Section with respect to amounts withheld during the
18		calendar year, the excess may be carried forward and applied
19		against the taxpayer's liability under this Section in the
20		succeeding calendar years as allowed to be carried forward
21		under paragraph (4) of Section 211 of this Act. The credit or
22		credits shall be applied to the earliest year for which there
23		is a tax liability. If there are credits from more than one
24		taxable year that are available to offset a liability, the
25		earlier credit shall be applied first. Each employer who
26		deducts and withholds or is required to deduct and withhold

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1		tax under this Act and who retains income tax withholdings
2		under subsection (f) of Section 5-15 of the Economic
3		Development for a Growing Economy Tax Credit Act must make a
4		return with respect to such taxes and retained amounts in the
5		form and manner that the Department, by rule, requires and pay
6		to the Department or to a depositary designated by the
7		Department those withheld taxes not retained by the taxpayer.
8		For purposes of this subsection (g), the term taxpayer shall
9		include taxpayer and members of the taxpayer's unitary
10		business group as defined under paragraph (27) of subsection
11		(a) of Section 1501 of this Act. This Section is exempt from
12		the provisions of Section 250 of this Act. No credit awarded
13		under the Economic Development for a Growing Economy Tax
14		Credit Act for agreements entered into on or after January 1,
15		2015 may be credited against payments due under this Section.
16		(g-1) For amounts deducted or withheld after December 31,
17		2024, a taxpayer who makes an election under the Reimagining
18		Energy and Vehicles in Illinois Act shall be allowed a credit
19		against payments due under this Section for amounts withheld
20		during the first quarterly reporting period beginning after
21		the certificate is issued equal to the portion of the REV
22		Illinois Credit attributable to the incremental income tax
23		attributable to new employees and retained employees as
24		certified by the Department of Commerce and Economic
25		Opportunity pursuant to an agreement with the taxpayer under
26		the Reimagining Energy and Vehicles in Illinois Act for the

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1		taxable year. The credit or credits may not reduce the
2		taxpayer's obligation for any payment due under this Section
3		to less than zero. If the amount of the credit or credits
4		exceeds the total payments due under this Section with respect
5		to amounts withheld during the quarterly reporting period, the
6		excess may be carried forward and applied against the
7		taxpayer's liability under this Section in the succeeding
8		quarterly reporting period as allowed to be carried forward
9		under paragraph (4) of Section 211 of this Act. The credit or
10		credits shall be applied to the earliest quarterly reporting
11		period for which there is a tax liability. If there are credits
12		from more than one quarterly reporting period that are
13		available to offset a liability, the earlier credit shall be
14		applied first. Each employer who deducts and withholds or is
15		required to deduct and withhold tax under this Act and who
16		retains income tax withholdings this subsection must make a
17		return with respect to such taxes and retained amounts in the
18		form and manner that the Department, by rule, requires and pay
19		to the Department or to a depositary designated by the
20		Department those withheld taxes not retained by the taxpayer.
21		For purposes of this subsection (g-1), the term taxpayer shall
22		include taxpayer and members of the taxpayer's unitary
23		business group as defined under paragraph (27) of subsection
24		(a) of Section 1501 of this Act. This Section is exempt from
25		the provisions of Section 250 of this Act.
26		(g-2) For amounts deducted or withheld after December 31,

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1		2024, a taxpayer who makes an election under the Manufacturing
2		Illinois Chips for Real Opportunity (MICRO) Act shall be
3		allowed a credit against payments due under this Section for
4		amounts withheld during the first quarterly reporting period
5		beginning after the certificate is issued equal to the portion
6		of the MICRO Illinois Credit attributable to the incremental
7		income tax attributable to new employees and retained
8		employees as certified by the Department of Commerce and
9		Economic Opportunity pursuant to an agreement with the
10		taxpayer under the Manufacturing Illinois Chips for Real
11		Opportunity (MICRO) Act for the taxable year. The credit or
12		credits may not reduce the taxpayer's obligation for any
13		payment due under this Section to less than zero. If the amount
14		of the credit or credits exceeds the total payments due under
15		this Section with respect to amounts withheld during the
16		quarterly reporting period, the excess may be carried forward
17		and applied against the taxpayer's liability under this
18		Section in the succeeding quarterly reporting period as
19		allowed to be carried forward under paragraph (4) of Section
20		211 of this Act. The credit or credits shall be applied to the
21		earliest quarterly reporting period for which there is a tax
22		liability. If there are credits from more than one quarterly
23		reporting period that are available to offset a liability, the
24		earlier credit shall be applied first. Each employer who
25		deducts and withholds or is required to deduct and withhold
26		tax under this Act and who retains income tax withholdings

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1		this subsection must make a return with respect to such taxes
2		and retained amounts in the form and manner that the
3		Department, by rule, requires and pay to the Department or to a
4		depositary designated by the Department those withheld taxes
5		not retained by the taxpayer. For purposes of this subsection,
6		the term taxpayer shall include taxpayer and members of the
7		taxpayer's unitary business group as defined under paragraph
8		(27) of subsection (a) of Section 1501 of this Act. This
9		Section is exempt from the provisions of Section 250 of this
10		Act.
11		(h) An employer may claim a credit against payments due
12		under this Section for amounts withheld during the first
13		calendar year ending after the date on which a tax credit
14		certificate was issued under Section 35 of the Small Business
15		Job Creation Tax Credit Act. The credit shall be equal to the
16		amount shown on the certificate, but may not reduce the
17		taxpayer's obligation for any payment due under this Section
18		to less than zero. If the amount of the credit exceeds the
19		total payments due under this Section with respect to amounts
20		withheld during the calendar year, the excess may be carried
21		forward and applied against the taxpayer's liability under
22		this Section in the 5 succeeding calendar years. The credit
23		shall be applied to the earliest year for which there is a tax
24		liability. If there are credits from more than one calendar
25		year that are available to offset a liability, the earlier
26		credit shall be applied first. This Section is exempt from the

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1		provisions of Section 250 of this Act.
2		(i) Each employer with 50 or fewer full-time equivalent
3		employees during the reporting period may claim a credit
4		against the payments due under this Section for each qualified
5		employee in an amount equal to the maximum credit allowable.
6		The credit may be taken against payments due for reporting
7		periods that begin on or after January 1, 2020, and end on or
8		before December 31, 2027. An employer may not claim a credit
9		for an employee who has worked fewer than 90 consecutive days
10		immediately preceding the reporting period; however, such
11		credits may accrue during that 90-day period and be claimed
12		against payments under this Section for future reporting
13		periods after the employee has worked for the employer at
14		least 90 consecutive days. In no event may the credit exceed
15		the employer's liability for the reporting period. Each
16		employer who deducts and withholds or is required to deduct
17		and withhold tax under this Act and who retains income tax
18		withholdings under this subsection must make a return with
19		respect to such taxes and retained amounts in the form and
20		manner that the Department, by rule, requires and pay to the
21		Department or to a depositary designated by the Department
22		those withheld taxes not retained by the employer.
23		For each reporting period, the employer may not claim a
24		credit or credits for more employees than the number of
25		employees making less than the minimum or reduced wage for the
26		current calendar year during the last reporting period of the

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1		preceding calendar year. Notwithstanding any other provision
2		of this subsection, an employer shall not be eligible for
3		credits for a reporting period unless the average wage paid by
4		the employer per employee for all employees making less than
5		$55,000 during the reporting period is greater than the
6		average wage paid by the employer per employee for all
7		employees making less than $55,000 during the same reporting
8		period of the prior calendar year.
9		For purposes of this subsection (i):
10		"Compensation paid in Illinois" has the meaning ascribed
11		to that term under Section 304(a)(2)(B) of this Act.
12		"Employer" and "employee" have the meaning ascribed to
13		those terms in the Minimum Wage Law, except that "employee"
14		also includes employees who work for an employer with fewer
15		than 4 employees. Employers that operate more than one
16		establishment pursuant to a franchise agreement or that
17		constitute members of a unitary business group shall aggregate
18		their employees for purposes of determining eligibility for
19		the credit.
20		"Full-time equivalent employees" means the ratio of the
21		number of paid hours during the reporting period and the
22		number of working hours in that period.
23		"Maximum credit" means the percentage listed below of the
24		difference between the amount of compensation paid in Illinois
25		to employees who are paid not more than the required minimum
26		wage reduced by the amount of compensation paid in Illinois to

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1		employees who were paid less than the current required minimum
2		wage during the reporting period prior to each increase in the
3		required minimum wage on January 1. If an employer pays an
4		employee more than the required minimum wage and that employee
5		previously earned less than the required minimum wage, the
6		employer may include the portion that does not exceed the
7		required minimum wage as compensation paid in Illinois to
8		employees who are paid not more than the required minimum
9		wage.
10		(1) 25% for reporting periods beginning on or after
11		January 1, 2020 and ending on or before December 31, 2020;
12		(2) 21% for reporting periods beginning on or after
13		January 1, 2021 and ending on or before December 31, 2021;
14		(3) 17% for reporting periods beginning on or after
15		January 1, 2022 and ending on or before December 31, 2022;
16		(4) 13% for reporting periods beginning on or after
17		January 1, 2023 and ending on or before December 31, 2023;
18		(5) 9% for reporting periods beginning on or after
19		January 1, 2024 and ending on or before December 31, 2024;
20		(6) 5% for reporting periods beginning on or after
21		January 1, 2025 and ending on or before December 31, 2025.
22		The amount computed under this subsection may continue to
23		be claimed for reporting periods beginning on or after January
24		1, 2026 and:
25		(A) ending on or before December 31, 2026 for
26		employers with more than 5 employees; or

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1		(B) ending on or before December 31, 2027 for
2		employers with no more than 5 employees.
3		"Qualified employee" means an employee who is paid not
4		more than the required minimum wage and has an average wage
5		paid per hour by the employer during the reporting period
6		equal to or greater than his or her average wage paid per hour
7		by the employer during each reporting period for the
8		immediately preceding 12 months. A new qualified employee is
9		deemed to have earned the required minimum wage in the
10		preceding reporting period.
11		"Reporting period" means the quarter for which a return is
12		required to be filed under subsection (b) of this Section.
13		(j) For reporting periods beginning on or after January 1,
14		2023, if a private employer grants all of its employees the
15		option of taking a paid leave of absence of at least 30 days
16		for the purpose of serving as an organ donor or bone marrow
17		donor, then the private employer may take a credit against the
18		payments due under this Section in an amount equal to the
19		amount withheld under this Section with respect to wages paid
20		while the employee is on organ donation leave, not to exceed
21		$1,000 in withholdings for each employee who takes organ
22		donation leave. To be eligible for the credit, such a leave of
23		absence must be taken without loss of pay, vacation time,
24		compensatory time, personal days, or sick time for at least
25		the first 30 days of the leave of absence. The private employer
26		shall adopt rules governing organ donation leave, including

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1		rules that (i) establish conditions and procedures for
2		requesting and approving leave and (ii) require medical
3		documentation of the proposed organ or bone marrow donation
4		before leave is approved by the private employer. A private
5		employer must provide, in the manner required by the
6		Department, documentation from the employee's medical
7		provider, which the private employer receives from the
8		employee, that verifies the employee's organ donation. The
9		private employer must also provide, in the manner required by
10		the Department, documentation that shows that a qualifying
11		organ donor leave policy was in place and offered to all
12		qualifying employees at the time the leave was taken. For the
13		private employer to receive the tax credit, the employee
14		taking organ donor leave must allow for the applicable medical
15		records to be disclosed to the Department. If the private
16		employer cannot provide the required documentation to the
17		Department, then the private employer is ineligible for the
18		credit under this Section. A private employer must also
19		provide, in the form required by the Department, any
20		additional documentation or information required by the
21		Department to administer the credit under this Section. The
22		credit under this subsection (j) shall be taken within one
23		year after the date upon which the organ donation leave
24		begins. If the leave taken spans into a second tax year, the
25		employer qualifies for the allowable credit in the later of
26		the 2 years. If the amount of credit exceeds the tax liability

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1		for the year, the excess may be carried and applied to the tax
2		liability for the 3 taxable years following the excess credit
3		year. The tax credit shall be applied to the earliest year for
4		which there is a tax liability. If there are credits for more
5		than one year that are available to offset liability, the
6		earlier credit shall be applied first.
7		Nothing in this subsection (j) prohibits a private
8		employer from providing an unpaid leave of absence to its
9		employees for the purpose of serving as an organ donor or bone
10		marrow donor; however, if the employer's policy provides for
11		fewer than 30 days of paid leave for organ or bone marrow
12		donation, then the employer shall not be eligible for the
13		credit under this Section.
14		As used in this subsection (j):
15		"Organ" means any biological tissue of the human body that
16		may be donated by a living donor, including, but not limited
17		to, the kidney, liver, lung, pancreas, intestine, bone, skin,
18		or any subpart of those organs.
19		"Organ donor" means a person from whose body an organ is
20		taken to be transferred to the body of another person.
21		"Private employer" means a sole proprietorship,
22		corporation, partnership, limited liability company, or other
23		entity with one or more employees. "Private employer" does not
24		include a municipality, county, State agency, or other public
25		employer.
26		This subsection (j) is exempt from the provisions of

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1		Section 250 of this Act.
2		(k) A taxpayer who is issued a certificate under the Local
3		Journalism Sustainability Act for a taxable year shall be
4		allowed a credit against payments due under this Section as
5		provided in that Act.
6		(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21;
7		102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700,
8		Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff.
9		2-3-23.)
10		ARTICLE 45.
11		Section 45-5. The Live Theater Production Tax Credit Act
12		is amended by changing Sections 10-10, 10-20, and 10-40 as
13		follows:
14		(35 ILCS 17/10-10)
15		Sec. 10-10. Definitions. As used in this Act:
16		"Accredited theater production" means a for-profit live
17		stage presentation in a qualified production facility, as
18		defined in this Section, that is either (i) a pre-Broadway
19		production or (ii) a long-run production for which the
20		aggregate Illinois labor and marketing expenditures exceed
21		$100,000. For credits awarded under this Act on or after July
22		1, 2022 in State Fiscal Year 2023, "accredited theater
23		production" also includes any commercial Broadway touring

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1		show. For credits awarded under this Act on or after July 1,
2		2024, "accredited theater production" also includes non-profit
3		theater productions.
4		"Commercial Broadway touring show" means a production that
5		(i) is performed in a qualified production facility and plays
6		in more than 2 other markets in North America outside of
7		Illinois within 12 months of its Illinois presentation and
8		(ii) has Illinois production spending of not less than
9		$100,000, as shown on the applicant's application for the
10		credit.
11		"Pre-Broadway production" means a live stage production
12		that, (i) in its original or adaptive version, is performed in
13		a qualified production facility with the goal of having a
14		presentation scheduled for Broadway's Theater District in New
15		York City within 12 months after its Illinois presentation and
16		(ii) has Illinois production spending of not less than
17		$100,000, as shown on the applicant's application for the
18		credit.
19		"Long-run production" means a live stage production that
20		is performed in a qualified production facility for longer
21		than 8 weeks, with at least 6 performances per week, and
22		includes a production that spans the end of one tax year and
23		the commencement of a new tax year that, in combination, meets
24		the criteria set forth in this definition making it a long-run
25		production eligible for a theater tax credit award in each tax
26		year or portion thereof.

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1		"Non-profit theater production" means a live stage
2		production that is at least 75 minutes in length with a written
3		script that (i) is produced by a 501(c)3 non-profit registered
4		in the State of Illinois for at least 5 years, (ii) has
5		Illinois production spending of not less than $10,000, as
6		shown on the applicant's application for the credit, and (iii)
7		has a minimum annual operating budget of $25,000 or more, as
8		shown on the applicant's application for the credit.
9		"Accredited theater production certificate" means a
10		certificate issued by the Department certifying that the
11		production is an accredited theater production that meets the
12		guidelines of this Act.
13		"Applicant" means a taxpayer that is a theater producer,
14		owner, licensee, operator, or presenter that is presenting or
15		has presented a live stage presentation located within the
16		State of Illinois who:
17		(1) owns or licenses the theatrical rights of the
18		stage presentation for the Illinois production period; or
19		(2) has contracted or will contract directly with the
20		owner or licensee of the theatrical rights or a person
21		acting on behalf of the owner or licensee to provide live
22		performances of the production.
23		An applicant that directly or indirectly owns, controls,
24		or operates multiple qualified production facilities shall be
25		presumed to be and considered for the purposes of this Act to
26		be a single applicant; provided, however, that as to each of

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1		the applicant's qualified production facilities, the applicant
2		shall be eligible to separately and contemporaneously (i)
3		apply for and obtain accredited theater production
4		certificates, (ii) stage accredited theater productions, and
5		(iii) apply for and receive a tax credit award certificate for
6		each of the applicant's accredited theater productions
7		performed at each of the applicant's qualified production
8		facilities.
9		"Department" means the Department of Commerce and Economic
10		Opportunity.
11		"Director" means the Director of the Department.
12		"Illinois labor expenditure" means gross salary or wages
13		including, but not limited to, taxes, benefits, and any other
14		consideration incurred or paid to non-talent employees of the
15		applicant for services rendered to and on behalf of the
16		accredited theater production. To qualify as an Illinois labor
17		expenditure, the expenditure must be:
18		(1) incurred or paid by the applicant on or after the
19		effective date of the Act for services related to any
20		portion of an accredited theater production from its
21		pre-production stages, including, but not limited to, the
22		writing of the script, casting, hiring of service
23		providers, purchases from vendors, marketing, advertising,
24		public relations, load in, rehearsals, performances, other
25		accredited theater production related activities, and load
26		out;

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1		(2) directly attributable to the accredited theater
2		production;
3		(3) limited to the first $100,000 of wages incurred or
4		paid to each employee of an accredited theater production
5		in each tax year;
6		(4) included in the federal income tax basis of the
7		property;
8		(5) paid in the tax year for which the applicant is
9		claiming the tax credit award, or no later than 60 days
10		after the end of the tax year;
11		(6) paid to persons residing in Illinois at the time
12		payments were made; and
13		(7) reasonable in the circumstances.
14		"Illinois production spending" means any and all expenses
15		directly or indirectly incurred relating to an accredited
16		theater production presented in any qualified production
17		facility of the applicant, including, but not limited to,
18		expenditures for:
19		(1) national marketing, public relations, and the
20		creation and placement of print, electronic, television,
21		billboard, and other forms of advertising; and
22		(2) the construction and fabrication of scenic
23		materials and elements; provided, however, that the
24		maximum amount of expenditures attributable to the
25		construction and fabrication of scenic materials and
26		elements eligible for a tax credit award shall not exceed

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1		$500,000 per applicant per production in any single tax
2		year.
3		"Qualified production facility" means a facility located
4		in the State in which live theatrical productions are, or are
5		intended to be, exclusively presented that contains at least
6		one stage, a seating capacity of 1,200 or more seats or, if the
7		live theater production is a non-profit theater production, a
8		seating capacity of 50 or more seats, and dressing rooms,
9		storage areas, and other ancillary amenities necessary for the
10		accredited theater production.
11		"Tax credit award" means the issuance to a taxpayer by the
12		Department of a tax credit award in conformance with Sections
13		10-40 and 10-45 of this Act.
14		"Tax year" means a calendar year for the period January 1
15		to and including December 31.
16		(Source: P.A. 102-1112, eff. 12-21-22.)
17		(35 ILCS 17/10-20)
18		Sec. 10-20. Tax credit award. Subject to the conditions
19		set forth in this Act, an applicant is entitled to a tax credit
20		award as approved by the Department for qualifying Illinois
21		labor expenditures and Illinois production spending for each
22		tax year in which the applicant is awarded an accredited
23		theater production certificate issued by the Department. The
24		amount of tax credits awarded pursuant to this Act shall not
25		exceed $2,000,000 in any State fiscal year ending on or before

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1		June 30, 2022. The , except that the amount of tax credits
2		awarded pursuant to this Act for the State fiscal year ending
3		on June 30, 2023 or the State fiscal year ending on June 30,
4		2024 shall not exceed $4,000,000. For the State fiscal year
5		ending on June 30, 2023 and the State fiscal year ending on
6		June 30, 2024, no more than $2,000,000 in credits may be
7		awarded in either of those fiscal years to accredited theater
8		productions that are not commercial Broadway touring shows,
9		and no more than $2,000,000 in credits may be awarded in either
10		of those fiscal years to commercial Broadway touring shows.
11		For State fiscal years ending on or after June 30, 2025, the
12		amount of tax credits awarded under this Act shall not exceed
13		$6,000,000, with no more than $2,000,000 in credits awarded
14		for long-run productions and pre-Broadway productions, no more
15		than $2,000,000 in credits awarded for commercial Broadway
16		touring shows, and no more than $2,000,000 in credits awarded
17		for non-profit theater productions. In the case of credits
18		awarded under this Act for non-profit theater productions, no
19		more than $100,000 in credits may be awarded to any single
20		non-profit theater production. Credits shall be awarded on a
21		first-come, first-served basis. Notwithstanding the foregoing,
22		if the amount of credits applied for in any fiscal year exceeds
23		the amount authorized to be awarded under this Section, the
24		excess credit amount shall be awarded in the next fiscal year
25		in which credits remain available for award and shall be
26		treated as having been applied for on the first day of that

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1		fiscal year.
2		(Source: P.A. 102-700, eff. 4-19-22; 102-1112, eff. 12-21-22.)
3		(35 ILCS 17/10-40)
4		Sec. 10-40. Issuance of Tax Credit Award Certificate.
5		(a) In order to qualify for a tax credit award under this
6		Act, an applicant must file an application for each accredited
7		theater production at each of the applicant's qualified
8		production facilities, on forms prescribed by the Department,
9		providing information necessary to calculate the tax credit
10		award and any additional information as reasonably required by
11		the Department.
12		(b) Upon satisfactory review of the application, the
13		Department shall issue a tax credit award certificate stating
14		the amount of the tax credit award to which the applicant is
15		entitled for that tax year and shall contemporaneously notify
16		the applicant and Illinois Department of Revenue in accordance
17		with Section 222 of the Illinois Income Tax Act or, if the
18		applicant is a nonprofit theater production, subsection (k) of
19		Section 704A of the Illinois Income Tax Act, as applicable.
20		(Source: P.A. 97-636, eff. 6-1-12.)
21		Section 45-10. The Illinois Income Tax Act is amended by
22		changing Sections 222 and 704A as follows:
23		(35 ILCS 5/222)

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1		Sec. 222. Live theater production credit.
2		(a) For tax years beginning on or after January 1, 2012 and
3		beginning prior to January 1, 2027, a taxpayer who has
4		received a tax credit award under the Live Theater Production
5		Tax Credit Act for a long-run production, a pre-Broadway
6		production, or a commercial Broadway touring show is entitled
7		to a credit against the taxes imposed under subsections (a)
8		and (b) of Section 201 of this Act in an amount determined
9		under that Act by the Department of Commerce and Economic
10		Opportunity.
11		(b) For taxable years ending before December 31, 2023, if
12		the taxpayer is a partnership, limited liability partnership,
13		limited liability company, or Subchapter S corporation, the
14		tax credit award is allowed to the partners, unit holders, or
15		shareholders in accordance with the determination of income
16		and distributive share of income under Sections 702 and 704
17		and Subchapter S of the Internal Revenue Code. For taxable
18		years ending on or after December 31, 2023, if the taxpayer is
19		a partnership or Subchapter S corporation, then the provisions
20		of Section 251 apply.
21		(c) A sale, assignment, or transfer of the tax credit
22		award may be made by the taxpayer earning the credit within one
23		year after the credit is awarded in accordance with rules
24		adopted by the Department of Commerce and Economic
25		Opportunity.
26		(d) The Department of Revenue, in cooperation with the

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1		Department of Commerce and Economic Opportunity, shall adopt
2		rules to enforce and administer the provisions of this
3		Section.
4		(e) The tax credit award may not be carried back. If the
5		amount of the credit exceeds the tax liability for the year,
6		the excess may be carried forward and applied to the tax
7		liability of the 5 tax years following the excess credit year.
8		The tax credit award shall be applied to the earliest year for
9		which there is a tax liability. If there are credits from more
10		than one tax year that are available to offset liability, the
11		earlier credit shall be applied first. In no event may a credit
12		under this Section reduce the taxpayer's liability to less
13		than zero.
14		(Source: P.A. 102-16, eff. 6-17-21; 103-396, eff. 1-1-24.)
15		(35 ILCS 5/704A)
16		Sec. 704A. Employer's return and payment of tax withheld.
17		(a) In general, every employer who deducts and withholds
18		or is required to deduct and withhold tax under this Act on or
19		after January 1, 2008 shall make those payments and returns as
20		provided in this Section.
21		(b) Returns. Every employer shall, in the form and manner
22		required by the Department, make returns with respect to taxes
23		withheld or required to be withheld under this Article 7 for
24		each quarter beginning on or after January 1, 2008, on or
25		before the last day of the first month following the close of

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1		that quarter.
2		(c) Payments. With respect to amounts withheld or required
3		to be withheld on or after January 1, 2008:
4		(1) Semi-weekly payments. For each calendar year, each
5		employer who withheld or was required to withhold more
6		than $12,000 during the one-year period ending on June 30
7		of the immediately preceding calendar year, payment must
8		be made:
9		(A) on or before each Friday of the calendar year,
10		for taxes withheld or required to be withheld on the
11		immediately preceding Saturday, Sunday, Monday, or
12		Tuesday;
13		(B) on or before each Wednesday of the calendar
14		year, for taxes withheld or required to be withheld on
15		the immediately preceding Wednesday, Thursday, or
16		Friday.
17		Beginning with calendar year 2011, payments made under
18		this paragraph (1) of subsection (c) must be made by
19		electronic funds transfer.
20		(2) Semi-weekly payments. Any employer who withholds
21		or is required to withhold more than $12,000 in any
22		quarter of a calendar year is required to make payments on
23		the dates set forth under item (1) of this subsection (c)
24		for each remaining quarter of that calendar year and for
25		the subsequent calendar year.
26		(3) Monthly payments. Each employer, other than an

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1		employer described in items (1) or (2) of this subsection,
2		shall pay to the Department, on or before the 15th day of
3		each month the taxes withheld or required to be withheld
4		during the immediately preceding month.
5		(4) Payments with returns. Each employer shall pay to
6		the Department, on or before the due date for each return
7		required to be filed under this Section, any tax withheld
8		or required to be withheld during the period for which the
9		return is due and not previously paid to the Department.
10		(d) Regulatory authority. The Department may, by rule:
11		(1) Permit employers, in lieu of the requirements of
12		subsections (b) and (c), to file annual returns due on or
13		before January 31 of the year for taxes withheld or
14		required to be withheld during the previous calendar year
15		and, if the aggregate amounts required to be withheld by
16		the employer under this Article 7 (other than amounts
17		required to be withheld under Section 709.5) do not exceed
18		$1,000 for the previous calendar year, to pay the taxes
19		required to be shown on each such return no later than the
20		due date for such return.
21		(2) Provide that any payment required to be made under
22		subsection (c)(1) or (c)(2) is deemed to be timely to the
23		extent paid by electronic funds transfer on or before the
24		due date for deposit of federal income taxes withheld
25		from, or federal employment taxes due with respect to, the
26		wages from which the Illinois taxes were withheld.

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1		(3) Designate one or more depositories to which
2		payment of taxes required to be withheld under this
3		Article 7 must be paid by some or all employers.
4		(4) Increase the threshold dollar amounts at which
5		employers are required to make semi-weekly payments under
6		subsection (c)(1) or (c)(2).
7		(e) Annual return and payment. Every employer who deducts
8		and withholds or is required to deduct and withhold tax from a
9		person engaged in domestic service employment, as that term is
10		defined in Section 3510 of the Internal Revenue Code, may
11		comply with the requirements of this Section with respect to
12		such employees by filing an annual return and paying the taxes
13		required to be deducted and withheld on or before the 15th day
14		of the fourth month following the close of the employer's
15		taxable year. The Department may allow the employer's return
16		to be submitted with the employer's individual income tax
17		return or to be submitted with a return due from the employer
18		under Section 1400.2 of the Unemployment Insurance Act.
19		(f) Magnetic media and electronic filing. With respect to
20		taxes withheld in calendar years prior to 2017, any W-2 Form
21		that, under the Internal Revenue Code and regulations
22		promulgated thereunder, is required to be submitted to the
23		Internal Revenue Service on magnetic media or electronically
24		must also be submitted to the Department on magnetic media or
25		electronically for Illinois purposes, if required by the
26		Department.

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1		With respect to taxes withheld in 2017 and subsequent
2		calendar years, the Department may, by rule, require that any
3		return (including any amended return) under this Section and
4		any W-2 Form that is required to be submitted to the Department
5		must be submitted on magnetic media or electronically.
6		The due date for submitting W-2 Forms shall be as
7		prescribed by the Department by rule.
8		(g) For amounts deducted or withheld after December 31,
9		2009, a taxpayer who makes an election under subsection (f) of
10		Section 5-15 of the Economic Development for a Growing Economy
11		Tax Credit Act for a taxable year shall be allowed a credit
12		against payments due under this Section for amounts withheld
13		during the first calendar year beginning after the end of that
14		taxable year equal to the amount of the credit for the
15		incremental income tax attributable to full-time employees of
16		the taxpayer awarded to the taxpayer by the Department of
17		Commerce and Economic Opportunity under the Economic
18		Development for a Growing Economy Tax Credit Act for the
19		taxable year and credits not previously claimed and allowed to
20		be carried forward under Section 211(4) of this Act as
21		provided in subsection (f) of Section 5-15 of the Economic
22		Development for a Growing Economy Tax Credit Act. The credit
23		or credits may not reduce the taxpayer's obligation for any
24		payment due under this Section to less than zero. If the amount
25		of the credit or credits exceeds the total payments due under
26		this Section with respect to amounts withheld during the

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1		calendar year, the excess may be carried forward and applied
2		against the taxpayer's liability under this Section in the
3		succeeding calendar years as allowed to be carried forward
4		under paragraph (4) of Section 211 of this Act. The credit or
5		credits shall be applied to the earliest year for which there
6		is a tax liability. If there are credits from more than one
7		taxable year that are available to offset a liability, the
8		earlier credit shall be applied first. Each employer who
9		deducts and withholds or is required to deduct and withhold
10		tax under this Act and who retains income tax withholdings
11		under subsection (f) of Section 5-15 of the Economic
12		Development for a Growing Economy Tax Credit Act must make a
13		return with respect to such taxes and retained amounts in the
14		form and manner that the Department, by rule, requires and pay
15		to the Department or to a depositary designated by the
16		Department those withheld taxes not retained by the taxpayer.
17		For purposes of this subsection (g), the term taxpayer shall
18		include taxpayer and members of the taxpayer's unitary
19		business group as defined under paragraph (27) of subsection
20		(a) of Section 1501 of this Act. This Section is exempt from
21		the provisions of Section 250 of this Act. No credit awarded
22		under the Economic Development for a Growing Economy Tax
23		Credit Act for agreements entered into on or after January 1,
24		2015 may be credited against payments due under this Section.
25		(g-1) For amounts deducted or withheld after December 31,
26		2024, a taxpayer who makes an election under the Reimagining

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1		Energy and Vehicles in Illinois Act shall be allowed a credit
2		against payments due under this Section for amounts withheld
3		during the first quarterly reporting period beginning after
4		the certificate is issued equal to the portion of the REV
5		Illinois Credit attributable to the incremental income tax
6		attributable to new employees and retained employees as
7		certified by the Department of Commerce and Economic
8		Opportunity pursuant to an agreement with the taxpayer under
9		the Reimagining Energy and Vehicles in Illinois Act for the
10		taxable year. The credit or credits may not reduce the
11		taxpayer's obligation for any payment due under this Section
12		to less than zero. If the amount of the credit or credits
13		exceeds the total payments due under this Section with respect
14		to amounts withheld during the quarterly reporting period, the
15		excess may be carried forward and applied against the
16		taxpayer's liability under this Section in the succeeding
17		quarterly reporting period as allowed to be carried forward
18		under paragraph (4) of Section 211 of this Act. The credit or
19		credits shall be applied to the earliest quarterly reporting
20		period for which there is a tax liability. If there are credits
21		from more than one quarterly reporting period that are
22		available to offset a liability, the earlier credit shall be
23		applied first. Each employer who deducts and withholds or is
24		required to deduct and withhold tax under this Act and who
25		retains income tax withholdings this subsection must make a
26		return with respect to such taxes and retained amounts in the

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1		form and manner that the Department, by rule, requires and pay
2		to the Department or to a depositary designated by the
3		Department those withheld taxes not retained by the taxpayer.
4		For purposes of this subsection (g-1), the term taxpayer shall
5		include taxpayer and members of the taxpayer's unitary
6		business group as defined under paragraph (27) of subsection
7		(a) of Section 1501 of this Act. This Section is exempt from
8		the provisions of Section 250 of this Act.
9		(g-2) For amounts deducted or withheld after December 31,
10		2024, a taxpayer who makes an election under the Manufacturing
11		Illinois Chips for Real Opportunity (MICRO) Act shall be
12		allowed a credit against payments due under this Section for
13		amounts withheld during the first quarterly reporting period
14		beginning after the certificate is issued equal to the portion
15		of the MICRO Illinois Credit attributable to the incremental
16		income tax attributable to new employees and retained
17		employees as certified by the Department of Commerce and
18		Economic Opportunity pursuant to an agreement with the
19		taxpayer under the Manufacturing Illinois Chips for Real
20		Opportunity (MICRO) Act for the taxable year. The credit or
21		credits may not reduce the taxpayer's obligation for any
22		payment due under this Section to less than zero. If the amount
23		of the credit or credits exceeds the total payments due under
24		this Section with respect to amounts withheld during the
25		quarterly reporting period, the excess may be carried forward
26		and applied against the taxpayer's liability under this

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1		Section in the succeeding quarterly reporting period as
2		allowed to be carried forward under paragraph (4) of Section
3		211 of this Act. The credit or credits shall be applied to the
4		earliest quarterly reporting period for which there is a tax
5		liability. If there are credits from more than one quarterly
6		reporting period that are available to offset a liability, the
7		earlier credit shall be applied first. Each employer who
8		deducts and withholds or is required to deduct and withhold
9		tax under this Act and who retains income tax withholdings
10		this subsection must make a return with respect to such taxes
11		and retained amounts in the form and manner that the
12		Department, by rule, requires and pay to the Department or to a
13		depositary designated by the Department those withheld taxes
14		not retained by the taxpayer. For purposes of this subsection,
15		the term taxpayer shall include taxpayer and members of the
16		taxpayer's unitary business group as defined under paragraph
17		(27) of subsection (a) of Section 1501 of this Act. This
18		Section is exempt from the provisions of Section 250 of this
19		Act.
20		(h) An employer may claim a credit against payments due
21		under this Section for amounts withheld during the first
22		calendar year ending after the date on which a tax credit
23		certificate was issued under Section 35 of the Small Business
24		Job Creation Tax Credit Act. The credit shall be equal to the
25		amount shown on the certificate, but may not reduce the
26		taxpayer's obligation for any payment due under this Section

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1		to less than zero. If the amount of the credit exceeds the
2		total payments due under this Section with respect to amounts
3		withheld during the calendar year, the excess may be carried
4		forward and applied against the taxpayer's liability under
5		this Section in the 5 succeeding calendar years. The credit
6		shall be applied to the earliest year for which there is a tax
7		liability. If there are credits from more than one calendar
8		year that are available to offset a liability, the earlier
9		credit shall be applied first. This Section is exempt from the
10		provisions of Section 250 of this Act.
11		(i) Each employer with 50 or fewer full-time equivalent
12		employees during the reporting period may claim a credit
13		against the payments due under this Section for each qualified
14		employee in an amount equal to the maximum credit allowable.
15		The credit may be taken against payments due for reporting
16		periods that begin on or after January 1, 2020, and end on or
17		before December 31, 2027. An employer may not claim a credit
18		for an employee who has worked fewer than 90 consecutive days
19		immediately preceding the reporting period; however, such
20		credits may accrue during that 90-day period and be claimed
21		against payments under this Section for future reporting
22		periods after the employee has worked for the employer at
23		least 90 consecutive days. In no event may the credit exceed
24		the employer's liability for the reporting period. Each
25		employer who deducts and withholds or is required to deduct
26		and withhold tax under this Act and who retains income tax

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1		withholdings under this subsection must make a return with
2		respect to such taxes and retained amounts in the form and
3		manner that the Department, by rule, requires and pay to the
4		Department or to a depositary designated by the Department
5		those withheld taxes not retained by the employer.
6		For each reporting period, the employer may not claim a
7		credit or credits for more employees than the number of
8		employees making less than the minimum or reduced wage for the
9		current calendar year during the last reporting period of the
10		preceding calendar year. Notwithstanding any other provision
11		of this subsection, an employer shall not be eligible for
12		credits for a reporting period unless the average wage paid by
13		the employer per employee for all employees making less than
14		$55,000 during the reporting period is greater than the
15		average wage paid by the employer per employee for all
16		employees making less than $55,000 during the same reporting
17		period of the prior calendar year.
18		For purposes of this subsection (i):
19		"Compensation paid in Illinois" has the meaning ascribed
20		to that term under Section 304(a)(2)(B) of this Act.
21		"Employer" and "employee" have the meaning ascribed to
22		those terms in the Minimum Wage Law, except that "employee"
23		also includes employees who work for an employer with fewer
24		than 4 employees. Employers that operate more than one
25		establishment pursuant to a franchise agreement or that
26		constitute members of a unitary business group shall aggregate

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1		their employees for purposes of determining eligibility for
2		the credit.
3		"Full-time equivalent employees" means the ratio of the
4		number of paid hours during the reporting period and the
5		number of working hours in that period.
6		"Maximum credit" means the percentage listed below of the
7		difference between the amount of compensation paid in Illinois
8		to employees who are paid not more than the required minimum
9		wage reduced by the amount of compensation paid in Illinois to
10		employees who were paid less than the current required minimum
11		wage during the reporting period prior to each increase in the
12		required minimum wage on January 1. If an employer pays an
13		employee more than the required minimum wage and that employee
14		previously earned less than the required minimum wage, the
15		employer may include the portion that does not exceed the
16		required minimum wage as compensation paid in Illinois to
17		employees who are paid not more than the required minimum
18		wage.
19		(1) 25% for reporting periods beginning on or after
20		January 1, 2020 and ending on or before December 31, 2020;
21		(2) 21% for reporting periods beginning on or after
22		January 1, 2021 and ending on or before December 31, 2021;
23		(3) 17% for reporting periods beginning on or after
24		January 1, 2022 and ending on or before December 31, 2022;
25		(4) 13% for reporting periods beginning on or after
26		January 1, 2023 and ending on or before December 31, 2023;

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1		(5) 9% for reporting periods beginning on or after
2		January 1, 2024 and ending on or before December 31, 2024;
3		(6) 5% for reporting periods beginning on or after
4		January 1, 2025 and ending on or before December 31, 2025.
5		The amount computed under this subsection may continue to
6		be claimed for reporting periods beginning on or after January
7		1, 2026 and:
8		(A) ending on or before December 31, 2026 for
9		employers with more than 5 employees; or
10		(B) ending on or before December 31, 2027 for
11		employers with no more than 5 employees.
12		"Qualified employee" means an employee who is paid not
13		more than the required minimum wage and has an average wage
14		paid per hour by the employer during the reporting period
15		equal to or greater than his or her average wage paid per hour
16		by the employer during each reporting period for the
17		immediately preceding 12 months. A new qualified employee is
18		deemed to have earned the required minimum wage in the
19		preceding reporting period.
20		"Reporting period" means the quarter for which a return is
21		required to be filed under subsection (b) of this Section.
22		(j) For reporting periods beginning on or after January 1,
23		2023, if a private employer grants all of its employees the
24		option of taking a paid leave of absence of at least 30 days
25		for the purpose of serving as an organ donor or bone marrow
26		donor, then the private employer may take a credit against the

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1		payments due under this Section in an amount equal to the
2		amount withheld under this Section with respect to wages paid
3		while the employee is on organ donation leave, not to exceed
4		$1,000 in withholdings for each employee who takes organ
5		donation leave. To be eligible for the credit, such a leave of
6		absence must be taken without loss of pay, vacation time,
7		compensatory time, personal days, or sick time for at least
8		the first 30 days of the leave of absence. The private employer
9		shall adopt rules governing organ donation leave, including
10		rules that (i) establish conditions and procedures for
11		requesting and approving leave and (ii) require medical
12		documentation of the proposed organ or bone marrow donation
13		before leave is approved by the private employer. A private
14		employer must provide, in the manner required by the
15		Department, documentation from the employee's medical
16		provider, which the private employer receives from the
17		employee, that verifies the employee's organ donation. The
18		private employer must also provide, in the manner required by
19		the Department, documentation that shows that a qualifying
20		organ donor leave policy was in place and offered to all
21		qualifying employees at the time the leave was taken. For the
22		private employer to receive the tax credit, the employee
23		taking organ donor leave must allow for the applicable medical
24		records to be disclosed to the Department. If the private
25		employer cannot provide the required documentation to the
26		Department, then the private employer is ineligible for the

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1		credit under this Section. A private employer must also
2		provide, in the form required by the Department, any
3		additional documentation or information required by the
4		Department to administer the credit under this Section. The
5		credit under this subsection (j) shall be taken within one
6		year after the date upon which the organ donation leave
7		begins. If the leave taken spans into a second tax year, the
8		employer qualifies for the allowable credit in the later of
9		the 2 years. If the amount of credit exceeds the tax liability
10		for the year, the excess may be carried and applied to the tax
11		liability for the 3 taxable years following the excess credit
12		year. The tax credit shall be applied to the earliest year for
13		which there is a tax liability. If there are credits for more
14		than one year that are available to offset liability, the
15		earlier credit shall be applied first.
16		Nothing in this subsection (j) prohibits a private
17		employer from providing an unpaid leave of absence to its
18		employees for the purpose of serving as an organ donor or bone
19		marrow donor; however, if the employer's policy provides for
20		fewer than 30 days of paid leave for organ or bone marrow
21		donation, then the employer shall not be eligible for the
22		credit under this Section.
23		As used in this subsection (j):
24		"Organ" means any biological tissue of the human body that
25		may be donated by a living donor, including, but not limited
26		to, the kidney, liver, lung, pancreas, intestine, bone, skin,

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1		or any subpart of those organs.
2		"Organ donor" means a person from whose body an organ is
3		taken to be transferred to the body of another person.
4		"Private employer" means a sole proprietorship,
5		corporation, partnership, limited liability company, or other
6		entity with one or more employees. "Private employer" does not
7		include a municipality, county, State agency, or other public
8		employer.
9		This subsection (j) is exempt from the provisions of
10		Section 250 of this Act.
11		(k) For reporting periods beginning on or after January 1,
12		2025 and before January 1, 2027, an employer may claim a credit
13		against payments due under this Section for amounts withheld
14		during the first reporting period to occur after the date on
15		which a tax credit certificate is issued for a non-profit
16		theater production under Section 10 of the Live Theater
17		Production Tax Credit Act. The credit shall be equal to the
18		amount shown on the certificate, but may not reduce the
19		taxpayer's obligation for any payment due under this Article
20		to less than zero. If the amount of the credit exceeds the
21		total amount due under this Article with respect to amounts
22		withheld during the first reporting period to occur after the
23		date on which a tax credit certificate is issued, the excess
24		may be carried forward and applied against the taxpayer's
25		liability under this Section for reporting periods that occur
26		in the 5 succeeding calendar years. The excess credit shall be

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1		applied to the earliest reporting period for which there is a
2		payment due under this Article. If there are credits from more
3		than one reporting period that are available to offset a
4		liability, the earlier credit shall be applied first. The
5		Department of Revenue, in cooperation with the Department of
6		Commerce and Economic Opportunity, shall adopt rules to
7		enforce and administer the provisions of this subsection.
8		(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21;
9		102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700,
10		Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff.
11		2-3-23.)
12		ARTICLE 50.
13		Section 50-1. Short title. This Act may be cited as the
14		Music and Musicians Tax Credit and Jobs Act. References in
15		this Article to "this Act" mean this Article.
16		Section 50-5. Purpose. The State's economy depends heavily
17		on music, professional musicians, music teachers, and
18		educators. Illinois is a cultural crown jewel of the United
19		States. Illinois and Chicago boast a robust history and
20		community of creative artists, writers, musicians, architects,
21		orchestras, live music and entertainment venues, civic operas,
22		recording studios, and universities. The COVID-19 pandemic and
23		the economic fallout that ensued brought on especially

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1		difficult circumstances for the live entertainment industry at
2		large. Throughout the State, this has meant the closure of and
3		overall decrease in culturally engaging aspects of Illinois
4		cities from Cairo to Chicago.
5		According to the Americans for the Arts Action Fund, arts
6		and culture represent 3.1% of the State's gross domestic
7		product and 190,078 jobs. In fact, in 2020, Illinois arts and
8		culture was larger than the State's agriculture industry. In
9		2015, nonprofit arts organizations in the State generated
10		$4,000,000,000 in economic activity that supported 111,068
11		jobs and generated $478,500,000 in State and local government
12		revenue. In Chicago specifically, nonprofit arts groups
13		generated $3,200,000,000 in total economic activity and
14		$336,500,000 in State and local government revenue. Audiences
15		exceeded 36,000,000 people.
16		Yet, during the COVID-19 pandemic, the arts suffered. As a
17		result, Illinois arts and culture value added decreased by 9%
18		between 2019 and 2020 and employment decreased by 12%.
19		Ultimately, $3,200,000,000 and 26,644 jobs were lost. Even as
20		live performances have resumed, audience sizes remain below
21		pre-pandemic levels. Regional theaters, local orchestras,
22		opera houses, and performing arts organizations are reporting
23		persistent drops in attendance.
24		It is the policy of this State to promote and encourage the
25		training and hiring of Illinois residents who represent the
26		diversity of the Illinois population through the creation and

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1		implementation of training, education, and recruitment
2		programs organized in cooperation with Illinois colleges and
3		universities, labor organizations, and the commercial
4		for-profit music industry.
5		Section 50-10. Definitions.
6		"Department" means the Department of Commerce and Economic
7		Opportunity.
8		"Expenditure in the State" means (i) an expenditure to
9		acquire, from a source within the State, property that is
10		subject to tax under the Use Tax Act, the Service Use Tax Act,
11		the Service Occupation Tax Act, or the Retailers' Occupation
12		Tax Act or (ii) an expenditure for compensation for services
13		performed within the State that is subject to State income tax
14		under the Illinois Income Tax Act.
15		"Illinois labor expenditure" means gross salary or wages,
16		including, but not limited to, taxes, benefits, and any other
17		consideration incurred or paid to artist employees of the
18		applicant for services rendered to and on behalf of the
19		qualified music company, provided that the expenditure is:
20		(1) incurred or paid by the applicant on or after the
21		effective date of this Act for services related to any
22		portion of a qualified music company from rehearsals,
23		performances, and any other qualified music company
24		related activities;
25		(2) limited to the first $100,000 of wages incurred or

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1		paid to each employee of a qualified music production in
2		each tax year;
3		(3) paid in the tax year for which the applicant is
4		claiming the tax credit award;
5		(4) paid to persons residing in Illinois at the time
6		payments were made; and
7		(5) reasonable under the circumstances.
8		"Qualified music company" means an entity that (i) is
9		authorized to do business in Illinois, (ii) is engaged
10		directly or indirectly in the production, distribution, or
11		promotion of music, (iii) is certified by the Department as
12		meeting the eligibility requirements of this Act, and (iv) has
13		executed a contract with the Department providing the terms
14		and conditions for its participation.
15		"Qualified music company payroll" or "QMC payroll" means
16		wages reported by the qualified music company in box 1 of each
17		W-2 form prepared for an employee of the qualified music
18		company who is an Illinois resident.
19		"Resident copyright" means the copyright of a musical
20		composition written by an Illinois resident or owned by an
21		Illinois-domiciled music company, as evidenced by documents of
22		ownership, including, but not limited to, registration with
23		the United States Copyright Office.
24		"Sound recording" means a recording of music, poetry, or a
25		spoken-word performance made, in whole or in part, in
26		Illinois. "Sound recording" does not include the audio

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1		portions of dialogue or words spoken and recorded as part of
2		television news coverage or athletic events.
3		"Sound recording production company" means a company
4		engaged in the business of producing sound recordings. "Sound
5		recording production company" does not include any person or
6		company, or any company owned, affiliated, or controlled, in
7		whole or in part, by any company or person, that is in default
8		on a loan made by the State or a loan guaranteed by the State,
9		nor which has ever declared bankruptcy under which an
10		obligation of the company or person to pay or repay public
11		funds or moneys was discharged as a part of the bankruptcy.
12		"State-certified production" means a sound recording
13		production, or a series of productions, including but not
14		limited to master and demonstration recordings, occurring over
15		the course of a 12-month period, and the base
16		production-related investment that is approved by the
17		Department within 180 days after receipt by the Department of
18		a complete application for initial certification of a
19		production. If the production is not approved within 180 days,
20		the Department shall provide a written report to the Senate
21		Executive Committee and the House Executive Committee that
22		states the reason why the production has not been approved.
23		"Tax credit award" means the issuance to a taxpayer by the
24		Department of a tax credit award against the taxes imposed by
25		subsections (a) and (b) of Section 201 of the Illinois Income
26		Tax Act as provided in this Act.

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1		Section 50-15. Powers of the Department. The Department,
2		in addition to those powers granted under the Civil
3		Administrative Code of Illinois, is granted and has all the
4		powers necessary or convenient to carry out and effectuate the
5		purposes and provisions of this Act, including, but not
6		limited to, the power and authority to:
7		(1) adopt rules that are necessary and appropriate for
8		the administration of this Act;
9		(2) establish forms for applications, notifications,
10		contracts, or any other agreements with respect to tax
11		credits under this Act and to accept applications for tax
12		credits under this Act at any time during the year;
13		(3) assist applicants for tax credits under this Act
14		to promote, foster, and support sound recording and live
15		theater development and production and its related job
16		creation or retention within the State;
17		(4) gather information and conduct inquiries, as
18		provided in this Act, required for the Department to
19		comply with the provisions of this Act and, without
20		limitation, to obtain information with respect to
21		applicants for the purpose of making any designations or
22		certifications necessary or desirable to assist the
23		Department with any recommendation or guidance in the
24		furtherance of the purposes of this Act and relating to
25		applicants' participation in training, education, and

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1		recruitment programs that are organized in cooperation
2		with Illinois colleges and universities or labor
3		organizations designed to promote and encourage the
4		training and hiring of Illinois residents who represent
5		the diversity of the Illinois population;
6		(5) provide for sufficient personnel to permit
7		administrative, staffing, operating, and related support
8		required to adequately discharge the Department's duties
9		and responsibilities under this Act from funds as may be
10		appropriated by the General Assembly for the
11		administration of this Act; and
12		(6) require that the applicant at all times keep
13		proper books and records of accounts relating to the tax
14		credit award, in accordance with generally accepted
15		accounting principles consistently applied, and make those
16		books and records available for reasonable Department
17		inspection and audit, upon reasonable written request by
18		the Department, during the applicant's normal business
19		hours. Any documents or data made available to the
20		Department or received by the Department from the
21		applicant by any agent, employee, officer, or service
22		provider shall be deemed confidential and shall not
23		constitute public records to the extent that the documents
24		or data consist of commercial or financial information
25		regarding the operation by the applicant of any theater or
26		any accredited theater production or any recipient of any

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1		tax credit award under this Act.
2		Section 50-20. Application for certification of qualified
3		music company. Any applicant that operates a qualified music
4		company located in the State or is proposing to operate a
5		qualified music company in the State may apply to the
6		Department to have the qualified music company certified by
7		the Department as a qualified music company.
8		Section 50-25. Review of applications for qualified music
9		company certificates.
10		(a) The Department shall issue a qualified music company
11		certificate to an applicant if it finds that a preponderance
12		of the following conditions exists:
13		(1) the applicant is engaged directly or indirectly in
14		the production, distribution, and promotion of music;
15		(2) the applicant intends to make the expenditure in
16		the State required for certification of the qualified
17		music company;
18		(3) the applicant's qualified music company is
19		economically sound and will benefit the people of the
20		State of Illinois by increasing opportunities for
21		employment and will strengthen the economy of Illinois;
22		(4) the following requirements related to the
23		implementation of a diversity plan have been met:
24		(A) the applicant has filed with the Department a

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1		diversity plan outlining specific goals for hiring
2		Illinois labor expenditure eligible minority persons
3		and women, as defined in the Business Enterprise for
4		Minorities, Women, and Persons with Disabilities Act,
5		and for using vendors receiving certification under
6		the Business Enterprise for Minorities, Women, and
7		Persons with Disabilities Act;
8		(B) the Department has approved the plan as
9		meeting the requirements established by the Department
10		and verified that the applicant has met or made good
11		faith efforts in achieving those goals; and
12		(C) the Department has adopted any rules that are
13		necessary to ensure compliance with the provisions set
14		forth in this paragraph (4) and any rules that are
15		necessary to show that the applicant's plan reflects
16		the diversity of the population of this State;
17		(5) the applicant's qualified music company
18		application indicates whether the applicant intends to
19		participate in training, education, and recruitment
20		programs that are organized in cooperation with Illinois
21		colleges and universities, labor organizations, and the
22		holders of qualified music company certificates and are
23		designed to promote and encourage the training and hiring
24		of Illinois residents who represent the diversity of
25		Illinois; and
26		(6) the tax credit award will result in an overall

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1		positive impact to the State, as determined by the
2		Department using the best available data.
3		(b) If any of the provisions in this Section conflict with
4		any existing collective bargaining agreements, the terms and
5		conditions of those collective bargaining agreements shall
6		control.
7		(c) The Department shall act expeditiously regarding
8		approval of applications for qualified music companies so as
9		to accommodate the operations and needs of those companies.
10		Section 50-30. Training programs for skills in critical
11		demand. To accomplish the purposes of this Act, the Department
12		may use the training programs provided under Section 605-800
13		of the Department of Commerce and Economic Opportunity Law of
14		the Civil Administrative Code of Illinois.
15		Section 50-35. Issuance of tax credit award certificate.
16		(a) In order to qualify for a tax credit award under this
17		Act, an applicant must file an application for each qualified
18		music company at each of the applicant's qualified facilities,
19		on forms prescribed by the Department, providing information
20		necessary to calculate the tax credit award and any additional
21		information as reasonably required by the Department.
22		(b) Upon satisfactory review of the application, the
23		Department shall issue a tax credit award certificate stating
24		the amount of the tax credit award to which the applicant is

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1		entitled for that tax year and shall contemporaneously notify
2		the applicant and the Department of Revenue.
3		(c) For tax years beginning on or after January 1, 2025, a
4		taxpayer who has been awarded a tax credit under paragraph (b)
5		of this Section is entitled to a credit against the taxes
6		imposed under subsections (a) and (b) of Section 201 of the
7		Illinois Income Tax Act.
8		Section 50-40. Amount and payment of the tax credit award.
9		(a) For taxable years beginning on or after January 1,
10		2025, the Department may award tax credit awards to qualified
11		music companies. The award may not exceed 10% of the Illinois
12		labor expenditures for the State-certified production if the
13		QMC payroll of the qualified music company for the taxable
14		year does not exceed $150,000 or 15% of the Illinois labor
15		expenditures for the State-certified production if the QMC
16		payroll of the qualified music company for the taxable year
17		exceeds $150,000, plus all of the following:
18		(1) an additional 15% of the Illinois labor
19		expenditures for the State-certified production generated
20		by the employment of Illinois residents in geographic
21		areas of high poverty or high unemployment in each tax
22		year, as determined by the Department; and
23		(2) an additional 7% of the Illinois labor
24		expenditures for the State-certified production generated
25		by the employment of individuals who are employed at a

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1		wage of no less than the general prevailing hourly rate as
2		paid for work of a similar character in the locality in
3		which the work is performed; and
4		(3) an additional 7% of the Illinois labor
5		expenditures for the State-certified production incurred
6		by a qualified music company and spent on post-production
7		sound recording for television or film work completed in
8		Illinois.
9		(b) To the extent that the base investment by a qualified
10		music company is expended on a sound recording production of a
11		resident copyright, the investor shall be allowed an
12		additional 10% increase in the base investment rate.
13		(c) The aggregate amount of credits certified for all
14		investors pursuant to this Section during any calendar year
15		shall not exceed $2,000,000. No more than $200,000 in tax
16		credits may be granted per calendar year for any single
17		qualified music company.
18		(d) A business is eligible for participation in the
19		program if the business meets all of the following criteria:
20		(1) The business is engaged directly or indirectly in
21		the production, distribution, and promotion of music.
22		(2) The business is approved by the Director of
23		Commerce and Economic Opportunity.
24		(e) Upon approval of a tax credit award under this Act, the
25		Department shall issue a tax credit certificate to the
26		applicant.

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1		Section 50-45. Qualified music program evaluation and
2		reports.
3		(a) The Department's qualified music program tax credit
4		award evaluation must include:
5		(1) an assessment of the effectiveness of the program
6		in creating and retaining new jobs in Illinois;
7		(2) an assessment of the revenue impact of the
8		program;
9		(3) in the discretion of the Department, a review of
10		the practices and experiences of other states or nations
11		with similar programs; and
12		(4) an assessment of the overall success of the
13		program.
14		The Department may make a recommendation to extend, modify, or
15		not extend the program based on the evaluation.
16		(b) At the end of each fiscal quarter, the Department
17		shall submit to the General Assembly a report that includes,
18		without limitation:
19		(1) an assessment of the economic impact of the
20		program, including the number of jobs created and
21		retained, and whether the job positions are entry level,
22		management, vendor, or production related;
23		(2) the amount of qualified music company spending
24		brought to Illinois, including the amount of spending and
25		type of Illinois vendors hired in connection with a

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1		qualified music company; and
2		(3) a determination of whether those receiving
3		qualifying Illinois labor expenditure salaries or wages
4		reflect the geographic, racial and ethnic, gender, and
5		income level diversity of the State of Illinois.
6		(c) At the end of each fiscal year, the Department shall
7		submit to the General Assembly a report that includes, without
8		limitation:
9		(1) the identification of each vendor that provided
10		goods or services that were included in a qualified music
11		company's Illinois spending;
12		(2) a statement of the amount paid to each identified
13		vendor by the qualified music program and whether the
14		vendor is a minority-owned or women-owned business as
15		defined in Section 2 of the Business Enterprise for
16		Minorities, Women, and Persons with Disabilities Act; and
17		(3) a description of the steps taken by the Department
18		to encourage qualified music company to use vendors who
19		are minority-owned or women-owned businesses.
20		Section 50-50. Program terms and conditions. Any
21		documentary materials or data made available or received from
22		an applicant by any agent or employee of the Department are
23		confidential and are not public records to the extent that the
24		materials or data consist of commercial or financial
25		information regarding the operation of or the production of

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1		the applicant or recipient of any tax credit award under this
2		Act.
3		ARTICLE 52.
4		Section 52-3. The Freedom of Information Act is amended by
5		changing Section 7.5 as follows:
6		(5 ILCS 140/7.5)
7		(Text of Section before amendment by P.A. 103-472)
8		Sec. 7.5. Statutory exemptions. To the extent provided for
9		by the statutes referenced below, the following shall be
10		exempt from inspection and copying:
11		(a) All information determined to be confidential
12		under Section 4002 of the Technology Advancement and
13		Development Act.
14		(b) Library circulation and order records identifying
15		library users with specific materials under the Library
16		Records Confidentiality Act.
17		(c) Applications, related documents, and medical
18		records received by the Experimental Organ Transplantation
19		Procedures Board and any and all documents or other
20		records prepared by the Experimental Organ Transplantation
21		Procedures Board or its staff relating to applications it
22		has received.
23		(d) Information and records held by the Department of

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1		Public Health and its authorized representatives relating
2		to known or suspected cases of sexually transmissible
3		disease or any information the disclosure of which is
4		restricted under the Illinois Sexually Transmissible
5		Disease Control Act.
6		(e) Information the disclosure of which is exempted
7		under Section 30 of the Radon Industry Licensing Act.
8		(f) Firm performance evaluations under Section 55 of
9		the Architectural, Engineering, and Land Surveying
10		Qualifications Based Selection Act.
11		(g) Information the disclosure of which is restricted
12		and exempted under Section 50 of the Illinois Prepaid
13		Tuition Act.
14		(h) Information the disclosure of which is exempted
15		under the State Officials and Employees Ethics Act, and
16		records of any lawfully created State or local inspector
17		general's office that would be exempt if created or
18		obtained by an Executive Inspector General's office under
19		that Act.
20		(i) Information contained in a local emergency energy
21		plan submitted to a municipality in accordance with a
22		local emergency energy plan ordinance that is adopted
23		under Section 11-21.5-5 of the Illinois Municipal Code.
24		(j) Information and data concerning the distribution
25		of surcharge moneys collected and remitted by carriers
26		under the Emergency Telephone System Act.

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1		(k) Law enforcement officer identification information
2		or driver identification information compiled by a law
3		enforcement agency or the Department of Transportation
4		under Section 11-212 of the Illinois Vehicle Code.
5		(l) Records and information provided to a residential
6		health care facility resident sexual assault and death
7		review team or the Executive Council under the Abuse
8		Prevention Review Team Act.
9		(m) Information provided to the predatory lending
10		database created pursuant to Article 3 of the Residential
11		Real Property Disclosure Act, except to the extent
12		authorized under that Article.
13		(n) Defense budgets and petitions for certification of
14		compensation and expenses for court appointed trial
15		counsel as provided under Sections 10 and 15 of the
16		Capital Crimes Litigation Act (repealed). This subsection
17		(n) shall apply until the conclusion of the trial of the
18		case, even if the prosecution chooses not to pursue the
19		death penalty prior to trial or sentencing.
20		(o) Information that is prohibited from being
21		disclosed under Section 4 of the Illinois Health and
22		Hazardous Substances Registry Act.
23		(p) Security portions of system safety program plans,
24		investigation reports, surveys, schedules, lists, data, or
25		information compiled, collected, or prepared by or for the
26		Department of Transportation under Sections 2705-300 and

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1		2705-616 of the Department of Transportation Law of the
2		Civil Administrative Code of Illinois, the Regional
3		Transportation Authority under Section 2.11 of the
4		Regional Transportation Authority Act, or the St. Clair
5		County Transit District under the Bi-State Transit Safety
6		Act (repealed).
7		(q) Information prohibited from being disclosed by the
8		Personnel Record Review Act.
9		(r) Information prohibited from being disclosed by the
10		Illinois School Student Records Act.
11		(s) Information the disclosure of which is restricted
12		under Section 5-108 of the Public Utilities Act.
13		(t) (Blank).
14		(u) Records and information provided to an independent
15		team of experts under the Developmental Disability and
16		Mental Health Safety Act (also known as Brian's Law).
17		(v) Names and information of people who have applied
18		for or received Firearm Owner's Identification Cards under
19		the Firearm Owners Identification Card Act or applied for
20		or received a concealed carry license under the Firearm
21		Concealed Carry Act, unless otherwise authorized by the
22		Firearm Concealed Carry Act; and databases under the
23		Firearm Concealed Carry Act, records of the Concealed
24		Carry Licensing Review Board under the Firearm Concealed
25		Carry Act, and law enforcement agency objections under the
26		Firearm Concealed Carry Act.

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1		(v-5) Records of the Firearm Owner's Identification
2		Card Review Board that are exempted from disclosure under
3		Section 10 of the Firearm Owners Identification Card Act.
4		(w) Personally identifiable information which is
5		exempted from disclosure under subsection (g) of Section
6		19.1 of the Toll Highway Act.
7		(x) Information which is exempted from disclosure
8		under Section 5-1014.3 of the Counties Code or Section
9		8-11-21 of the Illinois Municipal Code.
10		(y) Confidential information under the Adult
11		Protective Services Act and its predecessor enabling
12		statute, the Elder Abuse and Neglect Act, including
13		information about the identity and administrative finding
14		against any caregiver of a verified and substantiated
15		decision of abuse, neglect, or financial exploitation of
16		an eligible adult maintained in the Registry established
17		under Section 7.5 of the Adult Protective Services Act.
18		(z) Records and information provided to a fatality
19		review team or the Illinois Fatality Review Team Advisory
20		Council under Section 15 of the Adult Protective Services
21		Act.
22		(aa) Information which is exempted from disclosure
23		under Section 2.37 of the Wildlife Code.
24		(bb) Information which is or was prohibited from
25		disclosure by the Juvenile Court Act of 1987.
26		(cc) Recordings made under the Law Enforcement

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1		Officer-Worn Body Camera Act, except to the extent
2		authorized under that Act.
3		(dd) Information that is prohibited from being
4		disclosed under Section 45 of the Condominium and Common
5		Interest Community Ombudsperson Act.
6		(ee) Information that is exempted from disclosure
7		under Section 30.1 of the Pharmacy Practice Act.
8		(ff) Information that is exempted from disclosure
9		under the Revised Uniform Unclaimed Property Act.
10		(gg) Information that is prohibited from being
11		disclosed under Section 7-603.5 of the Illinois Vehicle
12		Code.
13		(hh) Records that are exempt from disclosure under
14		Section 1A-16.7 of the Election Code.
15		(ii) Information which is exempted from disclosure
16		under Section 2505-800 of the Department of Revenue Law of
17		the Civil Administrative Code of Illinois.
18		(jj) Information and reports that are required to be
19		submitted to the Department of Labor by registering day
20		and temporary labor service agencies but are exempt from
21		disclosure under subsection (a-1) of Section 45 of the Day
22		and Temporary Labor Services Act.
23		(kk) Information prohibited from disclosure under the
24		Seizure and Forfeiture Reporting Act.
25		(ll) Information the disclosure of which is restricted
26		and exempted under Section 5-30.8 of the Illinois Public

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1		Aid Code.
2		(mm) Records that are exempt from disclosure under
3		Section 4.2 of the Crime Victims Compensation Act.
4		(nn) Information that is exempt from disclosure under
5		Section 70 of the Higher Education Student Assistance Act.
6		(oo) Communications, notes, records, and reports
7		arising out of a peer support counseling session
8		prohibited from disclosure under the First Responders
9		Suicide Prevention Act.
10		(pp) Names and all identifying information relating to
11		an employee of an emergency services provider or law
12		enforcement agency under the First Responders Suicide
13		Prevention Act.
14		(qq) Information and records held by the Department of
15		Public Health and its authorized representatives collected
16		under the Reproductive Health Act.
17		(rr) Information that is exempt from disclosure under
18		the Cannabis Regulation and Tax Act.
19		(ss) Data reported by an employer to the Department of
20		Human Rights pursuant to Section 2-108 of the Illinois
21		Human Rights Act.
22		(tt) Recordings made under the Children's Advocacy
23		Center Act, except to the extent authorized under that
24		Act.
25		(uu) Information that is exempt from disclosure under
26		Section 50 of the Sexual Assault Evidence Submission Act.

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1		(vv) Information that is exempt from disclosure under
2		subsections (f) and (j) of Section 5-36 of the Illinois
3		Public Aid Code.
4		(ww) Information that is exempt from disclosure under
5		Section 16.8 of the State Treasurer Act.
6		(xx) Information that is exempt from disclosure or
7		information that shall not be made public under the
8		Illinois Insurance Code.
9		(yy) Information prohibited from being disclosed under
10		the Illinois Educational Labor Relations Act.
11		(zz) Information prohibited from being disclosed under
12		the Illinois Public Labor Relations Act.
13		(aaa) Information prohibited from being disclosed
14		under Section 1-167 of the Illinois Pension Code.
15		(bbb) Information that is prohibited from disclosure
16		by the Illinois Police Training Act and the Illinois State
17		Police Act.
18		(ccc) Records exempt from disclosure under Section
19		2605-304 of the Illinois State Police Law of the Civil
20		Administrative Code of Illinois.
21		(ddd) Information prohibited from being disclosed
22		under Section 35 of the Address Confidentiality for
23		Victims of Domestic Violence, Sexual Assault, Human
24		Trafficking, or Stalking Act.
25		(eee) Information prohibited from being disclosed
26		under subsection (b) of Section 75 of the Domestic

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1		Violence Fatality Review Act.
2		(fff) Images from cameras under the Expressway Camera
3		Act. This subsection (fff) is inoperative on and after
4		July 1, 2025.
5		(ggg) Information prohibited from disclosure under
6		paragraph (3) of subsection (a) of Section 14 of the Nurse
7		Agency Licensing Act.
8		(hhh) Information submitted to the Illinois State
9		Police in an affidavit or application for an assault
10		weapon endorsement, assault weapon attachment endorsement,
11		.50 caliber rifle endorsement, or .50 caliber cartridge
12		endorsement under the Firearm Owners Identification Card
13		Act.
14		(iii) Data exempt from disclosure under Section 50 of
15		the School Safety Drill Act.
16		(jjj) (hhh) Information exempt from disclosure under
17		Section 30 of the Insurance Data Security Law.
18		(kkk) (iii) Confidential business information
19		prohibited from disclosure under Section 45 of the Paint
20		Stewardship Act.
21		(lll) (Reserved).
22		(mmm) (iii) Information prohibited from being
23		disclosed under subsection (e) of Section 1-129 of the
24		Illinois Power Agency Act.
25		(nnn) Materials received by the Department of Commerce
26		and Economic Opportunity that are confidential under the

HB4951 Enrolled - 214 - LRB103 38094 HLH 68226 b
1		Music and Musicians Tax Credit and Jobs Act.
2		(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
3		102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
4		8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
5		102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
6		6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
7		eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23;
8		revised 1-2-24.)
9		(Text of Section after amendment by P.A. 103-472)
10		Sec. 7.5. Statutory exemptions. To the extent provided for
11		by the statutes referenced below, the following shall be
12		exempt from inspection and copying:
13		(a) All information determined to be confidential
14		under Section 4002 of the Technology Advancement and
15		Development Act.
16		(b) Library circulation and order records identifying
17		library users with specific materials under the Library
18		Records Confidentiality Act.
19		(c) Applications, related documents, and medical
20		records received by the Experimental Organ Transplantation
21		Procedures Board and any and all documents or other
22		records prepared by the Experimental Organ Transplantation
23		Procedures Board or its staff relating to applications it
24		has received.
25		(d) Information and records held by the Department of

HB4951 Enrolled - 215 - LRB103 38094 HLH 68226 b
1		Public Health and its authorized representatives relating
2		to known or suspected cases of sexually transmissible
3		disease or any information the disclosure of which is
4		restricted under the Illinois Sexually Transmissible
5		Disease Control Act.
6		(e) Information the disclosure of which is exempted
7		under Section 30 of the Radon Industry Licensing Act.
8		(f) Firm performance evaluations under Section 55 of
9		the Architectural, Engineering, and Land Surveying
10		Qualifications Based Selection Act.
11		(g) Information the disclosure of which is restricted
12		and exempted under Section 50 of the Illinois Prepaid
13		Tuition Act.
14		(h) Information the disclosure of which is exempted
15		under the State Officials and Employees Ethics Act, and
16		records of any lawfully created State or local inspector
17		general's office that would be exempt if created or
18		obtained by an Executive Inspector General's office under
19		that Act.
20		(i) Information contained in a local emergency energy
21		plan submitted to a municipality in accordance with a
22		local emergency energy plan ordinance that is adopted
23		under Section 11-21.5-5 of the Illinois Municipal Code.
24		(j) Information and data concerning the distribution
25		of surcharge moneys collected and remitted by carriers
26		under the Emergency Telephone System Act.

HB4951 Enrolled - 216 - LRB103 38094 HLH 68226 b
1		(k) Law enforcement officer identification information
2		or driver identification information compiled by a law
3		enforcement agency or the Department of Transportation
4		under Section 11-212 of the Illinois Vehicle Code.
5		(l) Records and information provided to a residential
6		health care facility resident sexual assault and death
7		review team or the Executive Council under the Abuse
8		Prevention Review Team Act.
9		(m) Information provided to the predatory lending
10		database created pursuant to Article 3 of the Residential
11		Real Property Disclosure Act, except to the extent
12		authorized under that Article.
13		(n) Defense budgets and petitions for certification of
14		compensation and expenses for court appointed trial
15		counsel as provided under Sections 10 and 15 of the
16		Capital Crimes Litigation Act (repealed). This subsection
17		(n) shall apply until the conclusion of the trial of the
18		case, even if the prosecution chooses not to pursue the
19		death penalty prior to trial or sentencing.
20		(o) Information that is prohibited from being
21		disclosed under Section 4 of the Illinois Health and
22		Hazardous Substances Registry Act.
23		(p) Security portions of system safety program plans,
24		investigation reports, surveys, schedules, lists, data, or
25		information compiled, collected, or prepared by or for the
26		Department of Transportation under Sections 2705-300 and

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1		2705-616 of the Department of Transportation Law of the
2		Civil Administrative Code of Illinois, the Regional
3		Transportation Authority under Section 2.11 of the
4		Regional Transportation Authority Act, or the St. Clair
5		County Transit District under the Bi-State Transit Safety
6		Act (repealed).
7		(q) Information prohibited from being disclosed by the
8		Personnel Record Review Act.
9		(r) Information prohibited from being disclosed by the
10		Illinois School Student Records Act.
11		(s) Information the disclosure of which is restricted
12		under Section 5-108 of the Public Utilities Act.
13		(t) (Blank).
14		(u) Records and information provided to an independent
15		team of experts under the Developmental Disability and
16		Mental Health Safety Act (also known as Brian's Law).
17		(v) Names and information of people who have applied
18		for or received Firearm Owner's Identification Cards under
19		the Firearm Owners Identification Card Act or applied for
20		or received a concealed carry license under the Firearm
21		Concealed Carry Act, unless otherwise authorized by the
22		Firearm Concealed Carry Act; and databases under the
23		Firearm Concealed Carry Act, records of the Concealed
24		Carry Licensing Review Board under the Firearm Concealed
25		Carry Act, and law enforcement agency objections under the
26		Firearm Concealed Carry Act.

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1		(v-5) Records of the Firearm Owner's Identification
2		Card Review Board that are exempted from disclosure under
3		Section 10 of the Firearm Owners Identification Card Act.
4		(w) Personally identifiable information which is
5		exempted from disclosure under subsection (g) of Section
6		19.1 of the Toll Highway Act.
7		(x) Information which is exempted from disclosure
8		under Section 5-1014.3 of the Counties Code or Section
9		8-11-21 of the Illinois Municipal Code.
10		(y) Confidential information under the Adult
11		Protective Services Act and its predecessor enabling
12		statute, the Elder Abuse and Neglect Act, including
13		information about the identity and administrative finding
14		against any caregiver of a verified and substantiated
15		decision of abuse, neglect, or financial exploitation of
16		an eligible adult maintained in the Registry established
17		under Section 7.5 of the Adult Protective Services Act.
18		(z) Records and information provided to a fatality
19		review team or the Illinois Fatality Review Team Advisory
20		Council under Section 15 of the Adult Protective Services
21		Act.
22		(aa) Information which is exempted from disclosure
23		under Section 2.37 of the Wildlife Code.
24		(bb) Information which is or was prohibited from
25		disclosure by the Juvenile Court Act of 1987.
26		(cc) Recordings made under the Law Enforcement

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1		Officer-Worn Body Camera Act, except to the extent
2		authorized under that Act.
3		(dd) Information that is prohibited from being
4		disclosed under Section 45 of the Condominium and Common
5		Interest Community Ombudsperson Act.
6		(ee) Information that is exempted from disclosure
7		under Section 30.1 of the Pharmacy Practice Act.
8		(ff) Information that is exempted from disclosure
9		under the Revised Uniform Unclaimed Property Act.
10		(gg) Information that is prohibited from being
11		disclosed under Section 7-603.5 of the Illinois Vehicle
12		Code.
13		(hh) Records that are exempt from disclosure under
14		Section 1A-16.7 of the Election Code.
15		(ii) Information which is exempted from disclosure
16		under Section 2505-800 of the Department of Revenue Law of
17		the Civil Administrative Code of Illinois.
18		(jj) Information and reports that are required to be
19		submitted to the Department of Labor by registering day
20		and temporary labor service agencies but are exempt from
21		disclosure under subsection (a-1) of Section 45 of the Day
22		and Temporary Labor Services Act.
23		(kk) Information prohibited from disclosure under the
24		Seizure and Forfeiture Reporting Act.
25		(ll) Information the disclosure of which is restricted
26		and exempted under Section 5-30.8 of the Illinois Public

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1		Aid Code.
2		(mm) Records that are exempt from disclosure under
3		Section 4.2 of the Crime Victims Compensation Act.
4		(nn) Information that is exempt from disclosure under
5		Section 70 of the Higher Education Student Assistance Act.
6		(oo) Communications, notes, records, and reports
7		arising out of a peer support counseling session
8		prohibited from disclosure under the First Responders
9		Suicide Prevention Act.
10		(pp) Names and all identifying information relating to
11		an employee of an emergency services provider or law
12		enforcement agency under the First Responders Suicide
13		Prevention Act.
14		(qq) Information and records held by the Department of
15		Public Health and its authorized representatives collected
16		under the Reproductive Health Act.
17		(rr) Information that is exempt from disclosure under
18		the Cannabis Regulation and Tax Act.
19		(ss) Data reported by an employer to the Department of
20		Human Rights pursuant to Section 2-108 of the Illinois
21		Human Rights Act.
22		(tt) Recordings made under the Children's Advocacy
23		Center Act, except to the extent authorized under that
24		Act.
25		(uu) Information that is exempt from disclosure under
26		Section 50 of the Sexual Assault Evidence Submission Act.

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1		(vv) Information that is exempt from disclosure under
2		subsections (f) and (j) of Section 5-36 of the Illinois
3		Public Aid Code.
4		(ww) Information that is exempt from disclosure under
5		Section 16.8 of the State Treasurer Act.
6		(xx) Information that is exempt from disclosure or
7		information that shall not be made public under the
8		Illinois Insurance Code.
9		(yy) Information prohibited from being disclosed under
10		the Illinois Educational Labor Relations Act.
11		(zz) Information prohibited from being disclosed under
12		the Illinois Public Labor Relations Act.
13		(aaa) Information prohibited from being disclosed
14		under Section 1-167 of the Illinois Pension Code.
15		(bbb) Information that is prohibited from disclosure
16		by the Illinois Police Training Act and the Illinois State
17		Police Act.
18		(ccc) Records exempt from disclosure under Section
19		2605-304 of the Illinois State Police Law of the Civil
20		Administrative Code of Illinois.
21		(ddd) Information prohibited from being disclosed
22		under Section 35 of the Address Confidentiality for
23		Victims of Domestic Violence, Sexual Assault, Human
24		Trafficking, or Stalking Act.
25		(eee) Information prohibited from being disclosed
26		under subsection (b) of Section 75 of the Domestic

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1		Violence Fatality Review Act.
2		(fff) Images from cameras under the Expressway Camera
3		Act. This subsection (fff) is inoperative on and after
4		July 1, 2025.
5		(ggg) Information prohibited from disclosure under
6		paragraph (3) of subsection (a) of Section 14 of the Nurse
7		Agency Licensing Act.
8		(hhh) Information submitted to the Illinois State
9		Police in an affidavit or application for an assault
10		weapon endorsement, assault weapon attachment endorsement,
11		.50 caliber rifle endorsement, or .50 caliber cartridge
12		endorsement under the Firearm Owners Identification Card
13		Act.
14		(iii) Data exempt from disclosure under Section 50 of
15		the School Safety Drill Act.
16		(jjj) (hhh) Information exempt from disclosure under
17		Section 30 of the Insurance Data Security Law.
18		(kkk) (iii) Confidential business information
19		prohibited from disclosure under Section 45 of the Paint
20		Stewardship Act.
21		(lll) (iii) Data exempt from disclosure under Section
22		2-3.196 of the School Code.
23		(mmm) (iii) Information prohibited from being
24		disclosed under subsection (e) of Section 1-129 of the
25		Illinois Power Agency Act.
26		(nnn) Materials received by the Department of Commerce

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1		and Economic Opportunity that are confidential under the
2		Music and Musicians Tax Credit and Jobs Act.
3		(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
4		102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
5		8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
6		102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
7		6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
8		eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23;
9		103-580, eff. 12-8-23; revised 1-2-24.)
10		Section 52-5. The Illinois Income Tax Act is amended by
11		adding Section 241 as follows:
12		(35 ILCS 5/241 new)
13		Sec. 241. Music and Musicians Tax Credits and Jobs Act.
14		Taxpayers who have been awarded a credit under the Music and
15		Musicians Tax Credits and Jobs Act are entitled to a credit
16		against the taxes imposed by subsections (a) and (b) of
17		Section 201 of this Act in an amount determined by the
18		Department of Commerce and Economic Opportunity under that
19		Act. The credit shall be claimed in the taxable year in which
20		the tax credit award certificate is issued, and the
21		certificate shall be attached to the return. If the taxpayer
22		is a partnership or Subchapter S corporation, the credit shall
23		be allowed to the partners or shareholders in accordance with
24		the provisions of Section 251.

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1		The credit may not reduce the taxpayer's liability to less
2		than zero. If the amount of the credit exceeds the tax
3		liability for the year, the excess may be carried forward and
4		applied to the tax liability of the 5 taxable years following
5		the excess credit year. The credit shall be applied to the
6		earliest year for which there is a tax liability. If there are
7		credits from more than one tax year that are available to
8		offset a liability, the earlier credit shall be applied first.
9		ARTICLE 55.
10		Section 55-5. The Illinois Income Tax Act is amended by
11		changing Section 216 as follows:
12		(35 ILCS 5/216)
13		Sec. 216. Credit for wages paid to returning citizens
14		ex-felons.
15		(a) For each taxable year beginning on or after January 1,
16		2007, each taxpayer is entitled to a credit against the tax
17		imposed by subsections (a) and (b) of Section 201 of this Act
18		in an amount equal to 5% of qualified wages paid by the
19		taxpayer during the taxable year to one or more Illinois
20		residents who are qualified returning citizens ex-offenders.
21		For each taxable year beginning on or after January 1, 2025,
22		each taxpayer is entitled to a credit against the tax imposed
23		by subsections (a) and (b) of Section 201 of this Act in an

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1		amount equal to 15% of qualified wages paid by the taxpayer
2		during the taxable year to one or more Illinois residents who
3		are qualified returning citizens. The total credit allowed to
4		a taxpayer with respect to each qualified returning citizen
5		ex-offender may not exceed $1,500 for all taxable years ending
6		on or before December 31, 2024. For taxable years ending on or
7		after December 31, 2025, the total credit allowed to a
8		taxpayer with respect to each qualified returning citizen may
9		not exceed $7,500. For taxable years ending on or after
10		December 31, 2025, the total amount in credit that may be
11		awarded under this Section may not exceed $1,000,000 per
12		taxable year. For taxable years ending before December 31,
13		2023, for partners, shareholders of Subchapter S corporations,
14		and owners of limited liability companies, if the liability
15		company is treated as a partnership for purposes of federal
16		and State income taxation, there shall be allowed a credit
17		under this Section to be determined in accordance with the
18		determination of income and distributive share of income under
19		Sections 702 and 704 and Subchapter S of the Internal Revenue
20		Code. For taxable years ending on or after December 31, 2023,
21		partners and shareholders of subchapter S corporations are
22		entitled to a credit under this Section as provided in Section
23		251.
24		(b) For purposes of this Section, "qualified wages":
25		(1) includes only wages that are subject to federal
26		unemployment tax under Section 3306 of the Internal

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1		Revenue Code, without regard to any dollar limitation
2		contained in that Section;
3		(2) does not include any amounts paid or incurred by
4		an employer for any period to any qualified returning
5		citizen ex-offender for whom the employer receives
6		federally funded payments for on-the-job training of that
7		qualified returning citizen ex-offender for that period;
8		and
9		(3) includes only wages attributable to service
10		rendered during the one-year period beginning with the day
11		the qualified returning citizen ex-offender begins work
12		for the employer.
13		If the taxpayer has received any payment from a program
14		established under Section 482(e)(1) of the federal Social
15		Security Act with respect to a qualified returning citizen
16		ex-offender, then, for purposes of calculating the credit
17		under this Section, the amount of the qualified wages paid to
18		that qualified ex-offender must be reduced by the amount of
19		the payment.
20		(c) For purposes of this Section, "qualified returning
21		citizen ex-offender" means any person who:
22		(1) has been convicted of a crime in this State or of
23		an offense in any other jurisdiction, not including any
24		offense or attempted offense that would subject a person
25		to registration under the Sex Offender Registration Act;
26		(2) was sentenced to a period of incarceration in an

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1		Illinois adult correctional center; and
2		(3) was hired by the taxpayer within 3 years after
3		being released from an Illinois adult correctional center
4		if the credit is claimed for a taxable year beginning on or
5		before January 1, 2024, or was hired by the taxpayer
6		within 5 years after being released from an Illinois adult
7		correctional center if the credit is claimed for a taxable
8		year beginning on or after January 1, 2025.
9		(d) In no event shall a credit under this Section reduce
10		the taxpayer's liability to less than zero. If the amount of
11		the credit exceeds the tax liability for the year, the excess
12		may be carried forward and applied to the tax liability of the
13		5 taxable years following the excess credit year. The tax
14		credit shall be applied to the earliest year for which there is
15		a tax liability. If there are credits for more than one year
16		that are available to offset a liability, the earlier credit
17		shall be applied first.
18		(e) This Section is exempt from the provisions of Section
19		250.
20		(Source: P.A. 103-396, eff. 1-1-24.)
21		ARTICLE 60.
22		Section 60-5. The Illinois Income Tax Act is amended by
23		changing Section 234 as follows:

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1		(35 ILCS 5/234)
2		Sec. 234. Volunteer emergency workers.
3		(a) For taxable years beginning on or after January 1,
4		2023 and beginning prior to January 1, 2028, each individual
5		who (i) serves as a volunteer emergency worker for at least 9
6		months during the taxable year and (ii) does not receive
7		compensation for his or her services as a volunteer emergency
8		worker of more than $5,000 for the taxable year may apply to
9		the Department for a credit against the taxes imposed by
10		subsections (a) and (b) of Section 201. The amount of the
11		credit shall be $500 per eligible individual. If a taxpayer
12		described in this subsection (a) is a volunteer member of a
13		county or municipal emergency services and disaster agency
14		under the Illinois Emergency Management Agency Act, then the
15		taxpayer must serve as a volunteer emergency worker with the
16		county or municipal emergency services and disaster agency for
17		at least 100 hours during the taxable year. The aggregate
18		amount of all tax credits awarded by the Department under this
19		Section in any calendar year may not exceed $5,000,000.
20		Credits shall be awarded on a first-come first-served basis.
21		(b) A credit under this Section may not reduce a
22		taxpayer's liability to less than zero.
23		(c) By January 24 of each year, the Office of the State
24		Fire Marshal shall provide the Department of Revenue an
25		electronic file with the names of volunteer emergency workers,
26		other than volunteer emergency workers who are volunteer

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1		members of a county or municipal emergency services and
2		disaster agency under the Illinois Emergency Management Agency
3		Act, who (i) volunteered for at least 9 months during the
4		immediately preceding calendar year, (ii) did not receive
5		compensation for their services as a volunteer emergency
6		worker of more than $5,000 during the immediately preceding
7		calendar year, and (iii) are registered with the Office of the
8		State Fire Marshal as of January 12 of the current year as
9		meeting the requirements of items (i) and (ii) for the
10		immediately preceding calendar year. The chief of the fire
11		department, fire protection district, or fire protection
12		association shall be responsible for notifying the State Fire
13		Marshal of the volunteer emergency workers who met the
14		requirements of items (i) and (ii) during the immediately
15		preceding calendar year by January 12 of the current year.
16		Notification shall be required in the format required by the
17		State Fire Marshal. The chief of the fire department, fire
18		protection district, or fire protection association shall be
19		responsible for the verification and accuracy of their
20		submission to the State Fire Marshal under this subsection.
21		By January 24, 2025, and by January 24 of each year
22		thereafter, the Illinois Emergency Management Agency and
23		Office of Homeland Security shall provide the Department of
24		Revenue an electronic file with the names of volunteer
25		emergency workers who (A) volunteered with a county or
26		municipal emergency services and disaster agency pursuant to

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1		the Illinois Emergency Management Agency Act for at least 9
2		months during the immediately preceding calendar year, (B) did
3		not receive compensation for their services as a volunteer
4		emergency worker of more than $5,000 during the immediately
5		preceding calendar year, (C) volunteered with a county or
6		municipal emergency services and disaster agency pursuant to
7		the Illinois Emergency Management Agency Act for at least 100
8		hours during the immediately preceding calendar year, and (D)
9		are registered with the Illinois Emergency Management Agency
10		and Office of Homeland Security as of January 12 of the current
11		year as meeting the requirements of items (A), (B), and (C) for
12		the immediately preceding calendar year. The coordinator of
13		the emergency services and disaster agency shall be
14		responsible for notifying the Illinois Emergency Management
15		Agency and Office of Homeland Security of the volunteer
16		emergency workers who met the requirements of items (A), (B),
17		and (C) during the immediately preceding calendar year by
18		January 12 of the current year. Notification shall be in the
19		format required by the Illinois Emergency Management Agency
20		and Office of Homeland Security. The coordinator of the
21		emergency services and disaster agency shall be responsible
22		for the verification and accuracy of their submission to the
23		Illinois Emergency Management Agency and Office of Homeland
24		Security under this subsection.
25		(d) As used in this Section, "volunteer emergency worker"
26		means a person who serves as a member, other than on a

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1		full-time career basis, of a fire department, fire protection
2		district, or fire protection association that has a Fire
3		Department Identification Number issued by the Office of the
4		State Fire Marshal and who does not serve as a member on a
5		full-time career basis for another fire department, fire
6		protection district, fire protection association, or
7		governmental entity. For taxable years beginning on or after
8		January 1, 2024, "volunteer emergency worker" also means a
9		person who is a volunteer member of a county or municipal
10		emergency services and disaster agency pursuant to the
11		Illinois Emergency Management Agency Act.
12		(e) The Department shall adopt rules to implement and
13		administer this Section, including rules concerning
14		applications for the tax credit.
15		(Source: P.A. 103-9, eff. 6-7-23.)
16		ARTICLE 65.
17		Section 65-5. The Hotel Operators' Occupation Tax Act is
18		amended by changing Sections 2, 3, 4, 5, and 6 and by adding
19		Sections 3-2 and 3-3 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. For the
6		purposes of re-renters of hotel rooms only, "hotel" does not
7		include a short-term rental.
8		(2) "Operator" means any person engaged in the business of
9		renting, leasing, or letting rooms in operating 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. 100-213, eff. 8-18-17.)
13		(35 ILCS 145/3) (from Ch. 120, par. 481b.33)
14		Sec. 3. Rate; exemptions.
15		(a) A tax is imposed upon hotel operators persons engaged
16		in the business of renting, leasing or letting rooms in a hotel
17		at the rate of 5% of 94% of the gross rental receipts from
18		engaging in business as a hotel operator such renting, leasing
19		or letting, excluding, however, from gross rental receipts,
20		the proceeds of such renting, leasing or letting hotel rooms
21		to permanent residents of a that hotel and proceeds from the
22		tax imposed under subsection (c) of Section 13 of the
23		Metropolitan Pier and Exposition Authority Act.
24		(b) There shall be imposed an additional tax upon hotel
25		operators persons engaged in the business of renting, leasing

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1		or letting rooms in a hotel at the rate of 1% of 94% of the
2		gross rental receipts received by the hotel operator from
3		engaging in business as a hotel operator from such renting,
4		leasing or letting, excluding, however, from gross rental
5		receipts, the proceeds of such renting, leasing or letting to
6		permanent residents of that hotel and proceeds from the tax
7		imposed under subsection (c) of Section 13 of the Metropolitan
8		Pier and Exposition Authority Act.
9		(b-5) Beginning on July 1, 2024, if the renting, leasing,
10		or letting of a hotel room is done through a re-renter of hotel
11		rooms, then, subject to the provisions of Sections 3-2 and
12		3-3, the re-renter is the hotel operator for the purposes of
13		the taxes under subsections (a) and (b). If the re-renter is
14		headquartered outside of this State and has no presence in
15		this State other than its business as a re-renter, conducted
16		remotely, then, subject to the provisions of Sections 3-2 and
17		3-3, such re-renter is the hotel operator for the purposes of
18		the taxes under subsections (a) and (b) if it meets one of the
19		following thresholds:
20		(1) the cumulative gross receipts from rentals in
21		Illinois by the re-renter of hotel rooms are $100,000 or
22		more; or
23		(2) the re-renter of hotel rooms cumulatively enters
24		into 200 or more separate transactions for rentals in
25		Illinois.
26		A re-renter of hotel rooms who is headquartered outside of

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1		this State and has no presence in this State other than its
2		business as a re-renter, conducted remotely, shall determine
3		on a quarterly basis, ending on the last day of March, June,
4		September, and December, whether he or she meets the threshold
5		of either paragraph (1) or (2) of this subsection (b-5) for the
6		preceding 12-month period. If such re-renter of hotel rooms
7		meets the threshold of either paragraph (1) or (2) for a
8		12-month period, he or she is subject to tax under this Act and
9		is required to remit the tax imposed under this Act and file
10		returns for the 12-month period beginning on the first day of
11		the next month after he or she determines that he or she meets
12		the threshold of paragraph (1) or (2). At the end of that
13		12-month period, such re-renter of hotel rooms shall determine
14		whether he or she continued to meet the threshold of either
15		paragraph (1) or (2) during the preceding 12-month period. If
16		he or she met the threshold in either paragraph (1) or (2) for
17		the preceding 12-month period, he or she is a hotel operator in
18		this State and is required to remit the tax imposed under this
19		Act and file returns for the subsequent 12-month period. If,
20		at the end of a 12-month period during which such re-renter is
21		required to remit the tax imposed under this Act, the
22		re-renter determines that he or she did not meet the threshold
23		in either paragraph (1) or (2) during the preceding 12-month
24		period, he or she shall subsequently determine on a quarterly
25		basis, ending on the last day of March, June, September, and
26		December, whether he or she meets the threshold of either

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1		paragraph (1) or (2) for the preceding 12-month period.
2		(c) No funds received pursuant to this Act shall be used to
3		advertise for or otherwise promote new competition in the
4		hotel business.
5		(d) However, such tax is not imposed upon the privilege of
6		engaging in any business in Interstate Commerce or otherwise,
7		which business may not, under the Constitution and Statutes of
8		the United States, be made the subject of taxation by this
9		State. In addition, the tax is not imposed upon gross rental
10		receipts for which the hotel operator is prohibited from
11		obtaining reimbursement for the tax from the customer by
12		reason of a federal treaty.
13		(d-5) On and after July 1, 2017, the tax imposed by this
14		Act shall not apply to gross rental receipts received by an
15		entity that is organized and operated exclusively for
16		religious purposes and possesses an active Exemption
17		Identification Number issued by the Department pursuant to the
18		Retailers' Occupation Tax Act when acting as a hotel operator
19		renting, leasing, or letting rooms:
20		(1) in furtherance of the purposes for which it is
21		organized; or
22		(2) to entities that (i) are organized and operated
23		exclusively for religious purposes, (ii) possess an active
24		Exemption Identification Number issued by the Department
25		pursuant to the Retailers' Occupation Tax Act, and (iii)
26		rent the rooms in furtherance of the purposes for which

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1		they are organized.
2		No gross rental receipts are exempt under paragraph (2) of
3		this subsection (d-5) unless the hotel operator obtains the
4		active Exemption Identification Number from the exclusively
5		religious entity to whom it is renting and maintains that
6		number in its books and records. Gross rental receipts from
7		all rentals other than those described in items (1) or (2) of
8		this subsection (d-5) are subject to the tax imposed by this
9		Act unless otherwise exempt under this Act.
10		This subsection (d-5) is exempt from the sunset provisions
11		of Section 3-5 of this Act.
12		(d-10) On and after July 1, 2023, the tax imposed by this
13		Act shall not apply to gross rental receipts received from the
14		renting, leasing, or letting of rooms to an entity that is
15		organized and operated exclusively by an organization
16		chartered by the United States Congress for the purpose of
17		providing disaster relief and that possesses an active
18		Exemption Identification Number issued by the Department
19		pursuant to the Retailers' Occupation Tax Act if the renting,
20		leasing, or letting of the rooms is in furtherance of the
21		purposes for which the exempt organization is organized. This
22		subsection (d-10) is exempt from the sunset provisions of
23		Section 3-5 of this Act.
24		(e) Persons subject to the tax imposed by this Act may
25		reimburse themselves for their tax liability under this Act by
26		separately stating such tax as an additional charge, which

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1		charge may be stated in combination, in a single amount, with
2		any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
3		Illinois Municipal Code, and Section 25.05-10 of "An Act to
4		revise the law in relation to counties".
5		(f) If any hotel operator collects an amount (however
6		designated) which purports to reimburse such operator for
7		hotel operators' occupation tax liability measured by receipts
8		which are not subject to hotel operators' occupation tax, or
9		if any hotel operator, in collecting an amount (however
10		designated) which purports to reimburse such operator for
11		hotel operators' occupation tax liability measured by receipts
12		which are subject to tax under this Act, collects more from the
13		guest or re-renter customer than the operators' hotel
14		operators' occupation tax liability in the transaction is, the
15		guest or re-renter, as applicable, customer shall have a legal
16		right to claim a refund of such amount from such operator.
17		However, if such amount is not refunded to the guest or
18		re-renter, as applicable, customer for any reason, the hotel
19		operator is liable to pay such amount to the Department.
20		(Source: P.A. 103-9, eff. 6-7-23.)
21		(35 ILCS 145/3-2 new)
22		Sec. 3-2. No resale exemption; tax incurred by re-renters
23		of hotel rooms. A hotel operator who rents, leases, or lets
24		rooms subject to tax under this Act to a re-renter of hotel
25		rooms incurs the tax under this Act on the gross rental

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1		receipts it receives from that re-renter of hotel rooms and
2		cannot claim any resale exemption. In such situations, the
3		re-renter of hotel rooms incurs tax under this Act on its gross
4		rental receipts as provided in Section 3 of this Act.
5		(35 ILCS 145/3-3 new)
6		Sec. 3-3. Re-renter of hotel rooms; credit for tax
7		reimbursement. A re-renter of hotel rooms may take a credit
8		against the tax it incurs on the rental of a hotel room under
9		this Act for the amount it paid under subsection (e) of Section
10		3 of this Act to a hotel operator as reimbursement for the tax
11		incurred under this Act for the rental of that room for the
12		purposes of re-rental.
13		(35 ILCS 145/4) (from Ch. 120, par. 481b.34)
14		Sec. 4. Books and records. Every operator shall keep
15		separate books or records of his business as an operator so as
16		to show the rents and occupancies taxable under this Act
17		separately from his transactions not taxable under this Act.
18		If any operator fails to keep such separate books or records,
19		he shall be liable to tax at the rate designated in Section 3
20		hereof upon the entire proceeds from his business hotel. The
21		Department may adopt rules that establish requirements,
22		including record forms and formats, for records required to be
23		kept and maintained by taxpayers. For purposes of this
24		Section, "records" means all data maintained by the taxpayer,

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1		including data on paper, microfilm, microfiche or any type of
2		machine-sensible data compilation.
3		(Source: P.A. 88-480.)
4		(35 ILCS 145/5) (from Ch. 120, par. 481b.35)
5		Sec. 5. Certificate of registration; retailers' occupation
6		tax registration provisions apply. It shall be unlawful for
7		any person to engage in the business as a hotel operator of
8		renting, leasing or letting rooms in a hotel in this State
9		without a certificate of registration from the Department.
10		All of the provisions of Sections 2a and 2b of the
11		Retailers' Occupation Tax Act, in effect on the effective date
12		of this Act, as subsequently amended, shall apply to persons
13		in the business as hotel operators of renting, leasing or
14		letting rooms in a hotel in this State, to the same extent as
15		if such provisions were included herein.
16		(Source: Laws 1961, p. 1728.)
17		(35 ILCS 145/6) (from Ch. 120, par. 481b.36)
18		Sec. 6. Returns; allocation of proceeds Filing of returns
19		and distribution of revenue. Except as provided hereinafter in
20		this Section, on or before the last day of each calendar month,
21		every person engaged as a hotel operator in the business of
22		renting, leasing or letting rooms in a hotel in this State
23		during the preceding calendar month shall file a return with
24		the Department, stating:

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1		1. The name of the operator;
2		2. His residence address and the address of his
3		principal place of business and the address of the
4		principal place of business (if that is a different
5		address) from which he engages in the business as a hotel
6		operator of renting, leasing or letting rooms in a hotel
7		in this State (including, if required by the Department,
8		the address of each hotel from which rental receipts were
9		received);
10		3. Total amount of rental receipts received by him
11		during the preceding calendar month from engaging in
12		business as a hotel operator renting, leasing or letting
13		rooms during such preceding calendar month;
14		4. Total amount of rental receipts received by him
15		during the preceding calendar month from renting, leasing
16		or letting rooms to permanent residents during such
17		preceding calendar month;
18		5. Total amount of other exclusions from gross rental
19		receipts allowed by this Act;
20		6. Gross rental receipts which were received by him
21		during the preceding calendar month and upon the basis of
22		which the tax is imposed;
23		7. The amount of tax due;
24		8. Credit for any reimbursement of tax paid by a
25		re-renter of hotel rooms to hotel operators for rentals
26		purchased for re-rental, as provided in Section 3-3 of

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1		this Act;
2		9. 8. Such other reasonable information as the
3		Department may require.
4		If the operator's average monthly tax liability to the
5		Department does not exceed $200, the Department may authorize
6		his returns to be filed on a quarter annual basis, with the
7		return for January, February and March of a given year being
8		due by April 30 of such year; with the return for April, May
9		and June of a given year being due by July 31 of such year;
10		with the return for July, August and September of a given year
11		being due by October 31 of such year, and with the return for
12		October, November and December of a given year being due by
13		January 31 of the following year.
14		If the operator's average monthly tax liability to the
15		Department does not exceed $50, the Department may authorize
16		his returns to be filed on an annual basis, with the return for
17		a given year being due by January 31 of the following year.
18		Such quarter annual and annual returns, as to form and
19		substance, shall be subject to the same requirements as
20		monthly returns.
21		Notwithstanding any other provision in this Act concerning
22		the time within which an operator may file his return, in the
23		case of any operator who ceases to engage in a kind of business
24		which makes him responsible for filing returns under this Act,
25		such operator shall file a final return under this Act with the
26		Department not more than 1 month after discontinuing such

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1		business.
2		Where the same person has more than 1 business registered
3		with the Department under separate registrations under this
4		Act, such person shall not file each return that is due as a
5		single return covering all such registered businesses, but
6		shall file separate returns for each such registered business.
7		In his return, the operator shall determine the value of
8		any consideration other than money received by him in
9		connection with engaging in business as a hotel operator the
10		renting, leasing or letting of rooms in the course of his
11		business and he shall include such value in his return. Such
12		determination shall be subject to review and revision by the
13		Department in the manner hereinafter provided for the
14		correction of returns.
15		Where the operator is a corporation, the return filed on
16		behalf of such corporation shall be signed by the president,
17		vice-president, secretary or treasurer or by the properly
18		accredited agent of such corporation.
19		The person filing the return herein provided for shall, at
20		the time of filing such return, pay to the Department the
21		amount of tax herein imposed. The operator filing the return
22		under this Section shall, at the time of filing such return,
23		pay to the Department the amount of tax imposed by this Act
24		less a discount of 2.1% or $25 per calendar year, whichever is
25		greater, which is allowed to reimburse the operator for the
26		expenses incurred in keeping records, preparing and filing

HB4951 Enrolled - 245 - LRB103 38094 HLH 68226 b
1		returns, remitting the tax and supplying data to the
2		Department on request.
3		If any payment provided for in this Section exceeds the
4		operator's liabilities under this Act, as shown on an original
5		return, the Department may authorize the operator to credit
6		such excess payment against liability subsequently to be
7		remitted to the Department under this Act, in accordance with
8		reasonable rules adopted by the Department. If the Department
9		subsequently determines that all or any part of the credit
10		taken was not actually due to the operator, the operator's
11		discount shall be reduced by an amount equal to the difference
12		between the discount as applied to the credit taken and that
13		actually due, and that operator shall be liable for penalties
14		and interest on such difference.
15		There shall be deposited into the Build Illinois Fund in
16		the State Treasury for each State fiscal year 40% of the amount
17		of total net revenue from the tax imposed by subsection (a) of
18		Section 3. Of the remaining 60%: (i) $5,000,000 shall be
19		deposited into the Illinois Sports Facilities Fund and
20		credited to the Subsidy Account each fiscal year by making
21		monthly deposits in the amount of 1/8 of $5,000,000 plus
22		cumulative deficiencies in such deposits for prior months, and
23		(ii) an amount equal to the then applicable Advance Amount
24		shall be deposited into the Illinois Sports Facilities Fund
25		and credited to the Advance Account each fiscal year by making
26		monthly deposits in the amount of 1/8 of the then applicable

HB4951 Enrolled - 246 - LRB103 38094 HLH 68226 b
1		Advance Amount plus any cumulative deficiencies in such
2		deposits for prior months. (The deposits of the then
3		applicable Advance Amount during each fiscal year shall be
4		treated as advances of funds to the Illinois Sports Facilities
5		Authority for its corporate purposes to the extent paid to the
6		Authority or its trustee and shall be repaid into the General
7		Revenue Fund in the State Treasury by the State Treasurer on
8		behalf of the Authority pursuant to Section 19 of the Illinois
9		Sports Facilities Authority Act, as amended. If in any fiscal
10		year the full amount of the then applicable Advance Amount is
11		not repaid into the General Revenue Fund, then the deficiency
12		shall be paid from the amount in the Local Government
13		Distributive Fund that would otherwise be allocated to the
14		City of Chicago under the State Revenue Sharing Act.)
15		For purposes of the foregoing paragraph, the term "Advance
16		Amount" means, for fiscal year 2002, $22,179,000, and for
17		subsequent fiscal years through fiscal year 2033, 105.615% of
18		the Advance Amount for the immediately preceding fiscal year,
19		rounded up to the nearest $1,000.
20		Of the remaining 60% of the amount of total net revenue
21		beginning on August 1, 2011 through June 30, 2023, from the tax
22		imposed by subsection (a) of Section 3 after all required
23		deposits into the Illinois Sports Facilities Fund, an amount
24		equal to 8% of the net revenue realized from this Act during
25		the preceding month shall be deposited as follows: 18% of such
26		amount shall be deposited into the Chicago Travel Industry

HB4951 Enrolled - 247 - LRB103 38094 HLH 68226 b
1		Promotion Fund for the purposes described in subsection (n) of
2		Section 5 of the Metropolitan Pier and Exposition Authority
3		Act and the remaining 82% of such amount shall be deposited
4		into the Local Tourism Fund each month for purposes authorized
5		by Section 605-705 of the Department of Commerce and Economic
6		Opportunity Law. Beginning on August 1, 2011 and through June
7		30, 2023, an amount equal to 4.5% of the net revenue realized
8		from this Act during the preceding month shall be deposited as
9		follows: 55% of such amount shall be deposited into the
10		Chicago Travel Industry Promotion Fund for the purposes
11		described in subsection (n) of Section 5 of the Metropolitan
12		Pier and Exposition Authority Act and the remaining 45% of
13		such amount deposited into the International Tourism Fund for
14		the purposes authorized in Section 605-707 of the Department
15		of Commerce and Economic Opportunity Law. "Net revenue
16		realized" means the revenue collected by the State under this
17		Act less the amount paid out as refunds to taxpayers for
18		overpayment of liability under this Act.
19		Beginning on July 1, 2023, of the remaining 60% of the
20		amount of total net revenue realized from the tax imposed
21		under subsection (a) of Section 3, after all required deposits
22		into the Illinois Sports Facilities Fund:
23		(1) an amount equal to 8% of the net revenue realized
24		under this Act for the preceding month shall be deposited
25		as follows: 82% to the Local Tourism Fund and 18% to the
26		Chicago Travel Industry Promotion Fund; and

HB4951 Enrolled - 248 - LRB103 38094 HLH 68226 b
1		(2) an amount equal to 4.5% of the net revenue
2		realized under this Act for the preceding month shall be
3		deposited as follows: 55% to the Chicago Travel Industry
4		Promotion Fund and 45% to the International Tourism Fund.
5		After making all these deposits, any remaining net revenue
6		realized from the tax imposed under subsection (a) of Section
7		3 shall be deposited into the Tourism Promotion Fund in the
8		State Treasury. All moneys received by the Department from the
9		additional tax imposed under subsection (b) of Section 3 shall
10		be deposited into the Build Illinois Fund in the State
11		Treasury.
12		The Department may, upon separate written notice to a
13		taxpayer, require the taxpayer to prepare and file with the
14		Department on a form prescribed by the Department within not
15		less than 60 days after receipt of the notice an annual
16		information return for the tax year specified in the notice.
17		Such annual return to the Department shall include a statement
18		of gross receipts as shown by the operator's last State income
19		tax return. If the total receipts of the business as reported
20		in the State income tax return do not agree with the gross
21		receipts reported to the Department for the same period, the
22		operator shall attach to his annual information return a
23		schedule showing a reconciliation of the 2 amounts and the
24		reasons for the difference. The operator's annual information
25		return to the Department shall also disclose payroll
26		information of the operator's business during the year covered

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1		by such return and any additional reasonable information which
2		the Department deems would be helpful in determining the
3		accuracy of the monthly, quarterly or annual tax returns by
4		such operator as hereinbefore provided for in this Section.
5		If the annual information return required by this Section
6		is not filed when and as required the taxpayer shall be liable
7		for a penalty in an amount determined in accordance with
8		Section 3-4 of the Uniform Penalty and Interest Act until such
9		return is filed as required, the penalty to be assessed and
10		collected in the same manner as any other penalty provided for
11		in this 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 an
22		operator who is not required to file an income tax return with
23		the United States Government.
24		(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
25		Section 65-10. The Illinois Municipal Code is amended by

HB4951 Enrolled - 250 - LRB103 38094 HLH 68226 b
1		changing Section 8-3-13 as follows:
2		(65 ILCS 5/8-3-13) (from Ch. 24, par. 8-3-13)
3		Sec. 8-3-13. The corporate authorities of any municipality
4		containing 500,000 or more inhabitants may impose a tax prior
5		to July 1, 1969, upon all hotel operators persons engaged in
6		the municipality in the business of renting, leasing or
7		letting rooms in a hotel, as defined in the Hotel Operators'
8		Occupation Tax Act, at a rate not to exceed 1% of the gross
9		rental receipts from engaging in business as a hotel operator
10		the renting, leasing or letting, excluding, however, from
11		gross rental receipts, the proceeds of the renting, leasing or
12		letting of hotel rooms to permanent residents of a that hotel
13		and proceeds from the tax imposed under subsection (c) of
14		Section 13 of the Metropolitan Pier and Exposition Authority
15		Act.
16		The tax imposed by a municipality under this Section and
17		all civil penalties that may be assessed as an incident
18		thereof shall be collected and enforced by the State
19		Department of Revenue. The certificate of registration that is
20		issued by the Department to a lessor under the Hotel
21		Operators' Occupation Tax Act shall permit the registrant to
22		engage in a business that is taxable under any ordinance or
23		resolution enacted under this Section without registering
24		separately with the Department under the ordinance or
25		resolution or under this Section. The Department shall have

HB4951 Enrolled - 251 - LRB103 38094 HLH 68226 b
1		full power to administer and enforce this Section; to collect
2		all taxes and penalties due hereunder; to dispose of taxes and
3		penalties so collected in the manner provided in this Section;
4		and to determine all rights to credit memoranda arising on
5		account of the erroneous payment of tax or penalty hereunder.
6		In the administration of and compliance with this Section, the
7		Department and persons who are subject to this Section shall
8		have the same rights, remedies, privileges, immunities, powers
9		and duties, and be subject to the same conditions,
10		restrictions, limitations, penalties and definitions of terms,
11		and employ the same modes of procedure, as are prescribed in
12		the Hotel Operators' Occupation Tax Act and the Uniform
13		Penalty and Interest Act, as fully as if the provisions
14		contained in those Acts were set forth herein.
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 warrant 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 Illinois tourism tax fund.
22		Persons subject to any tax imposed under authority granted
23		by this Section may reimburse themselves for their tax
24		liability for that tax by separately stating the tax as an
25		additional charge, which charge may be stated in combination,
26		in a single amount, with State tax imposed under the Hotel

HB4951 Enrolled - 252 - LRB103 38094 HLH 68226 b
1		Operators' Occupation Tax Act.
2		The Department shall forthwith pay over to the State
3		Treasurer, ex-officio, as trustee, all taxes and penalties
4		collected hereunder. On or before the 25th day of each
5		calendar month, the Department shall prepare and certify to
6		the Comptroller the disbursement of stated sums of money to
7		named municipalities from which lessors have paid taxes or
8		penalties hereunder to the Department during the second
9		preceding calendar month. The amount to be paid to each
10		municipality shall be the amount (not including credit
11		memoranda) collected hereunder during the second preceding
12		calendar month by the Department, and not including an amount
13		equal to the amount of refunds made during the second
14		preceding calendar month by the Department on behalf of the
15		municipality, less 4% of the balance, which sum shall be
16		retained by the State Treasurer to cover the costs incurred by
17		the Department in administering and enforcing the provisions
18		of this Section, as provided herein. The Department, at the
19		time of each monthly disbursement to the municipalities, shall
20		prepare and certify to the Comptroller the amount so retained
21		by the State Treasurer, which shall be paid into the General
22		Revenue Fund of the State Treasury.
23		Within 10 days after receipt by the Comptroller of the
24		disbursement certification to the municipalities and the
25		General Revenue Fund provided for in this Section to be given
26		to the Comptroller by the Department, the Comptroller shall

HB4951 Enrolled - 253 - LRB103 38094 HLH 68226 b
1		cause the warrants to be drawn for the respective amounts in
2		accordance with the directions contained in the certification.
3		Nothing in this Section shall be construed to authorize a
4		municipality to impose a tax upon the privilege of engaging in
5		any business that, under the Constitution of the United
6		States, may not be made the subject of taxation by this State.
7		An ordinance or resolution imposing a tax hereunder or
8		effecting a change in the rate thereof shall be effective on
9		the first day of the calendar month next following the
10		expiration of the publication period provided in Section 1-2-4
11		in respect to municipalities governed by that Section.
12		The corporate authorities of any municipality that levies
13		a tax authorized by this Section shall transmit to the
14		Department of Revenue on or not later than 5 days after the
15		effective date of the ordinance or resolution a certified copy
16		of the ordinance or resolution imposing the tax; whereupon,
17		the Department of Revenue shall proceed to administer and
18		enforce this Section on behalf of the municipality as of the
19		effective date of the ordinance or resolution. Upon a change
20		in rate of a tax levied hereunder, or upon the discontinuance
21		of the tax, the corporate authorities of the municipality
22		shall, on or not later than 5 days after the effective date of
23		the ordinance or resolution discontinuing the tax or effecting
24		a change in rate, transmit to the Department of Revenue a
25		certified copy of the ordinance or resolution effecting the
26		change or discontinuance. The amounts disbursed to any

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1		municipality under this Section shall be expended by the
2		municipality solely to promote tourism, conventions and other
3		special events within that municipality or otherwise to
4		attract nonresidents to visit the municipality.
5		Any municipality receiving and disbursing money under this
6		Section shall report on or before the first Monday in January
7		of each year to the Advisory Committee of the Illinois Tourism
8		Promotion Fund, created by Section 12 of the Illinois
9		Promotion Act. The reports shall specify the purposes for
10		which the disbursements were made and shall contain detailed
11		amounts of all receipts and disbursements under this Section.
12		This Section may be cited as the Tourism, Conventions and
13		Other Special Events Promotion Act of 1967.
14		(Source: P.A. 87-205; 87-733; 87-895.)
15		Section 65-15. The Metropolitan Pier and Exposition
16		Authority Act is amended by changing Section 13 as follows:
17		(70 ILCS 210/13) (from Ch. 85, par. 1233)
18		Sec. 13. (a) The Authority shall not have power to levy
19		taxes for any purpose, except as provided in subsections (b),
20		(c), (d), (e), and (f).
21		(b) By ordinance the Authority shall, as soon as
22		practicable after July 1, 1992 (the effective date of Public
23		Act 87-733), impose a Metropolitan Pier and Exposition
24		Authority Retailers' Occupation Tax upon all persons engaged

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1		in the business of selling tangible personal property at
2		retail within the territory described in this subsection at
3		the rate of 1.0% of the gross receipts (i) from the sale of
4		food, alcoholic beverages, and soft drinks sold for
5		consumption on the premises where sold and (ii) from the sale
6		of food, alcoholic beverages, and soft drinks sold for
7		consumption off the premises where sold by a retailer whose
8		principal source of gross receipts is from the sale of food,
9		alcoholic beverages, and soft drinks prepared for immediate
10		consumption.
11		The tax imposed under this subsection and all civil
12		penalties that may be assessed as an incident to that tax shall
13		be collected and enforced by the Illinois Department of
14		Revenue. The Department shall have full power to administer
15		and enforce this subsection, to collect all taxes and
16		penalties so collected in the manner provided in this
17		subsection, and to determine all rights to credit memoranda
18		arising on account of the erroneous payment of tax or penalty
19		under this subsection. In the administration of and compliance
20		with this subsection, the Department and persons who are
21		subject to this subsection shall have the same rights,
22		remedies, privileges, immunities, powers, and duties, shall be
23		subject to the same conditions, restrictions, limitations,
24		penalties, exclusions, exemptions, and definitions of terms,
25		and shall employ the same modes of procedure applicable to
26		this Retailers' Occupation Tax as are prescribed in Sections

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1		1, 2 through 2-65 (in respect to all provisions of those
2		Sections other than the State rate of taxes), 2c, 2h, 2i, 3
3		(except as to the disposition of taxes and penalties
4		collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a,
5		6b, 6c, 7, 8, 9, 10, 11, 12, 13, and, until January 1, 1994,
6		13.5 of the Retailers' Occupation Tax Act, and, on and after
7		January 1, 1994, all applicable provisions of the Uniform
8		Penalty and Interest Act that are not inconsistent with this
9		Act, as fully as if provisions contained in those Sections of
10		the Retailers' Occupation Tax Act were set forth in this
11		subsection.
12		Persons subject to any tax imposed under the authority
13		granted in this subsection may reimburse themselves for their
14		seller's tax liability under this subsection by separately
15		stating that tax as an additional charge, which charge may be
16		stated in combination, in a single amount, with State taxes
17		that sellers are required to collect under the Use Tax Act,
18		pursuant to bracket schedules as the Department may prescribe.
19		The retailer filing the return shall, at the time of filing the
20		return, pay to the Department the amount of tax imposed under
21		this subsection, less a discount of 1.75%, which is allowed to
22		reimburse the retailer for the expenses incurred in keeping
23		records, preparing and filing returns, remitting the tax, and
24		supplying data to the Department on request.
25		Whenever the Department determines that a refund should be
26		made under this subsection to a claimant instead of issuing a

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1		credit memorandum, the Department shall notify the State
2		Comptroller, who shall cause a warrant to be drawn for the
3		amount specified and to the person named in the notification
4		from the Department. The refund shall be paid by the State
5		Treasurer out of the Metropolitan Pier and Exposition
6		Authority trust fund held by the State Treasurer as trustee
7		for the Authority.
8		Nothing in this subsection authorizes the Authority to
9		impose a tax upon the privilege of engaging in any business
10		that under the Constitution of the United States may not be
11		made the subject of taxation by this State.
12		The Department shall forthwith pay over to the State
13		Treasurer, ex officio, as trustee for the Authority, all taxes
14		and penalties collected under this subsection for deposit into
15		a trust fund held outside of the State Treasury.
16		As soon as possible after the first day of each month,
17		beginning January 1, 2011, upon certification of the
18		Department of Revenue, the Comptroller shall order
19		transferred, and the Treasurer shall transfer, to the STAR
20		Bonds Revenue Fund the local sales tax increment, as defined
21		in the Innovation Development and Economy Act, collected under
22		this subsection during the second preceding calendar month for
23		sales within a STAR bond district.
24		After the monthly transfer to the STAR Bonds Revenue Fund,
25		on or before the 25th day of each calendar month, the
26		Department shall prepare and certify to the Comptroller the

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1		amounts to be paid under subsection (g) of this Section, which
2		shall be the amounts, not including credit memoranda,
3		collected under this subsection during the second preceding
4		calendar month by the Department, less any amounts determined
5		by the Department to be necessary for the payment of refunds,
6		less 1.5% of such balance, which sum shall be deposited by the
7		State Treasurer into the Tax Compliance and Administration
8		Fund in the State Treasury from which it shall be appropriated
9		to the Department to cover the costs of the Department in
10		administering and enforcing the provisions of this subsection,
11		and less any amounts that are transferred to the STAR Bonds
12		Revenue Fund. Within 10 days after receipt by the Comptroller
13		of the certification, the Comptroller shall cause the orders
14		to be drawn for the remaining amounts, and the Treasurer shall
15		administer those amounts as required in subsection (g).
16		A certificate of registration issued by the Illinois
17		Department of Revenue to a retailer under the Retailers'
18		Occupation Tax Act shall permit the registrant to engage in a
19		business that is taxed under the tax imposed under this
20		subsection, and no additional registration shall be required
21		under the ordinance imposing the tax or under this subsection.
22		A certified copy of any ordinance imposing or
23		discontinuing any tax under this subsection or effecting a
24		change in the rate of that tax shall be filed with the
25		Department, whereupon the Department shall proceed to
26		administer and enforce this subsection on behalf of the

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1		Authority as of the first day of the third calendar month
2		following the date of filing.
3		The tax authorized to be levied under this subsection may
4		be levied within all or any part of the following described
5		portions of the metropolitan area:
6		(1) that portion of the City of Chicago located within
7		the following area: Beginning at the point of intersection
8		of the Cook County - DuPage County line and York Road, then
9		North along York Road to its intersection with Touhy
10		Avenue, then east along Touhy Avenue to its intersection
11		with the Northwest Tollway, then southeast along the
12		Northwest Tollway to its intersection with Lee Street,
13		then south along Lee Street to Higgins Road, then south
14		and east along Higgins Road to its intersection with
15		Mannheim Road, then south along Mannheim Road to its
16		intersection with Irving Park Road, then west along Irving
17		Park Road to its intersection with the Cook County -
18		DuPage County line, then north and west along the county
19		line to the point of beginning; and
20		(2) that portion of the City of Chicago located within
21		the following area: Beginning at the intersection of West
22		55th Street with Central Avenue, then east along West 55th
23		Street to its intersection with South Cicero Avenue, then
24		south along South Cicero Avenue to its intersection with
25		West 63rd Street, then west along West 63rd Street to its
26		intersection with South Central Avenue, then north along

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1		South Central Avenue to the point of beginning; and
2		(3) that portion of the City of Chicago located within
3		the following area: Beginning at the point 150 feet west
4		of the intersection of the west line of North Ashland
5		Avenue and the north line of West Diversey Avenue, then
6		north 150 feet, then east along a line 150 feet north of
7		the north line of West Diversey Avenue extended to the
8		shoreline of Lake Michigan, then following the shoreline
9		of Lake Michigan (including Navy Pier and all other
10		improvements fixed to land, docks, or piers) to the point
11		where the shoreline of Lake Michigan and the Adlai E.
12		Stevenson Expressway extended east to that shoreline
13		intersect, then west along the Adlai E. Stevenson
14		Expressway to a point 150 feet west of the west line of
15		South Ashland Avenue, then north along a line 150 feet
16		west of the west line of South and North Ashland Avenue to
17		the point of beginning.
18		The tax authorized to be levied under this subsection may
19		also be levied on food, alcoholic beverages, and soft drinks
20		sold on boats and other watercraft departing from and
21		returning to the shoreline of Lake Michigan (including Navy
22		Pier and all other improvements fixed to land, docks, or
23		piers) described in item (3).
24		(c) By ordinance the Authority shall, as soon as
25		practicable after July 1, 1992 (the effective date of Public
26		Act 87-733), impose an occupation tax upon all hotel operators

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1		persons engaged in the corporate limits of the City of Chicago
2		in the business of renting, leasing, or letting rooms in a
3		hotel, as defined in the Hotel Operators' Occupation Tax Act,
4		at a rate of 2.5% of the gross rental receipts from engaging in
5		business as a hotel operator the renting, leasing, or letting
6		of hotel rooms within the City of Chicago, excluding, however,
7		from gross rental receipts the proceeds of renting, leasing,
8		or letting of hotel rooms to permanent residents of a hotel, as
9		defined in that Act. Gross rental receipts shall not include
10		charges that are added on account of the liability arising
11		from any tax imposed by the State or any governmental agency on
12		the occupation of renting, leasing, or letting rooms in a
13		hotel.
14		The tax imposed by the Authority under this subsection and
15		all civil penalties that may be assessed as an incident to that
16		tax shall be collected and enforced by the Illinois Department
17		of Revenue. The certificate of registration that is issued by
18		the Department to a lessor under the Hotel Operators'
19		Occupation Tax Act shall permit that registrant to engage in a
20		business that is taxable under any ordinance enacted under
21		this subsection without registering separately with the
22		Department under that ordinance or under this subsection. The
23		Department shall have full power to administer and enforce
24		this subsection, to collect all taxes and penalties due under
25		this subsection, to dispose of taxes and penalties so
26		collected in the manner provided in this subsection, and to

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1		determine all rights to credit memoranda arising on account of
2		the erroneous payment of tax or penalty under this subsection.
3		In the administration of and compliance with this subsection,
4		the Department and persons who are subject to this subsection
5		shall have the same rights, remedies, privileges, immunities,
6		powers, and duties, shall be subject to the same conditions,
7		restrictions, limitations, penalties, and definitions of
8		terms, and shall employ the same modes of procedure as are
9		prescribed in the Hotel Operators' Occupation Tax Act (except
10		where that Act is inconsistent with this subsection), as fully
11		as if the provisions contained in the Hotel Operators'
12		Occupation Tax Act were set out in this subsection.
13		Whenever the Department determines that a refund should be
14		made under this subsection to a claimant instead of issuing a
15		credit memorandum, the Department shall notify the State
16		Comptroller, who shall cause a 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 Metropolitan Pier and Exposition
20		Authority trust fund held by the State Treasurer as trustee
21		for the Authority.
22		Persons subject to any tax imposed under the authority
23		granted in this subsection may reimburse themselves for their
24		tax liability for that tax by separately stating that tax as an
25		additional charge, which charge may be stated in combination,
26		in a single amount, with State taxes imposed under the Hotel

HB4951 Enrolled - 263 - LRB103 38094 HLH 68226 b
1		Operators' Occupation Tax Act, the municipal tax imposed under
2		Section 8-3-13 of the Illinois Municipal Code, and the tax
3		imposed under Section 19 of the Illinois Sports Facilities
4		Authority Act.
5		The person filing the return shall, at the time of filing
6		the return, pay to the Department the amount of tax, less a
7		discount of 2.1% or $25 per calendar year, whichever is
8		greater, which is allowed to reimburse the operator for the
9		expenses incurred in keeping records, preparing and filing
10		returns, remitting the tax, and supplying data to the
11		Department on request.
12		Except as otherwise provided in this paragraph, the
13		Department shall forthwith pay over to the State Treasurer, ex
14		officio, as trustee for the Authority, all taxes and penalties
15		collected under this subsection for deposit into a trust fund
16		held outside the State Treasury. On or before the 25th day of
17		each calendar month, the Department shall certify to the
18		Comptroller the amounts to be paid under subsection (g) of
19		this Section, which shall be the amounts (not including credit
20		memoranda) collected under this subsection during the second
21		preceding calendar month by the Department, less any amounts
22		determined by the Department to be necessary for payment of
23		refunds, less 1.5% of the remainder, which the Department
24		shall transfer into the Tax Compliance and Administration
25		Fund. The Department, at the time of each monthly disbursement
26		to the Authority, shall prepare and certify to the State

HB4951 Enrolled - 264 - LRB103 38094 HLH 68226 b
1		Comptroller the amount to be transferred into the Tax
2		Compliance and Administration Fund under this subsection.
3		Within 10 days after receipt by the Comptroller of the
4		Department's certification, the Comptroller shall cause the
5		orders to be drawn for such amounts, and the Treasurer shall
6		administer the amounts distributed to the Authority as
7		required in subsection (g).
8		A certified copy of any ordinance imposing or
9		discontinuing a tax under this subsection or effecting a
10		change in the rate of that tax shall be filed with the Illinois
11		Department of Revenue, whereupon the Department shall proceed
12		to administer and enforce this subsection on behalf of the
13		Authority as of the first day of the third calendar month
14		following the date of filing.
15		(d) By ordinance the Authority shall, as soon as
16		practicable after July 1, 1992 (the effective date of Public
17		Act 87-733), impose a tax upon all persons engaged in the
18		business of renting automobiles in the metropolitan area at
19		the rate of 6% of the gross receipts from that business, except
20		that no tax shall be imposed on the business of renting
21		automobiles for use as taxicabs or in livery service. The tax
22		imposed under this subsection and all civil penalties that may
23		be assessed as an incident to that tax shall be collected and
24		enforced by the Illinois Department of Revenue. The
25		certificate of registration issued by the Department to a
26		retailer under the Retailers' Occupation Tax Act or under the

HB4951 Enrolled - 265 - LRB103 38094 HLH 68226 b
1		Automobile Renting Occupation and Use Tax Act shall permit
2		that person to engage in a business that is taxable under any
3		ordinance enacted under this subsection without registering
4		separately with the Department under that ordinance or under
5		this subsection. The Department shall have full power to
6		administer and enforce this subsection, to collect all taxes
7		and penalties due under this subsection, to dispose of taxes
8		and penalties so collected in the manner provided in this
9		subsection, and to determine all rights to credit memoranda
10		arising on account of the erroneous payment of tax or penalty
11		under this subsection. In the administration of and compliance
12		with this subsection, the Department and persons who are
13		subject to this subsection shall have the same rights,
14		remedies, privileges, immunities, powers, and duties, be
15		subject to the same conditions, restrictions, limitations,
16		penalties, and definitions of terms, and employ the same modes
17		of procedure as are prescribed in Sections 2 and 3 (in respect
18		to all provisions of those Sections other than the State rate
19		of tax; and in respect to the provisions of the Retailers'
20		Occupation Tax Act referred to in those Sections, except as to
21		the disposition of taxes and penalties collected, except for
22		the provision allowing retailers a deduction from the tax to
23		cover certain costs, and except that credit memoranda issued
24		under this subsection may not be used to discharge any State
25		tax liability) of the Automobile Renting Occupation and Use
26		Tax Act, as fully as if provisions contained in those Sections

HB4951 Enrolled - 266 - LRB103 38094 HLH 68226 b
1		of that Act were set forth in this subsection.
2		Persons subject to any tax imposed under the authority
3		granted in this subsection may reimburse themselves for their
4		tax liability under this subsection by separately stating that
5		tax as an additional charge, which charge may be stated in
6		combination, in a single amount, with State tax that sellers
7		are required to collect under the Automobile Renting
8		Occupation and Use Tax Act, pursuant to bracket schedules as
9		the Department may prescribe.
10		Whenever the Department determines that a refund should be
11		made under this subsection to a claimant instead of issuing a
12		credit memorandum, the Department shall notify the State
13		Comptroller, who shall cause a warrant to be drawn for the
14		amount specified and to the person named in the notification
15		from the Department. The refund shall be paid by the State
16		Treasurer out of the Metropolitan Pier and Exposition
17		Authority trust fund held by the State Treasurer as trustee
18		for the Authority.
19		Except as otherwise provided in this paragraph, the
20		Department shall forthwith pay over to the State Treasurer, ex
21		officio, as trustee, all taxes and penalties collected under
22		this subsection for deposit into a trust fund held outside the
23		State Treasury. On or before the 25th day of each calendar
24		month, the Department shall certify to the Comptroller the
25		amounts to be paid under subsection (g) of this Section (not
26		including credit memoranda) collected under this subsection

HB4951 Enrolled - 267 - LRB103 38094 HLH 68226 b
1		during the second preceding calendar month by the Department,
2		less any amount determined by the Department to be necessary
3		for payment of refunds, less 1.5% of the remainder, which the
4		Department shall transfer into the Tax Compliance and
5		Administration Fund. The Department, at the time of each
6		monthly disbursement to the Authority, shall prepare and
7		certify to the State Comptroller the amount to be transferred
8		into the Tax Compliance and Administration Fund under this
9		subsection. Within 10 days after receipt by the Comptroller of
10		the Department's certification, the Comptroller shall cause
11		the orders to be drawn for such amounts, and the Treasurer
12		shall administer the amounts distributed to the Authority as
13		required in subsection (g).
14		Nothing in this subsection authorizes the Authority to
15		impose a tax upon the privilege of engaging in any business
16		that under the Constitution of the United States may not be
17		made the subject of taxation by this State.
18		A certified copy of any ordinance imposing or
19		discontinuing a tax under this subsection or effecting a
20		change in the rate of that tax shall be filed with the Illinois
21		Department of Revenue, whereupon the Department shall proceed
22		to administer and enforce this subsection on behalf of the
23		Authority as of the first day of the third calendar month
24		following the date of filing.
25		(e) By ordinance the Authority shall, as soon as
26		practicable after July 1, 1992 (the effective date of Public

HB4951 Enrolled - 268 - LRB103 38094 HLH 68226 b
1		Act 87-733), impose a tax upon the privilege of using in the
2		metropolitan area an automobile that is rented from a rentor
3		outside Illinois and is titled or registered with an agency of
4		this State's government at a rate of 6% of the rental price of
5		that automobile, except that no tax shall be imposed on the
6		privilege of using automobiles rented for use as taxicabs or
7		in livery service. The tax shall be collected from persons
8		whose Illinois address for titling or registration purposes is
9		given as being in the metropolitan area. The tax shall be
10		collected by the Department of Revenue for the Authority. The
11		tax must be paid to the State or an exemption determination
12		must be obtained from the Department of Revenue before the
13		title or certificate of registration for the property may be
14		issued. The tax or proof of exemption may be transmitted to the
15		Department by way of the State agency with which or State
16		officer with whom the tangible personal property must be
17		titled or registered if the Department and that agency or
18		State officer determine that this procedure will expedite the
19		processing of applications for title or registration.
20		The Department shall have full power to administer and
21		enforce this subsection, to collect all taxes, penalties, and
22		interest due under this subsection, to dispose of taxes,
23		penalties, and interest so collected in the manner provided in
24		this subsection, and to determine all rights to credit
25		memoranda or refunds arising on account of the erroneous
26		payment of tax, penalty, or interest under this subsection. In

HB4951 Enrolled - 269 - LRB103 38094 HLH 68226 b
1		the administration of and compliance with this subsection, the
2		Department and persons who are subject to this subsection
3		shall have the same rights, remedies, privileges, immunities,
4		powers, and duties, be subject to the same conditions,
5		restrictions, limitations, penalties, and definitions of
6		terms, and employ the same modes of procedure as are
7		prescribed in Sections 2 and 4 (except provisions pertaining
8		to the State rate of tax; and in respect to the provisions of
9		the Use Tax Act referred to in that Section, except provisions
10		concerning collection or refunding of the tax by retailers,
11		except the provisions of Section 19 pertaining to claims by
12		retailers, except the last paragraph concerning refunds, and
13		except that credit memoranda issued under this subsection may
14		not be used to discharge any State tax liability) of the
15		Automobile Renting Occupation and Use Tax Act, as fully as if
16		provisions contained in those Sections of that Act were set
17		forth in this subsection.
18		Whenever the Department determines that a refund should be
19		made under this subsection to a claimant instead of issuing a
20		credit memorandum, the Department shall notify the State
21		Comptroller, who shall cause a warrant to be drawn for the
22		amount specified and to the person named in the notification
23		from the Department. The refund shall be paid by the State
24		Treasurer out of the Metropolitan Pier and Exposition
25		Authority trust fund held by the State Treasurer as trustee
26		for the Authority.

HB4951 Enrolled - 270 - LRB103 38094 HLH 68226 b
1		Except as otherwise provided in this paragraph, the
2		Department shall forthwith pay over to the State Treasurer, ex
3		officio, as trustee, all taxes, penalties, and interest
4		collected under this subsection for deposit into a trust fund
5		held outside the State Treasury. On or before the 25th day of
6		each calendar month, the Department shall certify to the State
7		Comptroller the amounts to be paid under subsection (g) of
8		this Section, which shall be the amounts (not including credit
9		memoranda) collected under this subsection during the second
10		preceding calendar month by the Department, less any amounts
11		determined by the Department to be necessary for payment of
12		refunds, less 1.5% of the remainder, which the Department
13		shall transfer into the Tax Compliance and Administration
14		Fund. The Department, at the time of each monthly disbursement
15		to the Authority, shall prepare and certify to the State
16		Comptroller the amount to be transferred into the Tax
17		Compliance and Administration Fund under this subsection.
18		Within 10 days after receipt by the State Comptroller of the
19		Department's certification, the Comptroller shall cause the
20		orders to be drawn for such amounts, and the Treasurer shall
21		administer the amounts distributed to the Authority as
22		required in subsection (g).
23		A certified copy of any ordinance imposing or
24		discontinuing a tax or effecting a change in the rate of that
25		tax shall be filed with the Illinois Department of Revenue,
26		whereupon the Department shall proceed to administer and

HB4951 Enrolled - 271 - LRB103 38094 HLH 68226 b
1		enforce this subsection on behalf of the Authority as of the
2		first day of the third calendar month following the date of
3		filing.
4		(f) By ordinance the Authority shall, as soon as
5		practicable after July 1, 1992 (the effective date of Public
6		Act 87-733), impose an occupation tax on all persons, other
7		than a governmental agency, engaged in the business of
8		providing ground transportation for hire to passengers in the
9		metropolitan area at a rate of (i) $4 per taxi or livery
10		vehicle departure with passengers for hire from commercial
11		service airports in the metropolitan area, (ii) for each
12		departure with passengers for hire from a commercial service
13		airport in the metropolitan area in a bus or van operated by a
14		person other than a person described in item (iii): $18 per bus
15		or van with a capacity of 1-12 passengers, $36 per bus or van
16		with a capacity of 13-24 passengers, and $54 per bus or van
17		with a capacity of over 24 passengers, and (iii) for each
18		departure with passengers for hire from a commercial service
19		airport in the metropolitan area in a bus or van operated by a
20		person regulated by the Interstate Commerce Commission or
21		Illinois Commerce Commission, operating scheduled service from
22		the airport, and charging fares on a per passenger basis: $2
23		per passenger for hire in each bus or van. The term "commercial
24		service airports" means those airports receiving scheduled
25		passenger service and enplaning more than 100,000 passengers
26		per year.

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1		In the ordinance imposing the tax, the Authority may
2		provide for the administration and enforcement of the tax and
3		the collection of the tax from persons subject to the tax as
4		the Authority determines to be necessary or practicable for
5		the effective administration of the tax. The Authority may
6		enter into agreements as it deems appropriate with any
7		governmental agency providing for that agency to act as the
8		Authority's agent to collect the tax.
9		In the ordinance imposing the tax, the Authority may
10		designate a method or methods for persons subject to the tax to
11		reimburse themselves for the tax liability arising under the
12		ordinance (i) by separately stating the full amount of the tax
13		liability as an additional charge to passengers departing the
14		airports, (ii) by separately stating one-half of the tax
15		liability as an additional charge to both passengers departing
16		from and to passengers arriving at the airports, or (iii) by
17		some other method determined by the Authority.
18		All taxes, penalties, and interest collected under any
19		ordinance adopted under this subsection, less any amounts
20		determined to be necessary for the payment of refunds and less
21		the taxes, penalties, and interest attributable to any
22		increase in the rate of tax authorized by Public Act 96-898,
23		shall be paid forthwith to the State Treasurer, ex officio,
24		for deposit into a trust fund held outside the State Treasury
25		and shall be administered by the State Treasurer as provided
26		in subsection (g) of this Section. All taxes, penalties, and

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1		interest attributable to any increase in the rate of tax
2		authorized by Public Act 96-898 shall be paid by the State
3		Treasurer as follows: 25% for deposit into the Convention
4		Center Support Fund, to be used by the Village of Rosemont for
5		the repair, maintenance, and improvement of the Donald E.
6		Stephens Convention Center and for debt service on debt
7		instruments issued for those purposes by the village and 75%
8		to the Authority to be used for grants to an organization
9		meeting the qualifications set out in Section 5.6 of this Act,
10		provided the Metropolitan Pier and Exposition Authority has
11		entered into a marketing agreement with such an organization.
12		(g) Amounts deposited from the proceeds of taxes imposed
13		by the Authority under subsections (b), (c), (d), (e), and (f)
14		of this Section and amounts deposited under Section 19 of the
15		Illinois Sports Facilities Authority Act shall be held in a
16		trust fund outside the State Treasury and, other than the
17		amounts transferred into the Tax Compliance and Administration
18		Fund under subsections (b), (c), (d), and (e), shall be
19		administered by the Treasurer as follows:
20		(1) An amount necessary for the payment of refunds
21		with respect to those taxes shall be retained in the trust
22		fund and used for those payments.
23		(2) On July 20 and on the 20th of each month
24		thereafter, provided that the amount requested in the
25		annual certificate of the Chairman of the Authority filed
26		under Section 8.25f of the State Finance Act has been

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1		appropriated for payment to the Authority, 1/8 of the
2		local tax transfer amount, together with any cumulative
3		deficiencies in the amounts transferred into the McCormick
4		Place Expansion Project Fund under this subparagraph (2)
5		during the fiscal year for which the certificate has been
6		filed, shall be transferred from the trust fund into the
7		McCormick Place Expansion Project Fund in the State
8		treasury until 100% of the local tax transfer amount has
9		been so transferred. "Local tax transfer amount" shall
10		mean the amount requested in the annual certificate, minus
11		the reduction amount. "Reduction amount" shall mean $41.7
12		million in fiscal year 2011, $36.7 million in fiscal year
13		2012, $36.7 million in fiscal year 2013, $36.7 million in
14		fiscal year 2014, and $31.7 million in each fiscal year
15		thereafter until 2035, provided that the reduction amount
16		shall be reduced by (i) the amount certified by the
17		Authority to the State Comptroller and State Treasurer
18		under Section 8.25 of the State Finance Act, as amended,
19		with respect to that fiscal year and (ii) in any fiscal
20		year in which the amounts deposited in the trust fund
21		under this Section exceed $343.3 million, exclusive of
22		amounts set aside for refunds and for the reserve account,
23		one dollar for each dollar of the deposits in the trust
24		fund above $343.3 million with respect to that year,
25		exclusive of amounts set aside for refunds and for the
26		reserve account.

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1		(3) On July 20, 2010, the Comptroller shall certify to
2		the Governor, the Treasurer, and the Chairman of the
3		Authority the 2010 deficiency amount, which means the
4		cumulative amount of transfers that were due from the
5		trust fund to the McCormick Place Expansion Project Fund
6		in fiscal years 2008, 2009, and 2010 under Section 13(g)
7		of this Act, as it existed prior to May 27, 2010 (the
8		effective date of Public Act 96-898), but not made. On
9		July 20, 2011 and on July 20 of each year through July 20,
10		2014, the Treasurer shall calculate for the previous
11		fiscal year the surplus revenues in the trust fund and pay
12		that amount to the Authority. On July 20, 2015 and on July
13		20 of each year thereafter to and including July 20, 2017,
14		as long as bonds and notes issued under Section 13.2 or
15		bonds and notes issued to refund those bonds and notes are
16		outstanding, the Treasurer shall calculate for the
17		previous fiscal year the surplus revenues in the trust
18		fund and pay one-half of that amount to the State
19		Treasurer for deposit into the General Revenue Fund until
20		the 2010 deficiency amount has been paid and shall pay the
21		balance of the surplus revenues to the Authority. On July
22		20, 2018 and on July 20 of each year thereafter, the
23		Treasurer shall calculate for the previous fiscal year the
24		surplus revenues in the trust fund and pay all of such
25		surplus revenues to the State Treasurer for deposit into
26		the General Revenue Fund until the 2010 deficiency amount

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1		has been paid. After the 2010 deficiency amount has been
2		paid, the Treasurer shall pay the balance of the surplus
3		revenues to the Authority. "Surplus revenues" means the
4		amounts remaining in the trust fund on June 30 of the
5		previous fiscal year (A) after the State Treasurer has set
6		aside in the trust fund (i) amounts retained for refunds
7		under subparagraph (1) and (ii) any amounts necessary to
8		meet the reserve account amount and (B) after the State
9		Treasurer has transferred from the trust fund to the
10		General Revenue Fund 100% of any post-2010 deficiency
11		amount. "Reserve account amount" means $15 million in
12		fiscal year 2011 and $30 million in each fiscal year
13		thereafter. The reserve account amount shall be set aside
14		in the trust fund and used as a reserve to be transferred
15		to the McCormick Place Expansion Project Fund in the event
16		the proceeds of taxes imposed under this Section 13 are
17		not sufficient to fund the transfer required in
18		subparagraph (2). "Post-2010 deficiency amount" means any
19		deficiency in transfers from the trust fund to the
20		McCormick Place Expansion Project Fund with respect to
21		fiscal years 2011 and thereafter. It is the intention of
22		this subparagraph (3) that no surplus revenues shall be
23		paid to the Authority with respect to any year in which a
24		post-2010 deficiency amount has not been satisfied by the
25		Authority.
26		Moneys received by the Authority as surplus revenues may

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1		be used (i) for the purposes of paying debt service on the
2		bonds and notes issued by the Authority, including early
3		redemption of those bonds or notes, (ii) for the purposes of
4		repair, replacement, and improvement of the grounds,
5		buildings, and facilities of the Authority, and (iii) for the
6		corporate purposes of the Authority in fiscal years 2011
7		through 2015 in an amount not to exceed $20,000,000 annually
8		or $80,000,000 total, which amount shall be reduced $0.75 for
9		each dollar of the receipts of the Authority in that year from
10		any contract entered into with respect to naming rights at
11		McCormick Place under Section 5(m) of this Act. When bonds and
12		notes issued under Section 13.2, or bonds or notes issued to
13		refund those bonds and notes, are no longer outstanding, the
14		balance in the trust fund shall be paid to the Authority.
15		(h) The ordinances imposing the taxes authorized by this
16		Section shall be repealed when bonds and notes issued under
17		Section 13.2 or bonds and notes issued to refund those bonds
18		and notes are no longer outstanding.
19		(Source: P.A. 100-23, Article 5, Section 5-35, eff. 7-6-17;
20		100-23, Article 35, Section 35-25, eff. 7-6-17; 100-587, eff.
21		6-4-18; 100-863, eff. 8-14-18; 101-636, eff. 6-10-20.)
22		Section 65-20. The Illinois Sports Facilities Authority
23		Act is amended by changing Section 19 as follows:
24		(70 ILCS 3205/19) (from Ch. 85, par. 6019)

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1		Sec. 19. Tax. The Authority may impose an occupation tax
2		upon all hotel operators persons engaged in the City of
3		Chicago in the business of renting, leasing or letting rooms
4		in a hotel, as defined in The Hotel Operators' Occupation Tax
5		Act, at a rate not to exceed 2% of the gross rental receipts
6		from engaging in business as a hotel operator the renting,
7		leasing or letting of hotel rooms located within the City of
8		Chicago, excluding, however, from gross rental receipts, the
9		proceeds of such renting, leasing or letting of hotel rooms to
10		permanent residents of a that hotel and proceeds from the tax
11		imposed under subsection (c) of Section 13 of the Metropolitan
12		Pier and Exposition Authority Act.
13		The tax imposed by the Authority pursuant to this Section
14		and all civil penalties that may be assessed as an incident
15		thereof shall be collected and enforced by the State
16		Department of Revenue. The certificate of registration which
17		is issued by the Department to a lessor under The Hotel
18		Operators' Occupation Tax Act shall permit such registrant to
19		engage in a business which is taxable under any ordinance or
20		resolution enacted pursuant to this Section without
21		registering separately with the Department under such
22		ordinance or resolution or under this Section. The Department
23		shall have full power to administer and enforce this Section;
24		to collect all taxes and penalties due hereunder; to dispose
25		of taxes and penalties so collected in the manner provided in
26		this Section, and to determine all rights to credit memoranda,

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1		arising on account of the erroneous payment of tax or penalty
2		hereunder. In the administration of, and compliance with, this
3		Section, the Department and persons who are subject to this
4		Section 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 prescribed in The Hotel Operators' Occupation Tax Act
9		(except where that Act is inconsistent herewith), as the same
10		is now or may hereafter be amended, as fully as if the
11		provisions contained in The Hotel Operators' Occupation Tax
12		Act were set forth herein.
13		Whenever the Department determines that a refund should be
14		made under this Section 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 such
18		notification from the Department. Such refund shall be paid by
19		the State Treasurer out of the amounts held by the State
20		Treasurer as trustee for the Authority.
21		Persons subject to any tax imposed pursuant to authority
22		granted by this Section may reimburse themselves for their tax
23		liability for such tax by separately stating such tax as an
24		additional charge, which charge may be stated in combination,
25		in a single amount, with State tax imposed under The Hotel
26		Operators' Occupation Tax Act, the municipal tax imposed under

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1		Section 8-3-13 of the Illinois Municipal Code, and the tax
2		imposed under Section 13 of the Metropolitan Pier and
3		Exposition Authority Act.
4		The Department shall forthwith pay over to the State
5		Treasurer, ex-officio, as trustee for the Authority, all taxes
6		and penalties collected hereunder for deposit in a trust fund
7		outside the State Treasury. On or before the 25th day of each
8		calendar month, the Department shall certify to the
9		Comptroller the amount to be paid to or on behalf of the
10		Authority from amounts collected hereunder by the Department,
11		and deposited into such trust fund during the second preceding
12		calendar month. The amount to be paid to or on behalf of the
13		Authority shall be the amount (not including credit memoranda)
14		collected hereunder during such second preceding calendar
15		month by the Department, less an amount equal to the amount of
16		refunds authorized during such second preceding calendar month
17		by the Department on behalf of the Authority, and less 4% of
18		such balance, which sum shall be retained by the State
19		Treasurer to cover the costs incurred by the Department in
20		administering and enforcing the provisions of this Section, as
21		provided herein. Each such monthly certification by the
22		Department shall also certify to the Comptroller the amount to
23		be so retained by the State Treasurer for payment into the
24		General Revenue Fund of the State Treasury.
25		Each monthly certification by the Department shall
26		certify, of the amount paid to or on behalf of the Authority,

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1		(i) the portion to be paid to the Authority, (ii) the portion
2		to be paid into the General Revenue Fund of the State Treasury
3		on behalf of the Authority as repayment of amounts advanced to
4		the Authority pursuant to appropriation from the Illinois
5		Sports Facilities Fund.
6		With respect to each State fiscal year, of the total
7		amount to be paid to or on behalf of the Authority, the
8		Department shall certify that payments shall first be made
9		directly to the Authority in an amount equal to any difference
10		between the annual amount certified by the Chairman of the
11		Authority pursuant to Section 8.25-4 of the State Finance Act
12		and the amount appropriated to the Authority from the Illinois
13		Sports Facilities Fund. Next, the Department shall certify
14		that payment shall be made into the General Revenue Fund of the
15		State Treasury in an amount equal to the difference between
16		(i) the lesser of (x) the amount appropriated from the
17		Illinois Sports Facilities Fund to the Authority and (y) the
18		annual amount certified by the Chairman of the Authority
19		pursuant to Section 8.25-4 of the State Finance Act and (ii)
20		$10,000,000. The Department shall certify that all additional
21		amounts shall be paid to the Authority and used for its
22		corporate purposes.
23		Within 10 days after receipt, by the Comptroller, of the
24		Department's monthly certification of amounts to be paid to or
25		on behalf of the Authority and amounts to be paid into the
26		General Revenue Fund, the Comptroller shall cause the warrants

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1		to be drawn for the respective amounts in accordance with the
2		directions contained in such certification.
3		Amounts collected by the Department and paid to the
4		Authority pursuant to this Section shall be used for the
5		corporate purposes of the Authority. On June 15, 1992 and on
6		each June 15 thereafter, the Authority shall repay to the
7		State Treasurer all amounts paid to it under this Section and
8		otherwise remaining available to the Authority after providing
9		for (i) payment of principal and interest on, and other
10		payments related to, its obligations issued or to be issued
11		under Section 13 of the Act, including any deposits required
12		to reserve funds created under any indenture or resolution
13		authorizing issuance of the obligations and payments to
14		providers of credit enhancement, (ii) payment of obligations
15		under the provisions of any management agreement with respect
16		to a facility or facilities owned by the Authority or of any
17		assistance agreement with respect to any facility for which
18		financial assistance is provided under this Act, and payment
19		of other capital and operating expenses of the Authority,
20		including any deposits required to reserve funds created for
21		repair and replacement of capital assets and to meet the
22		obligations of the Authority under any management agreement or
23		assistance agreement. Amounts repaid by the Authority to the
24		State Treasurer hereunder shall be treated as repayment of
25		amounts deposited into the Illinois Sports Facilities Fund and
26		credited to the Subsidy Account and used for the corporate

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1		purposes of the Authority. The State Treasurer shall deposit
2		$5,000,000 of the amount received into the General Revenue
3		Fund; thereafter, at the beginning of each fiscal year the
4		State Treasurer shall certify to the State Comptroller for all
5		prior fiscal years the cumulative amount of any deficiencies
6		in repayments to the City of Chicago of amounts in the Local
7		Government Distributive Fund that would otherwise have been
8		allocated to the City of Chicago under the State Revenue
9		Sharing Act but instead were paid into the General Revenue
10		Fund under Section 6 of the Hotel Operators' Occupation Tax
11		Act and that have not been reimbursed, and the Comptroller
12		shall, during the fiscal year at the beginning of which the
13		certification was made, cause warrants to be drawn from the
14		amount received for the repayment of that cumulative amount to
15		the City of Chicago until that cumulative amount has been
16		fully reimbursed; thereafter, the State Treasurer shall
17		deposit the balance of the amount received into the trust fund
18		established outside the State Treasury under subsection (g) of
19		Section 13 of the Metropolitan Pier and Exposition Authority
20		Act.
21		Nothing in this Section shall be construed to authorize
22		the Authority 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 a tax
26		hereunder or effecting a change in the rate thereof shall be

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1		effective on the first day of the second calendar month next
2		following the month in which the ordinance or resolution is
3		passed.
4		If the Authority levies a tax authorized by this Section
5		it shall transmit to the Department of Revenue not later than 5
6		days after the adoption of the ordinance or resolution a
7		certified copy of the ordinance or resolution imposing such
8		tax whereupon the Department of Revenue shall proceed to
9		administer and enforce this Section on behalf of the
10		Authority. Upon a change in rate of a tax levied hereunder, or
11		upon the discontinuance of the tax, the Authority shall not
12		later than 5 days after the effective date of the ordinance or
13		resolution discontinuing the tax or effecting a change in rate
14		transmit to the Department of Revenue a certified copy of the
15		ordinance or resolution effecting such change or
16		discontinuance.
17		(Source: P.A. 91-935, eff. 6-1-01.)
18		ARTICLE 70.
19		Section 70-5. The Motor Fuel Tax Law is amended by
20		changing Section 2a as follows:
21		(35 ILCS 505/2a) (from Ch. 120, par. 418a)
22		Sec. 2a. Except as hereinafter provided, on and after
23		January 1, 1990 and before January 1, 2030 January 1, 2025, a

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1		tax of three-tenths of a cent per gallon is imposed upon the
2		privilege of being a receiver in this State of fuel for sale or
3		use. Beginning January 1, 2021, this tax is not imposed on
4		sales of aviation fuel 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		The tax shall be paid by the receiver in this State who
8		first sells or uses fuel. In the case of a sale, the tax shall
9		be stated as a separate item on the invoice.
10		For the purpose of the tax imposed by this Section, being a
11		receiver of "motor fuel" as defined by Section 1.1 of this Act,
12		and aviation fuels, home heating oil and kerosene, but
13		excluding liquified petroleum gases, is subject to tax without
14		regard to whether the fuel is intended to be used for operation
15		of motor vehicles on the public highways and waters. However,
16		no such tax shall be imposed upon the importation or receipt of
17		aviation fuels and kerosene at airports with over 300,000
18		operations per year, for years prior to 1991, and over 170,000
19		operations per year beginning in 1991, located in a city of
20		more than 1,000,000 inhabitants for sale to or use by holders
21		of certificates of public convenience and necessity or foreign
22		air carrier permits, issued by the United States Department of
23		Transportation, and their air carrier affiliates, or upon the
24		importation or receipt of aviation fuels and kerosene at
25		facilities owned or leased by those certificate or permit
26		holders and used in their activities at an airport described

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1		above. In addition, no such tax shall be imposed upon the
2		importation or receipt of diesel fuel or liquefied natural gas
3		sold to or used by a rail carrier registered pursuant to
4		Section 18c-7201 of the Illinois Vehicle Code or otherwise
5		recognized by the Illinois Commerce Commission as a rail
6		carrier, to the extent used directly in railroad operations.
7		In addition, no such tax shall be imposed when the sale is made
8		with delivery to a purchaser outside this State or when the
9		sale is made to a person holding a valid license as a receiver.
10		In addition, no tax shall be imposed upon diesel fuel or
11		liquefied natural gas consumed or used in the operation of
12		ships, barges, or vessels, that are used primarily in or for
13		the transportation of property in interstate commerce for hire
14		on rivers bordering on this State, if the diesel fuel or
15		liquefied natural gas is delivered by a licensed receiver to
16		the purchaser's barge, ship, or vessel while it is afloat upon
17		that bordering river. A specific notation thereof shall be
18		made on the invoices or sales slips covering each sale.
19		(Source: P.A. 100-9, eff. 7-1-17; 101-604, eff. 12-13-19.)
20		Section 70-10. The Environmental Impact Fee Law is amended
21		by changing Section 390 as follows:
22		(415 ILCS 125/390)
23		(Section scheduled to be repealed on January 1, 2025)
24		Sec. 390. Repeal. This Article is repealed on January 1,

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1		2030 January 1, 2025.
2		(Source: P.A. 96-161, eff. 8-10-09.)
3		ARTICLE 75.
4		Section 75-5. The Use Tax Act is amended by changing
5		Sections 2, 3, 3-5, 3-10, 3-55, and 9 and by adding Section
6		1.05 as follows:
7		(35 ILCS 105/1.05 new)
8		Sec. 1.05. Legislative intent; leases. It is the intent of
9		the General Assembly in enacting this amendatory Act of the
10		103rd General Assembly to apply the tax imposed under this
11		Act, except as otherwise provided in this Act, to the
12		privilege of using in this State tangible personal property,
13		other than motor vehicles, watercraft, aircraft, and
14		semitrailers, as defined in Section 1-187 of the Illinois
15		Vehicle Code, that are required to be registered with an
16		agency of this State, leased at retail from a retailer, for
17		leases in effect, entered into, or renewed on or after January
18		1, 2025.
19		(35 ILCS 105/2) (from Ch. 120, par. 439.2)
20		Sec. 2. Definitions.
21		"Use" means the exercise by any person of any right or
22		power over tangible personal property incident to the

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1		ownership of that property, or, on and after January 1, 2025,
2		incident to the possession or control of, the right to possess
3		or control, or a license to use that property through a lease,
4		except that it does not include the sale of such property in
5		any form as tangible personal property in the regular course
6		of business to the extent that such property is not first
7		subjected to a use for which it was purchased, and does not
8		include the use of such property by its owner for
9		demonstration purposes: Provided that the property purchased
10		is deemed to be purchased for the purpose of resale, despite
11		first being used, to the extent to which it is resold as an
12		ingredient of an intentionally produced product or by-product
13		of manufacturing. "Use" does not mean the demonstration use or
14		interim use of tangible personal property by a retailer before
15		he sells that tangible personal property. On and after January
16		1, 2025, the lease of tangible personal property to a lessee by
17		a retailer who is subject to tax on lease receipts under this
18		amendatory Act of the 103rd General Assembly does not qualify
19		as demonstration use or interim use of that property. For
20		watercraft or aircraft, if the period of demonstration use or
21		interim use by the retailer exceeds 18 months, the retailer
22		shall pay on the retailers' original cost price the tax
23		imposed by this Act, and no credit for that tax is permitted if
24		the watercraft or aircraft is subsequently sold by the
25		retailer. "Use" does not mean the physical incorporation of
26		tangible personal property, to the extent not first subjected

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1		to a use for which it was purchased, as an ingredient or
2		constituent, into other tangible personal property (a) which
3		is sold in the regular course of business or (b) which the
4		person incorporating such ingredient or constituent therein
5		has undertaken at the time of such purchase to cause to be
6		transported in interstate commerce to destinations outside the
7		State of Illinois: Provided that the property purchased is
8		deemed to be purchased for the purpose of resale, despite
9		first being used, to the extent to which it is resold as an
10		ingredient of an intentionally produced product or by-product
11		of manufacturing.
12		"Lease" means a transfer of the possession or control of,
13		the right to possess or control, or a license to use, but not
14		title to, tangible personal property for a fixed or
15		indeterminate term for consideration, regardless of the name
16		by which the transaction is called. "Lease" does not include a
17		lease entered into merely as a security agreement that does
18		not involve a transfer of possession or control from the
19		lessor to the lessee.
20		On and after January 1, 2025, the term "sale", when used in
21		this Act, includes a lease.
22		"Watercraft" means a Class 2, Class 3, or Class 4
23		watercraft as defined in Section 3-2 of the Boat Registration
24		and Safety Act, a personal watercraft, or any boat equipped
25		with an inboard motor.
26		"Purchase at retail" means the acquisition of the

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1		ownership of, the or title to, the possession or control of,
2		the right to possess or control, or a license to use, tangible
3		personal property through a sale at retail.
4		"Purchaser" means anyone who, through a sale at retail,
5		acquires the ownership of, the title to, the possession or
6		control of, the right to possess or control, or a license to
7		use, tangible personal property for a valuable consideration.
8		"Sale at retail" means any transfer of the ownership of or
9		title to tangible personal property to a purchaser, for the
10		purpose of use, and not for the purpose of resale in any form
11		as tangible personal property to the extent not first
12		subjected to a use for which it was purchased, for a valuable
13		consideration: Provided that the property purchased is deemed
14		to be purchased for the purpose of resale, despite first being
15		used, to the extent to which it is resold as an ingredient of
16		an intentionally produced product or by-product of
17		manufacturing. For this purpose, slag produced as an incident
18		to manufacturing pig iron or steel and sold is considered to be
19		an intentionally produced by-product of manufacturing. "Sale
20		at retail" includes any such transfer made for resale unless
21		made in compliance with Section 2c of the Retailers'
22		Occupation Tax Act, as incorporated by reference into Section
23		12 of this Act. Transactions whereby the possession of the
24		property is transferred but the seller retains the title as
25		security for payment of the selling price are sales.
26		"Sale at retail" shall also be construed to include any

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1		Illinois florist's sales transaction in which the purchase
2		order is received in Illinois by a florist and the sale is for
3		use or consumption, but the Illinois florist has a florist in
4		another state deliver the property to the purchaser or the
5		purchaser's donee in such other state.
6		Nonreusable tangible personal property that is used by
7		persons engaged in the business of operating a restaurant,
8		cafeteria, or drive-in is a sale for resale when it is
9		transferred to customers in the ordinary course of business as
10		part of the sale of food or beverages and is used to deliver,
11		package, or consume food or beverages, regardless of where
12		consumption of the food or beverages occurs. Examples of those
13		items include, but are not limited to nonreusable, paper and
14		plastic cups, plates, baskets, boxes, sleeves, buckets or
15		other containers, utensils, straws, placemats, napkins, doggie
16		bags, and wrapping or packaging materials that are transferred
17		to customers as part of the sale of food or beverages in the
18		ordinary course of business.
19		The purchase, employment and transfer of such tangible
20		personal property as newsprint and ink for the primary purpose
21		of conveying news (with or without other information) is not a
22		purchase, use or sale of tangible personal property.
23		"Selling price" means the consideration for a sale valued
24		in money whether received in money or otherwise, including
25		cash, credits, property other than as hereinafter provided,
26		and services, but, prior to January 1, 2020 and beginning

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1		again on January 1, 2022, not including the value of or credit
2		given for traded-in tangible personal property where the item
3		that is traded-in is of like kind and character as that which
4		is being sold; beginning January 1, 2020 and until January 1,
5		2022, "selling price" includes the portion of the value of or
6		credit given for traded-in motor vehicles of the First
7		Division as defined in Section 1-146 of the Illinois Vehicle
8		Code of like kind and character as that which is being sold
9		that exceeds $10,000. "Selling price" shall be determined
10		without any deduction on account of the cost of the property
11		sold, the cost of materials used, labor or service cost or any
12		other expense whatsoever, but does not include interest or
13		finance charges which appear as separate items on the bill of
14		sale or sales contract nor charges that are added to prices by
15		sellers on account of the seller's tax liability under the
16		Retailers' Occupation Tax Act, or on account of the seller's
17		duty to collect, from the purchaser, the tax that is imposed by
18		this Act, or, except as otherwise provided with respect to any
19		cigarette tax imposed by a home rule unit, on account of the
20		seller's tax liability under any local occupation tax
21		administered by the Department, or, except as otherwise
22		provided with respect to any cigarette tax imposed by a home
23		rule unit on account of the seller's duty to collect, from the
24		purchasers, the tax that is imposed under any local use tax
25		administered by the Department. Effective December 1, 1985,
26		"selling price" shall include charges that are added to prices

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1		by sellers on account of the seller's tax liability under the
2		Cigarette Tax Act, on account of the seller's duty to collect,
3		from the purchaser, the tax imposed under the Cigarette Use
4		Tax Act, and on account of the seller's duty to collect, from
5		the purchaser, any cigarette tax imposed by a home rule unit.
6		The provisions of this paragraph, which provides only for
7		an alternative meaning of "selling price" with respect to the
8		sale of certain motor vehicles incident to the contemporaneous
9		lease of those motor vehicles, continue in effect and are not
10		changed by the tax on leases implemented by this amendatory
11		Act of the 103rd General Assembly. Notwithstanding any law to
12		the contrary, for any motor vehicle, as defined in Section
13		1-146 of the Vehicle Code, that is sold on or after January 1,
14		2015 for the purpose of leasing the vehicle for a defined
15		period that is longer than one year and (1) is a motor vehicle
16		of the second division that: (A) is a self-contained motor
17		vehicle designed or permanently converted to provide living
18		quarters for recreational, camping, or travel use, with direct
19		walk through access to the living quarters from the driver's
20		seat; (B) is of the van configuration designed for the
21		transportation of not less than 7 nor more than 16 passengers;
22		or (C) has a gross vehicle weight rating of 8,000 pounds or
23		less or (2) is a motor vehicle of the first division, "selling
24		price" or "amount of sale" means the consideration received by
25		the lessor pursuant to the lease contract, including amounts
26		due at lease signing and all monthly or other regular payments

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1		charged over the term of the lease. Also included in the
2		selling price is any amount received by the lessor from the
3		lessee for the leased vehicle that is not calculated at the
4		time the lease is executed, including, but not limited to,
5		excess mileage charges and charges for excess wear and tear.
6		For sales that occur in Illinois, with respect to any amount
7		received by the lessor from the lessee for the leased vehicle
8		that is not calculated at the time the lease is executed, the
9		lessor who purchased the motor vehicle does not incur the tax
10		imposed by the Use Tax Act on those amounts, and the retailer
11		who makes the retail sale of the motor vehicle to the lessor is
12		not required to collect the tax imposed by this Act or to pay
13		the tax imposed by the Retailers' Occupation Tax Act on those
14		amounts. However, the lessor who purchased the motor vehicle
15		assumes the liability for reporting and paying the tax on
16		those amounts directly to the Department in the same form
17		(Illinois Retailers' Occupation Tax, and local retailers'
18		occupation taxes, if applicable) in which the retailer would
19		have reported and paid such tax if the retailer had accounted
20		for the tax to the Department. For amounts received by the
21		lessor from the lessee that are not calculated at the time the
22		lease is executed, the lessor must file the return and pay the
23		tax to the Department by the due date otherwise required by
24		this Act for returns other than transaction returns. If the
25		retailer is entitled under this Act to a discount for
26		collecting and remitting the tax imposed under this Act to the

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1		Department with respect to the sale of the motor vehicle to the
2		lessor, then the right to the discount provided in this Act
3		shall be transferred to the lessor with respect to the tax paid
4		by the lessor for any amount received by the lessor from the
5		lessee for the leased vehicle that is not calculated at the
6		time the lease is executed; provided that the discount is only
7		allowed if the return is timely filed and for amounts timely
8		paid. The "selling price" of a motor vehicle that is sold on or
9		after January 1, 2015 for the purpose of leasing for a defined
10		period of longer than one year shall not be reduced by the
11		value of or credit given for traded-in tangible personal
12		property owned by the lessor, nor shall it be reduced by the
13		value of or credit given for traded-in tangible personal
14		property owned by the lessee, regardless of whether the
15		trade-in value thereof is assigned by the lessee to the
16		lessor. In the case of a motor vehicle that is sold for the
17		purpose of leasing for a defined period of longer than one
18		year, the sale occurs at the time of the delivery of the
19		vehicle, regardless of the due date of any lease payments. A
20		lessor who incurs a Retailers' Occupation Tax liability on the
21		sale of a motor vehicle coming off lease may not take a credit
22		against that liability for the Use Tax the lessor paid upon the
23		purchase of the motor vehicle (or for any tax the lessor paid
24		with respect to any amount received by the lessor from the
25		lessee for the leased vehicle that was not calculated at the
26		time the lease was executed) if the selling price of the motor

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1		vehicle at the time of purchase was calculated using the
2		definition of "selling price" as defined in this paragraph.
3		Notwithstanding any other provision of this Act to the
4		contrary, lessors shall file all returns and make all payments
5		required under this paragraph to the Department by electronic
6		means in the manner and form as required by the Department.
7		This paragraph does not apply to leases of motor vehicles for
8		which, at the time the lease is entered into, the term of the
9		lease is not a defined period, including leases with a defined
10		initial period with the option to continue the lease on a
11		month-to-month or other basis beyond the initial defined
12		period.
13		The phrase "like kind and character" shall be liberally
14		construed (including but not limited to any form of motor
15		vehicle for any form of motor vehicle, or any kind of farm or
16		agricultural implement for any other kind of farm or
17		agricultural implement), while not including a kind of item
18		which, if sold at retail by that retailer, would be exempt from
19		retailers' occupation tax and use tax as an isolated or
20		occasional sale.
21		"Department" means the Department of Revenue.
22		"Person" means any natural individual, firm, partnership,
23		association, joint stock company, joint adventure, public or
24		private corporation, limited liability company, or a receiver,
25		executor, trustee, guardian or other representative appointed
26		by order of any court.

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1		"Retailer" means and includes every person engaged in the
2		business of making sales, including, on and after January 1,
3		2025, leases, at retail as defined in this Section. With
4		respect to leases, a "retailer" also means a "lessor", except
5		as otherwise provided in this Act.
6		A person who holds himself or herself out as being engaged
7		(or who habitually engages) in selling tangible personal
8		property at retail is a retailer hereunder with respect to
9		such sales (and not primarily in a service occupation)
10		notwithstanding the fact that such person designs and produces
11		such tangible personal property on special order for the
12		purchaser and in such a way as to render the property of value
13		only to such purchaser, if such tangible personal property so
14		produced on special order serves substantially the same
15		function as stock or standard items of tangible personal
16		property that are sold at retail.
17		A person whose activities are organized and conducted
18		primarily as a not-for-profit service enterprise, and who
19		engages in selling tangible personal property at retail
20		(whether to the public or merely to members and their guests)
21		is a retailer with respect to such transactions, excepting
22		only a person organized and operated exclusively for
23		charitable, religious or educational purposes either (1), to
24		the extent of sales by such person to its members, students,
25		patients or inmates of tangible personal property to be used
26		primarily for the purposes of such person, or (2), to the

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1		extent of sales by such person of tangible personal property
2		which is not sold or offered for sale by persons organized for
3		profit. The selling of school books and school supplies by
4		schools at retail to students is not "primarily for the
5		purposes of" the school which does such selling. This
6		paragraph does not apply to nor subject to taxation occasional
7		dinners, social or similar activities of a person organized
8		and operated exclusively for charitable, religious or
9		educational purposes, whether or not such activities are open
10		to the public.
11		A person who is the recipient of a grant or contract under
12		Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
13		serves meals to participants in the federal Nutrition Program
14		for the Elderly in return for contributions established in
15		amount by the individual participant pursuant to a schedule of
16		suggested fees as provided for in the federal Act is not a
17		retailer under this Act with respect to such transactions.
18		Persons who engage in the business of transferring
19		tangible personal property upon the redemption of trading
20		stamps are retailers hereunder when engaged in such business.
21		The isolated or occasional sale of tangible personal
22		property at retail by a person who does not hold himself out as
23		being engaged (or who does not habitually engage) in selling
24		such tangible personal property at retail or a sale through a
25		bulk vending machine does not make such person a retailer
26		hereunder. However, any person who is engaged in a business

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1		which is not subject to the tax imposed by the Retailers'
2		Occupation Tax Act because of involving the sale of or a
3		contract to sell real estate or a construction contract to
4		improve real estate, but who, in the course of conducting such
5		business, transfers tangible personal property to users or
6		consumers in the finished form in which it was purchased, and
7		which does not become real estate, under any provision of a
8		construction contract or real estate sale or real estate sales
9		agreement entered into with some other person arising out of
10		or because of such nontaxable business, is a retailer to the
11		extent of the value of the tangible personal property so
12		transferred. If, in such transaction, a separate charge is
13		made for the tangible personal property so transferred, the
14		value of such property, for the purposes of this Act, is the
15		amount so separately charged, but not less than the cost of
16		such property to the transferor; if no separate charge is
17		made, the value of such property, for the purposes of this Act,
18		is the cost to the transferor of such tangible personal
19		property.
20		"Retailer maintaining a place of business in this State",
21		or any like term, means and includes any of the following
22		retailers:
23		(1) A retailer having or maintaining within this
24		State, directly or by a subsidiary, an office,
25		distribution house, sales house, warehouse or other place
26		of business, or any agent or other representative

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1		operating within this State under the authority of the
2		retailer or its subsidiary, irrespective of whether such
3		place of business or agent or other representative is
4		located here permanently or temporarily, or whether such
5		retailer or subsidiary is licensed to do business in this
6		State. However, the ownership of property that is located
7		at the premises of a printer with which the retailer has
8		contracted for printing and that consists of the final
9		printed product, property that becomes a part of the final
10		printed product, or copy from which the printed product is
11		produced shall not result in the retailer being deemed to
12		have or maintain an office, distribution house, sales
13		house, warehouse, or other place of business within this
14		State.
15		(1.1) A retailer having a contract with a person
16		located in this State under which the person, for a
17		commission or other consideration based upon the sale of
18		tangible personal property by the retailer, directly or
19		indirectly refers potential customers to the retailer by
20		providing to the potential customers a promotional code or
21		other mechanism that allows the retailer to track
22		purchases referred by such persons. Examples of mechanisms
23		that allow the retailer to track purchases referred by
24		such persons include but are not limited to the use of a
25		link on the person's Internet website, promotional codes
26		distributed through the person's hand-delivered or mailed

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1		material, and promotional codes distributed by the person
2		through radio or other broadcast media. The provisions of
3		this paragraph (1.1) shall apply only if the cumulative
4		gross receipts from sales of tangible personal property by
5		the retailer to customers who are referred to the retailer
6		by all persons in this State under such contracts exceed
7		$10,000 during the preceding 4 quarterly periods ending on
8		the last day of March, June, September, and December. A
9		retailer meeting the requirements of this paragraph (1.1)
10		shall be presumed to be maintaining a place of business in
11		this State but may rebut this presumption by submitting
12		proof that the referrals or other activities pursued
13		within this State by such persons were not sufficient to
14		meet the nexus standards of the United States Constitution
15		during the preceding 4 quarterly periods.
16		(1.2) Beginning July 1, 2011, a retailer having a
17		contract with a person located in this State under which:
18		(A) the retailer sells the same or substantially
19		similar line of products as the person located in this
20		State and does so using an identical or substantially
21		similar name, trade name, or trademark as the person
22		located in this State; and
23		(B) the retailer provides a commission or other
24		consideration to the person located in this State
25		based upon the sale of tangible personal property by
26		the retailer.

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1		The provisions of this paragraph (1.2) shall apply
2		only if the cumulative gross receipts from sales of
3		tangible personal property by the retailer to customers in
4		this State under all such contracts exceed $10,000 during
5		the preceding 4 quarterly periods ending on the last day
6		of March, June, September, and December.
7		(2) (Blank).
8		(3) (Blank).
9		(4) (Blank).
10		(5) (Blank).
11		(6) (Blank).
12		(7) (Blank).
13		(8) (Blank).
14		(9) Beginning October 1, 2018, a retailer making sales
15		of tangible personal property to purchasers in Illinois
16		from outside of Illinois if:
17		(A) the cumulative gross receipts from sales of
18		tangible personal property to purchasers in Illinois
19		are $100,000 or more; or
20		(B) the retailer enters into 200 or more separate
21		transactions for the sale of tangible personal
22		property to purchasers in Illinois.
23		The retailer shall determine on a quarterly basis,
24		ending on the last day of March, June, September, and
25		December, whether he or she meets the criteria of either
26		subparagraph (A) or (B) of this paragraph (9) for the

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1		preceding 12-month period. If the retailer meets the
2		threshold of either subparagraph (A) or (B) for a 12-month
3		period, he or she is considered a retailer maintaining a
4		place of business in this State and is required to collect
5		and remit the tax imposed under this Act and file returns
6		for one year. At the end of that one-year period, the
7		retailer shall determine whether he or she met the
8		threshold of either subparagraph (A) or (B) during the
9		preceding 12-month period. If the retailer met the
10		criteria in either subparagraph (A) or (B) for the
11		preceding 12-month period, he or she is considered a
12		retailer maintaining a place of business in this State and
13		is required to collect and remit the tax imposed under
14		this Act and file returns for the subsequent year. If at
15		the end of a one-year period a retailer that was required
16		to collect and remit the tax imposed under this Act
17		determines that he or she did not meet the threshold in
18		either subparagraph (A) or (B) during the preceding
19		12-month period, the retailer shall subsequently determine
20		on a quarterly basis, ending on the last day of March,
21		June, September, and December, whether he or she meets the
22		threshold of either subparagraph (A) or (B) for the
23		preceding 12-month period.
24		Beginning January 1, 2020, neither the gross receipts
25		from nor the number of separate transactions for sales of
26		tangible personal property to purchasers in Illinois that

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1		a retailer makes through a marketplace facilitator and for
2		which the retailer has received a certification from the
3		marketplace facilitator pursuant to Section 2d of this Act
4		shall be included for purposes of determining whether he
5		or she has met the thresholds of this paragraph (9).
6		(10) Beginning January 1, 2020, a marketplace
7		facilitator that meets a threshold set forth in subsection
8		(b) of Section 2d of this Act.
9		"Bulk vending machine" means a vending machine, containing
10		unsorted confections, nuts, toys, or other items designed
11		primarily to be used or played with by children which, when a
12		coin or coins of a denomination not larger than $0.50 are
13		inserted, are dispensed in equal portions, at random and
14		without selection by the customer.
15		(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 1-1-20;
16		101-604, eff. 1-1-20; 102-353, eff. 1-1-22.)
17		(35 ILCS 105/3) (from Ch. 120, par. 439.3)
18		Sec. 3. Tax imposed. A tax is imposed upon the privilege of
19		using in this State tangible personal property purchased,
20		which, on and after January 1, 2025, includes leased, at
21		retail from a retailer, including computer software, and
22		including photographs, negatives, and positives that are the
23		product of photoprocessing, but not including products of
24		photoprocessing produced for use in motion pictures for
25		commercial exhibition. Beginning January 1, 2001, prepaid

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1		telephone calling arrangements shall be considered tangible
2		personal property subject to the tax imposed under this Act
3		regardless of the form in which those arrangements may be
4		embodied, transmitted, or fixed by any method now known or
5		hereafter developed. Purchases of (1) electricity delivered to
6		customers by wire; (2) natural or artificial gas that is
7		delivered to customers through pipes, pipelines, or mains; and
8		(3) water that is delivered to customers through pipes,
9		pipelines, or mains are not subject to tax under this Act. The
10		provisions of this amendatory Act of the 98th General Assembly
11		are declaratory of existing law as to the meaning and scope of
12		this Act.
13		The imposition of the tax under this Act on the privilege
14		of using tangible personal property leased at retail applies
15		to leases of tangible personal property in effect, entered
16		into, or renewed on or after January 1, 2025. In the case of
17		leases, except as otherwise provided in this Act, the lessor,
18		in collecting the tax, may collect for each tax return period,
19		only the tax applicable to that part of the selling price
20		actually received during such tax return period.
21		The inclusion of leases in the tax imposed under this Act
22		by this amendatory Act of the 103rd General Assembly does not,
23		however, extend to motor vehicles, watercraft, aircraft, and
24		semitrailers, as defined in Section 1-187 of the Illinois
25		Vehicle Code, that are required to be registered with an
26		agency of this State. The taxation of these items shall

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1		continue in effect as prior to the effective date of the
2		changes made to this Section by this amendatory Act of the
3		103rd General Assembly (i.e. dealers owe retailers' occupation
4		tax, lessors owe use tax, and lessees are not subject to
5		retailers' occupation or use tax).
6		(Source: P.A. 98-583, eff. 1-1-14.)
7		(35 ILCS 105/3-5)
8		Sec. 3-5. Exemptions. Use, which, on and after January 1,
9		2025, includes use by a lessee, of the following tangible
10		personal property is exempt from the tax imposed by this Act:
11		(1) Personal property purchased from a corporation,
12		society, association, foundation, institution, or
13		organization, other than a limited liability company, that is
14		organized and operated as a not-for-profit service enterprise
15		for the benefit of persons 65 years of age or older if the
16		personal property was not purchased by the enterprise for the
17		purpose of resale by the enterprise.
18		(2) Personal property purchased by a not-for-profit
19		Illinois county fair association for use in conducting,
20		operating, or promoting the county fair.
21		(3) Personal property purchased by a not-for-profit arts
22		or cultural organization that establishes, by proof required
23		by the Department by rule, that it has received an exemption
24		under Section 501(c)(3) of the Internal Revenue Code and that
25		is organized and operated primarily for the presentation or

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1		support of arts or cultural programming, activities, or
2		services. These organizations include, but are not limited to,
3		music and dramatic arts organizations such as symphony
4		orchestras and theatrical groups, arts and cultural service
5		organizations, local arts councils, visual arts organizations,
6		and media arts organizations. On and after July 1, 2001 (the
7		effective date of Public Act 92-35), however, an entity
8		otherwise eligible for this exemption shall not make tax-free
9		purchases unless it has an active identification number issued
10		by the Department.
11		(4) Except as otherwise provided in this Act, personal
12		property purchased by a governmental body, by a corporation,
13		society, association, foundation, or institution organized and
14		operated exclusively for charitable, religious, or educational
15		purposes, or by a not-for-profit corporation, society,
16		association, foundation, institution, or organization that has
17		no compensated officers or employees and that is organized and
18		operated primarily for the recreation of persons 55 years of
19		age or older. A limited liability company may qualify for the
20		exemption under this paragraph only if the limited liability
21		company is organized and operated exclusively for educational
22		purposes. On and after July 1, 1987, however, no entity
23		otherwise eligible for this exemption shall make tax-free
24		purchases unless it has an active exemption identification
25		number issued by the Department.
26		(5) Until July 1, 2003, a passenger car that is a

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1		replacement vehicle to the extent that the purchase price of
2		the car is subject to the Replacement Vehicle Tax.
3		(6) Until July 1, 2003 and beginning again on September 1,
4		2004 through August 30, 2014, graphic arts machinery and
5		equipment, including repair and replacement parts, both new
6		and used, and including that manufactured on special order,
7		certified by the purchaser to be used primarily for graphic
8		arts production, and including machinery and equipment
9		purchased for lease. Equipment includes chemicals or chemicals
10		acting as catalysts but only if the chemicals or chemicals
11		acting as catalysts effect a direct and immediate change upon
12		a graphic arts product. Beginning on July 1, 2017, graphic
13		arts machinery and equipment is included in the manufacturing
14		and assembling machinery and equipment exemption under
15		paragraph (18).
16		(7) Farm chemicals.
17		(8) Legal tender, currency, medallions, or gold or silver
18		coinage issued by the State of Illinois, the government of the
19		United States of America, or the government of any foreign
20		country, and bullion.
21		(9) Personal property purchased from a teacher-sponsored
22		student organization affiliated with an elementary or
23		secondary school located in Illinois.
24		(10) A motor vehicle that is used for automobile renting,
25		as defined in the Automobile Renting Occupation and Use Tax
26		Act.

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1		(11) Farm machinery and equipment, both new and used,
2		including that manufactured on special order, certified by the
3		purchaser to be used primarily for production agriculture or
4		State or federal agricultural programs, including individual
5		replacement parts for the machinery and equipment, including
6		machinery and equipment purchased for lease, and including
7		implements of husbandry defined in Section 1-130 of the
8		Illinois Vehicle Code, farm machinery and agricultural
9		chemical and fertilizer spreaders, and nurse wagons required
10		to be registered under Section 3-809 of the Illinois Vehicle
11		Code, but excluding other motor vehicles required to be
12		registered under the Illinois Vehicle Code. Horticultural
13		polyhouses or hoop houses used for propagating, growing, or
14		overwintering plants shall be considered farm machinery and
15		equipment under this item (11). Agricultural chemical tender
16		tanks and dry boxes shall include units sold separately from a
17		motor vehicle required to be licensed and units sold mounted
18		on a motor vehicle required to be licensed if the selling price
19		of the tender is separately stated.
20		Farm machinery and equipment shall include precision
21		farming equipment that is installed or purchased to be
22		installed on farm machinery and equipment, including, but not
23		limited to, tractors, harvesters, sprayers, planters, seeders,
24		or spreaders. Precision farming equipment includes, but is not
25		limited to, soil testing sensors, computers, monitors,
26		software, global positioning and mapping systems, and other

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1		such equipment.
2		Farm machinery and equipment also includes computers,
3		sensors, software, and related equipment used primarily in the
4		computer-assisted operation of production agriculture
5		facilities, equipment, and activities such as, but not limited
6		to, the collection, monitoring, and correlation of animal and
7		crop data for the purpose of formulating animal diets and
8		agricultural chemicals.
9		Beginning on January 1, 2024, farm machinery and equipment
10		also includes electrical power generation equipment used
11		primarily for production agriculture.
12		This item (11) is exempt from the provisions of Section
13		3-90.
14		(12) Until June 30, 2013, fuel and petroleum products sold
15		to or used by an air common carrier, certified by the carrier
16		to be used for consumption, shipment, or storage in the
17		conduct of its business as an air common carrier, for a flight
18		destined for or returning from a location or locations outside
19		the United States without regard to previous or subsequent
20		domestic stopovers.
21		Beginning July 1, 2013, fuel and petroleum products sold
22		to or used by an air carrier, certified by the carrier to be
23		used for consumption, shipment, or storage in the conduct of
24		its business as an air common carrier, for a flight that (i) is
25		engaged in foreign trade or is engaged in trade between the
26		United States and any of its possessions and (ii) transports

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1		at least one individual or package for hire from the city of
2		origination to the city of final destination on the same
3		aircraft, without regard to a change in the flight number of
4		that aircraft.
5		(13) Proceeds of mandatory service charges separately
6		stated on customers' bills for the purchase and consumption of
7		food and beverages purchased at retail from a retailer, to the
8		extent that the proceeds of the service charge are in fact
9		turned over as tips or as a substitute for tips to the
10		employees who participate directly in preparing, serving,
11		hosting or cleaning up the food or beverage function with
12		respect to which the service charge is imposed.
13		(14) Until July 1, 2003, oil field exploration, drilling,
14		and production equipment, including (i) rigs and parts of
15		rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
16		pipe and tubular goods, including casing and drill strings,
17		(iii) pumps and pump-jack units, (iv) storage tanks and flow
18		lines, (v) any individual replacement part for oil field
19		exploration, drilling, and production equipment, and (vi)
20		machinery and equipment purchased for lease; but excluding
21		motor vehicles required to be registered under the Illinois
22		Vehicle Code.
23		(15) Photoprocessing machinery and equipment, including
24		repair and replacement parts, both new and used, including
25		that manufactured on special order, certified by the purchaser
26		to be used primarily for photoprocessing, and including

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1		photoprocessing machinery and equipment purchased for lease.
2		(16) Until July 1, 2028, coal and aggregate exploration,
3		mining, off-highway hauling, processing, maintenance, and
4		reclamation equipment, including replacement parts and
5		equipment, and including equipment purchased for lease, but
6		excluding motor vehicles required to be registered under the
7		Illinois Vehicle Code. The changes made to this Section by
8		Public Act 97-767 apply on and after July 1, 2003, but no claim
9		for credit or refund is allowed on or after August 16, 2013
10		(the effective date of Public Act 98-456) for such taxes paid
11		during the period beginning July 1, 2003 and ending on August
12		16, 2013 (the effective date of Public Act 98-456).
13		(17) Until July 1, 2003, distillation machinery and
14		equipment, sold as a unit or kit, assembled or installed by the
15		retailer, certified by the user to be used only for the
16		production of ethyl alcohol that will be used for consumption
17		as motor fuel or as a component of motor fuel for the personal
18		use of the user, and not subject to sale or resale.
19		(18) Manufacturing and assembling machinery and equipment
20		used primarily in the process of manufacturing or assembling
21		tangible personal property for wholesale or retail sale or
22		lease, whether that sale or lease is made directly by the
23		manufacturer or by some other person, whether the materials
24		used in the process are owned by the manufacturer or some other
25		person, or whether that sale or lease is made apart from or as
26		an incident to the seller's engaging in the service occupation

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1		of producing machines, tools, dies, jigs, patterns, gauges, or
2		other similar items of no commercial value on special order
3		for a particular purchaser. The exemption provided by this
4		paragraph (18) includes production related tangible personal
5		property, as defined in Section 3-50, purchased on or after
6		July 1, 2019. The exemption provided by this paragraph (18)
7		does not include machinery and equipment used in (i) the
8		generation of electricity for wholesale or retail sale; (ii)
9		the generation or treatment of natural or artificial gas for
10		wholesale or retail sale that is delivered to customers
11		through pipes, pipelines, or mains; or (iii) the treatment of
12		water for wholesale or retail sale that is delivered to
13		customers through pipes, pipelines, or mains. The provisions
14		of Public Act 98-583 are declaratory of existing law as to the
15		meaning and scope of this exemption. Beginning on July 1,
16		2017, the exemption provided by this paragraph (18) includes,
17		but is not limited to, graphic arts machinery and equipment,
18		as defined in paragraph (6) of this Section.
19		(19) Personal property delivered to a purchaser or
20		purchaser's donee inside Illinois when the purchase order for
21		that personal property was received by a florist located
22		outside Illinois who has a florist located inside Illinois
23		deliver the personal property.
24		(20) Semen used for artificial insemination of livestock
25		for direct agricultural production.
26		(21) Horses, or interests in horses, registered with and

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1		meeting the requirements of any of the Arabian Horse Club
2		Registry of America, Appaloosa Horse Club, American Quarter
3		Horse Association, United States Trotting Association, or
4		Jockey Club, as appropriate, used for purposes of breeding or
5		racing for prizes. This item (21) is exempt from the
6		provisions of Section 3-90, and the exemption provided for
7		under this item (21) applies for all periods beginning May 30,
8		1995, but no claim for credit or refund is allowed on or after
9		January 1, 2008 for such taxes paid during the period
10		beginning May 30, 2000 and ending on January 1, 2008.
11		(22) Computers and communications equipment utilized for
12		any hospital purpose and equipment used in the diagnosis,
13		analysis, or treatment of hospital patients purchased by a
14		lessor who leases the equipment, under a lease of one year or
15		longer executed or in effect at the time the lessor would
16		otherwise be subject to the tax imposed by this Act, to a
17		hospital that has been issued an active tax exemption
18		identification number by the Department under Section 1g of
19		the Retailers' Occupation Tax Act. If the equipment is leased
20		in a manner that does not qualify for this exemption or is used
21		in any other non-exempt manner, the lessor shall be liable for
22		the tax imposed under this Act or the Service Use Tax Act, as
23		the case may be, based on the fair market value of the property
24		at the time the non-qualifying use occurs. No lessor shall
25		collect or attempt to collect an amount (however designated)
26		that purports to reimburse that lessor for the tax imposed by

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1		this Act or the Service Use Tax Act, as the case may be, if the
2		tax has not been paid by the lessor. If a lessor improperly
3		collects any such amount from the lessee, the lessee shall
4		have a legal right to claim a refund of that amount from the
5		lessor. If, however, that amount is not refunded to the lessee
6		for any reason, the lessor is liable to pay that amount to the
7		Department.
8		(23) Personal property purchased by a lessor who leases
9		the property, under a lease of one year or longer executed or
10		in effect at the time the lessor would otherwise be subject to
11		the tax imposed by this Act, to a governmental body that has
12		been issued an active sales tax exemption identification
13		number by the Department under Section 1g of the Retailers'
14		Occupation Tax Act. If the property is leased in a manner that
15		does not qualify for this exemption or used in any other
16		non-exempt manner, the lessor shall be liable for the tax
17		imposed under this Act or the Service Use Tax Act, as the case
18		may be, based on the fair market value of the property at the
19		time the non-qualifying use occurs. No lessor shall collect or
20		attempt to collect an amount (however designated) that
21		purports to reimburse that lessor for the tax imposed by this
22		Act or the Service Use Tax Act, as the case may be, if the tax
23		has not been paid by the lessor. If a lessor improperly
24		collects any such amount from the lessee, the lessee shall
25		have a legal right to claim a refund of that amount from the
26		lessor. If, however, that amount is not refunded to the lessee

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1		for any reason, the lessor is liable to pay that amount to the
2		Department.
3		(24) Beginning with taxable years ending on or after
4		December 31, 1995 and ending with taxable years ending on or
5		before December 31, 2004, personal property that is donated
6		for disaster relief to be used in a State or federally declared
7		disaster area in Illinois or bordering Illinois by a
8		manufacturer or retailer that is registered in this State to a
9		corporation, society, association, foundation, or institution
10		that has been issued a sales tax exemption identification
11		number by the Department that assists victims of the disaster
12		who reside within the declared disaster area.
13		(25) Beginning with taxable years ending on or after
14		December 31, 1995 and ending with taxable years ending on or
15		before December 31, 2004, personal property that is used in
16		the performance of infrastructure repairs in this State,
17		including, but not limited to, municipal roads and streets,
18		access roads, bridges, sidewalks, waste disposal systems,
19		water and sewer line extensions, water distribution and
20		purification facilities, storm water drainage and retention
21		facilities, and sewage treatment facilities, resulting from a
22		State or federally declared disaster in Illinois or bordering
23		Illinois when such repairs are initiated on facilities located
24		in the declared disaster area within 6 months after the
25		disaster.
26		(26) Beginning July 1, 1999, game or game birds purchased

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1		at a "game breeding and hunting preserve area" as that term is
2		used in the Wildlife Code. This paragraph is exempt from the
3		provisions of Section 3-90.
4		(27) A motor vehicle, as that term is defined in Section
5		1-146 of the Illinois Vehicle Code, that is donated to a
6		corporation, limited liability company, society, association,
7		foundation, or institution that is determined by the
8		Department to be organized and operated exclusively for
9		educational purposes. For purposes of this exemption, "a
10		corporation, limited liability company, society, association,
11		foundation, or institution organized and operated exclusively
12		for educational purposes" means all tax-supported public
13		schools, private schools that offer systematic instruction in
14		useful branches of learning by methods common to public
15		schools and that compare favorably in their scope and
16		intensity with the course of study presented in tax-supported
17		schools, and vocational or technical schools or institutes
18		organized and operated exclusively to provide a course of
19		study of not less than 6 weeks duration and designed to prepare
20		individuals to follow a trade or to pursue a manual,
21		technical, mechanical, industrial, business, or commercial
22		occupation.
23		(28) Beginning January 1, 2000, personal property,
24		including food, purchased through fundraising events for the
25		benefit of a public or private elementary or secondary school,
26		a group of those schools, or one or more school districts if

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1		the events are sponsored by an entity recognized by the school
2		district that consists primarily of volunteers and includes
3		parents and teachers of the school children. This paragraph
4		does not apply to fundraising events (i) for the benefit of
5		private home instruction or (ii) for which the fundraising
6		entity purchases the personal property sold at the events from
7		another individual or entity that sold the property for the
8		purpose of resale by the fundraising entity and that profits
9		from the sale to the fundraising entity. This paragraph is
10		exempt from the provisions of Section 3-90.
11		(29) Beginning January 1, 2000 and through December 31,
12		2001, new or used automatic vending machines that prepare and
13		serve hot food and beverages, including coffee, soup, and
14		other items, and replacement parts for these machines.
15		Beginning January 1, 2002 and through June 30, 2003, machines
16		and parts for machines used in commercial, coin-operated
17		amusement and vending business if a use or occupation tax is
18		paid on the gross receipts derived from the use of the
19		commercial, coin-operated amusement and vending machines. This
20		paragraph is exempt from the provisions of Section 3-90.
21		(30) Beginning January 1, 2001 and through June 30, 2016,
22		food for human consumption that is to be consumed off the
23		premises where it is sold (other than alcoholic beverages,
24		soft drinks, and food that has been prepared for immediate
25		consumption) and prescription and nonprescription medicines,
26		drugs, medical appliances, and insulin, urine testing

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1		materials, syringes, and needles used by diabetics, for human
2		use, when purchased for use by a person receiving medical
3		assistance under Article V of the Illinois Public Aid Code who
4		resides in a licensed long-term care facility, as defined in
5		the Nursing Home Care Act, or in a licensed facility as defined
6		in the ID/DD Community Care Act, the MC/DD Act, or the
7		Specialized Mental Health Rehabilitation Act of 2013.
8		(31) Beginning on August 2, 2001 (the effective date of
9		Public Act 92-227), computers and communications equipment
10		utilized for any hospital purpose and equipment used in the
11		diagnosis, analysis, or treatment of hospital patients
12		purchased by a lessor who leases the equipment, under a lease
13		of one year or longer executed or in effect at the time the
14		lessor would otherwise be subject to the tax imposed by this
15		Act, to a hospital that has been issued an active tax exemption
16		identification number by the Department under Section 1g of
17		the Retailers' Occupation Tax Act. If the equipment is leased
18		in a manner that does not qualify for this exemption or is used
19		in any other nonexempt manner, the lessor shall be liable for
20		the tax imposed under this Act or the Service Use Tax Act, as
21		the case may be, based on the fair market value of the property
22		at the time the nonqualifying use occurs. No lessor shall
23		collect or attempt to collect an amount (however designated)
24		that purports to reimburse that lessor for the tax imposed by
25		this Act or the Service Use Tax Act, as the case may be, if the
26		tax has not been paid by the lessor. If a lessor improperly

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1		collects any such amount from the lessee, the lessee shall
2		have a legal right to claim a refund of that amount from the
3		lessor. If, however, that amount is not refunded to the lessee
4		for any reason, the lessor is liable to pay that amount to the
5		Department. This paragraph is exempt from the provisions of
6		Section 3-90.
7		(32) Beginning on August 2, 2001 (the effective date of
8		Public Act 92-227), personal property purchased by a lessor
9		who leases the property, under a lease of one year or longer
10		executed or in effect at the time the lessor would otherwise be
11		subject to the tax imposed by this Act, to a governmental body
12		that has been issued an active sales tax exemption
13		identification number by the Department under Section 1g of
14		the Retailers' Occupation Tax Act. If the property is leased
15		in a manner that does not qualify for this exemption or used in
16		any other nonexempt manner, the lessor shall be liable for the
17		tax imposed under this Act or the Service Use Tax Act, as the
18		case may be, based on the fair market value of the property at
19		the time the nonqualifying use occurs. No lessor shall collect
20		or attempt to collect an amount (however designated) that
21		purports to reimburse that lessor for the tax imposed by this
22		Act or the Service Use Tax Act, as the case may be, if the tax
23		has not been paid by the lessor. If a lessor improperly
24		collects any such amount from the lessee, the lessee shall
25		have a legal right to claim a refund of that amount from the
26		lessor. If, however, that amount is not refunded to the lessee

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1		for any reason, the lessor is liable to pay that amount to the
2		Department. This paragraph is exempt from the provisions of
3		Section 3-90.
4		(33) On and after July 1, 2003 and through June 30, 2004,
5		the use in this State of motor vehicles of the second division
6		with a gross vehicle weight in excess of 8,000 pounds and that
7		are subject to the commercial distribution fee imposed under
8		Section 3-815.1 of the Illinois Vehicle Code. Beginning on
9		July 1, 2004 and through June 30, 2005, the use in this State
10		of motor vehicles of the second division: (i) with a gross
11		vehicle weight rating in excess of 8,000 pounds; (ii) that are
12		subject to the commercial distribution fee imposed under
13		Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
14		are primarily used for commercial purposes. Through June 30,
15		2005, this exemption applies to repair and replacement parts
16		added after the initial purchase of such a motor vehicle if
17		that 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, the term "used for
20		commercial purposes" means the transportation of persons or
21		property in furtherance of any commercial or industrial
22		enterprise, whether for-hire or not.
23		(34) Beginning January 1, 2008, tangible personal property
24		used in the construction or maintenance of a community water
25		supply, as defined under Section 3.145 of the Environmental
26		Protection Act, that is operated by a not-for-profit

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1		corporation that holds a valid water supply permit issued
2		under Title IV of the Environmental Protection Act. This
3		paragraph is exempt from the provisions of Section 3-90.
4		(35) Beginning January 1, 2010 and continuing through
5		December 31, 2029, materials, parts, equipment, components,
6		and furnishings incorporated into or upon an aircraft as part
7		of the modification, refurbishment, completion, replacement,
8		repair, or maintenance of the aircraft. This exemption
9		includes consumable supplies used in the modification,
10		refurbishment, completion, replacement, repair, and
11		maintenance of aircraft. However, until January 1, 2024, this
12		exemption excludes any materials, parts, equipment,
13		components, and consumable supplies used in the modification,
14		replacement, repair, and maintenance of aircraft engines or
15		power plants, whether such engines or power plants are
16		installed or uninstalled upon any such aircraft. "Consumable
17		supplies" include, but are not limited to, adhesive, tape,
18		sandpaper, general purpose lubricants, cleaning solution,
19		latex gloves, and protective films.
20		Beginning January 1, 2010 and continuing through December
21		31, 2023, this exemption applies only to the use of qualifying
22		tangible personal property by persons who modify, refurbish,
23		complete, repair, replace, or maintain aircraft and who (i)
24		hold an Air Agency Certificate and are empowered to operate an
25		approved repair station by the Federal Aviation
26		Administration, (ii) have a Class IV Rating, and (iii) conduct

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1		operations in accordance with Part 145 of the Federal Aviation
2		Regulations. From January 1, 2024 through December 31, 2029,
3		this exemption applies only to the use of qualifying tangible
4		personal property by: (A) persons who modify, refurbish,
5		complete, repair, replace, or maintain aircraft and who (i)
6		hold an Air Agency Certificate and are empowered to operate an
7		approved repair station by the Federal Aviation
8		Administration, (ii) have a Class IV Rating, and (iii) conduct
9		operations in accordance with Part 145 of the Federal Aviation
10		Regulations; and (B) persons who engage in the modification,
11		replacement, repair, and maintenance of aircraft engines or
12		power plants without regard to whether or not those persons
13		meet the qualifications of item (A).
14		The exemption does not include aircraft operated by a
15		commercial air carrier providing scheduled passenger air
16		service pursuant to authority issued under Part 121 or Part
17		129 of the Federal Aviation Regulations. The changes made to
18		this paragraph (35) by Public Act 98-534 are declarative of
19		existing law. It is the intent of the General Assembly that the
20		exemption under this paragraph (35) applies continuously from
21		January 1, 2010 through December 31, 2024; however, no claim
22		for credit or refund is allowed for taxes paid as a result of
23		the disallowance of this exemption on or after January 1, 2015
24		and prior to February 5, 2020 (the effective date of Public Act
25		101-629).
26		(36) Tangible personal property purchased by a

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1		public-facilities corporation, as described in Section
2		11-65-10 of the Illinois Municipal Code, for purposes of
3		constructing or furnishing a municipal convention hall, but
4		only if the legal title to the municipal convention hall is
5		transferred to the municipality without any further
6		consideration by or on behalf of the municipality at the time
7		of the completion of the municipal convention hall or upon the
8		retirement or redemption of any bonds or other debt
9		instruments issued by the public-facilities corporation in
10		connection with the development of the municipal convention
11		hall. This exemption includes existing public-facilities
12		corporations as provided in Section 11-65-25 of the Illinois
13		Municipal Code. This paragraph is exempt from the provisions
14		of Section 3-90.
15		(37) Beginning January 1, 2017 and through December 31,
16		2026, menstrual pads, tampons, and menstrual cups.
17		(38) Merchandise that is subject to the Rental Purchase
18		Agreement Occupation and Use Tax. The purchaser must certify
19		that the item is purchased to be rented subject to a
20		rental-purchase rental purchase agreement, as defined in the
21		Rental-Purchase Rental Purchase Agreement Act, and provide
22		proof of registration under the Rental Purchase Agreement
23		Occupation and Use Tax Act. This paragraph is exempt from the
24		provisions of Section 3-90.
25		(39) Tangible personal property purchased by a purchaser
26		who is exempt from the tax imposed by this Act by operation of

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1		federal law. This paragraph is exempt from the provisions of
2		Section 3-90.
3		(40) Qualified tangible personal property used in the
4		construction or operation of a data center that has been
5		granted a certificate of exemption by the Department of
6		Commerce and Economic Opportunity, whether that tangible
7		personal property is purchased by the owner, operator, or
8		tenant of the data center or by a contractor or subcontractor
9		of the owner, operator, or tenant. Data centers that would
10		have qualified for a certificate of exemption prior to January
11		1, 2020 had Public Act 101-31 been in effect may apply for and
12		obtain an exemption for subsequent purchases of computer
13		equipment or enabling software purchased or leased to upgrade,
14		supplement, or replace computer equipment or enabling software
15		purchased or leased in the original investment that would have
16		qualified.
17		The Department of Commerce and Economic Opportunity shall
18		grant a certificate of exemption under this item (40) to
19		qualified data centers as defined by Section 605-1025 of the
20		Department of Commerce and Economic Opportunity Law of the
21		Civil Administrative Code of Illinois.
22		For the purposes of this item (40):
23		"Data center" means a building or a series of
24		buildings rehabilitated or constructed to house working
25		servers in one physical location or multiple sites within
26		the State of Illinois.

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1		"Qualified tangible personal property" means:
2		electrical systems and equipment; climate control and
3		chilling equipment and systems; mechanical systems and
4		equipment; monitoring and secure systems; emergency
5		generators; hardware; computers; servers; data storage
6		devices; network connectivity equipment; racks; cabinets;
7		telecommunications cabling infrastructure; raised floor
8		systems; peripheral components or systems; software;
9		mechanical, electrical, or plumbing systems; battery
10		systems; cooling systems and towers; temperature control
11		systems; other cabling; and other data center
12		infrastructure equipment and systems necessary to operate
13		qualified tangible personal property, including fixtures;
14		and component parts of any of the foregoing, including
15		installation, maintenance, repair, refurbishment, and
16		replacement of qualified tangible personal property to
17		generate, transform, transmit, distribute, or manage
18		electricity necessary to operate qualified tangible
19		personal property; and all other tangible personal
20		property that is essential to the operations of a computer
21		data center. The term "qualified tangible personal
22		property" also includes building materials physically
23		incorporated into in to the qualifying data center. To
24		document the exemption allowed under this Section, the
25		retailer must obtain from the purchaser a copy of the
26		certificate of eligibility issued by the Department of

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1		Commerce and Economic Opportunity.
2		This item (40) is exempt from the provisions of Section
3		3-90.
4		(41) Beginning July 1, 2022, breast pumps, breast pump
5		collection and storage supplies, and breast pump kits. This
6		item (41) is exempt from the provisions of Section 3-90. As
7		used in this item (41):
8		"Breast pump" means an electrically controlled or
9		manually controlled pump device designed or marketed to be
10		used to express milk from a human breast during lactation,
11		including the pump device and any battery, AC adapter, or
12		other power supply unit that is used to power the pump
13		device and is packaged and sold with the pump device at the
14		time of sale.
15		"Breast pump collection and storage supplies" means
16		items of tangible personal property designed or marketed
17		to be used in conjunction with a breast pump to collect
18		milk expressed from a human breast and to store collected
19		milk until it is ready for consumption.
20		"Breast pump collection and storage supplies"
21		includes, but is not limited to: breast shields and breast
22		shield connectors; breast pump tubes and tubing adapters;
23		breast pump valves and membranes; backflow protectors and
24		backflow protector adaptors; bottles and bottle caps
25		specific to the operation of the breast pump; and breast
26		milk storage bags.

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1		"Breast pump collection and storage supplies" does not
2		include: (1) bottles and bottle caps not specific to the
3		operation of the breast pump; (2) breast pump travel bags
4		and other similar carrying accessories, including ice
5		packs, labels, and other similar products; (3) breast pump
6		cleaning supplies; (4) nursing bras, bra pads, breast
7		shells, and other similar products; and (5) creams,
8		ointments, and other similar products that relieve
9		breastfeeding-related symptoms or conditions of the
10		breasts or nipples, unless sold as part of a breast pump
11		kit that is pre-packaged by the breast pump manufacturer
12		or distributor.
13		"Breast pump kit" means a kit that: (1) contains no
14		more than a breast pump, breast pump collection and
15		storage supplies, a rechargeable battery for operating the
16		breast pump, a breastmilk cooler, bottle stands, ice
17		packs, and a breast pump carrying case; and (2) is
18		pre-packaged as a breast pump kit by the breast pump
19		manufacturer or distributor.
20		(42) Tangible personal property sold by or on behalf of
21		the State Treasurer pursuant to the Revised Uniform Unclaimed
22		Property Act. This item (42) is exempt from the provisions of
23		Section 3-90.
24		(43) Beginning on January 1, 2024, tangible personal
25		property purchased by an active duty member of the armed
26		forces of the United States who presents valid military

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1		identification and purchases the property using a form of
2		payment where the federal government is the payor. The member
3		of the armed forces must complete, at the point of sale, a form
4		prescribed by the Department of Revenue documenting that the
5		transaction is eligible for the exemption under this
6		paragraph. Retailers must keep the form as documentation of
7		the exemption in their records for a period of not less than 6
8		years. "Armed forces of the United States" means the United
9		States Army, Navy, Air Force, Marine Corps, or Coast Guard.
10		This paragraph is exempt from the provisions of Section 3-90.
11		(44) Use by the lessee of the following leased tangible
12		personal property:
13		(1) software transferred subject to a license that
14		meets the following requirements:
15		(A) it is evidenced by a written agreement signed
16		by the licensor and the customer;
17		(i) an electronic agreement in which the
18		customer accepts the license by means of an
19		electronic signature that is verifiable and can be
20		authenticated and is attached to or made part of
21		the license will comply with this requirement;
22		(ii) a license agreement in which the customer
23		electronically accepts the terms by clicking "I
24		agree" does not comply with this requirement;
25		(B) it restricts the customer's duplication and
26		use of the software;

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1		(C) it prohibits the customer from licensing,
2		sublicensing, or transferring the software to a third
3		party (except to a related party) without the
4		permission and continued control of the licensor;
5		(D) the licensor has a policy of providing another
6		copy at minimal or no charge if the customer loses or
7		damages the software, or of permitting the licensee to
8		make and keep an archival copy, and such policy is
9		either stated in the license agreement, supported by
10		the licensor's books and records, or supported by a
11		notarized statement made under penalties of perjury by
12		the licensor; and
13		(E) the customer must destroy or return all copies
14		of the software to the licensor at the end of the
15		license period; this provision is deemed to be met, in
16		the case of a perpetual license, without being set
17		forth in the license agreement; and
18		(2) property that is subject to a tax on lease
19		receipts imposed by a home rule unit of local government
20		if the ordinance imposing that tax was adopted prior to
21		January 1, 2023.
22		(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
23		Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
24		eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
25		Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
26		eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;

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1		revised 12-12-23.)
2		(35 ILCS 105/3-10)
3		Sec. 3-10. Rate of tax. Unless otherwise provided in this
4		Section, the tax imposed by this Act is at the rate of 6.25% of
5		either the selling price or the fair market value, if any, of
6		the tangible personal property, which, on and after January 1,
7		2025, includes leases of tangible personal property. In all
8		cases where property functionally used or consumed is the same
9		as the property that was purchased at retail, then the tax is
10		imposed on the selling price of the property. In all cases
11		where property functionally used or consumed is a by-product
12		or waste product that has been refined, manufactured, or
13		produced from property purchased at retail, then the tax is
14		imposed on the lower of the fair market value, if any, of the
15		specific property so used in this State or on the selling price
16		of the property purchased at retail. For purposes of this
17		Section "fair market value" means the price at which property
18		would change hands between a willing buyer and a willing
19		seller, neither being under any compulsion to buy or sell and
20		both having reasonable knowledge of the relevant facts. The
21		fair market value shall be established by Illinois sales by
22		the taxpayer of the same property as that functionally used or
23		consumed, or if there are no such sales by the taxpayer, then
24		comparable sales or purchases of property of like kind and
25		character in Illinois.

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1		Beginning on July 1, 2000 and through December 31, 2000,
2		with respect to motor fuel, as defined in Section 1.1 of the
3		Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4		the Use Tax Act, the tax is imposed at the rate of 1.25%.
5		Beginning on August 6, 2010 through August 15, 2010, and
6		beginning again on August 5, 2022 through August 14, 2022,
7		with respect to sales tax holiday items as defined in Section
8		3-6 of this Act, the tax is imposed at the rate of 1.25%.
9		With respect to gasohol, the tax imposed by this Act
10		applies to (i) 70% of the proceeds of sales made on or after
11		January 1, 1990, and before July 1, 2003, (ii) 80% of the
12		proceeds of sales made on or after July 1, 2003 and on or
13		before July 1, 2017, (iii) 100% of the proceeds of sales made
14		after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
15		the proceeds of sales made on or after January 1, 2024 and on
16		or before December 31, 2028, and (v) 100% of the proceeds of
17		sales made after December 31, 2028. If, at any time, however,
18		the tax under this Act on sales of gasohol is imposed at the
19		rate of 1.25%, then the tax imposed by this Act applies to 100%
20		of the proceeds of sales of gasohol made during that time.
21		With respect to mid-range ethanol blends, the tax imposed
22		by this Act applies to (i) 80% of the proceeds of sales made on
23		or after January 1, 2024 and on or before December 31, 2028 and
24		(ii) 100% of the proceeds of sales made thereafter. If, at any
25		time, however, the tax under this Act on sales of mid-range
26		ethanol blends is imposed at the rate of 1.25%, then the tax

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1		imposed by this Act applies to 100% of the proceeds of sales of
2		mid-range ethanol blends made during that time.
3		With respect to majority blended ethanol fuel, the tax
4		imposed by this Act does not apply to the proceeds of sales
5		made on or after July 1, 2003 and on or before December 31,
6		2028 but applies to 100% of the proceeds of sales made
7		thereafter.
8		With respect to biodiesel blends with no less than 1% and
9		no more than 10% biodiesel, the tax imposed by this Act applies
10		to (i) 80% of the proceeds of sales made on or after July 1,
11		2003 and on or before December 31, 2018 and (ii) 100% of the
12		proceeds of sales made after December 31, 2018 and before
13		January 1, 2024. On and after January 1, 2024 and on or before
14		December 31, 2030, the taxation of biodiesel, renewable
15		diesel, and biodiesel blends shall be as provided in Section
16		3-5.1. If, at any time, however, the tax under this Act on
17		sales of biodiesel blends with no less than 1% and no more than
18		10% biodiesel is imposed at the rate of 1.25%, then the tax
19		imposed by this Act applies to 100% of the proceeds of sales of
20		biodiesel blends with no less than 1% and no more than 10%
21		biodiesel made during that time.
22		With respect to biodiesel and biodiesel blends with more
23		than 10% but no more than 99% biodiesel, the tax imposed by
24		this Act does not apply to the proceeds of sales made on or
25		after July 1, 2003 and on or before December 31, 2023. On and
26		after January 1, 2024 and on or before December 31, 2030, the

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1		taxation of biodiesel, renewable diesel, and biodiesel blends
2		shall be as provided in Section 3-5.1.
3		Until July 1, 2022 and beginning again on July 1, 2023,
4		with respect to 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, and food that has been prepared for
8		immediate consumption), the tax is imposed at the rate of 1%.
9		Beginning on July 1, 2022 and until July 1, 2023, with respect
10		to food for human consumption that is to be consumed off the
11		premises where it is sold (other than alcoholic beverages,
12		food consisting of or infused with adult use cannabis, soft
13		drinks, and food that has been prepared for immediate
14		consumption), the tax is imposed at the rate of 0%.
15		With respect to prescription and nonprescription
16		medicines, drugs, medical appliances, products classified as
17		Class III medical devices by the United States Food and Drug
18		Administration that are used for cancer treatment pursuant to
19		a prescription, as well as any accessories and components
20		related to those devices, modifications to a motor vehicle for
21		the purpose of rendering it usable by a person with a
22		disability, and insulin, blood sugar testing materials,
23		syringes, and needles used by human diabetics, the tax is
24		imposed at the rate of 1%. For the purposes of this Section,
25		until September 1, 2009: the term "soft drinks" means any
26		complete, finished, ready-to-use, non-alcoholic drink, whether

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

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

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1		substance or preparation.
2		Beginning on January 1, 2014 (the effective date of Public
3		Act 98-122), "prescription and nonprescription medicines and
4		drugs" includes medical cannabis purchased from a registered
5		dispensing organization under the Compassionate Use of Medical
6		Cannabis Program Act.
7		As used in this Section, "adult use cannabis" means
8		cannabis subject to tax under the Cannabis Cultivation
9		Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
10		and does not include cannabis subject to tax under the
11		Compassionate Use of Medical Cannabis Program Act.
12		If the property that is purchased at retail from a
13		retailer is acquired outside Illinois and used outside
14		Illinois before being brought to Illinois for use here and is
15		taxable under this Act, the "selling price" on which the tax is
16		computed shall be reduced by an amount that represents a
17		reasonable allowance for depreciation for the period of prior
18		out-of-state use. No depreciation is allowed in cases where
19		the tax under this Act is imposed on lease receipts.
20		(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
21		Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
22		60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
23		4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
24		(35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
25		Sec. 3-55. Multistate exemption. To prevent actual or

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1		likely multistate taxation, the tax imposed by this Act does
2		not apply to the use of tangible personal property in this
3		State under the following circumstances:
4		(a) The use, in this State, of tangible personal property
5		acquired outside this State by a nonresident individual and
6		brought into this State by the individual for his or her own
7		use while temporarily within this State or while passing
8		through this State.
9		(b) (Blank).
10		(c) The use, in this State, by owners or , lessors,
11		lessees, or shippers of tangible personal property that is
12		utilized by interstate carriers for hire for use as rolling
13		stock moving in interstate commerce as long as so used by the
14		interstate carriers for hire, and equipment operated by a
15		telecommunications provider, licensed as a common carrier by
16		the Federal Communications Commission, which is permanently
17		installed in or affixed to aircraft moving in interstate
18		commerce.
19		(d) The use, in this State, of tangible personal property
20		that is acquired outside this State and caused to be brought
21		into this State by a person who has already paid a tax in
22		another State in respect to the sale, purchase, or use of that
23		property, to the extent of the amount of the tax properly due
24		and paid in the other State.
25		(e) The temporary storage, in this State, of tangible
26		personal property that is acquired outside this State and

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1		that, after being brought into this State and stored here
2		temporarily, is used solely outside this State or is
3		physically attached to or incorporated into other tangible
4		personal property that is used solely outside this State, or
5		is altered by converting, fabricating, manufacturing,
6		printing, processing, or shaping, and, as altered, is used
7		solely outside this State.
8		(f) The temporary storage in this State of building
9		materials and fixtures that are acquired either in this State
10		or outside this State by an Illinois registered combination
11		retailer and construction contractor, and that the purchaser
12		thereafter uses outside this State by incorporating that
13		property into real estate located outside this State.
14		(g) The use or purchase of tangible personal property by a
15		common carrier by rail or motor that receives the physical
16		possession of the property in Illinois, and that transports
17		the property, or shares with another common carrier in the
18		transportation of the property, out of Illinois on a standard
19		uniform bill of lading showing the seller of the property as
20		the shipper or consignor of the property to a destination
21		outside Illinois, for use outside Illinois.
22		(h) Except as provided in subsection (h-1), the use, in
23		this State, of a motor vehicle that was sold in this State to a
24		nonresident, even though the motor vehicle is delivered to the
25		nonresident in this State, if the motor vehicle is not to be
26		titled in this State, and if a drive-away permit is issued to

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1		the motor vehicle as provided in Section 3-603 of the Illinois
2		Vehicle Code or if the nonresident purchaser has vehicle
3		registration plates to transfer to the motor vehicle upon
4		returning to his or her home state. The issuance of the
5		drive-away permit or having the out-of-state registration
6		plates to be transferred shall be prima facie evidence that
7		the motor vehicle will not be titled in this State.
8		(h-1) The exemption under subsection (h) does not apply if
9		the state in which the motor vehicle will be titled does not
10		allow a reciprocal exemption for the use in that state of a
11		motor vehicle sold and delivered in that state to an Illinois
12		resident but titled in Illinois. The tax collected under this
13		Act on the sale of a motor vehicle in this State to a resident
14		of another state that does not allow a reciprocal exemption
15		shall be imposed at a rate equal to the state's rate of tax on
16		taxable property in the state in which the purchaser is a
17		resident, except that the tax shall not exceed the tax that
18		would otherwise be imposed under this Act. At the time of the
19		sale, the purchaser shall execute a statement, signed under
20		penalty of perjury, of his or her intent to title the vehicle
21		in the state in which the purchaser is a resident within 30
22		days after the sale and of the fact of the payment to the State
23		of Illinois of tax in an amount equivalent to the state's rate
24		of tax on taxable property in his or her state of residence and
25		shall submit the statement to the appropriate tax collection
26		agency in his or her state of residence. In addition, the

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1		retailer must retain a signed copy of the statement in his or
2		her records. Nothing in this subsection shall be construed to
3		require the removal of the vehicle from this state following
4		the filing of an intent to title the vehicle in the purchaser's
5		state of residence if the purchaser titles the vehicle in his
6		or her state of residence within 30 days after the date of
7		sale. The tax collected under this Act in accordance with this
8		subsection (h-1) shall be proportionately distributed as if
9		the tax were collected at the 6.25% general rate imposed under
10		this Act.
11		(h-2) The following exemptions apply with respect to
12		certain aircraft:
13		(1) Beginning on July 1, 2007, no tax is imposed under
14		this Act on the purchase of an aircraft, as defined in
15		Section 3 of the Illinois Aeronautics Act, if all of the
16		following conditions are met:
17		(A) the aircraft leaves this State within 15 days
18		after the later of either the issuance of the final
19		billing for the purchase of the aircraft or the
20		authorized approval for return to service, completion
21		of the maintenance record entry, and completion of the
22		test flight and ground test for inspection, as
23		required by 14 C.F.R. 91.407;
24		(B) the aircraft is not based or registered in
25		this State after the purchase of the aircraft; and
26		(C) the purchaser provides the Department with a

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1		signed and dated certification, on a form prescribed
2		by the Department, certifying that the requirements of
3		this item (1) are met. The certificate must also
4		include the name and address of the purchaser, the
5		address of the location where the aircraft is to be
6		titled or registered, the address of the primary
7		physical location of the aircraft, and other
8		information that the Department may reasonably
9		require.
10		(2) Beginning on July 1, 2007, no tax is imposed under
11		this Act on the use of an aircraft, as defined in Section 3
12		of the Illinois Aeronautics Act, that is temporarily
13		located in this State for the purpose of a prepurchase
14		evaluation if all of the following conditions are met:
15		(A) the aircraft is not based or registered in
16		this State after the prepurchase evaluation; and
17		(B) the purchaser provides the Department with a
18		signed and dated certification, on a form prescribed
19		by the Department, certifying that the requirements of
20		this item (2) are met. The certificate must also
21		include the name and address of the purchaser, the
22		address of the location where the aircraft is to be
23		titled or registered, the address of the primary
24		physical location of the aircraft, and other
25		information that the Department may reasonably
26		require.

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1		(3) Beginning on July 1, 2007, no tax is imposed under
2		this Act on the use of an aircraft, as defined in Section 3
3		of the Illinois Aeronautics Act, that is temporarily
4		located in this State for the purpose of a post-sale
5		customization if all of the following conditions are met:
6		(A) the aircraft leaves this State within 15 days
7		after the authorized approval for return to service,
8		completion of the maintenance record entry, and
9		completion of the test flight and ground test for
10		inspection, as required by 14 C.F.R. 91.407;
11		(B) the aircraft is not based or registered in
12		this State either before or after the post-sale
13		customization; and
14		(C) the purchaser provides the Department with a
15		signed and dated certification, on a form prescribed
16		by the Department, certifying that the requirements of
17		this item (3) are met. The certificate must also
18		include the name and address of the purchaser, the
19		address of the location where the aircraft is to be
20		titled or registered, the address of the primary
21		physical location of the aircraft, and other
22		information that the Department may reasonably
23		require.
24		If tax becomes due under this subsection (h-2) because of
25		the purchaser's use of the aircraft in this State, the
26		purchaser shall file a return with the Department and pay the

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1		tax on the fair market value of the aircraft. This return and
2		payment of the tax must be made no later than 30 days after the
3		aircraft is used in a taxable manner in this State. The tax is
4		based on the fair market value of the aircraft on the date that
5		it is first used in a taxable manner in this State.
6		For purposes of this subsection (h-2):
7		"Based in this State" means hangared, stored, or otherwise
8		used, excluding post-sale customizations as defined in this
9		Section, for 10 or more days in each 12-month period
10		immediately following the date of the sale of the aircraft.
11		"Post-sale customization" means any improvement,
12		maintenance, or repair that is performed on an aircraft
13		following a transfer of ownership of the aircraft.
14		"Prepurchase evaluation" means an examination of an
15		aircraft to provide a potential purchaser with information
16		relevant to the potential purchase.
17		"Registered in this State" means an aircraft registered
18		with the Department of Transportation, Aeronautics Division,
19		or titled or registered with the Federal Aviation
20		Administration to an address located in this State.
21		This subsection (h-2) is exempt from the provisions of
22		Section 3-90.
23		(i) Beginning July 1, 1999, the use, in this State, of fuel
24		acquired outside this State and brought into this State in the
25		fuel supply tanks of locomotives engaged in freight hauling
26		and passenger service for interstate commerce. This subsection

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1		is exempt from the provisions of Section 3-90.
2		(j) Beginning on January 1, 2002 and through June 30,
3		2016, the use of tangible personal property purchased from an
4		Illinois retailer by a taxpayer engaged in centralized
5		purchasing activities in Illinois who will, upon receipt of
6		the property in Illinois, temporarily store the property in
7		Illinois (i) for the purpose of subsequently transporting it
8		outside this State for use or consumption thereafter solely
9		outside this State or (ii) for the purpose of being processed,
10		fabricated, or manufactured into, attached to, or incorporated
11		into other tangible personal property to be transported
12		outside this State and thereafter used or consumed solely
13		outside this State. The Director of Revenue shall, pursuant to
14		rules adopted in accordance with the Illinois Administrative
15		Procedure Act, issue a permit to any taxpayer in good standing
16		with the Department who is eligible for the exemption under
17		this subsection (j). The permit issued under this subsection
18		(j) shall authorize the holder, to the extent and in the manner
19		specified in the rules adopted under this Act, to purchase
20		tangible personal property from a retailer exempt from the
21		taxes imposed by this Act. Taxpayers shall maintain all
22		necessary books and records to substantiate the use and
23		consumption of all such tangible personal property outside of
24		the State of Illinois.
25		(Source: P.A. 100-321, eff. 8-24-17.)

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1		(35 ILCS 105/9) (from Ch. 120, par. 439.9)
2		Sec. 9. Except as to motor vehicles, watercraft, aircraft,
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. When
14		determining the discount allowed under this Section, retailers
15		shall include the amount of tax that would have been due at the
16		6.25% rate but for the 1.25% rate imposed on sales tax holiday
17		items under Public Act 102-700. The discount under this
18		Section is not allowed for the 1.25% portion of taxes paid on
19		aviation fuel that is subject to the revenue use requirements
20		of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining
21		the discount allowed under this Section, retailers shall
22		include the amount of tax that would have been due at the 1%
23		rate but for the 0% rate imposed under Public Act 102-700. In
24		the case of retailers who report and pay the tax on a
25		transaction by transaction basis, as provided in this Section,
26		such discount shall be taken with each such tax remittance

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1		instead of when such retailer files his periodic return. The
2		discount allowed under this Section is allowed only for
3		returns that are filed in the manner required by this Act. The
4		Department may disallow the discount for retailers whose
5		certificate of registration is revoked at the time the return
6		is filed, but only if the Department's decision to revoke the
7		certificate of registration has become final. A retailer need
8		not remit that part of any tax collected by him to the extent
9		that he is required to remit and does remit the tax imposed by
10		the Retailers' Occupation Tax Act, with respect to the sale of
11		the same property.
12		Where such tangible personal property is sold under a
13		conditional sales contract, or under any other form of sale
14		wherein the payment of the principal sum, or a part thereof, is
15		extended beyond the close of the period for which the return is
16		filed, the retailer, in collecting the tax (except as to motor
17		vehicles, watercraft, aircraft, and trailers that are required
18		to be registered with an agency of this State), may collect for
19		each tax return period, only the tax applicable to that part of
20		the selling price actually received during such tax return
21		period.
22		In the case of leases, except as otherwise provided in
23		this Act, the lessor, in collecting the tax, 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		Except as provided in this Section, on or before the
2		twentieth day of each calendar month, such retailer shall file
3		a return for the preceding calendar month. Such return shall
4		be filed on forms prescribed by the Department and shall
5		furnish such information as the Department may reasonably
6		require. The return shall include the gross receipts on food
7		for human consumption that is to be consumed off the premises
8		where it is sold (other than alcoholic beverages, food
9		consisting of or infused with adult use cannabis, soft drinks,
10		and food that has been prepared for immediate consumption)
11		which were received during the preceding calendar month,
12		quarter, or year, as appropriate, and upon which tax would
13		have been due but for the 0% rate imposed under Public Act
14		102-700. The return shall also include the amount of tax that
15		would have been due on 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, and food that has been prepared for
19		immediate consumption) but for the 0% rate imposed under
20		Public Act 102-700.
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		The Department may require returns to be filed on a
12		quarterly basis. If so required, a return for each calendar
13		quarter shall be filed on or before the twentieth day of the
14		calendar month following the end of such calendar quarter. The
15		taxpayer shall also file a return with the Department for each
16		of the first two months of each calendar quarter, on or before
17		the twentieth day of the following calendar month, stating:
18		1. The name of the seller;
19		2. The address of the principal place of business from
20		which he engages in the business of selling tangible
21		personal property at retail in this State;
22		3. The total amount of taxable receipts received by
23		him during the preceding calendar month from sales of
24		tangible personal property by him during such preceding
25		calendar month, including receipts from charge and time
26		sales, but less all deductions allowed by law;

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

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1		by electronic means in the manner and form required by the
2		Department.
3		Beginning October 1, 1993, a taxpayer who has an average
4		monthly tax liability of $150,000 or more shall make all
5		payments required by rules of the Department by electronic
6		funds transfer. Beginning October 1, 1994, a taxpayer who has
7		an average monthly tax liability of $100,000 or more shall
8		make all payments required by rules of the Department by
9		electronic funds transfer. Beginning October 1, 1995, a
10		taxpayer who has an average monthly tax liability of $50,000
11		or more shall make all payments required by rules of the
12		Department by electronic funds transfer. Beginning October 1,
13		2000, a taxpayer who has an annual tax liability of $200,000 or
14		more shall make all payments required by rules of the
15		Department by electronic funds transfer. The term "annual tax
16		liability" shall be the sum of the taxpayer's liabilities
17		under this Act, and under all other State and local occupation
18		and use tax laws administered by the Department, for the
19		immediately preceding calendar year. The term "average monthly
20		tax liability" means the sum of the taxpayer's liabilities
21		under this Act, and under all other State and local occupation
22		and use tax laws administered by the Department, for the
23		immediately preceding calendar year divided by 12. Beginning
24		on October 1, 2002, a taxpayer who has a tax liability in the
25		amount set forth in subsection (b) of Section 2505-210 of the
26		Department of Revenue Law shall make all payments required by

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1		rules of the Department by electronic funds transfer.
2		Before August 1 of each year beginning in 1993, the
3		Department shall notify all taxpayers required to make
4		payments by electronic funds transfer. All taxpayers required
5		to make payments by electronic funds transfer shall make those
6		payments for a minimum of one year beginning on October 1.
7		Any taxpayer not required to make payments by electronic
8		funds transfer may make payments by electronic funds transfer
9		with the permission of the Department.
10		All taxpayers required to make payment by electronic funds
11		transfer and any taxpayers authorized to voluntarily make
12		payments by electronic funds transfer shall make those
13		payments in the manner authorized by the Department.
14		The Department shall adopt such rules as are necessary to
15		effectuate a program of electronic funds transfer and the
16		requirements of this Section.
17		Before October 1, 2000, if the taxpayer's average monthly
18		tax liability to the Department under this Act, the Retailers'
19		Occupation Tax Act, the Service Occupation Tax Act, the
20		Service Use Tax Act was $10,000 or more during the preceding 4
21		complete calendar quarters, he shall file a return with the
22		Department each month by the 20th day of the month next
23		following the month during which such tax liability is
24		incurred and shall make payments to the Department on or
25		before the 7th, 15th, 22nd and last day of the month during
26		which such liability is incurred. On and after October 1,

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1		2000, if the taxpayer's average monthly tax liability to the
2		Department under this Act, the Retailers' Occupation Tax Act,
3		the Service Occupation Tax Act, and the Service Use Tax Act was
4		$20,000 or more during the preceding 4 complete calendar
5		quarters, he shall file a return with the Department each
6		month by the 20th day of the month next following the month
7		during which such tax liability is incurred and shall make
8		payment to the Department on or before the 7th, 15th, 22nd and
9		last day of the month during which such liability is incurred.
10		If the month during which such tax liability is incurred began
11		prior to January 1, 1985, each payment shall be in an amount
12		equal to 1/4 of the taxpayer's actual liability for the month
13		or an amount set by the Department not to exceed 1/4 of the
14		average monthly liability of the taxpayer to the Department
15		for the preceding 4 complete calendar quarters (excluding the
16		month of highest liability and the month of lowest liability
17		in such 4 quarter period). If the month during which such tax
18		liability is incurred begins on or after January 1, 1985, and
19		prior to January 1, 1987, each payment shall be in an amount
20		equal to 22.5% of the taxpayer's actual liability for the
21		month or 27.5% of the taxpayer's liability for the same
22		calendar month of the preceding year. If the month during
23		which such tax liability is incurred begins on or after
24		January 1, 1987, and prior to January 1, 1988, each payment
25		shall be in an amount equal to 22.5% of the taxpayer's actual
26		liability for the month or 26.25% of the taxpayer's liability

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1		for the same calendar month of the preceding year. If the month
2		during which such tax liability is incurred begins on or after
3		January 1, 1988, and prior to January 1, 1989, or begins on or
4		after January 1, 1996, each payment shall be in an amount equal
5		to 22.5% of the taxpayer's actual liability for the month or
6		25% of the taxpayer's liability for the same calendar month of
7		the preceding year. If the month during which such tax
8		liability is incurred begins on or after January 1, 1989, and
9		prior to January 1, 1996, each payment shall be in an amount
10		equal to 22.5% of the taxpayer's actual liability for the
11		month or 25% of the taxpayer's liability for the same calendar
12		month of the preceding year or 100% of the taxpayer's actual
13		liability for the quarter monthly reporting period. The amount
14		of such quarter monthly payments shall be credited against the
15		final tax liability of the taxpayer's return for that month.
16		Before October 1, 2000, once applicable, the requirement of
17		the making of quarter monthly payments to the Department shall
18		continue until such taxpayer's average monthly liability to
19		the Department during the preceding 4 complete calendar
20		quarters (excluding the month of highest liability and the
21		month of lowest liability) is less than $9,000, or until such
22		taxpayer's average monthly liability to the Department as
23		computed for each calendar quarter of the 4 preceding complete
24		calendar quarter period is less than $10,000. However, if a
25		taxpayer can show the Department that a substantial change in
26		the taxpayer's business has occurred which causes the taxpayer

HB4951 Enrolled - 355 - LRB103 38094 HLH 68226 b
1		to anticipate that his average monthly tax liability for the
2		reasonably foreseeable future will fall below the $10,000
3		threshold stated above, then such taxpayer may petition the
4		Department for change in such taxpayer's reporting status. On
5		and after October 1, 2000, once applicable, the requirement of
6		the making of quarter monthly payments to the Department shall
7		continue until such taxpayer's average monthly liability to
8		the Department during the preceding 4 complete calendar
9		quarters (excluding the month of highest liability and the
10		month of lowest liability) is less than $19,000 or until such
11		taxpayer's average monthly liability to the Department as
12		computed for each calendar quarter of the 4 preceding complete
13		calendar quarter period is less than $20,000. However, if a
14		taxpayer can show the Department that a substantial change in
15		the taxpayer's business has occurred which causes the taxpayer
16		to anticipate that his average monthly tax liability for the
17		reasonably foreseeable future will fall below the $20,000
18		threshold stated above, then such taxpayer may petition the
19		Department for a change in such taxpayer's reporting status.
20		The Department shall change such taxpayer's reporting status
21		unless it finds that such change is seasonal in nature and not
22		likely to be long term. Quarter monthly payment status shall
23		be determined under this paragraph as if the rate reduction to
24		1.25% in Public Act 102-700 on sales tax holiday items had not
25		occurred. For quarter monthly payments due on or after July 1,
26		2023 and through June 30, 2024, "25% of the taxpayer's

HB4951 Enrolled - 356 - LRB103 38094 HLH 68226 b
1		liability for the same calendar month of the preceding year"
2		shall be determined as if the rate reduction to 1.25% in Public
3		Act 102-700 on sales tax holiday items had not occurred.
4		Quarter monthly payment status shall be determined under this
5		paragraph as if the rate reduction to 0% in Public Act 102-700
6		on food for human consumption that is to be consumed off the
7		premises where it is sold (other than alcoholic beverages,
8		food consisting of or infused with adult use cannabis, soft
9		drinks, and food that has been prepared for immediate
10		consumption) had not occurred. For quarter monthly payments
11		due under this paragraph on or after July 1, 2023 and through
12		June 30, 2024, "25% of the taxpayer's liability for the same
13		calendar month of the preceding year" shall be determined as
14		if the rate reduction to 0% in Public Act 102-700 had not
15		occurred. If any such quarter monthly payment is not paid at
16		the time or in the amount required by this Section, then the
17		taxpayer shall be liable for penalties and interest on the
18		difference between the minimum amount due and the amount of
19		such quarter monthly payment actually and timely paid, except
20		insofar as the taxpayer has previously made payments for that
21		month to the Department in excess of the minimum payments
22		previously due as provided in this Section. The Department
23		shall make reasonable rules and regulations to govern the
24		quarter monthly payment amount and quarter monthly payment
25		dates for taxpayers who file on other than a calendar monthly
26		basis.

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

HB4951 Enrolled - 358 - LRB103 38094 HLH 68226 b
1		liable for penalties and interest on such difference.
2		If the retailer is otherwise required to file a monthly
3		return and if the retailer's average monthly tax liability to
4		the Department does not exceed $200, the Department may
5		authorize his returns to be filed on a quarter annual basis,
6		with the return for January, February, and March of a given
7		year being due by April 20 of such year; with the return for
8		April, May and June of a given year being due by July 20 of
9		such year; with the return for July, August and September of a
10		given year being due by October 20 of such year, and with the
11		return for October, November and December of a given year
12		being due by January 20 of the following year.
13		If the retailer is otherwise required to file a monthly or
14		quarterly return and if the retailer's average monthly tax
15		liability to the Department does not exceed $50, the
16		Department may authorize his returns to be filed on an annual
17		basis, with the return for a given year being due by January 20
18		of the following year.
19		Such quarter annual and annual returns, as to form and
20		substance, shall be subject to the same requirements as
21		monthly returns.
22		Notwithstanding any other provision in this Act concerning
23		the time within which a retailer may file his return, in the
24		case of any retailer who ceases to engage in a kind of business
25		which makes him responsible for filing returns under this Act,
26		such retailer shall file a final return under this Act with the

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1		Department not more than one month after discontinuing such
2		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 or
13		trailer to another aircraft, watercraft, motor vehicle or
14		trailer retailer for the purpose of resale or (ii) a retailer
15		of aircraft, watercraft, motor vehicles, or trailers transfers
16		more than one aircraft, watercraft, motor vehicle, or trailer
17		to a purchaser for use as a qualifying rolling stock as
18		provided in Section 3-55 of this Act, then that seller may
19		report the transfer of all the aircraft, watercraft, motor
20		vehicles or trailers involved in that transaction to the
21		Department on the same uniform invoice-transaction reporting
22		return form. For purposes of this Section, "watercraft" means
23		a Class 2, Class 3, or Class 4 watercraft as defined in Section
24		3-2 of the Boat Registration and Safety Act, a personal
25		watercraft, or any boat equipped with an inboard motor.
26		In addition, with respect to motor vehicles, watercraft,

HB4951 Enrolled - 360 - LRB103 38094 HLH 68226 b
1		aircraft, and trailers that are required to be registered with
2		an agency of this State, every person who is engaged in the
3		business of leasing or renting such items and who, in
4		connection with such business, sells any such item to a
5		retailer for the purpose of resale is, notwithstanding any
6		other provision of this Section to the contrary, authorized to
7		meet the return-filing requirement of this Act by reporting
8		the transfer of all the aircraft, watercraft, motor vehicles,
9		or trailers transferred for resale during a month to the
10		Department on the same uniform invoice-transaction reporting
11		return form on or before the 20th of the month following the
12		month in which the transfer takes place. Notwithstanding any
13		other provision of this Act to the contrary, all returns filed
14		under this paragraph must be filed by electronic means in the
15		manner and form as required by the Department.
16		The transaction reporting return in the case of motor
17		vehicles or trailers that are required to be registered with
18		an agency of this State, shall be the same document as the
19		Uniform Invoice referred to in Section 5-402 of the Illinois
20		Vehicle Code and must show the name and address of the seller;
21		the name and address of the purchaser; the amount of the
22		selling price including the amount allowed by the retailer for
23		traded-in property, if any; the amount allowed by the retailer
24		for the traded-in tangible personal property, if any, to the
25		extent to which Section 2 of this Act allows an exemption for
26		the value of traded-in property; the balance payable after

HB4951 Enrolled - 361 - LRB103 38094 HLH 68226 b
1		deducting such trade-in allowance from the total selling
2		price; the amount of tax due from the retailer with respect to
3		such transaction; the amount of tax collected from the
4		purchaser by the retailer on such transaction (or satisfactory
5		evidence that such tax is not due in that particular instance,
6		if that is claimed to be the fact); the place and date of the
7		sale; a sufficient identification of the property sold; such
8		other information as is required in Section 5-402 of the
9		Illinois Vehicle Code, and such other information as the
10		Department may reasonably require.
11		The transaction reporting return in the case of watercraft
12		and aircraft must show the name and address of the seller; the
13		name and address of the purchaser; the amount of the selling
14		price including the amount allowed by the retailer for
15		traded-in property, if any; the amount allowed by the retailer
16		for the traded-in tangible personal property, if any, to the
17		extent to which Section 2 of this Act allows an exemption for
18		the value of traded-in property; the balance payable after
19		deducting such trade-in allowance from the total selling
20		price; the amount of tax due from the retailer with respect to
21		such transaction; the amount of tax collected from the
22		purchaser by the retailer on such transaction (or satisfactory
23		evidence that such tax is not due in that particular instance,
24		if that is claimed to be the fact); the place and date of the
25		sale, a sufficient identification of the property sold, and
26		such other information as the Department may reasonably

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1		require.
2		Such transaction reporting return shall be filed not later
3		than 20 days after the date of delivery of the item that is
4		being sold, but may be filed by the retailer at any time sooner
5		than that if he chooses to do so. The transaction reporting
6		return and tax remittance or proof of exemption from the tax
7		that is imposed by this Act may be transmitted to the
8		Department by way of the State agency with which, or State
9		officer with whom, the tangible personal property must be
10		titled or registered (if titling or registration is required)
11		if the Department and such agency or State officer determine
12		that this procedure will expedite the processing of
13		applications for title or registration.
14		With each such transaction reporting return, the retailer
15		shall remit the proper amount of tax due (or shall submit
16		satisfactory evidence that the sale is not taxable if that is
17		the case), to the Department or its agents, whereupon the
18		Department shall issue, in the purchaser's name, a tax receipt
19		(or a certificate of exemption if the Department is satisfied
20		that the particular sale is tax exempt) which such purchaser
21		may submit to the agency with which, or State officer with
22		whom, he must title or register the tangible personal property
23		that is involved (if titling or registration is required) in
24		support of such purchaser's application for an Illinois
25		certificate or other evidence of title or registration to such
26		tangible personal property.

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1		No retailer's failure or refusal to remit tax under this
2		Act precludes a user, who has paid the proper tax to the
3		retailer, from obtaining his certificate of title or other
4		evidence of title or registration (if titling or registration
5		is required) upon satisfying the Department that such user has
6		paid the proper tax (if tax is due) to the retailer. The
7		Department shall adopt appropriate rules to carry out the
8		mandate of this paragraph.
9		If the user who would otherwise pay tax to the retailer
10		wants the transaction reporting return filed and the payment
11		of tax or proof of exemption made to the Department before the
12		retailer is willing to take these actions and such user has not
13		paid the tax to the retailer, such user may certify to the fact
14		of such delay by the retailer, and may (upon the Department
15		being satisfied of the truth of such certification) transmit
16		the information required by the transaction reporting return
17		and the remittance for tax or proof of exemption directly to
18		the Department and obtain his tax receipt or exemption
19		determination, in which event the transaction reporting return
20		and tax remittance (if a tax payment was required) shall be
21		credited by the Department to the proper retailer's account
22		with the Department, but without the 2.1% or 1.75% discount
23		provided for in this Section being allowed. When the user pays
24		the tax directly to the Department, he shall pay the tax in the
25		same amount and in the same form in which it would be remitted
26		if the tax had been remitted to the Department by the retailer.

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

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1		return which will enable retailers, who are required to file
2		returns hereunder and also under the Retailers' Occupation Tax
3		Act, to furnish all the return information required by both
4		Acts on the one form.
5		Where the retailer has more than one business registered
6		with the Department under separate registration under this
7		Act, such retailer may not file each return that is due as a
8		single return covering all such registered businesses, but
9		shall file separate returns for each such registered business.
10		Beginning January 1, 1990, each month the Department shall
11		pay into the State and Local Sales Tax Reform Fund, a special
12		fund in the State Treasury which is hereby created, the net
13		revenue realized for the preceding month from the 1% tax
14		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		net revenue realized for the preceding month from the 6.25%
18		general rate on the selling price of tangible personal
19		property which is purchased outside Illinois at retail from a
20		retailer and which is titled or registered by an agency of this
21		State's government.
22		Beginning January 1, 1990, each month the Department shall
23		pay into the State and Local Sales Tax Reform Fund, a special
24		fund in the State Treasury, 20% of the net revenue realized for
25		the preceding month from the 6.25% general rate on the selling
26		price of tangible personal property, other than (i) tangible

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1		personal property which is purchased outside Illinois at
2		retail from a retailer and which is titled or registered by an
3		agency of this State's government and (ii) aviation fuel sold
4		on or after December 1, 2019. This exception for aviation fuel
5		only applies for so long as the revenue use requirements of 49
6		U.S.C. 47107(b) and 49 U.S.C. 47133 are 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 Fuels 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 State and Local Sales Tax Reform Fund 100% 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 3-6, is imposed at the rate of 1.25%, then the
25		Department shall pay 100% of the net revenue realized for that
26		month from the 1.25% rate on the selling price of sales tax

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

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

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

HB4951 Enrolled - 370 - LRB103 38094 HLH 68226 b
1		that the amounts payable into the Build Illinois Fund under
2		this clause (b) shall be payable only until such time as the
3		aggregate amount on deposit under each trust indenture
4		securing Bonds issued and outstanding pursuant to the Build
5		Illinois Bond Act is sufficient, taking into account any
6		future investment income, to fully provide, in accordance with
7		such indenture, for the defeasance of or the payment of the
8		principal of, premium, if any, and interest on the Bonds
9		secured by such indenture and on any Bonds expected to be
10		issued thereafter and all fees and costs payable with respect
11		thereto, all as certified by the Director of the Bureau of the
12		Budget (now Governor's Office of Management and Budget). If on
13		the last business day of any month in which Bonds are
14		outstanding pursuant to the Build Illinois Bond Act, the
15		aggregate of the moneys deposited in the Build Illinois Bond
16		Account in the Build Illinois Fund in such month shall be less
17		than the amount required to be transferred in such month from
18		the Build Illinois Bond Account to the Build Illinois Bond
19		Retirement and Interest Fund pursuant to Section 13 of the
20		Build Illinois Bond Act, an amount equal to such deficiency
21		shall be immediately paid from other moneys received by the
22		Department pursuant to the Tax Acts to the Build Illinois
23		Fund; provided, however, that any amounts paid to the Build
24		Illinois Fund in any fiscal year pursuant to this sentence
25		shall be deemed to constitute payments pursuant to clause (b)
26		of the preceding sentence and shall reduce the amount

HB4951 Enrolled - 371 - LRB103 38094 HLH 68226 b
1		otherwise payable for such fiscal year pursuant to clause (b)
2		of the preceding sentence. The moneys received by the
3		Department pursuant to this Act and required to be deposited
4		into the Build Illinois Fund are subject to the pledge, claim
5		and charge set forth in Section 12 of the Build Illinois Bond
6		Act.
7		Subject to payment of amounts into the Build Illinois Fund
8		as provided in the preceding paragraph or in any amendment
9		thereto hereafter enacted, the following specified monthly
10		installment of the amount requested in the certificate of the
11		Chairman of the Metropolitan Pier and Exposition Authority
12		provided under Section 8.25f of the State Finance Act, but not
13		in excess of the sums designated as "Total Deposit", shall be
14		deposited in the aggregate from collections under Section 9 of
15		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
16		9 of the Service Occupation Tax Act, and Section 3 of the
17		Retailers' Occupation Tax Act into the McCormick Place
18		Expansion Project Fund in the specified fiscal years.
19 Fiscal Year Total Deposit 20 1993 $0 21 1994 53,000,000 22 1995 58,000,000 23 1996 61,000,000 24 1997 64,000,000 25 1998 68,000,000 26 1999 71,000,000

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1 2000 75,000,000 2 2001 80,000,000 3 2002 93,000,000 4 2003 99,000,000 5 2004 103,000,000 6 2005 108,000,000 7 2006 113,000,000 8 2007 119,000,000 9 2008 126,000,000 10 2009 132,000,000 11 2010 139,000,000 12 2011 146,000,000 13 2012 153,000,000 14 2013 161,000,000 15 2014 170,000,000 16 2015 179,000,000 17 2016 189,000,000 18 2017 199,000,000 19 2018 210,000,000 20 2019 221,000,000 21 2020 233,000,000 22 2021 300,000,000 23 2022 300,000,000 24 2023 300,000,000 25 2024 300,000,000 26 2025 300,000,000

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1 2026 300,000,000 2 2027 375,000,000 3 2028 375,000,000 4 2029 375,000,000 5 2030 375,000,000 6 2031 375,000,000 7 2032 375,000,000 8 2033 375,000,000 9 2034 375,000,000 10 2035 375,000,000 11 2036 450,000,000 12 and 13 each fiscal year 14 thereafter that bonds 15 are outstanding under 16 Section 13.2 of the 17 Metropolitan Pier and 18 Exposition Authority Act, 19 but not after fiscal year 2060.
20		Beginning July 20, 1993 and in each month of each fiscal
21		year thereafter, one-eighth of the amount requested in the
22		certificate of the Chairman of the Metropolitan Pier and
23		Exposition Authority for that fiscal year, less the amount
24		deposited into the McCormick Place Expansion Project Fund by
25		the State Treasurer in the respective month under subsection
26		(g) of Section 13 of the Metropolitan Pier and Exposition

HB4951 Enrolled - 374 - LRB103 38094 HLH 68226 b
1		Authority Act, plus cumulative deficiencies in the deposits
2		required under this Section for previous months and years,
3		shall be deposited into the McCormick Place Expansion Project
4		Fund, until the full amount requested for the fiscal year, but
5		not in excess of the amount specified above as "Total
6		Deposit", has been deposited.
7		Subject to payment of amounts into the Capital Projects
8		Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
9		and the McCormick Place Expansion Project Fund pursuant to the
10		preceding paragraphs or in any amendments thereto hereafter
11		enacted, for aviation fuel sold on or after December 1, 2019,
12		the Department shall each month deposit into the Aviation Fuel
13		Sales Tax Refund Fund an amount estimated by the Department to
14		be required for refunds of the 80% portion of the tax on
15		aviation fuel under this Act. The Department shall only
16		deposit moneys into the Aviation Fuel Sales Tax Refund Fund
17		under this paragraph for so long as the revenue use
18		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
19		binding on the State.
20		Subject to payment of amounts into 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, beginning July 1, 1993 and ending on September 30,
24		2013, the Department shall each month pay into the Illinois
25		Tax Increment Fund 0.27% of 80% of the net revenue realized for
26		the preceding month from the 6.25% general rate on the selling

HB4951 Enrolled - 375 - LRB103 38094 HLH 68226 b
1		price of tangible personal property.
2		Subject to payment of amounts into the Build Illinois
3		Fund, the McCormick Place Expansion Project Fund, the Illinois
4		Tax Increment Fund, and the Energy Infrastructure Fund
5		pursuant to the preceding paragraphs or in any amendments to
6		this Section hereafter enacted, beginning on the first day of
7		the first calendar month to occur on or after August 26, 2014
8		(the effective date of Public Act 98-1098), each month, from
9		the collections made under Section 9 of the Use Tax Act,
10		Section 9 of the Service Use Tax Act, Section 9 of the Service
11		Occupation Tax Act, and Section 3 of the Retailers' Occupation
12		Tax Act, the Department shall pay into the Tax Compliance and
13		Administration Fund, to be used, subject to appropriation, to
14		fund additional auditors and compliance personnel at the
15		Department of Revenue, an amount equal to 1/12 of 5% of 80% of
16		the cash receipts collected during the preceding fiscal year
17		by the Audit Bureau of the Department under the Use Tax Act,
18		the Service Use Tax Act, the Service Occupation Tax Act, the
19		Retailers' Occupation Tax Act, and associated local occupation
20		and use taxes administered by the Department.
21		Subject to payments of amounts into the Build Illinois
22		Fund, the McCormick Place Expansion Project Fund, the Illinois
23		Tax Increment Fund, and the Tax Compliance and Administration
24		Fund as provided in this Section, beginning on July 1, 2018 the
25		Department shall pay each month into the Downstate Public
26		Transportation Fund the moneys required to be so paid under

HB4951 Enrolled - 376 - LRB103 38094 HLH 68226 b
1		Section 2-3 of the Downstate Public Transportation Act.
2		Subject to successful execution and delivery of a
3		public-private agreement between the public agency and private
4		entity and completion of the civic build, beginning on July 1,
5		2023, of the remainder of the moneys received by the
6		Department under the Use Tax Act, the Service Use Tax Act, the
7		Service Occupation Tax Act, and this Act, the Department shall
8		deposit the following specified deposits in the aggregate from
9		collections under the Use Tax Act, the Service Use Tax Act, the
10		Service Occupation Tax Act, and the Retailers' Occupation Tax
11		Act, as required under Section 8.25g of the State Finance Act
12		for distribution consistent with the Public-Private
13		Partnership for Civic and Transit Infrastructure Project Act.
14		The moneys received by the Department pursuant to this Act and
15		required to be deposited into the Civic and Transit
16		Infrastructure Fund are subject to the pledge, claim, and
17		charge set forth in Section 25-55 of the Public-Private
18		Partnership for Civic and Transit Infrastructure Project Act.
19		As used in this paragraph, "civic build", "private entity",
20		"public-private agreement", and "public agency" have the
21		meanings provided in Section 25-10 of the Public-Private
22		Partnership for Civic and Transit Infrastructure Project Act.
23		Fiscal Year............................Total Deposit
24		2024....................................$200,000,000
25		2025....................................$206,000,000
26		2026....................................$212,200,000

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1		2027....................................$218,500,000
2		2028....................................$225,100,000
3		2029....................................$288,700,000
4		2030....................................$298,900,000
5		2031....................................$309,300,000
6		2032....................................$320,100,000
7		2033....................................$331,200,000
8		2034....................................$341,200,000
9		2035....................................$351,400,000
10		2036....................................$361,900,000
11		2037....................................$372,800,000
12		2038....................................$384,000,000
13		2039....................................$395,500,000
14		2040....................................$407,400,000
15		2041....................................$419,600,000
16		2042....................................$432,200,000
17		2043....................................$445,100,000
18		Beginning July 1, 2021 and until July 1, 2022, subject to
19		the payment of amounts into the State and Local Sales Tax
20		Reform Fund, the Build Illinois Fund, the McCormick Place
21		Expansion Project Fund, the Illinois Tax Increment Fund, and
22		the Tax Compliance and Administration Fund as provided in this
23		Section, the Department shall pay each month into the Road
24		Fund the amount estimated to represent 16% of the net revenue
25		realized from the taxes imposed on motor fuel and gasohol.
26		Beginning July 1, 2022 and until July 1, 2023, subject to the

HB4951 Enrolled - 378 - LRB103 38094 HLH 68226 b
1		payment of amounts into the State and Local Sales Tax Reform
2		Fund, the Build Illinois Fund, the McCormick Place Expansion
3		Project Fund, the Illinois Tax Increment Fund, and the Tax
4		Compliance and Administration Fund as provided in this
5		Section, the Department shall pay each month into the Road
6		Fund the amount estimated to represent 32% of the net revenue
7		realized from the taxes imposed on motor fuel and gasohol.
8		Beginning July 1, 2023 and until July 1, 2024, subject to the
9		payment of amounts into the State and Local Sales Tax Reform
10		Fund, the Build Illinois Fund, the McCormick Place Expansion
11		Project Fund, the Illinois Tax Increment Fund, and the Tax
12		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 48% of the net revenue
15		realized from the taxes imposed on motor fuel and gasohol.
16		Beginning July 1, 2024 and until July 1, 2025, 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 64% of the net revenue
23		realized from the taxes imposed on motor fuel and gasohol.
24		Beginning on July 1, 2025, subject to the payment of amounts
25		into the State and Local Sales Tax Reform Fund, the Build
26		Illinois Fund, the McCormick Place Expansion Project Fund, the

HB4951 Enrolled - 379 - LRB103 38094 HLH 68226 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 80% of the net revenue realized from
5		the taxes imposed on motor fuel and gasohol. As used in this
6		paragraph "motor fuel" has the meaning given to that term in
7		Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
8		meaning given to that term in Section 3-40 of this Act.
9		Of the remainder of the moneys received by the Department
10		pursuant to this Act, 75% thereof shall be paid into the State
11		Treasury and 25% shall be reserved in a special account and
12		used only for the transfer to the Common School Fund as part of
13		the monthly transfer from the General Revenue Fund in
14		accordance with Section 8a of the State Finance Act.
15		As soon as possible after the first day of each month, upon
16		certification of the Department of Revenue, the Comptroller
17		shall order transferred and the Treasurer shall transfer from
18		the General Revenue Fund to the Motor Fuel Tax Fund an amount
19		equal to 1.7% of 80% of the net revenue realized under this Act
20		for the second preceding month. Beginning April 1, 2000, this
21		transfer is no longer required and shall not be made.
22		Net revenue realized for a month shall be the revenue
23		collected by the State pursuant to this Act, less the amount
24		paid out during that month as refunds to taxpayers for
25		overpayment of liability.
26		For greater simplicity of administration, manufacturers,

HB4951 Enrolled - 380 - LRB103 38094 HLH 68226 b
1		importers and wholesalers whose products are sold at retail in
2		Illinois by numerous retailers, and who wish to do so, may
3		assume the responsibility for accounting and paying to the
4		Department all tax accruing under this Act with respect to
5		such sales, if the retailers who are affected do not make
6		written objection to the Department to this arrangement.
7		(Source: P.A. 102-700, Article 60, Section 60-15, eff.
8		4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
9		102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff.
10		7-28-23.)
11		Section 75-10. The Service Use Tax Act is amended by
12		changing Sections 2, 3, 3-5, 3-10, and 9 and by adding Section
13		1.05 as follows:
14		(35 ILCS 110/1.05 new)
15		Sec. 1.05. Legislative intent; leases. It is the intent of
16		the General Assembly in enacting this amendatory Act of the
17		103rd General Assembly to apply the tax imposed under this
18		Act, except as otherwise provided in this Act, to the
19		privilege of using tangible personal property, other than
20		motor vehicles, watercraft, aircraft, and semitrailers, as
21		defined in Section 1-187 of the Illinois Vehicle Code, that
22		are required to be registered with an agency of this State,
23		transferred by lease, as an incident of a purchase of service,
24		for leases in effect, entered into, or renewed on or after

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1		January 1, 2025.
2		(35 ILCS 110/2) (from Ch. 120, par. 439.32)
3		Sec. 2. Definitions. In this Act:
4		"Use" means the exercise by any person of any right or
5		power over tangible personal property incident to the
6		ownership of that property, or, on and after January 1, 2025,
7		incident to the possession or control of, the right to possess
8		or control, or a license to use that property through a lease,
9		but does not include the sale or use for demonstration by him
10		of that property in any form as tangible personal property in
11		the regular course of business. "Use" does not mean the
12		interim use of tangible personal property. On and after
13		January 1, 2025, the lease of tangible personal property to a
14		lessee by a serviceman who is subject to tax on lease receipts
15		under this amendatory Act of the 103rd General Assembly does
16		not qualify as demonstration use or interim use of that
17		property. "Use" does not mean nor the physical incorporation
18		of tangible personal property, as an ingredient or
19		constituent, into other tangible personal property, (a) which
20		is sold in the regular course of business or (b) which the
21		person incorporating such ingredient or constituent therein
22		has undertaken at the time of such purchase to cause to be
23		transported in interstate commerce to destinations outside the
24		State of Illinois.
25		"Lease" means a transfer of the possession or control of,

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1		the right to possess or control, or a license to use, but not
2		title to, tangible personal property for a fixed or
3		indeterminate term for consideration, regardless of the name
4		by which the transaction is called. "Lease" does not include a
5		lease entered into merely as a security agreement that does
6		not involve a transfer of possession from the lessor to the
7		lessee.
8		On and after January 1, 2025, the term "sale", when used in
9		this Act with respect to tangible personal property, includes
10		a lease.
11		"Purchased from a serviceman" means the acquisition of the
12		ownership of, the or title to, the possession or control of,
13		the right to possess or control, or a license to use, tangible
14		personal property through a sale of service.
15		"Purchaser" means any person who, through a sale of
16		service, acquires the ownership of, the or title to, the
17		possession or control of, the right to possess or control, or a
18		license to use, any tangible personal property.
19		"Cost price" means the consideration paid by the
20		serviceman for a purchase, including, on and after January 1,
21		2025, a lease, valued in money, whether paid in money or
22		otherwise, including cash, credits and services, and shall be
23		determined without any deduction on account of the supplier's
24		cost of the property sold or on account of any other expense
25		incurred by the supplier. When a serviceman contracts out part
26		or all of the services required in his sale of service, it

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1		shall be presumed that the cost price to the serviceman of the
2		property transferred to him or her by his or her subcontractor
3		is equal to 50% of the subcontractor's charges to the
4		serviceman in the absence of proof of the consideration paid
5		by the subcontractor for the purchase of such property.
6		"Selling price" means the consideration for a sale,
7		including, on and after January 1, 2025, a lease, valued in
8		money whether received in money or otherwise, including cash,
9		credits and service, and shall be determined without any
10		deduction on account of the serviceman's cost of the property
11		sold, the cost of materials used, labor or service cost or any
12		other expense whatsoever, but does not include interest or
13		finance charges which appear as separate items on the bill of
14		sale or sales contract nor charges that are added to prices by
15		sellers on account of the seller's duty to collect, from the
16		purchaser, the tax that is imposed by this Act.
17		"Department" means the Department of Revenue.
18		"Person" means any natural individual, firm, partnership,
19		association, joint stock company, joint venture, public or
20		private corporation, limited liability company, and any
21		receiver, executor, trustee, guardian or other representative
22		appointed by order of any court.
23		"Sale of service" means any transaction except:
24		(1) a retail sale of tangible personal property
25		taxable under the Retailers' Occupation Tax Act or under
26		the Use Tax Act.

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1		(2) a sale of tangible personal property for the
2		purpose of resale made in compliance with Section 2c of
3		the Retailers' Occupation Tax Act.
4		(3) except as hereinafter provided, a sale or transfer
5		of tangible personal property as an incident to the
6		rendering of service for or by any governmental body, or
7		for or by any corporation, society, association,
8		foundation or institution organized and operated
9		exclusively for charitable, religious or educational
10		purposes or any not-for-profit corporation, society,
11		association, foundation, institution or organization which
12		has no compensated officers or employees and which is
13		organized and operated primarily for the recreation of
14		persons 55 years of age or older. A limited liability
15		company may qualify for the exemption under this paragraph
16		only if the limited liability company is organized and
17		operated exclusively for educational purposes.
18		(4) (blank).
19		(4a) a sale or transfer of tangible personal property
20		as an incident to the rendering of service for owners or ,
21		lessors, lessees, or shippers of tangible personal
22		property which is utilized by interstate carriers for hire
23		for use as rolling stock moving in interstate commerce so
24		long as so used by interstate carriers for hire, and
25		equipment operated by a telecommunications provider,
26		licensed as a common carrier by the Federal Communications

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1		Commission, which is permanently installed in or affixed
2		to aircraft moving in interstate commerce.
3		(4a-5) on and after July 1, 2003 and through June 30,
4		2004, a sale or transfer of a motor vehicle of the second
5		division with a gross vehicle weight in excess of 8,000
6		pounds as an incident to the rendering of service if that
7		motor vehicle is subject to the commercial distribution
8		fee imposed under Section 3-815.1 of the Illinois Vehicle
9		Code. Beginning on July 1, 2004 and through June 30, 2005,
10		the use in this State of motor vehicles of the second
11		division: (i) with a gross vehicle weight rating in excess
12		of 8,000 pounds; (ii) that are subject to the commercial
13		distribution fee imposed under Section 3-815.1 of the
14		Illinois Vehicle Code; and (iii) that are primarily used
15		for commercial purposes. Through June 30, 2005, this
16		exemption applies to repair and replacement parts added
17		after the initial purchase of such a motor vehicle if that
18		motor vehicle is used in a manner that would qualify for
19		the rolling stock exemption otherwise provided for in this
20		Act. For purposes of this paragraph, "used for commercial
21		purposes" means the transportation of persons or property
22		in furtherance of any commercial or industrial enterprise
23		whether for-hire or not.
24		(5) a sale or transfer of machinery and equipment used
25		primarily in the process of the manufacturing or
26		assembling, either in an existing, an expanded or a new

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1		manufacturing facility, of tangible personal property for
2		wholesale or retail sale or lease, whether such sale or
3		lease is made directly by the manufacturer or by some
4		other person, whether the materials used in the process
5		are owned by the manufacturer or some other person, or
6		whether such sale or lease is made apart from or as an
7		incident to the seller's engaging in a service occupation
8		and the applicable tax is a Service Use Tax or Service
9		Occupation Tax, rather than Use Tax or Retailers'
10		Occupation Tax. The exemption provided by this paragraph
11		(5) includes production related tangible personal
12		property, as defined in Section 3-50 of the Use Tax Act,
13		purchased on or after July 1, 2019. The exemption provided
14		by this paragraph (5) does not include machinery and
15		equipment used in (i) the generation of electricity for
16		wholesale or retail sale; (ii) the generation or treatment
17		of natural or artificial gas for wholesale or retail sale
18		that is delivered to customers through pipes, pipelines,
19		or mains; or (iii) the treatment of water for wholesale or
20		retail sale that is delivered to customers through pipes,
21		pipelines, or mains. The provisions of Public Act 98-583
22		are declaratory of existing law as to the meaning and
23		scope of this exemption. The exemption under this
24		paragraph (5) is exempt from the provisions of Section
25		3-75.
26		(5a) the repairing, reconditioning or remodeling, for

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1		a common carrier by rail, of tangible personal property
2		which belongs to such carrier for hire, and as to which
3		such carrier receives the physical possession of the
4		repaired, reconditioned or remodeled item of tangible
5		personal property in Illinois, and which such carrier
6		transports, or shares with another common carrier in the
7		transportation of such property, out of Illinois on a
8		standard uniform bill of lading showing the person who
9		repaired, reconditioned or remodeled the property to a
10		destination outside Illinois, for use outside Illinois.
11		(5b) a sale or transfer of tangible personal property
12		which is produced by the seller thereof on special order
13		in such a way as to have made the applicable tax the
14		Service Occupation Tax or the Service Use Tax, rather than
15		the Retailers' Occupation Tax or the Use Tax, for an
16		interstate carrier by rail which receives the physical
17		possession of such property in Illinois, and which
18		transports such property, or shares with another common
19		carrier in the transportation of such property, out of
20		Illinois on a standard uniform bill of lading showing the
21		seller of the property as the shipper or consignor of such
22		property to a destination outside Illinois, for use
23		outside Illinois.
24		(6) until July 1, 2003, a sale or transfer of
25		distillation machinery and equipment, sold as a unit or
26		kit and assembled or installed by the retailer, which

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1		machinery and equipment is certified by the user to be
2		used only for the production of ethyl alcohol that will be
3		used for consumption as motor fuel or as a component of
4		motor fuel for the personal use of such user and not
5		subject to sale or resale.
6		(7) at the election of any serviceman not required to
7		be otherwise registered as a retailer under Section 2a of
8		the Retailers' Occupation Tax Act, made for each fiscal
9		year sales of service in which the aggregate annual cost
10		price of tangible personal property transferred as an
11		incident to the sales of service is less than 35%, or 75%
12		in the case of servicemen transferring prescription drugs
13		or servicemen engaged in graphic arts production, of the
14		aggregate annual total gross receipts from all sales of
15		service. The purchase of such tangible personal property
16		by the serviceman shall be subject to tax under the
17		Retailers' Occupation Tax Act and the Use Tax Act.
18		However, if a primary serviceman who has made the election
19		described in this paragraph subcontracts service work to a
20		secondary serviceman who has also made the election
21		described in this paragraph, the primary serviceman does
22		not incur a Use Tax liability if the secondary serviceman
23		(i) has paid or will pay Use Tax on his or her cost price
24		of any tangible personal property transferred to the
25		primary serviceman and (ii) certifies that fact in writing
26		to the primary serviceman.

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1		Tangible personal property transferred incident to the
2		completion of a maintenance agreement is exempt from the tax
3		imposed pursuant to this Act.
4		Exemption (5) also includes machinery and equipment used
5		in the general maintenance or repair of such exempt machinery
6		and equipment or for in-house manufacture of exempt machinery
7		and equipment. On and after July 1, 2017, exemption (5) also
8		includes graphic arts machinery and equipment, as defined in
9		paragraph (5) of Section 3-5. The machinery and equipment
10		exemption does not include machinery and equipment used in (i)
11		the generation of electricity for wholesale or retail sale;
12		(ii) the generation or treatment of natural or artificial gas
13		for wholesale or retail sale that is delivered to customers
14		through pipes, pipelines, or mains; or (iii) the treatment of
15		water for wholesale or retail sale that is delivered to
16		customers through pipes, pipelines, or mains. The provisions
17		of Public Act 98-583 are declaratory of existing law as to the
18		meaning and scope of this exemption. For the purposes of
19		exemption (5), each of these terms shall have the following
20		meanings: (1) "manufacturing process" shall mean the
21		production of any article of tangible personal property,
22		whether such article is a finished product or an article for
23		use in the process of manufacturing or assembling a different
24		article of tangible personal property, by procedures commonly
25		regarded as manufacturing, processing, fabricating, or
26		refining which changes some existing material or materials

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1		into a material with a different form, use or name. In relation
2		to a recognized integrated business composed of a series of
3		operations which collectively constitute manufacturing, or
4		individually constitute manufacturing operations, the
5		manufacturing process shall be deemed to commence with the
6		first operation or stage of production in the series, and
7		shall not be deemed to end until the completion of the final
8		product in the last operation or stage of production in the
9		series; and further, for purposes of exemption (5),
10		photoprocessing is deemed to be a manufacturing process of
11		tangible personal property for wholesale or retail sale; (2)
12		"assembling process" shall mean the production of any article
13		of tangible personal property, whether such article is a
14		finished product or an article for use in the process of
15		manufacturing or assembling a different article of tangible
16		personal property, by the combination of existing materials in
17		a manner commonly regarded as assembling which results in a
18		material of a different form, use or name; (3) "machinery"
19		shall mean major mechanical machines or major components of
20		such machines contributing to a manufacturing or assembling
21		process; and (4) "equipment" shall include any independent
22		device or tool separate from any machinery but essential to an
23		integrated manufacturing or assembly process; including
24		computers used primarily in a manufacturer's computer assisted
25		design, computer assisted manufacturing (CAD/CAM) system; or
26		any subunit or assembly comprising a component of any

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1		machinery or auxiliary, adjunct or attachment parts of
2		machinery, such as tools, dies, jigs, fixtures, patterns and
3		molds; or any parts which require periodic replacement in the
4		course of normal operation; but shall not include hand tools.
5		Equipment includes chemicals or chemicals acting as catalysts
6		but only if the chemicals or chemicals acting as catalysts
7		effect a direct and immediate change upon a product being
8		manufactured or assembled for wholesale or retail sale or
9		lease. The purchaser of such machinery and equipment who has
10		an active resale registration number shall furnish such number
11		to the seller at the time of purchase. The purchaser of such
12		machinery and equipment and tools without an active resale
13		registration number shall prepare a certificate of exemption
14		stating facts establishing the exemption, which certificate
15		shall be available to the Department for inspection or audit.
16		The Department shall prescribe the form of the certificate.
17		Any informal rulings, opinions or letters issued by the
18		Department in response to an inquiry or request for any
19		opinion from any person regarding the coverage and
20		applicability of exemption (5) to specific devices shall be
21		published, maintained as a public record, and made available
22		for public inspection and copying. If the informal ruling,
23		opinion or letter contains trade secrets or other confidential
24		information, where possible the Department shall delete such
25		information prior to publication. Whenever such informal
26		rulings, opinions, or letters contain any policy of general

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1		applicability, the Department shall formulate and adopt such
2		policy as a rule in accordance with the provisions of the
3		Illinois Administrative Procedure Act.
4		On and after July 1, 1987, no entity otherwise eligible
5		under exemption (3) of this Section shall make tax-free
6		purchases unless it has an active exemption identification
7		number issued by the Department.
8		The purchase, employment and transfer of such tangible
9		personal property as newsprint and ink for the primary purpose
10		of conveying news (with or without other information) is not a
11		purchase, use or sale of service or of tangible personal
12		property within the meaning of this Act.
13		"Serviceman" means any person who is engaged in the
14		occupation of making sales of service.
15		"Sale at retail" means "sale at retail" as defined in the
16		Retailers' Occupation Tax Act, which, on and after January 1,
17		2025, is defined to include leases.
18		"Supplier" means any person who makes sales of tangible
19		personal property to servicemen for the purpose of resale as
20		an incident to a sale of service.
21		"Serviceman maintaining a place of business in this
22		State", or any like term, means and includes any serviceman:
23		(1) having or maintaining within this State, directly
24		or by a subsidiary, an office, distribution house, sales
25		house, warehouse or other place of business, or any agent
26		or other representative operating within this State under

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1		the authority of the serviceman or its subsidiary,
2		irrespective of whether such place of business or agent or
3		other representative is located here permanently or
4		temporarily, or whether such serviceman or subsidiary is
5		licensed to do business in this State;
6		(1.1) having a contract with a person located in this
7		State under which the person, for a commission or other
8		consideration based on the sale of service by the
9		serviceman, directly or indirectly refers potential
10		customers to the serviceman by providing to the potential
11		customers a promotional code or other mechanism that
12		allows the serviceman to track purchases referred by such
13		persons. Examples of mechanisms that allow the serviceman
14		to track purchases referred by such persons include but
15		are not limited to the use of a link on the person's
16		Internet website, promotional codes distributed through
17		the person's hand-delivered or mailed material, and
18		promotional codes distributed by the person through radio
19		or other broadcast media. The provisions of this paragraph
20		(1.1) shall apply only if the cumulative gross receipts
21		from sales of service by the serviceman to customers who
22		are referred to the serviceman by all persons in this
23		State under such contracts exceed $10,000 during the
24		preceding 4 quarterly periods ending on the last day of
25		March, June, September, and December; a serviceman meeting
26		the requirements of this paragraph (1.1) shall be presumed

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1		to be maintaining a place of business in this State but may
2		rebut this presumption by submitting proof that the
3		referrals or other activities pursued within this State by
4		such persons were not sufficient to meet the nexus
5		standards of the United States Constitution during the
6		preceding 4 quarterly periods;
7		(1.2) beginning July 1, 2011, having a contract with a
8		person located in this State under which:
9		(A) the serviceman sells the same or substantially
10		similar line of services as the person located in this
11		State and does so using an identical or substantially
12		similar name, trade name, or trademark as the person
13		located in this State; and
14		(B) the serviceman provides a commission or other
15		consideration to the person located in this State
16		based upon the sale of services by the serviceman.
17		The provisions of this paragraph (1.2) shall apply only if
18		the cumulative gross receipts from sales of service by the
19		serviceman to customers in this State under all such
20		contracts exceed $10,000 during the preceding 4 quarterly
21		periods ending on the last day of March, June, September,
22		and December;
23		(2) soliciting orders for tangible personal property
24		by means of a telecommunication or television shopping
25		system (which utilizes toll free numbers) which is
26		intended by the retailer to be broadcast by cable

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1		television or other means of broadcasting, to consumers
2		located in this State;
3		(3) pursuant to a contract with a broadcaster or
4		publisher located in this State, soliciting orders for
5		tangible personal property by means of advertising which
6		is disseminated primarily to consumers located in this
7		State and only secondarily to bordering jurisdictions;
8		(4) soliciting orders for tangible personal property
9		by mail if the solicitations are substantial and recurring
10		and if the retailer benefits from any banking, financing,
11		debt collection, telecommunication, or marketing
12		activities occurring in this State or benefits from the
13		location in this State of authorized installation,
14		servicing, or repair facilities;
15		(5) being owned or controlled by the same interests
16		which own or control any retailer engaging in business in
17		the same or similar line of business in this State;
18		(6) having a franchisee or licensee operating under
19		its trade name if the franchisee or licensee is required
20		to collect the tax under this Section;
21		(7) pursuant to a contract with a cable television
22		operator located in this State, soliciting orders for
23		tangible personal property by means of advertising which
24		is transmitted or distributed over a cable television
25		system in this State;
26		(8) engaging in activities in Illinois, which

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1		activities in the state in which the supply business
2		engaging in such activities is located would constitute
3		maintaining a place of business in that state; or
4		(9) beginning October 1, 2018, making sales of service
5		to purchasers in Illinois from outside of Illinois if:
6		(A) the cumulative gross receipts from sales of
7		service to purchasers in Illinois are $100,000 or
8		more; or
9		(B) the serviceman enters into 200 or more
10		separate transactions for sales of service to
11		purchasers in Illinois.
12		The serviceman shall determine on a quarterly basis,
13		ending on the last day of March, June, September, and
14		December, whether he or she meets the criteria of either
15		subparagraph (A) or (B) of this paragraph (9) for the
16		preceding 12-month period. If the serviceman meets the
17		criteria of either subparagraph (A) or (B) for a 12-month
18		period, he or she is considered a serviceman maintaining a
19		place of business in this State and is required to collect
20		and remit the tax imposed under this Act and file returns
21		for one year. At the end of that one-year period, the
22		serviceman shall determine whether the serviceman met the
23		criteria of either subparagraph (A) or (B) during the
24		preceding 12-month period. If the serviceman met the
25		criteria in either subparagraph (A) or (B) for the
26		preceding 12-month period, he or she is considered a

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1		serviceman maintaining a place of business in this State
2		and is required to collect and remit the tax imposed under
3		this Act and file returns for the subsequent year. If at
4		the end of a one-year period a serviceman that was
5		required to collect and remit the tax imposed under this
6		Act determines that he or she did not meet the criteria in
7		either subparagraph (A) or (B) during the preceding
8		12-month period, the serviceman subsequently shall
9		determine on a quarterly basis, ending on the last day of
10		March, June, September, and December, whether he or she
11		meets the criteria of either subparagraph (A) or (B) for
12		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		service to purchasers in Illinois that a serviceman makes
16		through a marketplace facilitator and for which the
17		serviceman 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 he
20		or she has met the thresholds of this paragraph (9).
21		(10) Beginning January 1, 2020, a marketplace
22		facilitator, as defined in Section 2d of this Act.
23		(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
24		100-587, eff. 6-4-18; 100-863, eff. 8-14-18; 101-9, Article
25		10, Section 10-15, eff. 6-5-19; 101-9, Article 25, Section
26		25-10, eff. 6-5-19; 101-604, eff. 12-13-19.)

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1		(35 ILCS 110/3) (from Ch. 120, par. 439.33)
2		Sec. 3. Tax imposed. A tax is imposed upon the privilege of
3		using in this State real or tangible personal property
4		acquired, which, on and after January 1, 2025, includes
5		tangible personal property acquired through a lease, as an
6		incident to the purchase of a service from a serviceman,
7		including computer software, and including photographs,
8		negatives, and positives that are the product of
9		photoprocessing, but not including products of photoprocessing
10		produced for use in motion pictures for public commercial
11		exhibition. Beginning January 1, 2001, prepaid telephone
12		calling arrangements shall be considered tangible personal
13		property subject to the tax imposed under this Act regardless
14		of the form in which those arrangements may be embodied,
15		transmitted, or fixed by any method now known or hereafter
16		developed. Purchases of (1) electricity delivered to customers
17		by wire; (2) natural or artificial gas that is delivered to
18		customers through pipes, pipelines, or mains; and (3) water
19		that is delivered to customers through pipes, pipelines, or
20		mains are not subject to tax under this Act. The provisions of
21		this amendatory Act of the 98th General Assembly are
22		declaratory of existing law as to the meaning and scope of this
23		Act.
24		The imposition of the tax under this Act on leases applies
25		to leases of tangible personal property in effect, entered

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1		into, or renewed on or after January 1, 2025. In the case of
2		leases, except as otherwise provided in this Act, the
3		serviceman who is a lessor, in collecting the tax, may collect
4		for each tax return period only the tax applicable to that part
5		of the selling price actually received during such tax return
6		period.
7		(Source: P.A. 98-583, eff. 1-1-14.)
8		(35 ILCS 110/3-5)
9		Sec. 3-5. Exemptions. Use of the following tangible
10		personal property is exempt from the tax imposed by this Act:
11		(1) Personal property purchased from a corporation,
12		society, association, foundation, institution, or
13		organization, other than a limited liability company, that is
14		organized and operated as a not-for-profit service enterprise
15		for the benefit of persons 65 years of age or older if the
16		personal property was not purchased by the enterprise for the
17		purpose of resale by the enterprise.
18		(2) Personal property purchased by a non-profit Illinois
19		county fair association for use in conducting, operating, or
20		promoting the county fair.
21		(3) Personal property purchased by a not-for-profit arts
22		or cultural organization that establishes, by proof required
23		by the Department by rule, that it has received an exemption
24		under Section 501(c)(3) of the Internal Revenue Code and that
25		is organized and operated primarily for the presentation or

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1		support of arts or cultural programming, activities, or
2		services. These organizations include, but are not limited to,
3		music and dramatic arts organizations such as symphony
4		orchestras and theatrical groups, arts and cultural service
5		organizations, local arts councils, visual arts organizations,
6		and media arts organizations. On and after July 1, 2001 (the
7		effective date of Public Act 92-35), however, an entity
8		otherwise eligible for this exemption shall not make tax-free
9		purchases unless it has an active identification number issued
10		by the Department.
11		(4) Legal tender, currency, medallions, or gold or silver
12		coinage issued by the State of Illinois, the government of the
13		United States of America, or the government of any foreign
14		country, and bullion.
15		(5) Until July 1, 2003 and beginning again on September 1,
16		2004 through August 30, 2014, graphic arts machinery and
17		equipment, including repair and replacement parts, both new
18		and used, and including that manufactured on special order or
19		purchased for lease, certified by the purchaser to be used
20		primarily for graphic arts production. Equipment includes
21		chemicals or chemicals acting as catalysts but only if the
22		chemicals or chemicals acting as catalysts effect a direct and
23		immediate change upon a graphic arts product. Beginning on
24		July 1, 2017, graphic arts machinery and equipment is included
25		in the manufacturing and assembling machinery and equipment
26		exemption under Section 2 of this Act.

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1		(6) Personal property purchased from a teacher-sponsored
2		student organization affiliated with an elementary or
3		secondary school located in Illinois.
4		(7) Farm machinery and equipment, both new and used,
5		including that manufactured on special order, certified by the
6		purchaser to be used primarily for production agriculture or
7		State or federal agricultural programs, including individual
8		replacement parts for the machinery and equipment, including
9		machinery and equipment purchased for lease, and including
10		implements of husbandry defined in Section 1-130 of the
11		Illinois Vehicle Code, farm machinery and agricultural
12		chemical and fertilizer spreaders, and nurse wagons required
13		to be registered under Section 3-809 of the Illinois Vehicle
14		Code, but excluding other motor vehicles required to be
15		registered under the Illinois Vehicle Code. Horticultural
16		polyhouses or hoop houses used for propagating, growing, or
17		overwintering plants shall be considered farm machinery and
18		equipment under this item (7). Agricultural chemical tender
19		tanks and dry boxes shall include units sold separately from a
20		motor vehicle required to be licensed and units sold mounted
21		on a motor vehicle required to be licensed if the selling price
22		of the tender is separately stated.
23		Farm machinery and equipment shall include precision
24		farming equipment that is installed or purchased to be
25		installed on farm machinery and equipment, including, but not
26		limited to, tractors, harvesters, sprayers, planters, seeders,

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1		or spreaders. Precision farming equipment includes, but is not
2		limited to, soil testing sensors, computers, monitors,
3		software, global positioning and mapping systems, and other
4		such equipment.
5		Farm machinery and equipment also includes computers,
6		sensors, software, and related equipment used primarily in the
7		computer-assisted operation of production agriculture
8		facilities, equipment, and activities such as, but not limited
9		to, the collection, monitoring, and correlation of animal and
10		crop data for the purpose of formulating animal diets and
11		agricultural chemicals.
12		Beginning on January 1, 2024, farm machinery and equipment
13		also includes electrical power generation equipment used
14		primarily for production agriculture.
15		This item (7) is exempt from the provisions of Section
16		3-75.
17		(8) Until June 30, 2013, fuel and petroleum products sold
18		to or used by an air common carrier, certified by the carrier
19		to be used for consumption, shipment, or storage in the
20		conduct of its business as an air common carrier, for a flight
21		destined for or returning from a location or locations outside
22		the United States without regard to previous or subsequent
23		domestic stopovers.
24		Beginning July 1, 2013, fuel and petroleum products sold
25		to or used by an air carrier, certified by the carrier to be
26		used for consumption, shipment, or storage in the conduct of

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1		its business as an air common carrier, for a flight that (i) is
2		engaged in foreign trade or is engaged in trade between the
3		United States and any of its possessions and (ii) transports
4		at least one individual or package for hire from the city of
5		origination to the city of final destination on the same
6		aircraft, without regard to a change in the flight number of
7		that aircraft.
8		(9) Proceeds of mandatory service charges separately
9		stated on customers' bills for the purchase and consumption of
10		food and beverages acquired as an incident to the purchase of a
11		service from a serviceman, to the extent that the proceeds of
12		the service charge are in fact turned over as tips or as a
13		substitute for tips to the employees who participate directly
14		in preparing, serving, hosting or cleaning up the food or
15		beverage function with respect to which the service charge is
16		imposed.
17		(10) Until July 1, 2003, oil field exploration, drilling,
18		and production equipment, including (i) rigs and parts of
19		rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
20		pipe and tubular goods, including casing and drill strings,
21		(iii) pumps and pump-jack units, (iv) storage tanks and flow
22		lines, (v) any individual replacement part for oil field
23		exploration, drilling, and production equipment, and (vi)
24		machinery and equipment purchased for lease; but excluding
25		motor vehicles required to be registered under the Illinois
26		Vehicle Code.

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1		(11) Proceeds from the sale of photoprocessing machinery
2		and equipment, including repair and replacement parts, both
3		new and used, including that manufactured on special order,
4		certified by the purchaser to be used primarily for
5		photoprocessing, and including photoprocessing machinery and
6		equipment purchased for lease.
7		(12) Until July 1, 2028, coal and aggregate exploration,
8		mining, off-highway hauling, processing, maintenance, and
9		reclamation equipment, including replacement parts and
10		equipment, and including equipment purchased for lease, but
11		excluding motor vehicles required to be registered under the
12		Illinois Vehicle Code. The changes made to this Section by
13		Public Act 97-767 apply on and after July 1, 2003, but no claim
14		for credit or refund is allowed on or after August 16, 2013
15		(the effective date of Public Act 98-456) for such taxes paid
16		during the period beginning July 1, 2003 and ending on August
17		16, 2013 (the effective date of Public Act 98-456).
18		(13) Semen used for artificial insemination of livestock
19		for direct agricultural production.
20		(14) Horses, or interests in horses, registered with and
21		meeting the requirements of any of the Arabian Horse Club
22		Registry of America, Appaloosa Horse Club, American Quarter
23		Horse Association, United States Trotting Association, or
24		Jockey Club, as appropriate, used for purposes of breeding or
25		racing for prizes. This item (14) is exempt from the
26		provisions of Section 3-75, and the exemption provided for

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1		under this item (14) applies for all periods beginning May 30,
2		1995, but no claim for credit or refund is allowed on or after
3		January 1, 2008 (the effective date of Public Act 95-88) for
4		such taxes paid during the period beginning May 30, 2000 and
5		ending on January 1, 2008 (the effective date of Public Act
6		95-88).
7		(15) Computers and communications equipment utilized for
8		any hospital purpose and equipment used in the diagnosis,
9		analysis, or treatment of hospital patients purchased by a
10		lessor who leases the equipment, under a lease of one year or
11		longer executed or in effect at the time the lessor would
12		otherwise be subject to the tax imposed by this Act, to a
13		hospital that has been issued an active tax exemption
14		identification number by the Department under Section 1g of
15		the Retailers' Occupation Tax Act. If the equipment is leased
16		in a manner that does not qualify for this exemption or is used
17		in any other non-exempt manner, the lessor shall be liable for
18		the tax imposed under this Act or the Use Tax Act, as the case
19		may be, based on the fair market value of the property at the
20		time the non-qualifying use occurs. No lessor shall collect or
21		attempt to collect an amount (however designated) that
22		purports to reimburse that lessor for the tax imposed by this
23		Act or the Use Tax Act, as the case may be, if the tax has not
24		been paid by the lessor. If a lessor improperly collects any
25		such amount from the lessee, the lessee shall have a legal
26		right to claim a refund of that amount from the lessor. If,

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1		however, that amount is not refunded to the lessee for any
2		reason, the lessor is liable to pay that amount to the
3		Department.
4		(16) Personal property purchased by a lessor who leases
5		the property, under a lease of one year or longer executed or
6		in effect at the time the lessor would otherwise be subject to
7		the tax imposed by this Act, to a governmental body that has
8		been issued an active tax exemption identification number by
9		the Department under Section 1g of the Retailers' Occupation
10		Tax Act. If the property is leased in a manner that does not
11		qualify for this exemption or is used in any other non-exempt
12		manner, the lessor shall be liable for the tax imposed under
13		this Act or the Use Tax Act, as the case may be, based on the
14		fair market value of the property at the time the
15		non-qualifying use occurs. No lessor shall collect or attempt
16		to collect an amount (however designated) that purports to
17		reimburse that lessor for the tax imposed by this Act or the
18		Use Tax Act, as the case may be, if the tax has not been paid
19		by the lessor. If a lessor improperly collects any such amount
20		from the lessee, the lessee shall have a legal right to claim a
21		refund of that amount from the lessor. If, however, that
22		amount is not refunded to the lessee for any reason, the lessor
23		is liable to pay that amount to the Department.
24		(17) Beginning with taxable years ending on or after
25		December 31, 1995 and ending with taxable years ending on or
26		before December 31, 2004, personal property that is donated

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1		for disaster relief to be used in a State or federally declared
2		disaster area in Illinois or bordering Illinois by a
3		manufacturer or retailer that is registered in this State to a
4		corporation, society, association, foundation, or institution
5		that has been issued a sales tax exemption identification
6		number by the Department that assists victims of the disaster
7		who reside within the declared disaster area.
8		(18) Beginning with taxable years ending on or after
9		December 31, 1995 and ending with taxable years ending on or
10		before December 31, 2004, personal property that is used in
11		the performance of infrastructure repairs in this State,
12		including, but not limited to, municipal roads and streets,
13		access roads, bridges, sidewalks, waste disposal systems,
14		water and sewer line extensions, water distribution and
15		purification facilities, storm water drainage and retention
16		facilities, and sewage treatment facilities, resulting from a
17		State or federally declared disaster in Illinois or bordering
18		Illinois when such repairs are initiated on facilities located
19		in the declared disaster area within 6 months after the
20		disaster.
21		(19) Beginning July 1, 1999, game or game birds purchased
22		at a "game breeding and hunting preserve area" as that term is
23		used in the Wildlife Code. This paragraph is exempt from the
24		provisions of Section 3-75.
25		(20) A motor vehicle, as that term is defined in Section
26		1-146 of the Illinois Vehicle Code, that is donated to a

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1		corporation, limited liability company, society, association,
2		foundation, or institution that is determined by the
3		Department to be organized and operated exclusively for
4		educational purposes. For purposes of this exemption, "a
5		corporation, limited liability company, society, association,
6		foundation, or institution organized and operated exclusively
7		for educational purposes" means all tax-supported public
8		schools, private schools that offer systematic instruction in
9		useful branches of learning by methods common to public
10		schools and that compare favorably in their scope and
11		intensity with the course of study presented in tax-supported
12		schools, and vocational or technical schools or institutes
13		organized and operated exclusively to provide a course of
14		study of not less than 6 weeks duration and designed to prepare
15		individuals to follow a trade or to pursue a manual,
16		technical, mechanical, industrial, business, or commercial
17		occupation.
18		(21) Beginning January 1, 2000, personal property,
19		including food, purchased through fundraising events for the
20		benefit of a public or private elementary or secondary school,
21		a group of those schools, or one or more school districts if
22		the events are sponsored by an entity recognized by the school
23		district that consists primarily of volunteers and includes
24		parents and teachers of the school children. This paragraph
25		does not apply to fundraising events (i) for the benefit of
26		private home instruction or (ii) for which the fundraising

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1		entity purchases the personal property sold at the events from
2		another individual or entity that sold the property for the
3		purpose of resale by the fundraising entity and that profits
4		from the sale to the fundraising entity. This paragraph is
5		exempt from the provisions of Section 3-75.
6		(22) Beginning January 1, 2000 and through December 31,
7		2001, new or used automatic vending machines that prepare and
8		serve hot food and beverages, including coffee, soup, and
9		other items, and replacement parts for these machines.
10		Beginning January 1, 2002 and through June 30, 2003, machines
11		and parts for machines used in commercial, coin-operated
12		amusement and vending business if a use or occupation tax is
13		paid on the gross receipts derived from the use of the
14		commercial, coin-operated amusement and vending machines. This
15		paragraph is exempt from the provisions of Section 3-75.
16		(23) Beginning August 23, 2001 and through June 30, 2016,
17		food for human consumption that is to be consumed off the
18		premises where it is sold (other than alcoholic beverages,
19		soft drinks, and food that has been prepared for immediate
20		consumption) and prescription and nonprescription medicines,
21		drugs, medical appliances, and insulin, urine testing
22		materials, syringes, and needles used by diabetics, for human
23		use, when purchased for use by a person receiving medical
24		assistance under Article V of the Illinois Public Aid Code who
25		resides in a licensed long-term care facility, as defined in
26		the Nursing Home Care Act, or in a licensed facility as defined

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1		in the ID/DD Community Care Act, the MC/DD Act, or the
2		Specialized Mental Health Rehabilitation Act of 2013.
3		(24) Beginning on August 2, 2001 (the effective date of
4		Public Act 92-227), computers and communications equipment
5		utilized for any hospital purpose and equipment used in the
6		diagnosis, analysis, or treatment of hospital patients
7		purchased by a lessor who leases the equipment, under a lease
8		of one year or longer executed or in effect at the time the
9		lessor would otherwise be subject to the tax imposed by this
10		Act, to a hospital that has been issued an active tax exemption
11		identification number by the Department under Section 1g of
12		the Retailers' Occupation Tax Act. If the equipment is leased
13		in a manner that does not qualify for this exemption or is used
14		in any other nonexempt manner, the lessor shall be liable for
15		the tax imposed under this Act or the Use Tax Act, as the case
16		may be, based on the fair market value of the property at the
17		time the nonqualifying use occurs. No lessor shall collect or
18		attempt to collect an amount (however designated) that
19		purports to reimburse that lessor for the tax imposed by this
20		Act or the Use Tax Act, as the case may be, if the tax has not
21		been paid by the lessor. If a lessor improperly collects any
22		such amount from the lessee, the lessee shall have a legal
23		right to claim a refund of that amount from the lessor. If,
24		however, that amount is not refunded to the lessee for any
25		reason, the lessor is liable to pay that amount to the
26		Department. This paragraph is exempt from the provisions of

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1		Section 3-75.
2		(25) Beginning on August 2, 2001 (the effective date of
3		Public Act 92-227), personal property purchased by a lessor
4		who leases the property, under a lease of one year or longer
5		executed or in effect at the time the lessor would otherwise be
6		subject to the tax imposed by this Act, to a governmental body
7		that has been issued an active tax exemption identification
8		number by the Department under Section 1g of the Retailers'
9		Occupation Tax Act. If the property is leased in a manner that
10		does not qualify for this exemption or is used in any other
11		nonexempt manner, the lessor shall be liable for the tax
12		imposed under this Act or the Use Tax Act, as the case may be,
13		based on the fair market value of the property at the time the
14		nonqualifying use occurs. No lessor shall collect or attempt
15		to collect an amount (however designated) that purports to
16		reimburse that lessor for the tax imposed by this Act or the
17		Use Tax Act, as the case may be, if the tax has not been paid
18		by the lessor. If a lessor improperly collects any such amount
19		from the lessee, the lessee shall have a legal right to claim a
20		refund of that amount from the lessor. If, however, that
21		amount is not refunded to the lessee for any reason, the lessor
22		is liable to pay that amount to the Department. This paragraph
23		is exempt from the provisions of Section 3-75.
24		(26) Beginning January 1, 2008, tangible personal property
25		used in the construction or maintenance of a community water
26		supply, as defined under Section 3.145 of the Environmental

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1		Protection Act, that is operated by a not-for-profit
2		corporation that holds a valid water supply permit issued
3		under Title IV of the Environmental Protection Act. This
4		paragraph is exempt from the provisions of Section 3-75.
5		(27) Beginning January 1, 2010 and continuing through
6		December 31, 2029, materials, parts, equipment, components,
7		and furnishings incorporated into or upon an aircraft as part
8		of the modification, refurbishment, completion, replacement,
9		repair, or maintenance of the aircraft. This exemption
10		includes consumable supplies used in the modification,
11		refurbishment, completion, replacement, repair, and
12		maintenance of aircraft. However, until January 1, 2024, this
13		exemption excludes any materials, parts, equipment,
14		components, and consumable supplies used in the modification,
15		replacement, repair, and maintenance of aircraft engines or
16		power plants, whether such engines or power plants are
17		installed or uninstalled upon any such aircraft. "Consumable
18		supplies" include, but are not limited to, adhesive, tape,
19		sandpaper, general purpose lubricants, cleaning solution,
20		latex gloves, and protective films.
21		Beginning January 1, 2010 and continuing through December
22		31, 2023, this exemption applies only to the use of qualifying
23		tangible personal property transferred incident to the
24		modification, refurbishment, completion, replacement, repair,
25		or maintenance of aircraft by persons who (i) hold an Air
26		Agency Certificate and are empowered to operate an approved

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1		repair station by the Federal Aviation Administration, (ii)
2		have a Class IV Rating, and (iii) conduct operations in
3		accordance with Part 145 of the Federal Aviation Regulations.
4		From January 1, 2024 through December 31, 2029, this exemption
5		applies only to the use of qualifying tangible personal
6		property by: (A) persons who modify, refurbish, complete,
7		repair, replace, or maintain aircraft and who (i) hold an Air
8		Agency Certificate and are empowered to operate an approved
9		repair station by the Federal Aviation Administration, (ii)
10		have a Class IV Rating, and (iii) conduct operations in
11		accordance with Part 145 of the Federal Aviation Regulations;
12		and (B) persons who engage in the modification, replacement,
13		repair, and maintenance of aircraft engines or power plants
14		without regard to whether or not those persons meet the
15		qualifications of item (A).
16		The exemption does not include aircraft operated by a
17		commercial air carrier providing scheduled passenger air
18		service pursuant to authority issued under Part 121 or Part
19		129 of the Federal Aviation Regulations. The changes made to
20		this paragraph (27) by Public Act 98-534 are declarative of
21		existing law. It is the intent of the General Assembly that the
22		exemption under this paragraph (27) applies continuously from
23		January 1, 2010 through December 31, 2024; however, no claim
24		for credit or refund is allowed for taxes paid as a result of
25		the disallowance of this exemption on or after January 1, 2015
26		and prior to February 5, 2020 (the effective date of Public Act

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1		101-629).
2		(28) Tangible personal property purchased by a
3		public-facilities corporation, as described in Section
4		11-65-10 of the Illinois Municipal Code, for purposes of
5		constructing or furnishing a municipal convention hall, but
6		only if the legal title to the municipal convention hall is
7		transferred to the municipality without any further
8		consideration by or on behalf of the municipality at the time
9		of the completion of the municipal convention hall or upon the
10		retirement or redemption of any bonds or other debt
11		instruments issued by the public-facilities corporation in
12		connection with the development of the municipal convention
13		hall. This exemption includes existing public-facilities
14		corporations as provided in Section 11-65-25 of the Illinois
15		Municipal Code. This paragraph is exempt from the provisions
16		of Section 3-75.
17		(29) Beginning January 1, 2017 and through December 31,
18		2026, menstrual pads, tampons, and menstrual cups.
19		(30) Tangible personal property transferred to a purchaser
20		who is exempt from the tax imposed by this Act by operation of
21		federal law. This paragraph is exempt from the provisions of
22		Section 3-75.
23		(31) Qualified tangible personal property used in the
24		construction or operation of a data center that has been
25		granted a certificate of exemption by the Department of
26		Commerce and Economic Opportunity, whether that tangible

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1		personal property is purchased by the owner, operator, or
2		tenant of the data center or by a contractor or subcontractor
3		of the owner, operator, or tenant. Data centers that would
4		have qualified for a certificate of exemption prior to January
5		1, 2020 had Public Act 101-31 been in effect, may apply for and
6		obtain an exemption for subsequent purchases of computer
7		equipment or enabling software purchased or leased to upgrade,
8		supplement, or replace computer equipment or enabling software
9		purchased or leased in the original investment that would have
10		qualified.
11		The Department of Commerce and Economic Opportunity shall
12		grant a certificate of exemption under this item (31) to
13		qualified data centers as defined by Section 605-1025 of the
14		Department of Commerce and Economic Opportunity Law of the
15		Civil Administrative Code of Illinois.
16		For the purposes of this item (31):
17		"Data center" means a building or a series of
18		buildings rehabilitated or constructed to house working
19		servers in one physical location or multiple sites within
20		the State of Illinois.
21		"Qualified tangible personal property" means:
22		electrical systems and equipment; climate control and
23		chilling equipment and systems; mechanical systems and
24		equipment; monitoring and secure systems; emergency
25		generators; hardware; computers; servers; data storage
26		devices; network connectivity equipment; racks; cabinets;

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1		telecommunications cabling infrastructure; raised floor
2		systems; peripheral components or systems; software;
3		mechanical, electrical, or plumbing systems; battery
4		systems; cooling systems and towers; temperature control
5		systems; other cabling; and other data center
6		infrastructure equipment and systems necessary to operate
7		qualified tangible personal property, including fixtures;
8		and component parts of any of the foregoing, including
9		installation, maintenance, repair, refurbishment, and
10		replacement of qualified tangible personal property to
11		generate, transform, transmit, distribute, or manage
12		electricity necessary to operate qualified tangible
13		personal property; and all other tangible personal
14		property that is essential to the operations of a computer
15		data center. The term "qualified tangible personal
16		property" also includes building materials physically
17		incorporated into in to the qualifying data center. To
18		document the exemption allowed under this Section, the
19		retailer must obtain from the purchaser a copy of the
20		certificate of eligibility issued by the Department of
21		Commerce and Economic Opportunity.
22		This item (31) is exempt from the provisions of Section
23		3-75.
24		(32) Beginning July 1, 2022, breast pumps, breast pump
25		collection and storage supplies, and breast pump kits. This
26		item (32) is exempt from the provisions of Section 3-75. As

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1		used in this item (32):
2		"Breast pump" means an electrically controlled or
3		manually controlled pump device designed or marketed to be
4		used to express milk from a human breast during lactation,
5		including the pump device and any battery, AC adapter, or
6		other power supply unit that is used to power the pump
7		device and is packaged and sold with the pump device at the
8		time of sale.
9		"Breast pump collection and storage supplies" means
10		items of tangible personal property designed or marketed
11		to be used in conjunction with a breast pump to collect
12		milk expressed from a human breast and to store collected
13		milk until it is ready for consumption.
14		"Breast pump collection and storage supplies"
15		includes, but is not limited to: breast shields and breast
16		shield connectors; breast pump tubes and tubing adapters;
17		breast pump valves and membranes; backflow protectors and
18		backflow protector adaptors; bottles and bottle caps
19		specific to the operation of the breast pump; and breast
20		milk storage bags.
21		"Breast pump collection and storage supplies" does not
22		include: (1) bottles and bottle caps not specific to the
23		operation of the breast pump; (2) breast pump travel bags
24		and other similar carrying accessories, including ice
25		packs, labels, and other similar products; (3) breast pump
26		cleaning supplies; (4) nursing bras, bra pads, breast

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1		shells, and other similar products; and (5) creams,
2		ointments, and other similar products that relieve
3		breastfeeding-related symptoms or conditions of the
4		breasts or nipples, unless sold as part of a breast pump
5		kit that is pre-packaged by the breast pump manufacturer
6		or distributor.
7		"Breast pump kit" means a kit that: (1) contains no
8		more than a breast pump, breast pump collection and
9		storage supplies, a rechargeable battery for operating the
10		breast pump, a breastmilk cooler, bottle stands, ice
11		packs, and a breast pump carrying case; and (2) is
12		pre-packaged as a breast pump kit by the breast pump
13		manufacturer or distributor.
14		(33) Tangible personal property sold by or on behalf of
15		the State Treasurer pursuant to the Revised Uniform Unclaimed
16		Property Act. This item (33) is exempt from the provisions of
17		Section 3-75.
18		(34) Beginning on January 1, 2024, tangible personal
19		property purchased by an active duty member of the armed
20		forces of the United States who presents valid military
21		identification and purchases the property using a form of
22		payment where the federal government is the payor. The member
23		of the armed forces must complete, at the point of sale, a form
24		prescribed by the Department of Revenue documenting that the
25		transaction is eligible for the exemption under this
26		paragraph. Retailers must keep the form as documentation of

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1		the exemption in their records for a period of not less than 6
2		years. "Armed forces of the United States" means the United
3		States Army, Navy, Air Force, Marine Corps, or Coast Guard.
4		This paragraph is exempt from the provisions of Section 3-75.
5		(35) Use by a lessee of the following leased tangible
6		personal property:
7		(1) software transferred subject to a license that
8		meets the following requirements:
9		(A) it is evidenced by a written agreement signed
10		by the licensor and the customer;
11		(i) an electronic agreement in which the
12		customer accepts the license by means of an
13		electronic signature that is verifiable and can be
14		authenticated and is attached to or made part of
15		the license will comply with this requirement;
16		(ii) a license agreement in which the customer
17		electronically accepts the terms by clicking "I
18		agree" does not comply with this requirement;
19		(B) it restricts the customer's duplication and
20		use of the software;
21		(C) it prohibits the customer from licensing,
22		sublicensing, or transferring the software to a third
23		party (except to a related party) without the
24		permission and continued control of the licensor;
25		(D) the licensor has a policy of providing another
26		copy at minimal or no charge if the customer loses or

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1		damages the software, or of permitting the licensee to
2		make and keep an archival copy, and such policy is
3		either stated in the license agreement, supported by
4		the licensor's books and records, or supported by a
5		notarized statement made under penalties of perjury by
6		the licensor; and
7		(E) the customer must destroy or return all copies
8		of the software to the licensor at the end of the
9		license period; this provision is deemed to be met, in
10		the case of a perpetual license, without being set
11		forth in the license agreement; and
12		(2) property that is subject to a tax on lease
13		receipts imposed by a home rule unit of local government
14		if the ordinance imposing that tax was adopted prior to
15		January 1, 2023.
16		(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
17		Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
18		75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
19		Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
20		eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
21		revised 12-12-23.)
22		(35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
23		Sec. 3-10. Rate of tax. Unless otherwise provided in this
24		Section, the tax imposed by this Act is at the rate of 6.25% of
25		the selling price of tangible personal property transferred,

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1		including, on and after January 1, 2025, transferred by lease,
2		as an incident to the sale of service, but, for the purpose of
3		computing this tax, in no event shall the selling price be less
4		than the cost price of the property to the serviceman.
5		Beginning on July 1, 2000 and through December 31, 2000,
6		with respect to motor fuel, as defined in Section 1.1 of the
7		Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8		the Use Tax Act, the tax is imposed at the rate of 1.25%.
9		With respect to gasohol, as defined in the Use Tax Act, the
10		tax imposed by this Act applies to (i) 70% of the selling price
11		of property transferred as an incident to the sale of service
12		on or after January 1, 1990, and before July 1, 2003, (ii) 80%
13		of the selling price of property transferred as an incident to
14		the sale of service on or after July 1, 2003 and on or before
15		July 1, 2017, (iii) 100% of the selling price of property
16		transferred as an incident to the sale of service after July 1,
17		2017 and before January 1, 2024, (iv) 90% of the selling price
18		of property transferred as an incident to the sale of service
19		on or after January 1, 2024 and on or before December 31, 2028,
20		and (v) 100% of the selling price of property transferred as an
21		incident to the sale of service after December 31, 2028. If, at
22		any time, however, the tax under this Act on sales of gasohol,
23		as defined in the Use Tax Act, is imposed at the rate of 1.25%,
24		then the tax imposed by this Act applies to 100% of the
25		proceeds of sales of gasohol made during that time.
26		With respect to mid-range ethanol blends, as defined in

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1		Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
2		applies to (i) 80% of the selling price of property
3		transferred as an incident to the sale of service on or after
4		January 1, 2024 and on or before December 31, 2028 and (ii)
5		100% of the selling price of property transferred as an
6		incident to the sale of service after December 31, 2028. If, at
7		any time, however, the tax under this Act on sales of mid-range
8		ethanol blends is imposed at the rate of 1.25%, then the tax
9		imposed by this Act applies to 100% of the selling price of
10		mid-range ethanol blends transferred as an incident to the
11		sale of service during that time.
12		With respect to majority blended ethanol fuel, as defined
13		in the Use Tax Act, the tax imposed by this Act does not apply
14		to the selling price of property transferred as an incident to
15		the sale of service on or after July 1, 2003 and on or before
16		December 31, 2028 but applies to 100% of the selling price
17		thereafter.
18		With respect to biodiesel blends, as defined in the Use
19		Tax Act, with no less than 1% and no more than 10% biodiesel,
20		the tax imposed by this Act applies to (i) 80% of the selling
21		price of property transferred as an incident to the sale of
22		service on or after July 1, 2003 and on or before December 31,
23		2018 and (ii) 100% of the proceeds of the selling price after
24		December 31, 2018 and before January 1, 2024. On and after
25		January 1, 2024 and on or before December 31, 2030, the
26		taxation of biodiesel, renewable diesel, and biodiesel blends

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1		shall be as provided in Section 3-5.1 of the Use Tax Act. If,
2		at any time, however, the tax under this Act on sales of
3		biodiesel blends, as defined in the Use Tax Act, with no less
4		than 1% and no more than 10% biodiesel is imposed at the rate
5		of 1.25%, then the tax imposed by this Act applies to 100% of
6		the proceeds of sales of biodiesel blends with no less than 1%
7		and no more than 10% biodiesel made during that time.
8		With respect to biodiesel, as defined in the Use Tax Act,
9		and biodiesel blends, as defined in the Use Tax Act, with more
10		than 10% but no more than 99% biodiesel, the tax imposed by
11		this Act does not apply to the proceeds of the selling price of
12		property transferred as an incident to the sale of service on
13		or after July 1, 2003 and on or before December 31, 2023. On
14		and after January 1, 2024 and on or before December 31, 2030,
15		the taxation of biodiesel, renewable diesel, and biodiesel
16		blends shall be as provided in Section 3-5.1 of the Use Tax
17		Act.
18		At the election of any registered serviceman made for each
19		fiscal year, sales of service in which the aggregate annual
20		cost price of tangible personal property transferred as an
21		incident to the sales of service is less than 35%, or 75% in
22		the case of servicemen transferring prescription drugs or
23		servicemen engaged in graphic arts production, of the
24		aggregate annual total gross receipts from all sales of
25		service, the tax imposed by this Act shall be based on the
26		serviceman's cost price of the tangible personal property

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

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1		Child Care Act of 1969, or an entity that holds a permit issued
2		pursuant to the Life Care Facilities Act. Beginning on July 1,
3		2022 and until July 1, 2023, the tax shall also be imposed at
4		the rate of 0% on 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, and food that has been prepared for
8		immediate consumption and is not otherwise included in this
9		paragraph).
10		The tax shall also be imposed at the rate of 1% on
11		prescription and nonprescription medicines, drugs, medical
12		appliances, products classified as Class III medical devices
13		by the United States Food and Drug Administration that are
14		used for cancer treatment pursuant to a prescription, as well
15		as any accessories and components related to those devices,
16		modifications to a motor vehicle for the purpose of rendering
17		it usable by a person with a disability, and insulin, blood
18		sugar testing materials, syringes, and needles used by human
19		diabetics. For the purposes of this Section, until September
20		1, 2009: the term "soft drinks" means any complete, finished,
21		ready-to-use, non-alcoholic drink, whether carbonated or not,
22		including, but not limited to, soda water, cola, fruit juice,
23		vegetable juice, carbonated water, and all other preparations
24		commonly known as soft drinks of whatever kind or description
25		that are contained in any closed or sealed bottle, can,
26		carton, or container, regardless of size; but "soft drinks"

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1		does not include coffee, tea, non-carbonated water, infant
2		formula, milk or milk products as defined in the Grade A
3		Pasteurized Milk and Milk Products Act, or drinks containing
4		50% or more natural fruit or vegetable juice.
5		Notwithstanding any other provisions of this Act,
6		beginning September 1, 2009, "soft drinks" means non-alcoholic
7		beverages that contain natural or artificial sweeteners. "Soft
8		drinks" does not include beverages that contain milk or milk
9		products, soy, rice or similar milk substitutes, or greater
10		than 50% of vegetable or fruit juice by volume.
11		Until August 1, 2009, and notwithstanding any other
12		provisions of this Act, "food for human consumption that is to
13		be consumed off the premises where it is sold" includes all
14		food sold through a vending machine, except soft drinks and
15		food products that are dispensed hot from a vending machine,
16		regardless of the location of the vending machine. Beginning
17		August 1, 2009, and notwithstanding any other provisions of
18		this Act, "food for human consumption that is to be consumed
19		off the premises where it is sold" includes all food sold
20		through a vending machine, except soft drinks, candy, and food
21		products that are dispensed hot from a vending machine,
22		regardless of the location of the vending machine.
23		Notwithstanding any other provisions of this Act,
24		beginning September 1, 2009, "food for human consumption that
25		is to be consumed off the premises where it is sold" does not
26		include candy. For purposes of this Section, "candy" means a

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1		preparation of sugar, honey, or other natural or artificial
2		sweeteners in combination with chocolate, fruits, nuts or
3		other ingredients or flavorings in the form of bars, drops, or
4		pieces. "Candy" does not include any preparation that contains
5		flour or requires refrigeration.
6		Notwithstanding any other provisions of this Act,
7		beginning September 1, 2009, "nonprescription medicines and
8		drugs" does not include grooming and hygiene products. For
9		purposes of this Section, "grooming and hygiene products"
10		includes, but is not limited to, soaps and cleaning solutions,
11		shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
12		lotions and screens, unless those products are available by
13		prescription only, regardless of whether the products meet the
14		definition of "over-the-counter-drugs". For the purposes of
15		this paragraph, "over-the-counter-drug" means a drug for human
16		use that contains a label that identifies the product as a drug
17		as required by 21 CFR 201.66. The "over-the-counter-drug"
18		label includes:
19		(A) a "Drug Facts" panel; or
20		(B) a statement of the "active ingredient(s)" with a
21		list of those ingredients contained in the compound,
22		substance or preparation.
23		Beginning on January 1, 2014 (the effective date of Public
24		Act 98-122), "prescription and nonprescription medicines and
25		drugs" includes medical cannabis purchased from a registered
26		dispensing organization under the Compassionate Use of Medical

HB4951 Enrolled - 428 - LRB103 38094 HLH 68226 b
1		Cannabis Program Act.
2		As used in this Section, "adult use cannabis" means
3		cannabis subject to tax under the Cannabis Cultivation
4		Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
5		and does not include cannabis subject to tax under the
6		Compassionate Use of Medical Cannabis Program Act.
7		If the property that is acquired from a serviceman is
8		acquired outside Illinois and used outside Illinois before
9		being brought to Illinois for use here and is taxable under
10		this Act, the "selling price" on which the tax is computed
11		shall be reduced by an amount that represents a reasonable
12		allowance for depreciation for the period of prior
13		out-of-state use. No depreciation is allowed in cases where
14		the tax under this Act is imposed on lease receipts.
15		(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
16		102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
17		Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
18		103-154, eff. 6-30-23.)
19		(35 ILCS 110/9) (from Ch. 120, par. 439.39)
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 (except as otherwise provided) at the time when he
23		is required to file his return for the period during which such
24		tax was collected, less a discount of 2.1% prior to January 1,
25		1990 and 1.75% on and after January 1, 1990, or $5 per calendar

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1		year, whichever is greater, which is allowed to reimburse the
2		serviceman for expenses incurred in collecting the tax,
3		keeping records, preparing and filing returns, remitting the
4		tax and supplying data to the Department on request. When
5		determining the discount allowed under this Section,
6		servicemen shall include the amount of tax that would have
7		been due at the 1% rate but for the 0% rate imposed under this
8		amendatory Act of the 102nd General Assembly. The discount
9		under this Section is not allowed for the 1.25% portion of
10		taxes paid on aviation fuel that is subject to the revenue use
11		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
12		discount allowed under this Section is allowed only for
13		returns that are filed in the manner required by this Act. The
14		Department may disallow the discount for servicemen whose
15		certificate of registration is revoked at the time the return
16		is filed, but only if the Department's decision to revoke the
17		certificate of registration has become final. A serviceman
18		need not remit that part of any tax collected by him to the
19		extent that he is required to pay and does pay the tax imposed
20		by the Service Occupation Tax Act with respect to his sale of
21		service involving the incidental transfer by him of the same
22		property.
23		Except as provided hereinafter in this Section, on or
24		before the twentieth day of each calendar month, such
25		serviceman shall file a return for the preceding calendar
26		month in accordance with reasonable Rules and Regulations to

HB4951 Enrolled - 430 - LRB103 38094 HLH 68226 b
1		be promulgated by the Department. Such return shall be filed
2		on a form prescribed by the Department and shall contain such
3		information as the Department may reasonably require. The
4		return shall include the gross receipts which were received
5		during the preceding calendar month or quarter on the
6		following items upon which tax would have been due but for the
7		0% rate imposed under this amendatory Act of the 102nd General
8		Assembly: (i) food for human consumption that is to be
9		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, and food that has been prepared for
12		immediate consumption); and (ii) food prepared for immediate
13		consumption and transferred incident to a sale of service
14		subject to this Act or the Service Occupation Tax Act by an
15		entity licensed under the Hospital Licensing Act, the Nursing
16		Home Care Act, the Assisted Living and Shared Housing Act, the
17		ID/DD Community Care Act, the MC/DD Act, the Specialized
18		Mental Health Rehabilitation Act of 2013, or the Child Care
19		Act of 1969, or an entity that holds a permit issued pursuant
20		to the Life Care Facilities Act. The return shall also include
21		the amount of tax that would have been due on the items listed
22		in the previous sentence but for the 0% rate imposed under this
23		amendatory Act of the 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

HB4951 Enrolled - 431 - LRB103 38094 HLH 68226 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;

HB4951 Enrolled - 432 - LRB103 38094 HLH 68226 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

HB4951 Enrolled - 433 - LRB103 38094 HLH 68226 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.

HB4951 Enrolled - 434 - LRB103 38094 HLH 68226 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 year
21		being due by April 20 of such year; with the return for April,
22		May and June of a given year being due by July 20 of such year;
23		with the return for July, August and September of a given year
24		being due by October 20 of such year, and with the return for
25		October, November and December of a given year being due by
26		January 20 of the following year.

HB4951 Enrolled - 435 - LRB103 38094 HLH 68226 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 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

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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, the net revenue realized for the preceding

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1		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

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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

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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

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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

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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

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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

HB4951 Enrolled - 443 - LRB103 38094 HLH 68226 b

1 2014 170,000,000 2 2015 179,000,000 3 2016 189,000,000 4 2017 199,000,000 5 2018 210,000,000 6 2019 221,000,000 7 2020 233,000,000 8 2021 300,000,000 9 2022 300,000,000 10 2023 300,000,000 11 2024 300,000,000 12 2025 300,000,000 13 2026 300,000,000 14 2027 375,000,000 15 2028 375,000,000 16 2029 375,000,000 17 2030 375,000,000 18 2031 375,000,000 19 2032 375,000,000 20 2033 375,000,000 21 2034 375,000,000 22 2035 375,000,000 23 2036 450,000,000 24 and 25 each fiscal year 26 thereafter that bonds

HB4951 Enrolled - 444 - LRB103 38094 HLH 68226 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

HB4951 Enrolled - 445 - LRB103 38094 HLH 68226 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

HB4951 Enrolled - 446 - LRB103 38094 HLH 68226 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

HB4951 Enrolled - 447 - LRB103 38094 HLH 68226 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

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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 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

HB4951 Enrolled - 449 - LRB103 38094 HLH 68226 b
1		realized from the taxes imposed on motor fuel and gasohol.
2		Beginning July 1, 2024 and until July 1, 2025, subject to the
3		payment of amounts into the State and Local Sales Tax Reform
4		Fund, the Build Illinois Fund, the McCormick Place Expansion
5		Project Fund, the Illinois Tax Increment Fund, and the Tax
6		Compliance and Administration Fund as provided in this
7		Section, the Department shall pay each month into the Road
8		Fund the amount estimated to represent 64% of the net revenue
9		realized from the taxes imposed on motor fuel and gasohol.
10		Beginning on July 1, 2025, subject to the payment of amounts
11		into the State and Local Sales Tax Reform Fund, the Build
12		Illinois Fund, the McCormick Place Expansion Project Fund, the
13		Illinois Tax Increment Fund, and the Tax Compliance and
14		Administration Fund as provided in this Section, the
15		Department shall pay each month into the Road Fund the amount
16		estimated to represent 80% of the net revenue realized from
17		the taxes imposed on motor fuel and gasohol. As used in this
18		paragraph "motor fuel" has the meaning given to that term in
19		Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
20		meaning given to that term in 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
23		General Revenue Fund of the State Treasury and 25% shall be
24		reserved in a special account and used only for the transfer to
25		the Common School Fund as part of the monthly transfer from the
26		General Revenue Fund in accordance with Section 8a of the

HB4951 Enrolled - 450 - LRB103 38094 HLH 68226 b
1		State Finance Act.
2		As soon as possible after the first day of each month, upon
3		certification of the Department of Revenue, the Comptroller
4		shall order transferred and the Treasurer shall transfer from
5		the General Revenue Fund to the Motor Fuel Tax Fund an amount
6		equal to 1.7% of 80% of the net revenue realized under this Act
7		for the second preceding month. Beginning April 1, 2000, this
8		transfer is no longer required and shall not be made.
9		Net revenue realized for a month shall be the revenue
10		collected by the State pursuant to this Act, less the amount
11		paid out during that month as refunds to taxpayers for
12		overpayment of liability.
13		(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
14		Section 75-15. The Service Occupation Tax Act is amended
15		by changing Sections 2, 3, 3-5, and 3-10 and by adding Section
16		1.05 as follows:
17		(35 ILCS 115/1.05 new)
18		Sec. 1.05. Legislative intent; leases. It is the intent of
19		the General Assembly in enacting this amendatory Act of the
20		103rd General Assembly to apply the tax imposed under this
21		Act, except as otherwise provided in this Act, to persons
22		engaged in the business of making sales of service (referred
23		to as "servicemen") on all tangible personal property, other
24		than motor vehicles, watercraft, aircraft, and semitrailers,

HB4951 Enrolled - 451 - LRB103 38094 HLH 68226 b
1		as defined in Section 1-187 of the Illinois Vehicle Code, that
2		are required to be registered with an agency of this State,
3		transferred by lease, as an incident of a sale of service, for
4		leases in effect, entered into, or renewed on or after January
5		1, 2025.
6		(35 ILCS 115/2) (from Ch. 120, par. 439.102)
7		Sec. 2. In this Act:
8		"Transfer" means any transfer of the title to property or
9		of the ownership of property whether or not the transferor
10		retains title as security for the payment of amounts due him
11		from the transferee. On and after January 1, 2025, "transfer"
12		also means any transfer of the possession or control of, the
13		right to possess or control, or a license to use, but not title
14		to, tangible personal property.
15		"Lease" means a transfer of the possession or control of,
16		the right to possess or control, or a license to use, but not
17		title to, tangible personal property for a fixed or
18		indeterminate term for consideration, regardless of the name
19		by which the transaction is called. "Lease" does not include a
20		lease entered into merely as a security agreement that does
21		not involve a transfer of possession or control from the
22		lessor to the lessee.
23		On and after January 1, 2025, the term "sale", when used in
24		this Act with respect to tangible personal property, includes
25		a lease.

HB4951 Enrolled - 452 - LRB103 38094 HLH 68226 b
1		"Cost Price" means the consideration paid by the
2		serviceman for a purchase, including, on and after January 1,
3		2025, a lease, valued in money, whether paid in money or
4		otherwise, including cash, credits and services, and shall be
5		determined without any deduction on account of the supplier's
6		cost of the property sold or on account of any other expense
7		incurred by the supplier. When a serviceman contracts out part
8		or all of the services required in his sale of service, it
9		shall be presumed that the cost price to the serviceman of the
10		property transferred to him by his or her subcontractor is
11		equal to 50% of the subcontractor's charges to the serviceman
12		in the absence of proof of the consideration paid by the
13		subcontractor for the purchase of such property.
14		"Department" means the Department of Revenue.
15		"Person" means any natural individual, firm, partnership,
16		association, joint stock company, joint venture, public or
17		private corporation, limited liability company, and any
18		receiver, executor, trustee, guardian or other representative
19		appointed by order of any court.
20		"Sale of Service" means any transaction except:
21		(a) A retail sale of tangible personal property taxable
22		under the Retailers' Occupation Tax Act or under the Use Tax
23		Act.
24		(b) A sale of tangible personal property for the purpose
25		of resale made in compliance with Section 2c of the Retailers'
26		Occupation Tax Act.

HB4951 Enrolled - 453 - LRB103 38094 HLH 68226 b
1		(c) Except as hereinafter provided, a sale or transfer of
2		tangible personal property as an incident to the rendering of
3		service for or by any governmental body or for or by any
4		corporation, society, association, foundation or institution
5		organized and operated exclusively for charitable, religious
6		or educational purposes or any not-for-profit corporation,
7		society, association, foundation, institution or organization
8		which has no compensated officers or employees and which is
9		organized and operated primarily for the recreation of persons
10		55 years of age or older. A limited liability company may
11		qualify for the exemption under this paragraph only if the
12		limited liability company is organized and operated
13		exclusively for educational purposes.
14		(d) (Blank).
15		(d-1) A sale or transfer of tangible personal property as
16		an incident to the rendering of service for owners or ,
17		lessors, lessees, or shippers of tangible personal property
18		which is utilized by interstate carriers for hire for use as
19		rolling stock moving in interstate commerce, and equipment
20		operated by a telecommunications provider, licensed as a
21		common carrier by the Federal Communications Commission, which
22		is permanently installed in or affixed to aircraft moving in
23		interstate commerce.
24		(d-1.1) On and after July 1, 2003 and through June 30,
25		2004, a sale or transfer of a motor vehicle of the second
26		division with a gross vehicle weight in excess of 8,000 pounds

HB4951 Enrolled - 454 - LRB103 38094 HLH 68226 b
1		as an incident to the rendering of service if that motor
2		vehicle is subject to the commercial distribution fee imposed
3		under Section 3-815.1 of the Illinois Vehicle Code. Beginning
4		on July 1, 2004 and through June 30, 2005, the use in this
5		State of motor vehicles of the second division: (i) with a
6		gross vehicle weight rating in excess of 8,000 pounds; (ii)
7		that are subject to the commercial distribution fee imposed
8		under Section 3-815.1 of the Illinois Vehicle Code; and (iii)
9		that are primarily used for commercial purposes. Through June
10		30, 2005, this exemption applies to repair and replacement
11		parts added after the initial purchase of such a motor vehicle
12		if that motor vehicle is used in a manner that would qualify
13		for the rolling stock exemption otherwise provided for in this
14		Act. For purposes of this paragraph, "used for commercial
15		purposes" means the transportation of persons or property in
16		furtherance of any commercial or industrial enterprise whether
17		for-hire or not.
18		(d-2) The repairing, reconditioning or remodeling, for a
19		common carrier by rail, of tangible personal property which
20		belongs to such carrier for hire, and as to which such carrier
21		receives the physical possession of the repaired,
22		reconditioned or remodeled item of tangible personal property
23		in Illinois, and which such carrier transports, or shares with
24		another common carrier in the transportation of such property,
25		out of Illinois on a standard uniform bill of lading showing
26		the person who repaired, reconditioned or remodeled the

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1		property as the shipper or consignor of such property to a
2		destination outside Illinois, for use outside Illinois.
3		(d-3) A sale or transfer of tangible personal property
4		which is produced by the seller thereof on special order in
5		such a way as to have made the applicable tax the Service
6		Occupation Tax or the Service Use Tax, rather than the
7		Retailers' Occupation Tax or the Use Tax, for an interstate
8		carrier by rail which receives the physical possession of such
9		property in Illinois, and which transports such property, or
10		shares with another common carrier in the transportation of
11		such property, out of Illinois on a standard uniform bill of
12		lading showing the seller of the property as the shipper or
13		consignor of such property to a destination outside Illinois,
14		for use outside Illinois.
15		(d-4) Until January 1, 1997, a sale, by a registered
16		serviceman paying tax under this Act to the Department, of
17		special order printed materials delivered outside Illinois and
18		which are not returned to this State, if delivery is made by
19		the seller or agent of the seller, including an agent who
20		causes the product to be delivered outside Illinois by a
21		common carrier or the U.S. postal service.
22		(e) A sale or transfer of machinery and equipment used
23		primarily in the process of the manufacturing or assembling,
24		either in an existing, an expanded or a new manufacturing
25		facility, of tangible personal property for wholesale or
26		retail sale or lease, whether such sale or lease is made

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1		directly by the manufacturer or by some other person, whether
2		the materials used in the process are owned by the
3		manufacturer or some other person, or whether such sale or
4		lease is made apart from or as an incident to the seller's
5		engaging in a service occupation and the applicable tax is a
6		Service Occupation Tax or Service Use Tax, rather than
7		Retailers' Occupation Tax or Use Tax. The exemption provided
8		by this paragraph (e) includes production related tangible
9		personal property, as defined in Section 3-50 of the Use Tax
10		Act, purchased on or after July 1, 2019. The exemption
11		provided by this paragraph (e) does not include machinery and
12		equipment used in (i) the generation of electricity for
13		wholesale or retail sale; (ii) the generation or treatment of
14		natural or artificial gas for wholesale or retail sale that is
15		delivered to customers through pipes, pipelines, or mains; or
16		(iii) the treatment of water for wholesale or retail sale that
17		is delivered to customers through pipes, pipelines, or mains.
18		The provisions of Public Act 98-583 are declaratory of
19		existing law as to the meaning and scope of this exemption. The
20		exemption under this subsection (e) is exempt from the
21		provisions of Section 3-75.
22		(f) Until July 1, 2003, the sale or transfer of
23		distillation machinery and equipment, sold as a unit or kit
24		and assembled or installed by the retailer, which machinery
25		and equipment is certified by the user to be used only for the
26		production of ethyl alcohol that will be used for consumption

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1		as motor fuel or as a component of motor fuel for the personal
2		use of such user and not subject to sale or resale.
3		(g) At the election of any serviceman not required to be
4		otherwise registered as a retailer under Section 2a of the
5		Retailers' Occupation Tax Act, made for each fiscal year sales
6		of service in which the aggregate annual cost price of
7		tangible personal property transferred as an incident to the
8		sales of service is less than 35% (75% in the case of
9		servicemen transferring prescription drugs or servicemen
10		engaged in graphic arts production) of the aggregate annual
11		total gross receipts from all sales of service. The purchase
12		of such tangible personal property by the serviceman shall be
13		subject to tax under the Retailers' Occupation Tax Act and the
14		Use Tax Act. However, if a primary serviceman who has made the
15		election described in this paragraph subcontracts service work
16		to a secondary serviceman who has also made the election
17		described in this paragraph, the primary serviceman does not
18		incur a Use Tax liability if the secondary serviceman (i) has
19		paid or will pay Use Tax on his or her cost price of any
20		tangible personal property transferred to the primary
21		serviceman and (ii) certifies that fact in writing to the
22		primary serviceman.
23		Tangible personal property transferred incident to the
24		completion of a maintenance agreement is exempt from the tax
25		imposed pursuant to this Act.
26		Exemption (e) also includes machinery and equipment used

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1		in the general maintenance or repair of such exempt machinery
2		and equipment or for in-house manufacture of exempt machinery
3		and equipment. On and after July 1, 2017, exemption (e) also
4		includes graphic arts machinery and equipment, as defined in
5		paragraph (5) of Section 3-5. The machinery and equipment
6		exemption does not include machinery and equipment used in (i)
7		the generation of electricity for wholesale or retail sale;
8		(ii) the generation or treatment of natural or artificial gas
9		for wholesale or retail sale that is delivered to customers
10		through pipes, pipelines, or mains; or (iii) the treatment of
11		water for wholesale or retail sale that is delivered to
12		customers through pipes, pipelines, or mains. The provisions
13		of Public Act 98-583 are declaratory of existing law as to the
14		meaning and scope of this exemption. For the purposes of
15		exemption (e), each of these terms shall have the following
16		meanings: (1) "manufacturing process" shall mean the
17		production of any article of tangible personal property,
18		whether such article is a finished product or an article for
19		use in the process of manufacturing or assembling a different
20		article of tangible personal property, by procedures commonly
21		regarded as manufacturing, processing, fabricating, or
22		refining which changes some existing material or materials
23		into a material with a different form, use or name. In relation
24		to a recognized integrated business composed of a series of
25		operations which collectively constitute manufacturing, or
26		individually constitute manufacturing operations, the

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1		manufacturing process shall be deemed to commence with the
2		first operation or stage of production in the series, and
3		shall not be deemed to end until the completion of the final
4		product in the last operation or stage of production in the
5		series; and further for purposes of exemption (e),
6		photoprocessing is deemed to be a manufacturing process of
7		tangible personal property for wholesale or retail sale; (2)
8		"assembling process" shall mean the production of any article
9		of tangible personal property, whether such article is a
10		finished product or an article for use in the process of
11		manufacturing or assembling a different article of tangible
12		personal property, by the combination of existing materials in
13		a manner commonly regarded as assembling which results in a
14		material of a different form, use or name; (3) "machinery"
15		shall mean major mechanical machines or major components of
16		such machines contributing to a manufacturing or assembling
17		process; and (4) "equipment" shall include any independent
18		device or tool separate from any machinery but essential to an
19		integrated manufacturing or assembly process; including
20		computers used primarily in a manufacturer's computer assisted
21		design, computer assisted manufacturing (CAD/CAM) system; or
22		any subunit or assembly comprising a component of any
23		machinery or auxiliary, adjunct or attachment parts of
24		machinery, such as tools, dies, jigs, fixtures, patterns and
25		molds; or any parts which require periodic replacement in the
26		course of normal operation; but shall not include hand tools.

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1		Equipment includes chemicals or chemicals acting as catalysts
2		but only if the chemicals or chemicals acting as catalysts
3		effect a direct and immediate change upon a product being
4		manufactured or assembled for wholesale or retail sale or
5		lease. The purchaser of such machinery and equipment who has
6		an active resale registration number shall furnish such number
7		to the seller at the time of purchase. The purchaser of such
8		machinery and equipment and tools without an active resale
9		registration number shall furnish to the seller a certificate
10		of exemption stating facts establishing the exemption, which
11		certificate shall be available to the Department for
12		inspection or audit.
13		Except as provided in Section 2d of this Act, the rolling
14		stock exemption applies to rolling stock used by an interstate
15		carrier for hire, even just between points in Illinois, if
16		such rolling stock transports, for hire, persons whose
17		journeys or property whose shipments originate or terminate
18		outside Illinois.
19		Any informal rulings, opinions or letters issued by the
20		Department in response to an inquiry or request for any
21		opinion from any person regarding the coverage and
22		applicability of exemption (e) to specific devices shall be
23		published, maintained as a public record, and made available
24		for public inspection and copying. If the informal ruling,
25		opinion or letter contains trade secrets or other confidential
26		information, where possible the Department shall delete such

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1		information prior to publication. Whenever such informal
2		rulings, opinions, or letters contain any policy of general
3		applicability, the Department shall formulate and adopt such
4		policy as a rule in accordance with the provisions of the
5		Illinois Administrative Procedure Act.
6		On and after July 1, 1987, no entity otherwise eligible
7		under exemption (c) of this Section shall make tax-free
8		purchases unless it has an active exemption identification
9		number issued by the Department.
10		"Serviceman" means any person who is engaged in the
11		occupation of making sales of service.
12		"Sale at Retail" means "sale at retail" as defined in the
13		Retailers' Occupation Tax Act, which, on and after January 1,
14		2025, is defined to include leases.
15		"Supplier" means any person who makes sales of tangible
16		personal property to servicemen for the purpose of resale as
17		an incident to a sale of service.
18		(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
19		100-863, eff. 8-14-18; 101-9, eff. 6-5-19; 101-604, eff.
20		12-13-19.)
21		(35 ILCS 115/3) (from Ch. 120, par. 439.103)
22		Sec. 3. Tax imposed. A tax is imposed upon all persons
23		engaged in the business of making sales of service (referred
24		to as "servicemen") on all tangible personal property
25		transferred, including, on and after January 1, 2025,

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1		transferred by lease, as an incident of a sale of service,
2		including computer software, and including photographs,
3		negatives, and positives that are the product of
4		photoprocessing, but not including products of photoprocessing
5		produced for use in motion pictures for public commercial
6		exhibition. Beginning January 1, 2001, prepaid telephone
7		calling arrangements shall be considered tangible personal
8		property subject to the tax imposed under this Act regardless
9		of the form in which those arrangements may be embodied,
10		transmitted, or fixed by any method now known or hereafter
11		developed. Sales of (1) electricity delivered to customers by
12		wire; (2) natural or artificial gas that is delivered to
13		customers through pipes, pipelines, or mains; and (3) water
14		that is delivered to customers through pipes, pipelines, or
15		mains are not subject to tax under this Act. The provisions of
16		this amendatory Act of the 98th General Assembly are
17		declaratory of existing law as to the meaning and scope of this
18		Act.
19		The imposition of the tax under this Act on tangible
20		personal property transferred by lease by persons engaged in
21		the business of making sales of service applies to leases in
22		effect, entered into, or renewed on or after January 1, 2025.
23		In the case of leases, except as otherwise provided in this
24		Act, the serviceman who is a lessor must remit for each tax
25		return period only the tax applicable to that part of the
26		selling price actually received during such tax return period.

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1		(Source: P.A. 98-583, eff. 1-1-14.)
2		(35 ILCS 115/3-5)
3		Sec. 3-5. Exemptions. The following tangible personal
4		property is exempt from the tax imposed by this Act:
5		(1) Personal property sold by a corporation, society,
6		association, foundation, institution, or organization, other
7		than a limited liability company, that is organized and
8		operated as a not-for-profit service enterprise for the
9		benefit of persons 65 years of age or older if the personal
10		property was not purchased by the enterprise for the purpose
11		of resale by the enterprise.
12		(2) Personal property purchased by a not-for-profit
13		Illinois county fair association for use in conducting,
14		operating, or promoting the county fair.
15		(3) Personal property purchased by any not-for-profit arts
16		or cultural organization that establishes, by proof required
17		by the Department by rule, that it has received an exemption
18		under Section 501(c)(3) of the Internal Revenue Code and that
19		is organized and operated primarily for the presentation or
20		support of arts or cultural programming, activities, or
21		services. These organizations include, but are not limited to,
22		music and dramatic arts organizations such as symphony
23		orchestras and theatrical groups, arts and cultural service
24		organizations, local arts councils, visual arts organizations,
25		and media arts organizations. On and after July 1, 2001 (the

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1		effective date of Public Act 92-35), however, an entity
2		otherwise eligible for this exemption shall not make tax-free
3		purchases unless it has an active identification number issued
4		by the Department.
5		(4) Legal tender, currency, medallions, or gold or silver
6		coinage issued by the State of Illinois, the government of the
7		United States of America, or the government of any foreign
8		country, and bullion.
9		(5) Until July 1, 2003 and beginning again on September 1,
10		2004 through August 30, 2014, graphic arts machinery and
11		equipment, including repair and replacement parts, both new
12		and used, and including that manufactured on special order or
13		purchased for lease, certified by the purchaser to be used
14		primarily for graphic arts production. Equipment includes
15		chemicals or chemicals acting as catalysts but only if the
16		chemicals or chemicals acting as catalysts effect a direct and
17		immediate change upon a graphic arts product. Beginning on
18		July 1, 2017, graphic arts machinery and equipment is included
19		in the manufacturing and assembling machinery and equipment
20		exemption under Section 2 of this Act.
21		(6) Personal property sold by a teacher-sponsored student
22		organization affiliated with an elementary or secondary school
23		located in Illinois.
24		(7) Farm machinery and equipment, both new and used,
25		including that manufactured on special order, certified by the
26		purchaser to be used primarily for production agriculture or

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1		State or federal agricultural programs, including individual
2		replacement parts for the machinery and equipment, including
3		machinery and equipment purchased for lease, and including
4		implements of husbandry defined in Section 1-130 of the
5		Illinois Vehicle Code, farm machinery and agricultural
6		chemical and fertilizer spreaders, and nurse wagons required
7		to be registered under Section 3-809 of the Illinois Vehicle
8		Code, but excluding other motor vehicles required to be
9		registered under the Illinois Vehicle Code. Horticultural
10		polyhouses or hoop houses used for propagating, growing, or
11		overwintering plants shall be considered farm machinery and
12		equipment under this item (7). Agricultural chemical tender
13		tanks and dry boxes shall include units sold separately from a
14		motor vehicle required to be licensed and units sold mounted
15		on a motor vehicle required to be licensed if the selling price
16		of the tender is separately stated.
17		Farm machinery and equipment shall include precision
18		farming equipment that is installed or purchased to be
19		installed on farm machinery and equipment, including, but not
20		limited to, tractors, harvesters, sprayers, planters, seeders,
21		or spreaders. Precision farming equipment includes, but is not
22		limited to, soil testing sensors, computers, monitors,
23		software, global positioning and mapping systems, and other
24		such equipment.
25		Farm machinery and equipment also includes computers,
26		sensors, software, and related equipment used primarily in the

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1		computer-assisted operation of production agriculture
2		facilities, equipment, and activities such as, but not limited
3		to, the collection, monitoring, and correlation of animal and
4		crop data for the purpose of formulating animal diets and
5		agricultural chemicals.
6		Beginning on January 1, 2024, farm machinery and equipment
7		also includes electrical power generation equipment used
8		primarily for production agriculture.
9		This item (7) is exempt from the provisions of Section
10		3-55.
11		(8) Until June 30, 2013, fuel and petroleum products sold
12		to or used by an air common carrier, certified by the carrier
13		to be used for consumption, shipment, or storage in the
14		conduct of its business as an air common carrier, for a flight
15		destined for or returning from a location or locations outside
16		the United States without regard to previous or subsequent
17		domestic stopovers.
18		Beginning July 1, 2013, fuel and petroleum products sold
19		to or used by an air carrier, certified by the carrier to be
20		used for consumption, shipment, or storage in the conduct of
21		its business as an air common carrier, for a flight that (i) is
22		engaged in foreign trade or is engaged in trade between the
23		United States and any of its possessions and (ii) transports
24		at least one individual or package for hire from the city of
25		origination to the city of final destination on the same
26		aircraft, without regard to a change in the flight number of

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1		that aircraft.
2		(9) Proceeds of mandatory service charges separately
3		stated on customers' bills for the purchase and consumption of
4		food and beverages, to the extent that the proceeds of the
5		service charge are in fact turned over as tips or as a
6		substitute for tips to the employees who participate directly
7		in preparing, serving, hosting or cleaning up the food or
8		beverage function with respect to which the service charge is
9		imposed.
10		(10) Until July 1, 2003, oil field exploration, drilling,
11		and production equipment, including (i) rigs and parts of
12		rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
13		pipe and tubular goods, including casing and drill strings,
14		(iii) pumps and pump-jack units, (iv) storage tanks and flow
15		lines, (v) any individual replacement part for oil field
16		exploration, drilling, and production equipment, and (vi)
17		machinery and equipment purchased for lease; but excluding
18		motor vehicles required to be registered under the Illinois
19		Vehicle Code.
20		(11) Photoprocessing machinery and equipment, including
21		repair and replacement parts, both new and used, including
22		that manufactured on special order, certified by the purchaser
23		to be used primarily for photoprocessing, and including
24		photoprocessing machinery and equipment purchased for lease.
25		(12) Until July 1, 2028, coal and aggregate exploration,
26		mining, off-highway hauling, processing, maintenance, and

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1		reclamation equipment, including replacement parts and
2		equipment, and including equipment purchased for lease, but
3		excluding motor vehicles required to be registered under the
4		Illinois Vehicle Code. The changes made to this Section by
5		Public Act 97-767 apply on and after July 1, 2003, but no claim
6		for credit or refund is allowed on or after August 16, 2013
7		(the effective date of Public Act 98-456) for such taxes paid
8		during the period beginning July 1, 2003 and ending on August
9		16, 2013 (the effective date of Public Act 98-456).
10		(13) Beginning January 1, 1992 and through June 30, 2016,
11		food for human consumption that is to be consumed off the
12		premises where it is sold (other than alcoholic beverages,
13		soft drinks and food that has been prepared for immediate
14		consumption) and prescription and non-prescription medicines,
15		drugs, medical appliances, and insulin, urine testing
16		materials, syringes, and needles used by diabetics, for human
17		use, when purchased for use by a person receiving medical
18		assistance under Article V of the Illinois Public Aid Code who
19		resides in a licensed long-term care facility, as defined in
20		the Nursing Home Care Act, or in a licensed facility as defined
21		in the ID/DD Community Care Act, the MC/DD Act, or the
22		Specialized Mental Health Rehabilitation Act of 2013.
23		(14) Semen used for artificial insemination of livestock
24		for direct agricultural production.
25		(15) Horses, or interests in horses, registered with and
26		meeting the requirements of any of the Arabian Horse Club

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1		Registry of America, Appaloosa Horse Club, American Quarter
2		Horse Association, United States Trotting Association, or
3		Jockey Club, as appropriate, used for purposes of breeding or
4		racing for prizes. This item (15) is exempt from the
5		provisions of Section 3-55, and the exemption provided for
6		under this item (15) applies for all periods beginning May 30,
7		1995, but no claim for credit or refund is allowed on or after
8		January 1, 2008 (the effective date of Public Act 95-88) for
9		such taxes paid during the period beginning May 30, 2000 and
10		ending on January 1, 2008 (the effective date of Public Act
11		95-88).
12		(16) Computers and communications equipment utilized for
13		any hospital purpose and equipment used in the diagnosis,
14		analysis, or treatment of hospital patients sold to a lessor
15		who leases the equipment, under a lease of one year or longer
16		executed or in effect at the time of the purchase, to a
17		hospital that has been issued an active tax exemption
18		identification number by the Department under Section 1g of
19		the Retailers' Occupation Tax Act.
20		(17) Personal property sold to a lessor who leases the
21		property, under a lease of one year or longer executed or in
22		effect at the time of the purchase, to a governmental body that
23		has been issued an active tax exemption identification number
24		by the Department under Section 1g of the Retailers'
25		Occupation Tax Act.
26		(18) Beginning with taxable years ending on or after

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1		December 31, 1995 and ending with taxable years ending on or
2		before December 31, 2004, personal property that is donated
3		for disaster relief to be used in a State or federally declared
4		disaster area in Illinois or bordering Illinois by a
5		manufacturer or retailer that is registered in this State to a
6		corporation, society, association, foundation, or institution
7		that has been issued a sales tax exemption identification
8		number by the Department that assists victims of the disaster
9		who reside within the declared disaster area.
10		(19) Beginning with taxable years ending on or after
11		December 31, 1995 and ending with taxable years ending on or
12		before December 31, 2004, personal property that is used in
13		the performance of infrastructure repairs in this State,
14		including, but not limited to, municipal roads and streets,
15		access roads, bridges, sidewalks, waste disposal systems,
16		water and sewer line extensions, water distribution and
17		purification facilities, storm water drainage and retention
18		facilities, and sewage treatment facilities, resulting from a
19		State or federally declared disaster in Illinois or bordering
20		Illinois when such repairs are initiated on facilities located
21		in the declared disaster area within 6 months after the
22		disaster.
23		(20) Beginning July 1, 1999, game or game birds sold at a
24		"game breeding and hunting preserve area" as that term is used
25		in the Wildlife Code. This paragraph is exempt from the
26		provisions of Section 3-55.

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1		(21) A motor vehicle, as that term is defined in Section
2		1-146 of the Illinois Vehicle Code, that is donated to a
3		corporation, limited liability company, society, association,
4		foundation, or institution that is determined by the
5		Department to be organized and operated exclusively for
6		educational purposes. For purposes of this exemption, "a
7		corporation, limited liability company, society, association,
8		foundation, or institution organized and operated exclusively
9		for educational purposes" means all tax-supported public
10		schools, private schools that offer systematic instruction in
11		useful branches of learning by methods common to public
12		schools and that compare favorably in their scope and
13		intensity with the course of study presented in tax-supported
14		schools, and vocational or technical schools or institutes
15		organized and operated exclusively to provide a course of
16		study of not less than 6 weeks duration and designed to prepare
17		individuals to follow a trade or to pursue a manual,
18		technical, mechanical, industrial, business, or commercial
19		occupation.
20		(22) Beginning January 1, 2000, personal property,
21		including food, purchased through fundraising events for the
22		benefit of a public or private elementary or secondary school,
23		a group of those schools, or one or more school districts if
24		the events are sponsored by an entity recognized by the school
25		district that consists primarily of volunteers and includes
26		parents and teachers of the school children. This paragraph

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1		does not apply to fundraising events (i) for the benefit of
2		private home instruction or (ii) for which the fundraising
3		entity purchases the personal property sold at the events from
4		another individual or entity that sold the property for the
5		purpose of resale by the fundraising entity and that profits
6		from the sale to the fundraising entity. This paragraph is
7		exempt from the provisions of Section 3-55.
8		(23) Beginning January 1, 2000 and through December 31,
9		2001, new or used automatic vending machines that prepare and
10		serve hot food and beverages, including coffee, soup, and
11		other items, and replacement parts for these machines.
12		Beginning January 1, 2002 and through June 30, 2003, machines
13		and parts for machines used in commercial, coin-operated
14		amusement and vending business if a use or occupation tax is
15		paid on the gross receipts derived from the use of the
16		commercial, coin-operated amusement and vending machines. This
17		paragraph is exempt from the provisions of Section 3-55.
18		(24) Beginning on August 2, 2001 (the effective date of
19		Public Act 92-227), computers and communications equipment
20		utilized for any hospital purpose and equipment used in the
21		diagnosis, analysis, or treatment of hospital patients sold to
22		a lessor who leases the equipment, under a lease of one year or
23		longer executed or in effect at the time of the purchase, to a
24		hospital that has been issued an active tax exemption
25		identification number by the Department under Section 1g of
26		the Retailers' Occupation Tax Act. This paragraph is exempt

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1		from the provisions of Section 3-55.
2		(25) Beginning on August 2, 2001 (the effective date of
3		Public Act 92-227), personal property sold to a lessor who
4		leases the property, under a lease of one year or longer
5		executed or in effect at the time of the purchase, to a
6		governmental body that has been issued an active tax exemption
7		identification number by the Department under Section 1g of
8		the Retailers' Occupation Tax Act. This paragraph is exempt
9		from the provisions of Section 3-55.
10		(26) Beginning on January 1, 2002 and through June 30,
11		2016, tangible personal property purchased from an Illinois
12		retailer by a taxpayer engaged in centralized purchasing
13		activities in Illinois who will, upon receipt of the property
14		in Illinois, temporarily store the property in Illinois (i)
15		for the purpose of subsequently transporting it outside this
16		State for use or consumption thereafter solely outside this
17		State or (ii) for the purpose of being processed, fabricated,
18		or manufactured into, attached to, or incorporated into other
19		tangible personal property to be transported outside this
20		State and thereafter used or consumed solely outside this
21		State. The Director of Revenue shall, pursuant to rules
22		adopted in accordance with the Illinois Administrative
23		Procedure Act, issue a permit to any taxpayer in good standing
24		with the Department who is eligible for the exemption under
25		this paragraph (26). The permit issued under this paragraph
26		(26) shall authorize the holder, to the extent and in the

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1		manner specified in the rules adopted under this Act, to
2		purchase tangible personal property from a retailer exempt
3		from the taxes imposed by this Act. Taxpayers shall maintain
4		all necessary books and records to substantiate the use and
5		consumption of all such tangible personal property outside of
6		the State of Illinois.
7		(27) Beginning January 1, 2008, tangible personal property
8		used in the construction or maintenance of a community water
9		supply, as defined under Section 3.145 of the Environmental
10		Protection Act, that is operated by a not-for-profit
11		corporation that holds a valid water supply permit issued
12		under Title IV of the Environmental Protection Act. This
13		paragraph is exempt from the provisions of Section 3-55.
14		(28) Tangible personal property sold to a
15		public-facilities corporation, as described in Section
16		11-65-10 of the Illinois Municipal Code, for purposes of
17		constructing or furnishing a municipal convention hall, but
18		only if the legal title to the municipal convention hall is
19		transferred to the municipality without any further
20		consideration by or on behalf of the municipality at the time
21		of the completion of the municipal convention hall or upon the
22		retirement or redemption of any bonds or other debt
23		instruments issued by the public-facilities corporation in
24		connection with the development of the municipal convention
25		hall. This exemption includes existing public-facilities
26		corporations as provided in Section 11-65-25 of the Illinois

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1		Municipal Code. This paragraph is exempt from the provisions
2		of Section 3-55.
3		(29) Beginning January 1, 2010 and continuing through
4		December 31, 2029, materials, parts, equipment, components,
5		and furnishings incorporated into or upon an aircraft as part
6		of the modification, refurbishment, completion, replacement,
7		repair, or maintenance of the aircraft. This exemption
8		includes consumable supplies used in the modification,
9		refurbishment, completion, replacement, repair, and
10		maintenance of aircraft. However, until January 1, 2024, this
11		exemption excludes any materials, parts, equipment,
12		components, and consumable supplies used in the modification,
13		replacement, repair, and maintenance of aircraft engines or
14		power plants, whether such engines or power plants are
15		installed or uninstalled upon any such aircraft. "Consumable
16		supplies" include, but are not limited to, adhesive, tape,
17		sandpaper, general purpose lubricants, cleaning solution,
18		latex gloves, and protective films.
19		Beginning January 1, 2010 and continuing through December
20		31, 2023, this exemption applies only to the transfer of
21		qualifying tangible personal property incident to the
22		modification, refurbishment, completion, replacement, repair,
23		or maintenance of an aircraft by persons who (i) hold an Air
24		Agency Certificate and are empowered to operate an approved
25		repair station by the Federal Aviation Administration, (ii)
26		have a Class IV Rating, and (iii) conduct operations in

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1		accordance with Part 145 of the Federal Aviation Regulations.
2		The exemption does not include aircraft operated by a
3		commercial air carrier providing scheduled passenger air
4		service pursuant to authority issued under Part 121 or Part
5		129 of the Federal Aviation Regulations. From January 1, 2024
6		through December 31, 2029, this exemption applies only to the
7		use of qualifying tangible personal property by: (A) persons
8		who modify, refurbish, complete, repair, replace, or maintain
9		aircraft and who (i) hold an Air Agency Certificate and are
10		empowered to operate an approved repair station by the Federal
11		Aviation Administration, (ii) have a Class IV Rating, and
12		(iii) conduct operations in accordance with Part 145 of the
13		Federal Aviation Regulations; and (B) persons who engage in
14		the modification, replacement, repair, and maintenance of
15		aircraft engines or power plants without regard to whether or
16		not those persons meet the qualifications of item (A).
17		The changes made to this paragraph (29) by Public Act
18		98-534 are declarative of existing law. It is the intent of the
19		General Assembly that the exemption under this paragraph (29)
20		applies continuously from January 1, 2010 through December 31,
21		2024; however, no claim for credit or refund is allowed for
22		taxes paid as a result of the disallowance of this exemption on
23		or after January 1, 2015 and prior to February 5, 2020 (the
24		effective date of Public Act 101-629).
25		(30) Beginning January 1, 2017 and through December 31,
26		2026, menstrual pads, tampons, and menstrual cups.

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1		(31) Tangible personal property transferred to a purchaser
2		who is exempt from tax by operation of federal law. This
3		paragraph is exempt from the provisions of Section 3-55.
4		(32) Qualified tangible personal property used in the
5		construction or operation of a data center that has been
6		granted a certificate of exemption by the Department of
7		Commerce and Economic Opportunity, whether that tangible
8		personal property is purchased by the owner, operator, or
9		tenant of the data center or by a contractor or subcontractor
10		of the owner, operator, or tenant. Data centers that would
11		have qualified for a certificate of exemption prior to January
12		1, 2020 had Public Act 101-31 been in effect, may apply for and
13		obtain an exemption for subsequent purchases of computer
14		equipment or enabling software purchased or leased to upgrade,
15		supplement, or replace computer equipment or enabling software
16		purchased or leased in the original investment that would have
17		qualified.
18		The Department of Commerce and Economic Opportunity shall
19		grant a certificate of exemption under this item (32) to
20		qualified data centers as defined by Section 605-1025 of the
21		Department of Commerce and Economic Opportunity Law of the
22		Civil Administrative Code of Illinois.
23		For the purposes of this item (32):
24		"Data center" means a building or a series of
25		buildings rehabilitated or constructed to house working
26		servers in one physical location or multiple sites within

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1		the State of Illinois.
2		"Qualified tangible personal property" means:
3		electrical systems and equipment; climate control and
4		chilling equipment and systems; mechanical systems and
5		equipment; monitoring and secure systems; emergency
6		generators; hardware; computers; servers; data storage
7		devices; network connectivity equipment; racks; cabinets;
8		telecommunications cabling infrastructure; raised floor
9		systems; peripheral components or systems; software;
10		mechanical, electrical, or plumbing systems; battery
11		systems; cooling systems and towers; temperature control
12		systems; other cabling; and other data center
13		infrastructure equipment and systems necessary to operate
14		qualified tangible personal property, including fixtures;
15		and component parts of any of the foregoing, including
16		installation, maintenance, repair, refurbishment, and
17		replacement of qualified tangible personal property to
18		generate, transform, transmit, distribute, or manage
19		electricity necessary to operate qualified tangible
20		personal property; and all other tangible personal
21		property that is essential to the operations of a computer
22		data center. The term "qualified tangible personal
23		property" also includes building materials physically
24		incorporated into in to the qualifying data center. To
25		document the exemption allowed under this Section, the
26		retailer must obtain from the purchaser a copy of the

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1		certificate of eligibility issued by the Department of
2		Commerce and Economic Opportunity.
3		This item (32) is exempt from the provisions of Section
4		3-55.
5		(33) Beginning July 1, 2022, breast pumps, breast pump
6		collection and storage supplies, and breast pump kits. This
7		item (33) is exempt from the provisions of Section 3-55. As
8		used in this item (33):
9		"Breast pump" means an electrically controlled or
10		manually controlled pump device designed or marketed to be
11		used to express milk from a human breast during lactation,
12		including the pump device and any battery, AC adapter, or
13		other power supply unit that is used to power the pump
14		device and is packaged and sold with the pump device at the
15		time of sale.
16		"Breast pump collection and storage supplies" means
17		items of tangible personal property designed or marketed
18		to be used in conjunction with a breast pump to collect
19		milk expressed from a human breast and to store collected
20		milk until it is ready for consumption.
21		"Breast pump collection and storage supplies"
22		includes, but is not limited to: breast shields and breast
23		shield connectors; breast pump tubes and tubing adapters;
24		breast pump valves and membranes; backflow protectors and
25		backflow protector adaptors; bottles and bottle caps
26		specific to the operation of the breast pump; and breast

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1		milk storage bags.
2		"Breast pump collection and storage supplies" does not
3		include: (1) bottles and bottle caps not specific to the
4		operation of the breast pump; (2) breast pump travel bags
5		and other similar carrying accessories, including ice
6		packs, labels, and other similar products; (3) breast pump
7		cleaning supplies; (4) nursing bras, bra pads, breast
8		shells, and other similar products; and (5) creams,
9		ointments, and other similar products that relieve
10		breastfeeding-related symptoms or conditions of the
11		breasts or nipples, unless sold as part of a breast pump
12		kit that is pre-packaged by the breast pump manufacturer
13		or distributor.
14		"Breast pump kit" means a kit that: (1) contains no
15		more than a breast pump, breast pump collection and
16		storage supplies, a rechargeable battery for operating the
17		breast pump, a breastmilk cooler, bottle stands, ice
18		packs, and a breast pump carrying case; and (2) is
19		pre-packaged as a breast pump kit by the breast pump
20		manufacturer or distributor.
21		(34) Tangible personal property sold by or on behalf of
22		the State Treasurer pursuant to the Revised Uniform Unclaimed
23		Property Act. This item (34) is exempt from the provisions of
24		Section 3-55.
25		(35) Beginning on January 1, 2024, tangible personal
26		property purchased by an active duty member of the armed

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1		forces of the United States who presents valid military
2		identification and purchases the property using a form of
3		payment where the federal government is the payor. The member
4		of the armed forces must complete, at the point of sale, a form
5		prescribed by the Department of Revenue documenting that the
6		transaction is eligible for the exemption under this
7		paragraph. Retailers must keep the form as documentation of
8		the exemption in their records for a period of not less than 6
9		years. "Armed forces of the United States" means the United
10		States Army, Navy, Air Force, Marine Corps, or Coast Guard.
11		This paragraph is exempt from the provisions of Section 3-55.
12		(36) The lease of the following tangible personal
13		property:
14		(1) computer software transferred subject to a license
15		that meets the following requirements:
16		(A) it is evidenced by a written agreement signed
17		by the licensor and the customer;
18		(i) an electronic agreement in which the
19		customer accepts the license by means of an
20		electronic signature that is verifiable and can be
21		authenticated and is attached to or made part of
22		the license will comply with this requirement;
23		(ii) a license agreement in which the customer
24		electronically accepts the terms by clicking "I
25		agree" does not comply with this requirement;
26		(B) it restricts the customer's duplication and

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1		use of the software;
2		(C) it prohibits the customer from licensing,
3		sublicensing, or transferring the software to a third
4		party (except to a related party) without the
5		permission and continued control of the licensor;
6		(D) the licensor has a policy of providing another
7		copy at minimal or no charge if the customer loses or
8		damages the software, or of permitting the licensee to
9		make and keep an archival copy, and such policy is
10		either stated in the license agreement, supported by
11		the licensor's books and records, or supported by a
12		notarized statement made under penalties of perjury by
13		the licensor; and
14		(E) the customer must destroy or return all copies
15		of the software to the licensor at the end of the
16		license period; this provision is deemed to be met, in
17		the case of a perpetual license, without being set
18		forth in the license agreement; and
19		(2) property that is subject to a tax on lease
20		receipts imposed by a home rule unit of local government
21		if the ordinance imposing that tax was adopted prior to
22		January 1, 2023.
23		(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
24		Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
25		75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
26		Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,

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1		eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2		revised 12-12-23.)
3		(35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
4		Sec. 3-10. Rate of tax. Unless otherwise provided in this
5		Section, the tax imposed by this Act is at the rate of 6.25% of
6		the "selling price", as defined in Section 2 of the Service Use
7		Tax Act, of the tangible personal property, including, on and
8		after January 1, 2025, tangible personal property transferred
9		by lease. For the purpose of computing this tax, in no event
10		shall the "selling price" be less than the cost price to the
11		serviceman of the tangible personal property transferred. The
12		selling price of each item of tangible personal property
13		transferred as an incident of a sale of service may be shown as
14		a distinct and separate item on the serviceman's billing to
15		the service customer. If the selling price is not so shown, the
16		selling price of the tangible personal property is deemed to
17		be 50% of the serviceman's entire billing to the service
18		customer. When, however, a serviceman contracts to design,
19		develop, and produce special order machinery or equipment, the
20		tax imposed by this Act shall be based on the serviceman's cost
21		price of the tangible personal property transferred incident
22		to the completion of the contract.
23		Beginning on July 1, 2000 and through December 31, 2000,
24		with respect to motor fuel, as defined in Section 1.1 of the
25		Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

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1		the Use Tax Act, the tax is imposed at the rate of 1.25%.
2		With respect to gasohol, as defined in the Use Tax Act, the
3		tax imposed by this Act shall apply to (i) 70% of the cost
4		price of property transferred as an incident to the sale of
5		service on or after January 1, 1990, and before July 1, 2003,
6		(ii) 80% of the selling price of property transferred as an
7		incident to the sale of service on or after July 1, 2003 and on
8		or before July 1, 2017, (iii) 100% of the selling price of
9		property transferred as an incident to the sale of service
10		after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
11		the selling price of property transferred as an incident to
12		the sale of service on or after January 1, 2024 and on or
13		before December 31, 2028, and (v) 100% of the selling price of
14		property transferred as an incident to the sale of service
15		after December 31, 2028. If, at any time, however, the tax
16		under this Act on sales of gasohol, as defined in the Use Tax
17		Act, is imposed at the rate of 1.25%, then the tax imposed by
18		this Act applies to 100% of the proceeds of sales of gasohol
19		made during that time.
20		With respect to mid-range ethanol blends, as defined in
21		Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
22		applies to (i) 80% of the selling price of property
23		transferred as an incident to the sale of service on or after
24		January 1, 2024 and on or before December 31, 2028 and (ii)
25		100% of the selling price of property transferred as an
26		incident to the sale of service after December 31, 2028. If, at

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

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1		and no more than 10% biodiesel made during that time.
2		With respect to biodiesel, as defined in the Use Tax Act,
3		and biodiesel blends, as defined in the Use Tax Act, with more
4		than 10% but no more than 99% biodiesel material, the tax
5		imposed by this Act does not apply to the proceeds of the
6		selling price of property transferred as an incident to the
7		sale of service on or after July 1, 2003 and on or before
8		December 31, 2023. On and after January 1, 2024 and on or
9		before December 31, 2030, the taxation of biodiesel, renewable
10		diesel, and biodiesel blends shall be as provided in Section
11		3-5.1 of the Use Tax Act.
12		At the election of any registered serviceman made for each
13		fiscal year, sales of service in which the aggregate annual
14		cost price of tangible personal property transferred as an
15		incident to the sales of service is less than 35%, or 75% in
16		the case of servicemen transferring prescription drugs or
17		servicemen engaged in graphic arts production, of the
18		aggregate annual total gross receipts from all sales of
19		service, the tax imposed by this Act shall be based on the
20		serviceman's cost price of the tangible personal property
21		transferred incident to the sale of those services.
22		Until July 1, 2022 and beginning again on July 1, 2023, the
23		tax shall be imposed at the rate of 1% on food prepared for
24		immediate consumption and transferred incident to a sale of
25		service subject to this Act or the Service Use Tax Act by an
26		entity licensed under the Hospital Licensing Act, the Nursing

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

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

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

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

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1		102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
2		Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
3		103-154, eff. 6-30-23.)
4		Section 75-20. The Retailers' Occupation Tax Act is
5		amended by changing the title of the Act, by changing Sections
6		1, 2, 2-5, 2-10, 2-12, 2a, 2c, and 3, and by adding Section
7		1.05 as follows:
8		(35 ILCS 120/Act title)
9		An Act in relation to a tax upon persons engaged in the
10		business of selling, including leasing, tangible personal
11		property.
12		(35 ILCS 120/1) (from Ch. 120, par. 440)
13		Sec. 1. Definitions. "Sale at retail" means any transfer
14		of the ownership of, the or title to, the possession or control
15		of, the right to possess or control, or a license to use
16		tangible personal property to a purchaser, for the purpose of
17		use or consumption, and not for the purpose of resale in any
18		form as tangible personal property to the extent not first
19		subjected to a use for which it was purchased, for a valuable
20		consideration: Provided that the property purchased is deemed
21		to be purchased for the purpose of resale, despite first being
22		used, to the extent to which it is resold as an ingredient of
23		an intentionally produced product or byproduct of

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1		manufacturing. For this purpose, slag produced as an incident
2		to manufacturing pig iron or steel and sold is considered to be
3		an intentionally produced byproduct of manufacturing.
4		Transactions whereby the possession of the property is
5		transferred but the seller retains the title as security for
6		payment of the selling price shall be deemed to be sales.
7		"Sale at retail" shall be construed to include any
8		transfer of the ownership of, the or title to, the possession
9		or control of, the right to possess or control, or a license to
10		use tangible personal property to a purchaser, for use or
11		consumption by any other person to whom such purchaser may
12		transfer the tangible personal property without a valuable
13		consideration, and to include any transfer, whether made for
14		or without a valuable consideration, for resale in any form as
15		tangible personal property unless made in compliance with
16		Section 2c of this Act.
17		Sales of tangible personal property, which property, to
18		the extent not first subjected to a use for which it was
19		purchased, as an ingredient or constituent, goes into and
20		forms a part of tangible personal property subsequently the
21		subject of a "Sale at retail", are not sales at retail as
22		defined in this Act: Provided that the property purchased is
23		deemed to be purchased for the purpose of resale, despite
24		first being used, to the extent to which it is resold as an
25		ingredient of an intentionally produced product or byproduct
26		of manufacturing.

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1		"Sale at retail" shall be construed to include any
2		Illinois florist's sales transaction in which the purchase
3		order is received in Illinois by a florist and the sale is for
4		use or consumption, but the Illinois florist has a florist in
5		another state deliver the property to the purchaser or the
6		purchaser's donee in such other state.
7		Nonreusable tangible personal property that is used by
8		persons engaged in the business of operating a restaurant,
9		cafeteria, or drive-in is a sale for resale when it is
10		transferred to customers in the ordinary course of business as
11		part of the sale of food or beverages and is used to deliver,
12		package, or consume food or beverages, regardless of where
13		consumption of the food or beverages occurs. Examples of those
14		items include, but are not limited to nonreusable, paper and
15		plastic cups, plates, baskets, boxes, sleeves, buckets or
16		other containers, utensils, straws, placemats, napkins, doggie
17		bags, and wrapping or packaging materials that are transferred
18		to customers as part of the sale of food or beverages in the
19		ordinary course of business.
20		The purchase, employment and transfer of such tangible
21		personal property as newsprint and ink for the primary purpose
22		of conveying news (with or without other information) is not a
23		purchase, use or sale of tangible personal property.
24		A person whose activities are organized and conducted
25		primarily as a not-for-profit service enterprise, and who
26		engages in selling tangible personal property at retail

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1		(whether to the public or merely to members and their guests)
2		is engaged in the business of selling tangible personal
3		property at retail with respect to such transactions,
4		excepting only a person organized and operated exclusively for
5		charitable, religious or educational purposes either (1), to
6		the extent of sales by such person to its members, students,
7		patients or inmates of tangible personal property to be used
8		primarily for the purposes of such person, or (2), to the
9		extent of sales by such person of tangible personal property
10		which is not sold or offered for sale by persons organized for
11		profit. The selling of school books and school supplies by
12		schools at retail to students is not "primarily for the
13		purposes of" the school which does such selling. The
14		provisions of this paragraph shall not apply to nor subject to
15		taxation occasional dinners, socials or similar activities of
16		a person organized and operated exclusively for charitable,
17		religious or educational purposes, whether or not such
18		activities are open to the public.
19		A person who is the recipient of a grant or contract under
20		Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
21		serves meals to participants in the federal Nutrition Program
22		for the Elderly in return for contributions established in
23		amount by the individual participant pursuant to a schedule of
24		suggested fees as provided for in the federal Act is not
25		engaged in the business of selling tangible personal property
26		at retail with respect to such transactions.

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1		"Lease" means a transfer of the possession or control of,
2		the right to possess or control, or a license to use, but not
3		title to, tangible personal property for a fixed or
4		indeterminate term for consideration, regardless of the name
5		by which the transaction is called. "Lease" does not include a
6		lease entered into merely as a security agreement that does
7		not involve a transfer of possession or control from the
8		lessor to the lessee.
9		On and after January 1, 2025, the term "sale", when used in
10		this Act, includes a lease.
11		"Purchaser" means anyone who, through a sale at retail,
12		acquires the ownership of, the or title to, the possession or
13		control of, the right to possess or control, or a license to
14		use tangible personal property for a valuable consideration.
15		"Reseller of motor fuel" means any person engaged in the
16		business of selling or delivering or transferring title of
17		motor fuel to another person other than for use or
18		consumption. No person shall act as a reseller of motor fuel
19		within this State without first being registered as a reseller
20		pursuant to Section 2c or a retailer pursuant to Section 2a.
21		"Selling price" or the "amount of sale" means the
22		consideration for a sale valued in money whether received in
23		money or otherwise, including cash, credits, property, other
24		than as hereinafter provided, and services, but, prior to
25		January 1, 2020 and beginning again on January 1, 2022, not
26		including the value of or credit given for traded-in tangible

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1		personal property where the item that is traded-in is of like
2		kind and character as that which is being sold; beginning
3		January 1, 2020 and until January 1, 2022, "selling price"
4		includes the portion of the value of or credit given for
5		traded-in motor vehicles of the First Division as defined in
6		Section 1-146 of the Illinois Vehicle Code of like kind and
7		character as that which is being sold that exceeds $10,000.
8		"Selling price" shall be determined without any deduction on
9		account of the cost of the property sold, the cost of materials
10		used, labor or service cost or any other expense whatsoever,
11		but does not include charges that are added to prices by
12		sellers on account of the seller's tax liability under this
13		Act, or on account of the seller's duty to collect, from the
14		purchaser, the tax that is imposed by the Use Tax Act, or,
15		except as otherwise provided with respect to any cigarette tax
16		imposed by a home rule unit, on account of the seller's tax
17		liability under any local occupation tax administered by the
18		Department, or, except as otherwise provided with respect to
19		any cigarette tax imposed by a home rule unit on account of the
20		seller's duty to collect, from the purchasers, the tax that is
21		imposed under any local use tax administered by the
22		Department. Effective December 1, 1985, "selling price" shall
23		include charges that are added to prices by sellers on account
24		of the seller's tax liability under the Cigarette Tax Act, on
25		account of the sellers' duty to collect, from the purchaser,
26		the tax imposed under the Cigarette Use Tax Act, and on account

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1		of the seller's duty to collect, from the purchaser, any
2		cigarette tax imposed by a home rule unit.
3		The provisions of this paragraph, which provides only for
4		an alternative meaning of "selling price" with respect to the
5		sale of certain motor vehicles incident to the contemporaneous
6		lease of those motor vehicles, continue in effect and are not
7		changed by the tax on leases implemented by this amendatory
8		Act of the 103rd General Assembly. Notwithstanding any law to
9		the contrary, for any motor vehicle, as defined in Section
10		1-146 of the Vehicle Code, that is sold on or after January 1,
11		2015 for the purpose of leasing the vehicle for a defined
12		period that is longer than one year and (1) is a motor vehicle
13		of the second division that: (A) is a self-contained motor
14		vehicle designed or permanently converted to provide living
15		quarters for recreational, camping, or travel use, with direct
16		walk through access to the living quarters from the driver's
17		seat; (B) is of the van configuration designed for the
18		transportation of not less than 7 nor more than 16 passengers;
19		or (C) has a gross vehicle weight rating of 8,000 pounds or
20		less or (2) is a motor vehicle of the first division, "selling
21		price" or "amount of sale" means the consideration received by
22		the lessor pursuant to the lease contract, including amounts
23		due at lease signing and all monthly or other regular payments
24		charged over the term of the lease. Also included in the
25		selling price is any amount received by the lessor from the
26		lessee for the leased vehicle that is not calculated at the

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1		time the lease is executed, including, but not limited to,
2		excess mileage charges and charges for excess wear and tear.
3		For sales that occur in Illinois, with respect to any amount
4		received by the lessor from the lessee for the leased vehicle
5		that is not calculated at the time the lease is executed, the
6		lessor who purchased the motor vehicle does not incur the tax
7		imposed by the Use Tax Act on those amounts, and the retailer
8		who makes the retail sale of the motor vehicle to the lessor is
9		not required to collect the tax imposed by the Use Tax Act or
10		to pay the tax imposed by this Act on those amounts. However,
11		the lessor who purchased the motor vehicle assumes the
12		liability for reporting and paying the tax on those amounts
13		directly to the Department in the same form (Illinois
14		Retailers' Occupation Tax, and local retailers' occupation
15		taxes, if applicable) in which the retailer would have
16		reported and paid such tax if the retailer had accounted for
17		the tax to the Department. For amounts received by the lessor
18		from the lessee that are not calculated at the time the lease
19		is executed, the lessor must file the return and pay the tax to
20		the Department by the due date otherwise required by this Act
21		for returns other than transaction returns. If the retailer is
22		entitled under this Act to a discount for collecting and
23		remitting the tax imposed under this Act to the Department
24		with respect to the sale of the motor vehicle to the lessor,
25		then the right to the discount provided in this Act shall be
26		transferred to the lessor with respect to the tax paid by the

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1		lessor for any amount received by the lessor from the lessee
2		for the leased vehicle that is not calculated at the time the
3		lease is executed; provided that the discount is only allowed
4		if the return is timely filed and for amounts timely paid. The
5		"selling price" of a motor vehicle that is sold on or after
6		January 1, 2015 for the purpose of leasing for a defined period
7		of longer than one year shall not be reduced by the value of or
8		credit given for traded-in tangible personal property owned by
9		the lessor, nor shall it be reduced by the value of or credit
10		given for traded-in tangible personal property owned by the
11		lessee, regardless of whether the trade-in value thereof is
12		assigned by the lessee to the lessor. In the case of a motor
13		vehicle that is sold for the purpose of leasing for a defined
14		period of longer than one year, the sale occurs at the time of
15		the delivery of the vehicle, regardless of the due date of any
16		lease payments. A lessor who incurs a Retailers' Occupation
17		Tax liability on the sale of a motor vehicle coming off lease
18		may not take a credit against that liability for the Use Tax
19		the lessor paid upon the purchase of the motor vehicle (or for
20		any tax the lessor paid with respect to any amount received by
21		the lessor from the lessee for the leased vehicle that was not
22		calculated at the time the lease was executed) if the selling
23		price of the motor vehicle at the time of purchase was
24		calculated using the definition of "selling price" as defined
25		in this paragraph. Notwithstanding any other provision of this
26		Act to the contrary, lessors shall file all returns and make

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1		all payments required under this paragraph to the Department
2		by electronic means in the manner and form as required by the
3		Department. This paragraph does not apply to leases of motor
4		vehicles for which, at the time the lease is entered into, the
5		term of the lease is not a defined period, including leases
6		with a defined initial period with the option to continue the
7		lease on a month-to-month or other basis beyond the initial
8		defined period.
9		The phrase "like kind and character" shall be liberally
10		construed (including but not limited to any form of motor
11		vehicle for any form of motor vehicle, or any kind of farm or
12		agricultural implement for any other kind of farm or
13		agricultural implement), while not including a kind of item
14		which, if sold at retail by that retailer, would be exempt from
15		retailers' occupation tax and use tax as an isolated or
16		occasional sale.
17		"Gross receipts" from the sales of tangible personal
18		property at retail means the total selling price or the amount
19		of such sales, as hereinbefore defined. In the case of charge
20		and time sales, the amount thereof shall be included only as
21		and when payments are received by the seller. In the case of
22		leases, except as otherwise provided in this Act, the amount
23		thereof shall be included only as and when gross receipts are
24		received by the lessor. Receipts or other consideration
25		derived by a seller from the sale, transfer or assignment of
26		accounts receivable to a wholly owned subsidiary will not be

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1		deemed payments prior to the time the purchaser makes payment
2		on such accounts.
3		"Department" means the Department of Revenue.
4		"Person" means any natural individual, firm, partnership,
5		association, joint stock company, joint adventure, public or
6		private corporation, limited liability company, or a receiver,
7		executor, trustee, guardian or other representative appointed
8		by order of any court.
9		The isolated or occasional sale of tangible personal
10		property at retail by a person who does not hold himself out as
11		being engaged (or who does not habitually engage) in selling
12		such tangible personal property at retail, or a sale through a
13		bulk vending machine, does not constitute engaging in a
14		business of selling such tangible personal property at retail
15		within the meaning of this Act; provided that any person who is
16		engaged in a business which is not subject to the tax imposed
17		by this Act because of involving the sale of or a contract to
18		sell real estate or a construction contract to improve real
19		estate or a construction contract to engineer, install, and
20		maintain an integrated system of products, but who, in the
21		course of conducting such business, transfers tangible
22		personal property to users or consumers in the finished form
23		in which it was purchased, and which does not become real
24		estate or was not engineered and installed, under any
25		provision of a construction contract or real estate sale or
26		real estate sales agreement entered into with some other

HB4951 Enrolled - 502 - LRB103 38094 HLH 68226 b
1		person arising out of or because of such nontaxable business,
2		is engaged in the business of selling tangible personal
3		property at retail to the extent of the value of the tangible
4		personal property so transferred. If, in such a transaction, a
5		separate charge is made for the tangible personal property so
6		transferred, the value of such property, for the purpose of
7		this Act, shall be the amount so separately charged, but not
8		less than the cost of such property to the transferor; if no
9		separate charge is made, the value of such property, for the
10		purposes of this Act, is the cost to the transferor of such
11		tangible personal property. Construction contracts for the
12		improvement of real estate consisting of engineering,
13		installation, and maintenance of voice, data, video, security,
14		and all telecommunication systems do not constitute engaging
15		in a business of selling tangible personal property at retail
16		within the meaning of this Act if they are sold at one
17		specified contract price.
18		A person who holds himself or herself out as being engaged
19		(or who habitually engages) in selling tangible personal
20		property at retail is a person engaged in the business of
21		selling tangible personal property at retail hereunder with
22		respect to such sales (and not primarily in a service
23		occupation) notwithstanding the fact that such person designs
24		and produces such tangible personal property on special order
25		for the purchaser and in such a way as to render the property
26		of value only to such purchaser, if such tangible personal

HB4951 Enrolled - 503 - LRB103 38094 HLH 68226 b
1		property so produced on special order serves substantially the
2		same function as stock or standard items of tangible personal
3		property that are sold at retail.
4		Persons who engage in the business of transferring
5		tangible personal property upon the redemption of trading
6		stamps are engaged in the business of selling such property at
7		retail and shall be liable for and shall pay the tax imposed by
8		this Act on the basis of the retail value of the property
9		transferred upon redemption of such stamps.
10		"Bulk vending machine" means a vending machine, containing
11		unsorted confections, nuts, toys, or other items designed
12		primarily to be used or played with by children which, when a
13		coin or coins of a denomination not larger than $0.50 are
14		inserted, are dispensed in equal portions, at random and
15		without selection by the customer.
16		"Remote retailer" means a retailer that does not maintain
17		within this State, directly or by a subsidiary, an office,
18		distribution house, sales house, warehouse or other place of
19		business, or any agent or other representative operating
20		within this State under the authority of the retailer or its
21		subsidiary, irrespective of whether such place of business or
22		agent is located here permanently or temporarily or whether
23		such retailer or subsidiary is licensed to do business in this
24		State.
25		"Marketplace" means a physical or electronic place, forum,
26		platform, application, or other method by which a marketplace

HB4951 Enrolled - 504 - LRB103 38094 HLH 68226 b
1		seller sells or offers to sell items.
2		"Marketplace facilitator" means a person who, pursuant to
3		an agreement with an unrelated third-party marketplace seller,
4		directly or indirectly through one or more affiliates
5		facilitates a retail sale by an unrelated third party
6		marketplace seller by:
7		(1) listing or advertising for sale by the marketplace
8		seller in a marketplace, tangible personal property that
9		is subject to tax under this Act; and
10		(2) either directly or indirectly, through agreements
11		or arrangements with third parties, collecting payment
12		from the customer and transmitting that payment to the
13		marketplace seller regardless of whether the marketplace
14		facilitator receives compensation or other consideration
15		in exchange for its services.
16		A person who provides advertising services, including
17		listing products for sale, is not considered a marketplace
18		facilitator, so long as the advertising service platform or
19		forum does not engage, directly or indirectly through one or
20		more affiliated persons, in the activities described in
21		paragraph (2) of this definition of "marketplace facilitator".
22		"Marketplace facilitator" does not include any person
23		licensed under the Auction License Act. This exemption does
24		not apply to any person who is an Internet auction listing
25		service, as defined by the Auction License Act.
26		"Marketplace seller" means a person that makes sales

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1		through a marketplace operated by an unrelated third party
2		marketplace facilitator.
3		(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20;
4		102-353, eff. 1-1-22; 102-634, eff. 8-27-21; 102-813, eff.
5		5-13-22.)
6		(35 ILCS 120/1.05 new)
7		Sec. 1.05. Legislative intent; leases. It is the intent of
8		the General Assembly in enacting this amendatory Act of the
9		103rd General Assembly to apply the tax imposed under this
10		Act, except as otherwise provided in this Act, to persons
11		engaged in the business of leasing at retail tangible personal
12		property, other than motor vehicles, watercraft, aircraft, and
13		semitrailers, as defined in Section 1-187 of the Illinois
14		Vehicle Code, that are required to be registered with an
15		agency of this State, leased at retail from a retailer, for
16		leases in effect, entered into, or renewed on or after January
17		1, 2025.
18		(35 ILCS 120/2) (from Ch. 120, par. 441)
19		Sec. 2. Tax imposed.
20		(a) A tax is imposed upon persons engaged in the business
21		of selling at retail, which, on and after January 1, 2025,
22		includes leasing, tangible personal property, including
23		computer software, and including photographs, negatives, and
24		positives that are the product of photoprocessing, but not

HB4951 Enrolled - 506 - LRB103 38094 HLH 68226 b
1		including products of photoprocessing produced for use in
2		motion pictures for public commercial exhibition. Beginning
3		January 1, 2001, prepaid telephone calling arrangements shall
4		be considered tangible personal property subject to the tax
5		imposed under this Act regardless of the form in which those
6		arrangements may be embodied, transmitted, or fixed by any
7		method now known or hereafter developed.
8		The imposition of the tax under this Act on persons
9		engaged in the business of leasing tangible personal property
10		applies to leases in effect, entered into, or renewed on or
11		after January 1, 2025. In the case of leases, except as
12		otherwise provided in this Act, the lessor must remit, for
13		each tax return period, only the tax applicable to that part of
14		the selling price actually received during such tax return
15		period.
16		The inclusion of leases in the tax imposed under this Act
17		by this amendatory Act of the 103rd General Assembly does not,
18		however, extend to motor vehicles, watercraft, aircraft, and
19		semitrailers, as defined in Section 1-187 of the Illinois
20		Vehicle Code, that are required to be registered with an
21		agency of this State. The taxation of these items shall
22		continue in effect as prior to the effective date of the
23		changes made to this Section by this amendatory Act of the
24		103rd General Assembly (i.e., dealers owe retailers'
25		occupation tax, lessors owe use tax, and lessees are not
26		subject to retailers' occupation or use tax).

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1		Sales of (1) electricity delivered to customers by wire;
2		(2) natural or artificial gas that is delivered to customers
3		through pipes, pipelines, or mains; and (3) water that is
4		delivered to customers through pipes, pipelines, or mains are
5		not subject to tax under this Act. The provisions of this
6		amendatory Act of the 98th General Assembly are declaratory of
7		existing law as to the meaning and scope of this Act.
8		(b) Beginning on January 1, 2021, a remote retailer is
9		engaged in the occupation of selling at retail in Illinois for
10		purposes of this Act, if:
11		(1) the cumulative gross receipts from sales of
12		tangible personal property to purchasers in Illinois are
13		$100,000 or more; or
14		(2) the retailer enters into 200 or more separate
15		transactions for the sale of tangible personal property to
16		purchasers in Illinois.
17		Remote retailers that meet or exceed the threshold in
18		either paragraph (1) or (2) above shall be liable for all
19		applicable State retailers' and locally imposed retailers'
20		occupation taxes administered by the Department on all retail
21		sales to Illinois purchasers.
22		The remote retailer 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 criteria of either
25		paragraph (1) or (2) of this subsection for the preceding
26		12-month period. If the retailer meets the criteria of either

HB4951 Enrolled - 508 - LRB103 38094 HLH 68226 b
1		paragraph (1) or (2) for a 12-month period, he or she is
2		considered a retailer maintaining a place of business in this
3		State and is required to collect and remit the tax imposed
4		under this Act and all retailers' occupation tax imposed by
5		local taxing jurisdictions in Illinois, provided such local
6		taxes are administered by the Department, and to file all
7		applicable returns for one year. At the end of that one-year
8		period, the retailer shall determine whether the retailer met
9		the criteria of either paragraph (1) or (2) for the preceding
10		12-month period. If the retailer met the criteria in either
11		paragraph (1) or (2) for the preceding 12-month period, he or
12		she is considered a retailer maintaining a place of business
13		in this State and is required to collect and remit all
14		applicable State and local retailers' occupation taxes and
15		file returns for the subsequent year. If, at the end of a
16		one-year period, a retailer that was required to collect and
17		remit the tax imposed under this Act determines that he or she
18		did not meet the criteria in either paragraph (1) or (2) during
19		the preceding 12-month period, then the retailer shall
20		subsequently determine on a quarterly basis, ending on the
21		last day of March, June, September, and December, whether he
22		or she meets the criteria of either paragraph (1) or (2) for
23		the preceding 12-month period.
24		(b-5) For the purposes of this Section, neither the gross
25		receipts from nor the number of separate transactions for
26		sales of tangible personal property to purchasers in Illinois

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1		that a remote retailer makes through a marketplace facilitator
2		shall be included for the purposes of determining whether he
3		or she has met the thresholds of subsection (b) of this Section
4		so long as the remote retailer has received certification from
5		the marketplace facilitator that the marketplace facilitator
6		is legally responsible for payment of tax on such sales.
7		(b-10) A remote retailer required to collect taxes imposed
8		under the Use Tax Act on retail sales made to Illinois
9		purchasers shall be liable to the Department for such taxes,
10		except when the remote retailer is relieved of the duty to
11		remit such taxes by virtue of having paid to the Department
12		taxes imposed by this Act in accordance with this Section upon
13		his or her gross receipts from such sales.
14		(c) Marketplace facilitators engaged in the business of
15		selling at retail tangible personal property in Illinois.
16		Beginning January 1, 2021, a marketplace facilitator is
17		engaged in the occupation of selling at retail tangible
18		personal property in Illinois for purposes of this Act if,
19		during the previous 12-month period:
20		(1) the cumulative gross receipts from sales of
21		tangible personal property on its own behalf or on behalf
22		of marketplace sellers to purchasers in Illinois equals
23		$100,000 or more; or
24		(2) the marketplace facilitator enters into 200 or
25		more separate transactions on its own behalf or on behalf
26		of marketplace sellers for the sale of tangible personal

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1		property to purchasers in Illinois, regardless of whether
2		the marketplace facilitator or marketplace sellers for
3		whom such sales are facilitated are registered as
4		retailers in this State.
5		A marketplace facilitator who meets either paragraph (1)
6		or (2) of this subsection is required to remit the applicable
7		State retailers' occupation taxes under this Act and local
8		retailers' occupation taxes administered by the Department on
9		all taxable sales of tangible personal property made by the
10		marketplace facilitator or facilitated for marketplace sellers
11		to customers in this State. A marketplace facilitator selling
12		or facilitating the sale of tangible personal property to
13		customers in this State is subject to all applicable
14		procedures and requirements of this Act.
15		The marketplace facilitator shall determine on a quarterly
16		basis, ending on the last day of March, June, September, and
17		December, whether he or she meets the criteria of either
18		paragraph (1) or (2) of this subsection for the preceding
19		12-month period. If the marketplace facilitator meets the
20		criteria of either paragraph (1) or (2) for a 12-month period,
21		he or she is considered a retailer maintaining a place of
22		business in this State and is required to remit the tax imposed
23		under this Act and all retailers' occupation tax imposed by
24		local taxing jurisdictions in Illinois, provided such local
25		taxes are administered by the Department, and to file all
26		applicable returns for one year. At the end of that one-year

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1		period, the marketplace facilitator shall determine whether it
2		met the criteria of either paragraph (1) or (2) for the
3		preceding 12-month period. If the marketplace facilitator met
4		the criteria in either paragraph (1) or (2) for the preceding
5		12-month period, it is considered a retailer maintaining a
6		place of business in this State and is required to collect and
7		remit all applicable State and local retailers' occupation
8		taxes and file returns for the subsequent year. If at the end
9		of a one-year period a marketplace facilitator that was
10		required to collect and remit the tax imposed under this Act
11		determines that he or she did not meet the 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 he or she meets the criteria
16		of either paragraph (1) or (2) for the preceding 12-month
17		period.
18		A marketplace facilitator shall be entitled to any
19		credits, deductions, or adjustments to the sales price
20		otherwise provided to the marketplace seller, in addition to
21		any such adjustments provided directly to the marketplace
22		facilitator. This Section pertains to, but is not limited to,
23		adjustments such as discounts, coupons, and rebates. In
24		addition, a marketplace facilitator shall be entitled to the
25		retailers' discount provided in Section 3 of the Retailers'
26		Occupation Tax Act on all marketplace sales, and the

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1		marketplace seller shall not include sales made through a
2		marketplace facilitator when computing any retailers' discount
3		on remaining sales. Marketplace facilitators shall report and
4		remit the applicable State and local retailers' occupation
5		taxes on sales facilitated for marketplace sellers separately
6		from any sales or use tax collected on taxable retail sales
7		made directly by the marketplace facilitator or its
8		affiliates.
9		The marketplace facilitator is liable for the remittance
10		of all applicable State retailers' occupation taxes under this
11		Act and local retailers' occupation taxes administered by the
12		Department on sales through the marketplace and is subject to
13		audit on all such sales. The Department shall not audit
14		marketplace sellers for their marketplace sales where a
15		marketplace facilitator remitted the applicable State and
16		local retailers' occupation taxes unless the marketplace
17		facilitator seeks relief as a result of incorrect information
18		provided to the marketplace facilitator by a marketplace
19		seller as set forth in this Section. The marketplace
20		facilitator shall not be held liable for tax on any sales made
21		by a marketplace seller that take place outside of the
22		marketplace and which are not a part of any agreement between a
23		marketplace facilitator and a marketplace seller. In addition,
24		marketplace facilitators shall not be held liable to State and
25		local governments of Illinois for having charged and remitted
26		an incorrect amount of State and local retailers' occupation

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1		tax if, at the time of the sale, the tax is computed based on
2		erroneous data provided by the State in database files on tax
3		rates, boundaries, or taxing jurisdictions or incorrect
4		information provided to the marketplace facilitator by the
5		marketplace seller.
6		(d) A marketplace facilitator shall:
7		(1) certify to each marketplace seller that the
8		marketplace facilitator assumes the rights and duties of a
9		retailer under this Act with respect to sales made by the
10		marketplace seller through the marketplace; and
11		(2) remit taxes imposed by this Act as required by
12		this Act for sales made through the marketplace.
13		(e) A marketplace seller shall retain books and records
14		for all sales made through a marketplace in accordance with
15		the requirements of this Act.
16		(f) A marketplace facilitator is subject to audit on all
17		marketplace sales for which it is considered to be the
18		retailer, but shall not be liable for tax or subject to audit
19		on sales made by marketplace sellers outside of the
20		marketplace.
21		(g) A marketplace facilitator required to collect taxes
22		imposed under the Use Tax Act on marketplace sales made to
23		Illinois purchasers shall be liable to the Department for such
24		taxes, except when the marketplace facilitator is relieved of
25		the duty to remit such taxes by virtue of having paid to the
26		Department taxes imposed by this Act in accordance with this

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1		Section upon his or her gross receipts from such sales.
2		(h) Nothing in this Section shall allow the Department to
3		collect retailers' occupation taxes from both the marketplace
4		facilitator and marketplace seller on the same transaction.
5		(i) If, for any reason, the Department is prohibited from
6		enforcing the marketplace facilitator's duty under this Act to
7		remit taxes pursuant to this Section, the duty to remit such
8		taxes remains with the marketplace seller.
9		(j) Nothing in this Section affects the obligation of any
10		consumer to remit use tax for any taxable transaction for
11		which a certified service provider acting on behalf of a
12		remote retailer or a marketplace facilitator does not collect
13		and remit the appropriate tax.
14		(k) Nothing in this Section shall allow the Department to
15		collect the retailers' occupation tax from both the
16		marketplace facilitator and the marketplace seller.
17		(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
18		(35 ILCS 120/2-5)
19		Sec. 2-5. Exemptions. Gross receipts from proceeds from
20		the sale, which, on and after January 1, 2025, includes the
21		lease, of the following tangible personal property are exempt
22		from the tax imposed by this Act:
23		(1) Farm chemicals.
24		(2) Farm machinery and equipment, both new and used,
25		including that manufactured on special order, certified by

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1		the purchaser to be used primarily for production
2		agriculture or State or federal agricultural programs,
3		including individual replacement parts for the machinery
4		and equipment, including machinery and equipment purchased
5		for lease, and including implements of husbandry defined
6		in Section 1-130 of the Illinois Vehicle Code, farm
7		machinery and agricultural chemical and fertilizer
8		spreaders, and nurse wagons required to be registered
9		under Section 3-809 of the Illinois Vehicle Code, but
10		excluding other motor vehicles required to be registered
11		under the Illinois Vehicle Code. Horticultural polyhouses
12		or hoop houses used for propagating, growing, or
13		overwintering plants shall be considered farm machinery
14		and equipment under this item (2). Agricultural chemical
15		tender tanks and dry boxes shall include units sold
16		separately from a motor vehicle required to be licensed
17		and units sold mounted on a motor vehicle required to be
18		licensed, if the selling price of the tender is separately
19		stated.
20		Farm machinery and equipment shall include precision
21		farming equipment that is installed or purchased to be
22		installed on farm machinery and equipment including, but
23		not limited to, tractors, harvesters, sprayers, planters,
24		seeders, or spreaders. Precision farming equipment
25		includes, but is not limited to, soil testing sensors,
26		computers, monitors, software, global positioning and

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1		mapping systems, and other such equipment.
2		Farm machinery and equipment also includes computers,
3		sensors, software, and related equipment used primarily in
4		the computer-assisted operation of production agriculture
5		facilities, equipment, and activities such as, but not
6		limited to, the collection, monitoring, and correlation of
7		animal and crop data for the purpose of formulating animal
8		diets and agricultural chemicals.
9		Beginning on January 1, 2024, farm machinery and
10		equipment also includes electrical power generation
11		equipment used primarily for production agriculture.
12		This item (2) is exempt from the provisions of Section
13		2-70.
14		(3) Until July 1, 2003, distillation machinery and
15		equipment, sold as a unit or kit, assembled or installed
16		by the retailer, certified by the user to be used only for
17		the production of ethyl alcohol that will be used for
18		consumption as motor fuel or as a component of motor fuel
19		for the personal use of the user, and not subject to sale
20		or resale.
21		(4) Until July 1, 2003 and beginning again September
22		1, 2004 through August 30, 2014, graphic arts machinery
23		and equipment, including repair and replacement parts,
24		both new and used, and including that manufactured on
25		special order or purchased for lease, certified by the
26		purchaser to be used primarily for graphic arts

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1		production. Equipment includes chemicals or chemicals
2		acting as catalysts but only if the chemicals or chemicals
3		acting as catalysts effect a direct and immediate change
4		upon a graphic arts product. Beginning on July 1, 2017,
5		graphic arts machinery and equipment is included in the
6		manufacturing and assembling machinery and equipment
7		exemption under paragraph (14).
8		(5) A motor vehicle that is used for automobile
9		renting, as defined in the Automobile Renting Occupation
10		and Use Tax Act. This paragraph is exempt from the
11		provisions of Section 2-70.
12		(6) Personal property sold by a teacher-sponsored
13		student organization affiliated with an elementary or
14		secondary school located in Illinois.
15		(7) Until July 1, 2003, proceeds of that portion of
16		the selling price of a passenger car the sale of which is
17		subject to the Replacement Vehicle Tax.
18		(8) Personal property sold to an Illinois county fair
19		association for use in conducting, operating, or promoting
20		the county fair.
21		(9) Personal property sold to a not-for-profit arts or
22		cultural organization that establishes, by proof required
23		by the Department by rule, that it has received an
24		exemption under Section 501(c)(3) of the Internal Revenue
25		Code and that is organized and operated primarily for the
26		presentation or support of arts or cultural programming,

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1		activities, or services. These organizations include, but
2		are not limited to, music and dramatic arts organizations
3		such as symphony orchestras and theatrical groups, arts
4		and cultural service organizations, local arts councils,
5		visual arts organizations, and media arts organizations.
6		On and after July 1, 2001 (the effective date of Public Act
7		92-35), however, an entity otherwise eligible for this
8		exemption shall not make tax-free purchases unless it has
9		an active identification number issued by the Department.
10		(10) Personal property sold by a corporation, society,
11		association, foundation, institution, or organization,
12		other than a limited liability company, that is organized
13		and operated as a not-for-profit service enterprise for
14		the benefit of persons 65 years of age or older if the
15		personal property was not purchased by the enterprise for
16		the purpose of resale by the enterprise.
17		(11) Except as otherwise provided in this Section,
18		personal property sold to a governmental body, to a
19		corporation, society, association, foundation, or
20		institution organized and operated exclusively for
21		charitable, religious, or educational purposes, or to a
22		not-for-profit corporation, society, association,
23		foundation, institution, or organization that has no
24		compensated officers or employees and that is organized
25		and operated primarily for the recreation of persons 55
26		years of age or older. A limited liability company may

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1		qualify for the exemption under this paragraph only if the
2		limited liability company is organized and operated
3		exclusively for educational purposes. On and after July 1,
4		1987, however, no entity otherwise eligible for this
5		exemption shall make tax-free purchases unless it has an
6		active identification number issued by the Department.
7		(12) (Blank).
8		(12-5) On and after July 1, 2003 and through June 30,
9		2004, motor vehicles of the second division with a gross
10		vehicle weight in excess of 8,000 pounds that are subject
11		to the commercial distribution fee imposed under Section
12		3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
13		2004 and through June 30, 2005, the use in this State of
14		motor vehicles of the second division: (i) with a gross
15		vehicle weight rating in excess of 8,000 pounds; (ii) that
16		are subject to the commercial distribution fee imposed
17		under Section 3-815.1 of the Illinois Vehicle Code; and
18		(iii) that are primarily used for commercial purposes.
19		Through June 30, 2005, this exemption applies to repair
20		and replacement parts added after the initial purchase of
21		such a motor vehicle if that motor vehicle is used in a
22		manner that would qualify for the rolling stock exemption
23		otherwise provided for in this Act. For purposes of this
24		paragraph, "used for commercial purposes" means the
25		transportation of persons or property in furtherance of
26		any commercial or industrial enterprise whether for-hire

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1		or not.
2		(13) Proceeds from sales to owners or , lessors,
3		lessees, or shippers of tangible personal property that is
4		utilized by interstate carriers for hire for use as
5		rolling stock moving in interstate commerce and equipment
6		operated by a telecommunications provider, licensed as a
7		common carrier by the Federal Communications Commission,
8		which is permanently installed in or affixed to aircraft
9		moving in interstate commerce.
10		(14) Machinery and equipment that will be used by the
11		purchaser, or a lessee of the purchaser, primarily in the
12		process of manufacturing or assembling tangible personal
13		property for wholesale or retail sale or lease, whether
14		the sale or lease is made directly by the manufacturer or
15		by some other person, whether the materials used in the
16		process are owned by the manufacturer or some other
17		person, or whether the sale or lease is made apart from or
18		as an incident to the seller's engaging in the service
19		occupation of producing machines, tools, dies, jigs,
20		patterns, gauges, or other similar items of no commercial
21		value on special order for a particular purchaser. The
22		exemption provided by this paragraph (14) does not include
23		machinery and equipment used in (i) the generation of
24		electricity for wholesale or retail sale; (ii) the
25		generation or treatment of natural or artificial gas for
26		wholesale or retail sale that is delivered to customers

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1		through pipes, pipelines, or mains; or (iii) the treatment
2		of water for wholesale or retail sale that is delivered to
3		customers through pipes, pipelines, or mains. The
4		provisions of Public Act 98-583 are declaratory of
5		existing law as to the meaning and scope of this
6		exemption. Beginning on July 1, 2017, the exemption
7		provided by this paragraph (14) includes, but is not
8		limited to, graphic arts machinery and equipment, as
9		defined in paragraph (4) of this Section.
10		(15) Proceeds of mandatory service charges separately
11		stated on customers' bills for purchase and consumption of
12		food and beverages, to the extent that the proceeds of the
13		service charge are in fact turned over as tips or as a
14		substitute for tips to the employees who participate
15		directly in preparing, serving, hosting or cleaning up the
16		food or beverage function with respect to which the
17		service charge is imposed.
18		(16) Tangible personal property sold to a purchaser if
19		the purchaser is exempt from use tax by operation of
20		federal law. This paragraph is exempt from the provisions
21		of Section 2-70.
22		(17) Tangible personal property sold to a common
23		carrier by rail or motor that receives the physical
24		possession of the property in Illinois and that transports
25		the property, or shares with another common carrier in the
26		transportation of the property, out of Illinois on a

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1		standard uniform bill of lading showing the seller of the
2		property as the shipper or consignor of the property to a
3		destination outside Illinois, for use outside Illinois.
4		(18) Legal tender, currency, medallions, or gold or
5		silver coinage issued by the State of Illinois, the
6		government of the United States of America, or the
7		government of any foreign country, and bullion.
8		(19) Until July 1, 2003, oil field exploration,
9		drilling, and production equipment, including (i) rigs and
10		parts of rigs, rotary rigs, cable tool rigs, and workover
11		rigs, (ii) pipe and tubular goods, including casing and
12		drill strings, (iii) pumps and pump-jack units, (iv)
13		storage tanks and flow lines, (v) any individual
14		replacement part for oil field exploration, drilling, and
15		production equipment, and (vi) machinery and equipment
16		purchased for lease; but excluding motor vehicles required
17		to be registered under the Illinois Vehicle Code.
18		(20) Photoprocessing machinery and equipment,
19		including repair and replacement parts, both new and used,
20		including that manufactured on special order, certified by
21		the purchaser to be used primarily for photoprocessing,
22		and including photoprocessing machinery and equipment
23		purchased for lease.
24		(21) Until July 1, 2028, coal and aggregate
25		exploration, mining, off-highway hauling, processing,
26		maintenance, and reclamation equipment, including

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1		replacement parts and equipment, and including equipment
2		purchased for lease, but excluding motor vehicles required
3		to be registered under the Illinois Vehicle Code. The
4		changes made to this Section by Public Act 97-767 apply on
5		and after July 1, 2003, but no claim for credit or refund
6		is allowed on or after August 16, 2013 (the effective date
7		of Public Act 98-456) for such taxes paid during the
8		period beginning July 1, 2003 and ending on August 16,
9		2013 (the effective date of Public Act 98-456).
10		(22) Until June 30, 2013, fuel and petroleum products
11		sold to or used by an air carrier, certified by the carrier
12		to be used for consumption, shipment, or storage in the
13		conduct of its business as an air common carrier, for a
14		flight destined for or returning from a location or
15		locations outside the United States without regard to
16		previous or subsequent domestic stopovers.
17		Beginning July 1, 2013, fuel and petroleum products
18		sold to or used by an air carrier, certified by the carrier
19		to be used for consumption, shipment, or storage in the
20		conduct of its business as an air common carrier, for a
21		flight that (i) is engaged in foreign trade or is engaged
22		in trade between the United States and any of its
23		possessions and (ii) transports at least one individual or
24		package for hire from the city of origination to the city
25		of final destination on the same aircraft, without regard
26		to a change in the flight number of that aircraft.

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1		(23) A transaction in which the purchase order is
2		received by a florist who is located outside Illinois, but
3		who has a florist located in Illinois deliver the property
4		to the purchaser or the purchaser's donee in Illinois.
5		(24) Fuel consumed or used in the operation of ships,
6		barges, or vessels that are used primarily in or for the
7		transportation of property or the conveyance of persons
8		for hire on rivers bordering on this State if the fuel is
9		delivered by the seller to the purchaser's barge, ship, or
10		vessel while it is afloat upon that bordering river.
11		(25) Except as provided in item (25-5) of this
12		Section, a motor vehicle sold in this State to a
13		nonresident even though the motor vehicle is delivered to
14		the nonresident in this State, if the motor vehicle is not
15		to be titled in this State, and if a drive-away permit is
16		issued to the motor vehicle as provided in Section 3-603
17		of the Illinois Vehicle Code or if the nonresident
18		purchaser has vehicle registration plates to transfer to
19		the motor vehicle upon returning to his or her home state.
20		The issuance of the drive-away permit or having the
21		out-of-state registration plates to be transferred is
22		prima facie evidence that the motor vehicle will not be
23		titled in this State.
24		(25-5) The exemption under item (25) does not apply if
25		the state in which the motor vehicle will be titled does
26		not allow a reciprocal exemption for a motor vehicle sold

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1		and delivered in that state to an Illinois resident but
2		titled in Illinois. The tax collected under this Act on
3		the sale of a motor vehicle in this State to a resident of
4		another state that does not allow a reciprocal exemption
5		shall be imposed at a rate equal to the state's rate of tax
6		on taxable property in the state in which the purchaser is
7		a resident, except that the tax shall not exceed the tax
8		that would otherwise be imposed under this Act. At the
9		time of the sale, the purchaser shall execute a statement,
10		signed under penalty of perjury, of his or her intent to
11		title the vehicle in the state in which the purchaser is a
12		resident within 30 days after the sale and of the fact of
13		the payment to the State of Illinois of tax in an amount
14		equivalent to the state's rate of tax on taxable property
15		in his or her state of residence and shall submit the
16		statement to the appropriate tax collection agency in his
17		or her state of residence. In addition, the retailer must
18		retain a signed copy of the statement in his or her
19		records. Nothing in this item shall be construed to
20		require the removal of the vehicle from this state
21		following the filing of an intent to title the vehicle in
22		the purchaser's state of residence if the purchaser titles
23		the vehicle in his or her state of residence within 30 days
24		after the date of sale. The tax collected under this Act in
25		accordance with this item (25-5) shall be proportionately
26		distributed as if the tax were collected at the 6.25%

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1		general rate imposed under this Act.
2		(25-7) Beginning on July 1, 2007, no tax is imposed
3		under this Act on the sale of an aircraft, as defined in
4		Section 3 of the Illinois Aeronautics Act, if all of the
5		following conditions are met:
6		(1) the aircraft leaves this State within 15 days
7		after the later of either the issuance of the final
8		billing for the sale 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 CFR 91.407;
13		(2) the aircraft is not based or registered in
14		this State after the sale of the aircraft; and
15		(3) the seller retains in his or her books and
16		records and provides to the Department a signed and
17		dated certification from the purchaser, on a form
18		prescribed by the Department, certifying that the
19		requirements of this item (25-7) are met. The
20		certificate must also include the name and address of
21		the purchaser, the address of the location where the
22		aircraft is to be titled or registered, the address of
23		the primary physical location of the aircraft, and
24		other information that the Department may reasonably
25		require.
26		For purposes of this item (25-7):

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1		"Based in this State" means hangared, stored, or
2		otherwise used, excluding post-sale customizations as
3		defined in this Section, for 10 or more days in each
4		12-month period immediately following the date of the sale
5		of the aircraft.
6		"Registered in this State" means an aircraft
7		registered with the Department of Transportation,
8		Aeronautics Division, or titled or registered with the
9		Federal Aviation Administration to an address located in
10		this State.
11		This paragraph (25-7) is exempt from the provisions of
12		Section 2-70.
13		(26) Semen used for artificial insemination of
14		livestock for direct agricultural production.
15		(27) Horses, or interests in horses, registered with
16		and meeting the requirements of any of the Arabian Horse
17		Club Registry of America, Appaloosa Horse Club, American
18		Quarter Horse Association, United States Trotting
19		Association, or Jockey Club, as appropriate, used for
20		purposes of breeding or racing for prizes. This item (27)
21		is exempt from the provisions of Section 2-70, and the
22		exemption provided for under this item (27) applies for
23		all periods beginning May 30, 1995, but no claim for
24		credit or refund is allowed on or after January 1, 2008
25		(the effective date of Public Act 95-88) for such taxes
26		paid during the period beginning May 30, 2000 and ending

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1		on January 1, 2008 (the effective date of Public Act
2		95-88).
3		(28) Computers and communications equipment utilized
4		for any hospital purpose and equipment used in the
5		diagnosis, analysis, or treatment of hospital patients
6		sold to a lessor who leases the equipment, under a lease of
7		one year or longer executed or in effect at the time of the
8		purchase, to a hospital that has been issued an active tax
9		exemption identification number by the Department under
10		Section 1g of this Act.
11		(29) Personal property sold to a lessor who leases the
12		property, under a lease of one year or longer executed or
13		in effect at the time of the purchase, to a governmental
14		body that has been issued an active tax exemption
15		identification number by the Department under Section 1g
16		of this Act.
17		(30) 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		donated for disaster relief to be used in a State or
21		federally declared disaster area in Illinois or bordering
22		Illinois by a manufacturer or retailer that is registered
23		in this State to a corporation, society, association,
24		foundation, or institution that has been issued a sales
25		tax exemption identification number by the Department that
26		assists victims of the disaster who reside within the

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1		declared disaster area.
2		(31) Beginning with taxable years ending on or after
3		December 31, 1995 and ending with taxable years ending on
4		or before December 31, 2004, personal property that is
5		used in the performance of infrastructure repairs in this
6		State, including, but not limited to, municipal roads and
7		streets, access roads, bridges, sidewalks, waste disposal
8		systems, water and sewer line extensions, water
9		distribution and purification facilities, storm water
10		drainage and retention facilities, and sewage treatment
11		facilities, resulting from a State or federally declared
12		disaster in Illinois or bordering Illinois when such
13		repairs are initiated on facilities located in the
14		declared disaster area within 6 months after the disaster.
15		(32) Beginning July 1, 1999, game or game birds sold
16		at a "game breeding and hunting preserve area" as that
17		term is used in the Wildlife Code. This paragraph is
18		exempt from the provisions of Section 2-70.
19		(33) A motor vehicle, as that term is defined in
20		Section 1-146 of the Illinois Vehicle Code, that is
21		donated to a corporation, limited liability company,
22		society, association, foundation, or institution that is
23		determined by the Department to be organized and operated
24		exclusively for educational purposes. For purposes of this
25		exemption, "a corporation, limited liability company,
26		society, association, foundation, or institution organized

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1		and operated exclusively for educational purposes" means
2		all tax-supported public schools, private schools that
3		offer systematic instruction in useful branches of
4		learning by methods common to public schools and that
5		compare favorably in their scope and intensity with the
6		course of study presented in tax-supported schools, and
7		vocational or technical schools or institutes organized
8		and operated exclusively to provide a course of study of
9		not less than 6 weeks duration and designed to prepare
10		individuals to follow a trade or to pursue a manual,
11		technical, mechanical, industrial, business, or commercial
12		occupation.
13		(34) Beginning January 1, 2000, personal property,
14		including food, purchased through fundraising events for
15		the benefit of a public or private elementary or secondary
16		school, a group of those schools, or one or more school
17		districts if the events are sponsored by an entity
18		recognized by the school district that consists primarily
19		of volunteers and includes parents and teachers of the
20		school children. This paragraph does not apply to
21		fundraising events (i) for the benefit of private home
22		instruction or (ii) for which the fundraising entity
23		purchases the personal property sold at the events from
24		another individual or entity that sold the property for
25		the purpose of resale by the fundraising entity and that
26		profits from the sale to the fundraising entity. This

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1		paragraph is exempt from the provisions of Section 2-70.
2		(35) Beginning January 1, 2000 and through December
3		31, 2001, new or used automatic vending machines that
4		prepare and serve hot food and beverages, including
5		coffee, soup, and other items, and replacement parts for
6		these machines. Beginning January 1, 2002 and through June
7		30, 2003, machines and parts for machines used in
8		commercial, coin-operated amusement and vending business
9		if a use or occupation tax is paid on the gross receipts
10		derived from the use of the commercial, coin-operated
11		amusement and vending machines. This paragraph is exempt
12		from the provisions of Section 2-70.
13		(35-5) Beginning August 23, 2001 and through June 30,
14		2016, food for human consumption that is to be consumed
15		off the premises where it is sold (other than alcoholic
16		beverages, soft drinks, and food that has been prepared
17		for immediate consumption) and prescription and
18		nonprescription medicines, drugs, medical appliances, and
19		insulin, urine testing materials, syringes, and needles
20		used by diabetics, for human use, when purchased for use
21		by a person receiving medical assistance under Article V
22		of the Illinois Public Aid Code who resides in a licensed
23		long-term care facility, as defined in the Nursing Home
24		Care Act, or a licensed facility as defined in the ID/DD
25		Community Care Act, the MC/DD Act, or the Specialized
26		Mental Health Rehabilitation Act of 2013.

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1		(36) Beginning August 2, 2001, computers and
2		communications equipment utilized for any hospital purpose
3		and equipment used in the diagnosis, analysis, or
4		treatment of hospital patients sold to a lessor who leases
5		the equipment, under a lease of one year or longer
6		executed or in effect at the time of the purchase, to a
7		hospital that has been issued an active tax exemption
8		identification number by the Department under Section 1g
9		of this Act. This paragraph is exempt from the provisions
10		of Section 2-70.
11		(37) Beginning August 2, 2001, personal property sold
12		to a lessor who leases the property, under a lease of one
13		year or longer executed or in effect at the time of the
14		purchase, to a governmental body that has been issued an
15		active tax exemption identification number by the
16		Department under Section 1g of this Act. This paragraph is
17		exempt from the provisions of Section 2-70.
18		(38) Beginning on January 1, 2002 and through June 30,
19		2016, tangible personal property purchased from an
20		Illinois retailer by a taxpayer engaged in centralized
21		purchasing activities in Illinois who will, upon receipt
22		of the property in Illinois, temporarily store the
23		property in Illinois (i) for the purpose of subsequently
24		transporting it outside this State for use or consumption
25		thereafter solely outside this State or (ii) for the
26		purpose of being processed, fabricated, or manufactured

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1		into, attached to, or incorporated into other tangible
2		personal property to be transported outside this State and
3		thereafter used or consumed solely outside this State. The
4		Director of Revenue shall, pursuant to rules adopted in
5		accordance with the Illinois Administrative Procedure Act,
6		issue a permit to any taxpayer in good standing with the
7		Department who is eligible for the exemption under this
8		paragraph (38). The permit issued under this paragraph
9		(38) shall authorize the holder, to the extent and in the
10		manner specified in the rules adopted under this Act, to
11		purchase tangible personal property from a retailer exempt
12		from the taxes imposed by this Act. Taxpayers shall
13		maintain all necessary books and records to substantiate
14		the use and consumption of all such tangible personal
15		property outside of the State of Illinois.
16		(39) Beginning January 1, 2008, tangible personal
17		property used in the construction or maintenance of a
18		community water supply, as defined under Section 3.145 of
19		the Environmental Protection Act, that is operated by a
20		not-for-profit corporation that holds a valid water supply
21		permit issued under Title IV of the Environmental
22		Protection Act. This paragraph is exempt from the
23		provisions of Section 2-70.
24		(40) Beginning January 1, 2010 and continuing through
25		December 31, 2029, materials, parts, equipment,
26		components, and furnishings incorporated into or upon an

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1		aircraft as part of the modification, refurbishment,
2		completion, replacement, repair, or maintenance of the
3		aircraft. This exemption includes consumable supplies used
4		in the modification, refurbishment, completion,
5		replacement, repair, and maintenance of aircraft. However,
6		until January 1, 2024, this exemption excludes any
7		materials, parts, equipment, components, and consumable
8		supplies used in the modification, replacement, repair,
9		and maintenance of aircraft engines or power plants,
10		whether such engines or power plants are installed or
11		uninstalled upon any such aircraft. "Consumable supplies"
12		include, but are not limited to, adhesive, tape,
13		sandpaper, general purpose lubricants, cleaning solution,
14		latex gloves, and protective films.
15		Beginning January 1, 2010 and continuing through
16		December 31, 2023, this exemption applies only to the sale
17		of qualifying tangible personal property to persons who
18		modify, refurbish, complete, replace, or maintain an
19		aircraft and who (i) hold an Air Agency Certificate and
20		are empowered to operate an approved repair station by the
21		Federal Aviation Administration, (ii) have a Class IV
22		Rating, and (iii) conduct operations in accordance with
23		Part 145 of the Federal Aviation Regulations. The
24		exemption does not include aircraft operated by a
25		commercial air carrier providing scheduled passenger air
26		service pursuant to authority issued under Part 121 or

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1		Part 129 of the Federal Aviation Regulations. From January
2		1, 2024 through December 31, 2029, this exemption applies
3		only to the use of qualifying tangible personal property
4		by: (A) persons who modify, refurbish, complete, repair,
5		replace, or maintain aircraft and who (i) hold an Air
6		Agency Certificate and are empowered to operate an
7		approved repair station by the Federal Aviation
8		Administration, (ii) have a Class IV Rating, and (iii)
9		conduct operations in accordance with Part 145 of the
10		Federal Aviation Regulations; and (B) persons who engage
11		in the modification, replacement, repair, and maintenance
12		of aircraft engines or power plants without regard to
13		whether or not those persons meet the qualifications of
14		item (A).
15		The changes made to this paragraph (40) by Public Act
16		98-534 are declarative of existing law. It is the intent
17		of the General Assembly that the exemption under this
18		paragraph (40) applies continuously from January 1, 2010
19		through December 31, 2024; however, no claim for credit or
20		refund is allowed for taxes paid as a result of the
21		disallowance of this exemption on or after January 1, 2015
22		and prior to February 5, 2020 (the effective date of
23		Public Act 101-629).
24		(41) Tangible personal property sold to a
25		public-facilities corporation, as described in Section
26		11-65-10 of the Illinois Municipal Code, for purposes of

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1		constructing or furnishing a municipal convention hall,
2		but only if the legal title to the municipal convention
3		hall is transferred to the municipality without any
4		further consideration by or on behalf of the municipality
5		at the time of the completion of the municipal convention
6		hall or upon the retirement or redemption of any bonds or
7		other debt instruments issued by the public-facilities
8		corporation in connection with the development of the
9		municipal convention hall. This exemption includes
10		existing public-facilities corporations as provided in
11		Section 11-65-25 of the Illinois Municipal Code. This
12		paragraph is exempt from the provisions of Section 2-70.
13		(42) Beginning January 1, 2017 and through December
14		31, 2026, menstrual pads, tampons, and menstrual cups.
15		(43) Merchandise that is subject to the Rental
16		Purchase Agreement Occupation and Use Tax. The purchaser
17		must certify that the item is purchased to be rented
18		subject to a rental-purchase rental purchase agreement, as
19		defined in the Rental-Purchase Rental Purchase Agreement
20		Act, and provide proof of registration under the Rental
21		Purchase Agreement Occupation and Use Tax Act. This
22		paragraph is exempt from the provisions of Section 2-70.
23		(44) Qualified tangible personal property used in the
24		construction or operation of a data center that has been
25		granted a certificate of exemption by the Department of
26		Commerce and Economic Opportunity, whether that tangible

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1		personal property is purchased by the owner, operator, or
2		tenant of the data center or by a contractor or
3		subcontractor of the owner, operator, or tenant. Data
4		centers that would have qualified for a certificate of
5		exemption prior to January 1, 2020 had Public Act 101-31
6		been in effect, may apply for and obtain an exemption for
7		subsequent purchases of computer equipment or enabling
8		software purchased or leased to upgrade, supplement, or
9		replace computer equipment or enabling software purchased
10		or leased in the original investment that would have
11		qualified.
12		The Department of Commerce and Economic Opportunity
13		shall grant a certificate of exemption under this item
14		(44) to qualified data centers as defined by Section
15		605-1025 of the Department of Commerce and Economic
16		Opportunity Law of the Civil Administrative Code of
17		Illinois.
18		For the purposes of this item (44):
19		"Data center" means a building or a series of
20		buildings rehabilitated or constructed to house
21		working servers in one physical location or multiple
22		sites within the State of Illinois.
23		"Qualified tangible personal property" means:
24		electrical systems and equipment; climate control and
25		chilling equipment and systems; mechanical systems and
26		equipment; monitoring and secure systems; emergency

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1		generators; hardware; computers; servers; data storage
2		devices; network connectivity equipment; racks;
3		cabinets; telecommunications cabling infrastructure;
4		raised floor systems; peripheral components or
5		systems; software; mechanical, electrical, or plumbing
6		systems; battery systems; cooling systems and towers;
7		temperature control systems; other cabling; and other
8		data center infrastructure equipment and systems
9		necessary to operate qualified tangible personal
10		property, including fixtures; and component parts of
11		any of the foregoing, including installation,
12		maintenance, repair, refurbishment, and replacement of
13		qualified tangible personal property to generate,
14		transform, transmit, distribute, or manage electricity
15		necessary to operate qualified tangible personal
16		property; and all other tangible personal property
17		that is essential to the operations of a computer data
18		center. The term "qualified tangible personal
19		property" also includes building materials physically
20		incorporated into the qualifying data center. To
21		document the exemption allowed under this Section, the
22		retailer must obtain from the purchaser a copy of the
23		certificate of eligibility issued by the Department of
24		Commerce and Economic Opportunity.
25		This item (44) is exempt from the provisions of
26		Section 2-70.

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1		(45) Beginning January 1, 2020 and through December
2		31, 2020, sales of tangible personal property made by a
3		marketplace seller over a marketplace for which tax is due
4		under this Act but for which use tax has been collected and
5		remitted to the Department by a marketplace facilitator
6		under Section 2d of the Use Tax Act are exempt from tax
7		under this Act. A marketplace seller claiming this
8		exemption shall maintain books and records demonstrating
9		that the use tax on such sales has been collected and
10		remitted by a marketplace facilitator. Marketplace sellers
11		that have properly remitted tax under this Act on such
12		sales may file a claim for credit as provided in Section 6
13		of this Act. No claim is allowed, however, for such taxes
14		for which a credit or refund has been issued to the
15		marketplace facilitator under the Use Tax Act, or for
16		which the marketplace facilitator has filed a claim for
17		credit or refund under the Use Tax Act.
18		(46) Beginning July 1, 2022, breast pumps, breast pump
19		collection and storage supplies, and breast pump kits.
20		This item (46) is exempt from the provisions of Section
21		2-70. As used in this item (46):
22		"Breast pump" means an electrically controlled or
23		manually controlled pump device designed or marketed to be
24		used to express milk from a human breast during lactation,
25		including the pump device and any battery, AC adapter, or
26		other power supply unit that is used to power the pump

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1		device and is packaged and sold with the pump device at the
2		time of sale.
3		"Breast pump collection and storage supplies" means
4		items of tangible personal property designed or marketed
5		to be used in conjunction with a breast pump to collect
6		milk expressed from a human breast and to store collected
7		milk until it is ready for consumption.
8		"Breast pump collection and storage supplies"
9		includes, but is not limited to: breast shields and breast
10		shield connectors; breast pump tubes and tubing adapters;
11		breast pump valves and membranes; backflow protectors and
12		backflow protector adaptors; bottles and bottle caps
13		specific to the operation of the breast pump; and breast
14		milk storage bags.
15		"Breast pump collection and storage supplies" does not
16		include: (1) bottles and bottle caps not specific to the
17		operation of the breast pump; (2) breast pump travel bags
18		and other similar carrying accessories, including ice
19		packs, labels, and other similar products; (3) breast pump
20		cleaning supplies; (4) nursing bras, bra pads, breast
21		shells, and other similar products; and (5) creams,
22		ointments, and other similar products that relieve
23		breastfeeding-related symptoms or conditions of the
24		breasts or nipples, unless sold as part of a breast pump
25		kit that is pre-packaged by the breast pump manufacturer
26		or distributor.

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1		"Breast pump kit" means a kit that: (1) contains no
2		more than a breast pump, breast pump collection and
3		storage supplies, a rechargeable battery for operating the
4		breast pump, a breastmilk cooler, bottle stands, ice
5		packs, and a breast pump carrying case; and (2) is
6		pre-packaged as a breast pump kit by the breast pump
7		manufacturer or distributor.
8		(47) Tangible personal property sold by or on behalf
9		of the State Treasurer pursuant to the Revised Uniform
10		Unclaimed Property Act. This item (47) is exempt from the
11		provisions of Section 2-70.
12		(48) Beginning on January 1, 2024, tangible personal
13		property purchased by an active duty member of the armed
14		forces of the United States who presents valid military
15		identification and purchases the property using a form of
16		payment where the federal government is the payor. The
17		member of the armed forces must complete, at the point of
18		sale, a form prescribed by the Department of Revenue
19		documenting that the transaction is eligible for the
20		exemption under this paragraph. Retailers must keep the
21		form as documentation of the exemption in their records
22		for a period of not less than 6 years. "Armed forces of the
23		United States" means the United States Army, Navy, Air
24		Force, Marine Corps, or Coast Guard. This paragraph is
25		exempt from the provisions of Section 2-70.
26		(49) Gross receipts from the lease of the following

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1		tangible personal property:
2		(1) computer software transferred subject to a
3		license that meets the following requirements:
4		(A) it is evidenced by a written agreement
5		signed by the licensor and the customer;
6		(i) an electronic agreement in which the
7		customer accepts the license by means of an
8		electronic signature that is verifiable and
9		can be authenticated and is attached to or
10		made part of the license will comply with this
11		requirement;
12		(ii) a license agreement in which the
13		customer electronically accepts the terms by
14		clicking "I agree" does not comply with this
15		requirement;
16		(B) it restricts the customer's duplication
17		and use of the software;
18		(C) it prohibits the customer from licensing,
19		sublicensing, or transferring the software to a
20		third party (except to a related party) without
21		the permission and continued control of the
22		licensor;
23		(D) the licensor has a policy of providing
24		another copy at minimal or no charge if the
25		customer loses or damages the software, or of
26		permitting the licensee to make and keep an

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1		archival copy, and such policy is either stated in
2		the license agreement, supported by the licensor's
3		books and records, or supported by a notarized
4		statement made under penalties of perjury by the
5		licensor; and
6		(E) the customer must destroy or return all
7		copies of the software to the licensor at the end
8		of the license period; this provision is deemed to
9		be met, in the case of a perpetual license,
10		without being set forth in the license agreement;
11		and
12		(2) property that is subject to a tax on lease
13		receipts imposed by a home rule unit of local
14		government if the ordinance imposing that tax was
15		adopted prior to January 1, 2023.
16		(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
17		102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
18		Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
19		5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
20		5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
21		6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
22		12-12-23.)
23		(35 ILCS 120/2-10)
24		Sec. 2-10. Rate of tax. Unless otherwise provided in this
25		Section, the tax imposed by this Act is at the rate of 6.25% of

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1		gross receipts from sales, which, on and after January 1,
2		2025, includes leases, of tangible personal property made in
3		the course of business.
4		Beginning on July 1, 2000 and through December 31, 2000,
5		with respect to motor fuel, as defined in Section 1.1 of the
6		Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
7		the Use Tax Act, the tax is imposed at the rate of 1.25%.
8		Beginning on August 6, 2010 through August 15, 2010, and
9		beginning again on August 5, 2022 through August 14, 2022,
10		with respect to sales tax holiday items as defined in Section
11		2-8 of this Act, the tax is imposed at the rate of 1.25%.
12		Within 14 days after July 1, 2000 (the effective date of
13		Public Act 91-872), each retailer of motor fuel and gasohol
14		shall cause the following notice to be posted in a prominently
15		visible place on each retail dispensing device that is used to
16		dispense motor fuel or gasohol in the State of Illinois: "As of
17		July 1, 2000, the State of Illinois has eliminated the State's
18		share of sales tax on motor fuel and gasohol through December
19		31, 2000. The price on this pump should reflect the
20		elimination of the tax." The notice shall be printed in bold
21		print on a sign that is no smaller than 4 inches by 8 inches.
22		The sign shall be clearly visible to customers. Any retailer
23		who fails to post or maintain a required sign through December
24		31, 2000 is guilty of a petty offense for which the fine shall
25		be $500 per day per each retail premises where a violation
26		occurs.

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1		With respect to gasohol, as defined in the Use Tax Act, the
2		tax imposed by this Act applies to (i) 70% of the proceeds of
3		sales made on or after January 1, 1990, and before July 1,
4		2003, (ii) 80% of the proceeds of sales made on or after July
5		1, 2003 and on or before July 1, 2017, (iii) 100% of the
6		proceeds of sales made after July 1, 2017 and prior to January
7		1, 2024, (iv) 90% of the proceeds of sales made on or after
8		January 1, 2024 and on or before December 31, 2028, and (v)
9		100% of the proceeds of sales made after December 31, 2028. If,
10		at any time, however, the tax under this Act on sales of
11		gasohol, as defined in the Use Tax Act, 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 gasohol made during that time.
14		With respect to mid-range ethanol blends, as defined in
15		Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
16		applies to (i) 80% of the proceeds of sales made on or after
17		January 1, 2024 and on or before December 31, 2028 and (ii)
18		100% of the proceeds of sales made after December 31, 2028. If,
19		at any time, however, the tax under this Act on sales of
20		mid-range ethanol blends is imposed at the rate of 1.25%, then
21		the tax imposed by this Act applies to 100% of the proceeds of
22		sales of mid-range ethanol blends made during that time.
23		With respect to majority blended ethanol fuel, as defined
24		in the Use Tax Act, the tax imposed by this Act does not apply
25		to the proceeds of sales made on or after July 1, 2003 and on
26		or before December 31, 2028 but applies to 100% of the proceeds

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1		of sales made thereafter.
2		With respect to biodiesel blends, as defined in the Use
3		Tax Act, with no less than 1% and no more than 10% biodiesel,
4		the tax imposed by this Act applies to (i) 80% of the proceeds
5		of sales made on or after July 1, 2003 and on or before
6		December 31, 2018 and (ii) 100% of the proceeds of sales made
7		after December 31, 2018 and before January 1, 2024. On and
8		after January 1, 2024 and on or before December 31, 2030, the
9		taxation of biodiesel, renewable diesel, and biodiesel blends
10		shall be as provided in Section 3-5.1 of the Use Tax Act. If,
11		at any time, however, the tax under this Act on sales of
12		biodiesel blends, as defined in the Use Tax Act, with no less
13		than 1% and no more than 10% biodiesel is imposed at the rate
14		of 1.25%, then the tax imposed by this Act applies to 100% of
15		the proceeds of sales of biodiesel blends with no less than 1%
16		and no more than 10% biodiesel made during that time.
17		With respect to biodiesel, as defined in the Use Tax Act,
18		and biodiesel blends, as defined in the Use Tax Act, with more
19		than 10% but no more than 99% biodiesel, the tax imposed by
20		this Act does not apply to the proceeds of sales made on or
21		after July 1, 2003 and on or before December 31, 2023. On and
22		after January 1, 2024 and on or before December 31, 2030, the
23		taxation of biodiesel, renewable diesel, and biodiesel blends
24		shall be as provided in Section 3-5.1 of the Use Tax Act.
25		Until July 1, 2022 and beginning again on July 1, 2023,
26		with respect to food for human consumption that is to be

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1		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, and food that has been prepared for
4		immediate consumption), the tax is imposed at the rate of 1%.
5		Beginning July 1, 2022 and until July 1, 2023, with respect to
6		food for human consumption that is to be consumed off the
7		premises where it is sold (other than alcoholic beverages,
8		food consisting of or infused with adult use cannabis, soft
9		drinks, and food that has been prepared for immediate
10		consumption), the tax is imposed at the rate of 0%.
11		With respect to prescription and nonprescription
12		medicines, drugs, medical appliances, products classified as
13		Class III medical devices by the United States Food and Drug
14		Administration that are used for cancer treatment pursuant to
15		a prescription, as well as any accessories and components
16		related to those devices, modifications to a motor vehicle for
17		the purpose of rendering it usable by a person with a
18		disability, and insulin, blood sugar testing materials,
19		syringes, and needles used by human diabetics, the tax is
20		imposed at the rate of 1%. For the purposes of this Section,
21		until September 1, 2009: the term "soft drinks" means any
22		complete, finished, ready-to-use, non-alcoholic drink, whether
23		carbonated or not, including, but not limited to, soda water,
24		cola, fruit juice, vegetable juice, carbonated water, and all
25		other preparations commonly known as soft drinks of whatever
26		kind or description that are contained in any closed or sealed

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

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1		include candy. For purposes of this Section, "candy" means a
2		preparation of sugar, honey, or other natural or artificial
3		sweeteners in combination with chocolate, fruits, nuts or
4		other ingredients or flavorings in the form of bars, drops, or
5		pieces. "Candy" does not include any preparation that contains
6		flour or requires refrigeration.
7		Notwithstanding any other provisions of this Act,
8		beginning September 1, 2009, "nonprescription medicines and
9		drugs" does not include grooming and hygiene products. For
10		purposes of this Section, "grooming and hygiene products"
11		includes, but is not limited to, soaps and cleaning solutions,
12		shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
13		lotions and screens, unless those products are available by
14		prescription only, regardless of whether the products meet the
15		definition of "over-the-counter-drugs". For the purposes of
16		this paragraph, "over-the-counter-drug" means a drug for human
17		use that contains a label that identifies the product as a drug
18		as required by 21 CFR 201.66. The "over-the-counter-drug"
19		label includes:
20		(A) a "Drug Facts" panel; or
21		(B) a statement of the "active ingredient(s)" with a
22		list of those ingredients contained in the compound,
23		substance or preparation.
24		Beginning on January 1, 2014 (the effective date of Public
25		Act 98-122), "prescription and nonprescription medicines and
26		drugs" includes medical cannabis purchased from a registered

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1		dispensing organization under the Compassionate Use of Medical
2		Cannabis Program Act.
3		As used in this Section, "adult use cannabis" means
4		cannabis subject to tax under the Cannabis Cultivation
5		Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
6		and does not include cannabis subject to tax under the
7		Compassionate Use of Medical Cannabis Program Act.
8		(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
9		Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
10		60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
11		4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
12		(35 ILCS 120/2-12)
13		Sec. 2-12. Location where retailer is deemed to be engaged
14		in the business of selling. The purpose of this Section is to
15		specify where a retailer is deemed to be engaged in the
16		business of selling tangible personal property for the
17		purposes of this Act, the Use Tax Act, the Service Use Tax Act,
18		and the Service Occupation Tax Act, and for the purpose of
19		collecting any other local retailers' occupation tax
20		administered by the Department. This Section applies only with
21		respect to the particular selling activities described in the
22		following paragraphs. The provisions of this Section are not
23		intended to, and shall not be interpreted to, affect where a
24		retailer is deemed to be engaged in the business of selling
25		with respect to any activity that is not specifically

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1		described in the following paragraphs.
2		(1) If a purchaser who is present at the retailer's
3		place of business, having no prior commitment to the
4		retailer, agrees to purchase and makes payment for
5		tangible personal property at the retailer's place of
6		business, then the transaction shall be deemed an
7		over-the-counter sale occurring at the retailer's same
8		place of business where the purchaser was present and made
9		payment for that tangible personal property if the
10		retailer regularly stocks the purchased tangible personal
11		property or similar tangible personal property in the
12		quantity, or similar quantity, for sale at the retailer's
13		same place of business and then either (i) the purchaser
14		takes possession of the tangible personal property at the
15		same place of business or (ii) the retailer delivers or
16		arranges for the tangible personal property to be
17		delivered to the purchaser.
18		(2) If a purchaser, having no prior commitment to the
19		retailer, agrees to purchase tangible personal property
20		and makes payment over the phone, in writing, or via the
21		Internet and takes possession of the tangible personal
22		property at the retailer's place of business, then the
23		sale shall be deemed to have occurred at the retailer's
24		place of business where the purchaser takes possession of
25		the property if the retailer regularly stocks the item or
26		similar items in the quantity, or similar quantities,

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1		purchased by the purchaser.
2		(3) A retailer is deemed to be engaged in the business
3		of selling food, beverages, or other tangible personal
4		property through a vending machine at the location where
5		the vending machine is located at the time the sale is made
6		if (i) the vending machine is a device operated by coin,
7		currency, credit card, token, coupon or similar device;
8		(2) the food, beverage or other tangible personal property
9		is contained within the vending machine and dispensed from
10		the vending machine; and (3) the purchaser takes
11		possession of the purchased food, beverage or other
12		tangible personal property immediately.
13		(4) Minerals. A producer of coal or other mineral
14		mined in Illinois is deemed to be engaged in the business
15		of selling at the place where the coal or other mineral
16		mined in Illinois is extracted from the earth. With
17		respect to minerals (i) the term "extracted from the
18		earth" means the location at which the coal or other
19		mineral is extracted from the mouth of the mine, and (ii) a
20		"mineral" includes not only coal, but also oil, sand,
21		stone taken from a quarry, gravel and any other thing
22		commonly regarded as a mineral and extracted from the
23		earth. This paragraph does not apply to coal or another
24		mineral when it is delivered or shipped by the seller to
25		the purchaser at a point outside Illinois so that the sale
26		is exempt under the United States Constitution as a sale

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1		in interstate or foreign commerce.
2		(5) A retailer selling tangible personal property to a
3		nominal lessee or bailee pursuant to a lease with a dollar
4		or other nominal option to purchase is engaged in the
5		business of selling at the location where the property is
6		first delivered to the lessee or bailee for its intended
7		use.
8		(5.5) Lease transactions. The lease of tangible
9		personal property that is subject to the tax on leases
10		under this amendatory Act of the 103rd General Assembly is
11		sourced as follows:
12		(i) For a lease that requires recurring periodic
13		payments and for which the property is delivered to
14		the lessee by the lessor, each periodic payment is
15		sourced to the primary property location for each
16		period covered by the payment. The primary property
17		location shall be as indicated by an address for the
18		property provided by the lessee that is available to
19		the lessor from its records maintained in the ordinary
20		course of business, when use of this address does not
21		constitute bad faith. The property location is not
22		altered by intermittent use at different locations,
23		such as use of business property that accompanies
24		employees on business trips and service calls.
25		(ii) For all other leases, including a lease that
26		does not require recurring periodic payments and any

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1		lease for which the lessee takes possession of the
2		property at the lessor's place of business, the
3		payment is sourced as otherwise provided under this
4		Act for sales at retail other than leases.
5		(6) Beginning on January 1, 2021, a remote retailer
6		making retail sales of tangible personal property that
7		meet or exceed the thresholds established in paragraph (1)
8		or (2) of subsection (b) of Section 2 of this Act is
9		engaged in the business of selling at the Illinois
10		location to which the tangible personal property is
11		shipped or delivered or at which possession is taken by
12		the purchaser.
13		(7) Beginning January 1, 2021, a marketplace
14		facilitator facilitating sales of tangible personal
15		property that meet or exceed one of the thresholds
16		established in paragraph (1) or (2) of subsection (c) of
17		Section 2 of this Act is deemed to be engaged in the
18		business of selling at the Illinois location to which the
19		tangible personal property is shipped or delivered or at
20		which possession is taken by the purchaser when the sale
21		is made by a marketplace seller on the marketplace
22		facilitator's marketplace.
23		(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
24		(35 ILCS 120/2a) (from Ch. 120, par. 441a)
25		Sec. 2a. Registration of retailers. It is unlawful for any

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1		person to engage in the business of selling, which, on and
2		after January 1, 2025, includes leasing, tangible personal
3		property at retail in this State without a certificate of
4		registration from the Department. Application for a
5		certificate of registration shall be made to the Department
6		upon forms furnished by it. Each such application shall be
7		signed and verified and shall state: (1) the name and social
8		security number of the applicant; (2) the address of his
9		principal place of business; (3) the address of the principal
10		place of business from which he engages in the business of
11		selling tangible personal property at retail in this State and
12		the addresses of all other places of business, if any
13		(enumerating such addresses, if any, in a separate list
14		attached to and made a part of the application), from which he
15		engages in the business of selling tangible personal property
16		at retail in this State; (4) the name and address of the person
17		or persons who will be responsible for filing returns and
18		payment of taxes due under this Act; (5) in the case of a
19		publicly traded corporation, the name and title of the Chief
20		Financial Officer, Chief Operating Officer, and any other
21		officer or employee with responsibility for preparing tax
22		returns under this Act, and, in the case of all other
23		corporations, the name, title, and social security number of
24		each corporate officer; (6) in the case of a limited liability
25		company, the name, social security number, and FEIN number of
26		each manager and member; and (7) such other information as the

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1		Department may reasonably require. The application shall
2		contain an acceptance of responsibility signed by the person
3		or persons who will be responsible for filing returns and
4		payment of the taxes due under this Act. If the applicant will
5		sell tangible personal property at retail through vending
6		machines, his application to register shall indicate the
7		number of vending machines to be so operated. If requested by
8		the Department at any time, that person shall verify the total
9		number of vending machines he or she uses in his or her
10		business of selling tangible personal property at retail.
11		The Department shall provide by rule for an expedited
12		business registration process for remote retailers required to
13		register and file under subsection (b) of Section 2 who use a
14		certified service provider to file their returns under this
15		Act. Such expedited registration process shall allow the
16		Department to register a taxpayer based upon the same
17		registration information required by the Streamlined Sales Tax
18		Governing Board for states participating in the Streamlined
19		Sales Tax Project.
20		The Department may deny a certificate of registration to
21		any applicant if a person who is named as the owner, a partner,
22		a manager or member of a limited liability company, or a
23		corporate officer of the applicant on the application for the
24		certificate of registration is or has been named as the owner,
25		a partner, a manager or member of a limited liability company,
26		or a corporate officer on the application for the certificate

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1		of registration of another retailer that (i) is in default for
2		moneys due under this Act or any other tax or fee Act
3		administered by the Department or (ii) fails to file any
4		return, on or before the due date prescribed for filing that
5		return (including any extensions of time granted by the
6		Department), that the retailer is required to file under this
7		Act or any other tax or fee Act administered by the Department.
8		For purposes of this paragraph only, in determining whether a
9		person is in default for moneys due, the Department shall
10		include only amounts established as a final liability within
11		the 23 years prior to the date of the Department's notice of
12		denial of a certificate of registration.
13		The Department may require an applicant for a certificate
14		of registration hereunder to, at the time of filing such
15		application, furnish a bond from a surety company authorized
16		to do business in the State of Illinois, or an irrevocable bank
17		letter of credit or a bond signed by 2 personal sureties who
18		have filed, with the Department, sworn statements disclosing
19		net assets equal to at least 3 times the amount of the bond to
20		be required of such applicant, or a bond secured by an
21		assignment of a bank account or certificate of deposit, stocks
22		or bonds, conditioned upon the applicant paying to the State
23		of Illinois all moneys becoming due under this Act and under
24		any other State tax law or municipal or county tax ordinance or
25		resolution under which the certificate of registration that is
26		issued to the applicant under this Act will permit the

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1		applicant to engage in business without registering separately
2		under such other law, ordinance or resolution. In making a
3		determination as to whether to require a bond or other
4		security, the Department shall take into consideration whether
5		the owner, any partner, any manager or member of a limited
6		liability company, or a corporate officer of the applicant is
7		or has been the owner, a partner, a manager or member of a
8		limited liability company, or a corporate officer of another
9		retailer that is in default for moneys due under this Act or
10		any other tax or fee Act administered by the Department; and
11		whether the owner, any partner, any manager or member of a
12		limited liability company, or a corporate officer of the
13		applicant is or has been the owner, a partner, a manager or
14		member of a limited liability company, or a corporate officer
15		of another retailer whose certificate of registration has been
16		revoked within the previous 5 years under this Act or any other
17		tax or fee Act administered by the Department. If a bond or
18		other security is required, the Department shall fix the
19		amount of the bond or other security, taking into
20		consideration the amount of money expected to become due from
21		the applicant under this Act and under any other State tax law
22		or municipal or county tax ordinance or resolution under which
23		the certificate of registration that is issued to the
24		applicant under this Act will permit the applicant to engage
25		in business without registering separately under such other
26		law, ordinance, or resolution. The amount of security required

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1		by the Department shall be such as, in its opinion, will
2		protect the State of Illinois against failure to pay the
3		amount which may become due from the applicant under this Act
4		and under any other State tax law or municipal or county tax
5		ordinance or resolution under which the certificate of
6		registration that is issued to the applicant under this Act
7		will permit the applicant to engage in business without
8		registering separately under such other law, ordinance or
9		resolution, but the amount of the security required by the
10		Department shall not exceed three times the amount of the
11		applicant's average monthly tax liability, or $50,000.00,
12		whichever amount is lower.
13		No certificate of registration under this Act shall be
14		issued by the Department until the applicant provides the
15		Department with satisfactory security, if required, as herein
16		provided for.
17		Upon receipt of the application for certificate of
18		registration in proper form, and upon approval by the
19		Department of the security furnished by the applicant, if
20		required, the Department shall issue to such applicant a
21		certificate of registration which shall permit the person to
22		whom it is issued to engage in the business of selling tangible
23		personal property at retail in this State. The certificate of
24		registration shall be conspicuously displayed at the place of
25		business which the person so registered states in his
26		application to be the principal place of business from which

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1		he engages in the business of selling tangible personal
2		property at retail in this State.
3		No certificate of registration issued prior to July 1,
4		2017 to a taxpayer who files returns required by this Act on a
5		monthly basis or renewed prior to July 1, 2017 by a taxpayer
6		who files returns required by this Act on a monthly basis shall
7		be valid after the expiration of 5 years from the date of its
8		issuance or last renewal. No certificate of registration
9		issued on or after July 1, 2017 to a taxpayer who files returns
10		required by this Act on a monthly basis or renewed on or after
11		July 1, 2017 by a taxpayer who files returns required by this
12		Act on a monthly basis shall be valid after the expiration of
13		one year from the date of its issuance or last renewal. The
14		expiration date of a sub-certificate of registration shall be
15		that of the certificate of registration to which the
16		sub-certificate relates. Prior to July 1, 2017, a certificate
17		of registration shall automatically be renewed, subject to
18		revocation as provided by this Act, for an additional 5 years
19		from the date of its expiration unless otherwise notified by
20		the Department as provided by this paragraph. On and after
21		July 1, 2017, a certificate of registration shall
22		automatically be renewed, subject to revocation as provided by
23		this Act, for an additional one year from the date of its
24		expiration unless otherwise notified by the Department as
25		provided by this paragraph.
26		Where a taxpayer to whom a certificate of registration is

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1		issued under this Act is in default to the State of Illinois
2		for delinquent returns or for moneys due under this Act or any
3		other State tax law or municipal or county ordinance
4		administered or enforced by the Department, the Department
5		shall, not less than 60 days before the expiration date of such
6		certificate of registration, give notice to the taxpayer to
7		whom the certificate was issued of the account period of the
8		delinquent returns, the amount of tax, penalty and interest
9		due and owing from the taxpayer, and that the certificate of
10		registration shall not be automatically renewed upon its
11		expiration date unless the taxpayer, on or before the date of
12		expiration, has filed and paid the delinquent returns or paid
13		the defaulted amount in full. A taxpayer to whom such a notice
14		is issued shall be deemed an applicant for renewal. The
15		Department shall promulgate regulations establishing
16		procedures for taxpayers who file returns on a monthly basis
17		but desire and qualify to change to a quarterly or yearly
18		filing basis and will no longer be subject to renewal under
19		this Section, and for taxpayers who file returns on a yearly or
20		quarterly basis but who desire or are required to change to a
21		monthly filing basis and will be subject to renewal under this
22		Section.
23		The Department may in its discretion approve renewal by an
24		applicant who is in default if, at the time of application for
25		renewal, the applicant files all of the delinquent returns or
26		pays to the Department such percentage of the defaulted amount

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1		as may be determined by the Department and agrees in writing to
2		waive all limitations upon the Department for collection of
3		the remaining defaulted amount to the Department over a period
4		not to exceed 5 years from the date of renewal of the
5		certificate; however, no renewal application submitted by an
6		applicant who is in default shall be approved if the
7		immediately preceding renewal by the applicant was conditioned
8		upon the installment payment agreement described in this
9		Section. The payment agreement herein provided for shall be in
10		addition to and not in lieu of the security that may be
11		required by this Section of a taxpayer who is no longer
12		considered a prior continuous compliance taxpayer. The
13		execution of the payment agreement as provided in this Act
14		shall not toll the accrual of interest at the statutory rate.
15		The Department may suspend a certificate of registration
16		if the Department finds that the person to whom the
17		certificate of registration has been issued knowingly sold
18		contraband cigarettes.
19		A certificate of registration issued under this Act more
20		than 5 years before January 1, 1990 (the effective date of
21		Public Act 86-383) shall expire and be subject to the renewal
22		provisions of this Section on the next anniversary of the date
23		of issuance of such certificate which occurs more than 6
24		months after January 1, 1990 (the effective date of Public Act
25		86-383). A certificate of registration issued less than 5
26		years before January 1, 1990 (the effective date of Public Act

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1		86-383) shall expire and be subject to the renewal provisions
2		of this Section on the 5th anniversary of the issuance of the
3		certificate.
4		If the person so registered states that he operates other
5		places of business from which he engages in the business of
6		selling tangible personal property at retail in this State,
7		the Department shall furnish him with a sub-certificate of
8		registration for each such place of business, and the
9		applicant shall display the appropriate sub-certificate of
10		registration at each such place of business. All
11		sub-certificates of registration shall bear the same
12		registration number as that appearing upon the certificate of
13		registration to which such sub-certificates relate.
14		If the applicant will sell tangible personal property at
15		retail through vending machines, the Department shall furnish
16		him with a sub-certificate of registration for each such
17		vending machine, and the applicant shall display the
18		appropriate sub-certificate of registration on each such
19		vending machine by attaching the sub-certificate of
20		registration to a conspicuous part of such vending machine. If
21		a person who is registered to sell tangible personal property
22		at retail through vending machines adds an additional vending
23		machine or additional vending machines to the number of
24		vending machines he or she uses in his or her business of
25		selling tangible personal property at retail, he or she shall
26		notify the Department, on a form prescribed by the Department,

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1		to request an additional sub-certificate or additional
2		sub-certificates of registration, as applicable. With each
3		such request, the applicant shall report the number of
4		sub-certificates of registration he or she is requesting as
5		well as the total number of vending machines from which he or
6		she makes retail sales.
7		Where the same person engages in 2 or more businesses of
8		selling tangible personal property at retail in this State,
9		which businesses are substantially different in character or
10		engaged in under different trade names or engaged in under
11		other substantially dissimilar circumstances (so that it is
12		more practicable, from an accounting, auditing or bookkeeping
13		standpoint, for such businesses to be separately registered),
14		the Department may require or permit such person (subject to
15		the same requirements concerning the furnishing of security as
16		those that are provided for hereinbefore in this Section as to
17		each application for a certificate of registration) to apply
18		for and obtain a separate certificate of registration for each
19		such business or for any of such businesses, under a single
20		certificate of registration supplemented by related
21		sub-certificates of registration.
22		Any person who is registered under the Retailers'
23		Occupation Tax Act as of March 8, 1963, and who, during the
24		3-year period immediately prior to March 8, 1963, or during a
25		continuous 3-year period part of which passed immediately
26		before and the remainder of which passes immediately after

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1		March 8, 1963, has been so registered continuously and who is
2		determined by the Department not to have been either
3		delinquent or deficient in the payment of tax liability during
4		that period under this Act or under any other State tax law or
5		municipal or county tax ordinance or resolution under which
6		the certificate of registration that is issued to the
7		registrant under this Act will permit the registrant to engage
8		in business without registering separately under such other
9		law, ordinance or resolution, shall be considered to be a
10		Prior Continuous Compliance taxpayer. Also any taxpayer who
11		has, as verified by the Department, faithfully and
12		continuously complied with the condition of his bond or other
13		security under the provisions of this Act for a period of 3
14		consecutive years shall be considered to be a Prior Continuous
15		Compliance taxpayer.
16		Every Prior Continuous Compliance taxpayer shall be exempt
17		from all requirements under this Act concerning the furnishing
18		of a bond or other security as a condition precedent to his
19		being authorized to engage in the business of selling tangible
20		personal property at retail in this State. This exemption
21		shall continue for each such taxpayer until such time as he may
22		be determined by the Department to be delinquent in the filing
23		of any returns, or is determined by the Department (either
24		through the Department's issuance of a final assessment which
25		has become final under the Act, or by the taxpayer's filing of
26		a return which admits tax that is not paid to be due) to be

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1		delinquent or deficient in the paying of any tax under this Act
2		or under any other State tax law or municipal or county tax
3		ordinance or resolution under which the certificate of
4		registration that is issued to the registrant under this Act
5		will permit the registrant to engage in business without
6		registering separately under such other law, ordinance or
7		resolution, at which time that taxpayer shall become subject
8		to all the financial responsibility requirements of this Act
9		and, as a condition of being allowed to continue to engage in
10		the business of selling tangible personal property at retail,
11		may be required to post bond or other acceptable security with
12		the Department covering liability which such taxpayer may
13		thereafter incur. Any taxpayer who fails to pay an admitted or
14		established liability under this Act may also be required to
15		post bond or other acceptable security with this Department
16		guaranteeing the payment of such admitted or established
17		liability.
18		No certificate of registration shall be issued to any
19		person who is in default to the State of Illinois for moneys
20		due under this Act or under any other State tax law or
21		municipal or county tax ordinance or resolution under which
22		the certificate of registration that is issued to the
23		applicant under this Act will permit the applicant to engage
24		in business without registering separately under such other
25		law, ordinance or resolution.
26		Any person aggrieved by any decision of the Department

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1		under this Section may, within 20 days after notice of such
2		decision, protest and request a hearing, whereupon the
3		Department shall give notice to such person of the time and
4		place fixed for such hearing and shall hold a hearing in
5		conformity with the provisions of this Act and then issue its
6		final administrative decision in the matter to such person. In
7		the absence of such a protest within 20 days, the Department's
8		decision shall become final without any further determination
9		being made or notice given.
10		With respect to security other than bonds (upon which the
11		Department may sue in the event of a forfeiture), if the
12		taxpayer fails to pay, when due, any amount whose payment such
13		security guarantees, the Department shall, after such
14		liability is admitted by the taxpayer or established by the
15		Department through the issuance of a final assessment that has
16		become final under the law, convert the security which that
17		taxpayer has furnished into money for the State, after first
18		giving the taxpayer at least 10 days' written notice, by
19		registered or certified mail, to pay the liability or forfeit
20		such security to the Department. If the security consists of
21		stocks or bonds or other securities which are listed on a
22		public exchange, the Department shall sell such securities
23		through such public exchange. If the security consists of an
24		irrevocable bank letter of credit, the Department shall
25		convert the security in the manner provided for in the Uniform
26		Commercial Code. If the security consists of a bank

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1		certificate of deposit, the Department shall convert the
2		security into money by demanding and collecting the amount of
3		such bank certificate of deposit from the bank which issued
4		such certificate. If the security consists of a type of stocks
5		or other securities which are not listed on a public exchange,
6		the Department shall sell such security to the highest and
7		best bidder after giving at least 10 days' notice of the date,
8		time and place of the intended sale by publication in the
9		"State Official Newspaper". If the Department realizes more
10		than the amount of such liability from the security, plus the
11		expenses incurred by the Department in converting the security
12		into money, the Department shall pay such excess to the
13		taxpayer who furnished such security, and the balance shall be
14		paid into the State Treasury.
15		The Department shall discharge any surety and shall
16		release and return any security deposited, assigned, pledged
17		or otherwise provided to it by a taxpayer under this Section
18		within 30 days after:
19		(1) such taxpayer becomes a Prior Continuous
20		Compliance taxpayer; or
21		(2) such taxpayer has ceased to collect receipts on
22		which he is required to remit tax to the Department, has
23		filed a final tax return, and has paid to the Department an
24		amount sufficient to discharge his remaining tax
25		liability, as determined by the Department, under this Act
26		and under every other State tax law or municipal or county

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1		tax ordinance or resolution under which the certificate of
2		registration issued under this Act permits the registrant
3		to engage in business without registering separately under
4		such other law, ordinance or resolution. The Department
5		shall make a final determination of the taxpayer's
6		outstanding tax liability as expeditiously as possible
7		after his final tax return has been filed; if the
8		Department cannot make such final determination within 45
9		days after receiving the final tax return, within such
10		period it shall so notify the taxpayer, stating its
11		reasons therefor.
12		(Source: P.A. 102-40, eff. 6-25-21; 103-319, eff. 1-1-24.)
13		(35 ILCS 120/2c) (from Ch. 120, par. 441c)
14		Sec. 2c. Resales of tangible personal property. If the
15		purchaser is not registered with the Department as a taxpayer,
16		but claims to be a reseller of the tangible personal property
17		in such a way that such resales are not taxable under this Act
18		or under some other tax law which the Department may
19		administer, such purchaser (except in the case of an
20		out-of-State purchaser who will always resell and deliver the
21		property to his customers outside Illinois) shall apply to the
22		Department for a resale number. Such applicant shall state
23		facts which will show the Department why such applicant is not
24		liable for tax under this Act or under some other tax law which
25		the Department may administer on any of his resales and shall

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1		furnish such additional information as the Department may
2		reasonably require.
3		Upon approval of the application, the Department shall
4		assign a resale number to the applicant and shall certify such
5		number to him. The Department may cancel any such number which
6		is obtained through misrepresentation, or which is used to
7		make a purchase tax-free when the purchase in fact is not a
8		purchase for resale, or which no longer applies because of the
9		purchaser's having discontinued the making of tax exempt
10		resales of the property.
11		The Department may restrict the use of the number to one
12		year at a time or to some other definite period if the
13		Department finds it impracticable or otherwise inadvisable to
14		issue such numbers for indefinite periods.
15		Except as provided hereinabove in this Section, a sale
16		shall be made tax-free on the ground of being a sale for resale
17		if the purchaser has an active registration number or resale
18		number from the Department and furnishes that number to the
19		seller in connection with certifying to the seller that any
20		sale to such purchaser is nontaxable because of being a sale
21		for resale. On and after January 1, 2025, a sale to a lessor of
22		tangible personal property who is subject to the tax on leases
23		implemented by this amendatory Act of the 103rd General
24		Assembly, for the purpose of leasing that property, shall be
25		made tax-free on the ground of being a sale for resale,
26		provided the other provisions of this paragraph are met.

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1		Failure to present an active registration number or resale
2		number and a certification to the seller that a sale is for
3		resale creates a presumption that a sale is not for resale.
4		This presumption may be rebutted by other evidence that all of
5		the seller's sales are sale for resale, or that a particular
6		sale is a sale for resale.
7		(Source: P.A. 83-1463.)
8		(35 ILCS 120/3) (from Ch. 120, par. 442)
9		Sec. 3. Except as provided in this Section, on or before
10		the twentieth day of each calendar month, every person engaged
11		in the business of selling, which, on and after January 1,
12		2025, includes leasing, tangible personal property at retail
13		in this State during the preceding calendar month shall file a
14		return with the Department, stating:
15		1. The name of the seller;
16		2. His residence address and the address of his
17		principal place of business and the address of the
18		principal place of business (if that is a different
19		address) from which he engages in the business of selling
20		tangible personal property at retail in this State;
21		3. Total amount of receipts received by him during the
22		preceding calendar month or quarter, as the case may be,
23		from sales of tangible personal property, and from
24		services furnished, by him during such preceding calendar
25		month or quarter;

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1		4. Total amount received by him during the preceding
2		calendar month or quarter on charge and time sales of
3		tangible personal property, and from services furnished,
4		by him prior to the month or quarter for which the return
5		is filed;
6		5. Deductions allowed by law;
7		6. Gross receipts which were received by him during
8		the preceding calendar month or quarter and upon the basis
9		of which the tax is imposed, including gross receipts on
10		food for human consumption that is to be consumed off the
11		premises where it is sold (other than alcoholic beverages,
12		food consisting of or infused with adult use cannabis,
13		soft drinks, and food that has been prepared for immediate
14		consumption) which were received during the preceding
15		calendar month or quarter and upon which tax would have
16		been due but for the 0% rate imposed under Public Act
17		102-700;
18		7. The amount of credit provided in Section 2d of this
19		Act;
20		8. The amount of tax due, including the amount of tax
21		that would have been due on food for human consumption
22		that is to be consumed off the premises where it is sold
23		(other than alcoholic beverages, food consisting of or
24		infused with adult use cannabis, soft drinks, and food
25		that has been prepared for immediate consumption) but for
26		the 0% rate imposed under Public Act 102-700;

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1		9. The signature of the taxpayer; and
2		10. Such other reasonable information as the
3		Department may require.
4		In the case of leases, except as otherwise provided in
5		this Act, the lessor must remit for each tax return period only
6		the tax applicable to that part of the selling price actually
7		received during such tax return period.
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		If a taxpayer fails to sign a return within 30 days after
25		the proper notice and demand for signature by the Department,
26		the return shall be considered valid and any amount shown to be

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1		due on the return shall be deemed assessed.
2		Each return shall be accompanied by the statement of
3		prepaid tax issued pursuant to Section 2e for which credit is
4		claimed.
5		Prior to October 1, 2003, and on and after September 1,
6		2004, a retailer may accept a Manufacturer's Purchase Credit
7		certification from a purchaser in satisfaction of Use Tax as
8		provided in Section 3-85 of the Use Tax Act if the purchaser
9		provides the appropriate documentation as required by Section
10		3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
11		certification, accepted by a retailer prior to October 1, 2003
12		and on and after September 1, 2004 as provided in Section 3-85
13		of the Use Tax Act, may be used by that retailer to satisfy
14		Retailers' Occupation Tax liability in the amount claimed in
15		the certification, not to exceed 6.25% of the receipts subject
16		to 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

HB4951 Enrolled - 575 - LRB103 38094 HLH 68226 b
1		retailer may accept a Sustainable Aviation Fuel Purchase
2		Credit certification from an air common carrier-purchaser in
3		satisfaction of Use Tax on aviation fuel as provided in
4		Section 3-87 of the Use Tax Act if the purchaser provides the
5		appropriate documentation as required by Section 3-87 of the
6		Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
7		certification accepted by a retailer in accordance with this
8		paragraph may be used by that retailer to satisfy Retailers'
9		Occupation Tax liability (but not in satisfaction of penalty
10		or interest) in the amount claimed in the certification, not
11		to exceed 6.25% of the receipts subject to tax from a sale of
12		aviation fuel. In addition, for a sale of aviation fuel to
13		qualify to earn the Sustainable Aviation Fuel Purchase Credit,
14		retailers must retain in their books and records a
15		certification from the producer of the aviation fuel that the
16		aviation fuel sold by the retailer and for which a sustainable
17		aviation fuel purchase credit was earned meets the definition
18		of sustainable aviation fuel under Section 3-87 of the Use Tax
19		Act. The documentation must include detail sufficient for the
20		Department to determine the number of gallons of sustainable
21		aviation fuel sold.
22		The Department may require returns to be filed on a
23		quarterly basis. If so required, a return for each calendar
24		quarter shall be filed on or before the twentieth day of the
25		calendar month following the end of such calendar quarter. The
26		taxpayer shall also file a return with the Department for each

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1		of the first 2 two months of each calendar quarter, on or
2		before the twentieth day of the following calendar month,
3		stating:
4		1. The name of the seller;
5		2. The address of the principal place of business from
6		which he engages in the business of selling tangible
7		personal property at retail in this State;
8		3. The total amount of taxable receipts received by
9		him during the preceding calendar month from sales of
10		tangible personal property by him during such preceding
11		calendar month, including receipts from charge and time
12		sales, but less all deductions allowed by law;
13		4. The amount of credit provided in Section 2d of this
14		Act;
15		5. The amount of tax due; and
16		6. Such other reasonable information as the Department
17		may require.
18		Every person engaged in the business of selling aviation
19		fuel at retail in this State during the preceding calendar
20		month shall, instead of reporting and paying tax as otherwise
21		required by this Section, report and pay such tax on a separate
22		aviation fuel tax return. The requirements related to the
23		return shall be as otherwise provided in this Section.
24		Notwithstanding any other provisions of this Act to the
25		contrary, retailers selling aviation fuel shall file all
26		aviation fuel tax returns and shall make all aviation fuel tax

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1		payments by electronic means in the manner and form required
2		by the Department. For purposes of this Section, "aviation
3		fuel" means jet fuel and aviation gasoline.
4		Beginning on October 1, 2003, any person who is not a
5		licensed distributor, importing distributor, or manufacturer,
6		as defined in the Liquor Control Act of 1934, but is engaged in
7		the business of selling, at retail, alcoholic liquor shall
8		file a statement with the Department of Revenue, in a format
9		and at a time prescribed by the Department, showing the total
10		amount paid for alcoholic liquor purchased during the
11		preceding month and such other information as is reasonably
12		required by the Department. The Department may adopt rules to
13		require that this statement be filed in an electronic or
14		telephonic format. Such rules may provide for exceptions from
15		the filing requirements of this paragraph. For the purposes of
16		this paragraph, the term "alcoholic liquor" shall have the
17		meaning prescribed in the Liquor Control Act of 1934.
18		Beginning on October 1, 2003, every distributor, importing
19		distributor, and manufacturer of alcoholic liquor as defined
20		in the Liquor Control Act of 1934, shall file a statement with
21		the Department of Revenue, no later than the 10th day of the
22		month for the preceding month during which transactions
23		occurred, by electronic means, showing the total amount of
24		gross receipts from the sale of alcoholic liquor sold or
25		distributed during the preceding month to purchasers;
26		identifying the purchaser to whom it was sold or distributed;

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1		the purchaser's tax registration number; and such other
2		information reasonably required by the Department. A
3		distributor, importing distributor, or manufacturer of
4		alcoholic liquor must personally deliver, mail, or provide by
5		electronic means to each retailer listed on the monthly
6		statement a report containing a cumulative total of that
7		distributor's, importing distributor's, or manufacturer's
8		total sales of alcoholic liquor to that retailer no later than
9		the 10th day of the month for the preceding month during which
10		the transaction occurred. The distributor, importing
11		distributor, or manufacturer shall notify the retailer as to
12		the method by which the distributor, importing distributor, or
13		manufacturer will provide the sales information. If the
14		retailer is unable to receive the sales information by
15		electronic means, the distributor, importing distributor, or
16		manufacturer shall furnish the sales information by personal
17		delivery or by mail. For purposes of this paragraph, the term
18		"electronic means" includes, but is not limited to, the use of
19		a secure Internet website, e-mail, or facsimile.
20		If a total amount of less than $1 is payable, refundable or
21		creditable, such amount shall be disregarded if it is less
22		than 50 cents and shall be increased to $1 if it is 50 cents or
23		more.
24		Notwithstanding any other provision of this Act to the
25		contrary, retailers subject to tax on cannabis shall file all
26		cannabis tax returns and shall make all cannabis tax payments

HB4951 Enrolled - 579 - LRB103 38094 HLH 68226 b
1		by electronic means in the manner and form required by the
2		Department.
3		Beginning October 1, 1993, a taxpayer who has an average
4		monthly tax liability of $150,000 or more shall make all
5		payments required by rules of the Department by electronic
6		funds transfer. Beginning October 1, 1994, a taxpayer who has
7		an average monthly tax liability of $100,000 or more shall
8		make all payments required by rules of the Department by
9		electronic funds transfer. Beginning October 1, 1995, a
10		taxpayer who has an average monthly tax liability of $50,000
11		or more shall make all payments required by rules of the
12		Department by electronic funds transfer. Beginning October 1,
13		2000, a taxpayer who has an annual tax liability of $200,000 or
14		more shall make all payments required by rules of the
15		Department by electronic funds transfer. The term "annual tax
16		liability" shall be the sum of the taxpayer's liabilities
17		under this Act, and under all other State and local occupation
18		and use tax laws administered by the Department, for the
19		immediately preceding calendar year. The term "average monthly
20		tax liability" shall be the sum of the taxpayer's liabilities
21		under this Act, and under all other State and local occupation
22		and use tax laws administered by the Department, for the
23		immediately preceding calendar year divided by 12. Beginning
24		on October 1, 2002, a taxpayer who has a tax liability in the
25		amount set forth in subsection (b) of Section 2505-210 of the
26		Department of Revenue Law shall make all payments required by

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1		rules of the Department by electronic funds transfer.
2		Before August 1 of each year beginning in 1993, the
3		Department shall notify all taxpayers required to make
4		payments by electronic funds transfer. All taxpayers required
5		to make payments by electronic funds transfer shall make those
6		payments for a minimum of one year beginning on October 1.
7		Any taxpayer not required to make payments by electronic
8		funds transfer may make payments by electronic funds transfer
9		with the permission of the Department.
10		All taxpayers required to make payment by electronic funds
11		transfer and any taxpayers authorized to voluntarily make
12		payments by electronic funds transfer shall make those
13		payments in the manner authorized by the Department.
14		The Department shall adopt such rules as are necessary to
15		effectuate a program of electronic funds transfer and the
16		requirements of this Section.
17		Any amount which is required to be shown or reported on any
18		return or other document under this Act shall, if such amount
19		is not a whole-dollar amount, be increased to the nearest
20		whole-dollar amount in any case where the fractional part of a
21		dollar is 50 cents or more, and decreased to the nearest
22		whole-dollar amount where the fractional part of a dollar is
23		less than 50 cents.
24		If the retailer is otherwise required to file a monthly
25		return and if the retailer's average monthly tax liability to
26		the Department does not exceed $200, the Department may

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

HB4951 Enrolled - 582 - LRB103 38094 HLH 68226 b
1		under this Act, such person may not file each return that is
2		due as a single return covering all such registered
3		businesses, but shall file separate returns for each such
4		registered business.
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, except as otherwise provided in this
8		Section, every retailer selling this kind of tangible personal
9		property shall file, with the Department, upon a form to be
10		prescribed and supplied by the Department, a separate return
11		for each such item of tangible personal property which the
12		retailer sells, except that if, in the same transaction, (i) a
13		retailer of aircraft, watercraft, motor vehicles, or trailers
14		transfers more than one aircraft, watercraft, motor vehicle,
15		or trailer to another aircraft, watercraft, motor vehicle
16		retailer, or trailer retailer for the purpose of resale or
17		(ii) a retailer of aircraft, watercraft, motor vehicles, or
18		trailers transfers more than one aircraft, watercraft, motor
19		vehicle, or trailer to a purchaser for use as a qualifying
20		rolling stock as provided in Section 2-5 of this Act, then that
21		seller may report the transfer of all aircraft, watercraft,
22		motor vehicles, or trailers involved in that transaction to
23		the Department on the same uniform invoice-transaction
24		reporting return form. For purposes of this Section,
25		"watercraft" means a Class 2, Class 3, or Class 4 watercraft as
26		defined in Section 3-2 of the Boat Registration and Safety

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1		Act, a personal watercraft, or any boat equipped with an
2		inboard motor.
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, every person who is engaged in the
6		business of leasing or renting such items and who, in
7		connection with such business, sells any such item to a
8		retailer for the purpose of resale is, notwithstanding any
9		other provision of this Section to the contrary, authorized to
10		meet the return-filing requirement of this Act by reporting
11		the transfer of all the aircraft, watercraft, motor vehicles,
12		or trailers transferred for resale during a month to the
13		Department on the same uniform invoice-transaction reporting
14		return form on or before the 20th of the month following the
15		month in which the transfer takes place. Notwithstanding any
16		other provision of this Act to the contrary, all returns filed
17		under this paragraph must be filed by electronic means in the
18		manner and form as required by the Department.
19		Any retailer who sells only motor vehicles, watercraft,
20		aircraft, or trailers that are required to be registered with
21		an agency of this State, so that all retailers' occupation tax
22		liability is required to be reported, and is reported, on such
23		transaction reporting returns and who is not otherwise
24		required to file monthly or quarterly returns, need not file
25		monthly or quarterly returns. However, those retailers shall
26		be required to file returns on an annual basis.

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

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

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1		satisfactory evidence that the sale is not taxable if that is
2		the case), to the Department or its agents, whereupon the
3		Department shall issue, in the purchaser's name, a use tax
4		receipt (or a certificate of exemption if the Department is
5		satisfied that the particular sale is tax exempt) which such
6		purchaser may submit to the agency with which, or State
7		officer with whom, he must title or register the tangible
8		personal property that is involved (if titling or registration
9		is required) in support of such purchaser's application for an
10		Illinois certificate or other evidence of title or
11		registration to such tangible personal property.
12		No retailer's failure or refusal to remit tax under this
13		Act precludes a user, who has paid the proper tax to the
14		retailer, from obtaining his certificate of title or other
15		evidence of title or registration (if titling or registration
16		is required) upon satisfying the Department that such user has
17		paid the proper tax (if tax is due) to the retailer. The
18		Department shall adopt appropriate rules to carry out the
19		mandate of this paragraph.
20		If the user who would otherwise pay tax to the retailer
21		wants the transaction reporting return filed and the payment
22		of the tax or proof of exemption made to the Department before
23		the retailer is willing to take these actions and such user has
24		not paid the tax to the retailer, such user may certify to the
25		fact of such delay by the retailer and may (upon the Department
26		being satisfied of the truth of such certification) transmit

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1		the information required by the transaction reporting return
2		and the remittance for tax or proof of exemption directly to
3		the Department and obtain his tax receipt or exemption
4		determination, in which event the transaction reporting return
5		and tax remittance (if a tax payment was required) shall be
6		credited by the Department to the proper retailer's account
7		with the Department, but without the 2.1% or 1.75% discount
8		provided for in this Section being allowed. When the user pays
9		the tax directly to the Department, he shall pay the tax in the
10		same amount and in the same form in which it would be remitted
11		if the tax had been remitted to the Department by the retailer.
12		Refunds made by the seller during the preceding return
13		period to purchasers, on account of tangible personal property
14		returned to the seller, shall be allowed as a deduction under
15		subdivision 5 of his monthly or quarterly return, as the case
16		may be, in case the seller had theretofore included the
17		receipts from the sale of such tangible personal property in a
18		return filed by him and had paid the tax imposed by this Act
19		with respect to such receipts.
20		Where the seller is a corporation, the return filed on
21		behalf of such corporation shall be signed by the president,
22		vice-president, secretary, or treasurer or by the properly
23		accredited agent of such corporation.
24		Where the seller is a limited liability company, the
25		return filed on behalf of the limited liability company shall
26		be signed by a manager, member, or properly accredited agent

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1		of the limited liability company.
2		Except as provided in this Section, the retailer filing
3		the return under this Section shall, at the time of filing such
4		return, pay to the Department the amount of tax imposed by this
5		Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
6		on and after January 1, 1990, or $5 per calendar year,
7		whichever is greater, which is allowed to reimburse the
8		retailer for the expenses incurred in keeping records,
9		preparing and filing returns, remitting the tax and supplying
10		data to the Department on request. On and after January 1,
11		2021, a certified service provider, as defined in the Leveling
12		the Playing Field for Illinois Retail Act, filing the return
13		under this Section on behalf of a remote retailer shall, at the
14		time of such return, pay to the Department the amount of tax
15		imposed by this Act less a discount of 1.75%. A remote retailer
16		using a certified service provider to file a return on its
17		behalf, as provided in the Leveling the Playing Field for
18		Illinois Retail Act, is not eligible for the discount. When
19		determining the discount allowed under this Section, retailers
20		shall include the amount of tax that would have been due at the
21		1% rate but for the 0% rate imposed under Public Act 102-700.
22		When determining the discount allowed under this Section,
23		retailers shall include the amount of tax that would have been
24		due at the 6.25% rate but for the 1.25% rate imposed on sales
25		tax holiday items under Public Act 102-700. The discount under
26		this Section is not allowed for the 1.25% portion of taxes paid

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1		on aviation fuel that is subject to the revenue use
2		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any
3		prepayment made pursuant to Section 2d of this Act shall be
4		included in the amount on which such 2.1% or 1.75% discount is
5		computed. In the case of retailers who report and pay the tax
6		on a transaction by transaction basis, as provided in this
7		Section, such discount shall be taken with each such tax
8		remittance instead of when such retailer files his periodic
9		return. The discount allowed under this Section is allowed
10		only for returns that are filed in the manner required by this
11		Act. The Department may disallow the discount for retailers
12		whose certificate of registration is revoked at the time the
13		return is filed, but only if the Department's decision to
14		revoke the certificate of registration has become final.
15		Before October 1, 2000, if the taxpayer's average monthly
16		tax liability to the Department under this Act, the Use Tax
17		Act, the Service Occupation Tax Act, and the Service Use Tax
18		Act, excluding any liability for prepaid sales tax to be
19		remitted in accordance with Section 2d of this Act, was
20		$10,000 or more during the preceding 4 complete calendar
21		quarters, he shall file a return with the Department each
22		month by the 20th day of the month next following the month
23		during which such tax liability is incurred and shall make
24		payments to the Department on or before the 7th, 15th, 22nd and
25		last day of the month during which such liability is incurred.
26		On and after October 1, 2000, if the taxpayer's average

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1		monthly tax liability to the Department under this Act, the
2		Use Tax Act, the Service Occupation Tax Act, and the Service
3		Use Tax Act, excluding any liability for prepaid sales tax to
4		be remitted in accordance with Section 2d of this Act, was
5		$20,000 or more during the preceding 4 complete calendar
6		quarters, he shall file a return with the Department each
7		month by the 20th day of the month next following the month
8		during which such tax liability is incurred and shall make
9		payment to the Department on or before the 7th, 15th, 22nd and
10		last day of the month during which such liability is incurred.
11		If the month during which such tax liability is incurred began
12		prior to January 1, 1985, each payment shall be in an amount
13		equal to 1/4 of the taxpayer's actual liability for the month
14		or an amount set by the Department not to exceed 1/4 of the
15		average monthly liability of the taxpayer to the Department
16		for the preceding 4 complete calendar quarters (excluding the
17		month of highest liability and the month of lowest liability
18		in such 4 quarter period). If the month during which such tax
19		liability is incurred begins on or after January 1, 1985 and
20		prior to January 1, 1987, each payment shall be in an amount
21		equal to 22.5% of the taxpayer's actual liability for the
22		month or 27.5% of the taxpayer's liability for the same
23		calendar month of the preceding year. If the month during
24		which such tax liability is incurred begins on or after
25		January 1, 1987 and prior to January 1, 1988, each payment
26		shall be in an amount equal to 22.5% of the taxpayer's actual

HB4951 Enrolled - 591 - LRB103 38094 HLH 68226 b
1		liability for the month or 26.25% of the taxpayer's liability
2		for the same calendar month of the preceding year. If the month
3		during which such tax liability is incurred begins on or after
4		January 1, 1988, and prior to January 1, 1989, or begins on or
5		after January 1, 1996, each payment shall be in an amount equal
6		to 22.5% of the taxpayer's actual liability for the month or
7		25% of the taxpayer's liability for the same calendar month of
8		the preceding year. If the month during which such tax
9		liability is incurred begins on or after January 1, 1989, and
10		prior to January 1, 1996, each payment shall be in an amount
11		equal to 22.5% of the taxpayer's actual liability for the
12		month or 25% of the taxpayer's liability for the same calendar
13		month of the preceding year or 100% of the taxpayer's actual
14		liability for the quarter monthly reporting period. The amount
15		of such quarter monthly payments shall be credited against the
16		final tax liability of the taxpayer's return for that month.
17		Before October 1, 2000, once applicable, the requirement of
18		the making of quarter monthly payments to the Department by
19		taxpayers having an average monthly tax liability of $10,000
20		or more as determined in the manner provided above shall
21		continue until such taxpayer's average monthly liability to
22		the Department during the preceding 4 complete calendar
23		quarters (excluding the month of highest liability and the
24		month of lowest liability) is less than $9,000, or until such
25		taxpayer's average monthly liability to the Department as
26		computed for each calendar quarter of the 4 preceding complete

HB4951 Enrolled - 592 - LRB103 38094 HLH 68226 b
1		calendar quarter period is less than $10,000. However, if a
2		taxpayer can show the Department that a substantial change in
3		the taxpayer's business has occurred which causes the taxpayer
4		to anticipate that his average monthly tax liability for the
5		reasonably foreseeable future will fall below the $10,000
6		threshold stated above, then such taxpayer may petition the
7		Department for a change in such taxpayer's reporting status.
8		On and after October 1, 2000, once applicable, the requirement
9		of the making of quarter monthly payments to the Department by
10		taxpayers having an average monthly tax liability of $20,000
11		or more as determined in the manner provided above 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

HB4951 Enrolled - 593 - LRB103 38094 HLH 68226 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		0% in Public Act 102-700 on food for human consumption that is
4		to be consumed off the premises where it is sold (other than
5		alcoholic beverages, food consisting of or infused with adult
6		use cannabis, soft drinks, and food that has been prepared for
7		immediate consumption) had not occurred. For quarter monthly
8		payments due under this paragraph on or after July 1, 2023 and
9		through June 30, 2024, "25% of the taxpayer's liability for
10		the same calendar month of the preceding year" shall be
11		determined as if the rate reduction to 0% in Public Act 102-700
12		had not occurred. Quarter monthly payment status shall be
13		determined under this paragraph as if the rate reduction to
14		1.25% in Public Act 102-700 on sales tax holiday items had not
15		occurred. For quarter monthly payments due on or after July 1,
16		2023 and through June 30, 2024, "25% of the taxpayer's
17		liability for the same calendar month of the preceding year"
18		shall be determined as if the rate reduction to 1.25% in Public
19		Act 102-700 on sales tax holiday items had not occurred. If any
20		such quarter monthly payment is not paid at the time or in the
21		amount required by this Section, then the taxpayer shall be
22		liable for penalties and interest on the difference between
23		the minimum amount due as a payment and the amount of such
24		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

HB4951 Enrolled - 594 - LRB103 38094 HLH 68226 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		The provisions of this paragraph apply before October 1,
7		2001. Without regard to whether a taxpayer is required to make
8		quarter monthly payments as specified above, any taxpayer who
9		is required by Section 2d of this Act to collect and remit
10		prepaid taxes and has collected prepaid taxes which average in
11		excess of $25,000 per month during the preceding 2 complete
12		calendar quarters, shall file a return with the Department as
13		required by Section 2f and shall make payments to the
14		Department on or before the 7th, 15th, 22nd and last day of the
15		month during which such liability is incurred. If the month
16		during which such tax liability is incurred began prior to
17		September 1, 1985 (the effective date of Public Act 84-221),
18		each payment shall be in an amount not less than 22.5% of the
19		taxpayer's actual liability under Section 2d. If the month
20		during which such tax liability is incurred begins on or after
21		January 1, 1986, each payment shall be in an amount equal to
22		22.5% of the taxpayer's actual liability for the month or
23		27.5% of the taxpayer's liability for the same calendar month
24		of the preceding calendar year. If the month during which such
25		tax liability is incurred begins on or after January 1, 1987,
26		each payment shall be in an amount equal to 22.5% of the

HB4951 Enrolled - 595 - LRB103 38094 HLH 68226 b
1		taxpayer's actual liability for the month or 26.25% of the
2		taxpayer's liability for the same calendar month of the
3		preceding year. The amount of such quarter monthly payments
4		shall be credited against the final tax liability of the
5		taxpayer's return for that month filed under this Section or
6		Section 2f, as the case may be. Once applicable, the
7		requirement of the making of quarter monthly payments to the
8		Department pursuant to this paragraph shall continue until
9		such taxpayer's average monthly prepaid tax collections during
10		the preceding 2 complete calendar quarters is $25,000 or less.
11		If any such quarter monthly payment is not paid at the time or
12		in the amount required, the taxpayer shall be liable for
13		penalties and interest on such difference, except insofar as
14		the taxpayer has previously made payments for that month in
15		excess of the minimum payments previously due.
16		The provisions of this paragraph apply on and after
17		October 1, 2001. Without regard to whether a taxpayer is
18		required to make quarter monthly payments as specified above,
19		any taxpayer who is required by Section 2d of this Act to
20		collect and remit prepaid taxes and has collected prepaid
21		taxes that average in excess of $20,000 per month during the
22		preceding 4 complete calendar quarters shall file a return
23		with the Department as required by Section 2f and shall make
24		payments to the Department on or before the 7th, 15th, 22nd,
25		and last day of the month during which the liability is
26		incurred. Each payment shall be in an amount equal to 22.5% of

HB4951 Enrolled - 596 - LRB103 38094 HLH 68226 b
1		the taxpayer's actual liability for the month or 25% of the
2		taxpayer's liability for the same calendar month of the
3		preceding year. The amount of the quarter monthly payments
4		shall be credited against the final tax liability of the
5		taxpayer's return for that month filed under this Section or
6		Section 2f, as the case may be. Once applicable, the
7		requirement of the making of quarter monthly payments to the
8		Department pursuant to this paragraph shall continue until the
9		taxpayer's average monthly prepaid tax collections during the
10		preceding 4 complete calendar quarters (excluding the month of
11		highest liability and the month of lowest liability) is less
12		than $19,000 or until such taxpayer's average monthly
13		liability to the Department as computed for each calendar
14		quarter of the 4 preceding complete calendar quarters is less
15		than $20,000. If any such quarter monthly payment is not paid
16		at the time or in the amount required, the taxpayer shall be
17		liable for penalties and interest on such difference, except
18		insofar as the taxpayer has previously made payments for that
19		month in excess of the minimum payments previously due.
20		If any payment provided for in this Section exceeds the
21		taxpayer's liabilities under this Act, the Use Tax Act, the
22		Service Occupation Tax Act, and the Service Use Tax Act, as
23		shown on an original monthly return, the Department shall, if
24		requested by the taxpayer, issue to the taxpayer a credit
25		memorandum no later than 30 days after the date of payment. The
26		credit evidenced by such credit memorandum may be assigned by

HB4951 Enrolled - 597 - LRB103 38094 HLH 68226 b
1		the taxpayer to a similar taxpayer under this Act, the Use Tax
2		Act, the Service Occupation Tax Act, or the Service Use Tax
3		Act, in accordance with reasonable rules and regulations to be
4		prescribed by the Department. If no such request is made, the
5		taxpayer may credit such excess payment against tax liability
6		subsequently to be remitted to the Department under this Act,
7		the Use Tax Act, the Service Occupation Tax Act, or the Service
8		Use Tax Act, in accordance with reasonable rules and
9		regulations prescribed by the Department. If the Department
10		subsequently determined that all or any part of the credit
11		taken was not actually due to the taxpayer, the taxpayer's
12		2.1% and 1.75% vendor's discount shall be reduced by 2.1% or
13		1.75% of the difference between the credit taken and that
14		actually due, and that taxpayer shall be liable for penalties
15		and interest on such difference.
16		If a retailer of motor fuel is entitled to a credit under
17		Section 2d of this Act which exceeds the taxpayer's liability
18		to the Department under this Act for the month for which the
19		taxpayer is filing a return, the Department shall issue the
20		taxpayer a credit memorandum for the excess.
21		Beginning January 1, 1990, each month the Department shall
22		pay into the Local Government Tax Fund, a special fund in the
23		State treasury which is hereby created, the net revenue
24		realized for the preceding month from the 1% tax imposed under
25		this Act.
26		Beginning January 1, 1990, each month the Department shall

HB4951 Enrolled - 598 - LRB103 38094 HLH 68226 b
1		pay into the County and Mass Transit District Fund, a special
2		fund in the State treasury which is hereby created, 4% of the
3		net revenue realized for the preceding month from the 6.25%
4		general rate other than aviation fuel sold on or after
5		December 1, 2019. This exception for aviation fuel only
6		applies for so long as the revenue use requirements of 49
7		U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
8		Beginning August 1, 2000, each month the Department shall
9		pay into the County and Mass Transit District Fund 20% of the
10		net revenue realized for the preceding month from the 1.25%
11		rate on the selling price of motor fuel and gasohol. If, in any
12		month, the tax on sales tax holiday items, as defined in
13		Section 2-8, is imposed at the rate of 1.25%, then the
14		Department shall pay 20% of the net revenue realized for that
15		month from the 1.25% rate on the selling price of sales tax
16		holiday items into the County and Mass Transit District Fund.
17		Beginning January 1, 1990, each month the Department shall
18		pay into the Local Government Tax Fund 16% of the net revenue
19		realized for the preceding month from the 6.25% general rate
20		on the selling price of tangible personal property other than
21		aviation fuel sold on or after December 1, 2019. This
22		exception for aviation fuel only applies for so long as the
23		revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
24		47133 are binding on the State.
25		For aviation fuel sold on or after December 1, 2019, each
26		month the Department shall pay into the State Aviation Program

HB4951 Enrolled - 599 - LRB103 38094 HLH 68226 b
1		Fund 20% of the net revenue realized for the preceding month
2		from the 6.25% general rate on the selling price of aviation
3		fuel, less an amount estimated by the Department to be
4		required for refunds of the 20% portion of the tax on aviation
5		fuel under this Act, which amount shall be deposited into the
6		Aviation Fuel Sales Tax Refund Fund. The Department shall only
7		pay moneys into the State Aviation Program Fund and the
8		Aviation Fuel Sales Tax Refund Fund under this Act for so long
9		as the revenue use requirements of 49 U.S.C. 47107(b) and 49
10		U.S.C. 47133 are binding on the State.
11		Beginning August 1, 2000, each month the Department shall
12		pay into the Local Government Tax Fund 80% of the net revenue
13		realized for the preceding month from the 1.25% rate on the
14		selling price of motor fuel and gasohol. If, in any month, the
15		tax on sales tax holiday items, as defined in Section 2-8, is
16		imposed at the rate of 1.25%, then the Department shall pay 80%
17		of the net revenue realized for that month from the 1.25% rate
18		on the selling price of sales tax holiday items into the Local
19		Government Tax Fund.
20		Beginning October 1, 2009, each month the Department shall
21		pay into the Capital Projects Fund an amount that is equal to
22		an amount estimated by the Department to represent 80% of the
23		net revenue realized for the preceding month from the sale of
24		candy, grooming and hygiene products, and soft drinks that had
25		been taxed at a rate of 1% prior to September 1, 2009 but that
26		are now taxed at 6.25%.

HB4951 Enrolled - 600 - LRB103 38094 HLH 68226 b
1		Beginning July 1, 2011, each month the Department shall
2		pay into the Clean Air Act Permit Fund 80% of the net revenue
3		realized for the preceding month from the 6.25% general rate
4		on the selling price of sorbents used in Illinois in the
5		process of sorbent injection as used to comply with the
6		Environmental Protection Act or the federal Clean Air Act, but
7		the total payment into the Clean Air Act Permit Fund under this
8		Act and the Use Tax Act shall not exceed $2,000,000 in any
9		fiscal year.
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 Use Tax
13		Act, and the Service Occupation Tax Act an amount equal to the
14		average monthly deficit in the Underground Storage Tank Fund
15		during the prior year, as certified annually by the Illinois
16		Environmental Protection Agency, but the total payment into
17		the Underground Storage Tank Fund under this Act, the Use Tax
18		Act, the Service Use Tax Act, and the Service Occupation Tax
19		Act shall not exceed $18,000,000 in any State fiscal year. As
20		used in this paragraph, the "average monthly deficit" shall be
21		equal to the difference between the average monthly claims for
22		payment by the fund and the average monthly revenues deposited
23		into the fund, excluding payments made pursuant to this
24		paragraph.
25		Beginning July 1, 2015, of the remainder of the moneys
26		received by the Department under the Use Tax Act, the Service

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1		Use Tax Act, the Service Occupation Tax Act, and this Act, each
2		month the Department shall deposit $500,000 into the State
3		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 this Act,
12		Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
13		Act, and Section 9 of the Service Occupation Tax Act, such Acts
14		being hereinafter called the "Tax Acts" and such aggregate of
15		2.2% or 3.8%, as the case may be, of moneys being hereinafter
16		called the "Tax Act Amount", and (2) the amount transferred to
17		the Build Illinois Fund from the State and Local Sales Tax
18		Reform Fund shall be less than the Annual Specified Amount (as
19		hereinafter defined), an amount equal to the difference shall
20		be immediately paid into the Build Illinois Fund from other
21		moneys received by the Department pursuant to the Tax Acts;
22		the "Annual Specified Amount" means the amounts specified
23		below for fiscal years 1986 through 1993:
24 Fiscal Year Annual Specified Amount 25 1986 $54,800,000 26 1987 $76,650,000

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1 1988 $80,480,000 2 1989 $88,510,000 3 1990 $115,330,000 4 1991 $145,470,000 5 1992 $182,730,000 6 1993 $206,520,000;
7		and means the Certified Annual Debt Service Requirement (as
8		defined in Section 13 of the Build Illinois Bond Act) or the
9		Tax Act Amount, whichever is greater, for fiscal year 1994 and
10		each fiscal year thereafter; and further provided, that if on
11		the last business day of any month the sum of (1) the Tax Act
12		Amount required to be deposited into the Build Illinois Bond
13		Account in the Build Illinois Fund during such month and (2)
14		the amount transferred to the Build Illinois Fund from the
15		State and Local Sales Tax Reform Fund shall have been less than
16		1/12 of the Annual Specified Amount, 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 in no event shall the
20		payments required under the preceding proviso result in
21		aggregate payments into the Build Illinois Fund pursuant to
22		this clause (b) for any fiscal year in excess of the greater of
23		(i) the Tax Act Amount or (ii) the Annual Specified Amount for
24		such fiscal year. The amounts payable into the Build Illinois
25		Fund under clause (b) of the first sentence in this paragraph
26		shall be payable only until such time as the aggregate amount

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

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1		into the Build Illinois Fund are subject to the pledge, claim
2		and charge set forth in Section 12 of the Build Illinois Bond
3		Act.
4		Subject to payment of amounts into the Build Illinois Fund
5		as provided in the preceding paragraph or in any amendment
6		thereto hereafter enacted, the following specified monthly
7		installment of the amount requested in the certificate of the
8		Chairman of the Metropolitan Pier and Exposition Authority
9		provided under Section 8.25f of the State Finance Act, but not
10		in excess of sums designated as "Total Deposit", shall be
11		deposited in the aggregate from collections under Section 9 of
12		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
13		9 of the Service Occupation Tax Act, and Section 3 of the
14		Retailers' Occupation Tax Act into the McCormick Place
15		Expansion Project Fund in the specified fiscal years.
16 Fiscal Year Total Deposit 17 1993 $0 18 1994 53,000,000 19 1995 58,000,000 20 1996 61,000,000 21 1997 64,000,000 22 1998 68,000,000 23 1999 71,000,000 24 2000 75,000,000 25 2001 80,000,000 26 2002 93,000,000

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1 2003 99,000,000 2 2004 103,000,000 3 2005 108,000,000 4 2006 113,000,000 5 2007 119,000,000 6 2008 126,000,000 7 2009 132,000,000 8 2010 139,000,000 9 2011 146,000,000 10 2012 153,000,000 11 2013 161,000,000 12 2014 170,000,000 13 2015 179,000,000 14 2016 189,000,000 15 2017 199,000,000 16 2018 210,000,000 17 2019 221,000,000 18 2020 233,000,000 19 2021 300,000,000 20 2022 300,000,000 21 2023 300,000,000 22 2024 300,000,000 23 2025 300,000,000 24 2026 300,000,000 25 2027 375,000,000 26 2028 375,000,000

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1 2029 375,000,000 2 2030 375,000,000 3 2031 375,000,000 4 2032 375,000,000 5 2033 375,000,000 6 2034 375,000,000 7 2035 375,000,000 8 2036 450,000,000 9 and 10 each fiscal year 11 thereafter that bonds 12 are outstanding under 13 Section 13.2 of the 14 Metropolitan Pier and 15 Exposition Authority Act, 16 but not after fiscal year 2060.
17		Beginning July 20, 1993 and in each month of each fiscal
18		year thereafter, one-eighth of the amount requested in the
19		certificate of the Chairman of the Metropolitan Pier and
20		Exposition Authority for that fiscal year, less the amount
21		deposited into the McCormick Place Expansion Project Fund by
22		the State Treasurer in the respective month under subsection
23		(g) of Section 13 of the Metropolitan Pier and Exposition
24		Authority Act, plus cumulative deficiencies in the deposits
25		required under this Section for previous months and years,
26		shall be deposited into the McCormick Place Expansion Project

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1		Fund, until the full amount requested for the fiscal year, but
2		not in excess of the amount specified above as "Total
3		Deposit", has been deposited.
4		Subject to payment of amounts into the Capital Projects
5		Fund, the Clean Air Act Permit Fund, 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, for aviation fuel sold on or after December 1, 2019,
9		the Department shall each month deposit into the Aviation Fuel
10		Sales Tax Refund Fund an amount estimated by the Department to
11		be required for refunds of the 80% portion of the tax on
12		aviation fuel under this Act. The Department shall only
13		deposit moneys into the Aviation Fuel Sales Tax Refund Fund
14		under this paragraph for so long as the revenue use
15		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
16		binding on the State.
17		Subject to payment of amounts into the Build Illinois Fund
18		and the McCormick Place Expansion Project Fund pursuant to the
19		preceding paragraphs or in any amendments thereto hereafter
20		enacted, beginning July 1, 1993 and ending on September 30,
21		2013, the Department shall each month pay into the Illinois
22		Tax Increment Fund 0.27% of 80% of the net revenue realized for
23		the preceding month from the 6.25% general rate on the selling
24		price of tangible personal property.
25		Subject to payment of amounts into the Build Illinois
26		Fund, the McCormick Place Expansion Project Fund, and the

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

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1		public-private agreement between the public agency and private
2		entity and completion of the civic build, beginning on July 1,
3		2023, of the remainder of the moneys received by the
4		Department under the Use Tax Act, the Service Use Tax Act, the
5		Service Occupation Tax Act, and this Act, the Department shall
6		deposit the following specified deposits in the aggregate from
7		collections under the Use Tax Act, the Service Use Tax Act, the
8		Service Occupation Tax Act, and the Retailers' Occupation Tax
9		Act, as required under Section 8.25g of the State Finance Act
10		for distribution consistent with the Public-Private
11		Partnership for Civic and Transit Infrastructure Project Act.
12		The moneys received by the Department pursuant to this Act and
13		required to be deposited into the Civic and Transit
14		Infrastructure Fund are subject to the pledge, claim and
15		charge set forth in Section 25-55 of the Public-Private
16		Partnership for Civic and Transit Infrastructure Project Act.
17		As used in this paragraph, "civic build", "private entity",
18		"public-private agreement", and "public agency" have the
19		meanings provided in Section 25-10 of the Public-Private
20		Partnership for Civic and Transit Infrastructure Project Act.
21		Fiscal Year.............................Total Deposit
22		2024.....................................$200,000,000
23		2025....................................$206,000,000
24		2026....................................$212,200,000
25		2027....................................$218,500,000
26		2028....................................$225,100,000

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

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

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1		McCormick Place Expansion Project Fund, the Illinois Tax
2		Increment Fund, and the Tax Compliance and Administration Fund
3		as provided in this Section, the Department shall pay each
4		month into the Road Fund the amount estimated to represent 80%
5		of the net revenue realized from the taxes imposed on motor
6		fuel and gasohol. As used in this paragraph "motor fuel" has
7		the meaning given to that term in Section 1.1 of the Motor Fuel
8		Tax Law, and "gasohol" has the meaning given to that term in
9		Section 3-40 of the Use Tax Act.
10		Of the remainder of the moneys received by the Department
11		pursuant to this Act, 75% thereof shall be paid into the State
12		treasury and 25% shall be reserved in a special account and
13		used only for the transfer to the Common School Fund as part of
14		the monthly transfer from the General Revenue Fund in
15		accordance with Section 8a of the State Finance Act.
16		The Department may, upon separate written notice to a
17		taxpayer, require the taxpayer to prepare and file with the
18		Department on a form prescribed by the Department within not
19		less than 60 days after receipt of the notice an annual
20		information return for the tax year specified in the notice.
21		Such annual return to the Department shall include a statement
22		of gross receipts as shown by the retailer's last federal
23		Federal income tax return. If the total receipts of the
24		business as reported in the federal Federal income tax return
25		do not agree with the gross receipts reported to the
26		Department of Revenue for the same period, the retailer shall

HB4951 Enrolled - 613 - LRB103 38094 HLH 68226 b
1		attach to his annual return a schedule showing a
2		reconciliation of the 2 amounts and the reasons for the
3		difference. The retailer's annual return to the Department
4		shall also disclose the cost of goods sold by the retailer
5		during the year covered by such return, opening and closing
6		inventories of such goods for such year, costs of goods used
7		from stock or taken from stock and given away by the retailer
8		during such year, payroll information of the retailer's
9		business during such year and any additional reasonable
10		information which the Department deems would be helpful in
11		determining the accuracy of the monthly, quarterly, or annual
12		returns filed by such retailer as provided for in this
13		Section.
14		If the annual information return required by this Section
15		is not filed when and as required, the taxpayer shall be liable
16		as follows:
17		(i) Until January 1, 1994, the taxpayer shall be
18		liable for a penalty equal to 1/6 of 1% of the tax due from
19		such taxpayer under this Act during the period to be
20		covered by the annual return for each month or fraction of
21		a month until such return is filed as required, the
22		penalty to be assessed and collected in the same manner as
23		any other penalty provided for in this Act.
24		(ii) On and after January 1, 1994, the taxpayer shall
25		be liable for a penalty as described in Section 3-4 of the
26		Uniform Penalty and Interest Act.

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1		The chief executive officer, proprietor, owner, or highest
2		ranking manager shall sign the annual return to certify the
3		accuracy of the information contained therein. Any person who
4		willfully signs the annual return containing false or
5		inaccurate information shall be guilty of perjury and punished
6		accordingly. The annual return form prescribed by the
7		Department shall include a warning that the person signing the
8		return may be liable for perjury.
9		The provisions of this Section concerning the filing of an
10		annual information return do not apply to a retailer who is not
11		required to file an income tax return with the United States
12		Government.
13		As soon as possible after the first day of each month, upon
14		certification of the Department of Revenue, the Comptroller
15		shall order transferred and the Treasurer shall transfer from
16		the General Revenue Fund to the Motor Fuel Tax Fund an amount
17		equal to 1.7% of 80% of the net revenue realized under this Act
18		for the second preceding month. Beginning April 1, 2000, this
19		transfer is no longer required and shall not be made.
20		Net revenue realized for a month shall be the revenue
21		collected by the State pursuant to this Act, less the amount
22		paid out during that month as refunds to taxpayers for
23		overpayment of liability.
24		For greater simplicity of administration, manufacturers,
25		importers and wholesalers whose products are sold at retail in
26		Illinois by numerous retailers, and who wish to do so, may

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1		assume the responsibility for accounting and paying to the
2		Department all tax accruing under this Act with respect to
3		such sales, if the retailers who are affected do not make
4		written objection to the Department to this arrangement.
5		Any person who promotes, organizes, or provides retail
6		selling space for concessionaires or other types of sellers at
7		the Illinois State Fair, DuQuoin State Fair, county fairs,
8		local fairs, art shows, flea markets, and similar exhibitions
9		or events, including any transient merchant as defined by
10		Section 2 of the Transient Merchant Act of 1987, is required to
11		file a report with the Department providing the name of the
12		merchant's business, the name of the person or persons engaged
13		in merchant's business, the permanent address and Illinois
14		Retailers Occupation Tax Registration Number of the merchant,
15		the dates and location of the event, and other reasonable
16		information that the Department may require. The report must
17		be filed not later than the 20th day of the month next
18		following the month during which the event with retail sales
19		was held. Any person who fails to file a report required by
20		this Section commits a business offense and is subject to a
21		fine not to exceed $250.
22		Any person engaged in the business of selling tangible
23		personal property at retail as a concessionaire or other type
24		of seller at the Illinois State Fair, county fairs, art shows,
25		flea markets, and similar exhibitions or events, or any
26		transient merchants, as defined by Section 2 of the Transient

HB4951 Enrolled - 616 - LRB103 38094 HLH 68226 b
1		Merchant Act of 1987, may be required to make a daily report of
2		the amount of such sales to the Department and to make a daily
3		payment of the full amount of tax due. The Department shall
4		impose this requirement when it finds that there is a
5		significant risk of loss of revenue to the State at such an
6		exhibition or event. Such a finding shall be based on evidence
7		that a substantial number of concessionaires or other sellers
8		who are not residents of Illinois will be engaging in the
9		business of selling tangible personal property at retail at
10		the exhibition or event, or other evidence of a significant
11		risk of loss of revenue to the State. The Department shall
12		notify concessionaires and other sellers affected by the
13		imposition of this requirement. In the absence of notification
14		by the Department, the concessionaires and other sellers shall
15		file their returns as otherwise required in this Section.
16		(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60,
17		Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
18		65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
19		1-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363,
20		eff. 7-28-23; revised 9-27-23.)
21		Section 75-25. The Innovation Development and Economy Act
22		is amended by changing Section 31 as follows:
23		(50 ILCS 470/31)
24		Sec. 31. STAR bond occupation taxes.

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1		(a) If the corporate authorities of a political
2		subdivision have established a STAR bond district and have
3		elected to impose a tax by ordinance pursuant to subsection
4		(b) or (c) of this Section, each year after the date of the
5		adoption of the ordinance and until all STAR bond project
6		costs and all political subdivision obligations financing the
7		STAR bond project costs, if any, have been paid in accordance
8		with the STAR bond project plans, but in no event longer than
9		the maximum maturity date of the last of the STAR bonds issued
10		for projects in the STAR bond district, all amounts generated
11		by the retailers' occupation tax and service occupation tax
12		shall be collected and the tax shall be enforced by the
13		Department of Revenue in the same manner as all retailers'
14		occupation taxes and service occupation taxes imposed in the
15		political subdivision imposing the tax. The corporate
16		authorities of the political subdivision shall deposit the
17		proceeds of the taxes imposed under subsections (b) and (c)
18		into either (i) a special fund held by the corporate
19		authorities of the political subdivision called the STAR Bonds
20		Tax Allocation Fund for the purpose of paying STAR bond
21		project costs and obligations incurred in the payment of those
22		costs if such taxes are designated as pledged STAR revenues by
23		resolution or ordinance of the political subdivision or (ii)
24		the political subdivision's general corporate fund if such
25		taxes are not designated as pledged STAR revenues by
26		resolution or ordinance.

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1		The tax imposed under this Section by a municipality may
2		be imposed only on the portion of a STAR bond district that is
3		within the boundaries of the municipality. For any part of a
4		STAR bond district that lies outside of the boundaries of that
5		municipality, the municipality in which the other part of the
6		STAR bond district lies (or the county, in cases where a
7		portion of the STAR bond district lies in the unincorporated
8		area of a county) is authorized to impose the tax under this
9		Section on that part of the STAR bond district.
10		(b) The corporate authorities of a political subdivision
11		that has established a STAR bond district under this Act may,
12		by ordinance or resolution, impose a STAR Bond Retailers'
13		Occupation Tax upon all persons engaged in the business of
14		selling tangible personal property, other than an item of
15		tangible personal property titled or registered with an agency
16		of this State's government, at retail in the STAR bond
17		district at a rate not to exceed 1% of the gross receipts from
18		the sales made in the course of that business, to be imposed
19		only in 0.25% increments. The tax may not be imposed on
20		tangible personal property taxed at the 1% rate under the
21		Retailers' Occupation Tax Act (or at the 0% rate imposed under
22		this amendatory Act of the 102nd General Assembly). Beginning
23		December 1, 2019 and through December 31, 2020, this tax is not
24		imposed on sales of aviation fuel unless the tax revenue is
25		expended for airport-related purposes. If the District does
26		not have an airport-related purpose to which aviation fuel tax

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1		revenue is dedicated, then aviation fuel is excluded from the
2		tax. The municipality must comply with the certification
3		requirements for airport-related purposes under Section 2-22
4		of the Retailers' Occupation Tax Act. For purposes of this
5		Act, "airport-related purposes" has the meaning ascribed in
6		Section 6z-20.2 of the State Finance Act. Beginning January 1,
7		2021, this tax is not imposed on sales of aviation fuel for so
8		long as the revenue use requirements of 49 U.S.C. 47107(b) and
9		49 U.S.C. 47133 are binding on the District.
10		The tax imposed under this subsection and all civil
11		penalties that may be assessed as an incident thereof shall be
12		collected and enforced by the Department of Revenue. The
13		certificate of registration that is issued by the Department
14		to a retailer under the Retailers' Occupation Tax Act shall
15		permit the retailer to engage in a business that is taxable
16		under any ordinance or resolution enacted pursuant to this
17		subsection without registering separately with the Department
18		under such ordinance or resolution or under this subsection.
19		The Department of Revenue shall have full power to administer
20		and enforce this subsection, to collect all taxes and
21		penalties due under this subsection in the manner hereinafter
22		provided, and to determine all rights to credit memoranda
23		arising on account of the erroneous payment of tax or penalty
24		under this subsection. In the administration of, and
25		compliance with, this subsection, the Department and persons
26		who are subject to this subsection shall have the same rights,

HB4951 Enrolled - 620 - LRB103 38094 HLH 68226 b
1		remedies, privileges, immunities, powers, and duties, and be
2		subject to the same conditions, restrictions, limitations,
3		penalties, exclusions, exemptions, and definitions of terms
4		and employ the same modes of procedure, as are prescribed in
5		Sections 1, 1a through 1o, 2 through 2-65 (in respect to all
6		provisions therein other than the State rate of tax), 2c
7		through 2h, 3 (except as to the disposition of taxes and
8		penalties collected, and except that the retailer's discount
9		is not allowed for taxes paid on aviation fuel that are subject
10		to the revenue use requirements of 49 U.S.C. 47107(b) and 49
11		U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k,
12		5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the
13		Retailers' Occupation Tax Act and all provisions of the
14		Uniform Penalty and Interest Act, as fully as if those
15		provisions were set forth herein.
16		If a tax is imposed under this subsection (b), a tax shall
17		also be imposed under subsection (c) of this Section.
18		(c) If a tax has been imposed under subsection (b), a STAR
19		Bond Service Occupation Tax shall also be imposed upon all
20		persons engaged, in the STAR bond district, in the business of
21		making sales of service, who, as an incident to making those
22		sales of service, transfer tangible personal property within
23		the STAR bond district, either in the form of tangible
24		personal property or in the form of real estate as an incident
25		to a sale of service. The tax shall be imposed at the same rate
26		as the tax imposed in subsection (b) and shall not exceed 1% of

HB4951 Enrolled - 621 - LRB103 38094 HLH 68226 b
1		the selling price of tangible personal property so transferred
2		within the STAR bond district, to be imposed only in 0.25%
3		increments. The tax may not be imposed on tangible personal
4		property taxed at the 1% rate under the Service Occupation Tax
5		Act (or at the 0% rate imposed under this amendatory Act of the
6		102nd General Assembly). Beginning December 1, 2019 and
7		through December 31, 2020, this tax is not imposed on sales of
8		aviation fuel unless the tax revenue is expended for
9		airport-related purposes. If the District does not have an
10		airport-related purpose to which aviation fuel tax revenue is
11		dedicated, then aviation fuel is excluded from the tax. The
12		municipality must comply with the certification requirements
13		for airport-related purposes under Section 2-22 of the
14		Retailers' Occupation Tax Act. For purposes of this Act,
15		"airport-related purposes" has the meaning ascribed in Section
16		6z-20.2 of the State Finance Act. Beginning January 1, 2021,
17		this tax is not imposed on sales of aviation fuel for so long
18		as the revenue use requirements of 49 U.S.C. 47107(b) and 49
19		U.S.C. 47133 are binding on the District.
20		The tax imposed under this subsection and all civil
21		penalties that may be assessed as an incident thereof shall be
22		collected and enforced by the Department of Revenue. The
23		certificate of registration that is issued by the Department
24		to a retailer under the Retailers' Occupation Tax Act or under
25		the Service Occupation Tax Act shall permit the registrant to
26		engage in a business that is taxable under any ordinance or

HB4951 Enrolled - 622 - LRB103 38094 HLH 68226 b
1		resolution enacted pursuant to this subsection without
2		registering separately with the Department under that
3		ordinance or resolution or under this subsection. The
4		Department of Revenue shall have full power to administer and
5		enforce this subsection, to collect all taxes and penalties
6		due under this subsection, to dispose of taxes and penalties
7		so collected in the manner hereinafter provided, and to
8		determine all rights to credit memoranda arising on account of
9		the erroneous payment of tax or penalty under this subsection.
10		In the administration of, and compliance with this subsection,
11		the Department and persons who are subject to this subsection
12		shall have the same rights, remedies, privileges, immunities,
13		powers, and duties, and be subject to the same conditions,
14		restrictions, limitations, penalties, exclusions, exemptions,
15		and definitions of terms and employ the same modes of
16		procedure as are prescribed in Sections 2, 2a through 2d, 3
17		through 3-50 (in respect to all provisions therein other than
18		the State rate of tax), 4 (except that the reference to the
19		State shall be to the STAR bond district), 5, 7, 8 (except that
20		the jurisdiction to which the tax shall be a debt to the extent
21		indicated in that Section 8 shall be the political
22		subdivision), 9 (except as to the disposition of taxes and
23		penalties collected, and except that the returned merchandise
24		credit for this tax may not be taken against any State tax, and
25		except that the retailer's discount is not allowed for taxes
26		paid on aviation fuel that are subject to the revenue use

HB4951 Enrolled - 623 - LRB103 38094 HLH 68226 b
1		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
2		11, 12 (except the reference therein to Section 2b of the
3		Retailers' Occupation Tax Act), 13 (except that any reference
4		to the State shall mean the political subdivision), the first
5		paragraph of Section 15, and Sections 16, 17, 18, 19 and 20 of
6		the Service Occupation Tax Act and all provisions of the
7		Uniform Penalty and Interest Act, as fully as if those
8		provisions were set forth herein.
9		If a tax is imposed under this subsection (c), a tax shall
10		also be imposed under subsection (b) of this Section.
11		(c-5) If, on January 1, 2025, a unit of local government
12		has in effect a tax under this Section, or if, after January 1,
13		2025, a unit of local government imposes a tax under this
14		Section, then that tax applies to leases of tangible personal
15		property in effect, entered into, or renewed on or after that
16		date in the same manner as the tax under this Section and in
17		accordance with the changes made by this amendatory Act of the
18		103rd General Assembly.
19		(d) Persons subject to any tax imposed under this Section
20		may reimburse themselves for their seller's tax liability
21		under this Section by separately stating the tax as an
22		additional charge, which charge may be stated in combination,
23		in a single amount, with State taxes that sellers are required
24		to collect under the Use Tax Act, in accordance with such
25		bracket schedules as the Department may prescribe.
26		Whenever the Department determines that a refund should be

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1		made under this Section to a claimant instead of issuing a
2		credit memorandum, the Department shall notify the State
3		Comptroller, who shall cause the order to be drawn for the
4		amount specified and to the person named in the notification
5		from the Department. The refund shall be paid by the State
6		Treasurer out of the STAR Bond Retailers' Occupation Tax Fund
7		or the Local Government Aviation Trust Fund, as appropriate.
8		Except as otherwise provided in this paragraph, the
9		Department shall immediately pay over to the State Treasurer,
10		ex officio, as trustee, all taxes, penalties, and interest
11		collected under this Section for deposit into the STAR Bond
12		Retailers' Occupation Tax Fund. Taxes and penalties collected
13		on aviation fuel sold on or after December 1, 2019, shall be
14		immediately paid over by the Department to the State
15		Treasurer, ex officio, as trustee, for deposit into the Local
16		Government Aviation Trust Fund. The Department shall only pay
17		moneys into the Local Government Aviation Trust Fund under
18		this Section for so long as the revenue use requirements of 49
19		U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
20		District. On or before the 25th day of each calendar month, the
21		Department shall prepare and certify to the Comptroller the
22		disbursement of stated sums of money to named political
23		subdivisions from the STAR Bond Retailers' Occupation Tax
24		Fund, the political subdivisions to be those from which
25		retailers have paid taxes or penalties under this Section to
26		the Department during the second preceding calendar month. The

HB4951 Enrolled - 625 - LRB103 38094 HLH 68226 b
1		amount to be paid to each political subdivision shall be the
2		amount (not including credit memoranda and not including taxes
3		and penalties collected on aviation fuel sold on or after
4		December 1, 2019) collected under this Section during the
5		second preceding calendar month by the Department plus an
6		amount the Department determines is necessary to offset any
7		amounts that were erroneously paid to a different taxing body,
8		and not including an amount equal to the amount of refunds made
9		during the second preceding calendar month by the Department,
10		less 3% of that amount, which shall be deposited into the Tax
11		Compliance and Administration Fund and shall be used by the
12		Department, subject to appropriation, to cover the costs of
13		the Department in administering and enforcing the provisions
14		of this Section, on behalf of such political subdivision, and
15		not including any amount that the Department determines is
16		necessary to offset any amounts that were payable to a
17		different taxing body but were erroneously paid to the
18		political subdivision. Within 10 days after receipt by the
19		Comptroller of the disbursement certification to the political
20		subdivisions provided for in this Section to be given to the
21		Comptroller by the Department, the Comptroller shall cause the
22		orders to be drawn for the respective amounts in accordance
23		with the directions contained in the certification. The
24		proceeds of the tax paid to political subdivisions under this
25		Section shall be deposited into either (i) the STAR Bonds Tax
26		Allocation Fund by the political subdivision if the political

HB4951 Enrolled - 626 - LRB103 38094 HLH 68226 b
1		subdivision has designated them as pledged STAR revenues by
2		resolution or ordinance or (ii) the political subdivision's
3		general corporate fund if the political subdivision has not
4		designated them as pledged STAR revenues.
5		An ordinance or resolution imposing or discontinuing the
6		tax under this Section or effecting a change in the rate
7		thereof shall either (i) be adopted and a certified copy
8		thereof filed with the Department on or before the first day of
9		April, whereupon the Department, if all other requirements of
10		this Section are met, shall proceed to administer and enforce
11		this Section as of the first day of July next following the
12		adoption and filing; or (ii) be adopted and a certified copy
13		thereof filed with the Department on or before the first day of
14		October, whereupon, if all other requirements of this Section
15		are met, the Department shall proceed to administer and
16		enforce this Section as of the first day of January next
17		following the adoption and filing.
18		The Department of Revenue shall not administer or enforce
19		an ordinance imposing, discontinuing, or changing the rate of
20		the tax under this Section until the political subdivision
21		also provides, in the manner prescribed by the Department, the
22		boundaries of the STAR bond district and each address in the
23		STAR bond district in such a way that the Department can
24		determine by its address whether a business is located in the
25		STAR bond district. The political subdivision must provide
26		this boundary and address information to the Department on or

HB4951 Enrolled - 627 - LRB103 38094 HLH 68226 b
1		before April 1 for administration and enforcement of the tax
2		under this Section by the Department beginning on the
3		following July 1 and on or before October 1 for administration
4		and enforcement of the tax under this Section by the
5		Department beginning on the following January 1. The
6		Department of Revenue shall not administer or enforce any
7		change made to the boundaries of a STAR bond district or any
8		address change, addition, or deletion until the political
9		subdivision reports the boundary change or address change,
10		addition, or deletion to the Department in the manner
11		prescribed by the Department. The political subdivision must
12		provide this boundary change or address change, addition, or
13		deletion information to the Department on or before April 1
14		for administration and enforcement by the Department of the
15		change, addition, or deletion beginning on the following July
16		1 and on or before October 1 for administration and
17		enforcement by the Department of the change, addition, or
18		deletion beginning on the following January 1. The retailers
19		in the STAR bond district shall be responsible for charging
20		the tax imposed under this Section. If a retailer is
21		incorrectly included or excluded from the list of those
22		required to collect the tax under this Section, both the
23		Department of Revenue and the retailer shall be held harmless
24		if they reasonably relied on information provided by the
25		political subdivision.
26		A political subdivision that imposes the tax under this

HB4951 Enrolled - 628 - LRB103 38094 HLH 68226 b
1		Section must submit to the Department of Revenue any other
2		information as the Department may require that is necessary
3		for the administration and enforcement of the tax.
4		When certifying the amount of a monthly disbursement to a
5		political subdivision 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		Nothing in this Section shall be construed to authorize
11		the political subdivision to impose a tax upon the privilege
12		of engaging in any business which under the Constitution of
13		the United States may not be made the subject of taxation by
14		this State.
15		(e) When STAR bond project costs, including, without
16		limitation, all political subdivision obligations financing
17		STAR bond project costs, have been paid, any surplus funds
18		then remaining in the STAR Bonds Tax Allocation Fund shall be
19		distributed to the treasurer of the political subdivision for
20		deposit into the political subdivision's general corporate
21		fund. Upon payment of all STAR bond project costs and
22		retirement of obligations, but in no event later than the
23		maximum maturity date of the last of the STAR bonds issued in
24		the STAR bond district, the political subdivision shall adopt
25		an ordinance immediately rescinding the taxes imposed pursuant
26		to this Section and file a certified copy of the ordinance with

HB4951 Enrolled - 629 - LRB103 38094 HLH 68226 b
1		the Department in the form and manner as described in this
2		Section.
3		(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19;
4		102-700, eff. 4-19-22.)
5		Section 75-30. The Counties Code is amended by changing
6		Sections 5-1006, 5-1006.5, 5-1006.7, 5-1007, and 5-1008.5 as
7		follows:
8		(55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
9		Sec. 5-1006. Home Rule County Retailers' Occupation Tax
10		Law. Any county that is a home rule unit may impose a tax upon
11		all persons engaged in the business of selling tangible
12		personal property, other than an item of tangible personal
13		property titled or registered with an agency of this State's
14		government, at retail in the county on the gross receipts from
15		such sales made in the course of their business. If imposed,
16		this tax shall only be imposed in 1/4% increments. On and after
17		September 1, 1991, this additional tax may not be imposed on
18		tangible personal property taxed at the 1% rate under the
19		Retailers' Occupation Tax Act (or at the 0% rate imposed under
20		this amendatory Act of the 102nd General Assembly). Beginning
21		December 1, 2019, this tax is not imposed on sales of aviation
22		fuel unless the tax revenue is expended for airport-related
23		purposes. If the county does not have an airport-related
24		purpose to which it dedicates aviation fuel tax revenue, then

HB4951 Enrolled - 630 - LRB103 38094 HLH 68226 b
1		aviation fuel is excluded from the tax. The county must comply
2		with the certification requirements for airport-related
3		purposes under Section 2-22 of the Retailers' Occupation Tax
4		Act. For purposes of this Section, "airport-related purposes"
5		has the meaning ascribed in Section 6z-20.2 of the State
6		Finance Act. This exclusion for aviation fuel only applies for
7		so long as the revenue use requirements of 49 U.S.C. 47107(b)
8		and 49 U.S.C. 47133 are binding on the county. The changes made
9		to this Section by this amendatory Act of the 101st General
10		Assembly are a denial and limitation of home rule powers and
11		functions under subsection (g) of Section 6 of Article VII of
12		the Illinois Constitution.
13		If, on January 1, 2025, a unit of local government has in
14		effect a tax under this Section, or if, after January 1, 2025,
15		a unit of local government imposes a tax under this Section,
16		then that tax applies to leases of tangible personal property
17		in effect, entered into, or renewed on or after that date in
18		the same manner as the tax under this Section and in accordance
19		with the changes made by this amendatory Act of the 103rd
20		General Assembly.
21		The tax imposed by a home rule county pursuant to this
22		Section and all civil penalties that may be assessed as an
23		incident thereof shall be collected and enforced by the State
24		Department of Revenue. The certificate of registration that is
25		issued by the Department to a retailer under the Retailers'
26		Occupation Tax Act shall permit the retailer to engage in a

HB4951 Enrolled - 631 - LRB103 38094 HLH 68226 b
1		business that is taxable under any ordinance or resolution
2		enacted pursuant to this Section without registering
3		separately with the Department under such ordinance or
4		resolution or under this Section. The Department shall have
5		full power to administer and enforce this Section; to collect
6		all taxes and penalties due hereunder; to dispose of taxes and
7		penalties so collected in the manner hereinafter provided; and
8		to determine all rights to credit memoranda arising on account
9		of the erroneous payment of tax or penalty hereunder. In the
10		administration of, and compliance with, this Section, the
11		Department and persons who are subject to this Section shall
12		have the same rights, remedies, privileges, immunities, powers
13		and duties, and be subject to the same conditions,
14		restrictions, limitations, penalties and definitions of terms,
15		and employ the same modes of procedure, as are prescribed in
16		Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through
17		2-65 (in respect to all provisions therein other than the
18		State rate of tax), 3 (except as to the disposition of taxes
19		and penalties collected, and except that the retailer's
20		discount is not allowed for taxes paid on aviation fuel that
21		are subject to the revenue use requirements of 49 U.S.C.
22		47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
23		5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
24		and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
25		the Uniform Penalty and Interest Act, as fully as if those
26		provisions were set forth herein.

HB4951 Enrolled - 632 - LRB103 38094 HLH 68226 b
1		No tax may be imposed by a home rule county pursuant to
2		this Section unless the county also imposes a tax at the same
3		rate pursuant to Section 5-1007.
4		Persons subject to any tax imposed pursuant to the
5		authority granted in this Section may reimburse themselves for
6		their seller's tax liability hereunder by separately stating
7		such tax as an additional charge, which charge may be stated in
8		combination, in a single amount, with State tax which sellers
9		are required to collect under the Use Tax Act, pursuant to such
10		bracket schedules as the Department may prescribe.
11		Whenever the Department determines that a refund should be
12		made under this Section to a claimant instead of issuing a
13		credit memorandum, the Department shall notify the State
14		Comptroller, who shall cause the order to be drawn for the
15		amount specified and to the person named in the notification
16		from the Department. The refund shall be paid by the State
17		Treasurer out of the home rule county retailers' occupation
18		tax fund or the Local Government Aviation Trust Fund, as
19		appropriate.
20		Except as otherwise provided in this paragraph, the
21		Department shall forthwith pay over to the State Treasurer, ex
22		officio, as trustee, all taxes and penalties collected
23		hereunder for deposit into the Home Rule County Retailers'
24		Occupation Tax Fund. Taxes and penalties collected on aviation
25		fuel sold on or after December 1, 2019, shall be immediately
26		paid over by the Department to the State Treasurer, ex

HB4951 Enrolled - 633 - LRB103 38094 HLH 68226 b
1		officio, as trustee, for deposit into the Local Government
2		Aviation Trust Fund. The Department shall only pay moneys into
3		the Local Government Aviation Trust Fund under this Section
4		for so long as the revenue use requirements of 49 U.S.C.
5		47107(b) and 49 U.S.C. 47133 are binding on the county.
6		As soon as possible after the first day of each month,
7		beginning January 1, 2011, upon certification of the
8		Department of Revenue, the Comptroller shall order
9		transferred, and the Treasurer shall transfer, to the STAR
10		Bonds Revenue Fund the local sales tax increment, as defined
11		in the Innovation Development and Economy Act, collected under
12		this Section during the second preceding calendar month for
13		sales within a STAR bond district.
14		After the monthly transfer to the STAR Bonds Revenue Fund,
15		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 counties, the
18		counties to be those from which retailers have paid taxes or
19		penalties hereunder to the Department during the second
20		preceding calendar month. The amount to be paid to each county
21		shall be the amount (not including credit memoranda and not
22		including taxes and penalties collected on aviation fuel sold
23		on or after December 1, 2019) collected hereunder during the
24		second preceding calendar month by the Department plus an
25		amount the Department determines is necessary to offset any
26		amounts that were erroneously paid to a different taxing body,

HB4951 Enrolled - 634 - LRB103 38094 HLH 68226 b
1		and not including an amount equal to the amount of refunds made
2		during the second preceding calendar month by the Department
3		on behalf of such county, and not including any amount which
4		the Department determines is necessary to offset any amounts
5		which were payable to a different taxing body but were
6		erroneously paid to the county, and not including any amounts
7		that are transferred to the STAR Bonds Revenue Fund, less 1.5%
8		of the remainder, which the Department shall transfer into the
9		Tax Compliance and Administration Fund. The Department, at the
10		time of each monthly disbursement to the counties, shall
11		prepare and certify to the State Comptroller the amount to be
12		transferred into the Tax Compliance and Administration Fund
13		under this Section. Within 10 days after receipt, by the
14		Comptroller, of the disbursement certification to the counties
15		and the Tax Compliance and Administration Fund provided for in
16		this Section to be given to the Comptroller by the Department,
17		the Comptroller shall cause the orders to be drawn for the
18		respective amounts in accordance with the directions contained
19		in the certification.
20		In addition to the disbursement required by the preceding
21		paragraph, an allocation shall be made in March of each year to
22		each county that received more than $500,000 in disbursements
23		under the preceding paragraph in the preceding calendar year.
24		The allocation shall be in an amount equal to the average
25		monthly distribution made to each such county under the
26		preceding paragraph during the preceding calendar year

HB4951 Enrolled - 635 - LRB103 38094 HLH 68226 b
1		(excluding the 2 months of highest receipts). The distribution
2		made in March of each year subsequent to the year in which an
3		allocation was made pursuant to this paragraph and the
4		preceding paragraph shall be reduced by the amount allocated
5		and disbursed under this paragraph in the preceding calendar
6		year. The Department shall prepare and certify to the
7		Comptroller for disbursement the allocations made in
8		accordance with this paragraph.
9		For the purpose of determining the local governmental unit
10		whose tax is applicable, a retail sale by a producer of coal or
11		other mineral mined in Illinois is a sale at retail at the
12		place where the coal or other mineral mined in Illinois is
13		extracted from the earth. This paragraph does not apply to
14		coal or other mineral when it is delivered or shipped by the
15		seller to the purchaser at a point outside Illinois so that the
16		sale is exempt under the United States Constitution as a sale
17		in interstate or foreign commerce.
18		Nothing in this Section shall be construed to authorize a
19		county to impose a tax upon the privilege of engaging in any
20		business which under the Constitution of the United States may
21		not be made the subject of taxation by this State.
22		An ordinance or resolution imposing or discontinuing a tax
23		hereunder or effecting a change in the rate thereof shall be
24		adopted and a certified copy thereof filed with the Department
25		on or before the first day of June, whereupon the Department
26		shall proceed to administer and enforce this Section as of the

HB4951 Enrolled - 636 - LRB103 38094 HLH 68226 b
1		first day of September next following such adoption and
2		filing. Beginning January 1, 1992, an ordinance or resolution
3		imposing or discontinuing the tax hereunder or effecting a
4		change in the rate thereof shall be adopted and a certified
5		copy thereof filed with the Department on or before the first
6		day of July, whereupon the Department shall proceed to
7		administer and enforce this Section as of the first day of
8		October next following such adoption and filing. Beginning
9		January 1, 1993, an ordinance or resolution imposing or
10		discontinuing the tax hereunder or effecting a change in the
11		rate thereof shall be adopted and a certified copy thereof
12		filed with the Department on or before the first day of
13		October, whereupon the Department shall proceed to administer
14		and enforce this Section as of the first day of January next
15		following such adoption and filing. Beginning April 1, 1998,
16		an ordinance or resolution imposing or discontinuing the tax
17		hereunder or effecting a change in the rate thereof shall
18		either (i) be adopted and a certified copy thereof filed with
19		the Department on or before the first day of April, whereupon
20		the Department shall proceed to administer and enforce this
21		Section as of the first day of July next following the adoption
22		and filing; or (ii) be adopted and a certified copy thereof
23		filed with the Department on or before the first day of
24		October, whereupon the Department shall proceed to administer
25		and enforce this Section as of the first day of January next
26		following the adoption and filing.

HB4951 Enrolled - 637 - LRB103 38094 HLH 68226 b
1		When certifying the amount of a monthly disbursement to a
2		county under this Section, the Department shall increase or
3		decrease such amount by an amount necessary to offset any
4		misallocation of previous disbursements. The offset amount
5		shall be the amount erroneously disbursed within the previous
6		6 months from the time a misallocation is discovered.
7		This Section shall be known and may be cited as the Home
8		Rule County Retailers' Occupation Tax Law.
9		(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
10		101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
11		(55 ILCS 5/5-1006.5)
12		Sec. 5-1006.5. Special County Retailers' Occupation Tax
13		For Public Safety, Public Facilities, Mental Health, Substance
14		Abuse, or Transportation.
15		(a) The county board of any county may impose a tax upon
16		all persons engaged in the business of selling tangible
17		personal property, other than personal property titled or
18		registered with an agency of this State's government, at
19		retail in the county on the gross receipts from the sales made
20		in the course of business to provide revenue to be used
21		exclusively for public safety, public facility, mental health,
22		substance abuse, or transportation purposes in that county
23		(except as otherwise provided in this Section), if a
24		proposition for the tax has been submitted to the electors of
25		that county and approved by a majority of those voting on the

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1		question. If imposed, this tax shall be imposed only in
2		one-quarter percent increments. By resolution, the county
3		board may order the proposition to be submitted at any
4		election. If the tax is imposed for transportation purposes
5		for expenditures for public highways or as authorized under
6		the Illinois Highway Code, the county board must publish
7		notice of the existence of its long-range highway
8		transportation plan as required or described in Section 5-301
9		of the Illinois Highway Code and must make the plan publicly
10		available prior to approval of the ordinance or resolution
11		imposing the tax. If the tax is imposed for transportation
12		purposes for expenditures for passenger rail transportation,
13		the county board must publish notice of the existence of its
14		long-range passenger rail transportation plan and must make
15		the plan publicly available prior to approval of the ordinance
16		or resolution imposing the tax.
17		If a tax is imposed for public facilities purposes, then
18		the name of the project may be included in the proposition at
19		the discretion of the county board as determined in the
20		enabling resolution. For example, the "XXX Nursing Home" or
21		the "YYY Museum".
22		The county clerk shall certify the question to the proper
23		election authority, who shall submit the proposition at an
24		election in accordance with the general election law.
25		(1) The proposition for public safety purposes shall
26		be in substantially the following form:

HB4951 Enrolled - 639 - LRB103 38094 HLH 68226 b
1		"To pay for public safety purposes, shall (name of
2		county) be authorized to impose an increase on its share
3		of local sales taxes by (insert rate)?"
4		As additional information on the ballot below the
5		question shall appear the following:
6		"This would mean that a consumer would pay an
7		additional (insert amount) in sales tax for every $100 of
8		tangible personal property bought at retail."
9		The county board may also opt to establish a sunset
10		provision at which time the additional sales tax would
11		cease being collected, if not terminated earlier by a vote
12		of the county board. If the county board votes to include a
13		sunset provision, the proposition for public safety
14		purposes shall be in substantially the following form:
15		"To pay for public safety purposes, shall (name of
16		county) be authorized to impose an increase on its share
17		of local sales taxes by (insert rate) for a period not to
18		exceed (insert number of years)?"
19		As additional information on the ballot below the
20		question shall appear the following:
21		"This would mean that a consumer would pay an
22		additional (insert amount) in sales tax for every $100 of
23		tangible personal property bought at retail. If imposed,
24		the additional tax would cease being collected at the end
25		of (insert number of years), if not terminated earlier by
26		a vote of the county board."

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1		For the purposes of the paragraph, "public safety
2		purposes" means crime prevention, detention, fire
3		fighting, police, medical, ambulance, or other emergency
4		services.
5		Votes shall be recorded as "Yes" or "No".
6		Beginning on the January 1 or July 1, whichever is
7		first, that occurs not less than 30 days after May 31, 2015
8		(the effective date of Public Act 99-4), Adams County may
9		impose a public safety retailers' occupation tax and
10		service occupation tax at the rate of 0.25%, as provided
11		in the referendum approved by the voters on April 7, 2015,
12		notwithstanding the omission of the additional information
13		that is otherwise required to be printed on the ballot
14		below the question pursuant to this item (1).
15		(2) The proposition for transportation purposes shall
16		be in substantially the following form:
17		"To pay for improvements to roads and other
18		transportation purposes, shall (name of county) be
19		authorized to impose an increase on its share of local
20		sales taxes by (insert rate)?"
21		As additional information on the ballot below the
22		question shall appear the following:
23		"This would mean that a consumer would pay an
24		additional (insert amount) in sales tax for every $100 of
25		tangible personal property bought at retail."
26		The county board may also opt to establish a sunset

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1		provision at which time the additional sales tax would
2		cease being collected, if not terminated earlier by a vote
3		of the county board. If the county board votes to include a
4		sunset provision, the proposition for transportation
5		purposes shall be in substantially the following form:
6		"To pay for road improvements and other transportation
7		purposes, shall (name of county) be authorized to impose
8		an increase on its share of local sales taxes by (insert
9		rate) for a period not to exceed (insert number of
10		years)?"
11		As additional information on the ballot below the
12		question shall appear the following:
13		"This would mean that a consumer would pay an
14		additional (insert amount) in sales tax for every $100 of
15		tangible personal property bought at retail. If imposed,
16		the additional tax would cease being collected at the end
17		of (insert number of years), if not terminated earlier by
18		a vote of the county board."
19		For the purposes of this paragraph, transportation
20		purposes means construction, maintenance, operation, and
21		improvement of public highways, any other purpose for
22		which a county may expend funds under the Illinois Highway
23		Code, and passenger rail transportation.
24		The votes shall be recorded as "Yes" or "No".
25		(3) The proposition for public facilities purposes
26		shall be in substantially the following form:

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1		"To pay for public facilities purposes, shall (name of
2		county) be authorized to impose an increase on its share
3		of local sales taxes by (insert rate)?"
4		As additional information on the ballot below the
5		question shall appear the following:
6		"This would mean that a consumer would pay an
7		additional (insert amount) in sales tax for every $100 of
8		tangible personal property bought at retail."
9		The county board may also opt to establish a sunset
10		provision at which time the additional sales tax would
11		cease being collected, if not terminated earlier by a vote
12		of the county board. If the county board votes to include a
13		sunset provision, the proposition for public facilities
14		purposes shall be in substantially the following form:
15		"To pay for public facilities purposes, shall (name of
16		county) be authorized to impose an increase on its share
17		of local sales taxes by (insert rate) for a period not to
18		exceed (insert number of years)?"
19		As additional information on the ballot below the
20		question shall appear the following:
21		"This would mean that a consumer would pay an
22		additional (insert amount) in sales tax for every $100 of
23		tangible personal property bought at retail. If imposed,
24		the additional tax would cease being collected at the end
25		of (insert number of years), if not terminated earlier by
26		a vote of the county board."

HB4951 Enrolled - 643 - LRB103 38094 HLH 68226 b
1		For purposes of this Section, "public facilities
2		purposes" means the acquisition, development,
3		construction, reconstruction, rehabilitation,
4		improvement, financing, architectural planning, and
5		installation of capital facilities consisting of
6		buildings, structures, and durable equipment and for the
7		acquisition and improvement of real property and interest
8		in real property required, or expected to be required, in
9		connection with the public facilities, for use by the
10		county for the furnishing of governmental services to its
11		citizens, including, but not limited to, museums and
12		nursing homes.
13		The votes shall be recorded as "Yes" or "No".
14		(4) The proposition for mental health purposes shall
15		be in substantially the following form:
16		"To pay for mental health purposes, shall (name of
17		county) be authorized to impose an increase on its share
18		of local sales taxes by (insert rate)?"
19		As additional information on the ballot below the
20		question shall appear the following:
21		"This would mean that a consumer would pay an
22		additional (insert amount) in sales tax for every $100 of
23		tangible personal property bought at retail."
24		The county board may also opt to establish a sunset
25		provision at which time the additional sales tax would
26		cease being collected, if not terminated earlier by a vote

HB4951 Enrolled - 644 - LRB103 38094 HLH 68226 b
1		of the county board. If the county board votes to include a
2		sunset provision, the proposition for public facilities
3		purposes shall be in substantially the following form:
4		"To pay for mental health purposes, shall (name of
5		county) be authorized to impose an increase on its share
6		of local sales taxes by (insert rate) for a period not to
7		exceed (insert number of years)?"
8		As additional information on the ballot below the
9		question shall appear the following:
10		"This would mean that a consumer would pay an
11		additional (insert amount) in sales tax for every $100 of
12		tangible personal property bought at retail. If imposed,
13		the additional tax would cease being collected at the end
14		of (insert number of years), if not terminated earlier by
15		a vote of the county board."
16		The votes shall be recorded as "Yes" or "No".
17		(5) The proposition for substance abuse purposes shall
18		be in substantially the following form:
19		"To pay for substance abuse purposes, shall (name of
20		county) be authorized to impose an increase on its share
21		of local sales taxes by (insert rate)?"
22		As additional information on the ballot below the
23		question shall appear the following:
24		"This would mean that a consumer would pay an
25		additional (insert amount) in sales tax for every $100 of
26		tangible personal property bought at retail."

HB4951 Enrolled - 645 - LRB103 38094 HLH 68226 b
1		The county board may also opt to establish a sunset
2		provision at which time the additional sales tax would
3		cease being collected, if not terminated earlier by a vote
4		of the county board. If the county board votes to include a
5		sunset provision, the proposition for public facilities
6		purposes shall be in substantially the following form:
7		"To pay for substance abuse purposes, shall (name of
8		county) be authorized to impose an increase on its share
9		of local sales taxes by (insert rate) for a period not to
10		exceed (insert number of years)?"
11		As additional information on the ballot below the
12		question shall appear the following:
13		"This would mean that a consumer would pay an
14		additional (insert amount) in sales tax for every $100 of
15		tangible personal property bought at retail. If imposed,
16		the additional tax would cease being collected at the end
17		of (insert number of years), if not terminated earlier by
18		a vote of the county board."
19		The votes shall be recorded as "Yes" or "No".
20		If a majority of the electors voting on the proposition
21		vote in favor of it, the county may impose the tax. A county
22		may not submit more than one proposition authorized by this
23		Section to the electors at any one time.
24		This additional tax may not be imposed on tangible
25		personal property taxed at the 1% rate under the Retailers'
26		Occupation Tax Act (or at the 0% rate imposed under this

HB4951 Enrolled - 646 - LRB103 38094 HLH 68226 b
1		amendatory Act of the 102nd General Assembly). Beginning
2		December 1, 2019 and through December 31, 2020, this tax is not
3		imposed on sales of aviation fuel unless the tax revenue is
4		expended for airport-related purposes. If the county does not
5		have an airport-related purpose to which it dedicates aviation
6		fuel tax revenue, then aviation fuel is excluded from the tax.
7		The county must comply with the certification requirements for
8		airport-related purposes under Section 2-22 of the Retailers'
9		Occupation Tax Act. For purposes of this Section,
10		"airport-related purposes" has the meaning ascribed in Section
11		6z-20.2 of the State Finance Act. Beginning January 1, 2021,
12		this tax is not imposed on sales of aviation fuel for so long
13		as the revenue use requirements of 49 U.S.C. 47107(b) and 49
14		U.S.C. 47133 are binding on the county. The tax imposed by a
15		county under this Section and all civil penalties that may be
16		assessed as an incident of the tax shall be collected and
17		enforced by the Illinois Department of Revenue and deposited
18		into a special fund created for that purpose. The certificate
19		of registration that is issued by the Department to a retailer
20		under the Retailers' Occupation Tax Act shall permit the
21		retailer to engage in a business that is taxable without
22		registering separately with the Department under an ordinance
23		or resolution under this Section. The Department has full
24		power to administer and enforce this Section, to collect all
25		taxes and penalties due under this Section, to dispose of
26		taxes and penalties so collected in the manner provided in

HB4951 Enrolled - 647 - LRB103 38094 HLH 68226 b
1		this Section, and to determine all rights to credit memoranda
2		arising on account of the erroneous payment of a tax or penalty
3		under this Section. In the administration of and compliance
4		with this Section, the Department and persons who are subject
5		to this Section shall (i) have the same rights, remedies,
6		privileges, immunities, powers, and duties, (ii) be subject to
7		the same conditions, restrictions, limitations, penalties, and
8		definitions of terms, and (iii) employ the same modes of
9		procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
10		1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-70 (in respect to all
11		provisions contained in those Sections other than the State
12		rate of tax), 2a, 2b, 2c, 3 (except provisions relating to
13		transaction returns and quarter monthly payments, and except
14		that the retailer's discount is not allowed for taxes paid on
15		aviation fuel that are deposited into the Local Government
16		Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
17		5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
18		of the Retailers' Occupation Tax Act and Section 3-7 of the
19		Uniform Penalty and Interest Act as if those provisions were
20		set forth in this Section.
21		Persons subject to any tax imposed under the authority
22		granted in this Section may reimburse themselves for their
23		sellers' tax liability by separately stating the tax as an
24		additional charge, which charge may be stated in combination,
25		in a single amount, with State tax which sellers are required
26		to collect under the Use Tax Act, pursuant to such bracketed

HB4951 Enrolled - 648 - LRB103 38094 HLH 68226 b
1		schedules as the Department may prescribe.
2		Whenever the Department determines that a refund should be
3		made under this Section to a claimant instead of issuing a
4		credit memorandum, the Department shall notify the State
5		Comptroller, who shall cause the order to be drawn for the
6		amount specified and to the person named in the notification
7		from the Department. The refund shall be paid by the State
8		Treasurer out of the County Public Safety, Public Facilities,
9		Mental Health, Substance Abuse, or Transportation Retailers'
10		Occupation Tax Fund or the Local Government Aviation Trust
11		Fund, as appropriate.
12		(b) If a tax has been imposed under subsection (a), a
13		service occupation tax shall also be imposed at the same rate
14		upon all persons engaged, in the county, in the business of
15		making sales of service, who, as an incident to making those
16		sales of service, transfer tangible personal property within
17		the county as an incident to a sale of service. This tax may
18		not be imposed on tangible personal property taxed at the 1%
19		rate under the Service Occupation Tax Act (or at the 0% rate
20		imposed under this amendatory Act of the 102nd General
21		Assembly). Beginning December 1, 2019 and through December 31,
22		2020, this tax is not imposed on sales of aviation fuel unless
23		the tax revenue is expended for airport-related purposes. If
24		the county does not have an airport-related purpose to which
25		it dedicates aviation fuel tax revenue, then aviation fuel is
26		excluded from the tax. The county must comply with the

HB4951 Enrolled - 649 - LRB103 38094 HLH 68226 b
1		certification requirements for airport-related purposes under
2		Section 2-22 of the Retailers' Occupation Tax Act. For
3		purposes of this Section, "airport-related purposes" has the
4		meaning ascribed in Section 6z-20.2 of the State Finance Act.
5		Beginning January 1, 2021, this tax is not imposed on sales of
6		aviation fuel for so long as the revenue use requirements of 49
7		U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
8		The tax imposed under this subsection and all civil penalties
9		that may be assessed as an incident thereof shall be collected
10		and enforced by the Department of Revenue. The Department has
11		full power to administer and enforce this subsection; to
12		collect all taxes and penalties due hereunder; to dispose of
13		taxes and penalties so collected in the manner hereinafter
14		provided; and to determine all rights to credit memoranda
15		arising on account of the erroneous payment of tax or penalty
16		hereunder. In the administration of and compliance with this
17		subsection, the Department and persons who are subject to this
18		paragraph shall (i) have the same rights, remedies,
19		privileges, immunities, powers, and duties, (ii) be subject to
20		the same conditions, restrictions, limitations, penalties,
21		exclusions, exemptions, and definitions of terms, and (iii)
22		employ the same modes of procedure as are prescribed in
23		Sections 2 (except that the reference to State in the
24		definition of supplier maintaining a place of business in this
25		State shall mean the county), 2a, 2b, 2c, 3 through 3-50 (in
26		respect to all provisions therein other than the State rate of

HB4951 Enrolled - 650 - LRB103 38094 HLH 68226 b
1		tax), 4 (except that the reference to the State shall be to the
2		county), 5, 7, 8 (except that the jurisdiction to which the tax
3		shall be a debt to the extent indicated in that Section 8 shall
4		be the county), 9 (except as to the disposition of taxes and
5		penalties collected, and except that the retailer's discount
6		is not allowed for taxes paid on aviation fuel that are
7		deposited into the Local Government Aviation Trust Fund), 10,
8		11, 12 (except the reference therein to Section 2b of the
9		Retailers' Occupation Tax Act), 13 (except that any reference
10		to the State shall mean the county), Section 15, 16, 17, 18,
11		19, and 20 of the Service Occupation Tax Act, and Section 3-7
12		of the Uniform Penalty and Interest Act, as fully as if those
13		provisions were set forth herein.
14		Persons subject to any tax imposed under the authority
15		granted in this subsection may reimburse themselves for their
16		serviceman's tax liability by separately stating the tax as an
17		additional charge, which charge may be stated in combination,
18		in a single amount, with State tax that servicemen are
19		authorized to collect under the Service Use Tax Act, in
20		accordance with such bracket schedules as the Department may
21		prescribe.
22		Whenever the Department determines that a refund should be
23		made under this subsection to a claimant instead of issuing a
24		credit memorandum, the Department shall notify the State
25		Comptroller, who shall cause the warrant to be drawn for the
26		amount specified, and to the person named, in the notification

HB4951 Enrolled - 651 - LRB103 38094 HLH 68226 b
1		from the Department. The refund shall be paid by the State
2		Treasurer out of the County Public Safety, Public Facilities,
3		Mental Health, Substance Abuse, or Transportation Retailers'
4		Occupation Fund or the Local Government Aviation Trust Fund,
5		as appropriate.
6		Nothing in this subsection shall be construed to authorize
7		the county to impose a tax upon the privilege of engaging in
8		any business which under the Constitution of the United States
9		may not be made the subject of taxation by the State.
10		(b-5) If, on January 1, 2025, a unit of local government
11		has in effect a tax under this Section, or if, after January 1,
12		2025, a unit of local government imposes a tax under this
13		Section, then that tax applies to leases of tangible personal
14		property in effect, entered into, or renewed on or after that
15		date in the same manner as the tax under this Section and in
16		accordance with the changes made by this amendatory Act of the
17		103rd General Assembly.
18		(c) Except as otherwise provided in this paragraph, the
19		Department shall immediately pay over to the State Treasurer,
20		ex officio, as trustee, all taxes and penalties collected
21		under this Section to be deposited into the County Public
22		Safety, Public Facilities, Mental Health, Substance Abuse, or
23		Transportation Retailers' Occupation Tax Fund, which shall be
24		an unappropriated trust fund held outside of the State
25		treasury. Taxes and penalties collected on aviation fuel sold
26		on or after December 1, 2019 and through December 31, 2020,

HB4951 Enrolled - 652 - LRB103 38094 HLH 68226 b
1		shall be immediately paid over by the Department to the State
2		Treasurer, ex officio, as trustee, for deposit into the Local
3		Government Aviation Trust Fund. The Department shall only pay
4		moneys into the Local Government Aviation Trust Fund under
5		this Act for so long as the revenue use requirements of 49
6		U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
7		As soon as possible after the first day of each month,
8		beginning January 1, 2011, upon certification of the
9		Department of Revenue, the Comptroller shall order
10		transferred, and the Treasurer shall transfer, to the STAR
11		Bonds Revenue Fund the local sales tax increment, as defined
12		in the Innovation Development and Economy Act, collected under
13		this Section during the second preceding calendar month for
14		sales within a STAR bond district.
15		After the monthly transfer to the STAR Bonds Revenue Fund,
16		on or before the 25th day of each calendar month, the
17		Department shall prepare and certify to the Comptroller the
18		disbursement of stated sums of money to the counties from
19		which retailers have paid taxes or penalties to the Department
20		during the second preceding calendar month. The amount to be
21		paid to each county, and deposited by the county into its
22		special fund created for the purposes of this Section, shall
23		be the amount (not including credit memoranda and not
24		including taxes and penalties collected on aviation fuel sold
25		on or after December 1, 2019 and through December 31, 2020)
26		collected under this Section during the second preceding

HB4951 Enrolled - 653 - LRB103 38094 HLH 68226 b
1		calendar month by the Department plus an amount the Department
2		determines is necessary to offset any amounts that were
3		erroneously paid to a different taxing body, and not including
4		(i) an amount equal to the amount of refunds made during the
5		second preceding calendar month by the Department on behalf of
6		the county, (ii) any amount that the Department determines is
7		necessary to offset any amounts that were payable to a
8		different taxing body but were erroneously paid to the county,
9		(iii) any amounts that are transferred to the STAR Bonds
10		Revenue Fund, and (iv) 1.5% of the remainder, which shall be
11		transferred into the Tax Compliance and Administration Fund.
12		The Department, at the time of each monthly disbursement to
13		the counties, shall prepare and certify to the State
14		Comptroller the amount to be transferred into the Tax
15		Compliance and Administration Fund under this subsection.
16		Within 10 days after receipt by the Comptroller of the
17		disbursement certification to the counties and the Tax
18		Compliance and Administration Fund provided for in this
19		Section to be given to the Comptroller by the Department, the
20		Comptroller shall cause the orders to be drawn for the
21		respective amounts in accordance with directions contained in
22		the certification.
23		In addition to the disbursement required by the preceding
24		paragraph, an allocation shall be made in March of each year to
25		each county that received more than $500,000 in disbursements
26		under the preceding paragraph in the preceding calendar year.

HB4951 Enrolled - 654 - LRB103 38094 HLH 68226 b
1		The allocation shall be in an amount equal to the average
2		monthly distribution made to each such county under the
3		preceding paragraph during the preceding calendar year
4		(excluding the 2 months of highest receipts). The distribution
5		made in March of each year subsequent to the year in which an
6		allocation was made pursuant to this paragraph and the
7		preceding paragraph shall be reduced by the amount allocated
8		and disbursed under this paragraph in the preceding calendar
9		year. The Department shall prepare and certify to the
10		Comptroller for disbursement the allocations made in
11		accordance with this paragraph.
12		(d) For the purpose of determining the local governmental
13		unit whose tax is applicable, a retail sale by a producer of
14		coal or another mineral mined in Illinois is a sale at retail
15		at the place where the coal or other mineral mined in Illinois
16		is extracted from the earth. This paragraph does not apply to
17		coal or another mineral when it is delivered or shipped by the
18		seller to the purchaser at a point outside Illinois so that the
19		sale is exempt under the United States Constitution as a sale
20		in interstate or foreign commerce.
21		(e) Nothing in this Section shall be construed to
22		authorize a county to impose a tax upon the privilege of
23		engaging in any business that under the Constitution of the
24		United States may not be made the subject of taxation by this
25		State.
26		(e-5) If a county imposes a tax under this Section, the

HB4951 Enrolled - 655 - LRB103 38094 HLH 68226 b
1		county board may, by ordinance, discontinue or lower the rate
2		of the tax. If the county board lowers the tax rate or
3		discontinues the tax, a referendum must be held in accordance
4		with subsection (a) of this Section in order to increase the
5		rate of the tax or to reimpose the discontinued tax.
6		(f) Beginning April 1, 1998 and through December 31, 2013,
7		the results of any election authorizing a proposition to
8		impose a tax under this Section or effecting a change in the
9		rate of tax, or any ordinance lowering the rate or
10		discontinuing the tax, shall be certified by the county clerk
11		and filed with the Illinois Department of Revenue either (i)
12		on or before the first day of April, whereupon the Department
13		shall proceed to administer and enforce the tax as of the first
14		day of July next following the filing; or (ii) on or before the
15		first day of October, whereupon the Department shall proceed
16		to administer and enforce the tax as of the first day of
17		January next following the filing.
18		Beginning January 1, 2014, the results of any election
19		authorizing a proposition to impose a tax under this Section
20		or effecting an increase in the rate of tax, along with the
21		ordinance adopted to impose the tax or increase the rate of the
22		tax, or any ordinance adopted to lower the rate or discontinue
23		the tax, shall be certified by the county clerk and filed with
24		the Illinois Department of Revenue either (i) on or before the
25		first day of May, whereupon the Department shall proceed to
26		administer and enforce the tax as of the first day of July next

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1		following the adoption and filing; or (ii) on or before the
2		first day of October, whereupon the Department shall proceed
3		to administer and enforce the tax as of the first day of
4		January next following the adoption and filing.
5		(g) When certifying the amount of a monthly disbursement
6		to a county under this Section, the Department shall increase
7		or decrease the amounts by an amount necessary to offset any
8		miscalculation of previous disbursements. The offset amount
9		shall be the amount erroneously disbursed within the previous
10		6 months from the time a miscalculation is discovered.
11		(g-5) Every county authorized to levy a tax under this
12		Section shall, before it levies such tax, establish a 7-member
13		mental health board, which shall have the same powers and
14		duties and be constituted in the same manner as a community
15		mental health board established under the Community Mental
16		Health Act. Proceeds of the tax under this Section that are
17		earmarked for mental health or substance abuse purposes shall
18		be deposited into a special county occupation tax fund for
19		mental health and substance abuse. The 7-member mental health
20		board established under this subsection shall administer the
21		special county occupation tax fund for mental health and
22		substance abuse in the same manner as the community mental
23		health board administers the community mental health fund
24		under the Community Mental Health Act.
25		(h) This Section may be cited as the "Special County
26		Occupation Tax For Public Safety, Public Facilities, Mental

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1		Health, Substance Abuse, or Transportation Law".
2		(i) For purposes of this Section, "public safety"
3		includes, but is not limited to, crime prevention, detention,
4		fire fighting, police, medical, ambulance, or other emergency
5		services. The county may share tax proceeds received under
6		this Section for public safety purposes, including proceeds
7		received before August 4, 2009 (the effective date of Public
8		Act 96-124), with any fire protection district located in the
9		county. For the purposes of this Section, "transportation"
10		includes, but is not limited to, the construction,
11		maintenance, operation, and improvement of public highways,
12		any other purpose for which a county may expend funds under the
13		Illinois Highway Code, and passenger rail transportation. For
14		the purposes of this Section, "public facilities purposes"
15		includes, but is not limited to, the acquisition, development,
16		construction, reconstruction, rehabilitation, improvement,
17		financing, architectural planning, and installation of capital
18		facilities consisting of buildings, structures, and durable
19		equipment and for the acquisition and improvement of real
20		property and interest in real property required, or expected
21		to be required, in connection with the public facilities, for
22		use by the county for the furnishing of governmental services
23		to its citizens, including, but not limited to, museums and
24		nursing homes.
25		(j) The Department may promulgate rules to implement
26		Public Act 95-1002 only to the extent necessary to apply the

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1		existing rules for the Special County Retailers' Occupation
2		Tax for Public Safety to this new purpose for public
3		facilities.
4		(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
5		101-275, eff. 8-9-19; 101-604, eff. 12-13-19; 102-379, eff.
6		1-1-22; 102-700, eff. 4-19-22.)
7		(55 ILCS 5/5-1006.7)
8		Sec. 5-1006.7. School facility and resources occupation
9		taxes.
10		(a) In any county, a tax shall be imposed upon all persons
11		engaged in the business of selling tangible personal property,
12		other than personal property titled or registered with an
13		agency of this State's government, at retail in the county on
14		the gross receipts from the sales made in the course of
15		business to provide revenue to be used exclusively for (i)
16		school facility purposes (except as otherwise provided in this
17		Section), (ii) school resource officers and mental health
18		professionals, or (iii) school facility purposes, school
19		resource officers, and mental health professionals if a
20		proposition for the tax has been submitted to the electors of
21		that county and approved by a majority of those voting on the
22		question as provided in subsection (c). The tax under this
23		Section shall be imposed only in one-quarter percent
24		increments and may not exceed 1%.
25		This additional tax may not be imposed on tangible

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1		personal property taxed at the 1% rate under the Retailers'
2		Occupation Tax Act (or at the 0% rate imposed under Public Act
3		102-700). Beginning December 1, 2019 and through December 31,
4		2020, this tax is not imposed on sales of aviation fuel unless
5		the tax revenue is expended for airport-related purposes. If
6		the county does not have an airport-related purpose to which
7		it dedicates aviation fuel tax revenue, then aviation fuel is
8		excluded from the tax. The county must comply with the
9		certification requirements for airport-related purposes under
10		Section 2-22 of the Retailers' Occupation Tax Act. For
11		purposes of this Section, "airport-related purposes" has the
12		meaning ascribed in Section 6z-20.2 of the State Finance Act.
13		Beginning January 1, 2021, this tax is not imposed on sales of
14		aviation fuel for so long as the revenue use requirements of 49
15		U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
16		The Department of Revenue has full power to administer and
17		enforce this subsection, to collect all taxes and penalties
18		due under this subsection, to dispose of taxes and penalties
19		so collected in the manner provided in this subsection, and to
20		determine all rights to credit memoranda arising on account of
21		the erroneous payment of a tax or penalty under this
22		subsection. The Department shall deposit all taxes and
23		penalties collected under this subsection into a special fund
24		created for that purpose.
25		In the administration of and compliance with this
26		subsection, the Department and persons who are subject to this

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1		subsection (i) have the same rights, remedies, privileges,
2		immunities, powers, and duties, (ii) are subject to the same
3		conditions, restrictions, limitations, penalties, and
4		definitions of terms, and (iii) shall employ the same modes of
5		procedure as are set forth in Sections 1 through 1o, 2 through
6		2-70 (in respect to all provisions contained in those Sections
7		other than the State rate of tax), 2a through 2h, 3 (except as
8		to the disposition of taxes and penalties collected, and
9		except that the retailer's discount is not allowed for taxes
10		paid on aviation fuel that are subject to the revenue use
11		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
12		5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
13		6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
14		Occupation Tax Act and all provisions of the Uniform Penalty
15		and Interest Act as if those provisions were set forth in this
16		subsection.
17		The certificate of registration that is issued by the
18		Department to a retailer under the Retailers' Occupation Tax
19		Act permits the retailer to engage in a business that is
20		taxable without registering separately with the Department
21		under an ordinance or resolution under this subsection.
22		Persons subject to any tax imposed under the authority
23		granted in this subsection may reimburse themselves for their
24		seller's tax liability by separately stating that tax as an
25		additional charge, which may be stated in combination, in a
26		single amount, with State tax that sellers are required to

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1		collect under the Use Tax Act, pursuant to any bracketed
2		schedules set forth by the Department.
3		(b) If a tax has been imposed under subsection (a), then a
4		service occupation tax must also be imposed at the same rate
5		upon all persons engaged, in the county, in the business of
6		making sales of service, who, as an incident to making those
7		sales of service, transfer tangible personal property within
8		the county as an incident to a sale of service.
9		This tax may not be imposed on tangible personal property
10		taxed at the 1% rate under the Service Occupation Tax Act (or
11		at the 0% rate imposed under Public Act 102-700). Beginning
12		December 1, 2019 and through December 31, 2020, this tax is not
13		imposed on sales of aviation fuel unless the tax revenue is
14		expended for airport-related purposes. If the county does not
15		have an airport-related purpose to which it dedicates aviation
16		fuel tax revenue, then aviation fuel is excluded from the tax.
17		The county must comply with the certification requirements for
18		airport-related purposes under Section 2-22 of the Retailers'
19		Occupation Tax Act. For purposes of this Section,
20		"airport-related purposes" has the meaning ascribed in Section
21		6z-20.2 of the State Finance Act. Beginning January 1, 2021,
22		this tax is not imposed on sales of aviation fuel 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 county.
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 and deposited into a
2		special fund created for that purpose. The Department has full
3		power to administer and enforce this subsection, to collect
4		all taxes and penalties due under this subsection, to dispose
5		of taxes and penalties so collected in the manner provided in
6		this subsection, and to determine all rights to credit
7		memoranda arising on account of the erroneous payment of a tax
8		or penalty under this subsection.
9		In the administration of and compliance with this
10		subsection, the Department and persons who are subject to this
11		subsection shall (i) have the same rights, remedies,
12		privileges, immunities, powers and duties, (ii) be subject to
13		the same conditions, restrictions, limitations, penalties and
14		definition of terms, and (iii) employ the same modes of
15		procedure as are set forth in Sections 2 (except that that
16		reference to State in the definition of supplier maintaining a
17		place of business in this State means the county), 2a through
18		2d, 3 through 3-50 (in respect to all provisions contained in
19		those Sections other than the State rate of tax), 4 (except
20		that the reference to the State shall be to the county), 5, 7,
21		8 (except that the jurisdiction to which the tax is a debt to
22		the extent indicated in that Section 8 is the county), 9
23		(except as to the disposition of taxes and penalties
24		collected, and except that the retailer's discount is not
25		allowed for taxes paid on aviation fuel that are subject to the
26		revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.

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1		47133), 10, 11, 12 (except the reference therein to Section 2b
2		of the Retailers' Occupation Tax Act), 13 (except that any
3		reference to the State means the county), 15, 16, 17, 18, 19,
4		and 20 of the Service Occupation Tax Act and all provisions of
5		the Uniform Penalty and Interest Act, as fully as if those
6		provisions were set forth herein.
7		Persons subject to any tax imposed under the authority
8		granted in this subsection may reimburse themselves for their
9		serviceman's tax liability by separately stating the tax as an
10		additional charge, which may be stated in combination, in a
11		single amount, with State tax that servicemen are authorized
12		to collect under the Service Use Tax Act, pursuant to any
13		bracketed schedules set forth by the Department.
14		(b-5) If, on January 1, 2025, a unit of local government
15		has in effect a tax under this Section, or if, after January 1,
16		2025, a unit of local government imposes a tax under this
17		Section, then that tax applies to leases of tangible personal
18		property in effect, entered into, or renewed on or after that
19		date in the same manner as the tax under this Section and in
20		accordance with the changes made by this amendatory Act of the
21		103rd General Assembly.
22		(c) The tax under this Section may not be imposed until the
23		question of imposing the tax has been submitted to the
24		electors of the county at a regular election and approved by a
25		majority of the electors voting on the question. For all
26		regular elections held prior to August 23, 2011 (the effective

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1		date of Public Act 97-542), upon a resolution by the county
2		board or a resolution by school district boards that represent
3		at least 51% of the student enrollment within the county, the
4		county board must certify the question to the proper election
5		authority in accordance with the Election Code.
6		For all regular elections held prior to August 23, 2011
7		(the effective date of Public Act 97-542), the election
8		authority must submit the question in substantially the
9		following form:
10		Shall (name of county) be authorized to impose a
11		retailers' occupation tax and a service occupation tax
12		(commonly referred to as a "sales tax") at a rate of
13		(insert rate) to be used exclusively for school facility
14		purposes?
15		The election authority must record the votes as "Yes" or
16		"No".
17		If a majority of the electors voting on the question vote
18		in the affirmative, then the county may, thereafter, impose
19		the tax.
20		For all regular elections held on or after August 23, 2011
21		(the effective date of Public Act 97-542), the regional
22		superintendent of schools for the county must, upon receipt of
23		a resolution or resolutions of school district boards that
24		represent more than 50% of the student enrollment within the
25		county, certify the question to the proper election authority
26		for submission to the electors of the county at the next

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1		regular election at which the question lawfully may be
2		submitted to the electors, all in accordance with the Election
3		Code.
4		For all regular elections held on or after August 23, 2011
5		(the effective date of Public Act 97-542) and before August
6		23, 2019 (the effective date of Public Act 101-455), the
7		election authority must submit the question in substantially
8		the following form:
9		Shall a retailers' occupation tax and a service
10		occupation tax (commonly referred to as a "sales tax") be
11		imposed in (name of county) at a rate of (insert rate) to
12		be used exclusively for school facility purposes?
13		The election authority must record the votes as "Yes" or
14		"No".
15		If a majority of the electors voting on the question vote
16		in the affirmative, then the tax shall be imposed at the rate
17		set forth in the question.
18		For all regular elections held on or after August 23, 2019
19		(the effective date of Public Act 101-455), the election
20		authority must submit the question as follows:
21		(1) If the referendum is to expand the use of revenues
22		from a currently imposed tax exclusively for school
23		facility purposes to include school resource officers and
24		mental health professionals, the question shall be in
25		substantially the following form:
26		In addition to school facility purposes, shall

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1		(name of county) school districts be authorized to use
2		revenues from the tax commonly referred to as the
3		school facility sales tax that is currently imposed in
4		(name of county) at a rate of (insert rate) for school
5		resource officers and mental health professionals?
6		(2) If the referendum is to increase the rate of a tax
7		currently imposed exclusively for school facility purposes
8		at less than 1% and dedicate the additional revenues for
9		school resource officers and mental health professionals,
10		the question shall be in substantially the following form:
11		Shall the tax commonly referred to as the school
12		facility sales tax that is currently imposed in (name
13		of county) at the rate of (insert rate) be increased to
14		a rate of (insert rate) with the additional revenues
15		used exclusively for school resource officers and
16		mental health professionals?
17		(3) If the referendum is to impose a tax in a county
18		that has not previously imposed a tax under this Section
19		exclusively for school facility purposes, the question
20		shall be in substantially the following form:
21		Shall a retailers' occupation tax and a service
22		occupation tax (commonly referred to as a sales tax)
23		be imposed in (name of county) at a rate of (insert
24		rate) to be used exclusively for school facility
25		purposes?
26		(4) If the referendum is to impose a tax in a county

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1		that has not previously imposed a tax under this Section
2		exclusively for school resource officers and mental health
3		professionals, the question shall be in substantially the
4		following form:
5		Shall a retailers' occupation tax and a service
6		occupation tax (commonly referred to as a sales tax)
7		be imposed in (name of county) at a rate of (insert
8		rate) to be used exclusively for school resource
9		officers and mental health professionals?
10		(5) If the referendum is to impose a tax in a county
11		that has not previously imposed a tax under this Section
12		exclusively for school facility purposes, school resource
13		officers, and mental health professionals, the question
14		shall be in substantially the following form:
15		Shall a retailers' occupation tax and a service
16		occupation tax (commonly referred to as a sales tax)
17		be imposed in (name of county) at a rate of (insert
18		rate) to be used exclusively for school facility
19		purposes, school resource officers, and mental health
20		professionals?
21		The election authority must record the votes as "Yes" or
22		"No".
23		If a majority of the electors voting on the question vote
24		in the affirmative, then the tax shall be imposed at the rate
25		set forth in the question.
26		For the purposes of this subsection (c), "enrollment"

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1		means the head count of the students residing in the county on
2		the last school day of September of each year, which must be
3		reported on the Illinois State Board of Education Public
4		School Fall Enrollment/Housing Report.
5		(d) Except as otherwise provided, the Department shall
6		immediately pay over to the State Treasurer, ex officio, as
7		trustee, all taxes and penalties collected under this Section
8		to be deposited into the School Facility Occupation Tax Fund,
9		which shall be an unappropriated trust fund held outside the
10		State treasury. Taxes and penalties collected on aviation fuel
11		sold on or after December 1, 2019 and through December 31,
12		2020, shall be immediately paid over by the Department to the
13		State Treasurer, ex officio, as trustee, for deposit into the
14		Local Government Aviation Trust Fund. The Department shall
15		only pay moneys into the Local Government Aviation Trust Fund
16		under this Section for so long as the revenue use requirements
17		of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
18		county.
19		On or before the 25th day of each calendar month, the
20		Department shall prepare and certify to the Comptroller the
21		disbursement of stated sums of money to the regional
22		superintendents of schools in counties from which retailers or
23		servicemen have paid taxes or penalties to the Department
24		during the second preceding calendar month. The amount to be
25		paid to each regional superintendent of schools and disbursed
26		to him or her in accordance with Section 3-14.31 of the School

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1		Code, is equal to the amount (not including credit memoranda
2		and not including taxes and penalties collected on aviation
3		fuel sold on or after December 1, 2019 and through December 31,
4		2020) collected from the county under this Section during the
5		second preceding calendar month by the Department, (i) less 2%
6		of that amount (except the amount collected on aviation fuel
7		sold on or after December 1, 2019 and through December 31,
8		2020), of which 50% shall be deposited into the Tax Compliance
9		and Administration Fund and shall be used by the Department,
10		subject to appropriation, to cover the costs of the Department
11		in administering and enforcing the provisions of this Section,
12		on behalf of the county, and 50% shall be distributed to the
13		regional superintendent of schools to cover the costs in
14		administering and enforcing the provisions of this Section;
15		(ii) plus an amount that the Department determines is
16		necessary to offset any amounts that were erroneously paid to
17		a different taxing body; (iii) less an amount equal to the
18		amount of refunds made during the second preceding calendar
19		month by the Department on behalf of the county; and (iv) less
20		any amount that the Department determines is necessary to
21		offset any amounts that were payable to a different taxing
22		body but were erroneously paid to the county. When certifying
23		the amount of a monthly disbursement to a regional
24		superintendent of schools under this Section, the Department
25		shall increase or decrease the amounts by an amount necessary
26		to offset any miscalculation of previous disbursements within

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1		the previous 6 months from the time a miscalculation is
2		discovered.
3		Within 10 days after receipt by the Comptroller from the
4		Department of the disbursement certification to the regional
5		superintendents of the schools provided for in this Section,
6		the Comptroller shall cause the orders to be drawn for the
7		respective amounts in accordance with directions contained in
8		the certification.
9		If the Department determines that a refund should be made
10		under this Section to a claimant instead of issuing a credit
11		memorandum, then the Department shall notify the Comptroller,
12		who shall cause the order to be drawn for the amount specified
13		and to the person named in the notification from the
14		Department. The refund shall be paid by the Treasurer out of
15		the School Facility Occupation Tax Fund or the Local
16		Government Aviation Trust Fund, as appropriate.
17		(e) For the purposes of determining the local governmental
18		unit whose tax is applicable, a retail sale by a producer of
19		coal or another mineral mined in Illinois is a sale at retail
20		at the place where the coal or other mineral mined in Illinois
21		is extracted from the earth. This subsection does not apply to
22		coal or another mineral when it is delivered or shipped by the
23		seller to the purchaser at a point outside Illinois so that the
24		sale is exempt under the United States Constitution as a sale
25		in interstate or foreign commerce.
26		(f) Nothing in this Section may be construed to authorize

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1		a tax to be imposed upon the privilege of engaging in any
2		business that under the Constitution of the United States may
3		not be made the subject of taxation by this State.
4		(g) If a county board imposes a tax under this Section
5		pursuant to a referendum held before August 23, 2011 (the
6		effective date of Public Act 97-542) at a rate below the rate
7		set forth in the question approved by a majority of electors of
8		that county voting on the question as provided in subsection
9		(c), then the county board may, by ordinance, increase the
10		rate of the tax up to the rate set forth in the question
11		approved by a majority of electors of that county voting on the
12		question as provided in subsection (c). If a county board
13		imposes a tax under this Section pursuant to a referendum held
14		before August 23, 2011 (the effective date of Public Act
15		97-542), then the board may, by ordinance, discontinue or
16		reduce the rate of the tax. If a tax is imposed under this
17		Section pursuant to a referendum held on or after August 23,
18		2011 (the effective date of Public Act 97-542) and before
19		August 23, 2019 (the effective date of Public Act 101-455),
20		then the county board may reduce or discontinue the tax, but
21		only in accordance with subsection (h-5) of this Section. If a
22		tax is imposed under this Section pursuant to a referendum
23		held on or after August 23, 2019 (the effective date of Public
24		Act 101-455), then the county board may reduce or discontinue
25		the tax, but only in accordance with subsection (h-10). If,
26		however, a school board issues bonds that are secured by the

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1		proceeds of the tax under this Section, then the county board
2		may not reduce the tax rate or discontinue the tax if that rate
3		reduction or discontinuance would adversely affect the school
4		board's ability to pay the principal and interest on those
5		bonds as they become due or necessitate the extension of
6		additional property taxes to pay the principal and interest on
7		those bonds. If the county board reduces the tax rate or
8		discontinues the tax, then a referendum must be held in
9		accordance with subsection (c) of this Section in order to
10		increase the rate of the tax or to reimpose the discontinued
11		tax.
12		Until January 1, 2014, the results of any election that
13		imposes, reduces, or discontinues a tax under this Section
14		must be certified by the election authority, and any ordinance
15		that increases or lowers the rate or discontinues the tax must
16		be certified by the county clerk and, in each case, filed with
17		the Illinois Department of Revenue either (i) on or before the
18		first day of April, whereupon the Department shall proceed to
19		administer and enforce the tax or change in the rate as of the
20		first day of July next following the filing; or (ii) on or
21		before the first day of October, whereupon the Department
22		shall proceed to administer and enforce the tax or change in
23		the rate as of the first day of January next following the
24		filing.
25		Beginning January 1, 2014, the results of any election
26		that imposes, reduces, or discontinues a tax under this

HB4951 Enrolled - 673 - LRB103 38094 HLH 68226 b
1		Section must be certified by the election authority, and any
2		ordinance that increases or lowers the rate or discontinues
3		the tax must be certified by the county clerk and, in each
4		case, filed with the Illinois Department of Revenue either (i)
5		on or before the first day of May, whereupon the Department
6		shall proceed to administer and enforce the tax or change in
7		the rate as of the first day of July next following the filing;
8		or (ii) on or before the first day of October, whereupon the
9		Department shall proceed to administer and enforce the tax or
10		change in the rate as of the first day of January next
11		following the filing.
12		(h) For purposes of this Section, "school facility
13		purposes" means (i) the acquisition, development,
14		construction, reconstruction, rehabilitation, improvement,
15		financing, architectural planning, and installation of capital
16		facilities consisting of buildings, structures, and durable
17		equipment and for the acquisition and improvement of real
18		property and interest in real property required, or expected
19		to be required, in connection with the capital facilities and
20		(ii) the payment of bonds or other obligations heretofore or
21		hereafter issued, including bonds or other obligations
22		heretofore or hereafter issued to refund or to continue to
23		refund bonds or other obligations issued, for school facility
24		purposes, provided that the taxes levied to pay those bonds
25		are abated by the amount of the taxes imposed under this
26		Section that are used to pay those bonds. "School facility

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1		purposes" also includes fire prevention, safety, energy
2		conservation, accessibility, school security, and specified
3		repair purposes set forth under Section 17-2.11 of the School
4		Code.
5		(h-5) A county board in a county where a tax has been
6		imposed under this Section pursuant to a referendum held on or
7		after August 23, 2011 (the effective date of Public Act
8		97-542) and before August 23, 2019 (the effective date of
9		Public Act 101-455) may, by ordinance or resolution, submit to
10		the voters of the county the question of reducing or
11		discontinuing the tax. In the ordinance or resolution, the
12		county board shall certify the question to the proper election
13		authority in accordance with the Election Code. The election
14		authority must submit the question in substantially the
15		following form:
16		Shall the school facility retailers' occupation tax
17		and service occupation tax (commonly referred to as the
18		"school facility sales tax") currently imposed in (name of
19		county) at a rate of (insert rate) be (reduced to (insert
20		rate))(discontinued)?
21		If a majority of the electors voting on the question vote in
22		the affirmative, then, subject to the provisions of subsection
23		(g) of this Section, the tax shall be reduced or discontinued
24		as set forth in the question.
25		(h-10) A county board in a county where a tax has been
26		imposed under this Section pursuant to a referendum held on or

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1		after August 23, 2019 (the effective date of Public Act
2		101-455) may, by ordinance or resolution, submit to the voters
3		of the county the question of reducing or discontinuing the
4		tax. In the ordinance or resolution, the county board shall
5		certify the question to the proper election authority in
6		accordance with the Election Code. The election authority must
7		submit the question in substantially the following form:
8		Shall the school facility and resources retailers'
9		occupation tax and service occupation tax (commonly
10		referred to as the school facility and resources sales
11		tax) currently imposed in (name of county) at a rate of
12		(insert rate) be (reduced to (insert rate))
13		(discontinued)?
14		The election authority must record the votes as "Yes" or
15		"No".
16		If a majority of the electors voting on the question vote
17		in the affirmative, then, subject to the provisions of
18		subsection (g) of this Section, the tax shall be reduced or
19		discontinued as set forth in the question.
20		(i) This Section does not apply to Cook County.
21		(j) This Section may be cited as the County School
22		Facility and Resources Occupation Tax Law.
23		(Source: P.A. 102-700, eff. 4-19-22; 102-1062, eff. 7-1-22;
24		103-154, eff. 6-30-23.)
25		(55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)

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1		Sec. 5-1007. Home Rule County Service Occupation Tax Law.
2		The corporate authorities of a home rule county may impose a
3		tax upon all persons engaged, in such county, in the business
4		of making sales of service at the same rate of tax imposed
5		pursuant to Section 5-1006 of the selling price of all
6		tangible personal property transferred by such servicemen
7		either in the form of tangible personal property or in the form
8		of real estate as an incident to a sale of service. If imposed,
9		such tax shall only be imposed in 1/4% increments. On and after
10		September 1, 1991, this additional tax may not be imposed on
11		tangible personal property taxed at the 1% rate under the
12		Service Occupation Tax Act (or at the 0% rate imposed under
13		this amendatory Act of the 102nd General Assembly). Beginning
14		December 1, 2019, this tax is not imposed on sales of aviation
15		fuel unless the tax revenue is expended for airport-related
16		purposes. If the county does not have an airport-related
17		purpose to which it dedicates aviation fuel tax revenue, then
18		aviation fuel is excluded from the tax. The county must comply
19		with the certification requirements for airport-related
20		purposes under Section 2-22 of the Retailers' Occupation Tax
21		Act. For purposes of this Section, "airport-related purposes"
22		has the meaning ascribed in Section 6z-20.2 of the State
23		Finance Act. This exclusion for aviation fuel only applies for
24		so long as the revenue use requirements of 49 U.S.C. 47107(b)
25		and 49 U.S.C. 47133 are binding on the county. The changes made
26		to this Section by this amendatory Act of the 101st General

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1		Assembly are a denial and limitation of home rule powers and
2		functions under subsection (g) of Section 6 of Article VII of
3		the Illinois Constitution. The tax imposed by a home rule
4		county pursuant to this Section and all civil penalties that
5		may be assessed as an incident thereof shall be collected and
6		enforced by the State Department of Revenue. The certificate
7		of registration which is issued by the Department to a
8		retailer under the Retailers' Occupation Tax Act or under the
9		Service Occupation Tax Act shall permit such registrant to
10		engage in a business which is taxable under any ordinance or
11		resolution enacted pursuant to this Section without
12		registering separately with the Department under such
13		ordinance or resolution or under this Section. The Department
14		shall have full power to administer and enforce this Section;
15		to collect all taxes and penalties due hereunder; to dispose
16		of taxes and penalties so collected in the manner hereinafter
17		provided; and to determine all rights to credit memoranda
18		arising on account of the erroneous payment of tax or penalty
19		hereunder. In the administration of, and compliance with, this
20		Section the Department and persons who are subject to this
21		Section shall have the same rights, remedies, privileges,
22		immunities, powers and duties, and be subject to the same
23		conditions, restrictions, limitations, penalties and
24		definitions of terms, and employ the same modes of procedure,
25		as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
26		respect to all provisions therein other than the State rate of

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1		tax), 4 (except that the reference to the State shall be to the
2		taxing county), 5, 7, 8 (except that the jurisdiction to which
3		the tax shall be a debt to the extent indicated in that Section
4		8 shall be the taxing county), 9 (except as to the disposition
5		of taxes and penalties collected, and except that the returned
6		merchandise credit for this county tax may not be taken
7		against any State tax, and except that the retailer's discount
8		is not allowed for taxes paid on aviation fuel that are subject
9		to the revenue use requirements of 49 U.S.C. 47107(b) and 49
10		U.S.C. 47133), 10, 11, 12 (except the reference therein to
11		Section 2b of the Retailers' Occupation Tax Act), 13 (except
12		that any reference to the State shall mean the taxing county),
13		the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
14		Service Occupation Tax Act and Section 3-7 of the Uniform
15		Penalty and Interest Act, as fully as if those provisions were
16		set forth herein.
17		No tax may be imposed by a home rule county pursuant to
18		this Section unless such county also imposes a tax at the same
19		rate pursuant to Section 5-1006.
20		If, on January 1, 2025, a unit of local government has in
21		effect a tax under this Section, or if, after January 1, 2025,
22		a unit of local government imposes a tax under this Section,
23		then that tax applies to leases of tangible personal property
24		in effect, entered into, or renewed on or after that date in
25		the same manner as the tax under this Section and in accordance
26		with the changes made by this amendatory Act of the 103rd

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1		General Assembly.
2		Persons subject to any tax imposed pursuant to the
3		authority granted in this Section may reimburse themselves for
4		their serviceman's tax liability hereunder by separately
5		stating such tax as an additional charge, which charge may be
6		stated in combination, in a single amount, with State tax
7		which servicemen are authorized to collect under the Service
8		Use Tax Act, pursuant to such bracket schedules as the
9		Department may prescribe.
10		Whenever the Department determines that a refund should be
11		made under this Section to a claimant instead of issuing
12		credit memorandum, the Department shall notify the State
13		Comptroller, who shall cause the order to be drawn for the
14		amount specified, and to the person named, in such
15		notification from the Department. Such refund shall be paid by
16		the State Treasurer out of the home rule county retailers'
17		occupation tax fund or the Local Government Aviation Trust
18		Fund, as appropriate.
19		Except as otherwise provided in this paragraph, the
20		Department shall forthwith pay over to the State Treasurer, ex
21		officio, as trustee, all taxes and penalties collected
22		hereunder for deposit into the Home Rule County Retailers'
23		Occupation Tax Fund. Taxes and penalties collected on aviation
24		fuel sold on or after December 1, 2019, shall be immediately
25		paid over by the Department to the State Treasurer, ex
26		officio, as trustee, for deposit into the Local Government

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1		Aviation Trust Fund. The Department shall only pay moneys into
2		the Local Government Aviation Trust Fund under this Section
3		for so long as the revenue use requirements of 49 U.S.C.
4		47107(b) and 49 U.S.C. 47133 are binding on the county.
5		As soon as possible after the first day of each month,
6		beginning January 1, 2011, upon certification of the
7		Department of Revenue, the Comptroller shall order
8		transferred, and the Treasurer shall transfer, to the STAR
9		Bonds Revenue Fund the local sales tax increment, as defined
10		in the Innovation Development and Economy Act, collected under
11		this Section during the second preceding calendar month for
12		sales within a STAR bond district.
13		After the monthly transfer to the STAR Bonds Revenue Fund,
14		on or before the 25th day of each calendar month, the
15		Department shall prepare and certify to the Comptroller the
16		disbursement of stated sums of money to named counties, the
17		counties to be those from which suppliers and servicemen have
18		paid taxes or penalties hereunder to the Department during the
19		second preceding calendar month. The amount to be paid to each
20		county shall be the amount (not including credit memoranda and
21		not including taxes and penalties collected on aviation fuel
22		sold on or after December 1, 2019) collected hereunder during
23		the second preceding calendar month by the Department, and not
24		including an amount equal to the amount of refunds made during
25		the second preceding calendar month by the Department on
26		behalf of such county, and not including any amounts that are

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1		transferred to the STAR Bonds Revenue Fund, less 1.5% of the
2		remainder, which the Department shall transfer into the Tax
3		Compliance and Administration Fund. The Department, at the
4		time of each monthly disbursement to the counties, shall
5		prepare and certify to the State Comptroller the amount to be
6		transferred into the Tax Compliance and Administration Fund
7		under this Section. Within 10 days after receipt, by the
8		Comptroller, of the disbursement certification to the counties
9		and the Tax Compliance and Administration Fund provided for in
10		this Section to be given to the Comptroller by the Department,
11		the Comptroller shall cause the orders to be drawn for the
12		respective amounts in accordance with the directions contained
13		in such certification.
14		In addition to the disbursement required by the preceding
15		paragraph, an allocation shall be made in each year to each
16		county which received more than $500,000 in disbursements
17		under the preceding paragraph in the preceding calendar year.
18		The allocation shall be in an amount equal to the average
19		monthly distribution made to each such county under the
20		preceding paragraph during the preceding calendar year
21		(excluding the 2 months of highest receipts). The distribution
22		made in March of each year subsequent to the year in which an
23		allocation was made pursuant to this paragraph and the
24		preceding paragraph shall be reduced by the amount allocated
25		and disbursed under this paragraph in the preceding calendar
26		year. The Department shall prepare and certify to the

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1		Comptroller for disbursement the allocations made in
2		accordance with this paragraph.
3		Nothing in this Section shall be construed to authorize a
4		county to impose a tax upon the privilege of engaging in any
5		business which under the Constitution of the United States may
6		not be made the subject of taxation by this State.
7		An ordinance or resolution imposing or discontinuing a tax
8		hereunder or effecting a change in the rate thereof shall be
9		adopted and a certified copy thereof filed with the Department
10		on or before the first day of June, whereupon the Department
11		shall proceed to administer and enforce this Section as of the
12		first day of September next following such adoption and
13		filing. Beginning January 1, 1992, an ordinance or resolution
14		imposing or discontinuing the tax hereunder or effecting a
15		change in the rate thereof shall be adopted and a certified
16		copy thereof filed with the Department on or before the first
17		day of July, whereupon the Department shall proceed to
18		administer and enforce this Section as of the first day of
19		October next following such adoption and filing. Beginning
20		January 1, 1993, an ordinance or resolution imposing or
21		discontinuing the tax hereunder or effecting a change in the
22		rate thereof shall be adopted and a certified copy thereof
23		filed with the Department on or before the first day of
24		October, whereupon the Department shall proceed to administer
25		and enforce this Section as of the first day of January next
26		following such adoption and filing. Beginning April 1, 1998,

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1		an ordinance or resolution imposing or discontinuing the tax
2		hereunder or effecting a change in the rate thereof shall
3		either (i) be adopted and a certified copy thereof filed with
4		the Department on or before the first day of April, whereupon
5		the Department shall proceed to administer and enforce this
6		Section as of the first day of July next following the adoption
7		and filing; or (ii) be adopted and a certified copy thereof
8		filed with the Department on or before the first day of
9		October, whereupon the Department shall proceed to administer
10		and enforce this Section as of the first day of January next
11		following the adoption and filing.
12		This Section shall be known and may be cited as the Home
13		Rule County Service Occupation Tax Law.
14		(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
15		101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
16		(55 ILCS 5/5-1008.5)
17		Sec. 5-1008.5. Use and occupation taxes.
18		(a) The Rock Island County Board may adopt a resolution
19		that authorizes a referendum on the question of whether the
20		county shall be authorized to impose a retailers' occupation
21		tax, a service occupation tax, and a use tax at a rate of 1/4
22		of 1% on behalf of the economic development activities of Rock
23		Island County and communities located within the county. The
24		county board shall certify the question to the proper election
25		authorities who shall submit the question to the voters of the

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1		county at the next regularly scheduled election in accordance
2		with the general election law. The question shall be in
3		substantially the following form:
4		Shall Rock Island County be authorized to impose a
5		retailers' occupation tax, a service occupation tax, and a
6		use tax at the rate of 1/4 of 1% for the sole purpose of
7		economic development activities, including creation and
8		retention of job opportunities, support of affordable
9		housing opportunities, and enhancement of quality of life
10		improvements?
11		Votes shall be recorded as "yes" or "no". If a majority of
12		all votes cast on the proposition are in favor of the
13		proposition, the county is authorized to impose the tax.
14		(b) The county shall impose the retailers' occupation tax
15		upon all persons engaged in the business of selling tangible
16		personal property at retail in the county, at the rate
17		approved by referendum, on the gross receipts from the sales
18		made in the course of those businesses within the county. This
19		additional tax may not be imposed on tangible personal
20		property taxed at the 1% rate under the Retailers' Occupation
21		Tax Act. Beginning December 1, 2019, this tax is not imposed on
22		sales of aviation fuel unless the tax revenue is expended for
23		airport-related purposes. If the county does not have an
24		airport-related purpose to which it dedicates aviation fuel
25		tax revenue, then aviation fuel is excluded from the tax. The
26		county must comply with the certification requirements for

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1		airport-related purposes under Section 2-22 of the Retailers'
2		Occupation Tax Act. For purposes of this Section,
3		"airport-related purposes" has the meaning ascribed in Section
4		6z-20.2 of the State Finance Act. This exclusion for aviation
5		fuel only applies for so long as the revenue use requirements
6		of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
7		county. The tax imposed under this Section and all civil
8		penalties that may be assessed as an incident of the tax shall
9		be collected and enforced by the Department of Revenue. The
10		Department has full power to administer and enforce this
11		Section; to collect all taxes and penalties so collected in
12		the manner provided in this Section; and to determine all
13		rights to credit memoranda arising on account of the erroneous
14		payment of tax or penalty under this Section. In the
15		administration of, and compliance with, this Section, the
16		Department and persons who are subject to this Section shall
17		(i) have the same rights, remedies, privileges, immunities,
18		powers and duties, (ii) be subject to the same conditions,
19		restrictions, limitations, penalties, exclusions, exemptions,
20		and definitions of terms, and (iii) employ the same modes of
21		procedure as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
22		1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
23		all provisions other than the State rate of tax), 2-15 through
24		2-70, 2a, 2b, 2c, 3 (except as to the disposition of taxes and
25		penalties collected and provisions related to quarter monthly
26		payments, and except that the retailer's discount is not

HB4951 Enrolled - 686 - LRB103 38094 HLH 68226 b
1		allowed for taxes paid on aviation fuel that are subject to the
2		revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
3		47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6,
4		6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
5		Occupation Tax Act and Section 3-7 of the Uniform Penalty and
6		Interest Act, as fully as if those provisions were set forth in
7		this subsection.
8		Persons subject to any tax imposed under this subsection
9		may reimburse themselves for their seller's tax liability by
10		separately stating the tax as an additional charge, which
11		charge may be stated in combination, in a single amount, with
12		State taxes that sellers are required to collect, in
13		accordance with bracket schedules prescribed by the
14		Department.
15		Whenever the Department determines that a refund should be
16		made under this subsection to a claimant instead of issuing a
17		credit memorandum, the Department shall notify the State
18		Comptroller, who shall cause the warrant 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 tax fund referenced under paragraph (g)
22		of this Section or the Local Government Aviation Trust Fund,
23		as appropriate.
24		If a tax is imposed under this subsection (b), a tax shall
25		also be imposed at the same rate under subsections (c) and (d)
26		of this Section.

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1		For the purpose of determining whether a tax authorized
2		under this Section is applicable, a retail sale, by a producer
3		of coal or another mineral mined in Illinois, is a sale at
4		retail at the place where the coal or other mineral mined in
5		Illinois is extracted from the earth. This paragraph does not
6		apply to coal or another mineral when it is delivered or
7		shipped by the seller to the purchaser at a point outside
8		Illinois so that the sale is exempt under the federal
9		Constitution as a sale in interstate or foreign commerce.
10		Nothing in this Section shall be construed to authorize
11		the county 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 this State.
14		(c) If a tax has been imposed under subsection (b), a
15		service occupation tax shall also be imposed at the same rate
16		upon all persons engaged, in the county, in the business of
17		making sales of service, who, as an incident to making those
18		sales of service, transfer tangible personal property within
19		the county as an incident to a sale of service. This additional
20		tax may not be imposed on tangible personal property taxed at
21		the 1% rate under the Service Occupation Tax Act. Beginning
22		December 1, 2019, this tax is not imposed on sales of aviation
23		fuel unless the tax revenue is expended for airport-related
24		purposes. If the county does not have an airport-related
25		purpose to which it dedicates aviation fuel tax revenue, then
26		aviation fuel is excluded from the tax. The county must comply

HB4951 Enrolled - 688 - LRB103 38094 HLH 68226 b
1		with the certification requirements for airport-related
2		purposes under Section 2-22 of the Retailers' Occupation Tax
3		Act. For purposes of this Section, "airport-related purposes"
4		has the meaning ascribed in Section 6z-20.2 of the State
5		Finance Act. This exclusion for aviation fuel only applies for
6		so long as the revenue use requirements of 49 U.S.C. 47107(b)
7		and 49 U.S.C. 47133 are binding on the county. The tax imposed
8		under this subsection and all civil penalties that may be
9		assessed as an incident of the tax shall be collected and
10		enforced by the Department of Revenue. The Department has full
11		power to administer and enforce this paragraph; to collect all
12		taxes and penalties due under this Section; to dispose of
13		taxes and penalties so collected in the manner provided in
14		this Section; and to determine all rights to credit memoranda
15		arising on account of the erroneous payment of tax or penalty
16		under this Section. In the administration of, and compliance
17		with this paragraph, the Department and persons who are
18		subject to this paragraph shall (i) have the same rights,
19		remedies, privileges, immunities, powers, and duties, (ii) be
20		subject to the same conditions, restrictions, limitations,
21		penalties, exclusions, exemptions, and definitions of terms,
22		and (iii) employ the same modes of procedure as are prescribed
23		in Sections 2 (except that the reference to State in the
24		definition of supplier maintaining a place of business in this
25		State shall mean the county), 2a, 2b, 3 through 3-55 (in
26		respect to all provisions other than the State rate of tax), 4

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1		(except that the reference to the State shall be to the
2		county), 5, 7, 8 (except that the jurisdiction to which the tax
3		shall be a debt to the extent indicated in that Section 8 shall
4		be the county), 9 (except as to the disposition of taxes and
5		penalties collected, and except that the returned merchandise
6		credit for this tax may not be taken against any State tax, and
7		except that the retailer's discount is not allowed for taxes
8		paid on aviation fuel that are subject to the revenue use
9		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 11,
10		12 (except the reference to Section 2b of the Retailers'
11		Occupation Tax Act), 13 (except that any reference to the
12		State shall mean the county), 15, 16, 17, 18, 19 and 20 of the
13		Service Occupation Tax Act and Section 3-7 of the Uniform
14		Penalty and Interest Act, as fully as if those provisions were
15		set forth in this subsection.
16		Persons subject to any tax imposed under the authority
17		granted in this subsection may reimburse themselves for their
18		serviceman's tax liability by separately stating the tax as an
19		additional charge, which charge may be stated in combination,
20		in a single amount, with State tax that servicemen are
21		authorized to collect under the Service Use Tax Act, in
22		accordance with bracket schedules prescribed by the
23		Department.
24		Whenever the Department determines that a refund should be
25		made under this subsection to a claimant instead of issuing a
26		credit memorandum, the Department shall notify the State

HB4951 Enrolled - 690 - LRB103 38094 HLH 68226 b
1		Comptroller, who shall cause the warrant to be drawn for the
2		amount specified, and to the person named, in the notification
3		from the Department. The refund shall be paid by the State
4		Treasurer out of the tax fund referenced under paragraph (g)
5		of this Section or the Local Government Aviation Trust Fund,
6		as appropriate.
7		Nothing in this paragraph shall be construed to authorize
8		the county to impose a tax upon the privilege of engaging in
9		any business that under the Constitution of the United States
10		may not be made the subject of taxation by the State.
11		(c-5) If, on January 1, 2025, a unit of local government
12		has in effect a tax under this Section, or if, after January 1,
13		2025, a unit of local government imposes a tax under this
14		Section, then that tax applies to leases of tangible personal
15		property in effect, entered into, or renewed on or after that
16		date in the same manner as the tax under this Section and in
17		accordance with the changes made by this amendatory Act of the
18		103rd General Assembly.
19		(d) If a tax has been imposed under subsection (b), a use
20		tax shall also be imposed at the same rate upon the privilege
21		of using, in the county, any item of tangible personal
22		property that is purchased outside the county at retail from a
23		retailer, and that is titled or registered at a location
24		within the county with an agency of this State's government.
25		"Selling price" is defined as in the Use Tax Act. The tax shall
26		be collected from persons whose Illinois address for titling

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1		or registration purposes is given as being in the county. The
2		tax shall be collected by the Department of Revenue for the
3		county. 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 has full power to administer and enforce
14		this paragraph; to collect all taxes, penalties, and interest
15		due under this Section; to dispose of taxes, penalties, and
16		interest so collected in the manner provided in this Section;
17		and to determine all rights to credit memoranda or refunds
18		arising on account of the erroneous payment of tax, penalty,
19		or interest under this Section. In the administration of, and
20		compliance with, this subsection, the Department and persons
21		who are subject to this paragraph shall (i) have the same
22		rights, remedies, privileges, immunities, powers, and duties,
23		(ii) be subject to the same conditions, restrictions,
24		limitations, penalties, exclusions, exemptions, and
25		definitions of terms, and (iii) employ the same modes of
26		procedure as are prescribed in Sections 2 (except the

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1		definition of "retailer maintaining a place of business in
2		this State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a,
3		4, 6, 7, 8 (except that the jurisdiction to which the tax shall
4		be a debt to the extent indicated in that Section 8 shall be
5		the county), 9 (except provisions relating to quarter monthly
6		payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22
7		of the Use Tax Act and Section 3-7 of the Uniform Penalty and
8		Interest Act, that are not inconsistent with this paragraph,
9		as fully as if those provisions were set forth in this
10		subsection.
11		Whenever the Department determines that a refund should be
12		made under this subsection to a claimant instead of issuing a
13		credit memorandum, the Department shall notify the State
14		Comptroller, who shall cause the order to be drawn for the
15		amount specified, and to the person named, in the notification
16		from the Department. The refund shall be paid by the State
17		Treasurer out of the tax fund referenced under paragraph (g)
18		of this Section.
19		(e) A certificate of registration issued by the State
20		Department of Revenue to a retailer under the Retailers'
21		Occupation Tax Act or under the Service Occupation Tax Act
22		shall permit the registrant to engage in a business that is
23		taxed under the tax imposed under paragraphs (b), (c), or (d)
24		of this Section and no additional registration shall be
25		required. A certificate issued under the Use Tax Act or the
26		Service Use Tax Act shall be applicable with regard to any tax

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1		imposed under paragraph (c) of this Section.
2		(f) The results of any election authorizing a proposition
3		to impose a tax under this Section or effecting a change in the
4		rate of tax shall be certified by the proper election
5		authorities and filed with the Illinois Department on or
6		before the first day of October. In addition, an ordinance
7		imposing, discontinuing, or effecting a change in the rate of
8		tax under this Section shall be adopted and a certified copy of
9		the ordinance filed with the Department on or before the first
10		day of October. After proper receipt of the certifications,
11		the Department shall proceed to administer and enforce this
12		Section as of the first day of January next following the
13		adoption and filing.
14		(g) Except as otherwise provided in paragraph (g-2), the
15		Department of Revenue shall, upon collecting any taxes and
16		penalties as provided in this Section, pay the taxes and
17		penalties over to the State Treasurer as trustee for the
18		county. The taxes and penalties shall be held in a trust fund
19		outside the State Treasury. On or before the 25th day of each
20		calendar month, the Department of Revenue shall prepare and
21		certify to the Comptroller of the State of Illinois the amount
22		to be paid to the county, which shall be the balance in the
23		fund, less any amount determined by the Department to be
24		necessary for the payment of refunds. Within 10 days after
25		receipt by the Comptroller of the certification of the amount
26		to be paid to the county, the Comptroller shall cause an order

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1		to be drawn for payment for the amount in accordance with the
2		directions contained in the certification. Amounts received
3		from the tax imposed under this Section shall be used only for
4		the economic development activities of the county and
5		communities located within the county.
6		(g-2) Taxes and penalties collected on aviation fuel sold
7		on or after December 1, 2019, shall be immediately paid over by
8		the Department to the State Treasurer, ex officio, as trustee,
9		for deposit into the Local Government Aviation Trust Fund. The
10		Department shall only pay moneys into the Local Government
11		Aviation Trust Fund under this Section for so long as the
12		revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
13		47133 are binding on the county.
14		(h) When certifying the amount of a monthly disbursement
15		to the county under this Section, the Department shall
16		increase or decrease the amounts by an amount necessary to
17		offset any miscalculation of previous disbursements. The
18		offset amount shall be the amount erroneously disbursed within
19		the previous 6 months from the time a miscalculation is
20		discovered.
21		(i) This Section may be cited as the Rock Island County Use
22		and Occupation Tax Law.
23		(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
24		101-604, eff. 12-13-19.)
25		Section 75-35. The Illinois Municipal Code is amended by

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1		changing Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
2		8-11-1.7, and 11-74.3-6 as follows:
3		(65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
4		Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
5		Act. The corporate authorities of a home rule municipality may
6		impose a tax upon all persons engaged in the business of
7		selling tangible personal property, other than an item of
8		tangible personal property titled or registered with an agency
9		of this State's government, at retail in the municipality on
10		the gross receipts from these sales made in the course of such
11		business. If imposed, the tax shall only be imposed in 1/4%
12		increments. On and after September 1, 1991, this additional
13		tax may not be imposed on tangible personal property taxed at
14		the 1% rate under the Retailers' Occupation Tax Act (or at the
15		0% rate imposed under this amendatory Act of the 102nd General
16		Assembly). Beginning December 1, 2019, this tax is not imposed
17		on sales of aviation fuel unless the tax revenue is expended
18		for airport-related purposes. If a municipality does not have
19		an airport-related purpose to which it dedicates aviation fuel
20		tax revenue, then aviation fuel is excluded from the tax. Each
21		municipality must comply with the certification requirements
22		for airport-related purposes under Section 2-22 of the
23		Retailers' Occupation Tax Act. For purposes of this Section,
24		"airport-related purposes" has the meaning ascribed in Section
25		6z-20.2 of the State Finance Act. This exclusion for aviation

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1		fuel only applies for so long as the revenue use requirements
2		of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
3		municipality. The changes made to this Section by this
4		amendatory Act of the 101st General Assembly are a denial and
5		limitation of home rule powers and functions under subsection
6		(g) of Section 6 of Article VII of the Illinois Constitution.
7		The tax imposed by a home rule municipality under this Section
8		and all civil penalties that may be assessed as an incident of
9		the tax shall be collected and enforced by the State
10		Department of Revenue. The certificate of registration that is
11		issued by the Department to a retailer under the Retailers'
12		Occupation Tax Act shall permit the retailer to engage in a
13		business that is taxable under any ordinance or resolution
14		enacted pursuant to this Section without registering
15		separately with the Department under such ordinance or
16		resolution or under this Section. The Department shall have
17		full power to administer and enforce this Section; to collect
18		all taxes and penalties due hereunder; to dispose of taxes and
19		penalties so collected in the manner hereinafter provided; and
20		to determine all rights to credit memoranda arising on account
21		of the erroneous payment of tax or penalty hereunder. In the
22		administration of, and compliance with, this Section the
23		Department and persons who are subject to this Section shall
24		have the same rights, remedies, privileges, immunities, powers
25		and duties, and be subject to the same conditions,
26		restrictions, limitations, penalties and definitions of terms,

HB4951 Enrolled - 697 - LRB103 38094 HLH 68226 b
1		and employ the same modes of procedure, as are prescribed in
2		Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65
3		(in respect to all provisions therein other than the State
4		rate of tax), 2c, 3 (except as to the disposition of taxes and
5		penalties collected, and except that the retailer's discount
6		is not allowed for taxes paid on aviation fuel that are subject
7		to the revenue use requirements of 49 U.S.C. 47107(b) and 49
8		U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
9		5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
10		Retailers' Occupation Tax Act and Section 3-7 of the Uniform
11		Penalty and Interest Act, as fully as if those provisions were
12		set forth herein.
13		No tax may be imposed by a home rule municipality under
14		this Section unless the municipality also imposes a tax at the
15		same rate under Section 8-11-5 of this Act.
16		If, on January 1, 2025, a unit of local government has in
17		effect a tax under this Section, or if, after January 1, 2025,
18		a unit of local government imposes a tax under this Section,
19		then that tax applies to leases of tangible personal property
20		in effect, entered into, or renewed on or after that date in
21		the same manner as the tax under this Section and in accordance
22		with the changes made by this amendatory Act of the 103rd
23		General Assembly.
24		Persons subject to any tax imposed under the authority
25		granted in this Section may reimburse themselves for their
26		seller's tax liability hereunder by separately stating that

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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		Whenever the Department determines that a refund should be
6		made under this Section to a claimant instead of issuing a
7		credit memorandum, the Department shall notify the State
8		Comptroller, who shall cause the order to be drawn for the
9		amount specified and to the person named in the notification
10		from the Department. The refund shall be paid by the State
11		Treasurer out of the home rule municipal retailers' occupation
12		tax fund or the Local Government Aviation Trust Fund, as
13		appropriate.
14		Except as otherwise provided in this paragraph, the
15		Department shall immediately pay over to the State Treasurer,
16		ex officio, as trustee, all taxes and penalties collected
17		hereunder for deposit into the Home Rule Municipal Retailers'
18		Occupation Tax Fund. Taxes and penalties collected on aviation
19		fuel sold on or after December 1, 2019, shall be immediately
20		paid over by the Department to the State Treasurer, ex
21		officio, as trustee, for deposit into the Local Government
22		Aviation Trust Fund. The Department shall only pay moneys into
23		the Local Government Aviation Trust Fund under this Section
24		for so long as the revenue use requirements of 49 U.S.C.
25		47107(b) and 49 U.S.C. 47133 are binding on the State.
26		As soon as possible after the first day of each month,

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1		beginning January 1, 2011, upon certification of the
2		Department of Revenue, the Comptroller shall order
3		transferred, and the Treasurer shall transfer, to the STAR
4		Bonds Revenue Fund the local sales tax increment, as defined
5		in the Innovation Development and Economy Act, collected under
6		this Section during the second preceding calendar month for
7		sales within a STAR bond district.
8		After the monthly transfer to the STAR Bonds Revenue Fund,
9		on or before the 25th day of each calendar month, the
10		Department shall prepare and certify to the Comptroller the
11		disbursement of stated sums of money to named municipalities,
12		the municipalities to be those from which retailers have paid
13		taxes or penalties hereunder to the Department during the
14		second preceding calendar month. The amount to be paid to each
15		municipality shall be the amount (not including credit
16		memoranda and not including taxes and penalties collected on
17		aviation fuel sold on or after December 1, 2019) collected
18		hereunder during the second preceding calendar month by the
19		Department plus an amount the Department determines is
20		necessary to offset any amounts that were erroneously paid to
21		a different taxing body, and not including an amount equal to
22		the amount of refunds made during the second preceding
23		calendar month by the Department on behalf of such
24		municipality, and not including any amount that the Department
25		determines is necessary to offset any amounts that were
26		payable to a different taxing body but were erroneously paid

HB4951 Enrolled - 700 - LRB103 38094 HLH 68226 b
1		to the municipality, and not including any amounts that are
2		transferred to the STAR Bonds Revenue Fund, less 1.5% of the
3		remainder, which the Department shall transfer into the Tax
4		Compliance and Administration Fund. The Department, at the
5		time of each monthly disbursement to the municipalities, shall
6		prepare and certify to the State Comptroller the amount to be
7		transferred into the Tax Compliance and Administration Fund
8		under this Section. Within 10 days after receipt by the
9		Comptroller of the disbursement certification to the
10		municipalities and the Tax Compliance and Administration Fund
11		provided for in this Section to be given to the Comptroller by
12		the Department, the Comptroller shall cause the orders to be
13		drawn for the respective amounts in accordance with the
14		directions contained in the certification.
15		In addition to the disbursement required by the preceding
16		paragraph and in order to mitigate delays caused by
17		distribution procedures, an allocation shall, if requested, be
18		made within 10 days after January 14, 1991, and in November of
19		1991 and each year thereafter, to each municipality that
20		received more than $500,000 during the preceding fiscal year,
21		(July 1 through June 30) whether collected by the municipality
22		or disbursed by the Department as required by this Section.
23		Within 10 days after January 14, 1991, participating
24		municipalities shall notify the Department in writing of their
25		intent to participate. In addition, for the initial
26		distribution, participating municipalities shall certify to

HB4951 Enrolled - 701 - LRB103 38094 HLH 68226 b
1		the Department the amounts collected by the municipality for
2		each month under its home rule occupation and service
3		occupation tax during the period July 1, 1989 through June 30,
4		1990. The allocation within 10 days after January 14, 1991,
5		shall be in an amount equal to the monthly average of these
6		amounts, excluding the 2 months of highest receipts. The
7		monthly average for the period of July 1, 1990 through June 30,
8		1991 will be determined as follows: the amounts collected by
9		the municipality under its home rule occupation and service
10		occupation tax during the period of July 1, 1990 through
11		September 30, 1990, plus amounts collected by the Department
12		and paid to such municipality through June 30, 1991, excluding
13		the 2 months of highest receipts. The monthly average for each
14		subsequent period of July 1 through June 30 shall be an amount
15		equal to the monthly distribution made to each such
16		municipality under the preceding paragraph during this period,
17		excluding the 2 months of highest receipts. The distribution
18		made in November 1991 and each year thereafter under this
19		paragraph and the preceding paragraph shall be reduced by the
20		amount allocated and disbursed under this paragraph in the
21		preceding period of July 1 through June 30. The Department
22		shall prepare and certify to the Comptroller for disbursement
23		the allocations made in accordance with this paragraph.
24		For the purpose of determining the local governmental unit
25		whose tax is applicable, a retail sale by a producer of coal or
26		other mineral mined in Illinois is a sale at retail at the

HB4951 Enrolled - 702 - LRB103 38094 HLH 68226 b
1		place where the coal or other mineral mined in Illinois is
2		extracted from the earth. This paragraph does not apply to
3		coal or other mineral when it is delivered or shipped by the
4		seller to the purchaser at a point outside Illinois so that the
5		sale is exempt under the United States Constitution as a sale
6		in interstate or foreign commerce.
7		Nothing in this Section shall be construed to authorize a
8		municipality to impose a tax upon the privilege of engaging in
9		any business which under the Constitution of the United States
10		may not be made the subject of taxation by this State.
11		An ordinance or resolution imposing or discontinuing a tax
12		hereunder or effecting a change in the rate thereof shall be
13		adopted and a certified copy thereof filed with the Department
14		on or before the first day of June, whereupon the Department
15		shall proceed to administer and enforce this Section as of the
16		first day of September next following the adoption and filing.
17		Beginning January 1, 1992, an ordinance or resolution imposing
18		or discontinuing the tax hereunder or effecting a change in
19		the rate thereof shall be adopted and a certified copy thereof
20		filed with the Department on or before the first day of July,
21		whereupon the Department shall proceed to administer and
22		enforce this Section as of the first day of October next
23		following such adoption and filing. Beginning January 1, 1993,
24		an ordinance or resolution imposing or discontinuing the tax
25		hereunder or effecting a change in the rate thereof shall be
26		adopted and a certified copy thereof filed with the Department

HB4951 Enrolled - 703 - LRB103 38094 HLH 68226 b
1		on or before the first day of October, whereupon the
2		Department shall proceed to administer and enforce this
3		Section as of the first day of January next following the
4		adoption and filing. However, a municipality located in a
5		county with a population in excess of 3,000,000 that elected
6		to become a home rule unit at the general primary election in
7		1994 may adopt an ordinance or resolution imposing the tax
8		under this Section and file a certified copy of the ordinance
9		or resolution with the Department on or before July 1, 1994.
10		The Department shall then proceed to administer and enforce
11		this Section as of October 1, 1994. Beginning April 1, 1998, an
12		ordinance or resolution imposing or discontinuing the tax
13		hereunder or effecting a change in the rate thereof shall
14		either (i) be adopted and a certified copy thereof filed with
15		the Department on or before the first day of April, whereupon
16		the Department shall proceed to administer and enforce this
17		Section as of the first day of July next following the adoption
18		and filing; or (ii) be adopted and a certified copy thereof
19		filed with the Department on or before the first day of
20		October, whereupon the Department shall proceed to administer
21		and enforce this Section as of the first day of January next
22		following the adoption and filing.
23		When certifying the amount of a monthly disbursement to a
24		municipality under this Section, the Department shall increase
25		or decrease the amount by an amount necessary to offset any
26		misallocation of previous disbursements. The offset amount

HB4951 Enrolled - 704 - LRB103 38094 HLH 68226 b
1		shall be the amount erroneously disbursed within the previous
2		6 months from the time a misallocation is discovered.
3		Any unobligated balance remaining in the Municipal
4		Retailers' Occupation Tax Fund on December 31, 1989, which
5		fund was abolished by Public Act 85-1135, and all receipts of
6		municipal tax as a result of audits of liability periods prior
7		to January 1, 1990, shall be paid into the Local Government Tax
8		Fund for distribution as provided by this Section prior to the
9		enactment of Public Act 85-1135. All receipts of municipal tax
10		as a result of an assessment not arising from an audit, for
11		liability periods prior to January 1, 1990, shall be paid into
12		the Local Government Tax Fund for distribution before July 1,
13		1990, as provided by this Section prior to the enactment of
14		Public Act 85-1135; and on and after July 1, 1990, all such
15		receipts shall be distributed as provided in Section 6z-18 of
16		the State Finance Act.
17		As used in this Section, "municipal" and "municipality"
18		means a city, village or incorporated town, including an
19		incorporated town that has superseded a civil township.
20		This Section shall be known and may be cited as the Home
21		Rule Municipal Retailers' Occupation Tax Act.
22		(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
23		101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
24		(65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
25		Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'

HB4951 Enrolled - 705 - LRB103 38094 HLH 68226 b
1		Occupation Tax Act. The corporate authorities of a non-home
2		rule municipality may impose a tax upon all persons engaged in
3		the business of selling tangible personal property, other than
4		on an item of tangible personal property which is titled and
5		registered by an agency of this State's Government, at retail
6		in the municipality for expenditure on public infrastructure
7		or for property tax relief or both as defined in Section
8		8-11-1.2 if approved by referendum as provided in Section
9		8-11-1.1, of the gross receipts from such sales made in the
10		course of such business. If the tax is approved by referendum
11		on or after July 14, 2010 (the effective date of Public Act
12		96-1057), the corporate authorities of a non-home rule
13		municipality may, until July 1, 2030, use the proceeds of the
14		tax for expenditure on municipal operations, in addition to or
15		in lieu of any expenditure on public infrastructure or for
16		property tax relief. The tax imposed may not be more than 1%
17		and may be imposed only in 1/4% increments. The tax may not be
18		imposed on tangible personal property taxed at the 1% rate
19		under the Retailers' Occupation Tax Act (or at the 0% rate
20		imposed under this amendatory Act of the 102nd General
21		Assembly). Beginning December 1, 2019, this tax is not imposed
22		on sales of aviation fuel unless the tax revenue is expended
23		for airport-related purposes. If a municipality does not have
24		an airport-related purpose to which it dedicates aviation fuel
25		tax revenue, then aviation fuel is excluded from the tax. Each
26		municipality must comply with the certification requirements

HB4951 Enrolled - 706 - LRB103 38094 HLH 68226 b
1		for airport-related purposes under Section 2-22 of the
2		Retailers' Occupation Tax Act. For purposes of this Section,
3		"airport-related purposes" has the meaning ascribed in Section
4		6z-20.2 of the State Finance Act. This exclusion for aviation
5		fuel only applies for so long as the revenue use requirements
6		of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
7		municipality. The tax imposed by a municipality pursuant to
8		this Section and all civil penalties that may be assessed as an
9		incident thereof shall be collected and enforced by the State
10		Department of Revenue. The certificate of registration which
11		is issued by the Department to a retailer under the Retailers'
12		Occupation Tax Act shall permit such retailer to engage in a
13		business which is taxable under any ordinance or resolution
14		enacted pursuant to this Section without registering
15		separately with the Department under such ordinance or
16		resolution or under this Section. The Department shall have
17		full power to administer and enforce this Section; to collect
18		all taxes and penalties due hereunder; to dispose of taxes and
19		penalties so collected in the manner hereinafter provided, and
20		to determine all rights to credit memoranda, arising on
21		account of the erroneous payment of tax or penalty hereunder.
22		In the administration of, and compliance with, this Section,
23		the Department and persons who are subject to this Section
24		shall have the same rights, remedies, privileges, immunities,
25		powers and duties, and be subject to the same conditions,
26		restrictions, limitations, penalties and definitions of terms,

HB4951 Enrolled - 707 - LRB103 38094 HLH 68226 b
1		and employ the same modes of procedure, as are prescribed in
2		Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in
3		respect to all provisions therein other than the State rate of
4		tax), 2c, 3 (except as to the disposition of taxes and
5		penalties collected, and except that the retailer's discount
6		is not allowed for taxes paid on aviation fuel that are subject
7		to the revenue use requirements of 49 U.S.C. 47107(b) and 49
8		U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
9		5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
10		Retailers' Occupation Tax Act and Section 3-7 of the Uniform
11		Penalty and Interest Act as fully as if those provisions were
12		set forth herein.
13		No municipality may impose a tax under this Section unless
14		the municipality also imposes a tax at the same rate under
15		Section 8-11-1.4 of this Code.
16		If, on January 1, 2025, a unit of local government has in
17		effect a tax under this Section, or if, after January 1, 2025,
18		a unit of local government imposes a tax under this Section,
19		then that tax applies to leases of tangible personal property
20		in effect, entered into, or renewed on or after that date in
21		the same manner as the tax under this Section and in accordance
22		with the changes made by this amendatory Act of the 103rd
23		General Assembly.
24		Persons subject to any tax imposed pursuant to the
25		authority granted in this Section may reimburse themselves for
26		their seller's tax liability hereunder by separately stating

HB4951 Enrolled - 708 - LRB103 38094 HLH 68226 b
1		such 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		Whenever the Department determines that a refund should be
6		made under this Section to a claimant instead of issuing a
7		credit memorandum, the Department shall notify the State
8		Comptroller, who shall cause the order to be drawn for the
9		amount specified, and to the person named, in such
10		notification from the Department. Such refund shall be paid by
11		the State Treasurer out of the non-home rule municipal
12		retailers' occupation tax fund or the Local Government
13		Aviation Trust Fund, as appropriate.
14		Except as otherwise provided, the Department shall
15		forthwith pay over to the State Treasurer, ex officio, as
16		trustee, all taxes and penalties collected hereunder for
17		deposit into the Non-Home Rule Municipal Retailers' Occupation
18		Tax Fund. Taxes and penalties collected on aviation fuel sold
19		on or after December 1, 2019, shall be immediately paid over by
20		the Department to the State Treasurer, ex officio, as trustee,
21		for deposit into the Local Government Aviation Trust Fund. The
22		Department shall only pay moneys into the Local Government
23		Aviation Trust Fund under this Section for so long as the
24		revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
25		47133 are binding on the municipality.
26		As soon as possible after the first day of each month,

HB4951 Enrolled - 709 - LRB103 38094 HLH 68226 b
1		beginning January 1, 2011, upon certification of the
2		Department of Revenue, the Comptroller shall order
3		transferred, and the Treasurer shall transfer, to the STAR
4		Bonds Revenue Fund the local sales tax increment, as defined
5		in the Innovation Development and Economy Act, collected under
6		this Section during the second preceding calendar month for
7		sales within a STAR bond district.
8		After the monthly transfer to the STAR Bonds Revenue Fund,
9		on or before the 25th day of each calendar month, the
10		Department shall prepare and certify to the Comptroller the
11		disbursement of stated sums of money to named municipalities,
12		the municipalities to be those from which retailers have paid
13		taxes or penalties hereunder to the Department during the
14		second preceding calendar month. The amount to be paid to each
15		municipality shall be the amount (not including credit
16		memoranda and not including taxes and penalties collected on
17		aviation fuel sold on or after December 1, 2019) collected
18		hereunder during the second preceding calendar month by the
19		Department plus an amount the Department determines is
20		necessary to offset any amounts which were erroneously paid to
21		a different taxing body, and not including an amount equal to
22		the amount of refunds made during the second preceding
23		calendar month by the Department on behalf of such
24		municipality, and not including any amount which the
25		Department determines is necessary to offset any amounts which
26		were payable to a different taxing body but were erroneously

HB4951 Enrolled - 710 - LRB103 38094 HLH 68226 b
1		paid to the municipality, and not including any amounts that
2		are transferred to the STAR Bonds Revenue Fund, less 1.5% of
3		the remainder, which the Department shall transfer into the
4		Tax Compliance and Administration Fund. The Department, at the
5		time of each monthly disbursement to the municipalities, shall
6		prepare and certify to the State Comptroller the amount to be
7		transferred into the Tax Compliance and Administration Fund
8		under this Section. Within 10 days after receipt, by the
9		Comptroller, of the disbursement certification to the
10		municipalities and the Tax Compliance and Administration Fund
11		provided for in this Section to be given to the Comptroller by
12		the Department, the Comptroller shall cause the orders to be
13		drawn for the respective amounts in accordance with the
14		directions contained in such certification.
15		For the purpose of determining the local governmental unit
16		whose tax is applicable, a retail sale, by a producer of coal
17		or other mineral mined in Illinois, is a sale at retail at the
18		place where the coal or other mineral mined in Illinois is
19		extracted from the earth. This paragraph does not apply to
20		coal or other mineral when it is delivered or shipped by the
21		seller to the purchaser at a point outside Illinois so that the
22		sale is exempt under the Federal Constitution as a sale in
23		interstate or foreign commerce.
24		Nothing in this Section shall be construed to authorize a
25		municipality to impose a tax upon the privilege of engaging in
26		any business which under the constitution of the United States

HB4951 Enrolled - 711 - LRB103 38094 HLH 68226 b
1		may not be made the subject of taxation by this State.
2		When certifying the amount of a monthly disbursement to a
3		municipality under this Section, the Department shall increase
4		or decrease such amount by an amount necessary to offset any
5		misallocation of previous disbursements. The offset amount
6		shall be the amount erroneously disbursed within the previous
7		6 months from the time a misallocation is discovered.
8		The Department of Revenue shall implement Public Act
9		91-649 so as to collect the tax on and after January 1, 2002.
10		As used in this Section, "municipal" and "municipality"
11		mean a city, village, or incorporated town, including an
12		incorporated town which has superseded a civil township.
13		This Section shall be known and may be cited as the
14		Non-Home Rule Municipal Retailers' Occupation Tax Act.
15		(Source: P.A. 101-10, eff. 6-5-19; 101-47, eff. 1-1-20;
16		101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff.
17		4-19-22.)
18		(65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
19		Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
20		Tax Act. The corporate authorities of a non-home rule
21		municipality may impose a tax upon all persons engaged, in
22		such municipality, in the business of making sales of service
23		for expenditure on public infrastructure or for property tax
24		relief or both as defined in Section 8-11-1.2 if approved by
25		referendum as provided in Section 8-11-1.1, of the selling

HB4951 Enrolled - 712 - LRB103 38094 HLH 68226 b
1		price of all tangible personal property transferred by such
2		servicemen either in the form of tangible personal property or
3		in the form of real estate as an incident to a sale of service.
4		If the tax is approved by referendum on or after July 14, 2010
5		(the effective date of Public Act 96-1057), the corporate
6		authorities of a non-home rule municipality may, until
7		December 31, 2030, use the proceeds of the tax for expenditure
8		on municipal operations, in addition to or in lieu of any
9		expenditure on public infrastructure or for property tax
10		relief. The tax imposed may not be more than 1% and may be
11		imposed only in 1/4% increments. The tax may not be imposed on
12		tangible personal property taxed at the 1% rate under the
13		Service Occupation Tax Act (or at the 0% rate imposed under
14		this amendatory Act of the 102nd General Assembly). Beginning
15		December 1, 2019, this tax is not imposed on sales of aviation
16		fuel unless the tax revenue is expended for airport-related
17		purposes. If a municipality does not have an airport-related
18		purpose to which it dedicates aviation fuel tax revenue, then
19		aviation fuel is excluded from the tax. Each municipality must
20		comply with the certification requirements for airport-related
21		purposes under Section 2-22 of the Retailers' Occupation Tax
22		Act. For purposes of this Section, "airport-related purposes"
23		has the meaning ascribed in Section 6z-20.2 of the State
24		Finance Act. This exclusion for aviation fuel only applies for
25		so long as the revenue use requirements of 49 U.S.C. 47107(b)
26		and 49 U.S.C. 47133 are binding on the municipality. The tax

HB4951 Enrolled - 713 - LRB103 38094 HLH 68226 b
1		imposed by a municipality pursuant to this Section and all
2		civil penalties that may be assessed as an incident thereof
3		shall be collected and enforced by the State Department of
4		Revenue. The certificate of registration which is issued by
5		the Department to a retailer under the Retailers' Occupation
6		Tax Act or under the Service Occupation Tax Act shall permit
7		such registrant to engage in a business which is taxable under
8		any ordinance or resolution enacted pursuant to this Section
9		without registering separately with the Department under such
10		ordinance or resolution or under this Section. The Department
11		shall have full power to administer and enforce this Section;
12		to collect all taxes and penalties due hereunder; to dispose
13		of taxes and penalties so collected in the manner hereinafter
14		provided, and to determine all rights to credit memoranda
15		arising on account of the erroneous payment of tax or penalty
16		hereunder. In the administration of, and compliance with, this
17		Section the Department and persons who are subject to this
18		Section 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 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
23		respect to all provisions therein other than the State rate of
24		tax), 4 (except that the reference to the State shall be to the
25		taxing municipality), 5, 7, 8 (except that the jurisdiction to
26		which the tax shall be a debt to the extent indicated in that

HB4951 Enrolled - 714 - LRB103 38094 HLH 68226 b
1		Section 8 shall be the taxing municipality), 9 (except as to
2		the disposition of taxes and penalties collected, and except
3		that the returned merchandise credit for this municipal tax
4		may not be taken against any State tax, and except that the
5		retailer's discount is not allowed for taxes paid on aviation
6		fuel that are subject to the revenue use requirements of 49
7		U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the
8		reference therein to Section 2b of the Retailers' Occupation
9		Tax Act), 13 (except that any reference to the State shall mean
10		the taxing municipality), the first paragraph of Section 15,
11		16, 17, 18, 19 and 20 of the Service Occupation Tax Act and
12		Section 3-7 of the Uniform Penalty and Interest Act, as fully
13		as if those provisions were set forth herein.
14		No municipality may impose a tax under this Section unless
15		the municipality also imposes a tax at the same rate under
16		Section 8-11-1.3 of this Code.
17		If, on January 1, 2025, a unit of local government has in
18		effect a tax under this Section, or if, after January 1, 2025,
19		a unit of local government imposes a tax under this Section,
20		then that tax applies to leases of tangible personal property
21		in effect, entered into, or renewed on or after that date in
22		the same manner as the tax under this Section and in accordance
23		with the changes made by this amendatory Act of the 103rd
24		General Assembly.
25		Persons subject to any tax imposed pursuant to the
26		authority granted in this Section may reimburse themselves for

HB4951 Enrolled - 715 - LRB103 38094 HLH 68226 b
1		their serviceman's tax liability hereunder by separately
2		stating such tax as an additional charge, which charge may be
3		stated in combination, in a single amount, with State tax
4		which servicemen are authorized to collect under the Service
5		Use Tax Act, pursuant to such bracket schedules as the
6		Department may prescribe.
7		Whenever the Department determines that a refund should be
8		made under this Section to a claimant instead of issuing
9		credit memorandum, the Department shall notify the State
10		Comptroller, who shall cause the order to be drawn for the
11		amount specified, and to the person named, in such
12		notification from the Department. Such refund shall be paid by
13		the State Treasurer out of the municipal retailers' occupation
14		tax fund or the Local Government Aviation Trust Fund, as
15		appropriate.
16		Except as otherwise provided in this paragraph, the
17		Department shall forthwith pay over to the State Treasurer, ex
18		officio, as trustee, all taxes and penalties collected
19		hereunder for deposit into the municipal retailers' occupation
20		tax fund. Taxes and penalties collected on aviation fuel sold
21		on or after December 1, 2019, shall be immediately paid over by
22		the Department to the State Treasurer, ex officio, as trustee,
23		for deposit into the Local Government Aviation Trust Fund. The
24		Department shall only pay moneys into the Local Government
25		Aviation Trust Fund under this Section for so long as the
26		revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.

HB4951 Enrolled - 716 - LRB103 38094 HLH 68226 b
1		47133 are binding on the municipality.
2		As soon as possible after the first day of each month,
3		beginning January 1, 2011, upon certification of the
4		Department of Revenue, the Comptroller shall order
5		transferred, and the Treasurer shall transfer, to the STAR
6		Bonds Revenue Fund the local sales tax increment, as defined
7		in the Innovation Development and Economy Act, collected under
8		this Section during the second preceding calendar month for
9		sales within a STAR bond district.
10		After the monthly transfer to the STAR Bonds Revenue Fund,
11		on or before the 25th day of each calendar month, the
12		Department shall prepare and certify to the Comptroller the
13		disbursement of stated sums of money to named municipalities,
14		the municipalities to be those from which suppliers and
15		servicemen have paid taxes or penalties hereunder to the
16		Department during the second preceding calendar month. The
17		amount to be paid to each municipality shall be the amount (not
18		including credit memoranda and not including taxes and
19		penalties collected on aviation fuel sold on or after December
20		1, 2019) collected hereunder during the second preceding
21		calendar month by the Department, and not including an amount
22		equal to the amount of refunds made during the second
23		preceding calendar month by the Department on behalf of such
24		municipality, and not including any amounts that are
25		transferred to the STAR Bonds Revenue Fund, less 1.5% of the
26		remainder, which the Department shall transfer into the Tax

HB4951 Enrolled - 717 - LRB103 38094 HLH 68226 b
1		Compliance and Administration Fund. The Department, at the
2		time of each monthly disbursement to the municipalities, shall
3		prepare and certify to the State Comptroller the amount to be
4		transferred into the Tax Compliance and Administration Fund
5		under this Section. Within 10 days after receipt, by the
6		Comptroller, of the disbursement certification to the
7		municipalities, the General Revenue Fund, and the Tax
8		Compliance and Administration Fund provided for in this
9		Section to be given to the Comptroller by the Department, the
10		Comptroller shall cause the orders to be drawn for the
11		respective amounts in accordance with the directions contained
12		in such certification.
13		The Department of Revenue shall implement Public Act
14		91-649 so as to collect the tax on and after January 1, 2002.
15		Nothing in this Section shall be construed to authorize a
16		municipality to impose a tax upon the privilege of engaging in
17		any business which under the constitution of the United States
18		may not be made the subject of taxation by this State.
19		As used in this Section, "municipal" or "municipality"
20		means or refers to a city, village or incorporated town,
21		including an incorporated town which has superseded a civil
22		township.
23		This Section shall be known and may be cited as the
24		"Non-Home Rule Municipal Service Occupation Tax Act".
25		(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)

HB4951 Enrolled - 718 - LRB103 38094 HLH 68226 b
1		(65 ILCS 5/8-11-1.6)
2		Sec. 8-11-1.6. Non-home rule municipal retailers'
3		occupation tax; municipalities between 20,000 and 25,000. The
4		corporate authorities of a non-home rule municipality with a
5		population of more than 20,000 but less than 25,000 that has,
6		prior to January 1, 1987, established a Redevelopment Project
7		Area that has been certified as a State Sales Tax Boundary and
8		has issued bonds or otherwise incurred indebtedness to pay for
9		costs in excess of $5,000,000, which is secured in part by a
10		tax increment allocation fund, in accordance with the
11		provisions of Division 11-74.4 of this Code may, by passage of
12		an ordinance, impose a tax upon all persons engaged in the
13		business of selling tangible personal property, other than on
14		an item of tangible personal property that is titled and
15		registered by an agency of this State's Government, at retail
16		in the municipality. This tax may not be imposed on tangible
17		personal property taxed at the 1% rate under the Retailers'
18		Occupation Tax Act (or at the 0% rate imposed under this
19		amendatory Act of the 102nd General Assembly). Beginning
20		December 1, 2019, this tax is not imposed on sales of aviation
21		fuel unless the tax revenue is expended for airport-related
22		purposes. If a municipality does not have an airport-related
23		purpose to which it dedicates aviation fuel tax revenue, then
24		aviation fuel is excluded from the tax. Each municipality must
25		comply with the certification requirements for airport-related
26		purposes under Section 2-22 of the Retailers' Occupation Tax

HB4951 Enrolled - 719 - LRB103 38094 HLH 68226 b
1		Act. For purposes of this Section, "airport-related purposes"
2		has the meaning ascribed in Section 6z-20.2 of the State
3		Finance Act. This exclusion for aviation fuel only applies for
4		so long as the revenue use requirements of 49 U.S.C. 47107(b)
5		and 49 U.S.C. 47133 are binding on the municipality. If
6		imposed, the tax shall only be imposed in .25% increments of
7		the gross receipts from such sales made in the course of
8		business. Any tax imposed by a municipality under this Section
9		and all civil penalties that may be assessed as an incident
10		thereof shall be collected and enforced by the State
11		Department of Revenue. An ordinance imposing a tax hereunder
12		or effecting a change in the rate thereof shall be adopted and
13		a certified copy thereof filed with the Department on or
14		before the first day of October, whereupon the Department
15		shall proceed to administer and enforce this Section as of the
16		first day of January next following such adoption and filing.
17		The certificate of registration that is issued by the
18		Department to a retailer under the Retailers' Occupation Tax
19		Act shall permit the retailer to engage in a business that is
20		taxable under any ordinance or resolution enacted under this
21		Section without registering separately with the Department
22		under the ordinance or resolution or under this Section. The
23		Department shall have full power to administer and enforce
24		this Section, to collect all taxes and penalties due
25		hereunder, to dispose of taxes and penalties so collected in
26		the manner hereinafter provided, and to determine all rights

HB4951 Enrolled - 720 - LRB103 38094 HLH 68226 b
1		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, and definitions of terms, and employ the same modes
8		of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
9		1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
10		therein other than the State rate of tax), 2c, 3 (except as to
11		the disposition of taxes and penalties collected, and except
12		that the retailer's discount is not allowed for taxes paid on
13		aviation fuel that are subject to the revenue use requirements
14		of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
15		5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
16		10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
17		Section 3-7 of the Uniform Penalty and Interest Act as fully as
18		if those provisions were set forth herein.
19		A tax may not be imposed by a municipality under this
20		Section unless the municipality also imposes a tax at the same
21		rate under Section 8-11-1.7 of this Act.
22		If, on January 1, 2025, a unit of local government has in
23		effect a tax under this Section, or if, after January 1, 2025,
24		a unit of local government imposes a tax under this Section,
25		then that tax applies to leases of tangible personal property
26		in effect, entered into, or renewed on or after that date in

HB4951 Enrolled - 721 - LRB103 38094 HLH 68226 b
1		the same manner as the tax under this Section and in accordance
2		with the changes made by this amendatory Act of the 103rd
3		General Assembly.
4		Persons subject to any tax imposed under the authority
5		granted in this Section may reimburse themselves for their
6		seller's tax liability hereunder by separately stating the tax
7		as an additional charge, which charge may be stated in
8		combination, in a single amount, with State tax which sellers
9		are required to collect under the Use Tax Act, pursuant to such
10		bracket schedules as the Department may prescribe.
11		Whenever the Department determines that a refund should be
12		made under this Section to a claimant, instead of issuing a
13		credit memorandum, the Department shall notify the State
14		Comptroller, who shall cause the order to be drawn for the
15		amount specified, and to the person named in the notification
16		from the Department. The refund shall be paid by the State
17		Treasurer out of the Non-Home Rule Municipal Retailers'
18		Occupation Tax Fund, which is hereby created or the Local
19		Government Aviation Trust Fund, as appropriate.
20		Except as otherwise provided in this paragraph, the
21		Department shall forthwith pay over to the State Treasurer, ex
22		officio, as trustee, all taxes and penalties collected
23		hereunder for deposit into the Non-Home Rule Municipal
24		Retailers' Occupation Tax Fund. Taxes and penalties collected
25		on aviation fuel sold on or after December 1, 2019, shall be
26		immediately paid over by the Department to the State

HB4951 Enrolled - 722 - LRB103 38094 HLH 68226 b
1		Treasurer, ex officio, as trustee, for deposit into the Local
2		Government Aviation Trust Fund. The Department shall only pay
3		moneys into the Local Government Aviation Trust Fund under
4		this Section for so long as the revenue use requirements of 49
5		U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
6		municipality.
7		As soon as possible after the first day of each month,
8		beginning January 1, 2011, upon certification of the
9		Department of Revenue, the Comptroller shall order
10		transferred, and the Treasurer shall transfer, to the STAR
11		Bonds Revenue Fund the local sales tax increment, as defined
12		in the Innovation Development and Economy Act, collected under
13		this Section during the second preceding calendar month for
14		sales within a STAR bond district.
15		After the monthly transfer to the STAR Bonds Revenue Fund,
16		on or before the 25th day of each calendar month, the
17		Department shall prepare and certify to the Comptroller the
18		disbursement of stated sums of money to named municipalities,
19		the municipalities to be those from which retailers have paid
20		taxes or penalties hereunder to the Department during the
21		second preceding calendar month. The amount to be paid to each
22		municipality shall be the amount (not including credit
23		memoranda and not including taxes and penalties collected on
24		aviation fuel sold on or after December 1, 2019) collected
25		hereunder during the second preceding calendar month by the
26		Department plus an amount the Department determines is

HB4951 Enrolled - 723 - LRB103 38094 HLH 68226 b
1		necessary to offset any amounts that were erroneously paid to
2		a different taxing body, and not including an amount equal to
3		the amount of refunds made during the second preceding
4		calendar month by the Department on behalf of the
5		municipality, and not including any amount that the Department
6		determines is necessary to offset any amounts that were
7		payable to a different taxing body but were erroneously paid
8		to the municipality, and not including any amounts that are
9		transferred to the STAR Bonds Revenue Fund, less 1.5% of the
10		remainder, which the Department shall transfer into the Tax
11		Compliance and Administration Fund. The Department, at the
12		time of each monthly disbursement to the municipalities, shall
13		prepare and certify to the State Comptroller the amount to be
14		transferred into the Tax Compliance and Administration Fund
15		under this Section. Within 10 days after receipt by the
16		Comptroller of the disbursement certification to the
17		municipalities and the Tax Compliance and Administration Fund
18		provided for in this Section to be given to the Comptroller by
19		the Department, the Comptroller shall cause the orders to be
20		drawn for the respective amounts in accordance with the
21		directions contained in the certification.
22		For the purpose of determining the local governmental unit
23		whose tax is applicable, a retail sale by a producer of coal or
24		other mineral mined in Illinois is a sale at retail at the
25		place where the coal or other mineral mined in Illinois is
26		extracted from the earth. This paragraph does not apply to

HB4951 Enrolled - 724 - LRB103 38094 HLH 68226 b
1		coal or other mineral when it is delivered or shipped by the
2		seller to the purchaser at a point outside Illinois so that the
3		sale is exempt under the federal Constitution as a sale in
4		interstate or foreign commerce.
5		Nothing in this Section shall be construed to authorize a
6		municipality to impose a tax upon the privilege of engaging in
7		any business which under the constitution of the United States
8		may not be made the subject of taxation by this State.
9		When certifying the amount of a monthly disbursement to a
10		municipality under this Section, the Department shall increase
11		or decrease the amount by an amount necessary to offset any
12		misallocation of previous disbursements. The offset amount
13		shall be the amount erroneously disbursed within the previous
14		6 months from the time a misallocation is discovered.
15		As used in this Section, "municipal" and "municipality"
16		means a city, village, or incorporated town, including an
17		incorporated town that has superseded a civil township.
18		(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
19		101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
20		(65 ILCS 5/8-11-1.7)
21		Sec. 8-11-1.7. Non-home rule municipal service occupation
22		tax; municipalities between 20,000 and 25,000. The corporate
23		authorities of a non-home rule municipality with a population
24		of more than 20,000 but less than 25,000 as determined by the
25		last preceding decennial census that has, prior to January 1,

HB4951 Enrolled - 725 - LRB103 38094 HLH 68226 b
1		1987, established a Redevelopment Project Area that has been
2		certified as a State Sales Tax Boundary and has issued bonds or
3		otherwise incurred indebtedness to pay for costs in excess of
4		$5,000,000, which is secured in part by a tax increment
5		allocation fund, in accordance with the provisions of Division
6		11-74.4 of this Code may, by passage of an ordinance, impose a
7		tax upon all persons engaged in the municipality in the
8		business of making sales of service. If imposed, the tax shall
9		only be imposed in .25% increments of the selling price of all
10		tangible personal property transferred by such servicemen
11		either in the form of tangible personal property or in the form
12		of real estate as an incident to a sale of service. This tax
13		may not be imposed on tangible personal property taxed at the
14		1% rate under the Service Occupation Tax Act (or at the 0% rate
15		imposed under this amendatory Act of the 102nd General
16		Assembly). Beginning December 1, 2019, this tax is not imposed
17		on sales of aviation fuel unless the tax revenue is expended
18		for airport-related purposes. If a municipality does not have
19		an airport-related purpose to which it dedicates aviation fuel
20		tax revenue, then aviation fuel is excluded from the tax. Each
21		municipality must comply with the certification requirements
22		for airport-related purposes under Section 2-22 of the
23		Retailers' Occupation Tax Act. For purposes of this Section,
24		"airport-related purposes" has the meaning ascribed in Section
25		6z-20.2 of the State Finance Act. This exclusion for aviation
26		fuel only applies for so long as the revenue use requirements

HB4951 Enrolled - 726 - LRB103 38094 HLH 68226 b
1		of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
2		municipality. The tax imposed by a municipality under this
3		Section and all civil penalties that may be assessed as an
4		incident thereof shall be collected and enforced by the State
5		Department of Revenue. An ordinance imposing a tax hereunder
6		or effecting a change in the rate thereof shall be adopted and
7		a certified copy thereof filed with the Department on or
8		before the first day of October, whereupon the Department
9		shall proceed to administer and enforce this Section as of the
10		first day of January next following such adoption and filing.
11		The certificate of registration that is issued by the
12		Department to a retailer under the Retailers' Occupation Tax
13		Act or under the Service Occupation Tax Act shall permit the
14		registrant to engage in a business that is taxable under any
15		ordinance or resolution enacted under this Section without
16		registering separately with the Department under the ordinance
17		or resolution or under this Section. The Department shall have
18		full power to administer and enforce this Section, to collect
19		all taxes and penalties due hereunder, to dispose of taxes and
20		penalties so collected in a manner hereinafter provided, and
21		to determine all rights to credit memoranda arising on account
22		of the erroneous payment of tax or penalty hereunder. In the
23		administration of and compliance with this Section, the
24		Department and persons who are subject to this Section shall
25		have the same rights, remedies, privileges, immunities,
26		powers, and duties, and be subject to the same conditions,

HB4951 Enrolled - 727 - LRB103 38094 HLH 68226 b
1		restrictions, limitations, penalties and definitions of terms,
2		and employ the same modes of procedure, as are prescribed in
3		Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
4		provisions therein other than the State rate of tax), 4
5		(except that the reference to the State shall be to the taxing
6		municipality), 5, 7, 8 (except that the jurisdiction to which
7		the tax shall be a debt to the extent indicated in that Section
8		8 shall be the taxing municipality), 9 (except as to the
9		disposition of taxes and penalties collected, and except that
10		the returned merchandise credit for this municipal tax may not
11		be taken against any State tax, and except that the retailer's
12		discount is not allowed for taxes paid on aviation fuel that
13		are subject to the revenue use requirements of 49 U.S.C.
14		47107(b) and 49 U.S.C. 47133), 10, 11, 12, (except the
15		reference therein to Section 2b of the Retailers' Occupation
16		Tax Act), 13 (except that any reference to the State shall mean
17		the taxing municipality), the first paragraph of Sections 15,
18		16, 17, 18, 19, and 20 of the Service Occupation Tax Act and
19		Section 3-7 of the Uniform Penalty and Interest Act, as fully
20		as if those provisions were set forth herein.
21		A tax may not be imposed by a municipality under this
22		Section unless the municipality also imposes a tax at the same
23		rate under Section 8-11-1.6 of this Act.
24		If, on January 1, 2025, a unit of local government has in
25		effect a tax under this Section, or if, after January 1, 2025,
26		a unit of local government imposes a tax under this Section,

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1		then that tax applies to leases of tangible personal property
2		in effect, entered into, or renewed on or after that date in
3		the same manner as the tax under this Section and in accordance
4		with the changes made by this amendatory Act of the 103rd
5		General Assembly.
6		Person subject to any tax imposed under the authority
7		granted in this Section may reimburse themselves for their
8		servicemen's tax liability hereunder by separately stating the
9		tax as an additional charge, which charge may be stated in
10		combination, in a single amount, with State tax that
11		servicemen are authorized to collect under the Service Use Tax
12		Act, under such bracket schedules as the Department may
13		prescribe.
14		Whenever the Department determines that a refund should be
15		made under this Section to a claimant instead of issuing
16		credit memorandum, the Department shall notify the State
17		Comptroller, who shall cause the order to be drawn for the
18		amount specified, and to the person named, in such
19		notification from the Department. The refund shall be paid by
20		the State Treasurer out of the Non-Home Rule Municipal
21		Retailers' Occupation Tax Fund or the Local Government
22		Aviation Trust Fund, as appropriate.
23		Except as otherwise provided in this paragraph, the
24		Department shall forthwith pay over to the State Treasurer, ex
25		officio, as trustee, all taxes and penalties collected
26		hereunder for deposit into the Non-Home Rule Municipal

HB4951 Enrolled - 729 - LRB103 38094 HLH 68226 b
1		Retailers' Occupation Tax Fund. Taxes and penalties collected
2		on aviation fuel sold on or after December 1, 2019, shall be
3		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 Section 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		Municipality.
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.
18		After the monthly transfer to the STAR Bonds Revenue Fund,
19		on or before the 25th day of each calendar month, the
20		Department shall prepare and certify to the Comptroller the
21		disbursement of stated sums of money to named municipalities,
22		the municipalities to be those from which suppliers and
23		servicemen have paid taxes or penalties hereunder to the
24		Department during the second preceding calendar month. The
25		amount to be paid to each municipality shall be the amount (not
26		including credit memoranda and not including taxes and

HB4951 Enrolled - 730 - LRB103 38094 HLH 68226 b
1		penalties collected on aviation fuel sold on or after December
2		1, 2019) collected hereunder during the second preceding
3		calendar month by the Department, and not including an amount
4		equal to the amount of refunds made during the second
5		preceding calendar month by the Department on behalf of such
6		municipality, and not including any amounts that are
7		transferred to the STAR Bonds Revenue Fund, less 1.5% of the
8		remainder, which the Department shall transfer into the Tax
9		Compliance and Administration Fund. The Department, at the
10		time of each monthly disbursement to the municipalities, shall
11		prepare and certify to the State Comptroller the amount to be
12		transferred into the Tax Compliance and Administration Fund
13		under this Section. Within 10 days after receipt by the
14		Comptroller of the disbursement certification to the
15		municipalities, the Tax Compliance and Administration Fund,
16		and the General Revenue Fund, provided for in this Section to
17		be given to the Comptroller by the Department, the Comptroller
18		shall cause the orders to be drawn for the respective amounts
19		in accordance with the directions contained in the
20		certification.
21		When certifying the amount of a monthly disbursement to a
22		municipality under this Section, the Department shall increase
23		or decrease the amount by an amount necessary to offset any
24		misallocation of previous disbursements. The offset amount
25		shall be the amount erroneously disbursed within the previous
26		6 months from the time a misallocation is discovered.

HB4951 Enrolled - 731 - LRB103 38094 HLH 68226 b
1		Nothing in this Section shall be construed to authorize a
2		municipality to impose a tax upon the privilege of engaging in
3		any business which under the constitution of the United States
4		may not be made the subject of taxation by this State.
5		(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
6		101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
7		(65 ILCS 5/11-74.3-6)
8		Sec. 11-74.3-6. Business district revenue and obligations;
9		business district tax allocation fund.
10		(a) If the corporate authorities of a municipality have
11		approved a business district plan, have designated a business
12		district, and have elected to impose a tax by ordinance
13		pursuant to subsection (10) or (11) of Section 11-74.3-3, then
14		each year after the date of the approval of the ordinance but
15		terminating upon the date all business district project costs
16		and all obligations paying or reimbursing business district
17		project costs, if any, have been paid, but in no event later
18		than the dissolution date, all amounts generated by the
19		retailers' occupation tax and service occupation tax shall be
20		collected and the tax shall be enforced by the Department of
21		Revenue in the same manner as all retailers' occupation taxes
22		and service occupation taxes imposed in the municipality
23		imposing the tax and all amounts generated by the hotel
24		operators' occupation tax shall be collected and the tax shall
25		be enforced by the municipality in the same manner as all hotel

HB4951 Enrolled - 732 - LRB103 38094 HLH 68226 b
1		operators' occupation taxes imposed in the municipality
2		imposing the tax. The corporate authorities of the
3		municipality shall deposit the proceeds of the taxes imposed
4		under subsections (10) and (11) of Section 11-74.3-3 into a
5		special fund of the municipality called the "[Name of]
6		Business District Tax Allocation Fund" for the purpose of
7		paying or reimbursing business district project costs and
8		obligations incurred in the payment of those costs.
9		(b) The corporate authorities of a municipality that has
10		designated a business district under this Law may, by
11		ordinance, impose a Business District Retailers' Occupation
12		Tax upon all persons engaged in the business of selling
13		tangible personal property, other than an item of tangible
14		personal property titled or registered with an agency of this
15		State's government, at retail in the business district at a
16		rate not to exceed 1% of the gross receipts from the sales made
17		in the course of such business, to be imposed only in 0.25%
18		increments. The tax may not be imposed on tangible personal
19		property taxed at the rate of 1% under the Retailers'
20		Occupation Tax Act (or at the 0% rate imposed under this
21		amendatory Act of the 102nd General Assembly). Beginning
22		December 1, 2019 and through December 31, 2020, this tax is not
23		imposed on sales of aviation fuel unless the tax revenue is
24		expended for airport-related purposes. If the District does
25		not have an airport-related purpose to which it dedicates
26		aviation fuel tax revenue, then aviation fuel is excluded from

HB4951 Enrolled - 733 - LRB103 38094 HLH 68226 b
1		the tax. Each municipality must comply with the certification
2		requirements for airport-related purposes under Section 2-22
3		of the Retailers' Occupation Tax Act. For purposes of this
4		Section, "airport-related purposes" has the meaning ascribed
5		in Section 6z-20.2 of the State Finance Act. Beginning January
6		1, 2021, this tax is not imposed on sales of aviation fuel for
7		so long as the revenue use requirements of 49 U.S.C. 47107(b)
8		and 49 U.S.C. 47133 are binding on the District.
9		The tax imposed under this subsection and all civil
10		penalties that may be assessed as an incident thereof shall be
11		collected and enforced by the Department of Revenue. The
12		certificate of registration that is issued by the Department
13		to a retailer under the Retailers' Occupation Tax Act shall
14		permit the retailer to engage in a business that is taxable
15		under any ordinance or resolution enacted pursuant to this
16		subsection without registering separately with the Department
17		under such ordinance or resolution or under this subsection.
18		The Department of Revenue shall have full power to administer
19		and enforce this subsection; to collect all taxes and
20		penalties due under this subsection in the manner hereinafter
21		provided; and to determine all rights to credit memoranda
22		arising on account of the erroneous payment of tax or penalty
23		under this subsection. In the administration of, and
24		compliance with, this subsection, the Department and persons
25		who are subject to this subsection shall have the same rights,
26		remedies, privileges, immunities, powers and duties, and be

HB4951 Enrolled - 734 - LRB103 38094 HLH 68226 b
1		subject to the same conditions, restrictions, limitations,
2		penalties, exclusions, exemptions, and definitions of terms
3		and employ the same modes of procedure, as are prescribed in
4		Sections 1, 1a through 1o, 2 through 2-65 (in respect to all
5		provisions therein other than the State rate of tax), 2c
6		through 2h, 3 (except as to the disposition of taxes and
7		penalties collected, and except that the retailer's discount
8		is not allowed for taxes paid on aviation fuel that are subject
9		to the revenue use requirements of 49 U.S.C. 47107(b) and 49
10		U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6,
11		6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the Retailers'
12		Occupation Tax Act and all provisions of the Uniform Penalty
13		and Interest Act, as fully as if those provisions were set
14		forth herein.
15		Persons subject to any tax imposed under this subsection
16		may reimburse themselves for their seller's tax liability
17		under this subsection by separately stating the tax as an
18		additional charge, which charge may be stated in combination,
19		in a single amount, with State taxes that sellers are required
20		to collect under the Use Tax Act, in accordance with such
21		bracket schedules as the Department may prescribe.
22		Whenever the Department determines that a refund should be
23		made under this subsection to a claimant instead of issuing a
24		credit memorandum, the Department shall notify the State
25		Comptroller, who shall cause the order to be drawn for the
26		amount specified and to the person named in the notification

HB4951 Enrolled - 735 - LRB103 38094 HLH 68226 b
1		from the Department. The refund shall be paid by the State
2		Treasurer out of the business district retailers' occupation
3		tax fund or the Local Government Aviation Trust Fund, as
4		appropriate.
5		Except as otherwise provided in this paragraph, the
6		Department shall immediately pay over to the State Treasurer,
7		ex officio, as trustee, all taxes, penalties, and interest
8		collected under this subsection for deposit into the business
9		district retailers' occupation tax fund. Taxes and penalties
10		collected on aviation fuel sold on or after December 1, 2019,
11		shall be immediately paid over by the Department to the State
12		Treasurer, ex officio, as trustee, for deposit into the Local
13		Government Aviation Trust Fund. The Department shall only pay
14		moneys into the Local Government Aviation Trust Fund under
15		this Section for so long as the revenue use requirements of 49
16		U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
17		District.
18		As soon as possible after the first day of each month,
19		beginning January 1, 2011, upon certification of the
20		Department of Revenue, the Comptroller shall order
21		transferred, and the Treasurer shall transfer, to the STAR
22		Bonds Revenue Fund the local sales tax increment, as defined
23		in the Innovation Development and Economy Act, collected under
24		this subsection during the second preceding calendar month for
25		sales within a STAR bond district.
26		After the monthly transfer to the STAR Bonds Revenue Fund,

HB4951 Enrolled - 736 - LRB103 38094 HLH 68226 b
1		on or before the 25th day of each calendar month, the
2		Department shall prepare and certify to the Comptroller the
3		disbursement of stated sums of money to named municipalities
4		from the business district retailers' occupation tax fund, the
5		municipalities to be those from which retailers have paid
6		taxes or penalties under this subsection to the Department
7		during the second preceding calendar month. The amount to be
8		paid to each municipality shall be the amount (not including
9		credit memoranda and not including taxes and penalties
10		collected on aviation fuel sold on or after December 1, 2019)
11		collected under this subsection during the second preceding
12		calendar month by the Department plus an amount the Department
13		determines is necessary to offset any amounts that were
14		erroneously paid to a different taxing body, and not including
15		an amount equal to the amount of refunds made during the second
16		preceding calendar month by the Department, less 2% of that
17		amount (except the amount collected on aviation fuel sold on
18		or after December 1, 2019), which shall be deposited into the
19		Tax Compliance and Administration Fund and shall be used by
20		the Department, subject to appropriation, to cover the costs
21		of the Department in administering and enforcing the
22		provisions of this subsection, on behalf of such municipality,
23		and not including any amount that the Department determines is
24		necessary to offset any amounts that were payable to a
25		different taxing body but were erroneously paid to the
26		municipality, and not including any amounts that are

HB4951 Enrolled - 737 - LRB103 38094 HLH 68226 b
1		transferred to the STAR Bonds Revenue Fund. Within 10 days
2		after receipt by the Comptroller of the disbursement
3		certification to the municipalities provided for in this
4		subsection to be given to the Comptroller by the Department,
5		the Comptroller shall cause the orders to be drawn for the
6		respective amounts in accordance with the directions contained
7		in the certification. The proceeds of the tax paid to
8		municipalities under this subsection shall be deposited into
9		the Business District Tax Allocation Fund by the municipality.
10		An ordinance imposing or discontinuing the tax under this
11		subsection or effecting a change in the rate thereof shall
12		either (i) be adopted and a certified copy thereof filed with
13		the Department on or before the first day of April, whereupon
14		the Department, if all other requirements of this subsection
15		are met, shall proceed to administer and enforce this
16		subsection as of the first day of July next following the
17		adoption and filing; or (ii) be adopted and a certified copy
18		thereof filed with the Department on or before the first day of
19		October, whereupon, if all other requirements of this
20		subsection are met, the Department shall proceed to administer
21		and enforce this subsection as of the first day of January next
22		following the adoption and filing.
23		The Department of Revenue shall not administer or enforce
24		an ordinance imposing, discontinuing, or changing the rate of
25		the tax under this subsection, until the municipality also
26		provides, in the manner prescribed by the Department, the

HB4951 Enrolled - 738 - LRB103 38094 HLH 68226 b
1		boundaries of the business district and each address in the
2		business district in such a way that the Department can
3		determine by its address whether a business is located in the
4		business district. The municipality must provide this boundary
5		and address information to the Department on or before April 1
6		for administration and enforcement of the tax under this
7		subsection by the Department beginning on the following July 1
8		and on or before October 1 for administration and enforcement
9		of the tax under this subsection by the Department beginning
10		on the following January 1. The Department of Revenue shall
11		not administer or enforce any change made to the boundaries of
12		a business district or address change, addition, or deletion
13		until the municipality reports the boundary change or address
14		change, addition, or deletion to the Department in the manner
15		prescribed by the Department. The municipality must provide
16		this boundary change information or address change, addition,
17		or deletion to the Department on or before April 1 for
18		administration and enforcement by the Department of the change
19		beginning on the following July 1 and on or before October 1
20		for administration and enforcement by the Department of the
21		change beginning on the following January 1. The retailers in
22		the business district shall be responsible for charging the
23		tax imposed under this subsection. If a retailer is
24		incorrectly included or excluded from the list of those
25		required to collect the tax under this subsection, both the
26		Department of Revenue and the retailer shall be held harmless

HB4951 Enrolled - 739 - LRB103 38094 HLH 68226 b
1		if they reasonably relied on information provided by the
2		municipality.
3		A municipality that imposes the tax under this subsection
4		must submit to the Department of Revenue any other information
5		as the Department may require for the administration and
6		enforcement of the tax.
7		When certifying the amount of a monthly disbursement to a
8		municipality under this subsection, the Department shall
9		increase or decrease the amount by an amount necessary to
10		offset any misallocation of previous disbursements. The offset
11		amount shall be the amount erroneously disbursed within the
12		previous 6 months from the time a misallocation is discovered.
13		Nothing in this subsection shall be construed to authorize
14		the 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		If a tax is imposed under this subsection (b), a tax shall
19		also be imposed under subsection (c) of this Section.
20		(c) If a tax has been imposed under subsection (b), a
21		Business District Service Occupation Tax shall also be imposed
22		upon all persons engaged, in the business district, in the
23		business of making sales of service, who, as an incident to
24		making those sales of service, transfer tangible personal
25		property within the business district, either in the form of
26		tangible personal property or in the form of real estate as an

HB4951 Enrolled - 740 - LRB103 38094 HLH 68226 b
1		incident to a sale of service. The tax shall be imposed at the
2		same rate as the tax imposed in subsection (b) and shall not
3		exceed 1% of the selling price of tangible personal property
4		so transferred within the business district, to be imposed
5		only in 0.25% increments. The tax may not be imposed on
6		tangible personal property taxed at the 1% rate under the
7		Service Occupation Tax Act (or at the 0% rate imposed under
8		this amendatory Act of the 102nd General Assembly). Beginning
9		December 1, 2019, this tax is not imposed on sales of aviation
10		fuel unless the tax revenue is expended for airport-related
11		purposes. If the District does not have an airport-related
12		purpose to which it dedicates aviation fuel tax revenue, then
13		aviation fuel is excluded from the tax. Each municipality must
14		comply with the certification requirements for airport-related
15		purposes under Section 2-22 of the Retailers' Occupation Tax
16		Act. For purposes of this Act, "airport-related purposes" has
17		the meaning ascribed in Section 6z-20.2 of the State Finance
18		Act. Beginning January 1, 2021, this tax is not imposed on
19		sales of aviation fuel for so long as the revenue use
20		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
21		binding on the District.
22		The tax imposed under this subsection and all civil
23		penalties that may be assessed as an incident thereof shall be
24		collected and enforced by the Department of Revenue. The
25		certificate of registration which is issued by the Department
26		to a retailer under the Retailers' Occupation Tax Act or under

HB4951 Enrolled - 741 - LRB103 38094 HLH 68226 b
1		the Service Occupation Tax Act shall permit such registrant to
2		engage in a business which is taxable under any ordinance or
3		resolution enacted pursuant to this subsection without
4		registering separately with the Department under such
5		ordinance or resolution or under this subsection. The
6		Department of Revenue shall have full power to administer and
7		enforce this subsection; to collect all taxes and penalties
8		due under this subsection; to dispose of taxes and penalties
9		so collected in the manner hereinafter provided; and to
10		determine all rights to credit memoranda arising on account of
11		the erroneous payment of tax or penalty under this subsection.
12		In the administration of, and compliance with this subsection,
13		the Department and persons who are subject to this subsection
14		shall have the same rights, remedies, privileges, immunities,
15		powers and duties, and be subject to the same conditions,
16		restrictions, limitations, penalties, exclusions, exemptions,
17		and definitions of terms and employ the same modes of
18		procedure as are prescribed in Sections 2, 2a through 2d, 3
19		through 3-50 (in respect to all provisions therein other than
20		the State rate of tax), 4 (except that the reference to the
21		State shall be to the business district), 5, 7, 8 (except that
22		the jurisdiction to which the tax shall be a debt to the extent
23		indicated in that Section 8 shall be the municipality), 9
24		(except as to the disposition of taxes and penalties
25		collected, and except that the returned merchandise credit for
26		this tax may not be taken against any State tax, and except

HB4951 Enrolled - 742 - LRB103 38094 HLH 68226 b
1		that the retailer's discount is not allowed for taxes paid on
2		aviation fuel that are subject to the revenue use requirements
3		of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except
4		the reference therein to Section 2b of the Retailers'
5		Occupation Tax Act), 13 (except that any reference to the
6		State shall mean the municipality), the first paragraph of
7		Section 15, and Sections 16, 17, 18, 19 and 20 of the Service
8		Occupation Tax Act and all provisions of the Uniform Penalty
9		and Interest Act, as fully as if those provisions were set
10		forth herein.
11		Persons subject to any tax imposed under the authority
12		granted in this subsection may reimburse themselves for their
13		serviceman's tax liability hereunder by separately stating the
14		tax as an additional charge, which charge may be stated in
15		combination, in a single amount, with State tax that
16		servicemen are authorized to collect under the Service Use Tax
17		Act, in accordance with such bracket schedules as the
18		Department may prescribe.
19		Whenever the Department determines that a refund should be
20		made under this subsection to a claimant instead of issuing
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 such
24		notification from the Department. Such refund shall be paid by
25		the State Treasurer out of the business district retailers'
26		occupation tax fund or the Local Government Aviation Trust

HB4951 Enrolled - 743 - LRB103 38094 HLH 68226 b
1		Fund, as appropriate.
2		Except as otherwise provided in this paragraph, the
3		Department shall forthwith pay over to the State Treasurer,
4		ex-officio, as trustee, all taxes, penalties, and interest
5		collected under this subsection for deposit into the business
6		district retailers' occupation tax fund. Taxes and penalties
7		collected on aviation fuel sold on or after December 1, 2019,
8		shall be immediately paid over by the Department to the State
9		Treasurer, ex officio, as trustee, for deposit into the Local
10		Government Aviation Trust Fund. The Department shall only pay
11		moneys into the Local Government Aviation Trust Fund under
12		this Section for so long as the revenue use requirements of 49
13		U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
14		District.
15		As soon as possible after the first day of each month,
16		beginning January 1, 2011, upon certification of the
17		Department of Revenue, the Comptroller shall order
18		transferred, and the Treasurer shall transfer, to the STAR
19		Bonds Revenue Fund the local sales tax increment, as defined
20		in the Innovation Development and Economy Act, collected under
21		this subsection during the second preceding calendar month for
22		sales within a STAR bond district.
23		After the monthly transfer to the STAR Bonds Revenue Fund,
24		on or before the 25th day of each calendar month, the
25		Department shall prepare and certify to the Comptroller the
26		disbursement of stated sums of money to named municipalities

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1		from the business district retailers' occupation tax fund, the
2		municipalities to be those from which suppliers and servicemen
3		have paid taxes or penalties under this subsection to the
4		Department during the second preceding calendar month. The
5		amount to be paid to each municipality shall be the amount (not
6		including credit memoranda and not including taxes and
7		penalties collected on aviation fuel sold on or after December
8		1, 2019) collected under this subsection during the second
9		preceding calendar month by the Department, less 2% of that
10		amount (except the amount collected on aviation fuel sold on
11		or after December 1, 2019), which shall be deposited into the
12		Tax Compliance and Administration Fund and shall be used by
13		the Department, subject to appropriation, to cover the costs
14		of the Department in administering and enforcing the
15		provisions of this subsection, and not including an amount
16		equal to the amount of refunds made during the second
17		preceding calendar month by the Department on behalf of such
18		municipality, and not including any amounts that are
19		transferred to the STAR Bonds Revenue Fund. Within 10 days
20		after receipt, by the Comptroller, of the disbursement
21		certification to the municipalities, provided for in this
22		subsection to be given to the Comptroller by the Department,
23		the Comptroller shall cause the orders to be drawn for the
24		respective amounts in accordance with the directions contained
25		in such certification. The proceeds of the tax paid to
26		municipalities under this subsection shall be deposited into

HB4951 Enrolled - 745 - LRB103 38094 HLH 68226 b
1		the Business District Tax Allocation Fund by the municipality.
2		An ordinance imposing or discontinuing the tax under this
3		subsection or effecting a change in the rate thereof shall
4		either (i) be adopted and a certified copy thereof filed with
5		the Department on or before the first day of April, whereupon
6		the Department, if all other requirements of this subsection
7		are met, shall proceed to administer and enforce this
8		subsection as of the first day of July next following the
9		adoption and filing; or (ii) be adopted and a certified copy
10		thereof filed with the Department on or before the first day of
11		October, whereupon, if all other conditions of this subsection
12		are met, the Department shall proceed to administer and
13		enforce this subsection as of the first day of January next
14		following the adoption and filing.
15		The Department of Revenue shall not administer or enforce
16		an ordinance imposing, discontinuing, or changing the rate of
17		the tax under this subsection, until the municipality also
18		provides, in the manner prescribed by the Department, the
19		boundaries of the business district in such a way that the
20		Department can determine by its address whether a business is
21		located in the business district. The municipality must
22		provide this boundary and address information to the
23		Department on or before April 1 for administration and
24		enforcement of the tax under this subsection by the Department
25		beginning on the following July 1 and on or before October 1
26		for administration and enforcement of the tax under this

HB4951 Enrolled - 746 - LRB103 38094 HLH 68226 b
1		subsection by the Department beginning on the following
2		January 1. The Department of Revenue shall not administer or
3		enforce any change made to the boundaries of a business
4		district or address change, addition, or deletion until the
5		municipality reports the boundary change or address change,
6		addition, or deletion to the Department in the manner
7		prescribed by the Department. The municipality must provide
8		this boundary change information or address change, addition,
9		or deletion to the Department on or before April 1 for
10		administration and enforcement by the Department of the change
11		beginning on the following July 1 and on or before October 1
12		for administration and enforcement by the Department of the
13		change beginning on the following January 1. The retailers in
14		the business district shall be responsible for charging the
15		tax imposed under this subsection. If a retailer is
16		incorrectly included or excluded from the list of those
17		required to collect the tax under this subsection, both the
18		Department of Revenue and the retailer shall be held harmless
19		if they reasonably relied on information provided by the
20		municipality.
21		A municipality that imposes the tax under this subsection
22		must submit to the Department of Revenue any other information
23		as the Department may require for the administration and
24		enforcement of the tax.
25		Nothing in this subsection shall be construed to authorize
26		the municipality to impose a tax upon the privilege of

HB4951 Enrolled - 747 - LRB103 38094 HLH 68226 b
1		engaging in any business which under the Constitution of the
2		United States may not be made the subject of taxation by the
3		State.
4		If a tax is imposed under this subsection (c), a tax shall
5		also be imposed under subsection (b) of this Section.
6		(c-5) If, on January 1, 2025, a unit of local government
7		has in effect a tax under this Section, or if, after January 1,
8		2025, a unit of local government imposes a tax under this
9		Section, then that tax applies to leases of tangible personal
10		property in effect, entered into, or renewed on or after that
11		date in the same manner as the tax under this Section and in
12		accordance with the changes made by this amendatory Act of the
13		103rd General Assembly.
14		(d) By ordinance, a municipality that has designated a
15		business district under this Law may impose an occupation tax
16		upon all persons engaged in the business district in the
17		business of renting, leasing, or letting rooms in a hotel, as
18		defined in the Hotel Operators' Occupation Tax Act, at a rate
19		not to exceed 1% of the gross rental receipts from the renting,
20		leasing, or letting of hotel rooms within the business
21		district, to be imposed only in 0.25% increments, excluding,
22		however, from gross rental receipts the proceeds of renting,
23		leasing, or letting to permanent residents of a hotel, as
24		defined in the Hotel Operators' Occupation Tax Act, and
25		proceeds from the tax imposed under subsection (c) of Section
26		13 of the Metropolitan Pier and Exposition Authority Act.

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1		The tax imposed by the municipality under this subsection
2		and all civil penalties that may be assessed as an incident to
3		that tax shall be collected and enforced by the municipality
4		imposing the tax. The municipality shall have full power to
5		administer and enforce this subsection, to collect all taxes
6		and penalties due under this subsection, to dispose of taxes
7		and penalties so collected in the manner provided in this
8		subsection, and to determine all rights to credit memoranda
9		arising on account of the erroneous payment of tax or penalty
10		under this subsection. In the administration of and compliance
11		with this subsection, the municipality and persons who are
12		subject to this subsection shall have the same rights,
13		remedies, privileges, immunities, powers, and duties, shall be
14		subject to the same conditions, restrictions, limitations,
15		penalties, and definitions of terms, and shall employ the same
16		modes of procedure as are employed with respect to a tax
17		adopted by the municipality under Section 8-3-14 of this Code.
18		Persons subject to any tax imposed under the authority
19		granted in this subsection may reimburse themselves for their
20		tax liability for that tax by separately stating that tax as an
21		additional charge, which charge may be stated in combination,
22		in a single amount, with State taxes imposed under the Hotel
23		Operators' Occupation Tax Act, and with any other tax.
24		Nothing in this subsection shall be construed to authorize
25		a municipality to impose a tax upon the privilege of engaging
26		in any business which under the Constitution of the United

HB4951 Enrolled - 749 - LRB103 38094 HLH 68226 b
1		States may not be made the subject of taxation by this State.
2		The proceeds of the tax imposed under this subsection
3		shall be deposited into the Business District Tax Allocation
4		Fund.
5		(e) Obligations secured by the Business District Tax
6		Allocation Fund may be issued to provide for the payment or
7		reimbursement of business district project costs. Those
8		obligations, when so issued, shall be retired in the manner
9		provided in the ordinance authorizing the issuance of those
10		obligations by the receipts of taxes imposed pursuant to
11		subsections (10) and (11) of Section 11-74.3-3 and by other
12		revenue designated or pledged by the municipality. A
13		municipality may in the ordinance pledge, for any period of
14		time up to and including the dissolution date, all or any part
15		of the funds in and to be deposited in the Business District
16		Tax Allocation Fund to the payment of business district
17		project costs and obligations. Whenever a municipality pledges
18		all of the funds to the credit of a business district tax
19		allocation fund to secure obligations issued or to be issued
20		to pay or reimburse business district project costs, the
21		municipality may specifically provide that funds remaining to
22		the credit of such business district tax allocation fund after
23		the payment of such obligations shall be accounted for
24		annually and shall be deemed to be "surplus" funds, and such
25		"surplus" funds shall be expended by the municipality for any
26		business district project cost as approved in the business

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1		district plan. Whenever a municipality pledges less than all
2		of the monies to the credit of a business district tax
3		allocation fund to secure obligations issued or to be issued
4		to pay or reimburse business district project costs, the
5		municipality shall provide that monies to the credit of the
6		business district tax allocation fund and not subject to such
7		pledge or otherwise encumbered or required for payment of
8		contractual obligations for specific business district project
9		costs shall be calculated annually and shall be deemed to be
10		"surplus" funds, and such "surplus" funds shall be expended by
11		the municipality for any business district project cost as
12		approved in the business district plan.
13		No obligation issued pursuant to this Law and secured by a
14		pledge of all or any portion of any revenues received or to be
15		received by the municipality from the imposition of taxes
16		pursuant to subsection (10) of Section 11-74.3-3, shall be
17		deemed to constitute an economic incentive agreement under
18		Section 8-11-20, notwithstanding the fact that such pledge
19		provides for the sharing, rebate, or payment of retailers'
20		occupation taxes or service occupation taxes imposed pursuant
21		to subsection (10) of Section 11-74.3-3 and received or to be
22		received by the municipality from the development or
23		redevelopment of properties in the business district.
24		Without limiting the foregoing in this Section, the
25		municipality may further secure obligations secured by the
26		business district tax allocation fund with a pledge, for a

HB4951 Enrolled - 751 - LRB103 38094 HLH 68226 b
1		period not greater than the term of the obligations and in any
2		case not longer than the dissolution date, of any part or any
3		combination of the following: (i) net revenues of all or part
4		of any business district project; (ii) taxes levied or imposed
5		by the municipality on any or all property in the
6		municipality, including, specifically, taxes levied or imposed
7		by the municipality in a special service area pursuant to the
8		Special Service Area Tax Law; (iii) the full faith and credit
9		of the municipality; (iv) a mortgage on part or all of the
10		business district project; or (v) any other taxes or
11		anticipated receipts that the municipality may lawfully
12		pledge.
13		Such obligations may be issued in one or more series, bear
14		such date or dates, become due at such time or times as therein
15		provided, but in any case not later than (i) 20 years after the
16		date of issue or (ii) the dissolution date, whichever is
17		earlier, bear interest payable at such intervals and at such
18		rate or rates as set forth therein, except as may be limited by
19		applicable law, which rate or rates may be fixed or variable,
20		be in such denominations, be in such form, either coupon,
21		registered, or book-entry, carry such conversion, registration
22		and exchange privileges, be subject to defeasance upon such
23		terms, have such rank or priority, be executed in such manner,
24		be payable in such medium or payment at such place or places
25		within or without the State, make provision for a corporate
26		trustee within or without the State with respect to such

HB4951 Enrolled - 752 - LRB103 38094 HLH 68226 b
1		obligations, prescribe the rights, powers, and duties thereof
2		to be exercised for the benefit of the municipality and the
3		benefit of the owners of such obligations, provide for the
4		holding in trust, investment, and use of moneys, funds, and
5		accounts held under an ordinance, provide for assignment of
6		and direct payment of the moneys to pay such obligations or to
7		be deposited into such funds or accounts directly to such
8		trustee, be subject to such terms of redemption with or
9		without premium, and be sold at such price, all as the
10		corporate authorities shall determine. No referendum approval
11		of the electors shall be required as a condition to the
12		issuance of obligations pursuant to this Law except as
13		provided in this Section.
14		In the event the municipality authorizes the issuance of
15		obligations pursuant to the authority of this Law secured by
16		the full faith and credit of the municipality, or pledges ad
17		valorem taxes pursuant to this subsection, which obligations
18		are other than obligations which may be issued under home rule
19		powers provided by Section 6 of Article VII of the Illinois
20		Constitution or which ad valorem taxes are other than ad
21		valorem taxes which may be pledged under home rule powers
22		provided by Section 6 of Article VII of the Illinois
23		Constitution or which are levied in a special service area
24		pursuant to the Special Service Area Tax Law, the ordinance
25		authorizing the issuance of those obligations or pledging
26		those taxes shall be published within 10 days after the

HB4951 Enrolled - 753 - LRB103 38094 HLH 68226 b
1		ordinance has been adopted, in a newspaper having a general
2		circulation within the municipality. The publication of the
3		ordinance shall be accompanied by a notice of (i) the specific
4		number of voters required to sign a petition requesting the
5		question of the issuance of the obligations or pledging such
6		ad valorem taxes to be submitted to the electors; (ii) the time
7		within which the petition must be filed; and (iii) the date of
8		the prospective referendum. The municipal clerk shall provide
9		a petition form to any individual requesting one.
10		If no petition is filed with the municipal clerk, as
11		hereinafter provided in this Section, within 21 days after the
12		publication of the ordinance, the ordinance shall be in
13		effect. However, if within that 21-day period a petition is
14		filed with the municipal clerk, signed by electors numbering
15		not less than 15% of the number of electors voting for the
16		mayor or president at the last general municipal election,
17		asking that the question of issuing obligations using full
18		faith and credit of the municipality as security for the cost
19		of paying or reimbursing business district project costs, or
20		of pledging such ad valorem taxes for the payment of those
21		obligations, or both, be submitted to the electors of the
22		municipality, the municipality shall not be authorized to
23		issue obligations of the municipality using the full faith and
24		credit of the municipality as security or pledging such ad
25		valorem taxes for the payment of those obligations, or both,
26		until the proposition has been submitted to and approved by a

HB4951 Enrolled - 754 - LRB103 38094 HLH 68226 b
1		majority of the voters voting on the proposition at a
2		regularly scheduled election. The municipality shall certify
3		the proposition to the proper election authorities for
4		submission in accordance with the general election law.
5		The ordinance authorizing the obligations may provide that
6		the obligations shall contain a recital that they are issued
7		pursuant to this Law, which recital shall be conclusive
8		evidence of their validity and of the regularity of their
9		issuance.
10		In the event the municipality authorizes issuance of
11		obligations pursuant to this Law secured by the full faith and
12		credit of the municipality, the ordinance authorizing the
13		obligations may provide for the levy and collection of a
14		direct annual tax upon all taxable property within the
15		municipality sufficient to pay the principal thereof and
16		interest thereon as it matures, which levy may be in addition
17		to and exclusive of the maximum of all other taxes authorized
18		to be levied by the municipality, which levy, however, shall
19		be abated to the extent that monies from other sources are
20		available for payment of the obligations and the municipality
21		certifies the amount of those monies available to the county
22		clerk.
23		A certified copy of the ordinance shall be filed with the
24		county clerk of each county in which any portion of the
25		municipality is situated, and shall constitute the authority
26		for the extension and collection of the taxes to be deposited

HB4951 Enrolled - 755 - LRB103 38094 HLH 68226 b
1		in the business district tax allocation fund.
2		A municipality may also issue its obligations to refund,
3		in whole or in part, obligations theretofore issued by the
4		municipality under the authority of this Law, whether at or
5		prior to maturity. However, the last maturity of the refunding
6		obligations shall not be expressed to mature later than the
7		dissolution date.
8		In the event a municipality issues obligations under home
9		rule powers or other legislative authority, the proceeds of
10		which are pledged to pay or reimburse business district
11		project costs, the municipality may, if it has followed the
12		procedures in conformance with this Law, retire those
13		obligations from funds in the business district tax allocation
14		fund in amounts and in such manner as if those obligations had
15		been issued pursuant to the provisions of this Law.
16		No obligations issued pursuant to this Law shall be
17		regarded as indebtedness of the municipality issuing those
18		obligations or any other taxing district for the purpose of
19		any limitation imposed by law.
20		Obligations issued pursuant to this Law shall not be
21		subject to the provisions of the Bond Authorization Act.
22		(f) When business district project costs, including,
23		without limitation, all obligations paying or reimbursing
24		business district project costs have been paid, any surplus
25		funds then remaining in the Business District Tax Allocation
26		Fund shall be distributed to the municipal treasurer for

HB4951 Enrolled - 756 - LRB103 38094 HLH 68226 b
1		deposit into the general corporate fund of the municipality.
2		Upon payment of all business district project costs and
3		retirement of all obligations paying or reimbursing business
4		district project costs, but in no event more than 23 years
5		after the date of adoption of the ordinance imposing taxes
6		pursuant to subsection (10) or (11) of Section 11-74.3-3, the
7		municipality shall adopt an ordinance immediately rescinding
8		the taxes imposed pursuant to subsection (10) or (11) of
9		Section 11-74.3-3.
10		(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19;
11		102-700, eff. 4-19-22.)
12		Section 75-40. The Civic Center Code is amended by
13		changing Section 245-12 as follows:
14		(70 ILCS 200/245-12)
15		Sec. 245-12. Use and occupation taxes.
16		(a) The Authority may adopt a resolution that authorizes a
17		referendum on the question of whether the Authority shall be
18		authorized to impose a retailers' occupation tax, a service
19		occupation tax, and a use tax in one-quarter percent
20		increments at a rate not to exceed 1%. The Authority shall
21		certify the question to the proper election authorities who
22		shall submit the question to the voters of the metropolitan
23		area at the next regularly scheduled election in accordance
24		with the general election law. The question shall be in

HB4951 Enrolled - 757 - LRB103 38094 HLH 68226 b
1		substantially the following form:
2		"Shall the Salem Civic Center Authority be authorized to
3		impose a retailers' occupation tax, a service occupation
4		tax, and a use tax at the rate of (rate) for the sole
5		purpose of obtaining funds for the support, construction,
6		maintenance, or financing of a facility of the Authority?"
7		Votes shall be recorded as "yes" or "no".
8		If a majority of all votes cast on the proposition are in
9		favor of the proposition, the Authority is authorized to
10		impose the tax.
11		(b) The Authority shall impose the retailers' occupation
12		tax upon all persons engaged in the business of selling
13		tangible personal property at retail in the metropolitan area,
14		at the rate approved by referendum, on the gross receipts from
15		the sales made in the course of such business within the
16		metropolitan area. Beginning December 1, 2019 and through
17		December 31, 2020, this tax is not imposed on sales of aviation
18		fuel unless the tax revenue is expended for airport-related
19		purposes. If the Authority does not have an airport-related
20		purpose to which it dedicates aviation fuel tax revenue, then
21		aviation fuel is excluded from the tax. The Authority must
22		comply with the certification requirements for airport-related
23		purposes under Section 2-22 of the Retailers' Occupation Tax
24		Act. For purposes of this Section, "airport-related purposes"
25		has the meaning ascribed in Section 6z-20.2 of the State
26		Finance Act. Beginning January 1, 2021, this tax is not

HB4951 Enrolled - 758 - LRB103 38094 HLH 68226 b
1		imposed on sales of aviation fuel for so long as the revenue
2		use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
3		binding on the Authority.
4		The tax imposed under this Section and all civil penalties
5		that may be assessed as an incident thereof shall be collected
6		and enforced by the Department of Revenue. The Department has
7		full power to administer and enforce this Section; to collect
8		all taxes and penalties so collected in the manner provided in
9		this Section; and to determine all rights to credit memoranda
10		arising on account of the erroneous payment of tax or penalty
11		hereunder. In the administration of, and compliance with, this
12		Section, the Department and persons who are subject to this
13		Section shall (i) have the same rights, remedies, privileges,
14		immunities, powers and duties, (ii) be subject to the same
15		conditions, restrictions, limitations, penalties, exclusions,
16		exemptions, and definitions of terms, and (iii) employ the
17		same modes of procedure as are prescribed in Sections 1, 1a,
18		1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10
19		(in respect to all provisions therein other than the State
20		rate of tax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except as
21		to the disposition of taxes and penalties collected and
22		provisions related to quarter monthly payments, and except
23		that the retailer's discount is not allowed for taxes paid on
24		aviation fuel that are subject to the revenue use requirements
25		of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
26		5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,

HB4951 Enrolled - 759 - LRB103 38094 HLH 68226 b
1		11a, 12, and 13 of the Retailers' Occupation Tax Act and
2		Section 3-7 of the Uniform Penalty and Interest Act, as fully
3		as if those provisions were set forth in this subsection.
4		Persons subject to any tax imposed under this subsection
5		may reimburse themselves for their seller's tax liability by
6		separately stating the tax as an additional charge, which
7		charge may be stated in combination, in a single amount, with
8		State taxes that sellers are required to collect, in
9		accordance with such bracket schedules as the Department may
10		prescribe.
11		Whenever the Department determines that a refund should be
12		made under this subsection to a claimant instead of issuing a
13		credit memorandum, the Department shall notify the State
14		Comptroller, who shall cause the warrant to be drawn for the
15		amount specified, and to the person named, in the notification
16		from the Department. The refund shall be paid by the State
17		Treasurer out of the tax fund referenced under paragraph (g)
18		of this Section or the Local Government Aviation Trust Fund,
19		as appropriate.
20		If a tax is imposed under this subsection (b), a tax shall
21		also be imposed at the same rate under subsections (c) and (d)
22		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

HB4951 Enrolled - 760 - LRB103 38094 HLH 68226 b
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		Nothing in this Section shall be construed to authorize
7		the Authority to impose a tax upon the privilege of engaging in
8		any business which under the Constitution of the United States
9		may not be made the subject of taxation by this State.
10		(c) If a tax has been imposed under subsection (b), a
11		service occupation tax shall also be imposed at the same rate
12		upon all persons engaged, in the metropolitan area, 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 metropolitan area as an incident to a sale
16		of service. The tax imposed under this subsection and all
17		civil penalties that may be assessed as an incident thereof
18		shall be collected and enforced by the Department of Revenue.
19		Beginning December 1, 2019 and through December 31, 2020,
20		this tax is not imposed on sales of aviation fuel unless the
21		tax revenue is expended for airport-related purposes. If the
22		Authority does not have an airport-related purpose to which it
23		dedicates aviation fuel tax revenue, then aviation fuel is
24		excluded from the tax. The Authority must comply with the
25		certification requirements for airport-related purposes under
26		Section 2-22 of the Retailers' Occupation Tax Act. Beginning

HB4951 Enrolled - 761 - LRB103 38094 HLH 68226 b
1		January 1, 2021, this tax is not imposed on sales of aviation
2		fuel for so long as the revenue use requirements of 49 U.S.C.
3		47107(b) and 49 U.S.C. 47133 are binding on the Authority.
4		The Department has full power to administer and enforce
5		this paragraph; to collect all taxes and penalties due
6		hereunder; to dispose of taxes and penalties so collected in
7		the manner hereinafter provided; and to determine all rights
8		to credit memoranda arising on account of the erroneous
9		payment of tax or penalty hereunder. In the administration of,
10		and compliance with this paragraph, the Department and persons
11		who are subject to this paragraph shall (i) have the same
12		rights, remedies, privileges, immunities, powers, and duties,
13		(ii) be subject to the same conditions, restrictions,
14		limitations, penalties, exclusions, exemptions, and
15		definitions of terms, and (iii) employ the same modes of
16		procedure as are prescribed in Sections 2 (except that the
17		reference to State in the definition of supplier maintaining a
18		place of business in this State shall mean the metropolitan
19		area), 2a, 2b, 3 through 3-55 (in respect to all provisions
20		therein other than the State rate of tax), 4 (except that the
21		reference to the State shall be to the Authority), 5, 7, 8
22		(except that the jurisdiction to which the tax shall be a debt
23		to the extent indicated in that Section 8 shall be the
24		Authority), 9 (except as to the disposition of taxes and
25		penalties collected, and except that the returned merchandise
26		credit for this tax may not be taken against any State tax, and

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1		except that the retailer's discount is not allowed for taxes
2		paid on aviation fuel that are subject to the revenue use
3		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 11,
4		12 (except the reference therein to Section 2b of the
5		Retailers' Occupation Tax Act), 13 (except that any reference
6		to the State shall mean the Authority), 15, 16, 17, 18, 19 and
7		20 of the Service Occupation Tax Act and Section 3-7 of the
8		Uniform Penalty and Interest Act, as fully as if those
9		provisions were set forth herein.
10		Persons subject to any tax imposed under the authority
11		granted in this subsection may reimburse themselves for their
12		serviceman's tax liability by separately stating the tax as an
13		additional charge, which charge may be stated in combination,
14		in a single amount, with State tax that servicemen are
15		authorized to collect under the Service Use Tax Act, in
16		accordance with such bracket schedules as the Department may
17		prescribe.
18		Whenever the Department determines that a refund should be
19		made under this subsection to a claimant instead of issuing a
20		credit memorandum, the Department shall notify the State
21		Comptroller, who shall cause the warrant to be drawn for the
22		amount specified, and to the person named, in the notification
23		from the Department. The refund shall be paid by the State
24		Treasurer out of the tax fund referenced under paragraph (g)
25		of this Section or the Local Government Aviation Trust Fund,
26		as appropriate.

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1		Nothing in this paragraph shall be construed to authorize
2		the Authority to impose a tax upon the privilege of engaging in
3		any business which under the Constitution of the United States
4		may not be made the subject of taxation by the State.
5		(c-5) If, on January 1, 2025, a unit of local government
6		has in effect a tax under this Section, or if, after January 1,
7		2025, a unit of local government imposes a tax under this
8		Section, then that tax applies to leases of tangible personal
9		property in effect, entered into, or renewed on or after that
10		date in the same manner as the tax under this Section and in
11		accordance with the changes made by this amendatory Act of the
12		103rd General Assembly.
13		(d) If a tax has been imposed under subsection (b), a use
14		tax shall also be imposed at the same rate upon the privilege
15		of using, in the metropolitan area, any item of tangible
16		personal property that is purchased outside the metropolitan
17		area at retail from a retailer, and that is titled or
18		registered at a location within the metropolitan area with an
19		agency of this State's government. "Selling price" is defined
20		as in the Use Tax Act. The tax shall be collected from persons
21		whose Illinois address for titling or registration purposes is
22		given as being in the metropolitan area. The tax shall be
23		collected by the Department of Revenue for the Authority. The
24		tax must be paid to the State, or an exemption determination
25		must be obtained from the Department of Revenue, before the
26		title or certificate of registration for the property may be

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1		issued. The tax or proof of exemption may be transmitted to the
2		Department by way of the State agency with which, or the State
3		officer with whom, the tangible personal property must be
4		titled or registered if the Department and the State agency or
5		State officer determine that this procedure will expedite the
6		processing of applications for title or registration.
7		The Department has full power to administer and enforce
8		this paragraph; to collect all taxes, penalties and interest
9		due hereunder; to dispose of taxes, penalties and interest so
10		collected in the manner hereinafter provided; and to determine
11		all rights to credit memoranda or refunds arising on account
12		of the erroneous payment of tax, penalty or interest
13		hereunder. In the administration of, and compliance with, this
14		subsection, the Department and persons who are subject to this
15		paragraph shall (i) have the same rights, remedies,
16		privileges, immunities, powers, and duties, (ii) be subject to
17		the same conditions, restrictions, limitations, penalties,
18		exclusions, exemptions, and definitions of terms, and (iii)
19		employ the same modes of procedure as are prescribed in
20		Sections 2 (except the definition of "retailer maintaining a
21		place of business in this State"), 3, 3-5, 3-10, 3-45, 3-55,
22		3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except that the jurisdiction
23		to which the tax shall be a debt to the extent indicated in
24		that Section 8 shall be the Authority), 9 (except provisions
25		relating to quarter monthly payments), 10, 11, 12, 12a, 12b,
26		13, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and Section

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1		3-7 of the Uniform Penalty and Interest Act, that are not
2		inconsistent with this paragraph, as fully as if those
3		provisions were set forth herein.
4		Whenever the Department determines that a refund should be
5		made under this subsection to a claimant instead of issuing a
6		credit memorandum, the Department shall notify the State
7		Comptroller, who shall cause the order to be drawn for the
8		amount specified, and to the person named, in the notification
9		from the Department. The refund shall be paid by the State
10		Treasurer out of the tax fund referenced under paragraph (g)
11		of this Section.
12		(e) A certificate of registration issued by the State
13		Department of Revenue to a retailer under the Retailers'
14		Occupation Tax Act or under the Service Occupation Tax Act
15		shall permit the registrant to engage in a business that is
16		taxed under the tax imposed under paragraphs (b), (c), or (d)
17		of this Section and no additional registration shall be
18		required. A certificate issued under the Use Tax Act or the
19		Service Use Tax Act shall be applicable with regard to any tax
20		imposed under paragraph (c) of this Section.
21		(f) The results of any election authorizing a proposition
22		to impose a tax under this Section or effecting a change in the
23		rate of tax shall be certified by the proper election
24		authorities and filed with the Illinois Department on or
25		before the first day of April. In addition, an ordinance
26		imposing, discontinuing, or effecting a change in the rate of

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1		tax under this Section shall be adopted and a certified copy
2		thereof filed with the Department on or before the first day of
3		April. After proper receipt of such certifications, the
4		Department shall proceed to administer and enforce this
5		Section as of the first day of July next following such
6		adoption and filing.
7		(g) Except as otherwise provided, the Department of
8		Revenue shall, upon collecting any taxes and penalties as
9		provided in this Section, pay the taxes and penalties over to
10		the State Treasurer as trustee for the Authority. The taxes
11		and penalties shall be held in a trust fund outside the State
12		Treasury. Taxes and penalties collected on aviation fuel sold
13		on or after December 1, 2019 and through December 31, 2020,
14		shall be immediately paid over by the Department to the State
15		Treasurer, ex officio, as trustee, for deposit into the Local
16		Government Aviation Trust Fund. The Department shall only pay
17		moneys into the Local Government Aviation Trust Fund under
18		this Section for so long as the revenue use requirements of 49
19		U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
20		District. On or before the 25th day of each calendar month, the
21		Department of Revenue shall prepare and certify to the
22		Comptroller of the State of Illinois the amount to be paid to
23		the Authority, which shall be the balance in the fund, less any
24		amount determined by the Department to be necessary for the
25		payment of refunds and not including taxes and penalties
26		collected on aviation fuel sold on or after December 1, 2019.

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1		Within 10 days after receipt by the Comptroller of the
2		certification of the amount to be paid to the Authority, the
3		Comptroller shall cause an order to be drawn for payment for
4		the amount in accordance with the directions contained in the
5		certification. Amounts received from the tax imposed under
6		this Section shall be used only for the support, construction,
7		maintenance, or financing of a facility of the Authority.
8		(h) When certifying the amount of a monthly disbursement
9		to the Authority under this Section, the Department shall
10		increase or decrease the amounts by an amount necessary to
11		offset any miscalculation of previous disbursements. The
12		offset amount shall be the amount erroneously disbursed within
13		the previous 6 months from the time a miscalculation is
14		discovered.
15		(i) This Section may be cited as the Salem Civic Center Use
16		and Occupation Tax Law.
17		(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
18		Section 75-45. The Flood Prevention District Act is
19		amended by changing Section 25 as follows:
20		(70 ILCS 750/25)
21		Sec. 25. Flood prevention retailers' and service
22		occupation taxes.
23		(a) If the Board of Commissioners of a flood prevention
24		district determines that an emergency situation exists

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1		regarding levee repair or flood prevention, and upon an
2		ordinance confirming the determination adopted by the
3		affirmative vote of a majority of the members of the county
4		board of the county in which the district is situated, the
5		county may impose a flood prevention retailers' occupation tax
6		upon all persons engaged in the business of selling tangible
7		personal property at retail within the territory of the
8		district to provide revenue to pay the costs of providing
9		emergency levee repair and flood prevention and to secure the
10		payment of bonds, notes, and other evidences of indebtedness
11		issued under this Act for a period not to exceed 25 years or as
12		required to repay the bonds, notes, and other evidences of
13		indebtedness issued under this Act. The tax rate shall be
14		0.25% of the gross receipts from all taxable sales made in the
15		course of that business. Beginning December 1, 2019 and
16		through December 31, 2020, this tax is not imposed on sales of
17		aviation fuel unless the tax revenue is expended for
18		airport-related purposes. If the District does not have an
19		airport-related purpose to which it dedicates aviation fuel
20		tax revenue, then aviation fuel is excluded from the tax. The
21		County must comply with the certification requirements for
22		airport-related purposes under Section 2-22 of the Retailers'
23		Occupation Tax Act. The tax imposed under this Section and all
24		civil penalties that may be assessed as an incident thereof
25		shall be collected and enforced by the State Department of
26		Revenue. The Department shall have full power to administer

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1		and enforce this Section; to collect all taxes and penalties
2		so collected in the manner hereinafter provided; and to
3		determine all rights to credit memoranda arising on account of
4		the erroneous payment of tax or penalty hereunder.
5		For purposes of this Act, "airport-related purposes" has
6		the meaning ascribed in Section 6z-20.2 of the State Finance
7		Act. Beginning January 1, 2021, this tax is not imposed on
8		sales of aviation fuel for so long as the revenue use
9		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
10		binding on the District.
11		In the administration of and compliance with this
12		subsection, the Department and persons who are subject to this
13		subsection (i) have the same rights, remedies, privileges,
14		immunities, powers, and duties, (ii) are subject to the same
15		conditions, restrictions, limitations, penalties, and
16		definitions of terms, and (iii) shall employ the same modes of
17		procedure as are set forth in Sections 1 through 1o, 2 through
18		2-70 (in respect to all provisions contained in those Sections
19		other than the State rate of tax), 2a through 2h, 3 (except as
20		to the disposition of taxes and penalties collected, and
21		except that the retailer's discount is not allowed for taxes
22		paid on aviation fuel that are subject to the revenue use
23		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
24		5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 6d, 7,
25		8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax
26		Act and all provisions of the Uniform Penalty and Interest Act

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1		as if those provisions were set forth in this subsection.
2		Persons subject to any tax imposed under this Section may
3		reimburse themselves for their seller's tax liability
4		hereunder by separately stating the tax as an additional
5		charge, which charge may be stated in combination in a single
6		amount with State taxes that sellers are required to collect
7		under the Use Tax Act, under any bracket schedules the
8		Department may prescribe.
9		If a tax is imposed under this subsection (a), a tax shall
10		also be imposed under subsection (b) of this Section.
11		(b) If a tax has been imposed under subsection (a), a flood
12		prevention service occupation tax shall also be imposed upon
13		all persons engaged within the territory of the district in
14		the business of making sales of service, who, as an incident to
15		making the sales of service, transfer tangible personal
16		property, either in the form of tangible personal property or
17		in the form of real estate as an incident to a sale of service
18		to provide revenue to pay the costs of providing emergency
19		levee repair and flood prevention and to secure the payment of
20		bonds, notes, and other evidences of indebtedness issued under
21		this Act for a period not to exceed 25 years or as required to
22		repay the bonds, notes, and other evidences of indebtedness.
23		The tax rate shall be 0.25% of the selling price of all
24		tangible personal property transferred. Beginning December 1,
25		2019 and through December 31, 2020, this tax is not imposed on
26		sales of aviation fuel unless the tax revenue is expended for

HB4951 Enrolled - 771 - LRB103 38094 HLH 68226 b
1		airport-related purposes. If the District does not have an
2		airport-related purpose to which it dedicates aviation fuel
3		tax revenue, then aviation fuel is excluded from the tax. The
4		County must comply with the certification requirements for
5		airport-related purposes under Section 2-22 of the Retailers'
6		Occupation Tax Act. For purposes of this Act, "airport-related
7		purposes" has the meaning ascribed in Section 6z-20.2 of the
8		State Finance Act. Beginning January 1, 2021, this tax is not
9		imposed on sales of aviation fuel for so long as the revenue
10		use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
11		binding on the District.
12		The tax imposed under this subsection and all civil
13		penalties that may be assessed as an incident thereof shall be
14		collected and enforced by the State Department of Revenue. The
15		Department shall have full power to administer and enforce
16		this subsection; to collect all taxes and penalties due
17		hereunder; to dispose of taxes and penalties collected in the
18		manner hereinafter provided; and to determine all rights to
19		credit memoranda arising on account of the erroneous payment
20		of tax or penalty hereunder.
21		In the administration of and compliance with this
22		subsection, the Department and persons who are subject to this
23		subsection shall (i) have the same rights, remedies,
24		privileges, immunities, powers, and duties, (ii) be subject to
25		the same conditions, restrictions, limitations, penalties, and
26		definitions of terms, and (iii) employ the same modes of

HB4951 Enrolled - 772 - LRB103 38094 HLH 68226 b
1		procedure as are set forth in Sections 2 (except that the
2		reference to State in the definition of supplier maintaining a
3		place of business in this State means the district), 2a
4		through 2d, 3 through 3-50 (in respect to all provisions
5		contained in those Sections other than the State rate of tax),
6		4 (except that the reference to the State shall be to the
7		district), 5, 7, 8 (except that the jurisdiction to which the
8		tax is a debt to the extent indicated in that Section 8 is the
9		district), 9 (except as to the disposition of taxes and
10		penalties collected, 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 means the district), Section
16		15, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act
17		and all provisions of the Uniform Penalty and Interest Act, as
18		fully as if those provisions were set forth herein.
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 hereunder by separately stating the
22		tax as an additional charge, that charge may be stated in
23		combination in a single amount with State tax that servicemen
24		are authorized to collect under the Service Use Tax Act, under
25		any bracket schedules the Department may prescribe.
26		(c) The taxes imposed in subsections (a) and (b) may not be

HB4951 Enrolled - 773 - LRB103 38094 HLH 68226 b
1		imposed on personal property titled or registered with an
2		agency of the State or on personal property taxed at the 1%
3		rate under the Retailers' Occupation Tax Act and the Service
4		Occupation Tax Act (or at the 0% rate imposed under this
5		amendatory Act of the 102nd General Assembly).
6		(c-5) If, on January 1, 2025, a unit of local government
7		has in effect a tax under this Section, or if, after January 1,
8		2025, a unit of local government imposes a tax under this
9		Section, then that tax applies to leases of tangible personal
10		property in effect, entered into, or renewed on or after that
11		date in the same manner as the tax under this Section and in
12		accordance with the changes made by this amendatory Act of the
13		103rd General Assembly.
14		(d) Nothing in this Section shall be construed to
15		authorize the district to impose a tax upon the privilege of
16		engaging in any business that under the Constitution of the
17		United States may not be made the subject of taxation by the
18		State.
19		(e) The certificate of registration that is issued by the
20		Department to a retailer under the Retailers' Occupation Tax
21		Act or a serviceman under the Service Occupation Tax Act
22		permits the retailer or serviceman to engage in a business
23		that is taxable without registering separately with the
24		Department under an ordinance or resolution under this
25		Section.
26		(f) Except as otherwise provided, the Department shall

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1		immediately pay over to the State Treasurer, ex officio, as
2		trustee, all taxes and penalties collected under this Section
3		to be deposited into the Flood Prevention Occupation Tax Fund,
4		which shall be an unappropriated trust fund held outside the
5		State treasury. Taxes and penalties collected on aviation fuel
6		sold on or after December 1, 2019 and through December 31,
7		2020, shall be immediately paid over by the Department to the
8		State Treasurer, ex officio, as trustee, for deposit into the
9		Local Government Aviation Trust Fund. The Department shall
10		only pay moneys into the Local Government Aviation Trust Fund
11		under this Act for so long as the revenue use requirements of
12		49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
13		District.
14		On or before the 25th day of each calendar month, the
15		Department shall prepare and certify to the Comptroller the
16		disbursement of stated sums of money to the counties from
17		which retailers or servicemen have paid taxes or penalties to
18		the Department during the second preceding calendar month. The
19		amount to be paid to each county is equal to the amount (not
20		including credit memoranda and not including taxes and
21		penalties collected on aviation fuel sold on or after December
22		1, 2019 and through December 31, 2020) collected from the
23		county under this Section during the second preceding calendar
24		month by the Department, (i) less 2% of that amount (except the
25		amount collected on aviation fuel sold on or after December 1,
26		2019 and through December 31, 2020), which shall be deposited

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1		into the Tax Compliance and Administration Fund and shall be
2		used by the Department in administering and enforcing the
3		provisions of this Section on behalf of the county, (ii) plus
4		an amount that the Department determines is necessary to
5		offset any amounts that were erroneously paid to a different
6		taxing body; (iii) less an amount equal to the amount of
7		refunds made during the second preceding calendar month by the
8		Department on behalf of the county; and (iv) less any amount
9		that the Department determines is necessary to offset any
10		amounts that were payable to a different taxing body but were
11		erroneously paid to the county. When certifying the amount of
12		a monthly disbursement to a county under this Section, the
13		Department shall increase or decrease the amounts by an amount
14		necessary to offset any miscalculation of previous
15		disbursements within the previous 6 months from the time a
16		miscalculation is discovered.
17		Within 10 days after receipt by the Comptroller from the
18		Department of the disbursement certification to the counties
19		provided for in this Section, the Comptroller shall cause the
20		orders to be drawn for the respective amounts in accordance
21		with directions contained in the certification.
22		If the Department determines that a refund should be made
23		under this Section to a claimant instead of issuing a credit
24		memorandum, then the Department shall notify the Comptroller,
25		who shall cause the order to be drawn for the amount specified
26		and to the person named in the notification from the

HB4951 Enrolled - 776 - LRB103 38094 HLH 68226 b
1		Department. The refund shall be paid by the Treasurer out of
2		the Flood Prevention Occupation Tax Fund or the Local
3		Government Aviation Trust Fund, as appropriate.
4		(g) If a county imposes a tax under this Section, then the
5		county board shall, by ordinance, discontinue the tax upon the
6		payment of all indebtedness of the flood prevention district.
7		The tax shall not be discontinued until all indebtedness of
8		the District has been paid.
9		(h) Any ordinance imposing the tax under this Section, or
10		any ordinance that discontinues the tax, must be certified by
11		the county clerk and filed with the Illinois Department of
12		Revenue either (i) on or before the first day of April,
13		whereupon the Department shall proceed to administer and
14		enforce the tax or change in the rate as of the first day of
15		July next following the filing; or (ii) on or before the first
16		day of October, whereupon the Department shall proceed to
17		administer and enforce the tax or change in the rate as of the
18		first day of January next following the filing.
19		(j) County Flood Prevention Occupation Tax Fund. All
20		proceeds received by a county from a tax distribution under
21		this Section must be maintained in a special fund known as the
22		[name of county] flood prevention occupation tax fund. The
23		county shall, at the direction of the flood prevention
24		district, use moneys in the fund to pay the costs of providing
25		emergency levee repair and flood prevention and to pay bonds,
26		notes, and other evidences of indebtedness issued under this

HB4951 Enrolled - 777 - LRB103 38094 HLH 68226 b
1		Act.
2		(k) This Section may be cited as the Flood Prevention
3		Occupation Tax Law.
4		(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19;
5		102-700, eff. 4-19-22.)
6		Section 75-50. The Metro-East Park and Recreation District
7		Act is amended by changing Section 30 as follows:
8		(70 ILCS 1605/30)
9		Sec. 30. Taxes.
10		(a) The board shall impose a tax upon all persons engaged
11		in the business of selling tangible personal property, other
12		than personal property titled or registered with an agency of
13		this State's government, at retail in the District on the
14		gross receipts from the sales made in the course of business.
15		This tax shall be imposed only at the rate of one-tenth of one
16		per cent.
17		This additional tax may not be imposed on tangible
18		personal property taxed at the 1% rate under the Retailers'
19		Occupation Tax Act (or at the 0% rate imposed under this
20		amendatory Act of the 102nd General Assembly). Beginning
21		December 1, 2019 and through December 31, 2020, this tax is not
22		imposed on sales of aviation fuel unless the tax revenue is
23		expended for airport-related purposes. If the District does
24		not have an airport-related purpose to which it dedicates

HB4951 Enrolled - 778 - LRB103 38094 HLH 68226 b
1		aviation fuel tax revenue, then aviation fuel shall be
2		excluded from tax. The board must comply with the
3		certification requirements for airport-related purposes under
4		Section 2-22 of the Retailers' Occupation Tax Act. For
5		purposes of this Act, "airport-related purposes" has the
6		meaning ascribed in Section 6z-20.2 of the State Finance Act.
7		Beginning January 1, 2021, this tax is not imposed on sales of
8		aviation fuel 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
10		District. The tax imposed by the Board under this Section and
11		all civil penalties that may be assessed as an incident of the
12		tax shall be collected and enforced by the Department of
13		Revenue. The certificate of registration that is issued by the
14		Department to a retailer under the Retailers' Occupation Tax
15		Act shall permit the retailer to engage in a business that is
16		taxable without registering separately with the Department
17		under an ordinance or resolution under this Section. The
18		Department has full power to administer and enforce this
19		Section, to collect all taxes and penalties due under this
20		Section, to dispose of taxes and penalties so collected in the
21		manner provided in this Section, and to determine all rights
22		to credit memoranda arising on account of the erroneous
23		payment of a tax or penalty under this Section. In the
24		administration of and compliance with this Section, the
25		Department and persons who are subject to this Section shall
26		(i) have the same rights, remedies, privileges, immunities,

HB4951 Enrolled - 779 - LRB103 38094 HLH 68226 b
1		powers, and duties, (ii) be subject to the same conditions,
2		restrictions, limitations, penalties, and definitions of
3		terms, and (iii) employ the same modes of procedure as are
4		prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
5		1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
6		contained in those Sections other than the State rate of tax),
7		2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except provisions
8		relating to transaction returns and quarter monthly payments,
9		and except that the retailer's discount is not allowed for
10		taxes paid on aviation fuel that are subject to the revenue use
11		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
12		5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
13		6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
14		Occupation Tax Act and the Uniform Penalty and Interest Act as
15		if those provisions were set forth in this Section.
16		Persons subject to any tax imposed under the authority
17		granted in this Section may reimburse themselves for their
18		sellers' tax liability by separately stating the tax as an
19		additional charge, which charge may be stated in combination,
20		in a single amount, with State tax which sellers are required
21		to collect under the Use Tax Act, pursuant to such bracketed
22		schedules as the Department may prescribe.
23		Whenever the Department determines that a refund should be
24		made under this Section to a claimant instead of issuing a
25		credit memorandum, the Department shall notify the State
26		Comptroller, who shall cause the order to be drawn for the

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1		amount specified and to the person named in the notification
2		from the Department. The refund shall be paid by the State
3		Treasurer out of the State Metro-East Park and Recreation
4		District Fund or the Local Government Aviation Trust Fund, as
5		appropriate.
6		(b) If a tax has been imposed under subsection (a), a
7		service occupation tax shall also be imposed at the same rate
8		upon all persons engaged, in the District, in the business of
9		making sales of service, who, as an incident to making those
10		sales of service, transfer tangible personal property within
11		the District as an incident to a sale of service. This tax may
12		not be imposed on tangible personal property taxed at the 1%
13		rate under the Service Occupation Tax Act (or at the 0% rate
14		imposed under this amendatory Act of the 102nd General
15		Assembly). Beginning December 1, 2019 and through December 31,
16		2020, this tax may not be imposed on sales of aviation fuel
17		unless the tax revenue is expended for airport-related
18		purposes. If the District does not have an airport-related
19		purpose to which it dedicates aviation fuel tax revenue, then
20		aviation fuel shall be excluded from tax. The board must
21		comply with the certification requirements for airport-related
22		purposes under Section 2-22 of the Retailers' Occupation Tax
23		Act. For purposes of this Act, "airport-related purposes" has
24		the meaning ascribed in Section 6z-20.2 of the State Finance
25		Act. Beginning January 1, 2021, this tax is not imposed on
26		sales of aviation fuel for so long as the revenue use

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1		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
2		binding on the District. The tax imposed under this subsection
3		and all civil penalties that may be assessed as an incident
4		thereof shall be collected and enforced by the Department of
5		Revenue. The Department has full power to administer and
6		enforce this subsection; to collect all taxes and penalties
7		due hereunder; to dispose of taxes and penalties so collected
8		in the manner hereinafter provided; and to determine all
9		rights to credit memoranda arising on account of the erroneous
10		payment of tax or penalty hereunder. In the administration of,
11		and compliance with this subsection, the Department and
12		persons who are subject to this paragraph shall (i) have the
13		same rights, remedies, privileges, immunities, powers, and
14		duties, (ii) be subject to the same conditions, restrictions,
15		limitations, penalties, exclusions, exemptions, and
16		definitions of terms, and (iii) employ the same modes of
17		procedure as are prescribed in Sections 2 (except that the
18		reference to State in the definition of supplier maintaining a
19		place of business in this State shall mean the District), 2a,
20		2b, 2c, 3 through 3-50 (in respect to all provisions therein
21		other than the State rate of tax), 4 (except that the reference
22		to the State shall be to the District), 5, 7, 8 (except that
23		the jurisdiction to which the tax shall be a debt to the extent
24		indicated in that Section 8 shall be the District), 9 (except
25		as to the disposition of taxes and penalties collected, and
26		except that the retailer's discount is not allowed for taxes

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1		paid on aviation fuel that are subject to the revenue use
2		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
3		11, 12 (except the reference therein to Section 2b of the
4		Retailers' Occupation Tax Act), 13 (except that any reference
5		to the State shall mean the District), Sections 15, 16, 17, 18,
6		19 and 20 of the Service Occupation Tax Act and the Uniform
7		Penalty and Interest Act, as fully as if those provisions were
8		set forth herein.
9		Persons subject to any tax imposed under the authority
10		granted in this subsection may reimburse themselves for their
11		serviceman's tax liability by separately stating the tax as an
12		additional charge, which charge may be stated in combination,
13		in a single amount, with State tax that servicemen are
14		authorized to collect under the Service Use Tax Act, in
15		accordance with such bracket schedules as the Department may
16		prescribe.
17		Whenever the Department determines that a refund should be
18		made under this subsection to a claimant instead of issuing a
19		credit memorandum, the Department shall notify the State
20		Comptroller, who shall cause the warrant to be drawn for the
21		amount specified, and to the person named, in the notification
22		from the Department. The refund shall be paid by the State
23		Treasurer out of the State Metro-East Park and Recreation
24		District Fund or the Local Government Aviation Trust Fund, as
25		appropriate.
26		Nothing in this subsection shall be construed to authorize

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1		the board to impose a tax upon the privilege of engaging in any
2		business which under the Constitution of the United States may
3		not be made the subject of taxation by the State.
4		(b-5) If, on January 1, 2025, a unit of local government
5		has in effect a tax under this Section, or if, after January 1,
6		2025, a unit of local government imposes a tax under this
7		Section, then that tax applies to leases of tangible personal
8		property in effect, entered into, or renewed on or after that
9		date in the same manner as the tax under this Section and in
10		accordance with the changes made by this amendatory Act of the
11		103rd General Assembly.
12		(c) Except as otherwise provided in this paragraph, the
13		Department shall immediately pay over to the State Treasurer,
14		ex officio, as trustee, all taxes and penalties collected
15		under this Section to be deposited into the State Metro-East
16		Park and Recreation District Fund, which shall be an
17		unappropriated trust fund held outside of the State treasury.
18		Taxes and penalties collected on aviation fuel sold on or
19		after December 1, 2019 and through December 31, 2020, shall be
20		immediately paid over by the Department to the State
21		Treasurer, ex officio, as trustee, for deposit into the Local
22		Government Aviation Trust Fund. The Department shall only pay
23		moneys into the Local Government Aviation Trust Fund under
24		this Act for so long as the revenue use requirements of 49
25		U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
26		District.

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1		As soon as possible after the first day of each month,
2		beginning January 1, 2011, upon certification of the
3		Department of Revenue, the Comptroller shall order
4		transferred, and the Treasurer shall transfer, to the STAR
5		Bonds Revenue Fund the local sales tax increment, as defined
6		in the Innovation Development and Economy Act, collected under
7		this Section during the second preceding calendar month for
8		sales within a STAR bond district. The Department shall make
9		this certification only if the Metro East Park and Recreation
10		District imposes a tax on real property as provided in the
11		definition of "local sales taxes" under the Innovation
12		Development and Economy Act.
13		After the monthly transfer to the STAR Bonds Revenue Fund,
14		on or before the 25th day of each calendar month, the
15		Department shall prepare and certify to the Comptroller the
16		disbursement of stated sums of money pursuant to Section 35 of
17		this Act to the District from which retailers have paid taxes
18		or penalties to the Department during the second preceding
19		calendar month. The amount to be paid to the District shall be
20		the amount (not including credit memoranda and not including
21		taxes and penalties collected on aviation fuel sold on or
22		after December 1, 2019 and through December 31, 2020)
23		collected under this Section during the second preceding
24		calendar month by the Department plus an amount the Department
25		determines is necessary to offset any amounts that were
26		erroneously paid to a different taxing body, and not including

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1		(i) an amount equal to the amount of refunds made during the
2		second preceding calendar month by the Department on behalf of
3		the District, (ii) any amount that the Department determines
4		is necessary to offset any amounts that were payable to a
5		different taxing body but were erroneously paid to the
6		District, (iii) any amounts that are transferred to the STAR
7		Bonds Revenue Fund, and (iv) 1.5% of the remainder, which the
8		Department shall transfer into the Tax Compliance and
9		Administration Fund. The Department, at the time of each
10		monthly disbursement to the District, shall prepare and
11		certify to the State Comptroller the amount to be transferred
12		into the Tax Compliance and Administration Fund under this
13		subsection. Within 10 days after receipt by the Comptroller of
14		the disbursement certification to the District and the Tax
15		Compliance and Administration Fund provided for in this
16		Section to be given to the Comptroller by the Department, the
17		Comptroller shall cause the orders to be drawn for the
18		respective amounts in accordance with directions contained in
19		the certification.
20		(d) For the purpose of determining whether a tax
21		authorized under this Section is applicable, a retail sale by
22		a producer of coal or another mineral mined in Illinois is a
23		sale at retail at the place where the coal or other mineral
24		mined in Illinois is extracted from the earth. This paragraph
25		does not apply to coal or another mineral when it is delivered
26		or shipped by the seller to the purchaser at a point outside

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1		Illinois so that the sale is exempt under the United States
2		Constitution as a sale in interstate or foreign commerce.
3		(e) Nothing in this Section shall be construed to
4		authorize the board to impose a tax upon the privilege of
5		engaging in any business that under the Constitution of the
6		United States may not be made the subject of taxation by this
7		State.
8		(f) An ordinance imposing a tax under this Section or an
9		ordinance extending the imposition of a tax to an additional
10		county or counties shall be certified by the board and filed
11		with the Department of Revenue either (i) on or before the
12		first day of April, whereupon the Department shall proceed to
13		administer and enforce the tax as of the first day of July next
14		following the filing; or (ii) on or before the first day of
15		October, whereupon the Department shall proceed to administer
16		and enforce the tax as of the first day of January next
17		following the filing.
18		(g) When certifying the amount of a monthly disbursement
19		to the District under this Section, the Department shall
20		increase or decrease the amounts by an amount necessary to
21		offset any misallocation of previous disbursements. The offset
22		amount shall be the amount erroneously disbursed within the
23		previous 6 months from the time a misallocation is discovered.
24		(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
25		101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)

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1		Section 75-55. The Local Mass Transit District Act is
2		amended by changing Section 5.01 as follows:
3		(70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
4		Sec. 5.01. Metro East Mass Transit District; use and
5		occupation taxes.
6		(a) The Board of Trustees of any Metro East Mass Transit
7		District may, by ordinance adopted with the concurrence of
8		two-thirds of the then trustees, impose throughout the
9		District any or all of the taxes and fees provided in this
10		Section. Except as otherwise provided, all taxes and fees
11		imposed under this Section shall be used only for public mass
12		transportation systems, and the amount used to provide mass
13		transit service to unserved areas of the District shall be in
14		the same proportion to the total proceeds as the number of
15		persons residing in the unserved areas is to the total
16		population of the District. Except as otherwise provided in
17		this Act, taxes imposed under this Section and civil penalties
18		imposed incident thereto shall be collected and enforced by
19		the State Department of Revenue. The Department shall have the
20		power to administer and enforce the taxes and to determine all
21		rights for refunds for erroneous payments of the taxes.
22		(b) The Board may impose a Metro East Mass Transit
23		District Retailers' Occupation Tax upon all persons engaged in
24		the business of selling tangible personal property at retail
25		in the district at a rate of 1/4 of 1%, or as authorized under

HB4951 Enrolled - 788 - LRB103 38094 HLH 68226 b
1		subsection (d-5) of this Section, of the gross receipts from
2		the sales made in the course of such business within the
3		district, except that the rate of tax imposed under this
4		Section on sales of aviation fuel on or after December 1, 2019
5		shall be 0.25% in Madison County unless the Metro-East Mass
6		Transit District in Madison County has an "airport-related
7		purpose" and any additional amount authorized under subsection
8		(d-5) is expended for airport-related purposes. If there is no
9		airport-related purpose to which aviation fuel tax revenue is
10		dedicated, then aviation fuel is excluded from any additional
11		amount authorized under subsection (d-5). The rate in St.
12		Clair County shall be 0.25% unless the Metro-East Mass Transit
13		District in St. Clair County has an "airport-related purpose"
14		and the additional 0.50% of the 0.75% tax on aviation fuel
15		imposed in that County is expended for airport-related
16		purposes. If there is no airport-related purpose to which
17		aviation fuel tax revenue is dedicated, then aviation fuel is
18		excluded from the additional 0.50% of the 0.75% tax.
19		The Board must comply with the certification requirements
20		for airport-related purposes under Section 2-22 of the
21		Retailers' Occupation Tax Act. For purposes of this Section,
22		"airport-related purposes" has the meaning ascribed in Section
23		6z-20.2 of the State Finance Act. This exclusion for aviation
24		fuel only applies for so long as the revenue use requirements
25		of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
26		District.

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1		The tax imposed under this Section and all civil penalties
2		that may be assessed as an incident thereof shall be collected
3		and enforced by the State Department of Revenue. The
4		Department shall have full power to administer and enforce
5		this Section; to collect all taxes and penalties so collected
6		in the manner hereinafter provided; and to determine all
7		rights to credit memoranda arising on account of the erroneous
8		payment of tax or penalty hereunder. In the administration of,
9		and compliance with, this Section, the Department and persons
10		who are subject to this Section shall have the same rights,
11		remedies, privileges, immunities, powers and duties, and be
12		subject to the same conditions, restrictions, limitations,
13		penalties, exclusions, exemptions and definitions of terms and
14		employ the same modes of procedure, as are prescribed in
15		Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
16		(in respect to all provisions therein other than the State
17		rate of tax), 2c, 3 (except as to the disposition of taxes and
18		penalties collected, and except that the retailer's discount
19		is not allowed for taxes paid on aviation fuel that are subject
20		to the revenue use requirements of 49 U.S.C. 47107(b) and 49
21		U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
22		5l, 6, 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

HB4951 Enrolled - 790 - LRB103 38094 HLH 68226 b
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 1/4%, 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, except that the rate of tax imposed in
21		these Counties under this Section on sales of aviation fuel on
22		or after December 1, 2019 shall be 0.25% in Madison County
23		unless the Metro-East Mass Transit District in Madison County
24		has an "airport-related purpose" and any additional amount
25		authorized under subsection (d-5) is expended for
26		airport-related purposes. If there is no airport-related

HB4951 Enrolled - 792 - LRB103 38094 HLH 68226 b
1		purpose to which aviation fuel tax revenue is dedicated, then
2		aviation fuel is excluded from any additional amount
3		authorized under subsection (d-5). The rate in St. Clair
4		County shall be 0.25% unless the Metro-East Mass Transit
5		District in St. Clair County has an "airport-related purpose"
6		and the additional 0.50% of the 0.75% tax on aviation fuel is
7		expended for airport-related purposes. If there is no
8		airport-related purpose to which aviation fuel tax revenue is
9		dedicated, then aviation fuel is excluded from the additional
10		0.50% of the 0.75% tax.
11		The Board must comply with the certification requirements
12		for airport-related purposes under Section 2-22 of the
13		Retailers' Occupation Tax Act. For purposes of this Section,
14		"airport-related purposes" has the meaning ascribed in Section
15		6z-20.2 of the State Finance Act. This exclusion for aviation
16		fuel only applies for so long as the revenue use requirements
17		of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
18		District.
19		The tax imposed under this paragraph and all civil
20		penalties that may be assessed as an incident thereof shall be
21		collected and enforced by the State Department of Revenue. The
22		Department shall have full power to administer and enforce
23		this paragraph; to collect all taxes and penalties due
24		hereunder; to dispose of taxes and penalties so collected in
25		the manner hereinafter provided; and to determine all rights
26		to credit memoranda arising on account of the erroneous

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1		payment of tax or penalty hereunder. In the administration of,
2		and compliance with this paragraph, the Department and persons
3		who are subject to this paragraph shall have the same rights,
4		remedies, privileges, immunities, powers and duties, and be
5		subject to the same conditions, restrictions, limitations,
6		penalties, exclusions, exemptions and definitions of terms and
7		employ the same modes of procedure as are prescribed in
8		Sections 1a-1, 2 (except that the reference to State in the
9		definition of supplier maintaining a place of business in this
10		State shall mean the Authority), 2a, 3 through 3-50 (in
11		respect to all provisions therein other than the State rate of
12		tax), 4 (except that the reference to the State shall be to the
13		Authority), 5, 7, 8 (except that the jurisdiction to which the
14		tax shall be a debt to the extent indicated in that Section 8
15		shall be the District), 9 (except as to the disposition of
16		taxes and penalties collected, and except that the returned
17		merchandise credit for this tax may not be taken against any
18		State tax, 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), 10, 11, 12 (except the reference therein to Section 2b
22		of the Retailers' Occupation Tax Act), 13 (except that any
23		reference to the State shall mean the District), the first
24		paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service
25		Occupation Tax Act and Section 3-7 of the Uniform Penalty and
26		Interest Act, as fully as if those provisions were set forth

HB4951 Enrolled - 794 - LRB103 38094 HLH 68226 b
1		herein.
2		Persons subject to any tax imposed under the authority
3		granted in this paragraph may reimburse themselves for their
4		serviceman's tax liability hereunder by separately stating the
5		tax as an additional charge, which charge may be stated in
6		combination, in a single amount, with State tax that
7		servicemen are authorized to collect under the Service Use Tax
8		Act, in accordance with such bracket schedules as the
9		Department may prescribe.
10		Whenever the Department determines that a refund should be
11		made under this paragraph to a claimant instead of issuing a
12		credit memorandum, the Department shall notify the State
13		Comptroller, who shall cause the warrant to be drawn for the
14		amount specified, and to the person named, in the notification
15		from the Department. The refund shall be paid by the State
16		Treasurer out of the Metro East Mass Transit District tax fund
17		established under paragraph (h) of this Section or the Local
18		Government Aviation Trust Fund, as appropriate.
19		Nothing in this paragraph shall be construed to authorize
20		the District to impose a tax upon the privilege of engaging in
21		any business which under the Constitution of the United States
22		may not be made the subject of taxation by the State.
23		(d) If a tax has been imposed under subsection (b), a Metro
24		East Mass Transit District Use Tax shall also be imposed upon
25		the privilege of using, in the district, any item of tangible
26		personal property that is purchased outside the district at

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1		retail from a retailer, and that is titled or registered with
2		an agency of this State's government, at a rate of 1/4%, or as
3		authorized under subsection (d-5) of this Section, of the
4		selling price of the tangible personal property within the
5		District, as "selling price" is defined in the Use Tax Act. The
6		tax shall be collected from persons whose Illinois address for
7		titling or registration purposes is given as being in the
8		District. The tax shall be collected by the Department of
9		Revenue for the Metro East Mass Transit District. The tax must
10		be paid to the State, or an exemption determination must be
11		obtained from the Department of Revenue, before the title or
12		certificate of registration for the property may be issued.
13		The tax or proof of exemption may be transmitted to the
14		Department by way of the State agency with which, or the State
15		officer with whom, the tangible personal property must be
16		titled or registered if the Department and the State agency or
17		State officer determine that this procedure will expedite the
18		processing of applications for title or registration.
19		The Department shall have full power to administer and
20		enforce this paragraph; to collect all taxes, penalties and
21		interest due hereunder; to dispose of taxes, penalties and
22		interest so collected in the manner hereinafter provided; and
23		to determine all rights to credit memoranda or refunds arising
24		on account of the erroneous payment of tax, penalty or
25		interest hereunder. In the administration of, and compliance
26		with, this paragraph, the Department and persons who are

HB4951 Enrolled - 796 - LRB103 38094 HLH 68226 b
1		subject to this paragraph shall have the same rights,
2		remedies, privileges, immunities, powers and duties, and be
3		subject to the same conditions, restrictions, limitations,
4		penalties, exclusions, exemptions and definitions of terms and
5		employ the same modes of procedure, as are prescribed in
6		Sections 2 (except the definition of "retailer maintaining a
7		place of business in this State"), 3 through 3-80 (except
8		provisions pertaining to the State rate of tax, and except
9		provisions concerning collection or refunding of the tax by
10		retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
11		pertaining to claims by retailers and except the last
12		paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act
13		and Section 3-7 of the Uniform Penalty and Interest Act, that
14		are not inconsistent with this paragraph, as fully as if those
15		provisions were set forth herein.
16		Whenever the Department determines that a refund should be
17		made under this paragraph to a claimant instead of issuing a
18		credit memorandum, the Department shall notify the State
19		Comptroller, who shall cause the order to be drawn for the
20		amount specified, and to the person named, in the notification
21		from the Department. The refund shall be paid by the State
22		Treasurer out of the Metro East Mass Transit District tax fund
23		established under paragraph (h) of this Section.
24		(d-1) If, on January 1, 2025, a unit of local government
25		has in effect a tax under subsections (b), (c), and (d) or if,
26		after January 1, 2025, a unit of local government imposes a tax

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1		under subsections (b), (c), and (d), then that tax applies to
2		leases of tangible personal property in effect, entered into,
3		or renewed on or after that date in the same manner as the tax
4		under this Section and in accordance with the changes made by
5		this amendatory Act of the 103rd General Assembly.
6		(d-5) (A) The county board of any county participating in
7		the Metro East Mass Transit District may authorize, by
8		ordinance, a referendum on the question of whether the tax
9		rates for the Metro East Mass Transit District Retailers'
10		Occupation Tax, the Metro East Mass Transit District Service
11		Occupation Tax, and the Metro East Mass Transit District Use
12		Tax for the District should be increased from 0.25% to 0.75%.
13		Upon adopting the ordinance, the county board shall certify
14		the proposition to the proper election officials who shall
15		submit the proposition to the voters of the District at the
16		next election, in accordance with the general election law.
17		The proposition shall be in substantially the following
18		form:
19		Shall the tax rates for the Metro East Mass Transit
20		District Retailers' Occupation Tax, the Metro East Mass
21		Transit District Service Occupation Tax, and the Metro
22		East Mass Transit District Use Tax be increased from 0.25%
23		to 0.75%?
24		(B) Two thousand five hundred electors of any Metro East
25		Mass Transit District may petition the Chief Judge of the
26		Circuit Court, or any judge of that Circuit designated by the

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1		Chief Judge, in which that District is located to cause to be
2		submitted to a vote of the electors the question whether the
3		tax rates for the Metro East Mass Transit District Retailers'
4		Occupation Tax, the Metro East Mass Transit District Service
5		Occupation Tax, and the Metro East Mass Transit District Use
6		Tax for the District should be increased from 0.25% to 0.75%.
7		Upon submission of such petition the court shall set a
8		date not less than 10 nor more than 30 days thereafter for a
9		hearing on the sufficiency thereof. Notice of the filing of
10		such petition and of such date shall be given in writing to the
11		District and the County Clerk at least 7 days before the date
12		of such hearing.
13		If such petition is found sufficient, the court shall
14		enter an order to submit that proposition at the next
15		election, in accordance with general election law.
16		The form of the petition shall be in substantially the
17		following form: To the Circuit Court of the County of (name of
18		county):
19		We, the undersigned electors of the (name of transit
20		district), respectfully petition your honor to submit to a
21		vote of the electors of (name of transit district) the
22		following proposition:
23		Shall the tax rates for the Metro East Mass Transit
24		District Retailers' Occupation Tax, the Metro East Mass
25		Transit District Service Occupation Tax, and the Metro
26		East Mass Transit District Use Tax be increased from 0.25%

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1		to 0.75%?
2		Name Address, with Street and Number.
3 ...................... ........................................ 4 ...................... ........................................
5		(C) The votes shall be recorded as "YES" or "NO". If a
6		majority of all votes cast on the proposition are for the
7		increase in the tax rates, the Metro East Mass Transit
8		District shall begin imposing the increased rates in the
9		District, and the Department of Revenue shall begin collecting
10		the increased amounts, as provided under this Section. An
11		ordinance imposing or discontinuing a tax hereunder or
12		effecting a change in the rate thereof 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 the adoption and filing, or on or
17		before the first day of April, whereupon the Department shall
18		proceed to administer and enforce this Section as of the first
19		day of July next following the adoption and filing.
20		(D) If the voters have approved a referendum under this
21		subsection, before November 1, 1994, to increase the tax rate
22		under this subsection, the Metro East Mass Transit District
23		Board of Trustees may adopt by a majority vote an ordinance at
24		any time before January 1, 1995 that excludes from the rate
25		increase tangible personal property that is titled or
26		registered with an agency of this State's government. The

HB4951 Enrolled - 800 - LRB103 38094 HLH 68226 b
1		ordinance excluding titled or registered tangible personal
2		property from the rate increase must be filed with the
3		Department at least 15 days before its effective date. At any
4		time after adopting an ordinance excluding from the rate
5		increase tangible personal property that is titled or
6		registered with an agency of this State's government, the
7		Metro East Mass Transit District Board of Trustees may adopt
8		an ordinance applying the rate increase to that tangible
9		personal property. The ordinance shall be adopted, and a
10		certified copy of that ordinance shall be filed with the
11		Department, on or before October 1, whereupon the Department
12		shall proceed to administer and enforce the rate increase
13		against tangible personal property titled or registered with
14		an agency of this State's government as of the following
15		January 1. After December 31, 1995, any reimposed rate
16		increase in effect under this subsection shall no longer apply
17		to tangible personal property titled or registered with an
18		agency of this State's government. Beginning January 1, 1996,
19		the Board of Trustees of any Metro East Mass Transit District
20		may never reimpose a previously excluded tax rate increase on
21		tangible personal property titled or registered with an agency
22		of this State's government. After July 1, 2004, if the voters
23		have approved a referendum under this subsection to increase
24		the tax rate under this subsection, the Metro East Mass
25		Transit District Board of Trustees may adopt by a majority
26		vote an ordinance that excludes from the rate increase

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1		tangible personal property that is titled or registered with
2		an agency of this State's government. The ordinance excluding
3		titled or registered tangible personal property from the rate
4		increase shall be adopted, and a certified copy of that
5		ordinance shall be filed with the Department on or before
6		October 1, whereupon the Department shall administer and
7		enforce this exclusion from the rate increase as of the
8		following January 1, or on or before April 1, whereupon the
9		Department shall administer and enforce this exclusion from
10		the rate increase as of the following July 1. The Board of
11		Trustees of any Metro East Mass Transit District may never
12		reimpose a previously excluded tax rate increase on tangible
13		personal property titled or registered with an agency of this
14		State's government.
15		(d-6) If the Board of Trustees of any Metro East Mass
16		Transit District has imposed a rate increase under subsection
17		(d-5) and filed an ordinance with the Department of Revenue
18		excluding titled property from the higher rate, then that
19		Board may, by ordinance adopted with the concurrence of
20		two-thirds of the then trustees, impose throughout the
21		District a fee. The fee on the excluded property shall not
22		exceed $20 per retail transaction or an amount equal to the
23		amount of tax excluded, whichever is less, on tangible
24		personal property that is titled or registered with an agency
25		of this State's government. Beginning July 1, 2004, the fee
26		shall apply only to titled property that is subject to either

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1		the Metro East Mass Transit District Retailers' Occupation Tax
2		or the Metro East Mass Transit District Service Occupation
3		Tax. No fee shall be imposed or collected under this
4		subsection on the sale of a motor vehicle in this State to a
5		resident of another state if that motor vehicle will not be
6		titled in this State.
7		(d-7) Until June 30, 2004, if a fee has been imposed under
8		subsection (d-6), a fee shall also be imposed upon the
9		privilege of using, in the district, any item of tangible
10		personal property that is titled or registered with any agency
11		of this State's government, in an amount equal to the amount of
12		the fee imposed under subsection (d-6).
13		(d-7.1) Beginning July 1, 2004, any fee imposed by the
14		Board of Trustees of any Metro East Mass Transit District
15		under subsection (d-6) and all civil penalties that may be
16		assessed as an incident of the fees shall be collected and
17		enforced by the State Department of Revenue. Reference to
18		"taxes" in this Section shall be construed to apply to the
19		administration, payment, and remittance of all fees under this
20		Section. For purposes of any fee imposed under subsection
21		(d-6), 4% of the fee, penalty, and interest received by the
22		Department in the first 12 months that the fee is collected and
23		enforced by the Department and 2% of the fee, penalty, and
24		interest following the first 12 months (except the amount
25		collected on aviation fuel sold on or after December 1, 2019)
26		shall be deposited into the Tax Compliance and Administration

HB4951 Enrolled - 803 - LRB103 38094 HLH 68226 b
1		Fund and shall be used by the Department, subject to
2		appropriation, to cover the costs of the Department. No
3		retailers' discount shall apply to any fee imposed under
4		subsection (d-6).
5		(d-8) No item of titled property shall be subject to both
6		the higher rate approved by referendum, as authorized under
7		subsection (d-5), and any fee imposed under subsection (d-6)
8		or (d-7).
9		(d-9) (Blank).
10		(d-10) (Blank).
11		(e) A certificate of registration issued by the State
12		Department of Revenue to a retailer under the Retailers'
13		Occupation Tax Act or under the Service Occupation Tax Act
14		shall permit the registrant to engage in a business that is
15		taxed under the tax imposed under paragraphs (b), (c) or (d) of
16		this Section and no additional registration shall be required
17		under the tax. A certificate issued under the Use Tax Act or
18		the Service Use Tax Act shall be applicable with regard to any
19		tax imposed under paragraph (c) of this Section.
20		(f) (Blank).
21		(g) Any ordinance imposing or discontinuing any tax under
22		this Section shall be adopted and a certified copy thereof
23		filed with the Department on or before June 1, whereupon the
24		Department of Revenue shall proceed to administer and enforce
25		this Section on behalf of the Metro East Mass Transit District
26		as of September 1 next following such adoption and filing.

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1		Beginning January 1, 1992, an ordinance or resolution imposing
2		or discontinuing the tax hereunder shall be adopted and a
3		certified copy thereof filed with the Department on or before
4		the first day of July, whereupon the Department shall proceed
5		to administer and enforce this Section as of the first day of
6		October next following such adoption and filing. Beginning
7		January 1, 1993, except as provided in subsection (d-5) of
8		this Section, an ordinance or resolution imposing or
9		discontinuing the tax hereunder shall be adopted and a
10		certified copy thereof filed with the Department on or before
11		the first day of October, whereupon the Department shall
12		proceed to administer and enforce this Section as of the first
13		day of January next following such adoption and filing, or,
14		beginning January 1, 2004, on or before the first day of April,
15		whereupon the Department shall proceed to administer and
16		enforce this Section as of the first day of July next following
17		the adoption and filing.
18		(h) Except as provided in subsection (d-7.1), the State
19		Department of Revenue shall, upon collecting any taxes as
20		provided in this Section, pay the taxes over to the State
21		Treasurer as trustee for the District. The taxes shall be held
22		in a trust fund outside the State Treasury. If an
23		airport-related purpose has been certified, taxes and
24		penalties collected in St. Clair County on aviation fuel sold
25		on or after December 1, 2019 from the 0.50% of the 0.75% rate
26		shall be immediately paid over by the Department to the State

HB4951 Enrolled - 805 - LRB103 38094 HLH 68226 b
1		Treasurer, ex officio, as trustee, for deposit into the Local
2		Government Aviation Trust Fund. The Department shall only pay
3		moneys into the Local Government Aviation Trust Fund under
4		this Act for so long as the revenue use requirements of 49
5		U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
6		District.
7		As soon as possible after the first day of each month,
8		beginning January 1, 2011, upon certification of the
9		Department of Revenue, the Comptroller shall order
10		transferred, and the Treasurer shall transfer, to the STAR
11		Bonds Revenue Fund the local sales tax increment, as defined
12		in the Innovation Development and Economy Act, collected under
13		this Section during the second preceding calendar month for
14		sales within a STAR bond district. The Department shall make
15		this certification only if the local mass transit district
16		imposes a tax on real property as provided in the definition of
17		"local sales taxes" under the Innovation Development and
18		Economy Act.
19		After the monthly transfer to the STAR Bonds Revenue Fund,
20		on or before the 25th day of each calendar month, the State
21		Department of Revenue shall prepare and certify to the
22		Comptroller of the State of Illinois the amount to be paid to
23		the District, which shall be the amount (not including credit
24		memoranda and not including taxes and penalties collected on
25		aviation fuel sold on or after December 1, 2019 that are
26		deposited into the Local Government Aviation Trust Fund)

HB4951 Enrolled - 806 - LRB103 38094 HLH 68226 b
1		collected under this Section during the second preceding
2		calendar month by the Department plus an amount the Department
3		determines is necessary to offset any amounts that were
4		erroneously paid to a different taxing body, and not including
5		any amount equal to the amount of refunds made during the
6		second preceding calendar month by the Department on behalf of
7		the District, and not including any amount that the Department
8		determines is necessary to offset any amounts that were
9		payable to a different taxing body but were erroneously paid
10		to the District, and less any amounts that are transferred to
11		the STAR Bonds Revenue Fund, less 1.5% of the remainder, which
12		the Department shall transfer into the Tax Compliance and
13		Administration Fund. The Department, at the time of each
14		monthly disbursement to the District, shall prepare and
15		certify to the State Comptroller the amount to be transferred
16		into the Tax Compliance and Administration Fund under this
17		subsection. Within 10 days after receipt by the Comptroller of
18		the certification of the amount to be paid to the District and
19		the Tax Compliance and Administration Fund, the Comptroller
20		shall cause an order to be drawn for payment for the amount in
21		accordance with the direction in the certification.
22		(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
23		101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
24		Section 75-60. The Regional Transportation Authority Act
25		is amended by changing Section 4.03 as follows:

HB4951 Enrolled - 807 - LRB103 38094 HLH 68226 b
1		(70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
2		Sec. 4.03. Taxes.
3		(a) In order to carry out any of the powers or purposes of
4		the Authority, the Board may by ordinance adopted with the
5		concurrence of 12 of the then Directors, impose throughout the
6		metropolitan region any or all of the taxes provided in this
7		Section. Except as otherwise provided in this Act, taxes
8		imposed under this Section and civil penalties imposed
9		incident thereto shall be collected and enforced by the State
10		Department of Revenue. The Department shall have the power to
11		administer and enforce the taxes and to determine all rights
12		for refunds for erroneous payments of the taxes. Nothing in
13		Public Act 95-708 is intended to invalidate any taxes
14		currently imposed by the Authority. The increased vote
15		requirements to impose a tax shall only apply to actions taken
16		after January 1, 2008 (the effective date of Public Act
17		95-708).
18		(b) The Board may impose a public transportation tax upon
19		all persons engaged in the metropolitan region in the business
20		of selling at retail motor fuel for operation of motor
21		vehicles upon public highways. The tax shall be at a rate not
22		to exceed 5% of the gross receipts from the sales of motor fuel
23		in the course of the business. As used in this Act, the term
24		"motor fuel" shall have the same meaning as in the Motor Fuel
25		Tax Law. The Board may provide for details of the tax. The

HB4951 Enrolled - 808 - LRB103 38094 HLH 68226 b
1		provisions of any tax shall conform, as closely as may be
2		practicable, to the provisions of the Municipal Retailers
3		Occupation Tax Act, including without limitation, conformity
4		to penalties with respect to the tax imposed and as to the
5		powers of the State Department of Revenue to promulgate and
6		enforce rules and regulations relating to the administration
7		and enforcement of the provisions of the tax imposed, except
8		that reference in the Act to any municipality shall refer to
9		the Authority and the tax shall be imposed only with regard to
10		receipts from sales of motor fuel in the metropolitan region,
11		at rates as limited by this Section.
12		(c) In connection with the tax imposed under paragraph (b)
13		of this Section, the Board may impose a tax upon the privilege
14		of using in the metropolitan region motor fuel for the
15		operation of a motor vehicle upon public highways, the tax to
16		be at a rate not in excess of the rate of tax imposed under
17		paragraph (b) of this Section. The Board may provide for
18		details of the tax.
19		(d) The Board may impose a motor vehicle parking tax upon
20		the privilege of parking motor vehicles at off-street parking
21		facilities in the metropolitan region at which a fee is
22		charged, and may provide for reasonable classifications in and
23		exemptions to the tax, for administration and enforcement
24		thereof and for civil penalties and refunds thereunder and may
25		provide criminal penalties thereunder, the maximum penalties
26		not to exceed the maximum criminal penalties provided in the

HB4951 Enrolled - 809 - LRB103 38094 HLH 68226 b
1		Retailers' Occupation Tax Act. The Authority may collect and
2		enforce the tax itself or by contract with any unit of local
3		government. The State Department of Revenue shall have no
4		responsibility for the collection and enforcement unless the
5		Department agrees with the Authority to undertake the
6		collection and enforcement. As used in this paragraph, the
7		term "parking facility" means a parking area or structure
8		having parking spaces for more than 2 vehicles at which motor
9		vehicles are permitted to park in return for an hourly, daily,
10		or other periodic fee, whether publicly or privately owned,
11		but does not include parking spaces on a public street, the use
12		of which is regulated by parking meters.
13		(e) The Board may impose a Regional Transportation
14		Authority Retailers' Occupation Tax upon all persons engaged
15		in the business of selling tangible personal property at
16		retail in the metropolitan region. In Cook County, the tax
17		rate shall be 1.25% of the gross receipts from sales of
18		tangible personal property taxed at the 1% rate under the
19		Retailers' Occupation Tax Act (or at the 0% rate imposed under
20		this amendatory Act of the 102nd General Assembly), and 1% of
21		the gross receipts from other taxable sales made in the course
22		of that business. In DuPage, Kane, Lake, McHenry, and Will
23		counties, the tax rate shall be 0.75% of the gross receipts
24		from all taxable sales made in the course of that business. The
25		rate of tax imposed in DuPage, Kane, Lake, McHenry, and Will
26		counties under this Section on sales of aviation fuel on or

HB4951 Enrolled - 810 - LRB103 38094 HLH 68226 b
1		after December 1, 2019 shall, however, be 0.25% unless the
2		Regional Transportation Authority in DuPage, Kane, Lake,
3		McHenry, and Will counties has an "airport-related purpose"
4		and the additional 0.50% of the 0.75% tax on aviation fuel is
5		expended for airport-related purposes. If there is no
6		airport-related purpose to which aviation fuel tax revenue is
7		dedicated, then aviation fuel is excluded from the additional
8		0.50% of the 0.75% tax. The tax imposed under this Section and
9		all civil penalties that may be assessed as an incident
10		thereof shall be collected and enforced by the State
11		Department of Revenue. The Department shall have full power to
12		administer and enforce this Section; to collect all taxes and
13		penalties so collected in the manner hereinafter provided; and
14		to determine all rights to credit memoranda arising on account
15		of the erroneous payment of tax or penalty hereunder. In the
16		administration of, and compliance with this Section, the
17		Department and persons who are subject to this Section shall
18		have the same rights, remedies, privileges, immunities,
19		powers, and duties, and be subject to the same conditions,
20		restrictions, limitations, penalties, exclusions, exemptions,
21		and definitions of terms, and employ the same modes of
22		procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
23		1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
24		therein other than the State rate of tax), 2c, 3 (except as to
25		the disposition of taxes and penalties collected, and except
26		that the retailer's discount is not allowed for taxes paid on

HB4951 Enrolled - 811 - LRB103 38094 HLH 68226 b
1		aviation fuel that are subject to the revenue use requirements
2		of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
3		5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
4		10, 11, 12, and 13 of the Retailers' Occupation Tax Act and
5		Section 3-7 of the Uniform Penalty and Interest Act, as fully
6		as if those provisions were set forth herein.
7		The Board and DuPage, Kane, Lake, McHenry, and Will
8		counties must comply with the certification requirements for
9		airport-related purposes under Section 2-22 of the Retailers'
10		Occupation Tax Act. For purposes of this Section,
11		"airport-related purposes" has the meaning ascribed in Section
12		6z-20.2 of the State Finance Act. This exclusion for aviation
13		fuel only applies for so long as the revenue use requirements
14		of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
15		Authority.
16		Persons subject to any tax imposed under the authority
17		granted in this Section may reimburse themselves for their
18		seller's tax liability hereunder by separately stating the tax
19		as an additional charge, which charge may be stated in
20		combination in a single amount with State taxes that sellers
21		are required to collect under the Use Tax Act, under any
22		bracket schedules the Department may prescribe.
23		Whenever the Department determines that a refund should be
24		made under this Section to a claimant instead of issuing a
25		credit memorandum, the Department shall notify the State
26		Comptroller, who shall cause the warrant to be drawn for the

HB4951 Enrolled - 812 - LRB103 38094 HLH 68226 b
1		amount specified, and to the person named, in the notification
2		from the Department. The refund shall be paid by the State
3		Treasurer out of the Regional Transportation Authority tax
4		fund established under paragraph (n) of this Section or the
5		Local Government Aviation Trust Fund, as appropriate.
6		If a tax is imposed under this subsection (e), a tax shall
7		also be imposed under subsections (f) and (g) of this Section.
8		For the purpose of determining whether a tax authorized
9		under this Section is applicable, a retail sale by a producer
10		of coal or other mineral mined in Illinois, is a sale at retail
11		at the place where the coal or other mineral mined in Illinois
12		is extracted from the earth. This paragraph does not apply to
13		coal or other mineral when it is delivered or shipped by the
14		seller to the purchaser at a point outside Illinois so that the
15		sale is exempt under the Federal Constitution as a sale in
16		interstate or foreign commerce.
17		No tax shall be imposed or collected under this subsection
18		on the sale of a motor vehicle in this State to a resident of
19		another state if that motor vehicle will not be titled in this
20		State.
21		Nothing in this Section shall be construed to authorize
22		the Regional Transportation Authority to impose a tax upon the
23		privilege of engaging in any business that under the
24		Constitution of the United States may not be made the subject
25		of taxation by this State.
26		(f) If a tax has been imposed under paragraph (e), a

HB4951 Enrolled - 813 - LRB103 38094 HLH 68226 b
1		Regional Transportation Authority Service Occupation Tax shall
2		also be imposed upon all persons engaged, in the metropolitan
3		region in the business of making sales of service, who as an
4		incident to making the sales of service, transfer tangible
5		personal property within the metropolitan region, either in
6		the form of tangible personal property or in the form of real
7		estate as an incident to a sale of service. In Cook County, the
8		tax rate shall be: (1) 1.25% of the serviceman's cost price of
9		food prepared for immediate consumption and transferred
10		incident to a sale of service subject to the service
11		occupation tax by an entity licensed under the Hospital
12		Licensing Act, the Nursing Home Care Act, the Specialized
13		Mental Health Rehabilitation Act of 2013, the ID/DD Community
14		Care Act, or the MC/DD Act that is located in the metropolitan
15		region; (2) 1.25% of the selling price of tangible personal
16		property taxed at the 1% rate under the Service Occupation Tax
17		Act (or at the 0% rate imposed under this amendatory Act of the
18		102nd General Assembly); and (3) 1% of the selling price from
19		other taxable sales of tangible personal property transferred.
20		In DuPage, Kane, Lake, McHenry, and Will counties, the rate
21		shall be 0.75% of the selling price of all tangible personal
22		property transferred. The rate of tax imposed in DuPage, Kane,
23		Lake, McHenry, and Will counties under this Section on sales
24		of aviation fuel on or after December 1, 2019 shall, however,
25		be 0.25% unless the Regional Transportation Authority in
26		DuPage, Kane, Lake, McHenry, and Will counties has an

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1		"airport-related purpose" and the additional 0.50% of the
2		0.75% tax on aviation fuel is expended for airport-related
3		purposes. If there is no airport-related purpose to which
4		aviation fuel tax revenue is dedicated, then aviation fuel is
5		excluded from the additional 0.5% of the 0.75% tax.
6		The Board and DuPage, Kane, Lake, McHenry, and Will
7		counties must comply with the certification requirements for
8		airport-related purposes under Section 2-22 of the Retailers'
9		Occupation Tax Act. For purposes of this Section,
10		"airport-related purposes" has the meaning ascribed in Section
11		6z-20.2 of the State Finance Act. This exclusion for aviation
12		fuel only applies for so long as the revenue use requirements
13		of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
14		Authority.
15		The tax imposed under this paragraph and all civil
16		penalties that may be assessed as an incident thereof shall be
17		collected and enforced by the State Department of Revenue. The
18		Department shall have full power to administer and enforce
19		this paragraph; to collect all taxes and penalties due
20		hereunder; to dispose of taxes and penalties collected in the
21		manner hereinafter provided; and to determine all rights to
22		credit memoranda arising on account of the erroneous payment
23		of tax or penalty hereunder. In the administration of and
24		compliance with this paragraph, the Department and persons who
25		are subject to this paragraph shall have the same rights,
26		remedies, privileges, immunities, powers, and duties, and be

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1		subject to the same conditions, restrictions, limitations,
2		penalties, exclusions, exemptions, and definitions of terms,
3		and employ the same modes of procedure, as are prescribed in
4		Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
5		provisions therein other than the State rate of tax), 4
6		(except that the reference to the State shall be to the
7		Authority), 5, 7, 8 (except that the jurisdiction to which the
8		tax shall be a debt to the extent indicated in that Section 8
9		shall be the Authority), 9 (except as to the disposition of
10		taxes and penalties collected, and except that the returned
11		merchandise credit for this tax may not be taken against any
12		State tax, and except that the retailer's discount is not
13		allowed for taxes paid on aviation fuel that are subject to the
14		revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
15		47133), 10, 11, 12 (except the reference therein to Section 2b
16		of the Retailers' Occupation Tax Act), 13 (except that any
17		reference to the State shall mean the Authority), the first
18		paragraph of Section 15, 16, 17, 18, 19, and 20 of the Service
19		Occupation Tax Act and Section 3-7 of the Uniform Penalty and
20		Interest Act, as fully as if those provisions were set forth
21		herein.
22		Persons subject to any tax imposed under the authority
23		granted in this paragraph may reimburse themselves for their
24		serviceman's tax liability hereunder by separately stating the
25		tax as an additional charge, that charge may be stated in
26		combination in a single amount with State tax that servicemen

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1		are authorized to collect under the Service Use Tax Act, under
2		any bracket schedules the Department may prescribe.
3		Whenever the Department determines that a refund should be
4		made under this paragraph to a claimant instead of issuing a
5		credit memorandum, the Department shall notify the State
6		Comptroller, who shall cause the warrant 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 Regional Transportation Authority tax
10		fund established under paragraph (n) of this Section or the
11		Local Government Aviation Trust Fund, as appropriate.
12		Nothing in this paragraph shall be construed to authorize
13		the Authority to impose a tax upon the privilege of engaging in
14		any business that under the Constitution of the United States
15		may not be made the subject of taxation by the State.
16		(g) If a tax has been imposed under paragraph (e), a tax
17		shall also be imposed upon the privilege of using in the
18		metropolitan region, any item of tangible personal property
19		that is purchased outside the metropolitan region at retail
20		from a retailer, and that is titled or registered with an
21		agency of this State's government. In Cook County, the tax
22		rate shall be 1% of the selling price of the tangible personal
23		property, as "selling price" is defined in the Use Tax Act. In
24		DuPage, Kane, Lake, McHenry, and Will counties, the tax rate
25		shall be 0.75% of the selling price of the tangible personal
26		property, as "selling price" is defined in the Use Tax Act. The

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1		tax shall be collected from persons whose Illinois address for
2		titling or registration purposes is given as being in the
3		metropolitan region. The tax shall be collected by the
4		Department of Revenue for the Regional Transportation
5		Authority. The tax must be paid to the State, or an exemption
6		determination must be obtained from the Department of Revenue,
7		before the title or certificate of registration for the
8		property may be issued. The tax or proof of exemption may be
9		transmitted to the Department by way of the State agency with
10		which, or the State officer with whom, the tangible personal
11		property must be titled or registered if the Department and
12		the State agency or State officer determine that this
13		procedure will expedite the processing of applications for
14		title or registration.
15		The Department shall have full power to administer and
16		enforce this paragraph; to collect all taxes, penalties, and
17		interest due hereunder; to dispose of taxes, penalties, and
18		interest collected in the manner hereinafter provided; and to
19		determine all rights to credit memoranda or refunds arising on
20		account of the erroneous payment of tax, penalty, or interest
21		hereunder. In the administration of and compliance with this
22		paragraph, the Department and persons who are subject to this
23		paragraph shall have the same rights, remedies, privileges,
24		immunities, powers, and duties, and be subject to the same
25		conditions, restrictions, limitations, penalties, exclusions,
26		exemptions, and definitions of terms and employ the same modes

HB4951 Enrolled - 818 - LRB103 38094 HLH 68226 b
1		of procedure, as are prescribed in Sections 2 (except the
2		definition of "retailer maintaining a place of business in
3		this State"), 3 through 3-80 (except provisions pertaining to
4		the State rate of tax, and except provisions concerning
5		collection or refunding of the tax by retailers), 4, 11, 12,
6		12a, 14, 15, 19 (except the portions pertaining to claims by
7		retailers and except the last paragraph concerning refunds),
8		20, 21, and 22 of the Use Tax Act, and are not inconsistent
9		with this paragraph, as fully as if those provisions were set
10		forth herein.
11		Whenever the Department determines that a refund should be
12		made under this paragraph to a claimant instead of issuing a
13		credit memorandum, the Department shall notify the State
14		Comptroller, who shall cause the order to be drawn for the
15		amount specified, and to the person named in the notification
16		from the Department. The refund shall be paid by the State
17		Treasurer out of the Regional Transportation Authority tax
18		fund established under paragraph (n) of this Section.
19		(g-5) If, on January 1, 2025, a unit of local government
20		has in effect a tax under subsections (e), (f), and (g), or if,
21		after January 1, 2025, a unit of local government imposes a tax
22		under subsections (e), (f), and (g), then that tax applies to
23		leases of tangible personal property in effect, entered into,
24		or renewed on or after that date in the same manner as the tax
25		under this Section and in accordance with the changes made by
26		this amendatory Act of the 103rd General Assembly.

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1		(h) The Authority may impose a replacement vehicle tax of
2		$50 on any passenger car as defined in Section 1-157 of the
3		Illinois Vehicle Code purchased within the metropolitan region
4		by or on behalf of an insurance company to replace a passenger
5		car of an insured person in settlement of a total loss claim.
6		The tax imposed may not become effective before the first day
7		of the month following the passage of the ordinance imposing
8		the tax and receipt of a certified copy of the ordinance by the
9		Department of Revenue. The Department of Revenue shall collect
10		the tax for the Authority in accordance with Sections 3-2002
11		and 3-2003 of the Illinois Vehicle Code.
12		The Department shall immediately pay over to the State
13		Treasurer, ex officio, as trustee, all taxes collected
14		hereunder.
15		As soon as possible after the first day of each month,
16		beginning January 1, 2011, upon certification of the
17		Department of Revenue, the Comptroller shall order
18		transferred, and the Treasurer shall transfer, to the STAR
19		Bonds Revenue Fund the local sales tax increment, as defined
20		in the Innovation Development and Economy Act, collected under
21		this Section during the second preceding calendar month for
22		sales within a STAR bond district.
23		After the monthly transfer to the STAR Bonds Revenue Fund,
24		on or before the 25th day of each calendar month, the
25		Department shall prepare and certify to the Comptroller the
26		disbursement of stated sums of money to the Authority. The

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1		amount to be paid to the Authority shall be the amount
2		collected hereunder during the second preceding calendar month
3		by the Department, less any amount determined by the
4		Department to be necessary for the payment of refunds, and
5		less any amounts that are transferred to the STAR Bonds
6		Revenue Fund. Within 10 days after receipt by the Comptroller
7		of the disbursement certification to the Authority provided
8		for in this Section to be given to the Comptroller by the
9		Department, the Comptroller shall cause the orders to be drawn
10		for that amount in accordance with the directions contained in
11		the certification.
12		(i) The Board may not impose any other taxes except as it
13		may from time to time be authorized by law to impose.
14		(j) 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), (e), (f) or
19		(g) of this Section and no additional registration shall be
20		required under the tax. A certificate issued under the Use Tax
21		Act or the Service Use Tax Act shall be applicable with regard
22		to any tax imposed under paragraph (c) of this Section.
23		(k) The provisions of any tax imposed under paragraph (c)
24		of this Section shall conform as closely as may be practicable
25		to the provisions of the Use Tax Act, including without
26		limitation conformity as to penalties with respect to the tax

HB4951 Enrolled - 821 - LRB103 38094 HLH 68226 b
1		imposed and as to the powers of the State Department of Revenue
2		to promulgate and enforce rules and regulations relating to
3		the administration and enforcement of the provisions of the
4		tax imposed. The taxes shall be imposed only on use within the
5		metropolitan region and at rates as provided in the paragraph.
6		(l) The Board in imposing any tax as provided in
7		paragraphs (b) and (c) of this Section, shall, after seeking
8		the advice of the State Department of Revenue, provide means
9		for retailers, users or purchasers of motor fuel for purposes
10		other than those with regard to which the taxes may be imposed
11		as provided in those paragraphs to receive refunds of taxes
12		improperly paid, which provisions may be at variance with the
13		refund provisions as applicable under the Municipal Retailers
14		Occupation Tax Act. The State Department of Revenue may
15		provide for certificates of registration for users or
16		purchasers of motor fuel for purposes other than those with
17		regard to which taxes may be imposed as provided in paragraphs
18		(b) and (c) of this Section to facilitate the reporting and
19		nontaxability of the exempt sales or uses.
20		(m) Any ordinance imposing or discontinuing any tax under
21		this Section shall be adopted and a certified copy thereof
22		filed with the Department on or before June 1, whereupon the
23		Department of Revenue shall proceed to administer and enforce
24		this Section on behalf of the Regional Transportation
25		Authority as of September 1 next following such adoption and
26		filing. Beginning January 1, 1992, an ordinance or resolution

HB4951 Enrolled - 822 - LRB103 38094 HLH 68226 b
1		imposing or discontinuing the tax hereunder shall be adopted
2		and a certified copy thereof filed with the Department on or
3		before the first day of July, whereupon the Department shall
4		proceed to administer and enforce this Section as of the first
5		day of October next following such adoption and filing.
6		Beginning January 1, 1993, an ordinance or resolution
7		imposing, increasing, decreasing, or discontinuing the tax
8		hereunder shall be adopted and a certified copy thereof filed
9		with the Department, whereupon the Department shall proceed to
10		administer and enforce this Section as of the first day of the
11		first month to occur not less than 60 days following such
12		adoption and filing. Any ordinance or resolution of the
13		Authority imposing a tax under this Section and in effect on
14		August 1, 2007 shall remain in full force and effect and shall
15		be administered by the Department of Revenue under the terms
16		and conditions and rates of tax established by such ordinance
17		or resolution until the Department begins administering and
18		enforcing an increased tax under this Section as authorized by
19		Public Act 95-708. The tax rates authorized by Public Act
20		95-708 are effective only if imposed by ordinance of the
21		Authority.
22		(n) Except as otherwise provided in this subsection (n),
23		the State Department of Revenue shall, upon collecting any
24		taxes as provided in this Section, pay the taxes over to the
25		State Treasurer as trustee for the Authority. The taxes shall
26		be held in a trust fund outside the State Treasury. If an

HB4951 Enrolled - 823 - LRB103 38094 HLH 68226 b
1		airport-related purpose has been certified, taxes and
2		penalties collected in DuPage, Kane, Lake, McHenry and Will
3		counties on aviation fuel sold on or after December 1, 2019
4		from the 0.50% of the 0.75% rate shall be immediately paid over
5		by the Department to the State Treasurer, ex officio, as
6		trustee, for deposit into the Local Government Aviation Trust
7		Fund. The Department shall only pay moneys into the Local
8		Government Aviation Trust Fund under this Act for so long as
9		the revenue use requirements of 49 U.S.C. 47107(b) and 49
10		U.S.C. 47133 are binding on the Authority. On or before the
11		25th day of each calendar month, the State Department of
12		Revenue shall prepare and certify to the Comptroller of the
13		State of Illinois and to the Authority (i) the amount of taxes
14		collected in each county other than Cook County in the
15		metropolitan region, (not including, if an airport-related
16		purpose has been certified, the taxes and penalties collected
17		from the 0.50% of the 0.75% rate on aviation fuel sold on or
18		after December 1, 2019 that are deposited into the Local
19		Government Aviation Trust Fund) (ii) the amount of taxes
20		collected within the City of Chicago, and (iii) the amount
21		collected in that portion of Cook County outside of Chicago,
22		each amount less the amount necessary for the payment of
23		refunds to taxpayers located in those areas described in items
24		(i), (ii), and (iii), and less 1.5% of the remainder, which
25		shall be transferred from the trust fund into the Tax
26		Compliance and Administration Fund. The Department, at the

HB4951 Enrolled - 824 - LRB103 38094 HLH 68226 b
1		time of each monthly disbursement to the Authority, shall
2		prepare and certify to the State Comptroller the amount to be
3		transferred into the Tax Compliance and Administration Fund
4		under this subsection. Within 10 days after receipt by the
5		Comptroller of the certification of the amounts, the
6		Comptroller shall cause an order to be drawn for the transfer
7		of the amount certified into the Tax Compliance and
8		Administration Fund and the payment of two-thirds of the
9		amounts certified in item (i) of this subsection to the
10		Authority and one-third of the amounts certified in item (i)
11		of this subsection to the respective counties other than Cook
12		County and the amount certified in items (ii) and (iii) of this
13		subsection to the Authority.
14		In addition to the disbursement required by the preceding
15		paragraph, an allocation shall be made in July 1991 and each
16		year thereafter to the Regional Transportation Authority. The
17		allocation shall be made in an amount equal to the average
18		monthly distribution during the preceding calendar year
19		(excluding the 2 months of lowest receipts) and the allocation
20		shall include the amount of average monthly distribution from
21		the Regional Transportation Authority Occupation and Use Tax
22		Replacement Fund. The distribution made in July 1992 and each
23		year thereafter under this paragraph and the preceding
24		paragraph shall be reduced by the amount allocated and
25		disbursed under this paragraph in the preceding calendar year.
26		The Department of Revenue shall prepare and certify to the

HB4951 Enrolled - 825 - LRB103 38094 HLH 68226 b
1		Comptroller for disbursement the allocations made in
2		accordance with this paragraph.
3		(o) Failure to adopt a budget ordinance or otherwise to
4		comply with Section 4.01 of this Act or to adopt a Five-year
5		Capital Program or otherwise to comply with paragraph (b) of
6		Section 2.01 of this Act shall not affect the validity of any
7		tax imposed by the Authority otherwise in conformity with law.
8		(p) At no time shall a public transportation tax or motor
9		vehicle parking tax authorized under paragraphs (b), (c), and
10		(d) of this Section be in effect at the same time as any
11		retailers' occupation, use or service occupation tax
12		authorized under paragraphs (e), (f), and (g) of this Section
13		is in effect.
14		Any taxes imposed under the authority provided in
15		paragraphs (b), (c), and (d) shall remain in effect only until
16		the time as any tax authorized by paragraph (e), (f), or (g) of
17		this Section are imposed and becomes effective. Once any tax
18		authorized by paragraph (e), (f), or (g) is imposed the Board
19		may not reimpose taxes as authorized in paragraphs (b), (c),
20		and (d) of the Section unless any tax authorized by paragraph
21		(e), (f), or (g) of this Section becomes ineffective by means
22		other than an ordinance of the Board.
23		(q) Any existing rights, remedies and obligations
24		(including enforcement by the Regional Transportation
25		Authority) arising under any tax imposed under paragraph (b),
26		(c), or (d) of this Section shall not be affected by the

HB4951 Enrolled - 826 - LRB103 38094 HLH 68226 b
1		imposition of a tax under paragraph (e), (f), or (g) of this
2		Section.
3		(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
4		101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
5		ARTICLE 80.
6		Section 80-5. The Cigarette Tax Act is amended by changing
7		Sections 4b, 9, 9e, and 9f as follows:
8		(35 ILCS 130/4b) (from Ch. 120, par. 453.4b)
9		Sec. 4b. (a) The Department may, in its discretion, upon
10		application, issue permits authorizing the payment of the tax
11		herein imposed by out-of-State cigarette manufacturers who are
12		not required to be licensed as distributors of cigarettes in
13		this State, but who elect to qualify under this Act as
14		distributors of cigarettes in this State, and who, to the
15		satisfaction of the Department, furnish adequate security to
16		insure payment of the tax, provided that any such permit shall
17		extend only to cigarettes which such permittee manufacturer
18		places in original packages that are contained inside a sealed
19		transparent wrapper. Such permits shall be issued without
20		charge in such form as the Department may prescribe and shall
21		not be transferable or assignable.
22		The following are ineligible to receive a distributor's
23		permit under this subsection:

HB4951 Enrolled - 827 - LRB103 38094 HLH 68226 b
1		(1) a person who is not of good character and
2		reputation in the community in which he resides; the
3		Department may consider past conviction of a felony but
4		the conviction shall not operate as an absolute bar to
5		receiving a permit;
6		(2) a person who has been convicted of a felony under
7		any Federal or State law, if the Department, after
8		investigation and a hearing and consideration of
9		mitigating factors and evidence of rehabilitation
10		contained in the applicant's record, including those in
11		Section 4i of this Act, determines that such person has
12		not been sufficiently rehabilitated to warrant the public
13		trust and the conviction will impair the ability of the
14		person to engage in the position for which a permit is
15		sought;
16		(3) a corporation, if any officer, manager or director
17		thereof, or any stockholder or stockholders owning in the
18		aggregate more than 5% of the stock of such corporation,
19		would not be eligible to receive a permit under this Act
20		for any reason.
21		With respect to cigarettes which come within the scope of
22		such a permit and which any such permittee delivers or causes
23		to be delivered in Illinois to licensed distributors, such
24		permittee shall remit the tax imposed by this Act at the times
25		provided for in Section 3 of this Act. Each such remittance
26		shall be accompanied by a return filed with the Department on a

HB4951 Enrolled - 828 - LRB103 38094 HLH 68226 b
1		form to be prescribed and furnished by the Department and
2		shall disclose such information as the Department may lawfully
3		require. Information that the Department may lawfully require
4		includes information related to the uniform regulation and
5		taxation of cigarettes. The Department may promulgate rules to
6		require that the permittee's return be accompanied by
7		appropriate computer-generated magnetic media supporting
8		schedule data in the format prescribed by the Department,
9		unless, as provided by rule, the Department grants an
10		exception upon petition of the permittee. Each such return
11		shall be accompanied by a copy of each invoice rendered by the
12		permittee to any licensed distributor to whom the permittee
13		delivered cigarettes of the type covered by the permit (or
14		caused cigarettes of the type covered by the permit to be
15		delivered) in Illinois during the period covered by such
16		return.
17		Such permit may be suspended, canceled or revoked when, at
18		any time, the Department considers that the security given is
19		inadequate, or that such tax can more effectively be collected
20		from distributors located in this State, or whenever the
21		permittee violates any provision of this Act or any lawful
22		rule or regulation issued by the Department pursuant to this
23		Act or is determined to be ineligible for a distributor's
24		permit under this Act as provided in this Section, whenever
25		the permittee shall notify the Department in writing of his
26		desire to have the permit canceled. The Department shall have

HB4951 Enrolled - 829 - LRB103 38094 HLH 68226 b
1		the power, in its discretion, to issue a new permit after such
2		suspension, cancellation or revocation, except when the person
3		who would receive the permit is ineligible to receive a
4		distributor's permit under this Act.
5		All permits issued by the Department under this Act shall
6		be valid for not to exceed one year after issuance unless
7		sooner revoked, canceled or suspended as in this Act provided.
8		(b) Out-of-state cigarette manufacturers who are not
9		required to be licensed as distributors of cigarettes in this
10		State and who do not elect to obtain approval under subsection
11		4b(a) to pay the tax imposed by this Act, but who elect to
12		qualify under this Act as distributors of cigarettes in this
13		State for purposes of shipping and delivering unstamped
14		original packages of cigarettes into this State to licensed
15		distributors, shall obtain a permit from the Department. These
16		permits shall be issued without charge in such form as the
17		Department may prescribe and shall not be transferable or
18		assignable.
19		The following are ineligible to receive a distributor's
20		permit under this subsection:
21		(1) a person who is not of good character and
22		reputation in the community in which he or she resides;
23		the Department may consider past conviction of a felony
24		but the conviction shall not operate as an absolute bar to
25		receiving a permit;
26		(2) a person who has been convicted of a felony under

HB4951 Enrolled - 830 - LRB103 38094 HLH 68226 b
1		any federal or State law, if the Department, after
2		investigation and a hearing and consideration of
3		mitigating factors and evidence of rehabilitation
4		contained in the applicant's record, including those set
5		forth in Section 4i of this Act, determines that the
6		person has not been sufficiently rehabilitated to warrant
7		the public trust and the conviction will impair the
8		ability of the person to engage in the position for which a
9		permit is sought; and
10		(3) a corporation, if any officer, manager, or
11		director thereof, or any stockholder or stockholders
12		owning in the aggregate more than 5% of the stock of the
13		corporation, would not be eligible to receive a permit
14		under this Act for any reason.
15		With respect to original packages of cigarettes that such
16		permittee delivers or causes to be delivered in Illinois and
17		distributes to the public for promotional purposes without
18		consideration, the permittee shall pay the tax imposed by this
19		Act by remitting the amount thereof to the Department by the
20		5th day of each month covering cigarettes shipped or otherwise
21		delivered in Illinois for those purposes during the preceding
22		calendar month. The permittee, before delivering those
23		cigarettes or causing those cigarettes to be delivered in this
24		State, shall evidence his or her obligation to remit the taxes
25		due with respect to those cigarettes by imprinting language to
26		be prescribed by the Department on each original package of

HB4951 Enrolled - 831 - LRB103 38094 HLH 68226 b
1		cigarettes, in such place thereon and in such manner also to be
2		prescribed by the Department. The imprinted language shall
3		acknowledge the permittee's payment of or liability for the
4		tax imposed by this Act with respect to the distribution of
5		those cigarettes.
6		With respect to cigarettes that the permittee delivers or
7		causes to be delivered in Illinois to Illinois licensed
8		distributors or distributed to the public for promotional
9		purposes, the permittee shall, by the 5th day of each month,
10		file with the Department, a report covering cigarettes shipped
11		or otherwise delivered in Illinois to licensed distributors or
12		distributed to the public for promotional purposes during the
13		preceding calendar month on a form to be prescribed and
14		furnished by the Department and shall disclose such other
15		information as the Department may lawfully require.
16		Information that the Department may lawfully require includes
17		information related to the uniform regulation and taxation of
18		cigarettes. The Department may promulgate rules to require
19		that the permittee's report be accompanied by appropriate
20		computer-generated magnetic media supporting schedule data in
21		the format prescribed by the Department, unless, as provided
22		by rule, the Department grants an exception upon petition of
23		the permittee. Each such report shall be accompanied by a copy
24		of each invoice rendered by the permittee to any purchaser to
25		whom the permittee delivered cigarettes of the type covered by
26		the permit (or caused cigarettes of the type covered by the

HB4951 Enrolled - 832 - LRB103 38094 HLH 68226 b
1		permit to be delivered) in Illinois during the period covered
2		by such report.
3		Such permit may be suspended, canceled, or revoked
4		whenever the permittee violates any provision of this Act or
5		any lawful rule or regulation issued by the Department
6		pursuant to this Act, is determined to be ineligible for a
7		distributor's permit under this Act as provided in this
8		Section, or notifies the Department in writing of his or her
9		desire to have the permit canceled. The Department shall have
10		the power, in its discretion, to issue a new permit after such
11		suspension, cancellation, or revocation, except when the
12		person who would receive the permit is ineligible to receive a
13		distributor's permit under this Act.
14		All permits issued by the Department under this Act shall
15		be valid for a period not to exceed one year after issuance
16		unless sooner revoked, canceled, or suspended as provided in
17		this Act.
18		(Source: P.A. 100-286, eff. 1-1-18.)
19		(35 ILCS 130/9) (from Ch. 120, par. 453.9)
20		Sec. 9. Returns; remittance. Every distributor who is
21		required to procure a license under this Act, but who is not a
22		manufacturer of cigarettes in original packages which are
23		contained in a sealed transparent wrapper, shall, on or before
24		the 15th day of each calendar month, file a return with the
25		Department, showing the quantity of cigarettes manufactured

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1		during the preceding calendar month, the quantity of
2		cigarettes brought into this State or caused to be brought
3		into this State from outside this State during the preceding
4		calendar month without authorized evidence on the original
5		packages of such cigarettes underneath the sealed transparent
6		wrapper thereof that the tax liability imposed by this Act has
7		been assumed by the out-of-State seller of such cigarettes,
8		the quantity of cigarettes purchased tax-paid during the
9		preceding calendar month either within or outside this State,
10		the quantity of cigarettes sold by manufacturer
11		representatives on behalf of the distributor, the quantity of
12		cigarettes sold to manufacturer representatives, and the
13		quantity of cigarettes sold or otherwise disposed of during
14		the preceding calendar month. Such return shall be filed upon
15		forms furnished and prescribed by the Department and shall
16		contain such other information as the Department may
17		reasonably require. Information that the Department may
18		reasonably require includes information related to the uniform
19		regulation and taxation of cigarettes. The Department may
20		promulgate rules to require that the distributor's return be
21		accompanied by appropriate computer-generated magnetic media
22		supporting schedule data in the format required by the
23		Department, unless, as provided by rule, the Department grants
24		an exception upon petition of a distributor.
25		Illinois manufacturers of cigarettes in original packages
26		which are contained inside a sealed transparent wrapper shall

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1		file a return by the 5th day of each month covering the
2		preceding calendar month. Each such return shall be
3		accompanied by the appropriate remittance for tax as provided
4		in Section 3 of this Act. Each such return shall show the
5		quantity of such cigarettes manufactured during the period
6		covered by the return, the quantity of cigarettes sold or
7		otherwise disposed of during the period covered by the return
8		and such other information as the Department may lawfully
9		require. Information that the Department may lawfully require
10		includes information related to the uniform regulation and
11		taxation of cigarettes. Such returns shall be filed on forms
12		prescribed and furnished by the Department. Each such return
13		shall be accompanied by a copy of each invoice rendered by such
14		manufacturer to any purchaser to whom such manufacturer
15		delivered cigarettes (or caused cigarettes to be delivered)
16		during the period covered by the return. The Department may
17		promulgate rules to require that the manufacturer's return be
18		accompanied by appropriate computer-generated magnetic media
19		supporting schedule data in the format required by the
20		Department, unless, as provided by rule, the Department grants
21		an exception upon petition of a manufacturer.
22		(Source: P.A. 97-587, eff. 8-26-11.)
23		(35 ILCS 130/9e)
24		Sec. 9e. Secondary distributors; reports. Every secondary
25		distributor who is required to procure a license under this

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1		Act shall, on or before the 15th day of each calendar month,
2		file a report with the Department, showing the quantity of
3		cigarettes purchased during the preceding calendar month
4		either within or outside this State, and the quantity of
5		cigarettes sold to retailers or otherwise disposed of during
6		the preceding calendar month. Such reports shall be filed
7		electronically in such form prescribed by the Department and
8		shall contain such other information as the Department may
9		reasonably require. Information that the Department may
10		reasonably require includes information related to the uniform
11		regulation and taxation of cigarettes. The secondary
12		distributor's report shall be accompanied by appropriate
13		computer generated magnetic media supporting schedule data in
14		the format required by the Department, unless, as provided by
15		rule, the Department grants an exception upon petition of a
16		secondary distributor.
17		A certification by the Director of the Department that a
18		report has not been filed, or that information has not been
19		supplied pursuant to the provisions of this Act, shall be
20		prima facie evidence thereof.
21		(Source: P.A. 96-1027, eff. 7-12-10.)
22		(35 ILCS 130/9f)
23		Sec. 9f. Manufacturer representatives; reports. Every
24		manufacturer with authority to maintain manufacturer
25		representatives as defined by Section 4f of this Act shall, on

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1		or before the 15th day of each calendar month, file a report
2		with the Department, showing the quantity of cigarettes
3		purchased from licensed distributors during the preceding
4		calendar month, either within or outside this State, and the
5		quantity of cigarettes sold to retailers or otherwise disposed
6		of during the preceding calendar month. Such reports shall be
7		filed in the form prescribed by the Department and shall
8		contain such other information as the Department may
9		reasonably require. Information that the Department may
10		reasonably require includes information related to the uniform
11		regulation and taxation of cigarettes. The report shall be
12		filed electronically and be accompanied by appropriate
13		computer generated magnetic media supporting schedule data in
14		the format required by the Department, unless, as provided by
15		rule, the Department grants an exception upon petition of a
16		manufacturer with authority to maintain manufacturer
17		representatives in this State.
18		A certification by the Director of the Department that a
19		report has not been filed, or that information has not been
20		supplied pursuant to the provisions of this Act, shall be
21		prima facie evidence thereof.
22		(Source: P.A. 97-587, eff. 8-26-11.)
23		Section 80-10. The Cigarette Use Tax Act is amended by
24		changing Sections 11 and 11a as follows:

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1		(35 ILCS 135/11) (from Ch. 120, par. 453.41)
2		Sec. 11. Return by distributor or manufacturer. Every
3		distributor, who is required or authorized to collect tax
4		under this Act, but who is not a manufacturer of cigarettes in
5		original packages which are contained in a sealed transparent
6		wrapper, shall, on or before the 15th day of each calendar
7		month, file a return with the Department, showing such
8		information as the Department may reasonably require.
9		Information that the Department may reasonably require
10		includes information related to the uniform regulation and
11		taxation of cigarettes. The Department may promulgate rules to
12		require that the distributor's return be accompanied by
13		appropriate computer-generated magnetic media supporting
14		schedule data in the format required by the Department,
15		unless, as provided by rule, the Department grants an
16		exception upon petition of a distributor.
17		Illinois manufacturers of cigarettes in original packages
18		which are contained inside a sealed transparent wrapper shall
19		file a return by the 5th day of each month covering the
20		preceding calendar month. Each such return shall be
21		accompanied by the appropriate remittance for tax as provided
22		in Section 3 of this Act. Each such return shall disclose such
23		information as the Department may lawfully require.
24		Information that the Department may lawfully require includes
25		information related to the uniform regulation and taxation of
26		cigarettes. Each such return shall be accompanied by a copy of

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1		each invoice rendered by such manufacturer to any purchaser to
2		whom such manufacturer delivered cigarettes (or caused
3		cigarettes to be delivered) during the period covered by the
4		return. The Department may promulgate rules to require that
5		the manufacturer's return be accompanied by appropriate
6		computer-generated magnetic media supporting schedule data in
7		the format required by the Department, unless, as provided by
8		rule, the Department grants an exception upon petition of a
9		manufacturer.
10		No distributor shall be required to return information to
11		the extent to which the reporting of such information would be
12		a duplication of such distributor's reporting of information
13		in any return which he is required to file with the Department
14		under the Cigarette Tax Act. Returns shall be filed on forms
15		prescribed by the Department.
16		(Source: P.A. 92-322, eff. 1-1-02.)
17		(35 ILCS 135/11a)
18		Sec. 11a. Secondary distributors; reports. Every secondary
19		distributor who is required to procure, or is authorized to
20		procure, a license under this Act shall, on or before the 15th
21		day of each calendar month, file a report with the Department,
22		showing the quantity of cigarettes purchased during the
23		preceding calendar month either within or outside this State,
24		and the quantity of cigarettes sold to Illinois retailers or
25		otherwise disposed of during the preceding calendar month.

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1		Such reports shall be filed electronically in such form
2		prescribed by the Department and shall contain such other
3		information as the Department may reasonably require.
4		Information that the Department may reasonably require
5		includes information related to the uniform regulation and
6		taxation of cigarettes. The secondary distributor's report
7		shall be accompanied by appropriate computer generated
8		magnetic media supporting schedule data in the format required
9		by the Department, unless, as provided by rule, the Department
10		grants an exception upon petition of a secondary distributor.
11		A certification by the Director of the Department that a
12		report has not been filed, or that information has not been
13		supplied pursuant to the provisions of this Act, shall be
14		prima facie evidence thereof.
15		(Source: P.A. 96-1027, eff. 7-12-10.)
16		Section 80-15. 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

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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) The Department may adopt rules to require the
21		electronic filing of any return or document required to be
22		filed under this Act. Those rules may provide for exceptions
23		from the filing requirement set forth in this paragraph for
24		persons who demonstrate that they do not have access to the
25		Internet and petition the Department to waive the electronic
26		filing requirement.

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1		(e) If any payment provided for in this Section exceeds
2		the distributor's liabilities under this Act, as shown on an
3		original return, the distributor may credit such excess
4		payment against liability subsequently to be remitted to the
5		Department under this Act, in accordance with reasonable rules
6		adopted by the Department.
7		(Source: P.A. 100-1171, eff. 1-4-19.)
8		ARTICLE 85.
9		Section 85-5. The Illinois Income Tax Act is amended by
10		changing Section 304 as follows:
11		(35 ILCS 5/304) (from Ch. 120, par. 3-304)
12		Sec. 304. Business income of persons other than residents.
13		(a) In general. The business income of a person other than
14		a resident shall be allocated to this State if such person's
15		business income is derived solely from this State. If a person
16		other than a resident derives business income from this State
17		and one or more other states, then, for tax years ending on or
18		before December 30, 1998, and except as otherwise provided by
19		this Section, such person's business income shall be
20		apportioned to this State by multiplying the income by a
21		fraction, the numerator of which is the sum of the property
22		factor (if any), the payroll factor (if any) and 200% of the
23		sales factor (if any), and the denominator of which is 4

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1		reduced by the number of factors other than the sales factor
2		which have a denominator of zero and by an additional 2 if the
3		sales factor has a denominator of zero. For tax years ending on
4		or after December 31, 1998, and except as otherwise provided
5		by this Section, persons other than residents who derive
6		business income from this State and one or more other states
7		shall compute their apportionment factor by weighting their
8		property, payroll, and sales factors as provided in subsection
9		(h) of this Section.
10		(1) Property factor.
11		(A) The property factor is a fraction, the numerator
12		of which is the average value of the person's real and
13		tangible personal property owned or rented and used in the
14		trade or business in this State during the taxable year
15		and the denominator of which is the average value of all
16		the person's real and tangible personal property owned or
17		rented and used in the trade or business during the
18		taxable year.
19		(B) Property owned by the person is valued at its
20		original cost. Property rented by the person is valued at
21		8 times the net annual rental rate. Net annual rental rate
22		is the annual rental rate paid by the person less any
23		annual rental rate received by the person from
24		sub-rentals.
25		(C) The average value of property shall be determined
26		by averaging the values at the beginning and ending of the

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1		taxable year, but the Director may require the averaging
2		of monthly values during the taxable year if reasonably
3		required to reflect properly the average value of the
4		person's property.
5		(2) Payroll factor.
6		(A) The payroll factor is a fraction, the numerator of
7		which is the total amount paid in this State during the
8		taxable year by the person for compensation, and the
9		denominator of which is the total compensation paid
10		everywhere during the taxable year.
11		(B) Compensation is paid in this State if:
12		(i) The individual's service is performed entirely
13		within this State;
14		(ii) The individual's service is performed both
15		within and without this State, but the service
16		performed without this State is incidental to the
17		individual's service performed within this State; or
18		(iii) For tax years ending prior to December 31,
19		2020, some of the service is performed within this
20		State and either the base of operations, or if there is
21		no base of operations, the place from which the
22		service is directed or controlled is within this
23		State, or the base of operations or the place from
24		which the service is directed or controlled is not in
25		any state in which some part of the service is
26		performed, but the individual's residence is in this

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1		State. For tax years ending on or after December 31,
2		2020, compensation is paid in this State if some of the
3		individual's service is performed within this State,
4		the individual's service performed within this State
5		is nonincidental to the individual's service performed
6		without this State, and the individual's service is
7		performed within this State for more than 30 working
8		days during the tax year. The amount of compensation
9		paid in this State shall include the portion of the
10		individual's total compensation for services performed
11		on behalf of his or her employer during the tax year
12		which the number of working days spent within this
13		State during the tax year bears to the total number of
14		working days spent both within and without this State
15		during the tax year. For purposes of this paragraph:
16		(a) The term "working day" means all days
17		during the tax year in which the individual
18		performs duties on behalf of his or her employer.
19		All days in which the individual performs no
20		duties on behalf of his or her employer (e.g.,
21		weekends, vacation days, sick days, and holidays)
22		are not working days.
23		(b) A working day is spent within this State
24		if:
25		(1) the individual performs service on
26		behalf of the employer and a greater amount of

HB4951 Enrolled - 845 - LRB103 38094 HLH 68226 b
1		time on that day is spent by the individual
2		performing duties on behalf of the employer
3		within this State, without regard to time
4		spent traveling, than is spent performing
5		duties on behalf of the employer without this
6		State; or
7		(2) the only service the individual
8		performs on behalf of the employer on that day
9		is traveling to a destination within this
10		State, and the individual arrives on that day.
11		(c) Working days spent within this State do
12		not include any day in which the employee is
13		performing services in this State during a
14		disaster period solely in response to a request
15		made to his or her employer by the government of
16		this State, by any political subdivision of this
17		State, or by a person conducting business in this
18		State to perform disaster or emergency-related
19		services in this State. For purposes of this item
20		(c):
21		"Declared State disaster or emergency"
22		means a disaster or emergency event (i) for
23		which a Governor's proclamation of a state of
24		emergency has been issued or (ii) for which a
25		Presidential declaration of a federal major
26		disaster or emergency has been issued.

HB4951 Enrolled - 846 - LRB103 38094 HLH 68226 b
1		"Disaster period" means a period that
2		begins 10 days prior to the date of the
3		Governor's proclamation or the President's
4		declaration (whichever is earlier) and extends
5		for a period of 60 calendar days after the end
6		of the declared disaster or emergency period.
7		"Disaster or emergency-related services"
8		means repairing, renovating, installing,
9		building, or rendering services or conducting
10		other business activities that relate to
11		infrastructure that has been damaged,
12		impaired, or destroyed by the declared State
13		disaster or emergency.
14		"Infrastructure" means property and
15		equipment owned or used by a public utility,
16		communications network, broadband and internet
17		service provider, cable and video service
18		provider, electric or gas distribution system,
19		or water pipeline that provides service to
20		more than one customer or person, including
21		related support facilities. "Infrastructure"
22		includes, but is not limited to, real and
23		personal property such as buildings, offices,
24		power lines, cable lines, poles,
25		communications lines, pipes, structures, and
26		equipment.

HB4951 Enrolled - 847 - LRB103 38094 HLH 68226 b
1		(iv) Compensation paid to nonresident professional
2		athletes.
3		(a) General. The Illinois source income of a
4		nonresident individual who is a member of a
5		professional athletic team includes the portion of the
6		individual's total compensation for services performed
7		as a member of a professional athletic team during the
8		taxable year which the number of duty days spent
9		within this State performing services for the team in
10		any manner during the taxable year bears to the total
11		number of duty days spent both within and without this
12		State during the taxable year.
13		(b) Travel days. Travel days that do not involve
14		either a game, practice, team meeting, or other
15		similar team event are not considered duty days spent
16		in this State. However, such travel days are
17		considered in the total duty days spent both within
18		and without this State.
19		(c) Definitions. For purposes of this subpart
20		(iv):
21		(1) The term "professional athletic team"
22		includes, but is not limited to, any professional
23		baseball, basketball, football, soccer, or hockey
24		team.
25		(2) The term "member of a professional
26		athletic team" includes those employees who are

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1		active players, players on the disabled list, and
2		any other persons required to travel and who
3		travel with and perform services on behalf of a
4		professional athletic team on a regular basis.
5		This includes, but is not limited to, coaches,
6		managers, and trainers.
7		(3) Except as provided in items (C) and (D) of
8		this subpart (3), the term "duty days" means all
9		days during the taxable year from the beginning of
10		the professional athletic team's official
11		pre-season training period through the last game
12		in which the team competes or is scheduled to
13		compete. Duty days shall be counted for the year
14		in which they occur, including where a team's
15		official pre-season training period through the
16		last game in which the team competes or is
17		scheduled to compete, occurs during more than one
18		tax year.
19		(A) Duty days shall also include days on
20		which a member of a professional athletic team
21		performs service for a team on a date that
22		does not fall within the foregoing period
23		(e.g., participation in instructional leagues,
24		the "All Star Game", or promotional
25		"caravans"). Performing a service for a
26		professional athletic team includes conducting

HB4951 Enrolled - 849 - LRB103 38094 HLH 68226 b
1		training and rehabilitation activities, when
2		such activities are conducted at team
3		facilities.
4		(B) Also included in duty days are game
5		days, practice days, days spent at team
6		meetings, promotional caravans, preseason
7		training camps, and days served with the team
8		through all post-season games in which the
9		team competes or is scheduled to compete.
10		(C) Duty days for any person who joins a
11		team during the period from the beginning of
12		the professional athletic team's official
13		pre-season training period through the last
14		game in which the team competes, or is
15		scheduled to compete, shall begin on the day
16		that person joins the team. Conversely, duty
17		days for any person who leaves a team during
18		this period shall end on the day that person
19		leaves the team. Where a person switches teams
20		during a taxable year, a separate duty-day
21		calculation shall be made for the period the
22		person was with each team.
23		(D) Days for which a member of a
24		professional athletic team is not compensated
25		and is not performing services for the team in
26		any manner, including days when such member of

HB4951 Enrolled - 850 - LRB103 38094 HLH 68226 b
1		a professional athletic team has been
2		suspended without pay and prohibited from
3		performing any services for the team, shall
4		not be treated as duty days.
5		(E) Days for which a member of a
6		professional athletic team is on the disabled
7		list and does not conduct rehabilitation
8		activities at facilities of the team, and is
9		not otherwise performing services for the team
10		in Illinois, shall not be considered duty days
11		spent in this State. All days on the disabled
12		list, however, are considered to be included
13		in total duty days spent both within and
14		without this State.
15		(4) The term "total compensation for services
16		performed as a member of a professional athletic
17		team" means the total compensation received during
18		the taxable year for services performed:
19		(A) from the beginning of the official
20		pre-season training period through the last
21		game in which the team competes or is
22		scheduled to compete during that taxable year;
23		and
24		(B) during the taxable year on a date
25		which does not fall within the foregoing
26		period (e.g., participation in instructional

HB4951 Enrolled - 851 - LRB103 38094 HLH 68226 b
1		leagues, the "All Star Game", or promotional
2		caravans).
3		This compensation shall include, but is not
4		limited to, salaries, wages, bonuses as described
5		in this subpart, and any other type of
6		compensation paid during the taxable year to a
7		member of a professional athletic team for
8		services performed in that year. This compensation
9		does not include strike benefits, severance pay,
10		termination pay, contract or option year buy-out
11		payments, expansion or relocation payments, or any
12		other payments not related to services performed
13		for the team.
14		For purposes of this subparagraph, "bonuses"
15		included in "total compensation for services
16		performed as a member of a professional athletic
17		team" subject to the allocation described in
18		Section 302(c)(1) are: bonuses earned as a result
19		of play (i.e., performance bonuses) during the
20		season, including bonuses paid for championship,
21		playoff or "bowl" games played by a team, or for
22		selection to all-star league or other honorary
23		positions; and bonuses paid for signing a
24		contract, unless the payment of the signing bonus
25		is not conditional upon the signee playing any
26		games for the team or performing any subsequent

HB4951 Enrolled - 852 - LRB103 38094 HLH 68226 b
1		services for the team or even making the team, the
2		signing bonus is payable separately from the
3		salary and any other compensation, and the signing
4		bonus is nonrefundable.
5		(3) Sales factor.
6		(A) The sales factor is a fraction, the numerator of
7		which is the total sales of the person in this State during
8		the taxable year, and the denominator of which is the
9		total sales of the person everywhere during the taxable
10		year.
11		(B) Sales of tangible personal property are in this
12		State if:
13		(i) The property is delivered or shipped to a
14		purchaser, other than the United States government,
15		within this State regardless of the f. o. b. point or
16		other conditions of the sale; or
17		(ii) The property is shipped from an office,
18		store, warehouse, factory or other place of storage in
19		this State and either the purchaser is the United
20		States government or the person is not taxable in the
21		state of the purchaser; provided, however, that
22		premises owned or leased by a person who has
23		independently contracted with the seller for the
24		printing of newspapers, periodicals or books shall not
25		be deemed to be an office, store, warehouse, factory
26		or other place of storage for purposes of this

HB4951 Enrolled - 853 - LRB103 38094 HLH 68226 b
1		Section. Sales of tangible personal property are not
2		in this State if the seller and purchaser would be
3		members of the same unitary business group but for the
4		fact that either the seller or purchaser is a person
5		with 80% or more of total business activity outside of
6		the United States and the property is purchased for
7		resale.
8		(B-1) Patents, copyrights, trademarks, and similar
9		items of intangible personal property.
10		(i) Gross receipts from the licensing, sale, or
11		other disposition of a patent, copyright, trademark,
12		or similar item of intangible personal property, other
13		than gross receipts governed by paragraph (B-7) of
14		this item (3), are in this State to the extent the item
15		is utilized in this State during the year the gross
16		receipts are included in gross income.
17		(ii) Place of utilization.
18		(I) A patent is utilized in a state to the
19		extent that it is employed in production,
20		fabrication, manufacturing, or other processing in
21		the state or to the extent that a patented product
22		is produced in the state. If a patent is utilized
23		in more than one state, the extent to which it is
24		utilized in any one state shall be a fraction
25		equal to the gross receipts of the licensee or
26		purchaser from sales or leases of items produced,

HB4951 Enrolled - 854 - LRB103 38094 HLH 68226 b
1		fabricated, manufactured, or processed within that
2		state using the patent and of patented items
3		produced within that state, divided by the total
4		of such gross receipts for all states in which the
5		patent is utilized.
6		(II) A copyright is utilized in a state to the
7		extent that printing or other publication
8		originates in the state. If a copyright is
9		utilized in more than one state, the extent to
10		which it is utilized in any one state shall be a
11		fraction equal to the gross receipts from sales or
12		licenses of materials printed or published in that
13		state divided by the total of such gross receipts
14		for all states in which the copyright is utilized.
15		(III) Trademarks and other items of intangible
16		personal property governed by this paragraph (B-1)
17		are utilized in the state in which the commercial
18		domicile of the licensee or purchaser is located.
19		(iii) If the state of utilization of an item of
20		property governed by this paragraph (B-1) cannot be
21		determined from the taxpayer's books and records or
22		from the books and records of any person related to the
23		taxpayer within the meaning of Section 267(b) of the
24		Internal Revenue Code, 26 U.S.C. 267, the gross
25		receipts attributable to that item shall be excluded
26		from both the numerator and the denominator of the

HB4951 Enrolled - 855 - LRB103 38094 HLH 68226 b
1		sales factor.
2		(B-2) Gross receipts from the license, sale, or other
3		disposition of patents, copyrights, trademarks, and
4		similar items of intangible personal property, other than
5		gross receipts governed by paragraph (B-7) of this item
6		(3), may be included in the numerator or denominator of
7		the sales factor only if gross receipts from licenses,
8		sales, or other disposition of such items comprise more
9		than 50% of the taxpayer's total gross receipts included
10		in gross income during the tax year and during each of the
11		2 immediately preceding tax years; provided that, when a
12		taxpayer is a member of a unitary business group, such
13		determination shall be made on the basis of the gross
14		receipts of the entire unitary business group.
15		(B-5) For taxable years ending on or after December
16		31, 2008, except as provided in subsections (ii) through
17		(vii), receipts from the sale of telecommunications
18		service or mobile telecommunications service are in this
19		State if the customer's service address is in this State.
20		(i) For purposes of this subparagraph (B-5), the
21		following terms have the following meanings:
22		"Ancillary services" means services that are
23		associated with or incidental to the provision of
24		"telecommunications services", including, but not
25		limited to, "detailed telecommunications billing",
26		"directory assistance", "vertical service", and "voice

HB4951 Enrolled - 856 - LRB103 38094 HLH 68226 b
1		mail services".
2		"Air-to-Ground Radiotelephone service" means a
3		radio service, as that term is defined in 47 CFR 22.99,
4		in which common carriers are authorized to offer and
5		provide radio telecommunications service for hire to
6		subscribers in aircraft.
7		"Call-by-call Basis" means any method of charging
8		for telecommunications services where the price is
9		measured by individual calls.
10		"Communications Channel" means a physical or
11		virtual path of communications over which signals are
12		transmitted between or among customer channel
13		termination points.
14		"Conference bridging service" means an "ancillary
15		service" that links two or more participants of an
16		audio or video conference call and may include the
17		provision of a telephone number. "Conference bridging
18		service" does not include the "telecommunications
19		services" used to reach the conference bridge.
20		"Customer Channel Termination Point" means the
21		location where the customer either inputs or receives
22		the communications.
23		"Detailed telecommunications billing service"
24		means an "ancillary service" of separately stating
25		information pertaining to individual calls on a
26		customer's billing statement.

HB4951 Enrolled - 857 - LRB103 38094 HLH 68226 b
1		"Directory assistance" means an "ancillary
2		service" of providing telephone number information,
3		and/or address information.
4		"Home service provider" means the facilities based
5		carrier or reseller with which the customer contracts
6		for the provision of mobile telecommunications
7		services.
8		"Mobile telecommunications service" means
9		commercial mobile radio service, as defined in Section
10		20.3 of Title 47 of the Code of Federal Regulations as
11		in effect on June 1, 1999.
12		"Place of primary use" means the street address
13		representative of where the customer's use of the
14		telecommunications service primarily occurs, which
15		must be the residential street address or the primary
16		business street address of the customer. In the case
17		of mobile telecommunications services, "place of
18		primary use" must be within the licensed service area
19		of the home service provider.
20		"Post-paid telecommunication service" means the
21		telecommunications service obtained by making a
22		payment on a call-by-call basis either through the use
23		of a credit card or payment mechanism such as a bank
24		card, travel card, credit card, or debit card, or by
25		charge made to a telephone number which is not
26		associated with the origination or termination of the

HB4951 Enrolled - 858 - LRB103 38094 HLH 68226 b
1		telecommunications service. A post-paid calling
2		service includes telecommunications service, except a
3		prepaid wireless calling service, that would be a
4		prepaid calling service except it is not exclusively a
5		telecommunication service.
6		"Prepaid telecommunication service" means the
7		right to access exclusively telecommunications
8		services, which must be paid for in advance and which
9		enables the origination of calls using an access
10		number or authorization code, whether manually or
11		electronically dialed, and that is sold in
12		predetermined units or dollars of which the number
13		declines with use in a known amount.
14		"Prepaid Mobile telecommunication service" means a
15		telecommunications service that provides the right to
16		utilize mobile wireless service as well as other
17		non-telecommunication services, including, but not
18		limited to, ancillary services, which must be paid for
19		in advance that is sold in predetermined units or
20		dollars of which the number declines with use in a
21		known amount.
22		"Private communication service" means a
23		telecommunication service that entitles the customer
24		to exclusive or priority use of a communications
25		channel or group of channels between or among
26		termination points, regardless of the manner in which

HB4951 Enrolled - 859 - LRB103 38094 HLH 68226 b
1		such channel or channels are connected, and includes
2		switching capacity, extension lines, stations, and any
3		other associated services that are provided in
4		connection with the use of such channel or channels.
5		"Service address" means:
6		(a) The location of the telecommunications
7		equipment to which a customer's call is charged
8		and from which the call originates or terminates,
9		regardless of where the call is billed or paid;
10		(b) If the location in line (a) is not known,
11		service address means the origination point of the
12		signal of the telecommunications services first
13		identified by either the seller's
14		telecommunications system or in information
15		received by the seller from its service provider
16		where the system used to transport such signals is
17		not that of the seller; and
18		(c) If the locations in line (a) and line (b)
19		are not known, the service address means the
20		location of the customer's place of primary use.
21		"Telecommunications service" means the electronic
22		transmission, conveyance, or routing of voice, data,
23		audio, video, or any other information or signals to a
24		point, or between or among points. The term
25		"telecommunications service" includes such
26		transmission, conveyance, or routing in which computer

HB4951 Enrolled - 860 - LRB103 38094 HLH 68226 b
1		processing applications are used to act on the form,
2		code or protocol of the content for purposes of
3		transmission, conveyance or routing without regard to
4		whether such service is referred to as voice over
5		Internet protocol services or is classified by the
6		Federal Communications Commission as enhanced or value
7		added. "Telecommunications service" does not include:
8		(a) Data processing and information services
9		that allow data to be generated, acquired, stored,
10		processed, or retrieved and delivered by an
11		electronic transmission to a purchaser when such
12		purchaser's primary purpose for the underlying
13		transaction is the processed data or information;
14		(b) Installation or maintenance of wiring or
15		equipment on a customer's premises;
16		(c) Tangible personal property;
17		(d) Advertising, including, but not limited
18		to, directory advertising;
19		(e) Billing and collection services provided
20		to third parties;
21		(f) Internet access service;
22		(g) Radio and television audio and video
23		programming services, regardless of the medium,
24		including the furnishing of transmission,
25		conveyance and routing of such services by the
26		programming service provider. Radio and television

HB4951 Enrolled - 861 - LRB103 38094 HLH 68226 b
1		audio and video programming services shall
2		include, but not be limited to, cable service as
3		defined in 47 USC 522(6) and audio and video
4		programming services delivered by commercial
5		mobile radio service providers, as defined in 47
6		CFR 20.3;
7		(h) "Ancillary services"; or
8		(i) Digital products "delivered
9		electronically", including, but not limited to,
10		software, music, video, reading materials or ring
11		tones.
12		"Vertical service" means an "ancillary service"
13		that is offered in connection with one or more
14		"telecommunications services", which offers advanced
15		calling features that allow customers to identify
16		callers and to manage multiple calls and call
17		connections, including "conference bridging services".
18		"Voice mail service" means an "ancillary service"
19		that enables the customer to store, send or receive
20		recorded messages. "Voice mail service" does not
21		include any "vertical services" that the customer may
22		be required to have in order to utilize the "voice mail
23		service".
24		(ii) Receipts from the sale of telecommunications
25		service sold on an individual call-by-call basis are
26		in this State if either of the following applies:

HB4951 Enrolled - 862 - LRB103 38094 HLH 68226 b
1		(a) The call both originates and terminates in
2		this State.
3		(b) The call either originates or terminates
4		in this State and the service address is located
5		in this State.
6		(iii) Receipts from the sale of postpaid
7		telecommunications service at retail are in this State
8		if the origination point of the telecommunication
9		signal, as first identified by the service provider's
10		telecommunication system or as identified by
11		information received by the seller from its service
12		provider if the system used to transport
13		telecommunication signals is not the seller's, is
14		located in this State.
15		(iv) Receipts from the sale of prepaid
16		telecommunications service or prepaid mobile
17		telecommunications service at retail are in this State
18		if the purchaser obtains the prepaid card or similar
19		means of conveyance at a location in this State.
20		Receipts from recharging a prepaid telecommunications
21		service or mobile telecommunications service is in
22		this State if the purchaser's billing information
23		indicates a location in this State.
24		(v) Receipts from the sale of private
25		communication services are in this State as follows:
26		(a) 100% of receipts from charges imposed at

HB4951 Enrolled - 863 - LRB103 38094 HLH 68226 b
1		each channel termination point in this State.
2		(b) 100% of receipts from charges for the
3		total channel mileage between each channel
4		termination point in this State.
5		(c) 50% of the total receipts from charges for
6		service segments when those segments are between 2
7		customer channel termination points, 1 of which is
8		located in this State and the other is located
9		outside of this State, which segments are
10		separately charged.
11		(d) The receipts from charges for service
12		segments with a channel termination point located
13		in this State and in two or more other states, and
14		which segments are not separately billed, are in
15		this State based on a percentage determined by
16		dividing the number of customer channel
17		termination points in this State by the total
18		number of customer channel termination points.
19		(vi) Receipts from charges for ancillary services
20		for telecommunications service sold to customers at
21		retail are in this State if the customer's primary
22		place of use of telecommunications services associated
23		with those ancillary services is in this State. If the
24		seller of those ancillary services cannot determine
25		where the associated telecommunications are located,
26		then the ancillary services shall be based on the

HB4951 Enrolled - 864 - LRB103 38094 HLH 68226 b
1		location of the purchaser.
2		(vii) Receipts to access a carrier's network or
3		from the sale of telecommunication services or
4		ancillary services for resale are in this State as
5		follows:
6		(a) 100% of the receipts from access fees
7		attributable to intrastate telecommunications
8		service that both originates and terminates in
9		this State.
10		(b) 50% of the receipts from access fees
11		attributable to interstate telecommunications
12		service if the interstate call either originates
13		or terminates in this State.
14		(c) 100% of the receipts from interstate end
15		user access line charges, if the customer's
16		service address is in this State. As used in this
17		subdivision, "interstate end user access line
18		charges" includes, but is not limited to, the
19		surcharge approved by the federal communications
20		commission and levied pursuant to 47 CFR 69.
21		(d) Gross receipts from sales of
22		telecommunication services or from ancillary
23		services for telecommunications services sold to
24		other telecommunication service providers for
25		resale shall be sourced to this State using the
26		apportionment concepts used for non-resale

HB4951 Enrolled - 865 - LRB103 38094 HLH 68226 b
1		receipts of telecommunications services if the
2		information is readily available to make that
3		determination. If the information is not readily
4		available, then the taxpayer may use any other
5		reasonable and consistent method.
6		(B-7) For taxable years ending on or after December
7		31, 2008, receipts from the sale of broadcasting services
8		are in this State if the broadcasting services are
9		received in this State. For purposes of this paragraph
10		(B-7), the following terms have the following meanings:
11		"Advertising revenue" means consideration received
12		by the taxpayer in exchange for broadcasting services
13		or allowing the broadcasting of commercials or
14		announcements in connection with the broadcasting of
15		film or radio programming, from sponsorships of the
16		programming, or from product placements in the
17		programming.
18		"Audience factor" means the ratio that the
19		audience or subscribers located in this State of a
20		station, a network, or a cable system bears to the
21		total audience or total subscribers for that station,
22		network, or cable system. The audience factor for film
23		or radio programming shall be determined by reference
24		to the books and records of the taxpayer or by
25		reference to published rating statistics provided the
26		method used by the taxpayer is consistently used from

HB4951 Enrolled - 866 - LRB103 38094 HLH 68226 b
1		year to year for this purpose and fairly represents
2		the taxpayer's activity in this State.
3		"Broadcast" or "broadcasting" or "broadcasting
4		services" means the transmission or provision of film
5		or radio programming, whether through the public
6		airwaves, by cable, by direct or indirect satellite
7		transmission, or by any other means of communication,
8		either through a station, a network, or a cable
9		system.
10		"Film" or "film programming" means the broadcast
11		on television of any and all performances, events, or
12		productions, including, but not limited to, news,
13		sporting events, plays, stories, or other literary,
14		commercial, educational, or artistic works, either
15		live or through the use of video tape, disc, or any
16		other type of format or medium. Each episode of a
17		series of films produced for television shall
18		constitute separate "film" notwithstanding that the
19		series relates to the same principal subject and is
20		produced during one or more tax periods.
21		"Radio" or "radio programming" means the broadcast
22		on radio of any and all performances, events, or
23		productions, including, but not limited to, news,
24		sporting events, plays, stories, or other literary,
25		commercial, educational, or artistic works, either
26		live or through the use of an audio tape, disc, or any

HB4951 Enrolled - 867 - LRB103 38094 HLH 68226 b
1		other format or medium. Each episode in a series of
2		radio programming produced for radio broadcast shall
3		constitute a separate "radio programming"
4		notwithstanding that the series relates to the same
5		principal subject and is produced during one or more
6		tax periods.
7		(i) In the case of advertising revenue from
8		broadcasting, the customer is the advertiser and
9		the service is received in this State if the
10		commercial domicile of the advertiser is in this
11		State.
12		(ii) 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		received from the recipient of the broadcast, the
16		portion of the service that is received in this
17		State is measured by the portion of the recipients
18		of the broadcast located in this State.
19		Accordingly, the fee or other remuneration for
20		such service that is included in the Illinois
21		numerator of the sales factor is the total of
22		those fees or other remuneration received from
23		recipients in Illinois. For purposes of this
24		paragraph, a taxpayer may determine the location
25		of the recipients of its broadcast using the
26		address of the recipient shown in its contracts

HB4951 Enrolled - 868 - LRB103 38094 HLH 68226 b
1		with the recipient or using the billing address of
2		the recipient in the taxpayer's records.
3		(iii) In the case where film or radio
4		programming is broadcast by a station, a network,
5		or a cable system for a fee or other remuneration
6		from the person providing the programming, the
7		portion of the broadcast service that is received
8		by such station, network, or cable system in this
9		State is measured by the portion of recipients of
10		the broadcast located in this State. Accordingly,
11		the amount of revenue related to such an
12		arrangement that is included in the Illinois
13		numerator of the sales factor is the total fee or
14		other total remuneration from the person providing
15		the programming related to that broadcast
16		multiplied by the Illinois audience factor for
17		that broadcast.
18		(iv) In the case where film or radio
19		programming is provided by a taxpayer that is a
20		network or station to a customer for broadcast in
21		exchange for a fee or other remuneration from that
22		customer the broadcasting service is received at
23		the location of the office of the customer from
24		which the services were ordered in the regular
25		course of the customer's trade or business.
26		Accordingly, in such a case the revenue derived by

HB4951 Enrolled - 869 - LRB103 38094 HLH 68226 b
1		the taxpayer that is included in the taxpayer's
2		Illinois numerator of the sales factor is the
3		revenue from such customers who receive the
4		broadcasting service in Illinois.
5		(v) In the case where film or radio
6		programming is provided by a taxpayer that is not
7		a network or station to another person for
8		broadcasting in exchange for a fee or other
9		remuneration from that person, the broadcasting
10		service is received at the location of the office
11		of the customer from which the services were
12		ordered in the regular course of the customer's
13		trade or business. Accordingly, in such a case the
14		revenue derived by the taxpayer that is included
15		in the taxpayer's Illinois numerator of the sales
16		factor is the revenue from such customers who
17		receive the broadcasting service in Illinois.
18		(B-8) Gross receipts from winnings under the Illinois
19		Lottery Law from the assignment of a prize under Section
20		13.1 of the Illinois Lottery Law are received in this
21		State. This paragraph (B-8) applies only to taxable years
22		ending on or after December 31, 2013.
23		(B-9) For taxable years ending on or after December
24		31, 2019, gross receipts from winnings from pari-mutuel
25		wagering conducted at a wagering facility licensed under
26		the Illinois Horse Racing Act of 1975 or from winnings

HB4951 Enrolled - 870 - LRB103 38094 HLH 68226 b
1		from gambling games conducted on a riverboat or in a
2		casino or organization gaming facility licensed under the
3		Illinois Gambling Act are in this State.
4		(B-10) For taxable years ending on or after December
5		31, 2021, gross receipts from winnings from sports
6		wagering conducted in accordance with the Sports Wagering
7		Act are in this State.
8		(C) For taxable years ending before December 31, 2008,
9		sales, other than sales governed by paragraphs (B), (B-1),
10		(B-2), and (B-8) are in this State if:
11		(i) The income-producing activity is performed in
12		this State; or
13		(ii) The income-producing activity is performed
14		both within and without this State and a greater
15		proportion of the income-producing activity is
16		performed within this State than without this State,
17		based on performance costs.
18		(C-5) For taxable years ending on or after December
19		31, 2008, sales, other than sales governed by paragraphs
20		(B), (B-1), (B-2), (B-5), and (B-7), are in this State if
21		any of the following criteria are met:
22		(i) Sales from the sale or lease of real property
23		are in this State if the property is located in this
24		State.
25		(ii) Sales from the lease or rental of tangible
26		personal property are in this State if the property is

HB4951 Enrolled - 871 - LRB103 38094 HLH 68226 b
1		located in this State during the rental period. Sales
2		from the lease or rental of tangible personal property
3		that is characteristically moving property, including,
4		but not limited to, motor vehicles, rolling stock,
5		aircraft, vessels, or mobile equipment are in this
6		State to the extent that the property is used in this
7		State.
8		(iii) In the case of interest, net gains (but not
9		less than zero) and other items of income from
10		intangible personal property, the sale is in this
11		State if:
12		(a) in the case of a taxpayer who is a dealer
13		in the item of intangible personal property within
14		the meaning of Section 475 of the Internal Revenue
15		Code, the income or gain is received from a
16		customer in this State. For purposes of this
17		subparagraph, a customer is in this State if the
18		customer is an individual, trust or estate who is
19		a resident of this State and, for all other
20		customers, if the customer's commercial domicile
21		is in this State. Unless the dealer has actual
22		knowledge of the residence or commercial domicile
23		of a customer during a taxable year, the customer
24		shall be deemed to be a customer in this State if
25		the billing address of the customer, as shown in
26		the records of the dealer, is in this State; or

HB4951 Enrolled - 872 - LRB103 38094 HLH 68226 b
1		(b) in all other cases, if the
2		income-producing activity of the taxpayer is
3		performed in this State or, if the
4		income-producing activity of the taxpayer is
5		performed both within and without this State, if a
6		greater proportion of the income-producing
7		activity of the taxpayer is performed within this
8		State than in any other state, based on
9		performance costs.
10		(iv) Sales of services are in this State if the
11		services are received in this State. For the purposes
12		of this section, gross receipts from the performance
13		of services provided to a corporation, partnership, or
14		trust may only be attributed to a state where that
15		corporation, partnership, or trust has a fixed place
16		of business. If the state where the services are
17		received is not readily determinable or is a state
18		where the corporation, partnership, or trust receiving
19		the service does not have a fixed place of business,
20		the services shall be deemed to be received at the
21		location of the office of the customer from which the
22		services were ordered in the regular course of the
23		customer's trade or business. If the ordering office
24		cannot be determined, the services shall be deemed to
25		be received at the office of the customer to which the
26		services are billed. If the taxpayer is not taxable in

HB4951 Enrolled - 873 - LRB103 38094 HLH 68226 b
1		the state in which the services are received, the sale
2		must be excluded from both the numerator and the
3		denominator of the sales factor. The Department shall
4		adopt rules prescribing where specific types of
5		service are received, including, but not limited to,
6		publishing, and utility service.
7		(D) For taxable years ending on or after December 31,
8		1995, the following items of income shall not be included
9		in the numerator or denominator of the sales factor:
10		dividends; amounts included under Section 78 of the
11		Internal Revenue Code; and Subpart F income as defined in
12		Section 952 of the Internal Revenue Code. No inference
13		shall be drawn from the enactment of this paragraph (D) in
14		construing this Section for taxable years ending before
15		December 31, 1995.
16		(E) Paragraphs (B-1) and (B-2) shall apply to tax
17		years ending on or after December 31, 1999, provided that
18		a taxpayer may elect to apply the provisions of these
19		paragraphs to prior tax years. Such election shall be made
20		in the form and manner prescribed by the Department, shall
21		be irrevocable, and shall apply to all tax years; provided
22		that, if a taxpayer's Illinois income tax liability for
23		any tax year, as assessed under Section 903 prior to
24		January 1, 1999, was computed in a manner contrary to the
25		provisions of paragraphs (B-1) or (B-2), no refund shall
26		be payable to the taxpayer for that tax year to the extent

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1		such refund is the result of applying the provisions of
2		paragraph (B-1) or (B-2) retroactively. In the case of a
3		unitary business group, such election shall apply to all
4		members of such group for every tax year such group is in
5		existence, but shall not apply to any taxpayer for any
6		period during which that taxpayer is not a member of such
7		group.
8		(b) Insurance companies.
9		(1) In general. Except as otherwise provided by
10		paragraph (2), business income of an insurance company for
11		a taxable year shall be apportioned to this State by
12		multiplying such income by a fraction, the numerator of
13		which is the direct premiums written for insurance upon
14		property or risk in this State, and the denominator of
15		which is the direct premiums written for insurance upon
16		property or risk everywhere. For purposes of this
17		subsection, the term "direct premiums written" means the
18		total amount of direct premiums written, assessments and
19		annuity considerations as reported for the taxable year on
20		the annual statement filed by the company with the
21		Illinois Director of Insurance in the form approved by the
22		National Convention of Insurance Commissioners or such
23		other form as may be prescribed in lieu thereof.
24		(2) Reinsurance. If the principal source of premiums
25		written by an insurance company consists of premiums for
26		reinsurance accepted by it, the business income of such

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1		company shall be apportioned to this State by multiplying
2		such income by a fraction, the numerator of which is the
3		sum of (i) direct premiums written for insurance upon
4		property or risk in this State, plus (ii) premiums written
5		for reinsurance accepted in respect of property or risk in
6		this State, and the denominator of which is the sum of
7		(iii) direct premiums written for insurance upon property
8		or risk everywhere, plus (iv) premiums written for
9		reinsurance accepted in respect of property or risk
10		everywhere. For purposes of this paragraph, premiums
11		written for reinsurance accepted in respect of property or
12		risk in this State, whether or not otherwise determinable,
13		may, at the election of the company, be determined on the
14		basis of the proportion which premiums written for
15		reinsurance accepted from companies commercially domiciled
16		in Illinois bears to premiums written for reinsurance
17		accepted from all sources, or, alternatively, in the
18		proportion which the sum of the direct premiums written
19		for insurance upon property or risk in this State by each
20		ceding company from which reinsurance is accepted bears to
21		the sum of the total direct premiums written by each such
22		ceding company for the taxable year. The election made by
23		a company under this paragraph for its first taxable year
24		ending on or after December 31, 2011, shall be binding for
25		that company for that taxable year and for all subsequent
26		taxable years, and may be altered only with the written

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1		permission of the Department, which shall not be
2		unreasonably withheld.
3		(c) Financial organizations.
4		(1) In general. For taxable years ending before
5		December 31, 2008, business income of a financial
6		organization shall be apportioned to this State by
7		multiplying such income by a fraction, the numerator of
8		which is its business income from sources within this
9		State, and the denominator of which is its business income
10		from all sources. For the purposes of this subsection, the
11		business income of a financial organization from sources
12		within this State is the sum of the amounts referred to in
13		subparagraphs (A) through (E) following, but excluding the
14		adjusted income of an international banking facility as
15		determined in paragraph (2):
16		(A) Fees, commissions or other compensation for
17		financial services rendered within this State;
18		(B) Gross profits from trading in stocks, bonds or
19		other securities managed within this State;
20		(C) Dividends, and interest from Illinois
21		customers, which are received within this State;
22		(D) Interest charged to customers at places of
23		business maintained within this State for carrying
24		debit balances of margin accounts, without deduction
25		of any costs incurred in carrying such accounts; and
26		(E) Any other gross income resulting from the

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1		operation as a financial organization within this
2		State.
3		In computing the amounts referred to in paragraphs (A)
4		through (E) of this subsection, any amount received by a
5		member of an affiliated group (determined under Section
6		1504(a) of the Internal Revenue Code but without reference
7		to whether any such corporation is an "includible
8		corporation" under Section 1504(b) of the Internal Revenue
9		Code) from another member of such group shall be included
10		only to the extent such amount exceeds expenses of the
11		recipient directly related thereto.
12		(2) International Banking Facility. For taxable years
13		ending before December 31, 2008:
14		(A) Adjusted Income. The adjusted income of an
15		international banking facility is its income reduced
16		by the amount of the floor amount.
17		(B) Floor Amount. The floor amount shall be the
18		amount, if any, determined by multiplying the income
19		of the international banking facility by a fraction,
20		not greater than one, which is determined as follows:
21		(i) The numerator shall be:
22		The average aggregate, determined on a
23		quarterly basis, of the financial organization's
24		loans to banks in foreign countries, to foreign
25		domiciled borrowers (except where secured
26		primarily by real estate) and to foreign

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1		governments and other foreign official
2		institutions, as reported for its branches,
3		agencies and offices within the state on its
4		"Consolidated Report of Condition", Schedule A,
5		Lines 2.c., 5.b., and 7.a., which was filed with
6		the Federal Deposit Insurance Corporation and
7		other regulatory authorities, for the year 1980,
8		minus
9		The average aggregate, determined on a
10		quarterly basis, of such loans (other than loans
11		of an international banking facility), as reported
12		by the financial institution for its branches,
13		agencies and offices within the state, on the
14		corresponding Schedule and lines of the
15		Consolidated Report of Condition for the current
16		taxable year, provided, however, that in no case
17		shall the amount determined in this clause (the
18		subtrahend) exceed the amount determined in the
19		preceding clause (the minuend); and
20		(ii) the denominator shall be the average
21		aggregate, determined on a quarterly basis, of the
22		international banking facility's loans to banks in
23		foreign countries, to foreign domiciled borrowers
24		(except where secured primarily by real estate)
25		and to foreign governments and other foreign
26		official institutions, which were recorded in its

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1		financial accounts for the current taxable year.
2		(C) Change to Consolidated Report of Condition and
3		in Qualification. In the event the Consolidated Report
4		of Condition which is filed with the Federal Deposit
5		Insurance Corporation and other regulatory authorities
6		is altered so that the information required for
7		determining the floor amount is not found on Schedule
8		A, lines 2.c., 5.b. and 7.a., the financial
9		institution shall notify the Department and the
10		Department may, by regulations or otherwise, prescribe
11		or authorize the use of an alternative source for such
12		information. The financial institution shall also
13		notify the Department should its international banking
14		facility fail to qualify as such, in whole or in part,
15		or should there be any amendment or change to the
16		Consolidated Report of Condition, as originally filed,
17		to the extent such amendment or change alters the
18		information used in determining the floor amount.
19		(3) For taxable years ending on or after December 31,
20		2008, the business income of a financial organization
21		shall be apportioned to this State by multiplying such
22		income by a fraction, the numerator of which is its gross
23		receipts from sources in this State or otherwise
24		attributable to this State's marketplace and the
25		denominator of which is its gross receipts everywhere
26		during the taxable year. "Gross receipts" for purposes of

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1		this subparagraph (3) means gross income, including net
2		taxable gain on disposition of assets, including
3		securities and money market instruments, when derived from
4		transactions and activities in the regular course of the
5		financial organization's trade or business. The following
6		examples are illustrative:
7		(i) Receipts from the lease or rental of real or
8		tangible personal property are in this State if the
9		property is located in this State during the rental
10		period. Receipts from the lease or rental of tangible
11		personal property that is characteristically moving
12		property, including, but not limited to, motor
13		vehicles, rolling stock, aircraft, vessels, or mobile
14		equipment are from sources in this State to the extent
15		that the property is used in this State.
16		(ii) Interest income, commissions, fees, gains on
17		disposition, and other receipts from assets in the
18		nature of loans that are secured primarily by real
19		estate or tangible personal property are from sources
20		in this State if the security is located in this State.
21		(iii) Interest income, commissions, fees, gains on
22		disposition, and other receipts from consumer loans
23		that are not secured by real or tangible personal
24		property are from sources in this State if the debtor
25		is a resident of this State.
26		(iv) Interest income, commissions, fees, gains on

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1		disposition, and other receipts from commercial loans
2		and installment obligations that are not secured by
3		real or tangible personal property are from sources in
4		this State if the proceeds of the loan are to be
5		applied in this State. If it cannot be determined
6		where the funds are to be applied, the income and
7		receipts are from sources in this State if the office
8		of the borrower from which the loan was negotiated in
9		the regular course of business is located in this
10		State. If the location of this office cannot be
11		determined, the income and receipts shall be excluded
12		from the numerator and denominator of the sales
13		factor.
14		(v) Interest income, fees, gains on disposition,
15		service charges, merchant discount income, and other
16		receipts from credit card receivables are from sources
17		in this State if the card charges are regularly billed
18		to a customer in this State.
19		(vi) Receipts from the performance of services,
20		including, but not limited to, fiduciary, advisory,
21		and brokerage services, are in this State if the
22		services are received in this State within the meaning
23		of subparagraph (a)(3)(C-5)(iv) of this Section.
24		(vii) Receipts from the issuance of travelers
25		checks and money orders are from sources in this State
26		if the checks and money orders are issued from a

HB4951 Enrolled - 882 - LRB103 38094 HLH 68226 b
1		location within this State.
2		(viii) For tax years ending before December 31,
3		2024, receipts Receipts from investment assets and
4		activities and trading assets and activities are
5		included in the receipts factor as follows:
6		(1) Interest, dividends, net gains (but not
7		less than zero) and other income from investment
8		assets and activities from trading assets and
9		activities shall be included in the receipts
10		factor. Investment assets and activities and
11		trading assets and activities include, but are not
12		limited to: investment securities; trading account
13		assets; federal funds; securities purchased and
14		sold under agreements to resell or repurchase;
15		options; futures contracts; forward contracts;
16		notional principal contracts such as swaps;
17		equities; and foreign currency transactions. With
18		respect to the investment and trading assets and
19		activities described in subparagraphs (A) and (B)
20		of this paragraph, the receipts factor shall
21		include the amounts described in such
22		subparagraphs.
23		(A) The receipts factor shall include the
24		amount by which interest from federal funds
25		sold and securities purchased under resale
26		agreements exceeds interest expense on federal

HB4951 Enrolled - 883 - LRB103 38094 HLH 68226 b
1		funds purchased and securities sold under
2		repurchase agreements.
3		(B) The receipts factor shall include the
4		amount by which interest, dividends, gains and
5		other income from trading assets and
6		activities, including, but not limited to,
7		assets and activities in the matched book, in
8		the arbitrage book, and foreign currency
9		transactions, exceed amounts paid in lieu of
10		interest, amounts paid in lieu of dividends,
11		and losses from such assets and activities.
12		(2) The numerator of the receipts factor
13		includes interest, dividends, net gains (but not
14		less than zero), and other income from investment
15		assets and activities and from trading assets and
16		activities described in paragraph (1) of this
17		subsection that are attributable to this State.
18		(A) The amount of interest, dividends, net
19		gains (but not less than zero), and other
20		income from investment assets and activities
21		in the investment account to be attributed to
22		this State and included in the numerator is
23		determined by multiplying all such income from
24		such assets and activities by a fraction, the
25		numerator of which is the gross income from
26		such assets and activities which are properly

HB4951 Enrolled - 884 - LRB103 38094 HLH 68226 b
1		assigned to a fixed place of business of the
2		taxpayer within this State and the denominator
3		of which is the gross income from all such
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 gross income from
15		such funds and such securities which are
16		properly assigned to a fixed place of business
17		of the taxpayer within this State and the
18		denominator of which is the gross income from
19		all such funds and such securities.
20		(C) The amount of interest, dividends,
21		gains, and other income from trading assets
22		and activities, including, but not limited to,
23		assets and activities in the matched book, in
24		the arbitrage book and foreign currency
25		transactions (but excluding amounts described
26		in subparagraphs (A) or (B) of this

HB4951 Enrolled - 885 - LRB103 38094 HLH 68226 b
1		paragraph), attributable to this State and
2		included in the numerator is determined by
3		multiplying the amount described in
4		subparagraph (B) of paragraph (1) of this
5		subsection by a fraction, the numerator of
6		which is the gross income from such trading
7		assets and activities which are properly
8		assigned to a fixed place of business of the
9		taxpayer within this State and the denominator
10		of which is the gross income from all such
11		assets and activities.
12		(D) Properly assigned, for purposes of
13		this paragraph (2) of this subsection, means
14		the investment or trading asset or activity is
15		assigned to the fixed place of business with
16		which it has a preponderance of substantive
17		contacts. An investment or trading asset or
18		activity assigned by the taxpayer to a fixed
19		place of business without the State shall be
20		presumed to have been properly assigned if:
21		(i) the taxpayer has assigned, in the
22		regular course of its business, such asset
23		or activity on its records to a fixed
24		place of business consistent with federal
25		or state regulatory requirements;
26		(ii) such assignment on its records is

HB4951 Enrolled - 886 - LRB103 38094 HLH 68226 b
1		based upon substantive contacts of the
2		asset or activity to such fixed place of
3		business; and
4		(iii) the taxpayer uses such records
5		reflecting assignment of such assets or
6		activities for the filing of all state and
7		local tax returns for which an assignment
8		of such assets or activities to a fixed
9		place of business is required.
10		(E) The presumption of proper assignment
11		of an investment or trading asset or activity
12		provided in subparagraph (D) of paragraph (2)
13		of this subsection may be rebutted upon a
14		showing by the Department, supported by a
15		preponderance of the evidence, that the
16		preponderance of substantive contacts
17		regarding such asset or activity did not occur
18		at the fixed place of business to which it was
19		assigned on the taxpayer's records. If the
20		fixed place of business that has a
21		preponderance of substantive contacts cannot
22		be determined for an investment or trading
23		asset or activity to which the presumption in
24		subparagraph (D) of paragraph (2) of this
25		subsection does not apply or with respect to
26		which that presumption has been rebutted, that

HB4951 Enrolled - 887 - LRB103 38094 HLH 68226 b
1		asset or activity is properly assigned to the
2		state in which the taxpayer's commercial
3		domicile is located. For purposes of this
4		subparagraph (E), it shall be presumed,
5		subject to rebuttal, that taxpayer's
6		commercial domicile is in the state of the
7		United States or the District of Columbia to
8		which the greatest number of employees are
9		regularly connected with the management of the
10		investment or trading income or out of which
11		they are working, irrespective of where the
12		services of such employees are performed, as
13		of the last day of the taxable year.
14		(ix) For tax years ending on or after December 31,
15		2024, receipts from investment assets and activities
16		and trading assets and activities are included in the
17		receipts factor as follows:
18		(1) Interest, dividends, net gains (but not
19		less than zero), and other income from investment
20		assets and activities from trading assets and
21		activities shall be included in the receipts
22		factor. Investment assets and activities and
23		trading assets and activities include, but are not
24		limited to the following: investment securities;
25		trading account assets; federal funds; securities
26		purchased and sold under agreements to resell or

HB4951 Enrolled - 888 - LRB103 38094 HLH 68226 b
1		repurchase; options; futures contracts; forward
2		contracts; notional principal contracts, such as
3		swaps; equities; and foreign currency
4		transactions. With respect to the investment and
5		trading assets and activities described in
6		subparagraphs (A) and (B) of this paragraph, the
7		receipts factor shall include the amounts
8		described in those subparagraphs.
9		(A) The receipts factor shall include the
10		amount by which interest from federal funds
11		sold and securities purchased under resale
12		agreements exceeds interest expense on federal
13		funds purchased and securities sold under
14		repurchase agreements.
15		(B) The receipts factor shall include the
16		amount by which interest, dividends, gains and
17		other income from trading assets and
18		activities, including, but not limited to,
19		assets and activities in the matched book, in
20		the arbitrage book, and foreign currency
21		transactions, exceed amounts paid in lieu of
22		interest, amounts paid in lieu of dividends,
23		and losses from such assets and activities.
24		(2) The numerator of the receipts factor
25		includes interest, dividends, net gains (but not
26		less than zero), and other income from investment

HB4951 Enrolled - 889 - LRB103 38094 HLH 68226 b
1		assets and activities and from trading assets and
2		activities described in paragraph (1) of this
3		subsection that are attributable to this State.
4		(A) The amount of interest, dividends, net
5		gains (but not less than zero), and other
6		income from investment assets and activities
7		in the investment account to be attributed to
8		this State and included in the numerator is
9		determined by multiplying all of the income
10		from those assets and activities by a
11		fraction, the numerator of which is the total
12		receipts included in the numerator pursuant to
13		items (i) through (vii) of this subparagraph
14		(3) and the denominator of which is all total
15		receipts included in the denominator, other
16		than interest, dividends, net gains (but not
17		less than zero), and other income from
18		investment assets and activities and trading
19		assets and activities.
20		(B) The amount of interest from federal
21		funds sold and purchased and from securities
22		purchased under resale agreements and
23		securities sold under repurchase agreements
24		attributable to this State and included in the
25		numerator is determined by multiplying the
26		amount described in subparagraph (A) of

HB4951 Enrolled - 890 - LRB103 38094 HLH 68226 b
1		paragraph (1) of this subsection from such
2		funds and such securities by a fraction, the
3		numerator of which is the total receipts
4		included in the numerator pursuant to items
5		(i) through (vii) of this subparagraph (3) and
6		the denominator of which is all total receipts
7		included in the denominator, other than
8		interest, dividends, net gains (but not less
9		than zero), and other income from investment
10		assets and activities and trading assets and
11		activities.
12		(C) The amount of interest, dividends,
13		gains, and other income from trading assets
14		and activities, including, but not limited to,
15		assets and activities in the matched book, in
16		the arbitrage book and foreign currency
17		transactions (but excluding amounts described
18		in subparagraphs (A) or (B) of this
19		paragraph), attributable to this State and
20		included in the numerator is determined by
21		multiplying the amount described in
22		subparagraph (B) of paragraph (1) of this
23		subsection by a fraction, the numerator of
24		which is the total receipts included in the
25		numerator pursuant to items (i) through (vii)
26		of this subparagraph (3) and the denominator

HB4951 Enrolled - 891 - LRB103 38094 HLH 68226 b
1		of which is all total receipts included in the
2		denominator, other than interest, dividends,
3		net gains (but not less than zero), and other
4		income from investment assets and activities
5		and trading assets and activities.
6		(4) (Blank).
7		(5) (Blank).
8		(c-1) Federally regulated exchanges. For taxable years
9		ending on or after December 31, 2012, business income of a
10		federally regulated exchange shall, at the option of the
11		federally regulated exchange, be apportioned to this State by
12		multiplying such income by a fraction, the numerator of which
13		is its business income from sources within this State, and the
14		denominator of which is its business income from all sources.
15		For purposes of this subsection, the business income within
16		this State of a federally regulated exchange is the sum of the
17		following:
18		(1) Receipts attributable to transactions executed on
19		a physical trading floor if that physical trading floor is
20		located in this State.
21		(2) Receipts attributable to all other matching,
22		execution, or clearing transactions, including without
23		limitation receipts from the provision of matching,
24		execution, or clearing services to another entity,
25		multiplied by (i) for taxable years ending on or after
26		December 31, 2012 but before December 31, 2013, 63.77%;

HB4951 Enrolled - 892 - LRB103 38094 HLH 68226 b
1		and (ii) for taxable years ending on or after December 31,
2		2013, 27.54%.
3		(3) All other receipts not governed by subparagraphs
4		(1) or (2) of this subsection (c-1), to the extent the
5		receipts would be characterized as "sales in this State"
6		under item (3) of subsection (a) of this Section.
7		"Federally regulated exchange" means (i) a "registered
8		entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
9		or (C), (ii) an "exchange" or "clearing agency" within the
10		meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
11		entities regulated under any successor regulatory structure to
12		the foregoing, and (iv) all taxpayers who are members of the
13		same unitary business group as a federally regulated exchange,
14		determined without regard to the prohibition in Section
15		1501(a)(27) of this Act against including in a unitary
16		business group taxpayers who are ordinarily required to
17		apportion business income under different subsections of this
18		Section; provided that this subparagraph (iv) shall apply only
19		if 50% or more of the business receipts of the unitary business
20		group determined by application of this subparagraph (iv) for
21		the taxable year are attributable to the matching, execution,
22		or clearing of transactions conducted by an entity described
23		in subparagraph (i), (ii), or (iii) of this paragraph.
24		In no event shall the Illinois apportionment percentage
25		computed in accordance with this subsection (c-1) for any
26		taxpayer for any tax year be less than the Illinois

HB4951 Enrolled - 893 - LRB103 38094 HLH 68226 b
1		apportionment percentage computed under this subsection (c-1)
2		for that taxpayer for the first full tax year ending on or
3		after December 31, 2013 for which this subsection (c-1)
4		applied to the taxpayer.
5		(d) Transportation services. For taxable years ending
6		before December 31, 2008, business income derived from
7		furnishing transportation services shall be apportioned to
8		this State in accordance with paragraphs (1) and (2):
9		(1) Such business income (other than that derived from
10		transportation by pipeline) shall be apportioned to this
11		State by multiplying such income by a fraction, the
12		numerator of which is the revenue miles of the person in
13		this State, and the denominator of which is the revenue
14		miles of the person everywhere. For purposes of this
15		paragraph, a revenue mile is the transportation of 1
16		passenger or 1 net ton of freight the distance of 1 mile
17		for a consideration. Where a person is engaged in the
18		transportation of both passengers and freight, the
19		fraction above referred to shall be determined by means of
20		an average of the passenger revenue mile fraction and the
21		freight revenue mile fraction, weighted to reflect the
22		person's
23		(A) relative railway operating income from total
24		passenger and total freight service, as reported to
25		the Interstate Commerce Commission, in the case of
26		transportation by railroad, and

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1		(B) relative gross receipts from passenger and
2		freight transportation, in case of transportation
3		other than by railroad.
4		(2) Such business income derived from transportation
5		by pipeline shall be apportioned to this State by
6		multiplying such income by a fraction, the numerator of
7		which is the revenue miles of the person in this State, and
8		the denominator of which is the revenue miles of the
9		person everywhere. For the purposes of this paragraph, a
10		revenue mile is the transportation by pipeline of 1 barrel
11		of oil, 1,000 cubic feet of gas, or of any specified
12		quantity of any other substance, the distance of 1 mile
13		for a consideration.
14		(3) For taxable years ending on or after December 31,
15		2008, business income derived from providing
16		transportation services other than airline services shall
17		be apportioned to this State by using a fraction, (a) the
18		numerator of which shall be (i) all receipts from any
19		movement or shipment of people, goods, mail, oil, gas, or
20		any other substance (other than by airline) that both
21		originates and terminates in this State, plus (ii) that
22		portion of the person's gross receipts from movements or
23		shipments of people, goods, mail, oil, gas, or any other
24		substance (other than by airline) that originates in one
25		state or jurisdiction and terminates in another state or
26		jurisdiction, that is determined by the ratio that the

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1		miles traveled in this State bears to total miles
2		everywhere and (b) the denominator of which shall be all
3		revenue derived from the movement or shipment of people,
4		goods, mail, oil, gas, or any other substance (other than
5		by airline). Where a taxpayer is engaged in the
6		transportation of both passengers and freight, the
7		fraction above referred to shall first be determined
8		separately for passenger miles and freight miles. Then an
9		average of the passenger miles fraction and the freight
10		miles fraction shall be weighted to reflect the
11		taxpayer's:
12		(A) relative railway operating income from total
13		passenger and total freight service, as reported to
14		the Surface Transportation Board, in the case of
15		transportation by railroad; and
16		(B) relative gross receipts from passenger and
17		freight transportation, in case of transportation
18		other than by railroad.
19		(4) For taxable years ending on or after December 31,
20		2008, business income derived from furnishing airline
21		transportation services shall be apportioned to this State
22		by multiplying such income by a fraction, the numerator of
23		which is the revenue miles of the person in this State, and
24		the denominator of which is the revenue miles of the
25		person everywhere. For purposes of this paragraph, a
26		revenue mile is the transportation of one passenger or one

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1		net ton of freight the distance of one mile for a
2		consideration. If 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 relative gross receipts from passenger and
8		freight airline transportation.
9		(e) Combined apportionment. Where 2 or more persons are
10		engaged in a unitary business as described in subsection
11		(a)(27) of Section 1501, a part of which is conducted in this
12		State by one or more members of the group, the business income
13		attributable to this State by any such member or members shall
14		be apportioned by means of the combined apportionment method.
15		(f) Alternative allocation. If the allocation and
16		apportionment provisions of subsections (a) through (e) and of
17		subsection (h) do not, for taxable years ending before
18		December 31, 2008, fairly represent the extent of a person's
19		business activity in this State, or, for taxable years ending
20		on or after December 31, 2008, fairly represent the market for
21		the person's goods, services, or other sources of business
22		income, the person may petition for, or the Director may,
23		without a petition, permit or require, in respect of all or any
24		part of the person's business activity, if reasonable:
25		(1) Separate accounting;
26		(2) The exclusion of any one or more factors;

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1		(3) The inclusion of one or more additional factors
2		which will fairly represent the person's business
3		activities or market in this State; or
4		(4) The employment of any other method to effectuate
5		an equitable allocation and apportionment of the person's
6		business income.
7		(g) Cross reference. For allocation of business income by
8		residents, see Section 301(a).
9		(h) For tax years ending on or after December 31, 1998, the
10		apportionment factor of persons who apportion their business
11		income to this State under subsection (a) shall be equal to:
12		(1) for tax years ending on or after December 31, 1998
13		and before December 31, 1999, 16 2/3% of the property
14		factor plus 16 2/3% of the payroll factor plus 66 2/3% of
15		the sales factor;
16		(2) for tax years ending on or after December 31, 1999
17		and before December 31, 2000, 8 1/3% of the property
18		factor plus 8 1/3% of the payroll factor plus 83 1/3% of
19		the sales factor;
20		(3) for tax years ending on or after December 31,
21		2000, the sales factor.
22		If, in any tax year ending on or after December 31, 1998 and
23		before December 31, 2000, the denominator of the payroll,
24		property, or sales factor is zero, the apportionment factor
25		computed in paragraph (1) or (2) of this subsection for that
26		year shall be divided by an amount equal to 100% minus the

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1		percentage weight given to each factor whose denominator is
2		equal to zero.
3		(Source: P.A. 101-31, eff. 6-28-19; 101-585, eff. 8-26-19;
4		102-40, eff. 6-25-21; 102-558, eff. 8-20-21.)
5		ARTICLE 90.
6		Section 90-5. The Illinois Income Tax Act is amended by
7		changing Sections 218 and 227 as follows:
8		(35 ILCS 5/218)
9		Sec. 218. Credit for student-assistance contributions.
10		(a) For taxable years ending on or after December 31, 2009
11		and on or before December 31, 2029 2024, each taxpayer who,
12		during the taxable year, makes a contribution (i) to a
13		specified individual College Savings Pool Account under
14		Section 16.5 of the State Treasurer Act or (ii) to the Illinois
15		Prepaid Tuition Trust Fund in an amount matching a
16		contribution made in the same taxable year by an employee of
17		the taxpayer to that Account or Fund is entitled to a credit
18		against the tax imposed under subsections (a) and (b) of
19		Section 201 in an amount equal to 25% of that matching
20		contribution, but not to exceed $500 per contributing employee
21		per taxable year.
22		(b) For taxable years ending before December 31, 2023, for
23		partners, shareholders of Subchapter S corporations, and

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1		owners of limited liability companies, if the liability
2		company is treated as a partnership for purposes of federal
3		and State income taxation, there is allowed a credit under
4		this Section to be determined in accordance with the
5		determination of income and distributive share of income under
6		Sections 702 and 704 and Subchapter S of the Internal Revenue
7		Code. For taxable years ending on or after December 31, 2023,
8		partners and shareholders of subchapter S corporations are
9		entitled to a credit under this Section as provided in Section
10		251.
11		(c) The credit may not be carried back. If the amount of
12		the credit exceeds the tax liability for the year, the excess
13		may be carried forward and applied to the tax liability of the
14		5 taxable years following the excess credit year. The tax
15		credit shall be applied to the earliest year for which there is
16		a tax liability. If there are credits for more than one year
17		that are available to offset a liability, the earlier credit
18		shall be applied first.
19		(d) A taxpayer claiming the credit under this Section must
20		maintain and record any information that the Illinois Student
21		Assistance Commission, the Office of the State Treasurer, or
22		the Department may require regarding the matching contribution
23		for which the credit is claimed.
24		(Source: P.A. 102-289, eff. 8-6-21; 103-396, eff. 1-1-24.)
25		(35 ILCS 5/227)

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1		Sec. 227. Adoption credit.
2		(a) Beginning with tax years ending on or after December
3		31, 2018 and ending with tax years ending on or before December
4		31, 2029, in the case of an individual taxpayer there shall be
5		allowed a credit against the tax imposed by subsections (a)
6		and (b) of Section 201 in an amount equal to the amount of the
7		federal adoption tax credit received pursuant to Section 23 of
8		the Internal Revenue Code with respect to the adoption of a
9		qualifying dependent child, subject to the limitations set
10		forth in this subsection and subsection (b). The aggregate
11		amount of qualified adoption expenses which may be taken into
12		account under this Section for all taxable years with respect
13		to the adoption of a qualifying dependent child by the
14		taxpayer shall not exceed $2,000 ($1,000 in the case of a
15		married individual filing a separate return). The credit under
16		this Section shall be allowed: (i) in the case of any expense
17		paid or incurred before the taxable year in which such
18		adoption becomes final, for the taxable year following the
19		taxable year during which such expense is paid or incurred,
20		and (ii) in the case of an expense paid or incurred during or
21		after the taxable year in which such adoption becomes final,
22		for the taxable year in which such expense is paid or incurred.
23		No credit shall be allowed under this Section for any expense
24		to the extent that funds for such expense are received under
25		any federal, State, or local program. For purposes of this
26		Section, spouses filing a joint return shall be considered one

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1		taxpayer.
2		For a non-resident or part-year resident, the amount of
3		the credit under this Section shall be in proportion to the
4		amount of income attributable to this State.
5		(b) Increased credit amount for resident children. With
6		respect to the adoption of an eligible child who is at least
7		one year old and resides in Illinois at the time the expenses
8		are paid or incurred, subsection (a) shall be applied by
9		substituting $5,000 ($2,500 in the case of a married
10		individual filing a separate return) for $2,000.
11		(c) In no event shall a credit under this Section reduce
12		the taxpayer's liability to less than zero. If the amount of
13		the credit exceeds the income tax liability for the applicable
14		tax year, the excess may be carried forward and applied to the
15		tax liability of the 5 taxable years following the excess
16		credit year. The credit shall be applied to the earliest year
17		for which there is a tax liability. If there are credits from
18		more than one year that are available to offset a liability,
19		the earlier credit shall be applied first.
20		(d) The term "qualified adoption expenses" shall have the
21		same meaning as under Section 23(d) of the Internal Revenue
22		Code.
23		(Source: P.A. 100-587, eff. 6-4-18; 101-81, eff. 7-12-19.)
24		ARTICLE 95.

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1		Section 95-5. The Property Tax Code is amended by changing
2		Section 20-130 as follows:
3		(35 ILCS 200/20-130)
4		Sec. 20-130. Distribution of taxes in counties of less
5		than 3,000,000; return of erroneous distribution.
6		(a) All distributions of taxes collected and interest
7		earned thereon by a county on behalf of taxing districts must
8		be made by the county treasurer, in counties with less than
9		3,000,000 inhabitants, within 30 days after the due date and
10		at 30 days intervals thereafter, unless the amount to be
11		distributed is less than $5. The county treasurer shall
12		distribute the taxes collected at the next 30-day interval if
13		the taxes collected are $5 or more. If the tax collections for
14		a taxing district are less than $5 for 3 consecutive 30-day
15		intervals, the county treasurer shall automatically distribute
16		the taxes collected to the unit of local government on the
17		third 30-day interval. All interest earned by a county on
18		behalf of taxing districts must be distributed by the county
19		treasurer, in counties with less than 3,000,000 inhabitants,
20		no later than the last distribution of taxes. The county
21		treasurer shall determine the manner in which all
22		distributions under this Section are to be made. The manner of
23		distribution may include, but is not limited to, check or
24		electronic funds transfer.
25		(b) Notwithstanding any other law to the contrary, if a

HB4951 Enrolled - 903 - LRB103 38094 HLH 68226 b
1		county makes an erroneous distribution of taxes collected and
2		interest earned thereon, upon majority vote of the governing
3		board of the taxing district that received the erroneous
4		distribution, the taxing district shall return the funds to
5		the county treasurer.
6		(Source: P.A. 91-378, eff. 7-30-99.)
7		ARTICLE 100.
8		Section 100-5. The Illinois Income Tax Act is amended by
9		adding Section 244 as follows:
10		(35 ILCS 5/244 new)
11		Sec. 244. Child tax credit.
12		(a) For the taxable years beginning on or after January 1,
13		2024, each individual taxpayer who has at least one qualifying
14		child who is younger than 12 years of age as of the last day of
15		the taxable year is entitled to a credit against the tax
16		imposed by subsections (a) and (b) of Section 201. For tax
17		years beginning on or after January 1, 2024 and before January
18		1, 2025, the credit shall be equal to 20% of the credit allowed
19		to the taxpayer under Section 212 of this Act for that taxable
20		year. For tax years beginning on or after January 1, 2025, the
21		amount of the credit shall be equal to 40% of the credit
22		allowed to the taxpayer under Section 212 of this Act for that
23		taxable year.

HB4951 Enrolled - 904 - LRB103 38094 HLH 68226 b
1		(b) If the amount of the credit exceeds the income tax
2		liability for the applicable tax year, then the excess credit
3		shall be refunded the taxpayer. The amount of the refund under
4		this Section shall not be included in the taxpayer's income or
5		resources for the purposes of determining eligibility or
6		benefit level in any means-tested benefit program administered
7		by a governmental entity unless required by federal law.
8		(c) The Department may adopt rules to carry out the
9		provisions of this Section.
10		(d) As used in this Section, "qualifying child" has the
11		meaning given to that term in Section 152 of the Internal
12		Revenue Code.
13		(e) This Section is exempt from the provisions of Section
14		250.
15		ARTICLE 105.
16		Section 105-5. The Illinois Income Tax Act is amended by
17		changing Section 207 as follows:
18		(35 ILCS 5/207) (from Ch. 120, par. 2-207)
19		Sec. 207. Net Losses.
20		(a) If after applying all of the (i) modifications
21		provided for in paragraph (2) of Section 203(b), paragraph (2)
22		of Section 203(c) and paragraph (2) of Section 203(d) and (ii)
23		the allocation and apportionment provisions of Article 3 of

HB4951 Enrolled - 905 - LRB103 38094 HLH 68226 b
1		this Act and subsection (c) of this Section, the taxpayer's
2		net income results in a loss;
3		(1) for any taxable year ending prior to December 31,
4		1999, such loss shall be allowed as a carryover or
5		carryback deduction in the manner allowed under Section
6		172 of the Internal Revenue Code;
7		(2) for any taxable year ending on or after December
8		31, 1999 and prior to December 31, 2003, such loss shall be
9		allowed as a carryback to each of the 2 taxable years
10		preceding the taxable year of such loss and shall be a net
11		operating loss carryover to each of the 20 taxable years
12		following the taxable year of such loss;
13		(3) for any taxable year ending on or after December
14		31, 2003 and prior to December 31, 2021, such loss shall be
15		allowed as a net operating loss carryover to each of the 12
16		taxable years following the taxable year of such loss,
17		except as provided in subsection (d); and
18		(4) for any taxable year ending on or after December
19		31, 2021, and for any net loss incurred in a taxable year
20		prior to a taxable year ending on or after December 31,
21		2021 for which the statute of limitation for utilization
22		of such net loss has not expired, such loss shall be
23		allowed as a net operating loss carryover to each of the 20
24		taxable years following the taxable year of such loss,
25		except as provided in subsection (d).
26		(a-5) Election to relinquish carryback and order of

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1		application of losses.
2		(A) For losses incurred in tax years ending prior
3		to December 31, 2003, the taxpayer may elect to
4		relinquish the entire carryback period with respect to
5		such loss. Such election shall be made in the form and
6		manner prescribed by the Department and shall be made
7		by the due date (including extensions of time) for
8		filing the taxpayer's return for the taxable year in
9		which such loss is incurred, and such election, once
10		made, shall be irrevocable.
11		(B) The entire amount of such loss shall be
12		carried to the earliest taxable year to which such
13		loss may be carried. The amount of such loss which
14		shall be carried to each of the other taxable years
15		shall be the excess, if any, of the amount of such loss
16		over the sum of the deductions for carryback or
17		carryover of such loss allowable for each of the prior
18		taxable years to which such loss may be carried.
19		(b) Any loss determined under subsection (a) of this
20		Section must be carried back or carried forward in the same
21		manner for purposes of subsections (a) and (b) of Section 201
22		of this Act as for purposes of subsections (c) and (d) of
23		Section 201 of this Act.
24		(c) Notwithstanding any other provision of this Act, for
25		each taxable year ending on or after December 31, 2008, for
26		purposes of computing the loss for the taxable year under

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1		subsection (a) of this Section and the deduction taken into
2		account for the taxable year for a net operating loss
3		carryover under paragraphs (1), (2), and (3) of subsection (a)
4		of this Section, the loss and net operating loss carryover
5		shall be reduced in an amount equal to the reduction to the net
6		operating loss and net operating loss carryover to the taxable
7		year, respectively, required under Section 108(b)(2)(A) of the
8		Internal Revenue Code, multiplied by a fraction, the numerator
9		of which is the amount of discharge of indebtedness income
10		that is excluded from gross income for the taxable year (but
11		only if the taxable year ends on or after December 31, 2008)
12		under Section 108(a) of the Internal Revenue Code and that
13		would have been allocated and apportioned to this State under
14		Article 3 of this Act but for that exclusion, and the
15		denominator of which is the total amount of discharge of
16		indebtedness income excluded from gross income under Section
17		108(a) of the Internal Revenue Code for the taxable year. The
18		reduction required under this subsection (c) shall be made
19		after the determination of Illinois net income for the taxable
20		year in which the indebtedness is discharged.
21		(d) In the case of a corporation (other than a Subchapter S
22		corporation): ,
23		(1) no carryover deduction shall be allowed under this
24		Section for any taxable year ending after December 31,
25		2010 and prior to December 31, 2012; , and
26		(2) no carryover deduction shall exceed $100,000 for

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1		any taxable year ending on or after December 31, 2012 and
2		prior to December 31, 2014 and for any taxable year ending
3		on or after December 31, 2021 and prior to December 31,
4		2024; and
5		(3) no carryover deduction shall exceed $500,000 for
6		any taxable year ending on or after December 31, 2024 and
7		prior to December 31, 2027.
8		For the provided that, for purposes of determining the
9		taxable years to which a net loss may be carried under
10		subsection (a) of this Section, no taxable year for which a
11		deduction is disallowed under this subsection, or for which
12		the deduction would exceed $100,000 or $500,000, as
13		applicable, if not for this subsection, shall be counted.
14		(e) In the case of a residual interest holder in a real
15		estate mortgage investment conduit subject to Section 860E of
16		the Internal Revenue Code, the net loss in subsection (a)
17		shall be equal to:
18		(1) the amount computed under subsection (a), without
19		regard to this subsection (e), or if that amount is
20		positive, zero;
21		(2) minus an amount equal to the amount computed under
22		subsection (a), without regard to this subsection (e),
23		minus the amount that would be computed under subsection
24		(a) if the taxpayer's federal taxable income were computed
25		without regard to Section 860E of the Internal Revenue
26		Code and without regard to this subsection (e).

HB4951 Enrolled - 909 - LRB103 38094 HLH 68226 b
1		The modification in this subsection (e) is exempt from the
2		provisions of Section 250.
3		(Source: P.A. 102-16, eff. 6-17-21; 102-669, eff. 11-16-21.)
4		ARTICLE 110.
5		Section 110-5. The Use Tax Act is amended by changing
6		Section 9 as follows:
7		(35 ILCS 105/9) (from Ch. 120, par. 439.9)
8		Sec. 9. Except as to motor vehicles, watercraft, aircraft,
9		and trailers that are required to be registered with an agency
10		of this State, each retailer required or authorized to collect
11		the tax imposed by this Act shall pay to the Department the
12		amount of such tax (except as otherwise provided) at the time
13		when he is required to file his return for the period during
14		which such tax was collected, less a discount of 2.1% prior to
15		January 1, 1990, and 1.75% on and after January 1, 1990, or $5
16		per calendar year, whichever is greater, which is allowed to
17		reimburse the retailer for expenses incurred in collecting the
18		tax, keeping records, preparing and filing returns, remitting
19		the tax and supplying data to the Department on request.
20		Beginning with returns due on or after January 1, 2025, the
21		discount allowed in this Section, the Retailers' Occupation
22		Tax Act, the Service Occupation Tax Act, and the Service Use
23		Tax Act, including any local tax administered by the

HB4951 Enrolled - 910 - LRB103 38094 HLH 68226 b
1		Department and reported on the same return, shall not exceed
2		$1,000 per month in the aggregate for returns other than
3		transaction returns filed during the month. When determining
4		the discount allowed under this Section, retailers shall
5		include the amount of tax that would have been due at the 6.25%
6		rate but for the 1.25% rate imposed on sales tax holiday items
7		under Public Act 102-700. The discount under this Section is
8		not allowed for the 1.25% portion of taxes paid on aviation
9		fuel that is subject to the revenue use requirements of 49
10		U.S.C. 47107(b) and 49 U.S.C. 47133. When determining the
11		discount allowed under this Section, retailers shall include
12		the amount of tax that would have been due at the 1% rate but
13		for the 0% rate imposed under Public Act 102-700. In the case
14		of retailers who report and pay the tax on a transaction by
15		transaction basis, as provided in this Section, such discount
16		shall be taken with each such tax remittance instead of when
17		such retailer files his periodic return, but, beginning with
18		returns due on or after January 1, 2025, the discount allowed
19		under this Section and the Retailers' Occupation Tax Act,
20		including any local tax administered by the Department and
21		reported on the same transaction return, shall not exceed
22		$1,000 per month for all transaction returns filed during the
23		month. The discount allowed under this Section is allowed only
24		for returns that are filed in the manner required by this Act.
25		The Department may disallow the discount for retailers whose
26		certificate of registration is revoked at the time the return

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1		is filed, but only if the Department's decision to revoke the
2		certificate of registration has become final. A retailer need
3		not remit that part of any tax collected by him to the extent
4		that he is required to remit and does remit the tax imposed by
5		the Retailers' Occupation Tax Act, with respect to the sale of
6		the same property.
7		Where such tangible personal property is sold under a
8		conditional sales contract, or under any other form of sale
9		wherein the payment of the principal sum, or a part thereof, is
10		extended beyond the close of the period for which the return is
11		filed, the retailer, in collecting the tax (except as to motor
12		vehicles, watercraft, aircraft, and trailers that are required
13		to be registered with an agency of this State), may collect for
14		each tax return period, only the tax applicable to that part of
15		the selling price actually received during such tax return
16		period.
17		Except as provided in this Section, on or before the
18		twentieth day of each calendar month, such retailer shall file
19		a return for the preceding calendar month. Such return shall
20		be filed on forms prescribed by the Department and shall
21		furnish such information as the Department may reasonably
22		require. The return shall include the gross receipts on food
23		for human consumption that is to be consumed off the premises
24		where it is sold (other than alcoholic beverages, food
25		consisting of or infused with adult use cannabis, soft drinks,
26		and food that has been prepared for immediate consumption)

HB4951 Enrolled - 912 - LRB103 38094 HLH 68226 b
1		which were received during the preceding calendar month,
2		quarter, or year, as appropriate, and upon which tax would
3		have been due but for the 0% rate imposed under Public Act
4		102-700. The return shall also include the amount of tax that
5		would have been due on food for human consumption that is to be
6		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) but for the 0% rate imposed under
10		Public Act 102-700.
11		On and after January 1, 2018, except for returns required
12		to be filed prior to January 1, 2023 for motor vehicles,
13		watercraft, aircraft, and trailers that are required to be
14		registered with an agency of this State, with respect to
15		retailers whose annual gross receipts average $20,000 or more,
16		all returns required to be filed pursuant to this Act shall be
17		filed electronically. On and after January 1, 2023, with
18		respect to retailers whose annual gross receipts average
19		$20,000 or more, all returns required to be filed pursuant to
20		this Act, including, but not limited to, returns for motor
21		vehicles, watercraft, aircraft, and trailers that are required
22		to be registered with an agency of this State, shall be filed
23		electronically. Retailers who demonstrate that they do not
24		have access to the Internet or demonstrate hardship in filing
25		electronically may petition the Department to waive the
26		electronic filing requirement.

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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 the business of selling tangible
11		personal property at retail in this State;
12		3. The total amount of taxable receipts received by
13		him during the preceding calendar month from sales of
14		tangible personal property by him during such preceding
15		calendar month, including receipts from charge and time
16		sales, but less all deductions allowed by law;
17		4. The amount of credit provided in Section 2d of this
18		Act;
19		5. The amount of tax due;
20		5-5. The signature of the taxpayer; and
21		6. Such other reasonable information as the Department
22		may require.
23		Each retailer required or authorized to collect the tax
24		imposed by this Act on aviation fuel sold at retail in this
25		State during the preceding calendar month shall, instead of
26		reporting and paying tax on aviation fuel as otherwise

HB4951 Enrolled - 914 - LRB103 38094 HLH 68226 b
1		required by this Section, report and pay such tax on a separate
2		aviation fuel tax return. The requirements related to the
3		return shall be as otherwise provided in this Section.
4		Notwithstanding any other provisions of this Act to the
5		contrary, retailers collecting tax on aviation fuel shall file
6		all aviation fuel tax returns and shall make all aviation fuel
7		tax payments by electronic means in the manner and form
8		required by the Department. For purposes of this Section,
9		"aviation fuel" means jet fuel and 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, retailers 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		Beginning October 1, 1993, a taxpayer who has an average
20		monthly tax liability of $150,000 or more shall make all
21		payments required by rules of the Department by electronic
22		funds transfer. Beginning October 1, 1994, a taxpayer who has
23		an average monthly tax liability of $100,000 or more shall
24		make all payments required by rules of the Department by
25		electronic funds transfer. Beginning October 1, 1995, a
26		taxpayer who has an average monthly tax liability of $50,000

HB4951 Enrolled - 915 - LRB103 38094 HLH 68226 b
1		or more shall make all payments required by rules of the
2		Department by electronic funds transfer. Beginning October 1,
3		2000, a taxpayer who has an annual tax liability of $200,000 or
4		more shall make all payments required by rules of the
5		Department by electronic funds transfer. The term "annual tax
6		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. The term "average monthly
10		tax liability" means the sum of the taxpayer's liabilities
11		under this Act, and under all other State and local occupation
12		and use tax laws administered by the Department, for the
13		immediately preceding calendar year divided by 12. Beginning
14		on October 1, 2002, a taxpayer who has a tax liability in the
15		amount set forth in subsection (b) of Section 2505-210 of the
16		Department of Revenue Law shall make all payments required by
17		rules of the Department by electronic funds transfer.
18		Before August 1 of each year beginning in 1993, the
19		Department shall notify all taxpayers required to make
20		payments by electronic funds transfer. All taxpayers required
21		to make payments by electronic funds transfer shall make those
22		payments for a minimum of one year beginning on October 1.
23		Any taxpayer not required to make payments by electronic
24		funds transfer may make payments by electronic funds transfer
25		with the permission of the Department.
26		All taxpayers required to make payment by electronic funds

HB4951 Enrolled - 916 - LRB103 38094 HLH 68226 b
1		transfer and any taxpayers authorized to voluntarily make
2		payments by electronic funds transfer shall make those
3		payments in the manner authorized by the Department.
4		The Department shall adopt such rules as are necessary to
5		effectuate a program of electronic funds transfer and the
6		requirements of this Section.
7		Before October 1, 2000, if the taxpayer's average monthly
8		tax liability to the Department under this Act, the Retailers'
9		Occupation Tax Act, the Service Occupation Tax Act, the
10		Service Use Tax Act was $10,000 or more during the preceding 4
11		complete calendar quarters, he shall file a return with the
12		Department each month by the 20th day of the month next
13		following the month during which such tax liability is
14		incurred and shall make payments to the Department on or
15		before the 7th, 15th, 22nd and last day of the month during
16		which such liability is incurred. On and after October 1,
17		2000, if the taxpayer's average monthly tax liability to the
18		Department under this Act, the Retailers' Occupation Tax Act,
19		the Service Occupation Tax Act, and the Service Use Tax Act was
20		$20,000 or more during the preceding 4 complete calendar
21		quarters, he shall file a return with the Department each
22		month by the 20th day of the month next following the month
23		during which such tax liability is incurred and shall make
24		payment to the Department on or before the 7th, 15th, 22nd and
25		last day of the month during which such liability is incurred.
26		If the month during which such tax liability is incurred began

HB4951 Enrolled - 917 - LRB103 38094 HLH 68226 b
1		prior to January 1, 1985, each payment shall be in an amount
2		equal to 1/4 of the taxpayer's actual liability for the month
3		or an amount set by the Department not to exceed 1/4 of the
4		average monthly liability of the taxpayer to the Department
5		for the preceding 4 complete calendar quarters (excluding the
6		month of highest liability and the month of lowest liability
7		in such 4 quarter period). If the month during which such tax
8		liability is incurred begins on or after January 1, 1985, and
9		prior to January 1, 1987, each payment shall be in an amount
10		equal to 22.5% of the taxpayer's actual liability for the
11		month or 27.5% of the taxpayer's liability for the same
12		calendar month of the preceding year. If the month during
13		which such tax liability is incurred begins on or after
14		January 1, 1987, and prior to January 1, 1988, each payment
15		shall be in an amount equal to 22.5% of the taxpayer's actual
16		liability for the month or 26.25% of the taxpayer's liability
17		for the same calendar month of the preceding year. If the month
18		during which such tax liability is incurred begins on or after
19		January 1, 1988, and prior to January 1, 1989, or begins on or
20		after January 1, 1996, each payment shall be in an amount equal
21		to 22.5% of the taxpayer's actual liability for the month or
22		25% of the taxpayer's liability for the same calendar month of
23		the preceding year. If the month during which such tax
24		liability is incurred begins on or after January 1, 1989, and
25		prior to January 1, 1996, each payment shall be in an amount
26		equal to 22.5% of the taxpayer's actual liability for the

HB4951 Enrolled - 918 - LRB103 38094 HLH 68226 b
1		month or 25% of the taxpayer's liability for the same calendar
2		month of the preceding year or 100% of the taxpayer's actual
3		liability for the quarter monthly reporting period. The amount
4		of such quarter monthly payments shall be credited against the
5		final tax liability of the taxpayer's return for that month.
6		Before October 1, 2000, once applicable, the requirement of
7		the making of quarter monthly payments to the Department 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 change in such taxpayer's reporting status. On
21		and after 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 $19,000 or until such

HB4951 Enrolled - 919 - LRB103 38094 HLH 68226 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 $20,000. 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 $20,000
8		threshold stated above, then such taxpayer may petition the
9		Department for a change in such taxpayer's reporting status.
10		The Department shall change such taxpayer's reporting status
11		unless it finds that such change is seasonal in nature and not
12		likely to be long term. Quarter monthly payment status shall
13		be determined under this paragraph as if the rate reduction to
14		1.25% in Public Act 102-700 on sales tax holiday items had not
15		occurred. For quarter monthly payments due on or after July 1,
16		2023 and through June 30, 2024, "25% of the taxpayer's
17		liability for the same calendar month of the preceding year"
18		shall be determined as if the rate reduction to 1.25% in Public
19		Act 102-700 on sales tax holiday items had not occurred.
20		Quarter monthly payment status shall be determined under this
21		paragraph as if the rate reduction to 0% in Public Act 102-700
22		on 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, soft
25		drinks, and food that has been prepared for immediate
26		consumption) had not occurred. For quarter monthly payments

HB4951 Enrolled - 920 - LRB103 38094 HLH 68226 b
1		due under this paragraph on or after July 1, 2023 and through
2		June 30, 2024, "25% of the taxpayer's liability for the same
3		calendar month of the preceding year" shall be determined as
4		if the rate reduction to 0% in Public Act 102-700 had not
5		occurred. If any such quarter monthly payment is not paid at
6		the time or in the amount required by this Section, then the
7		taxpayer shall be liable for penalties and interest on the
8		difference between the minimum amount due and the amount of
9		such quarter monthly payment actually and timely paid, except
10		insofar as the taxpayer has previously made payments for that
11		month to the Department in excess of the minimum payments
12		previously due as provided in this Section. The Department
13		shall make reasonable rules and regulations to govern the
14		quarter monthly payment amount and quarter monthly payment
15		dates for taxpayers who file on other than a calendar monthly
16		basis.
17		If any such payment provided for in this Section exceeds
18		the taxpayer's liabilities under this Act, the Retailers'
19		Occupation Tax Act, the Service Occupation Tax Act and the
20		Service Use Tax Act, as shown by an original monthly return,
21		the Department shall issue to the taxpayer a credit memorandum
22		no later than 30 days after the date of payment, which
23		memorandum may be submitted by the taxpayer to the Department
24		in payment of tax liability subsequently to be remitted by the
25		taxpayer to the Department or be assigned by the taxpayer to a
26		similar taxpayer under this Act, the Retailers' Occupation Tax

HB4951 Enrolled - 921 - LRB103 38094 HLH 68226 b
1		Act, the Service Occupation Tax Act or the Service Use Tax Act,
2		in accordance with reasonable rules and regulations to be
3		prescribed by the Department, except that if such excess
4		payment is shown on an original monthly return and is made
5		after December 31, 1986, no credit memorandum shall be issued,
6		unless requested by the taxpayer. If no such request is made,
7		the taxpayer may credit such excess payment against tax
8		liability subsequently to be remitted by the taxpayer to the
9		Department under this Act, the Retailers' Occupation Tax Act,
10		the Service Occupation Tax Act or the Service Use Tax Act, in
11		accordance with reasonable rules and regulations prescribed by
12		the Department. If the Department subsequently determines that
13		all or any part of the credit taken was not actually due to the
14		taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
15		be reduced, if necessary, to reflect by 2.1% or 1.75% of the
16		difference between the credit taken and that actually due, and
17		the taxpayer shall be liable for penalties and interest on
18		such difference.
19		If the retailer is otherwise required to file a monthly
20		return and if the retailer's average monthly tax liability to
21		the Department does not exceed $200, the Department may
22		authorize his returns to be filed on a quarter annual basis,
23		with the return for January, February, and March of a given
24		year being due by April 20 of such year; with the return for
25		April, May and June of a given year being due by July 20 of
26		such year; with the return for July, August and September of a

HB4951 Enrolled - 922 - LRB103 38094 HLH 68226 b
1		given year being due by October 20 of such year, and with the
2		return for October, November and December of a given year
3		being due by January 20 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		liability to the Department does not exceed $50, the
7		Department may authorize his returns to be filed on an annual
8		basis, with the return for a given year being due by January 20
9		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 retailer may file his return, in the
15		case of any retailer who ceases to engage in a kind of business
16		which makes him responsible for filing returns under this Act,
17		such retailer shall file a final return under this Act with the
18		Department not more than one month after discontinuing such
19		business.
20		In addition, with respect to motor vehicles, watercraft,
21		aircraft, and trailers that are required to be registered with
22		an agency of this State, except as otherwise provided in this
23		Section, every retailer selling this kind of tangible personal
24		property shall file, with the Department, upon a form to be
25		prescribed and supplied by the Department, a separate return
26		for each such item of tangible personal property which the

HB4951 Enrolled - 923 - LRB103 38094 HLH 68226 b
1		retailer sells, except that if, in the same transaction, (i) a
2		retailer of aircraft, watercraft, motor vehicles or trailers
3		transfers more than one aircraft, watercraft, motor vehicle or
4		trailer to another aircraft, watercraft, motor vehicle or
5		trailer retailer for the purpose of resale or (ii) a retailer
6		of aircraft, watercraft, motor vehicles, or trailers transfers
7		more than one aircraft, watercraft, motor vehicle, or trailer
8		to a purchaser for use as a qualifying rolling stock as
9		provided in Section 3-55 of this Act, then that seller may
10		report the transfer of all the aircraft, watercraft, motor
11		vehicles or trailers involved in that transaction to the
12		Department on the same uniform invoice-transaction reporting
13		return form. For purposes of this Section, "watercraft" means
14		a Class 2, Class 3, or Class 4 watercraft as defined in Section
15		3-2 of the Boat Registration and Safety Act, a personal
16		watercraft, or any boat equipped with an inboard motor.
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, every person who is engaged in the
20		business of leasing or renting such items and who, in
21		connection with such business, sells any such item to a
22		retailer for the purpose of resale is, notwithstanding any
23		other provision of this Section to the contrary, authorized to
24		meet the return-filing requirement of this Act by reporting
25		the transfer of all the aircraft, watercraft, motor vehicles,
26		or trailers transferred for resale during a month to the

HB4951 Enrolled - 924 - LRB103 38094 HLH 68226 b
1		Department on the same uniform invoice-transaction reporting
2		return form on or before the 20th of the month following the
3		month in which the transfer takes place. Notwithstanding any
4		other provision of this Act to the contrary, all returns filed
5		under this paragraph must be filed by electronic means in the
6		manner and form as required by the Department.
7		The transaction reporting return in the case of motor
8		vehicles or trailers that are required to be registered with
9		an agency of this State, shall be the same document as the
10		Uniform Invoice referred to in Section 5-402 of the Illinois
11		Vehicle Code and must show the name and address of the seller;
12		the name and address of the purchaser; the amount of the
13		selling price including the amount allowed by the retailer for
14		traded-in property, if any; the amount allowed by the retailer
15		for the traded-in tangible personal property, if any, to the
16		extent to which Section 2 of this Act allows an exemption for
17		the value of traded-in property; the balance payable after
18		deducting such trade-in allowance from the total selling
19		price; the amount of tax due from the retailer with respect to
20		such transaction; the amount of tax collected from the
21		purchaser by the retailer on such transaction (or satisfactory
22		evidence that such tax is not due in that particular instance,
23		if that is claimed to be the fact); the place and date of the
24		sale; a sufficient identification of the property sold; such
25		other information as is required in Section 5-402 of the
26		Illinois Vehicle Code, and such other information as the

HB4951 Enrolled - 925 - LRB103 38094 HLH 68226 b
1		Department may reasonably require.
2		The transaction reporting return in the case of watercraft
3		and aircraft must show the name and address of the seller; the
4		name and address of the purchaser; the amount of the selling
5		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 2 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, and
17		such other information as the Department may reasonably
18		require.
19		Such transaction reporting return shall be filed not later
20		than 20 days after the date of delivery of the item that is
21		being sold, but may be filed by the retailer at any time sooner
22		than that if he chooses to do so. The transaction reporting
23		return and tax remittance or proof of exemption from the tax
24		that is imposed by this Act may be transmitted to the
25		Department by way of the State agency with which, or State
26		officer with whom, the tangible personal property must be

HB4951 Enrolled - 926 - LRB103 38094 HLH 68226 b
1		titled or registered (if titling or registration is required)
2		if the Department and such agency or State officer determine
3		that this procedure will expedite the processing of
4		applications for title or registration.
5		With each such transaction reporting return, the retailer
6		shall remit the proper amount of tax due (or shall submit
7		satisfactory evidence that the sale is not taxable if that is
8		the case), to the Department or its agents, whereupon the
9		Department shall issue, in the purchaser's name, a tax receipt
10		(or a certificate of exemption if the Department is satisfied
11		that the particular sale is tax exempt) which such purchaser
12		may submit to the agency with which, or State officer with
13		whom, he must title or register the tangible personal property
14		that is involved (if titling or registration is required) in
15		support of such purchaser's application for an Illinois
16		certificate or other evidence of title or registration to such
17		tangible personal property.
18		No retailer's failure or refusal to remit tax under this
19		Act precludes a user, who has paid the proper tax to the
20		retailer, from obtaining his certificate of title or other
21		evidence of title or registration (if titling or registration
22		is required) upon satisfying the Department that such user has
23		paid the proper tax (if tax is due) to the retailer. The
24		Department shall adopt appropriate rules to carry out the
25		mandate of this paragraph.
26		If the user who would otherwise pay tax to the retailer

HB4951 Enrolled - 927 - LRB103 38094 HLH 68226 b
1		wants the transaction reporting return filed and the payment
2		of tax or proof of exemption made to the Department before the
3		retailer is willing to take these actions and such user has not
4		paid the tax to the retailer, such user may certify to the fact
5		of such delay by the retailer, and may (upon the Department
6		being satisfied of the truth of such certification) transmit
7		the information required by the transaction reporting return
8		and the remittance for tax or proof of exemption directly to
9		the Department and obtain his tax receipt or exemption
10		determination, in which event the transaction reporting return
11		and tax remittance (if a tax payment was required) shall be
12		credited by the Department to the proper retailer's account
13		with the Department, but without the vendor's 2.1% or 1.75%
14		discount provided for in this Section being allowed. When the
15		user pays the tax directly to the Department, he shall pay the
16		tax in the same amount and in the same form in which it would
17		be remitted if the tax had been remitted to the Department by
18		the retailer.
19		Where a retailer collects the tax with respect to the
20		selling price of tangible personal property which he sells and
21		the purchaser thereafter returns such tangible personal
22		property and the retailer refunds the selling price thereof to
23		the purchaser, such retailer shall also refund, to the
24		purchaser, the tax so collected from the purchaser. When
25		filing his return for the period in which he refunds such tax
26		to the purchaser, the retailer may deduct the amount of the tax

HB4951 Enrolled - 928 - LRB103 38094 HLH 68226 b
1		so refunded by him to the purchaser from any other use tax
2		which such retailer may be required to pay or remit to the
3		Department, as shown by such return, if the amount of the tax
4		to be deducted was previously remitted to the Department by
5		such retailer. If the retailer has not previously remitted the
6		amount of such tax to the Department, he is entitled to no
7		deduction under this Act upon refunding such tax to the
8		purchaser.
9		Any retailer filing a return under this Section shall also
10		include (for the purpose of paying tax thereon) the total tax
11		covered by such return upon the selling price of tangible
12		personal property purchased by him at retail from a retailer,
13		but as to which the tax imposed by this Act was not collected
14		from the retailer filing such return, and such retailer shall
15		remit the amount of such tax to the Department when filing such
16		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 retailers, who are required to file
20		returns hereunder and also under the Retailers' Occupation Tax
21		Act, to furnish all the return information required by both
22		Acts on the one form.
23		Where the retailer has more than one business registered
24		with the Department under separate registration under this
25		Act, such retailer may not file each return that is due as a
26		single return covering all such registered businesses, but

HB4951 Enrolled - 929 - LRB103 38094 HLH 68226 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 Sales Tax Reform Fund, a special
4		fund in the State Treasury which is hereby created, the net
5		revenue realized for the preceding month from the 1% tax
6		imposed under this Act.
7		Beginning January 1, 1990, each month the Department shall
8		pay into the County and Mass Transit District Fund 4% of the
9		net revenue realized for the preceding month from the 6.25%
10		general rate on the selling price of tangible personal
11		property which is purchased outside Illinois at retail from a
12		retailer and which is titled or registered by an agency of this
13		State's government.
14		Beginning January 1, 1990, each month the Department shall
15		pay into the State and Local Sales Tax Reform Fund, a special
16		fund in the State Treasury, 20% of the net revenue realized for
17		the preceding month from the 6.25% general rate on the selling
18		price of tangible personal property, other than (i) tangible
19		personal property which is purchased outside Illinois at
20		retail from a retailer and which is titled or registered by an
21		agency of this State's government and (ii) aviation fuel sold
22		on or after December 1, 2019. This exception for aviation fuel
23		only applies for so long as the revenue use requirements of 49
24		U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
25		For aviation fuel sold on or after December 1, 2019, each
26		month the Department shall pay into the State Aviation Program

HB4951 Enrolled - 930 - LRB103 38094 HLH 68226 b
1		Fund 20% of the net revenue realized for the preceding month
2		from the 6.25% general rate on the selling price of aviation
3		fuel, less an amount estimated by the Department to be
4		required for refunds of the 20% portion of the tax on aviation
5		fuel under this Act, which amount shall be deposited into the
6		Aviation Fuel Sales Tax Refund Fund. The Department shall only
7		pay moneys into the State Aviation Program Fund and the
8		Aviation Fuels Sales Tax Refund Fund under this Act for so long
9		as the revenue use requirements of 49 U.S.C. 47107(b) and 49
10		U.S.C. 47133 are binding on the State.
11		Beginning August 1, 2000, each month the Department shall
12		pay into the State and Local Sales Tax Reform Fund 100% of the
13		net revenue realized for the preceding month from the 1.25%
14		rate on the selling price of motor fuel and gasohol. If, in any
15		month, the tax on sales tax holiday items, as defined in
16		Section 3-6, is imposed at the rate of 1.25%, then the
17		Department shall pay 100% of the net revenue realized for that
18		month from the 1.25% rate on the selling price of sales tax
19		holiday items into the State and Local Sales Tax Reform Fund.
20		Beginning January 1, 1990, each month the Department shall
21		pay into the Local Government Tax Fund 16% of the net revenue
22		realized for the preceding month from the 6.25% general rate
23		on the selling price of tangible personal property which is
24		purchased outside Illinois at retail from a retailer and which
25		is titled or registered by an agency of this State's
26		government.

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

HB4951 Enrolled - 932 - LRB103 38094 HLH 68226 b
1		in any State fiscal year. As used in this paragraph, the
2		"average monthly deficit" shall be equal to the difference
3		between the average monthly claims for payment by the fund and
4		the average monthly revenues deposited into the fund,
5		excluding payments made pursuant to this paragraph.
6		Beginning July 1, 2015, of the remainder of the moneys
7		received by the Department under this Act, the Service Use Tax
8		Act, the Service Occupation Tax Act, and the Retailers'
9		Occupation Tax Act, each month the Department shall deposit
10		$500,000 into the State Crime Laboratory Fund.
11		Of the remainder of the moneys received by the Department
12		pursuant to this Act, (a) 1.75% thereof shall be paid into the
13		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
14		and after July 1, 1989, 3.8% thereof shall be paid into the
15		Build Illinois Fund; provided, however, that if in any fiscal
16		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
17		may be, of the moneys received by the Department and required
18		to be paid into the Build Illinois Fund pursuant to Section 3
19		of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
20		Act, Section 9 of the Service Use Tax Act, and Section 9 of the
21		Service Occupation Tax Act, such Acts being hereinafter called
22		the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
23		may be, of moneys being hereinafter called the "Tax Act
24		Amount", and (2) the amount transferred to the Build Illinois
25		Fund from the State and Local Sales Tax Reform Fund shall be
26		less than the Annual Specified Amount (as defined in Section 3

HB4951 Enrolled - 933 - LRB103 38094 HLH 68226 b
1		of the Retailers' Occupation Tax Act), 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 if on the last
5		business day of any month the sum of (1) the Tax Act Amount
6		required to be deposited into the Build Illinois Bond Account
7		in the Build Illinois Fund during such month and (2) the amount
8		transferred during such month to the Build Illinois Fund from
9		the State and Local Sales Tax Reform Fund shall have been less
10		than 1/12 of the Annual Specified Amount, an amount equal to
11		the difference shall be immediately paid into the Build
12		Illinois Fund from other moneys received by the Department
13		pursuant to the Tax Acts; and, further provided, that in no
14		event shall the payments required under the preceding proviso
15		result in aggregate payments into the Build Illinois Fund
16		pursuant to this clause (b) for any fiscal year in excess of
17		the greater of (i) the Tax Act Amount or (ii) the Annual
18		Specified Amount for such fiscal year; and, further provided,
19		that the amounts payable into the Build Illinois Fund under
20		this clause (b) shall be payable only until such time as the
21		aggregate amount on deposit under each trust indenture
22		securing Bonds issued and outstanding pursuant to the Build
23		Illinois Bond Act is sufficient, taking into account any
24		future investment income, to fully provide, in accordance with
25		such indenture, for the defeasance of or the payment of the
26		principal of, premium, if any, and interest on the Bonds

HB4951 Enrolled - 934 - LRB103 38094 HLH 68226 b
1		secured by such indenture and on any Bonds expected to be
2		issued thereafter and all fees and costs payable with respect
3		thereto, all as certified by the Director of the Bureau of the
4		Budget (now Governor's Office of Management and Budget). If on
5		the last business day of any month in which Bonds are
6		outstanding pursuant to the Build Illinois Bond Act, the
7		aggregate of the moneys deposited in the Build Illinois Bond
8		Account in the Build Illinois Fund in such month shall be less
9		than the amount required to be transferred in such month from
10		the Build Illinois Bond Account to the Build Illinois Bond
11		Retirement and Interest Fund pursuant to Section 13 of the
12		Build Illinois Bond Act, an amount equal to such deficiency
13		shall be immediately paid from other moneys received by the
14		Department pursuant to the Tax Acts to the Build Illinois
15		Fund; provided, however, that any amounts paid to the Build
16		Illinois Fund in any fiscal year pursuant to this sentence
17		shall be deemed to constitute payments pursuant to clause (b)
18		of the preceding sentence and shall reduce the amount
19		otherwise payable for such fiscal year pursuant to clause (b)
20		of the preceding sentence. The moneys received by the
21		Department pursuant to this Act and required to be deposited
22		into the Build Illinois Fund are subject to the pledge, claim
23		and charge set forth in Section 12 of the Build Illinois Bond
24		Act.
25		Subject to payment of amounts into the Build Illinois Fund
26		as provided in the preceding paragraph or in any amendment

HB4951 Enrolled - 935 - LRB103 38094 HLH 68226 b
1		thereto hereafter enacted, the following specified monthly
2		installment of the amount requested in the certificate of the
3		Chairman of the Metropolitan Pier and Exposition Authority
4		provided under Section 8.25f of the State Finance Act, but not
5		in excess of the sums designated as "Total Deposit", shall be
6		deposited in the aggregate from collections under Section 9 of
7		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
8		9 of the Service Occupation Tax Act, and Section 3 of the
9		Retailers' Occupation Tax Act into the McCormick Place
10		Expansion Project Fund in the specified fiscal years.
11 Fiscal Year Total Deposit 12 1993 $0 13 1994 53,000,000 14 1995 58,000,000 15 1996 61,000,000 16 1997 64,000,000 17 1998 68,000,000 18 1999 71,000,000 19 2000 75,000,000 20 2001 80,000,000 21 2002 93,000,000 22 2003 99,000,000 23 2004 103,000,000 24 2005 108,000,000 25 2006 113,000,000 26 2007 119,000,000

HB4951 Enrolled - 936 - LRB103 38094 HLH 68226 b

1 2008 126,000,000 2 2009 132,000,000 3 2010 139,000,000 4 2011 146,000,000 5 2012 153,000,000 6 2013 161,000,000 7 2014 170,000,000 8 2015 179,000,000 9 2016 189,000,000 10 2017 199,000,000 11 2018 210,000,000 12 2019 221,000,000 13 2020 233,000,000 14 2021 300,000,000 15 2022 300,000,000 16 2023 300,000,000 17 2024 300,000,000 18 2025 300,000,000 19 2026 300,000,000 20 2027 375,000,000 21 2028 375,000,000 22 2029 375,000,000 23 2030 375,000,000 24 2031 375,000,000 25 2032 375,000,000 26 2033 375,000,000

HB4951 Enrolled - 937 - LRB103 38094 HLH 68226 b
1 2034 375,000,000 2 2035 375,000,000 3 2036 450,000,000 4 and 5 each fiscal year 6 thereafter that bonds 7 are outstanding under 8 Section 13.2 of the 9 Metropolitan Pier and 10 Exposition Authority Act, 11 but not after fiscal year 2060.
12		Beginning July 20, 1993 and in each month of each fiscal
13		year thereafter, one-eighth of the amount requested in the
14		certificate of the Chairman of the Metropolitan Pier and
15		Exposition Authority for that fiscal year, less the amount
16		deposited into the McCormick Place Expansion Project Fund by
17		the State Treasurer in the respective month under subsection
18		(g) of Section 13 of the Metropolitan Pier and Exposition
19		Authority Act, plus cumulative deficiencies in the deposits
20		required under this Section for previous months and years,
21		shall be deposited into the McCormick Place Expansion Project
22		Fund, until the full amount requested for the fiscal year, but
23		not in excess of the amount specified above as "Total
24		Deposit", has been deposited.
25		Subject to payment of amounts into the Capital Projects
26		Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,

HB4951 Enrolled - 938 - LRB103 38094 HLH 68226 b
1		and the McCormick Place Expansion Project Fund pursuant to the
2		preceding paragraphs or in any amendments thereto hereafter
3		enacted, for aviation fuel sold on or after December 1, 2019,
4		the Department shall each month deposit into the Aviation Fuel
5		Sales Tax Refund Fund an amount estimated by the Department to
6		be required for refunds of the 80% portion of the tax on
7		aviation fuel under this Act. The Department shall only
8		deposit moneys into the Aviation Fuel Sales Tax Refund Fund
9		under this paragraph for so long as the revenue use
10		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
11		binding on the State.
12		Subject to payment of amounts into the Build Illinois Fund
13		and the McCormick Place Expansion Project Fund pursuant to the
14		preceding paragraphs or in any amendments thereto hereafter
15		enacted, beginning July 1, 1993 and ending on September 30,
16		2013, the Department shall each month pay into the Illinois
17		Tax Increment Fund 0.27% of 80% of the net revenue realized for
18		the preceding month from the 6.25% general rate on the selling
19		price of tangible personal property.
20		Subject to payment of amounts into the Build Illinois
21		Fund, the McCormick Place Expansion Project Fund, the Illinois
22		Tax Increment Fund, and the Energy Infrastructure Fund
23		pursuant to the preceding paragraphs or in any amendments to
24		this Section hereafter enacted, beginning on the first day of
25		the first calendar month to occur on or after August 26, 2014
26		(the effective date of Public Act 98-1098), each month, from

HB4951 Enrolled - 939 - LRB103 38094 HLH 68226 b
1		the collections made under Section 9 of the Use Tax Act,
2		Section 9 of the Service Use Tax Act, Section 9 of the Service
3		Occupation Tax Act, and Section 3 of the Retailers' Occupation
4		Tax Act, the Department shall pay into the Tax Compliance and
5		Administration Fund, to be used, subject to appropriation, to
6		fund additional auditors and compliance personnel at the
7		Department of Revenue, an amount equal to 1/12 of 5% of 80% of
8		the cash receipts collected during the preceding fiscal year
9		by the Audit Bureau of the Department under the Use Tax Act,
10		the Service Use Tax Act, the Service Occupation Tax Act, the
11		Retailers' Occupation Tax Act, and associated local occupation
12		and use taxes administered by the Department.
13		Subject to payments of amounts into the Build Illinois
14		Fund, the McCormick Place Expansion Project Fund, the Illinois
15		Tax Increment Fund, and the Tax Compliance and Administration
16		Fund as provided in this Section, beginning on July 1, 2018 the
17		Department shall pay each month into the Downstate Public
18		Transportation Fund the moneys required to be so paid under
19		Section 2-3 of the Downstate Public Transportation Act.
20		Subject to successful execution and delivery of a
21		public-private agreement between the public agency and private
22		entity and completion of the civic build, beginning on July 1,
23		2023, of the remainder of the moneys received by the
24		Department under the Use Tax Act, the Service Use Tax Act, the
25		Service Occupation Tax Act, and this Act, the Department shall
26		deposit the following specified deposits in the aggregate from

HB4951 Enrolled - 940 - LRB103 38094 HLH 68226 b
1		collections under the Use Tax Act, the Service Use Tax Act, the
2		Service Occupation Tax Act, and the Retailers' Occupation Tax
3		Act, as required under Section 8.25g of the State Finance Act
4		for distribution consistent with the Public-Private
5		Partnership for Civic and Transit Infrastructure Project Act.
6		The moneys received by the Department pursuant to this Act and
7		required to be deposited into the Civic and Transit
8		Infrastructure Fund are subject to the pledge, claim, and
9		charge set forth in Section 25-55 of the Public-Private
10		Partnership for Civic and Transit Infrastructure Project Act.
11		As used in this paragraph, "civic build", "private entity",
12		"public-private agreement", and "public agency" have the
13		meanings provided in Section 25-10 of the Public-Private
14		Partnership for Civic and Transit Infrastructure Project Act.
15		Fiscal Year............................Total Deposit
16		2024....................................$200,000,000
17		2025....................................$206,000,000
18		2026....................................$212,200,000
19		2027....................................$218,500,000
20		2028....................................$225,100,000
21		2029....................................$288,700,000
22		2030....................................$298,900,000
23		2031....................................$309,300,000
24		2032....................................$320,100,000
25		2033....................................$331,200,000
26		2034....................................$341,200,000

HB4951 Enrolled - 941 - LRB103 38094 HLH 68226 b
1		2035....................................$351,400,000
2		2036....................................$361,900,000
3		2037....................................$372,800,000
4		2038....................................$384,000,000
5		2039....................................$395,500,000
6		2040....................................$407,400,000
7		2041....................................$419,600,000
8		2042....................................$432,200,000
9		2043....................................$445,100,000
10		Beginning July 1, 2021 and until July 1, 2022, subject to
11		the payment of amounts into the State and Local Sales Tax
12		Reform Fund, the Build Illinois Fund, the McCormick Place
13		Expansion Project Fund, the Illinois Tax Increment Fund, and
14		the Tax 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 16% of the net revenue
17		realized from the taxes imposed on motor fuel and gasohol.
18		Beginning July 1, 2022 and until July 1, 2023, subject to the
19		payment of amounts into the State and Local Sales Tax Reform
20		Fund, the Build Illinois Fund, the McCormick Place Expansion
21		Project Fund, the Illinois Tax Increment Fund, and the Tax
22		Compliance and Administration Fund as provided in this
23		Section, the Department shall pay each month into the Road
24		Fund the amount estimated to represent 32% of the net revenue
25		realized from the taxes imposed on motor fuel and gasohol.
26		Beginning July 1, 2023 and until July 1, 2024, subject to the

HB4951 Enrolled - 942 - LRB103 38094 HLH 68226 b
1		payment of amounts into the State and Local Sales Tax Reform
2		Fund, the Build Illinois Fund, the McCormick Place Expansion
3		Project Fund, the Illinois Tax Increment Fund, and the Tax
4		Compliance and Administration Fund as provided in this
5		Section, the Department shall pay each month into the Road
6		Fund the amount estimated to represent 48% of the net revenue
7		realized from the taxes imposed on motor fuel and gasohol.
8		Beginning July 1, 2024 and until July 1, 2025, subject to the
9		payment of amounts into the State and Local Sales Tax Reform
10		Fund, the Build Illinois Fund, the McCormick Place Expansion
11		Project Fund, the Illinois Tax Increment Fund, and the Tax
12		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 64% of the net revenue
15		realized from the taxes imposed on motor fuel and gasohol.
16		Beginning on July 1, 2025, subject to the payment of amounts
17		into the State and Local Sales Tax Reform Fund, the Build
18		Illinois Fund, the McCormick Place Expansion Project Fund, the
19		Illinois Tax Increment Fund, and the Tax Compliance and
20		Administration Fund as provided in this Section, the
21		Department shall pay each month into the Road Fund the amount
22		estimated to represent 80% of the net revenue realized from
23		the taxes imposed on motor fuel and gasohol. As used in this
24		paragraph "motor fuel" has the meaning given to that term in
25		Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
26		meaning given to that term in Section 3-40 of this Act.

HB4951 Enrolled - 943 - LRB103 38094 HLH 68226 b
1		Of the remainder of the moneys received by the Department
2		pursuant to this Act, 75% thereof shall be paid into the State
3		Treasury and 25% shall be reserved in a special account and
4		used only for the transfer to the Common School Fund as part of
5		the monthly transfer from the General Revenue Fund in
6		accordance with Section 8a of the State Finance Act.
7		As soon as possible after the first day of each month, upon
8		certification of the Department of Revenue, the Comptroller
9		shall order transferred and the Treasurer shall transfer from
10		the General Revenue Fund to the Motor Fuel Tax Fund an amount
11		equal to 1.7% of 80% of the net revenue realized under this Act
12		for the second preceding month. Beginning April 1, 2000, this
13		transfer is no longer required and shall not be made.
14		Net revenue realized for a month shall be the revenue
15		collected by the State pursuant to this Act, less the amount
16		paid out during that month as refunds to taxpayers for
17		overpayment of liability.
18		For greater simplicity of administration, manufacturers,
19		importers and wholesalers whose products are sold at retail in
20		Illinois by numerous retailers, and who wish to do so, may
21		assume the responsibility for accounting and paying to the
22		Department all tax accruing under this Act with respect to
23		such sales, if the retailers who are affected do not make
24		written objection to the Department to this arrangement.
25		(Source: P.A. 102-700, Article 60, Section 60-15, eff.
26		4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;

HB4951 Enrolled - 944 - LRB103 38094 HLH 68226 b
1		102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff.
2		7-28-23.)
3		Section 110-10. The Service Use Tax Act is amended by
4		changing Section 9 as follows:
5		(35 ILCS 110/9) (from Ch. 120, par. 439.39)
6		Sec. 9. Each serviceman required or authorized to collect
7		the tax herein imposed shall pay to the Department the amount
8		of such tax (except as otherwise provided) at the time when he
9		is required to file his return for the period during which such
10		tax was collected, less a discount of 2.1% prior to January 1,
11		1990 and 1.75% on and after January 1, 1990, or $5 per calendar
12		year, whichever is greater, which is allowed to reimburse the
13		serviceman for expenses incurred in collecting the tax,
14		keeping records, preparing and filing returns, remitting the
15		tax and supplying data to the Department on request. Beginning
16		with returns due on or after January 1, 2025, the vendor's
17		discount allowed in this Section, the Retailers' Occupation
18		Tax Act, the Service Occupation Tax Act, and the Use Tax Act,
19		including any local tax administered by the Department and
20		reported on the same return, shall not exceed $1,000 per month
21		in the aggregate. When determining the discount allowed under
22		this Section, servicemen shall include the amount of tax that
23		would have been due at the 1% rate but for the 0% rate imposed
24		under this amendatory Act of the 102nd General Assembly. The

HB4951 Enrolled - 945 - LRB103 38094 HLH 68226 b
1		discount under this Section is not allowed for the 1.25%
2		portion of taxes paid on aviation fuel that is subject to the
3		revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
4		47133. The discount allowed under this Section is allowed only
5		for returns that are filed in the manner required by this Act.
6		The Department may disallow the discount for servicemen whose
7		certificate of registration is revoked at the time the return
8		is filed, but only if the Department's decision to revoke the
9		certificate of registration has become final. A serviceman
10		need not remit that part of any tax collected by him to the
11		extent that he is required to pay and does pay the tax imposed
12		by the Service Occupation Tax Act with respect to his sale of
13		service involving the incidental transfer by him of the same
14		property.
15		Except as provided hereinafter in this Section, on or
16		before the twentieth day of each calendar month, such
17		serviceman shall file a return for the preceding calendar
18		month in accordance with reasonable Rules and Regulations to
19		be promulgated by the Department. Such return shall be filed
20		on a form prescribed by the Department and shall contain such
21		information as the Department may reasonably require. The
22		return shall include the gross receipts which were received
23		during the preceding calendar month or quarter on the
24		following items upon which tax would have been due but for the
25		0% rate imposed under this amendatory Act of the 102nd General
26		Assembly: (i) food for human consumption that is to be

HB4951 Enrolled - 946 - LRB103 38094 HLH 68226 b
1		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, and food that has been prepared for
4		immediate consumption); and (ii) food prepared for immediate
5		consumption and transferred incident to a sale of service
6		subject to this Act or the Service Occupation Tax Act by an
7		entity licensed under the Hospital Licensing Act, the Nursing
8		Home Care Act, the Assisted Living and Shared Housing Act, the
9		ID/DD Community Care Act, the MC/DD Act, the Specialized
10		Mental Health Rehabilitation Act of 2013, or the Child Care
11		Act of 1969, or an entity that holds a permit issued pursuant
12		to the Life Care Facilities Act. The return shall also include
13		the amount of tax that would have been due on the items listed
14		in the previous sentence but for the 0% rate imposed under this
15		amendatory Act of the 102nd General Assembly.
16		On and after January 1, 2018, with respect to servicemen
17		whose annual gross receipts average $20,000 or more, all
18		returns required to be filed pursuant to this Act shall be
19		filed electronically. Servicemen who demonstrate that they do
20		not have access to the Internet or demonstrate hardship in
21		filing electronically may petition the Department to waive the
22		electronic filing requirement.
23		The Department may require returns to be filed on a
24		quarterly basis. If so required, a return for each calendar
25		quarter shall be filed on or before the twentieth day of the
26		calendar month following the end of such calendar quarter. The

HB4951 Enrolled - 947 - LRB103 38094 HLH 68226 b
1		taxpayer shall also file a return with the Department for each
2		of the first two months of each calendar quarter, on or before
3		the twentieth day of the following calendar month, stating:
4		1. The name of the seller;
5		2. The address of the principal place of business from
6		which he engages in business as a serviceman in this
7		State;
8		3. The total amount of taxable receipts received by
9		him during the preceding calendar month, including
10		receipts from charge and time sales, but less all
11		deductions allowed by law;
12		4. The amount of credit provided in Section 2d of this
13		Act;
14		5. The amount of tax due;
15		5-5. The signature of the taxpayer; and
16		6. Such other reasonable information as the Department
17		may require.
18		Each serviceman required or authorized to collect the tax
19		imposed by this Act on aviation fuel transferred as an
20		incident of a sale of service in this State during the
21		preceding calendar month shall, instead of reporting and
22		paying tax on aviation fuel as otherwise required by this
23		Section, report and pay such tax on a separate aviation fuel
24		tax return. The requirements related to the return shall be as
25		otherwise provided in this Section. Notwithstanding any other
26		provisions of this Act to the contrary, servicemen collecting

HB4951 Enrolled - 948 - LRB103 38094 HLH 68226 b
1		tax on aviation fuel shall file all aviation fuel tax returns
2		and shall make all aviation fuel tax payments by electronic
3		means in the manner and form required by the Department. For
4		purposes of this Section, "aviation fuel" means jet fuel and
5		aviation gasoline.
6		If a taxpayer fails to sign a return within 30 days after
7		the proper notice and demand for signature by the Department,
8		the return shall be considered valid and any amount shown to be
9		due on the return shall be deemed assessed.
10		Notwithstanding any other provision of this Act to the
11		contrary, servicemen 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

HB4951 Enrolled - 949 - LRB103 38094 HLH 68226 b
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" means 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

HB4951 Enrolled - 950 - LRB103 38094 HLH 68226 b
1		effectuate a program of electronic funds transfer and the
2		requirements of this Section.
3		If the serviceman is otherwise required to file a monthly
4		return and if the serviceman's average monthly tax liability
5		to the Department does not exceed $200, the Department may
6		authorize his returns to be filed on a quarter annual basis,
7		with the return for January, February and March of a given year
8		being due by April 20 of such year; with the return for April,
9		May and June of a given year being due by July 20 of such year;
10		with the return for July, August and September of a given year
11		being due by October 20 of such year, and with the return for
12		October, November and December of a given year being due by
13		January 20 of the following year.
14		If the serviceman is otherwise required to file a monthly
15		or quarterly return and if the serviceman's average monthly
16		tax liability to the Department does not exceed $50, the
17		Department may authorize his returns to be filed on an annual
18		basis, with the return for a given year being due by January 20
19		of the following year.
20		Such quarter annual and annual returns, as to form and
21		substance, shall be subject to the same requirements as
22		monthly returns.
23		Notwithstanding any other provision in this Act concerning
24		the time within which a serviceman may file his return, in the
25		case of any serviceman who ceases to engage in a kind of
26		business which makes him responsible for filing returns under

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

HB4951 Enrolled - 952 - LRB103 38094 HLH 68226 b
1		Department may prescribe and furnish a combination or joint
2		return which will enable servicemen, who are required to file
3		returns hereunder and also under the Service Occupation Tax
4		Act, to furnish all the return information required by both
5		Acts on the one form.
6		Where the serviceman has more than one business registered
7		with the Department under separate registration hereunder,
8		such serviceman shall not file each return that is due as a
9		single return covering all such registered businesses, but
10		shall file separate returns for each such registered business.
11		Beginning January 1, 1990, each month the Department shall
12		pay into the State and Local Tax Reform Fund, a special fund in
13		the State Treasury, the net revenue realized for the preceding
14		month from the 1% tax imposed under this Act.
15		Beginning January 1, 1990, each month the Department shall
16		pay into the State and Local Sales Tax Reform Fund 20% of the
17		net revenue realized for the preceding month from the 6.25%
18		general rate on transfers of tangible personal property, other
19		than (i) tangible personal property which is purchased outside
20		Illinois at retail from a retailer and which is titled or
21		registered by an agency of this State's government and (ii)
22		aviation fuel sold on or after December 1, 2019. This
23		exception for aviation fuel only applies for so long as the
24		revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
25		47133 are binding on the State.
26		For aviation fuel sold on or after December 1, 2019, each

HB4951 Enrolled - 953 - LRB103 38094 HLH 68226 b
1		month the Department shall pay into the State Aviation Program
2		Fund 20% of the net revenue realized for the preceding month
3		from the 6.25% general rate on the selling price of aviation
4		fuel, less an amount estimated by the Department to be
5		required for refunds of the 20% portion of the tax on aviation
6		fuel under this Act, which amount shall be deposited into the
7		Aviation Fuel Sales Tax Refund Fund. The Department shall only
8		pay moneys into the State Aviation Program Fund and the
9		Aviation Fuel Sales Tax Refund Fund under this Act for so long
10		as the revenue use requirements of 49 U.S.C. 47107(b) and 49
11		U.S.C. 47133 are binding on the State.
12		Beginning August 1, 2000, each month the Department shall
13		pay into the State and Local Sales Tax Reform Fund 100% of the
14		net revenue realized for the preceding month from the 1.25%
15		rate on the selling price of motor fuel and gasohol.
16		Beginning October 1, 2009, each month the Department shall
17		pay into the Capital Projects Fund an amount that is equal to
18		an amount estimated by the Department to represent 80% of the
19		net revenue realized for the preceding month from the sale of
20		candy, grooming and hygiene products, and soft drinks that had
21		been taxed at a rate of 1% prior to September 1, 2009 but that
22		are now taxed at 6.25%.
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
26		Occupation Tax Act, and the Retailers' Occupation Tax Act an

HB4951 Enrolled - 954 - LRB103 38094 HLH 68226 b
1		amount equal to the average monthly deficit in the Underground
2		Storage Tank Fund during the prior year, as certified annually
3		by the Illinois Environmental Protection Agency, but the total
4		payment into the Underground Storage Tank Fund under this Act,
5		the Use Tax Act, the Service Occupation Tax Act, and the
6		Retailers' Occupation Tax Act shall not exceed $18,000,000 in
7		any State fiscal year. As used in this paragraph, the "average
8		monthly deficit" shall be equal to the difference between the
9		average monthly claims for payment by the fund and the average
10		monthly revenues deposited into the fund, excluding payments
11		made pursuant to this paragraph.
12		Beginning July 1, 2015, of the remainder of the moneys
13		received by the Department under the Use Tax Act, this Act, the
14		Service Occupation Tax Act, and the Retailers' Occupation Tax
15		Act, each month the Department shall deposit $500,000 into the
16		State 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 Section 3
25		of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
26		Act, Section 9 of the Service Use Tax Act, and Section 9 of the

HB4951 Enrolled - 955 - LRB103 38094 HLH 68226 b
1		Service Occupation Tax Act, such Acts being hereinafter called
2		the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
3		may be, of moneys being hereinafter called the "Tax Act
4		Amount", and (2) the amount transferred to the Build Illinois
5		Fund from the State and Local Sales Tax Reform Fund shall be
6		less than the Annual Specified Amount (as defined in Section 3
7		of the Retailers' Occupation Tax Act), an amount equal to the
8		difference shall be immediately paid into the Build Illinois
9		Fund from other moneys received by the Department pursuant to
10		the Tax Acts; and further provided, that if on the last
11		business day of any month the sum of (1) the Tax Act Amount
12		required to be deposited into the Build Illinois Bond Account
13		in the Build Illinois Fund during such month and (2) the amount
14		transferred during such month to the Build Illinois Fund from
15		the State and Local Sales Tax Reform Fund shall have been less
16		than 1/12 of the Annual Specified Amount, an amount equal to
17		the difference shall be immediately paid into the Build
18		Illinois Fund from other moneys received by the Department
19		pursuant to the Tax Acts; and, further provided, that in no
20		event shall the payments required under the preceding proviso
21		result in aggregate payments into the Build Illinois Fund
22		pursuant to this clause (b) for any fiscal year in excess of
23		the greater of (i) the Tax Act Amount or (ii) the Annual
24		Specified Amount for such fiscal year; and, further provided,
25		that the amounts payable into the Build Illinois Fund under
26		this clause (b) shall be payable only until such time as the

HB4951 Enrolled - 956 - LRB103 38094 HLH 68226 b
1		aggregate amount on deposit under each trust indenture
2		securing Bonds issued and outstanding pursuant to the Build
3		Illinois Bond Act is sufficient, taking into account any
4		future investment income, to fully provide, in accordance with
5		such indenture, for the defeasance of or the payment of the
6		principal of, premium, if any, and interest on the Bonds
7		secured by such indenture and on any Bonds expected to be
8		issued thereafter and all fees and costs payable with respect
9		thereto, all as certified by the Director of the Bureau of the
10		Budget (now Governor's Office of Management and Budget). If on
11		the last business day of any month in which Bonds are
12		outstanding pursuant to the Build Illinois Bond Act, the
13		aggregate of the moneys deposited in the Build Illinois Bond
14		Account in the Build Illinois Fund in such month shall be less
15		than the amount required to be transferred in such month from
16		the Build Illinois Bond Account to the Build Illinois Bond
17		Retirement and Interest Fund pursuant to Section 13 of the
18		Build Illinois Bond Act, an amount equal to such deficiency
19		shall be immediately paid from other moneys received by the
20		Department pursuant to the Tax Acts to the Build Illinois
21		Fund; provided, however, that any amounts paid to the Build
22		Illinois Fund in any fiscal year pursuant to this sentence
23		shall be deemed to constitute payments pursuant to clause (b)
24		of the preceding sentence and shall reduce the amount
25		otherwise payable for such fiscal year pursuant to clause (b)
26		of the preceding sentence. The moneys received by the

HB4951 Enrolled - 957 - LRB103 38094 HLH 68226 b
1		Department pursuant to this Act and required to be deposited
2		into the Build Illinois Fund are subject to the pledge, claim
3		and charge set forth in Section 12 of the Build Illinois Bond
4		Act.
5		Subject to payment of amounts into the Build Illinois Fund
6		as provided in the preceding paragraph or in any amendment
7		thereto hereafter enacted, the following specified monthly
8		installment of the amount requested in the certificate of the
9		Chairman of the Metropolitan Pier and Exposition Authority
10		provided under Section 8.25f of the State Finance Act, but not
11		in excess of the sums designated as "Total Deposit", shall be
12		deposited in the aggregate from collections under Section 9 of
13		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
14		9 of the Service Occupation Tax Act, and Section 3 of the
15		Retailers' Occupation Tax Act into the McCormick Place
16		Expansion Project Fund in the specified fiscal years.
17 Fiscal Year Total Deposit 18 1993 $0 19 1994 53,000,000 20 1995 58,000,000 21 1996 61,000,000 22 1997 64,000,000 23 1998 68,000,000 24 1999 71,000,000 25 2000 75,000,000

HB4951 Enrolled - 958 - LRB103 38094 HLH 68226 b

1 2001 80,000,000 2 2002 93,000,000 3 2003 99,000,000 4 2004 103,000,000 5 2005 108,000,000 6 2006 113,000,000 7 2007 119,000,000 8 2008 126,000,000 9 2009 132,000,000 10 2010 139,000,000 11 2011 146,000,000 12 2012 153,000,000 13 2013 161,000,000 14 2014 170,000,000 15 2015 179,000,000 16 2016 189,000,000 17 2017 199,000,000 18 2018 210,000,000 19 2019 221,000,000 20 2020 233,000,000 21 2021 300,000,000 22 2022 300,000,000 23 2023 300,000,000 24 2024 300,000,000 25 2025 300,000,000 26 2026 300,000,000

HB4951 Enrolled - 959 - LRB103 38094 HLH 68226 b
1 2027 375,000,000 2 2028 375,000,000 3 2029 375,000,000 4 2030 375,000,000 5 2031 375,000,000 6 2032 375,000,000 7 2033 375,000,000 8 2034 375,000,000 9 2035 375,000,000 10 2036 450,000,000 11 and 12 each fiscal year 13 thereafter that bonds 14 are outstanding under 15 Section 13.2 of the 16 Metropolitan Pier and 17 Exposition Authority Act, 18 but not after fiscal year 2060.
19		Beginning July 20, 1993 and in each month of each fiscal
20		year thereafter, one-eighth of the amount requested in the
21		certificate of the Chairman of the Metropolitan Pier and
22		Exposition Authority for that fiscal year, less the amount
23		deposited into the McCormick Place Expansion Project Fund by
24		the State Treasurer in the respective month under subsection
25		(g) of Section 13 of the Metropolitan Pier and Exposition
26		Authority Act, plus cumulative deficiencies in the deposits

HB4951 Enrolled - 960 - LRB103 38094 HLH 68226 b
1		required under this Section for previous months and years,
2		shall be deposited into the McCormick Place Expansion Project
3		Fund, until the full amount requested for the fiscal year, but
4		not in excess of the amount specified above as "Total
5		Deposit", has been deposited.
6		Subject to payment of amounts into the Capital Projects
7		Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
8		and the McCormick Place Expansion Project Fund pursuant to the
9		preceding paragraphs or in any amendments thereto hereafter
10		enacted, for aviation fuel sold on or after December 1, 2019,
11		the Department shall each month deposit into the Aviation Fuel
12		Sales Tax Refund Fund an amount estimated by the Department to
13		be required for refunds of the 80% portion of the tax on
14		aviation fuel under this Act. The Department shall only
15		deposit moneys into the Aviation Fuel Sales Tax Refund Fund
16		under this paragraph for so long as the revenue use
17		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
18		binding on the State.
19		Subject to payment of amounts into 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, beginning July 1, 1993 and ending on September 30,
23		2013, the Department shall each month pay into the Illinois
24		Tax Increment Fund 0.27% of 80% of the net revenue realized for
25		the preceding month from the 6.25% general rate on the selling
26		price of tangible personal property.

HB4951 Enrolled - 961 - LRB103 38094 HLH 68226 b
1		Subject to payment of amounts into the Build Illinois
2		Fund, the McCormick Place Expansion Project Fund, the Illinois
3		Tax Increment Fund, pursuant to the preceding paragraphs or in
4		any amendments to this Section hereafter enacted, beginning on
5		the first day of the first calendar month to occur on or after
6		August 26, 2014 (the effective date of Public Act 98-1098),
7		each month, from the collections made under Section 9 of the
8		Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of
9		the Service Occupation Tax Act, and Section 3 of the
10		Retailers' Occupation Tax Act, the Department shall pay into
11		the Tax Compliance and Administration Fund, to be used,
12		subject to appropriation, to fund additional auditors and
13		compliance personnel at the Department of Revenue, an amount
14		equal to 1/12 of 5% of 80% of the cash receipts collected
15		during the preceding fiscal year by the Audit Bureau of the
16		Department under the Use Tax Act, the Service Use Tax Act, the
17		Service Occupation Tax Act, the Retailers' Occupation Tax Act,
18		and associated local occupation and use taxes administered by
19		the Department.
20		Subject to payments of amounts into the Build Illinois
21		Fund, the McCormick Place Expansion Project Fund, the Illinois
22		Tax Increment Fund, and the Tax Compliance and Administration
23		Fund as provided in this Section, beginning on July 1, 2018 the
24		Department shall pay each month into the Downstate Public
25		Transportation Fund the moneys required to be so paid under
26		Section 2-3 of the Downstate Public Transportation Act.

HB4951 Enrolled - 962 - LRB103 38094 HLH 68226 b
1		Subject to successful execution and delivery of a
2		public-private agreement between the public agency and private
3		entity and completion of the civic build, beginning on July 1,
4		2023, of the remainder of the moneys received by the
5		Department under the Use Tax Act, the Service Use Tax Act, the
6		Service Occupation Tax Act, and this Act, the Department shall
7		deposit the following specified deposits in the aggregate from
8		collections under the Use Tax Act, the Service Use Tax Act, the
9		Service Occupation Tax Act, and the Retailers' Occupation Tax
10		Act, as required under Section 8.25g of the State Finance Act
11		for distribution consistent with the Public-Private
12		Partnership for Civic and Transit Infrastructure Project Act.
13		The moneys received by the Department pursuant to this Act and
14		required to be deposited into the Civic and Transit
15		Infrastructure Fund are subject to the pledge, claim, and
16		charge set forth in Section 25-55 of the Public-Private
17		Partnership for Civic and Transit Infrastructure Project Act.
18		As used in this paragraph, "civic build", "private entity",
19		"public-private agreement", and "public agency" have the
20		meanings provided in Section 25-10 of the Public-Private
21		Partnership for Civic and Transit Infrastructure Project Act.
22		Fiscal Year............................Total Deposit
23		2024....................................$200,000,000
24		2025....................................$206,000,000
25		2026....................................$212,200,000
26		2027....................................$218,500,000

HB4951 Enrolled - 963 - LRB103 38094 HLH 68226 b
1		2028....................................$225,100,000
2		2029....................................$288,700,000
3		2030....................................$298,900,000
4		2031....................................$309,300,000
5		2032....................................$320,100,000
6		2033....................................$331,200,000
7		2034....................................$341,200,000
8		2035....................................$351,400,000
9		2036....................................$361,900,000
10		2037....................................$372,800,000
11		2038....................................$384,000,000
12		2039....................................$395,500,000
13		2040....................................$407,400,000
14		2041....................................$419,600,000
15		2042....................................$432,200,000
16		2043....................................$445,100,000
17		Beginning July 1, 2021 and until July 1, 2022, subject to
18		the payment of amounts into the State and Local Sales Tax
19		Reform Fund, the Build Illinois Fund, the McCormick Place
20		Expansion Project Fund, the Energy Infrastructure Fund, and
21		the Tax Compliance and Administration Fund as provided in this
22		Section, the Department shall pay each month into the Road
23		Fund the amount estimated to represent 16% of the net revenue
24		realized from the taxes imposed on motor fuel and gasohol.
25		Beginning July 1, 2022 and until July 1, 2023, subject to the
26		payment of amounts into the State and Local Sales Tax Reform

HB4951 Enrolled - 964 - LRB103 38094 HLH 68226 b
1		Fund, the Build Illinois Fund, the McCormick Place Expansion
2		Project Fund, the Illinois Tax Increment Fund, and the Tax
3		Compliance and Administration Fund as provided in this
4		Section, the Department shall pay each month into the Road
5		Fund the amount estimated to represent 32% of the net revenue
6		realized from the taxes imposed on motor fuel and gasohol.
7		Beginning July 1, 2023 and until July 1, 2024, subject to the
8		payment of amounts into the State and Local Sales Tax Reform
9		Fund, the Build Illinois Fund, the McCormick Place Expansion
10		Project Fund, the Illinois Tax Increment Fund, and the Tax
11		Compliance and Administration Fund as provided in this
12		Section, the Department shall pay each month into the Road
13		Fund the amount estimated to represent 48% of the net revenue
14		realized from the taxes imposed on motor fuel and gasohol.
15		Beginning July 1, 2024 and until July 1, 2025, subject to the
16		payment of amounts into the State and Local Sales Tax Reform
17		Fund, the Build Illinois Fund, the McCormick Place Expansion
18		Project Fund, the Illinois Tax Increment Fund, and the Tax
19		Compliance and Administration Fund as provided in this
20		Section, the Department shall pay each month into the Road
21		Fund the amount estimated to represent 64% of the net revenue
22		realized from the taxes imposed on motor fuel and gasohol.
23		Beginning on July 1, 2025, subject to the payment of amounts
24		into the State and Local Sales Tax Reform Fund, the Build
25		Illinois Fund, the McCormick Place Expansion Project Fund, the
26		Illinois Tax Increment Fund, and the Tax Compliance and

HB4951 Enrolled - 965 - LRB103 38094 HLH 68226 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 80% of the net revenue realized from
4		the taxes imposed on motor fuel and gasohol. As used in this
5		paragraph "motor fuel" has the meaning given to that term in
6		Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
7		meaning given to that term in Section 3-40 of the Use Tax Act.
8		Of the remainder of the moneys received by the Department
9		pursuant to this Act, 75% thereof shall be paid into the
10		General Revenue Fund of the State Treasury and 25% shall be
11		reserved in a special account and used only for the transfer to
12		the Common School Fund as part of the monthly transfer from the
13		General Revenue Fund in accordance with Section 8a of the
14		State Finance Act.
15		As soon as possible after the first day of each month, upon
16		certification of the Department of Revenue, the Comptroller
17		shall order transferred and the Treasurer shall transfer from
18		the General Revenue Fund to the Motor Fuel Tax Fund an amount
19		equal to 1.7% of 80% of the net revenue realized under this Act
20		for the second preceding month. Beginning April 1, 2000, this
21		transfer is no longer required and shall not be made.
22		Net revenue realized for a month shall be the revenue
23		collected by the State pursuant to this Act, less the amount
24		paid out during that month as refunds to taxpayers for
25		overpayment of liability.
26		(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)

HB4951 Enrolled - 966 - LRB103 38094 HLH 68226 b
1		Section 110-15. The Service Occupation Tax Act is amended
2		by changing Section 9 as follows:
3		(35 ILCS 115/9) (from Ch. 120, par. 439.109)
4		Sec. 9. Each serviceman required or authorized to collect
5		the tax herein imposed shall pay to the Department the amount
6		of such tax at the time when he is required to file his return
7		for the period during which such tax was collectible, less a
8		discount of 2.1% prior to January 1, 1990, and 1.75% on and
9		after January 1, 1990, or $5 per calendar year, whichever is
10		greater, which is allowed to reimburse the serviceman for
11		expenses incurred in collecting the tax, keeping records,
12		preparing and filing returns, remitting the tax, and supplying
13		data to the Department on request. Beginning with returns due
14		on or after January 1, 2025, the vendor's discount allowed in
15		this Section, the Retailers' Occupation Tax Act, the Use Tax
16		Act, and the Service Use Tax Act, including any local tax
17		administered by the Department and reported on the same
18		return, shall not exceed $1,000 per month in the aggregate.
19		When determining the discount allowed under this Section,
20		servicemen shall include the amount of tax that would have
21		been due at the 1% rate but for the 0% rate imposed under
22		Public Act 102-700 this amendatory Act of the 102nd General
23		Assembly. The discount under this Section is not allowed for
24		the 1.25% portion of taxes paid on aviation fuel that is

HB4951 Enrolled - 967 - LRB103 38094 HLH 68226 b
1		subject to the revenue use requirements of 49 U.S.C. 47107(b)
2		and 49 U.S.C. 47133. The discount allowed under this Section
3		is allowed only for returns that are filed in the manner
4		required by this Act. The Department may disallow the discount
5		for servicemen whose certificate of registration is revoked at
6		the time the return is filed, but only if the Department's
7		decision to revoke the certificate of registration has become
8		final.
9		Where such tangible personal property is sold under a
10		conditional sales contract, or under any other form of sale
11		wherein the payment of the principal sum, or a part thereof, is
12		extended beyond the close of the period for which the return is
13		filed, the serviceman, in collecting the tax may collect, for
14		each tax return period, only the tax applicable to the part of
15		the selling price actually received during such tax return
16		period.
17		Except as provided hereinafter in this Section, on or
18		before the twentieth day of each calendar month, such
19		serviceman shall file a return for the preceding calendar
20		month in accordance with reasonable rules and regulations to
21		be promulgated by the Department of Revenue. Such return shall
22		be filed on a form prescribed by the Department and shall
23		contain such information as the Department may reasonably
24		require. The return shall include the gross receipts which
25		were received during the preceding calendar month or quarter
26		on the following items upon which tax would have been due but

HB4951 Enrolled - 968 - LRB103 38094 HLH 68226 b
1		for the 0% rate imposed under Public Act 102-700 this
2		amendatory Act of the 102nd General Assembly: (i) food for
3		human consumption that is to be consumed off the premises
4		where it is sold (other than alcoholic beverages, food
5		consisting of or infused with adult use cannabis, soft drinks,
6		and food that has been prepared for immediate consumption);
7		and (ii) food prepared for immediate consumption and
8		transferred incident to a sale of service subject to this Act
9		or the Service Use Tax Act by an entity licensed under the
10		Hospital Licensing Act, the Nursing Home Care Act, the
11		Assisted Living and Shared Housing Act, the ID/DD Community
12		Care Act, the MC/DD Act, the Specialized Mental Health
13		Rehabilitation Act of 2013, or the Child Care Act of 1969, or
14		an entity that holds a permit issued pursuant to the Life Care
15		Facilities Act. The return shall also include the amount of
16		tax that would have been due on the items listed in the
17		previous sentence but for the 0% rate imposed under Public Act
18		102-700 this amendatory Act of the 102nd General Assembly.
19		On and after January 1, 2018, with respect to servicemen
20		whose annual gross receipts average $20,000 or more, all
21		returns required to be filed pursuant to this Act shall be
22		filed electronically. Servicemen who demonstrate that they do
23		not have access to the Internet or demonstrate hardship in
24		filing electronically may petition the Department to waive the
25		electronic filing requirement.
26		The Department may require returns to be filed on a

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1		quarterly basis. If so required, a return for each calendar
2		quarter shall be filed on or before the twentieth day of the
3		calendar month following the end of such calendar quarter. The
4		taxpayer shall also file a return with the Department for each
5		of the first two months of each calendar quarter, on or before
6		the twentieth day of the following calendar month, stating:
7		1. The name of the seller;
8		2. The address of the principal place of business from
9		which he engages in business as a serviceman in this
10		State;
11		3. The total amount of taxable receipts received by
12		him during the preceding calendar month, including
13		receipts from charge and time sales, but less all
14		deductions allowed by law;
15		4. The amount of credit provided in Section 2d of this
16		Act;
17		5. The amount of tax due;
18		5-5. The signature of the taxpayer; and
19		6. Such other reasonable information as the Department
20		may require.
21		Each serviceman required or authorized to collect the tax
22		herein imposed on aviation fuel acquired as an incident to the
23		purchase of a service in this State during the preceding
24		calendar month shall, instead of reporting and paying tax as
25		otherwise required by this Section, report and pay such tax on
26		a separate aviation fuel tax return. The requirements related

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1		to the return shall be as otherwise provided in this Section.
2		Notwithstanding any other provisions of this Act to the
3		contrary, servicemen transferring aviation fuel incident to
4		sales of service shall file all aviation fuel tax returns and
5		shall make all aviation fuel tax payments by electronic means
6		in the manner and form required by the Department. For
7		purposes of this Section, "aviation fuel" means jet fuel and
8		aviation gasoline.
9		If a taxpayer fails to sign a return within 30 days after
10		the proper notice and demand for signature by the Department,
11		the return shall be considered valid and any amount shown to be
12		due on the return shall be deemed assessed.
13		Notwithstanding any other provision of this Act to the
14		contrary, servicemen subject to tax on cannabis shall file all
15		cannabis tax returns and shall make all cannabis tax payments
16		by electronic means in the manner and form required by the
17		Department.
18		Prior to October 1, 2003, and on and after September 1,
19		2004 a serviceman may accept a Manufacturer's Purchase Credit
20		certification from a purchaser in satisfaction of Service Use
21		Tax as provided in Section 3-70 of the Service Use Tax Act if
22		the purchaser provides the appropriate documentation as
23		required by Section 3-70 of the Service Use Tax Act. A
24		Manufacturer's Purchase Credit certification, accepted prior
25		to October 1, 2003 or on or after September 1, 2004 by a
26		serviceman as provided in Section 3-70 of the Service Use Tax

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1		Act, may be used by that serviceman to satisfy Service
2		Occupation Tax liability in the amount claimed in the
3		certification, not to exceed 6.25% of the receipts subject to
4		tax from a qualifying purchase. A Manufacturer's Purchase
5		Credit reported on any original or amended return filed under
6		this Act after October 20, 2003 for reporting periods prior to
7		September 1, 2004 shall be disallowed. Manufacturer's Purchase
8		Credit reported on annual returns due on or after January 1,
9		2005 will be disallowed for periods prior to September 1,
10		2004. No Manufacturer's Purchase Credit may be used after
11		September 30, 2003 through August 31, 2004 to satisfy any tax
12		liability imposed under this Act, including any audit
13		liability.
14		Beginning on July 1, 2023 and through December 31, 2032, a
15		serviceman may accept a Sustainable Aviation Fuel Purchase
16		Credit certification from an air common carrier-purchaser in
17		satisfaction of Service Use Tax as provided in Section 3-72 of
18		the Service Use Tax Act if the purchaser provides the
19		appropriate documentation as required by Section 3-72 of the
20		Service Use Tax Act. A Sustainable Aviation Fuel Purchase
21		Credit certification accepted by a serviceman in accordance
22		with this paragraph may be used by that serviceman to satisfy
23		service occupation tax liability (but not in satisfaction of
24		penalty or interest) in the amount claimed in the
25		certification, not to exceed 6.25% of the receipts subject to
26		tax from a sale of aviation fuel. In addition, for a sale of

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1		aviation fuel to qualify to earn the Sustainable Aviation Fuel
2		Purchase Credit, servicemen must retain in their books and
3		records a certification from the producer of the aviation fuel
4		that the aviation fuel sold by the serviceman and for which a
5		sustainable aviation fuel purchase credit was earned meets the
6		definition of sustainable aviation fuel under Section 3-72 of
7		the Service Use Tax Act. The documentation must include detail
8		sufficient for the Department to determine the number of
9		gallons of sustainable aviation fuel sold.
10		If the serviceman's average monthly tax liability to the
11		Department does not exceed $200, the Department may authorize
12		his returns to be filed on a quarter annual basis, with the
13		return for January, February, and March of a given year being
14		due by April 20 of such year; with the return for April, May,
15		and June of a given year being due by July 20 of such year;
16		with the return for July, August, and September of a given year
17		being due by October 20 of such year, and with the return for
18		October, November, and December of a given year being due by
19		January 20 of the following year.
20		If the serviceman's average monthly tax liability to the
21		Department does not exceed $50, the Department may authorize
22		his returns to be filed on an annual basis, with the return for
23		a given year being due by January 20 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.

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1		Notwithstanding any other provision in this Act concerning
2		the time within which a serviceman may file his return, in the
3		case of any serviceman who ceases to engage in a kind of
4		business which makes him responsible for filing returns under
5		this Act, such serviceman shall file a final return under this
6		Act with the Department not more than one 1 month after
7		discontinuing such business.
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

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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		Where a serviceman 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 serviceman refunds the selling price thereof
26		to the purchaser, such serviceman shall also refund, to the

HB4951 Enrolled - 975 - LRB103 38094 HLH 68226 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 serviceman may deduct the amount of the
4		tax so refunded by him to the purchaser from any other Service
5		Occupation Tax, Service Use Tax, Retailers' Occupation Tax, or
6		Use Tax which such serviceman may be required to pay or remit
7		to the Department, as shown by such return, provided that the
8		amount of the tax to be deducted shall previously have been
9		remitted to the Department by such serviceman. If the
10		serviceman shall not previously have remitted the amount of
11		such tax to the Department, he shall be entitled to no
12		deduction hereunder upon refunding such tax to the purchaser.
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 Retailers' Occupation Tax
17		Act, the Use Tax Act, or the Service Use Tax Act, to furnish
18		all the return information required by all said Acts on the one
19		form.
20		Where the serviceman has more than one business registered
21		with the Department under separate registrations hereunder,
22		such serviceman shall file separate returns for each
23		registered business.
24		Beginning January 1, 1990, each month the Department shall
25		pay into the Local Government Tax Fund the revenue realized
26		for the preceding month from the 1% tax imposed under this Act.

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1		Beginning January 1, 1990, each month the Department shall
2		pay into the County and Mass Transit District Fund 4% of the
3		revenue realized for the preceding month from the 6.25%
4		general rate on sales of tangible personal property other than
5		aviation fuel sold on or after December 1, 2019. This
6		exception for aviation fuel only applies for so long as the
7		revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
8		47133 are binding on the State.
9		Beginning August 1, 2000, each month the Department shall
10		pay into the County and Mass Transit District Fund 20% of the
11		net revenue realized for the preceding month from the 1.25%
12		rate on the selling price of motor fuel and gasohol.
13		Beginning January 1, 1990, each month the Department shall
14		pay into the Local Government Tax Fund 16% of the revenue
15		realized for the preceding month from the 6.25% general rate
16		on transfers of tangible personal property other than aviation
17		fuel sold on or after December 1, 2019. This exception for
18		aviation fuel only applies for so long as the revenue use
19		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
20		binding on the State.
21		For aviation fuel sold on or after December 1, 2019, each
22		month the Department shall pay into the State Aviation Program
23		Fund 20% of the net revenue realized for the preceding month
24		from the 6.25% general rate on the selling price of aviation
25		fuel, less an amount estimated by the Department to be
26		required for refunds of the 20% portion of the tax on aviation

HB4951 Enrolled - 977 - LRB103 38094 HLH 68226 b
1		fuel under this Act, which amount shall be deposited into the
2		Aviation Fuel Sales Tax Refund Fund. The Department shall only
3		pay moneys into the State Aviation Program Fund and the
4		Aviation Fuel Sales Tax Refund Fund under this Act for so long
5		as the revenue use requirements of 49 U.S.C. 47107(b) and 49
6		U.S.C. 47133 are binding on the State.
7		Beginning August 1, 2000, each month the Department shall
8		pay into the Local Government Tax Fund 80% of the net revenue
9		realized for the preceding month from the 1.25% rate on the
10		selling price of motor fuel and gasohol.
11		Beginning October 1, 2009, each month the Department shall
12		pay into the Capital Projects Fund an amount that is equal to
13		an amount estimated by the Department to represent 80% of the
14		net revenue realized for the preceding month from the sale of
15		candy, grooming and hygiene products, and soft drinks that had
16		been taxed at a rate of 1% prior to September 1, 2009 but that
17		are now taxed at 6.25%.
18		Beginning July 1, 2013, each month the Department shall
19		pay into the Underground Storage Tank Fund from the proceeds
20		collected under this Act, the Use Tax Act, the Service Use Tax
21		Act, and the Retailers' Occupation Tax Act an amount equal to
22		the average monthly deficit in the Underground Storage Tank
23		Fund during the prior year, as certified annually by the
24		Illinois Environmental Protection Agency, but the total
25		payment into the Underground Storage Tank Fund under this Act,
26		the Use Tax Act, the Service Use Tax Act, and the Retailers'

HB4951 Enrolled - 978 - LRB103 38094 HLH 68226 b
1		Occupation Tax Act shall not exceed $18,000,000 in any State
2		fiscal year. As used in this paragraph, the "average monthly
3		deficit" shall be equal to the difference between the average
4		monthly claims for payment by the fund and the average monthly
5		revenues deposited into the fund, excluding payments made
6		pursuant to this paragraph.
7		Beginning July 1, 2015, of the remainder of the moneys
8		received by the Department under the Use Tax Act, the Service
9		Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
10		each month the Department shall deposit $500,000 into the
11		State Crime Laboratory Fund.
12		Of the remainder of the moneys received by the Department
13		pursuant to this Act, (a) 1.75% thereof shall be paid into the
14		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
15		and after July 1, 1989, 3.8% thereof shall be paid into the
16		Build Illinois Fund; provided, however, that if in any fiscal
17		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
18		may be, of the moneys received by the Department and required
19		to be paid into the Build Illinois Fund pursuant to Section 3
20		of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
21		Act, Section 9 of the Service Use Tax Act, and Section 9 of the
22		Service Occupation Tax Act, such Acts being hereinafter called
23		the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
24		may be, of moneys being hereinafter called the "Tax Act
25		Amount", and (2) the amount transferred to the Build Illinois
26		Fund from the State and Local Sales Tax Reform Fund shall be

HB4951 Enrolled - 979 - LRB103 38094 HLH 68226 b
1		less than the Annual Specified Amount (as defined in Section 3
2		of the Retailers' Occupation Tax Act), an amount equal to the
3		difference shall be immediately paid into the Build Illinois
4		Fund from other moneys received by the Department pursuant to
5		the Tax Acts; and further provided, that if on the last
6		business day of any month the sum of (1) the Tax Act Amount
7		required to be deposited into the Build Illinois Account in
8		the Build Illinois Fund during such month and (2) the amount
9		transferred during such month to the Build Illinois Fund from
10		the State and Local Sales Tax Reform Fund shall have been less
11		than 1/12 of the Annual Specified Amount, an amount equal to
12		the difference shall be immediately paid into the Build
13		Illinois Fund from other moneys received by the Department
14		pursuant to the Tax Acts; and, further provided, that in no
15		event shall the payments required under the preceding proviso
16		result in aggregate payments into the Build Illinois Fund
17		pursuant to this clause (b) for any fiscal year in excess of
18		the greater of (i) the Tax Act Amount or (ii) the Annual
19		Specified Amount for such fiscal year; and, further provided,
20		that the amounts payable into the Build Illinois Fund under
21		this clause (b) shall be payable only until such time as the
22		aggregate amount on deposit under each trust indenture
23		securing Bonds issued and outstanding pursuant to the Build
24		Illinois Bond Act is sufficient, taking into account any
25		future investment income, to fully provide, in accordance with
26		such indenture, for the defeasance of or the payment of the

HB4951 Enrolled - 980 - LRB103 38094 HLH 68226 b
1		principal of, premium, if any, and interest on the Bonds
2		secured by such indenture and on any Bonds expected to be
3		issued thereafter and all fees and costs payable with respect
4		thereto, all as certified by the Director of the Bureau of the
5		Budget (now Governor's Office of Management and Budget). If on
6		the last business day of any month in which Bonds are
7		outstanding pursuant to the Build Illinois Bond Act, the
8		aggregate of the moneys deposited in the Build Illinois Bond
9		Account in the Build Illinois Fund in such month shall be less
10		than the amount required to be transferred in such month from
11		the Build Illinois Bond Account to the Build Illinois Bond
12		Retirement and Interest Fund pursuant to Section 13 of the
13		Build Illinois Bond Act, an amount equal to such deficiency
14		shall be immediately paid from other moneys received by the
15		Department pursuant to the Tax Acts to the Build Illinois
16		Fund; provided, however, that any amounts paid to the Build
17		Illinois Fund in any fiscal year pursuant to this sentence
18		shall be deemed to constitute payments pursuant to clause (b)
19		of the preceding sentence and shall reduce the amount
20		otherwise payable for such fiscal year pursuant to clause (b)
21		of the preceding sentence. The moneys received by the
22		Department pursuant to this Act and required to be deposited
23		into the Build Illinois Fund are subject to the pledge, claim
24		and charge set forth in Section 12 of the Build Illinois Bond
25		Act.
26		Subject to payment of amounts into the Build Illinois Fund

HB4951 Enrolled - 981 - LRB103 38094 HLH 68226 b
1		as provided in the preceding paragraph or in any amendment
2		thereto hereafter enacted, the following specified monthly
3		installment of the amount requested in the certificate of the
4		Chairman of the Metropolitan Pier and Exposition Authority
5		provided under Section 8.25f of the State Finance Act, but not
6		in excess of the sums designated as "Total Deposit", shall be
7		deposited in the aggregate from collections under Section 9 of
8		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9		9 of the Service Occupation Tax Act, and Section 3 of the
10		Retailers' Occupation Tax Act into the McCormick Place
11		Expansion Project Fund in the specified fiscal years.
12 Fiscal Year Total Deposit 13 1993 $0 14 1994 53,000,000 15 1995 58,000,000 16 1996 61,000,000 17 1997 64,000,000 18 1998 68,000,000 19 1999 71,000,000 20 2000 75,000,000 21 2001 80,000,000 22 2002 93,000,000 23 2003 99,000,000 24 2004 103,000,000 25 2005 108,000,000

HB4951 Enrolled - 982 - LRB103 38094 HLH 68226 b

1 2006 113,000,000 2 2007 119,000,000 3 2008 126,000,000 4 2009 132,000,000 5 2010 139,000,000 6 2011 146,000,000 7 2012 153,000,000 8 2013 161,000,000 9 2014 170,000,000 10 2015 179,000,000 11 2016 189,000,000 12 2017 199,000,000 13 2018 210,000,000 14 2019 221,000,000 15 2020 233,000,000 16 2021 300,000,000 17 2022 300,000,000 18 2023 300,000,000 19 2024 300,000,000 20 2025 300,000,000 21 2026 300,000,000 22 2027 375,000,000 23 2028 375,000,000 24 2029 375,000,000 25 2030 375,000,000 26 2031 375,000,000

HB4951 Enrolled - 983 - LRB103 38094 HLH 68226 b
1 2032 375,000,000 2 2033 375,000,000 3 2034 375,000,000 4 2035 375,000,000 5 2036 450,000,000 6 and 7 each fiscal year 8 thereafter that bonds 9 are outstanding under 10 Section 13.2 of the 11 Metropolitan Pier and 12 Exposition Authority Act, 13 but not after fiscal year 2060.
14		Beginning July 20, 1993 and in each month of each fiscal
15		year thereafter, one-eighth of the amount requested in the
16		certificate of the Chairman of the Metropolitan Pier and
17		Exposition Authority for that fiscal year, less the amount
18		deposited into the McCormick Place Expansion Project Fund by
19		the State Treasurer in the respective month under subsection
20		(g) of Section 13 of the Metropolitan Pier and Exposition
21		Authority Act, plus cumulative deficiencies in the deposits
22		required under this Section for previous months and years,
23		shall be deposited into the McCormick Place Expansion Project
24		Fund, until the full amount requested for the fiscal year, but
25		not in excess of the amount specified above as "Total
26		Deposit", has been deposited.

HB4951 Enrolled - 984 - LRB103 38094 HLH 68226 b
1		Subject to payment of amounts into the Capital Projects
2		Fund, the Build Illinois Fund, and the McCormick Place
3		Expansion Project Fund pursuant to the preceding paragraphs or
4		in any amendments thereto hereafter enacted, for aviation fuel
5		sold on or after December 1, 2019, the Department shall each
6		month deposit into the Aviation Fuel Sales Tax Refund Fund an
7		amount estimated by the Department to be required for refunds
8		of the 80% portion of the tax on aviation fuel under this Act.
9		The Department shall only deposit moneys into the Aviation
10		Fuel Sales Tax Refund Fund under this paragraph for so long as
11		the revenue use requirements of 49 U.S.C. 47107(b) and 49
12		U.S.C. 47133 are binding on the State.
13		Subject to payment of amounts into the Build Illinois Fund
14		and the McCormick Place Expansion Project Fund pursuant to the
15		preceding paragraphs or in any amendments thereto hereafter
16		enacted, beginning July 1, 1993 and ending on September 30,
17		2013, the Department shall each month pay into the Illinois
18		Tax Increment Fund 0.27% of 80% of the net revenue realized for
19		the preceding month from the 6.25% general rate on the selling
20		price of tangible personal property.
21		Subject to payment of amounts into the Build Illinois
22		Fund, the McCormick Place Expansion Project Fund, and the
23		Illinois Tax Increment Fund pursuant to the preceding
24		paragraphs or in any amendments to this Section hereafter
25		enacted, beginning on the first day of the first calendar
26		month to occur on or after August 26, 2014 (the effective date

HB4951 Enrolled - 985 - LRB103 38094 HLH 68226 b
1		of Public Act 98-1098), each month, from the collections made
2		under Section 9 of the Use Tax Act, Section 9 of the Service
3		Use Tax Act, Section 9 of the Service Occupation Tax Act, and
4		Section 3 of the Retailers' Occupation Tax Act, the Department
5		shall pay into the Tax Compliance and Administration Fund, to
6		be used, subject to appropriation, to fund additional auditors
7		and compliance personnel at the Department of Revenue, an
8		amount equal to 1/12 of 5% of 80% of the cash receipts
9		collected during the preceding fiscal year by the Audit Bureau
10		of the Department under the Use Tax Act, the Service Use Tax
11		Act, the Service Occupation Tax Act, the Retailers' Occupation
12		Tax Act, and associated local occupation and use taxes
13		administered by the Department.
14		Subject to payments of amounts into the Build Illinois
15		Fund, the McCormick Place Expansion Project Fund, the Illinois
16		Tax Increment Fund, and the Tax Compliance and Administration
17		Fund as provided in this Section, beginning on July 1, 2018 the
18		Department shall pay each month into the Downstate Public
19		Transportation Fund the moneys required to be so paid under
20		Section 2-3 of the Downstate Public Transportation Act.
21		Subject to successful execution and delivery of a
22		public-private agreement between the public agency and private
23		entity and completion of the civic build, beginning on July 1,
24		2023, of the remainder of the moneys received by the
25		Department under the Use Tax Act, the Service Use Tax Act, the
26		Service Occupation Tax Act, and this Act, the Department shall

HB4951 Enrolled - 986 - LRB103 38094 HLH 68226 b
1		deposit the following specified deposits in the aggregate from
2		collections under the Use Tax Act, the Service Use Tax Act, the
3		Service Occupation Tax Act, and the Retailers' Occupation Tax
4		Act, as required under Section 8.25g of the State Finance Act
5		for distribution consistent with the Public-Private
6		Partnership for Civic and Transit Infrastructure Project Act.
7		The moneys received by the Department pursuant to this Act and
8		required to be deposited into the Civic and Transit
9		Infrastructure Fund are subject to the pledge, claim and
10		charge set forth in Section 25-55 of the Public-Private
11		Partnership for Civic and Transit Infrastructure Project Act.
12		As used in this paragraph, "civic build", "private entity",
13		"public-private agreement", and "public agency" have the
14		meanings provided in Section 25-10 of the Public-Private
15		Partnership for Civic and Transit Infrastructure Project Act.
16		Fiscal Year............................Total Deposit
17		2024....................................$200,000,000
18		2025....................................$206,000,000
19		2026....................................$212,200,000
20		2027....................................$218,500,000
21		2028....................................$225,100,000
22		2029....................................$288,700,000
23		2030....................................$298,900,000
24		2031....................................$309,300,000
25		2032....................................$320,100,000
26		2033....................................$331,200,000

HB4951 Enrolled - 987 - LRB103 38094 HLH 68226 b
1		2034....................................$341,200,000
2		2035....................................$351,400,000
3		2036....................................$361,900,000
4		2037....................................$372,800,000
5		2038....................................$384,000,000
6		2039....................................$395,500,000
7		2040....................................$407,400,000
8		2041....................................$419,600,000
9		2042....................................$432,200,000
10		2043....................................$445,100,000
11		Beginning July 1, 2021 and until July 1, 2022, subject to
12		the payment of amounts into the County and Mass Transit
13		District Fund, the Local Government Tax Fund, the Build
14		Illinois Fund, the McCormick Place Expansion Project Fund, the
15		Illinois Tax Increment Fund, and the Tax Compliance and
16		Administration Fund as provided in this Section, the
17		Department shall pay each month into the Road Fund the amount
18		estimated to represent 16% of the net revenue realized from
19		the taxes imposed on motor fuel and gasohol. Beginning July 1,
20		2022 and until July 1, 2023, subject to the payment of amounts
21		into the County and Mass Transit District Fund, the Local
22		Government Tax Fund, the Build Illinois Fund, the McCormick
23		Place Expansion Project Fund, the Illinois Tax Increment Fund,
24		and the Tax Compliance and Administration Fund as provided in
25		this Section, the Department shall pay each month into the
26		Road Fund the amount estimated to represent 32% of the net

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1		revenue realized from the taxes imposed on motor fuel and
2		gasohol. Beginning July 1, 2023 and until July 1, 2024,
3		subject to the payment of amounts into the County and Mass
4		Transit District Fund, the Local Government Tax Fund, the
5		Build Illinois Fund, the McCormick Place Expansion Project
6		Fund, the Illinois Tax Increment Fund, and the Tax Compliance
7		and Administration Fund as provided in this Section, the
8		Department shall pay each month into the Road Fund the amount
9		estimated to represent 48% of the net revenue realized from
10		the taxes imposed on motor fuel and gasohol. Beginning July 1,
11		2024 and until July 1, 2025, subject to the payment of amounts
12		into the County and Mass Transit District Fund, the Local
13		Government Tax 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, 2025, subject to the payment of
20		amounts into the County and Mass Transit District Fund, the
21		Local Government Tax Fund, the Build Illinois Fund, the
22		McCormick Place Expansion Project Fund, the Illinois Tax
23		Increment Fund, and the Tax Compliance and Administration Fund
24		as provided in this Section, the Department shall pay each
25		month into the Road Fund the amount estimated to represent 80%
26		of the net revenue realized from the taxes imposed on motor

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

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

HB4951 Enrolled - 991 - LRB103 38094 HLH 68226 b
1		inaccurate information shall be guilty of perjury and punished
2		accordingly. The annual return form prescribed by the
3		Department shall include a warning that the person signing the
4		return may be liable for perjury.
5		The foregoing portion of this Section concerning the
6		filing of an annual information return shall not apply to a
7		serviceman who is not required to file an income tax return
8		with the United States Government.
9		As soon as possible after the first day of each month, upon
10		certification of the Department of Revenue, the Comptroller
11		shall order transferred and the Treasurer shall transfer from
12		the General Revenue Fund to the Motor Fuel Tax Fund an amount
13		equal to 1.7% of 80% of the net revenue realized under this Act
14		for the second preceding month. Beginning April 1, 2000, this
15		transfer is no longer required and shall not be made.
16		Net revenue realized for a month shall be the revenue
17		collected by the State pursuant to this Act, less the amount
18		paid out during that month as refunds to taxpayers for
19		overpayment of liability.
20		For greater simplicity of administration, it shall be
21		permissible for manufacturers, importers and wholesalers whose
22		products are sold by numerous servicemen in Illinois, and who
23		wish to do so, to assume the responsibility for accounting and
24		paying to the Department all tax accruing under this Act with
25		respect to such sales, if the servicemen who are affected do
26		not make written objection to the Department to this

HB4951 Enrolled - 992 - LRB103 38094 HLH 68226 b
1		arrangement.
2		(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
3		103-363, eff. 7-28-23; revised 9-25-23.)
4		Section 110-20. The Retailers' Occupation Tax Act is
5		amended by changing Section 3 as follows:
6		(35 ILCS 120/3) (from Ch. 120, par. 442)
7		Sec. 3. Except as provided in this Section, on or before
8		the twentieth day of each calendar month, every person engaged
9		in the business of selling tangible personal property at
10		retail in this State during the preceding calendar month shall
11		file a return with the Department, stating:
12		1. The name of the seller;
13		2. His residence address and the address of his
14		principal place of business and the address of the
15		principal place of business (if that is a different
16		address) from which he engages in the business of selling
17		tangible personal property at retail in this State;
18		3. Total amount of receipts received by him during the
19		preceding calendar month or quarter, as the case may be,
20		from sales of tangible personal property, and from
21		services furnished, by him during such preceding calendar
22		month or quarter;
23		4. Total amount received by him during the preceding
24		calendar month or quarter on charge and time sales of

HB4951 Enrolled - 993 - LRB103 38094 HLH 68226 b
1		tangible personal property, and from services furnished,
2		by him prior to the month or quarter for which the return
3		is filed;
4		5. Deductions allowed by law;
5		6. Gross receipts which were received by him during
6		the preceding calendar month or quarter and upon the basis
7		of which the tax is imposed, including gross receipts on
8		food for human consumption that is to be consumed off the
9		premises where it is sold (other than alcoholic beverages,
10		food consisting of or infused with adult use cannabis,
11		soft drinks, and food that has been prepared for immediate
12		consumption) which were received during the preceding
13		calendar month or quarter and upon which tax would have
14		been due but for the 0% rate imposed under Public Act
15		102-700;
16		7. The amount of credit provided in Section 2d of this
17		Act;
18		8. The amount of tax due, including the amount of tax
19		that would have been due on food for human consumption
20		that is to be consumed off the premises where it is sold
21		(other than alcoholic beverages, food consisting of or
22		infused with adult use cannabis, soft drinks, and food
23		that has been prepared for immediate consumption) but for
24		the 0% rate imposed under Public Act 102-700;
25		9. The signature of the taxpayer; and
26		10. Such other reasonable information as the

HB4951 Enrolled - 994 - LRB103 38094 HLH 68226 b
1		Department may require.
2		On and after January 1, 2018, except for returns required
3		to be filed prior to January 1, 2023 for motor vehicles,
4		watercraft, aircraft, and trailers that are required to be
5		registered with an agency of this State, with respect to
6		retailers whose annual gross receipts average $20,000 or more,
7		all returns required to be filed pursuant to this Act shall be
8		filed electronically. On and after January 1, 2023, with
9		respect to retailers whose annual gross receipts average
10		$20,000 or more, all returns required to be filed pursuant to
11		this Act, including, but not limited to, returns for motor
12		vehicles, watercraft, aircraft, and trailers that are required
13		to be registered with an agency of this State, shall be filed
14		electronically. Retailers who demonstrate that they do not
15		have access to the Internet or demonstrate hardship in filing
16		electronically may petition the Department to waive the
17		electronic filing requirement.
18		If a taxpayer fails to sign a return within 30 days after
19		the proper notice and demand for signature by the Department,
20		the return shall be considered valid and any amount shown to be
21		due on the return shall be deemed assessed.
22		Each return shall be accompanied by the statement of
23		prepaid tax issued pursuant to Section 2e for which credit is
24		claimed.
25		Prior to October 1, 2003, and on and after September 1,
26		2004, a retailer may accept a Manufacturer's Purchase Credit

HB4951 Enrolled - 995 - LRB103 38094 HLH 68226 b
1		certification from a purchaser in satisfaction of Use Tax as
2		provided in Section 3-85 of the Use Tax Act if the purchaser
3		provides the appropriate documentation as required by Section
4		3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
5		certification, accepted by a retailer prior to October 1, 2003
6		and on and after September 1, 2004 as provided in Section 3-85
7		of the Use Tax Act, may be used by that retailer to satisfy
8		Retailers' Occupation Tax liability in the amount claimed in
9		the certification, not to exceed 6.25% of the receipts subject
10		to tax from a qualifying purchase. A Manufacturer's Purchase
11		Credit reported on any original or amended return filed under
12		this Act after October 20, 2003 for reporting periods prior to
13		September 1, 2004 shall be disallowed. Manufacturer's Purchase
14		Credit reported on annual returns due on or after January 1,
15		2005 will be disallowed for periods prior to September 1,
16		2004. No Manufacturer's Purchase Credit may be used after
17		September 30, 2003 through August 31, 2004 to satisfy any tax
18		liability imposed under this Act, including any audit
19		liability.
20		Beginning on July 1, 2023 and through December 31, 2032, a
21		retailer may accept a Sustainable Aviation Fuel Purchase
22		Credit certification from an air common carrier-purchaser in
23		satisfaction of Use Tax on aviation fuel as provided in
24		Section 3-87 of the Use Tax Act if the purchaser provides the
25		appropriate documentation as required by Section 3-87 of the
26		Use Tax Act. A Sustainable Aviation Fuel Purchase Credit

HB4951 Enrolled - 996 - LRB103 38094 HLH 68226 b
1		certification accepted by a retailer in accordance with this
2		paragraph may be used by that retailer to satisfy Retailers'
3		Occupation Tax liability (but not in satisfaction of penalty
4		or interest) in the amount claimed in the certification, not
5		to exceed 6.25% of the receipts subject to tax from a sale of
6		aviation fuel. In addition, for a sale of aviation fuel to
7		qualify to earn the Sustainable Aviation Fuel Purchase Credit,
8		retailers must retain in their books and records a
9		certification from the producer of the aviation fuel that the
10		aviation fuel sold by the retailer and for which a sustainable
11		aviation fuel purchase credit was earned meets the definition
12		of sustainable aviation fuel under Section 3-87 of the Use Tax
13		Act. The documentation must include detail sufficient for the
14		Department to determine the number of gallons of sustainable
15		aviation fuel sold.
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 2 two months of each calendar quarter, on or
22		before the twentieth day of the following calendar month,
23		stating:
24		1. The name of the seller;
25		2. The address of the principal place of business from
26		which he engages in the business of selling tangible

HB4951 Enrolled - 997 - LRB103 38094 HLH 68226 b
1		personal property at retail in this State;
2		3. The total amount of taxable receipts received by
3		him during the preceding calendar month from sales of
4		tangible personal property by him during such preceding
5		calendar month, including receipts from charge and time
6		sales, but less all deductions allowed by law;
7		4. The amount of credit provided in Section 2d of this
8		Act;
9		5. The amount of tax due; and
10		6. Such other reasonable information as the Department
11		may require.
12		Every person engaged in the business of selling aviation
13		fuel at retail in this State during the preceding calendar
14		month shall, instead of reporting and paying tax as otherwise
15		required by this Section, report and pay such tax on a separate
16		aviation fuel tax return. The requirements related to the
17		return shall be as otherwise provided in this Section.
18		Notwithstanding any other provisions of this Act to the
19		contrary, retailers selling aviation fuel shall file all
20		aviation fuel tax returns and shall make all aviation fuel tax
21		payments by electronic means in the manner and form required
22		by the Department. For purposes of this Section, "aviation
23		fuel" means jet fuel and aviation gasoline.
24		Beginning on October 1, 2003, any person who is not a
25		licensed distributor, importing distributor, or manufacturer,
26		as defined in the Liquor Control Act of 1934, but is engaged in

HB4951 Enrolled - 998 - LRB103 38094 HLH 68226 b
1		the business of selling, at retail, alcoholic liquor shall
2		file a statement with the Department of Revenue, in a format
3		and at a time prescribed by the Department, showing the total
4		amount paid for alcoholic liquor purchased during the
5		preceding month and such other information as is reasonably
6		required by the Department. The Department may adopt rules to
7		require that this statement be filed in an electronic or
8		telephonic format. Such rules may provide for exceptions from
9		the filing requirements of this paragraph. For the purposes of
10		this paragraph, the term "alcoholic liquor" shall have the
11		meaning prescribed in the Liquor Control Act of 1934.
12		Beginning on October 1, 2003, every distributor, importing
13		distributor, and manufacturer of alcoholic liquor as defined
14		in the Liquor Control Act of 1934, shall file a statement with
15		the Department of Revenue, no later than the 10th day of the
16		month for the preceding month during which transactions
17		occurred, by electronic means, showing the total amount of
18		gross receipts from the sale of alcoholic liquor sold or
19		distributed during the preceding month to purchasers;
20		identifying the purchaser to whom it was sold or distributed;
21		the purchaser's tax registration number; and such other
22		information reasonably required by the Department. A
23		distributor, importing distributor, or manufacturer of
24		alcoholic liquor must personally deliver, mail, or provide by
25		electronic means to each retailer listed on the monthly
26		statement a report containing a cumulative total of that

HB4951 Enrolled - 999 - LRB103 38094 HLH 68226 b
1		distributor's, importing distributor's, or manufacturer's
2		total sales of alcoholic liquor to that retailer no later than
3		the 10th day of the month for the preceding month during which
4		the transaction occurred. The distributor, importing
5		distributor, or manufacturer shall notify the retailer as to
6		the method by which the distributor, importing distributor, or
7		manufacturer will provide the sales information. If the
8		retailer is unable to receive the sales information by
9		electronic means, the distributor, importing distributor, or
10		manufacturer shall furnish the sales information by personal
11		delivery or by mail. For purposes of this paragraph, the term
12		"electronic means" includes, but is not limited to, the use of
13		a secure Internet website, e-mail, or facsimile.
14		If a total amount of less than $1 is payable, refundable or
15		creditable, such amount shall be disregarded if it is less
16		than 50 cents and shall be increased to $1 if it is 50 cents or
17		more.
18		Notwithstanding any other provision of this Act to the
19		contrary, retailers subject to tax on cannabis shall file all
20		cannabis tax returns and shall make all cannabis tax payments
21		by electronic means in the manner and form required by the
22		Department.
23		Beginning October 1, 1993, a taxpayer who has an average
24		monthly tax liability of $150,000 or more shall make all
25		payments required by rules of the Department by electronic
26		funds transfer. Beginning October 1, 1994, a taxpayer who has

HB4951 Enrolled - 1000 - LRB103 38094 HLH 68226 b
1		an average monthly tax liability of $100,000 or more shall
2		make all payments required by rules of the Department by
3		electronic funds transfer. Beginning October 1, 1995, a
4		taxpayer who has an average monthly tax liability of $50,000
5		or more shall make all payments required by rules of the
6		Department by electronic funds transfer. Beginning October 1,
7		2000, a taxpayer who has an annual tax liability of $200,000 or
8		more shall make all payments required by rules of the
9		Department by electronic funds transfer. The term "annual tax
10		liability" shall be the sum of the taxpayer's liabilities
11		under this Act, and under all other State and local occupation
12		and use tax laws administered by the Department, for the
13		immediately preceding calendar year. The term "average monthly
14		tax 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 divided by 12. Beginning
18		on October 1, 2002, a taxpayer who has a tax liability in the
19		amount set forth in subsection (b) of Section 2505-210 of the
20		Department of Revenue Law shall make all payments required by
21		rules of the Department by electronic funds transfer.
22		Before August 1 of each year beginning in 1993, the
23		Department shall notify all taxpayers required to make
24		payments by electronic funds transfer. All taxpayers required
25		to make payments by electronic funds transfer shall make those
26		payments for a minimum of one year beginning on October 1.

HB4951 Enrolled - 1001 - LRB103 38094 HLH 68226 b
1		Any taxpayer not required to make payments by electronic
2		funds transfer may make payments by electronic funds transfer
3		with the permission of the Department.
4		All taxpayers required to make payment by electronic funds
5		transfer and any taxpayers authorized to voluntarily make
6		payments by electronic funds transfer shall make those
7		payments in the manner authorized by the Department.
8		The Department shall adopt such rules as are necessary to
9		effectuate a program of electronic funds transfer and the
10		requirements of this Section.
11		Any amount which is required to be shown or reported on any
12		return or other document under this Act shall, if such amount
13		is not a whole-dollar amount, be increased to the nearest
14		whole-dollar amount in any case where the fractional part of a
15		dollar is 50 cents or more, and decreased to the nearest
16		whole-dollar amount where the fractional part of a dollar is
17		less than 50 cents.
18		If the retailer is otherwise required to file a monthly
19		return and if the retailer's average monthly tax liability to
20		the Department does not exceed $200, the Department may
21		authorize his returns to be filed on a quarter annual basis,
22		with the return for January, February, and March of a given
23		year being due by April 20 of such year; with the return for
24		April, May, and June of a given year being due by July 20 of
25		such year; with the return for July, August, and September of a
26		given year being due by October 20 of such year, and with the

HB4951 Enrolled - 1002 - LRB103 38094 HLH 68226 b
1		return for October, November, and December of a given year
2		being due by January 20 of the following year.
3		If the retailer is otherwise required to file a monthly or
4		quarterly return and if the retailer's average monthly tax
5		liability with the Department does not exceed $50, the
6		Department may authorize his returns to be filed on an annual
7		basis, with the return for a given year being due by January 20
8		of the following year.
9		Such quarter annual and annual returns, as to form and
10		substance, shall be subject to the same requirements as
11		monthly returns.
12		Notwithstanding any other provision in this Act concerning
13		the time within which a retailer may file his return, in the
14		case of any retailer who ceases to engage in a kind of business
15		which makes him responsible for filing returns under this Act,
16		such retailer shall file a final return under this Act with the
17		Department not more than one month after discontinuing such
18		business.
19		Where the same person has more than one business
20		registered with the Department under separate registrations
21		under this Act, such person may not file each return that is
22		due as a single return covering all such registered
23		businesses, but shall file separate returns for each such
24		registered business.
25		In addition, with respect to motor vehicles, watercraft,
26		aircraft, and trailers that are required to be registered with

HB4951 Enrolled - 1003 - LRB103 38094 HLH 68226 b
1		an agency of this State, except as otherwise provided in this
2		Section, every retailer selling this kind of tangible personal
3		property shall file, with the Department, upon a form to be
4		prescribed and supplied by the Department, a separate return
5		for each such item of tangible personal property which the
6		retailer sells, except that if, in the same transaction, (i) a
7		retailer of aircraft, watercraft, motor vehicles, or trailers
8		transfers more than one aircraft, watercraft, motor vehicle,
9		or trailer to another aircraft, watercraft, motor vehicle
10		retailer, or trailer retailer for the purpose of resale or
11		(ii) a retailer of aircraft, watercraft, motor vehicles, or
12		trailers transfers more than one aircraft, watercraft, motor
13		vehicle, or trailer to a purchaser for use as a qualifying
14		rolling stock as provided in Section 2-5 of this Act, then that
15		seller may report the transfer of all aircraft, watercraft,
16		motor vehicles, or trailers involved in that transaction to
17		the Department on the same uniform invoice-transaction
18		reporting return form. For purposes of this Section,
19		"watercraft" means a Class 2, Class 3, or Class 4 watercraft as
20		defined in Section 3-2 of the Boat Registration and Safety
21		Act, a personal watercraft, or any boat equipped with an
22		inboard motor.
23		In addition, with respect to motor vehicles, watercraft,
24		aircraft, and trailers that are required to be registered with
25		an agency of this State, every person who is engaged in the
26		business of leasing or renting such items and who, in

HB4951 Enrolled - 1004 - LRB103 38094 HLH 68226 b
1		connection with such business, sells any such item to a
2		retailer for the purpose of resale is, notwithstanding any
3		other provision of this Section to the contrary, authorized to
4		meet the return-filing requirement of this Act by reporting
5		the transfer of all the aircraft, watercraft, motor vehicles,
6		or trailers transferred for resale during a month to the
7		Department on the same uniform invoice-transaction reporting
8		return form on or before the 20th of the month following the
9		month in which the transfer takes place. Notwithstanding any
10		other provision of this Act to the contrary, all returns filed
11		under this paragraph must be filed by electronic means in the
12		manner and form as required by the Department.
13		Any retailer who sells only motor vehicles, watercraft,
14		aircraft, or trailers that are required to be registered with
15		an agency of this State, so that all retailers' occupation tax
16		liability is required to be reported, and is reported, on such
17		transaction reporting returns and who is not otherwise
18		required to file monthly or quarterly returns, need not file
19		monthly or quarterly returns. However, those retailers shall
20		be required to file returns on an annual basis.
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

HB4951 Enrolled - 1005 - LRB103 38094 HLH 68226 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 1 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		or 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 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

HB4951 Enrolled - 1006 - LRB103 38094 HLH 68226 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 day 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
12		Illinois use tax may be transmitted to the Department by way of
13		the State agency with which, or State officer with whom the
14		tangible personal property must be titled or registered (if
15		titling or registration is required) if the Department and
16		such agency or State officer determine that this procedure
17		will expedite the processing of applications for title or
18		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 use tax
24		receipt (or a certificate of exemption if the Department is
25		satisfied that the particular sale is tax exempt) which such
26		purchaser may submit to the agency with which, or State

HB4951 Enrolled - 1007 - LRB103 38094 HLH 68226 b
1		officer with whom, he must title or register the tangible
2		personal property that is involved (if titling or registration
3		is required) in support of such purchaser's application for an
4		Illinois certificate or other evidence of title or
5		registration to such 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 the tax or proof of exemption made to the Department before
17		the retailer is willing to take these actions and such user has
18		not paid the tax to the retailer, such user may certify to the
19		fact 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

HB4951 Enrolled - 1008 - LRB103 38094 HLH 68226 b
1		with the Department, but without the vendor's 2.1% or 1.75%
2		discount provided for in this Section being allowed. When the
3		user pays the tax directly to the Department, he shall pay the
4		tax in the same amount and in the same form in which it would
5		be remitted if the tax had been remitted to the Department by
6		the retailer.
7		Refunds made by the seller during the preceding return
8		period to purchasers, on account of tangible personal property
9		returned to the seller, shall be allowed as a deduction under
10		subdivision 5 of his monthly or quarterly return, as the case
11		may be, in case the seller had theretofore included the
12		receipts from the sale of such tangible personal property in a
13		return filed by him and had paid the tax imposed by this Act
14		with respect to such receipts.
15		Where the seller is a corporation, the return filed on
16		behalf of such corporation shall be signed by the president,
17		vice-president, secretary, or treasurer or by the properly
18		accredited agent of such corporation.
19		Where the seller is a limited liability company, the
20		return filed on behalf of the limited liability company shall
21		be signed by a manager, member, or properly accredited agent
22		of the limited liability company.
23		Except as provided in this Section, the retailer filing
24		the return under this Section shall, at the time of filing such
25		return, pay to the Department the amount of tax imposed by this
26		Act less a discount of 2.1% prior to January 1, 1990 and 1.75%

HB4951 Enrolled - 1009 - LRB103 38094 HLH 68226 b
1		on and after January 1, 1990, or $5 per calendar year,
2		whichever is greater, which is allowed to reimburse the
3		retailer for the expenses incurred in keeping records,
4		preparing and filing returns, remitting the tax and supplying
5		data to the Department on request. On and after January 1,
6		2021, a certified service provider, as defined in the Leveling
7		the Playing Field for Illinois Retail Act, filing the return
8		under this Section on behalf of a remote retailer shall, at the
9		time of such return, pay to the Department the amount of tax
10		imposed by this Act less a discount of 1.75%. A remote retailer
11		using a certified service provider to file a return on its
12		behalf, as provided in the Leveling the Playing Field for
13		Illinois Retail Act, is not eligible for the discount.
14		Beginning with returns due on or after January 1, 2025, the
15		vendor's discount allowed in this Section, the Service
16		Occupation Tax Act, the Use Tax Act, and the Service Use Tax
17		Act, including any local tax administered by the Department
18		and reported on the same return, shall not exceed $1,000 per
19		month in the aggregate for returns other than transaction
20		returns filed during the month. When determining the discount
21		allowed under this Section, retailers shall include the amount
22		of tax that would have been due at the 1% rate but for the 0%
23		rate imposed under Public Act 102-700. When determining the
24		discount allowed under this Section, retailers shall include
25		the amount of tax that would have been due at the 6.25% rate
26		but for the 1.25% rate imposed on sales tax holiday items under

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1		Public Act 102-700. The discount under this Section is not
2		allowed for the 1.25% portion of taxes paid on aviation fuel
3		that is subject to the revenue use requirements of 49 U.S.C.
4		47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to
5		Section 2d of this Act shall be included in the amount on which
6		such 2.1% or 1.75% discount is computed. In the case of
7		retailers who report and pay the tax on a transaction by
8		transaction basis, as provided in this Section, such discount
9		shall be taken with each such tax remittance instead of when
10		such retailer files his periodic return, but, beginning with
11		returns due on or after January 1, 2025, the vendor's discount
12		allowed under this Section and the Use Tax Act, including any
13		local tax administered by the Department and reported on the
14		same transaction return, shall not exceed $1,000 per month for
15		all transaction returns filed during the month. The discount
16		allowed under this Section is allowed only for returns that
17		are filed in the manner required by this Act. The Department
18		may disallow the discount for retailers whose certificate of
19		registration is revoked at the time the return is filed, but
20		only if the Department's decision to revoke the certificate of
21		registration has become final.
22		Before October 1, 2000, if the taxpayer's average monthly
23		tax liability to the Department under this Act, the Use Tax
24		Act, the Service Occupation Tax Act, and the Service Use Tax
25		Act, excluding any liability for prepaid sales tax to be
26		remitted in accordance with Section 2d of this Act, was

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

HB4951 Enrolled - 1012 - LRB103 38094 HLH 68226 b
1		prior to January 1, 1987, each payment shall be in an amount
2		equal to 22.5% of the taxpayer's actual liability for the
3		month or 27.5% of the taxpayer's liability for the same
4		calendar month of the preceding year. If the month during
5		which such tax liability is incurred begins on or after
6		January 1, 1987 and prior to January 1, 1988, each payment
7		shall be in an amount equal to 22.5% of the taxpayer's actual
8		liability for the month or 26.25% of the taxpayer's liability
9		for the same calendar month of the preceding year. If the month
10		during which such tax liability is incurred begins on or after
11		January 1, 1988, and prior to January 1, 1989, or begins on or
12		after January 1, 1996, each payment shall be in an amount equal
13		to 22.5% of the taxpayer's actual liability for the month or
14		25% of the taxpayer's liability for the same calendar month of
15		the preceding year. If the month during which such tax
16		liability is incurred begins on or after January 1, 1989, and
17		prior to January 1, 1996, each payment shall be in an amount
18		equal to 22.5% of the taxpayer's actual liability for the
19		month or 25% of the taxpayer's liability for the same calendar
20		month of the preceding year or 100% of the taxpayer's actual
21		liability for the quarter monthly reporting period. The amount
22		of such quarter monthly payments shall be credited against the
23		final tax liability of the taxpayer's return for that month.
24		Before October 1, 2000, once applicable, the requirement of
25		the making of quarter monthly payments to the Department by
26		taxpayers having an average monthly tax liability of $10,000

HB4951 Enrolled - 1013 - LRB103 38094 HLH 68226 b
1		or more as determined in the manner provided above shall
2		continue until such taxpayer's average monthly liability to
3		the Department during the preceding 4 complete calendar
4		quarters (excluding the month of highest liability and the
5		month of lowest liability) is less than $9,000, or until such
6		taxpayer's average monthly liability to the Department as
7		computed for each calendar quarter of the 4 preceding complete
8		calendar quarter period is less than $10,000. However, if a
9		taxpayer can show the Department that a substantial change in
10		the taxpayer's business has occurred which causes the taxpayer
11		to anticipate that his average monthly tax liability for the
12		reasonably foreseeable future will fall below the $10,000
13		threshold stated above, then such taxpayer may petition the
14		Department for a change in such taxpayer's reporting status.
15		On and after October 1, 2000, once applicable, the requirement
16		of the making of quarter monthly payments to the Department by
17		taxpayers having an average monthly tax liability of $20,000
18		or more as determined in the manner provided above shall
19		continue until such taxpayer's average monthly liability to
20		the Department during the preceding 4 complete calendar
21		quarters (excluding the month of highest liability and the
22		month of lowest liability) is less than $19,000 or until such
23		taxpayer's average monthly liability to the Department as
24		computed for each calendar quarter of the 4 preceding complete
25		calendar quarter period is less than $20,000. However, if a
26		taxpayer can show the Department that a substantial change in

HB4951 Enrolled - 1014 - LRB103 38094 HLH 68226 b
1		the taxpayer's business has occurred which causes the taxpayer
2		to anticipate that his average monthly tax liability for the
3		reasonably foreseeable future will fall below the $20,000
4		threshold stated above, then such taxpayer may petition the
5		Department for a change in such taxpayer's reporting status.
6		The Department shall change such taxpayer's reporting status
7		unless it finds that such change is seasonal in nature and not
8		likely to be long term. Quarter monthly payment status shall
9		be determined under this paragraph as if the rate reduction to
10		0% in Public Act 102-700 on food for human consumption that is
11		to be consumed off the premises where it is sold (other than
12		alcoholic beverages, food consisting of or infused with adult
13		use cannabis, soft drinks, and food that has been prepared for
14		immediate consumption) had not occurred. For quarter monthly
15		payments due under this paragraph on or after July 1, 2023 and
16		through June 30, 2024, "25% of the taxpayer's liability for
17		the same calendar month of the preceding year" shall be
18		determined as if the rate reduction to 0% in Public Act 102-700
19		had not occurred. Quarter monthly payment status shall be
20		determined under this paragraph as if the rate reduction to
21		1.25% in Public Act 102-700 on sales tax holiday items had not
22		occurred. For quarter monthly payments due on or after July 1,
23		2023 and through June 30, 2024, "25% of the taxpayer's
24		liability for the same calendar month of the preceding year"
25		shall be determined as if the rate reduction to 1.25% in Public
26		Act 102-700 on sales tax holiday items had not occurred. If any

HB4951 Enrolled - 1015 - LRB103 38094 HLH 68226 b
1		such quarter monthly payment is not paid at the time or in the
2		amount required by this Section, then the taxpayer shall be
3		liable for penalties and interest on the difference between
4		the minimum amount due as a payment and the amount of such
5		quarter monthly payment actually and timely paid, except
6		insofar as the taxpayer has previously made payments for that
7		month to the Department in excess of the minimum payments
8		previously due as provided in this Section. The Department
9		shall make reasonable rules and regulations to govern the
10		quarter monthly payment amount and quarter monthly payment
11		dates for taxpayers who file on other than a calendar monthly
12		basis.
13		The provisions of this paragraph apply before October 1,
14		2001. Without regard to whether a taxpayer is required to make
15		quarter monthly payments as specified above, any taxpayer who
16		is required by Section 2d of this Act to collect and remit
17		prepaid taxes and has collected prepaid taxes which average in
18		excess of $25,000 per month during the preceding 2 complete
19		calendar quarters, shall file a return with the Department as
20		required by Section 2f and shall make payments to the
21		Department on or before the 7th, 15th, 22nd and last day of the
22		month during which such liability is incurred. If the month
23		during which such tax liability is incurred began prior to
24		September 1, 1985 (the effective date of Public Act 84-221),
25		each payment shall be in an amount not less than 22.5% of the
26		taxpayer's actual liability under Section 2d. If the month

HB4951 Enrolled - 1016 - LRB103 38094 HLH 68226 b
1		during which such tax liability is incurred begins on or after
2		January 1, 1986, each payment shall be in an amount equal to
3		22.5% of the taxpayer's actual liability for the month or
4		27.5% of the taxpayer's liability for the same calendar month
5		of the preceding calendar year. If the month during which such
6		tax liability is incurred begins on or after January 1, 1987,
7		each payment shall be in an amount equal to 22.5% of the
8		taxpayer's actual liability for the month or 26.25% of the
9		taxpayer's liability for the same calendar month of the
10		preceding year. The amount of such quarter monthly payments
11		shall be credited against the final tax liability of the
12		taxpayer's return for that month filed under this Section or
13		Section 2f, as the case may be. Once applicable, the
14		requirement of the making of quarter monthly payments to the
15		Department pursuant to this paragraph shall continue until
16		such taxpayer's average monthly prepaid tax collections during
17		the preceding 2 complete calendar quarters is $25,000 or less.
18		If any such quarter monthly payment is not paid at the time or
19		in the amount required, the taxpayer shall be liable for
20		penalties and interest on such difference, except insofar as
21		the taxpayer has previously made payments for that month in
22		excess of the minimum payments previously due.
23		The provisions of this paragraph apply on and after
24		October 1, 2001. Without regard to whether a taxpayer is
25		required to make quarter monthly payments as specified above,
26		any taxpayer who is required by Section 2d of this Act to

HB4951 Enrolled - 1017 - LRB103 38094 HLH 68226 b
1		collect and remit prepaid taxes and has collected prepaid
2		taxes that average in excess of $20,000 per month during the
3		preceding 4 complete calendar quarters shall file a return
4		with the Department as required by Section 2f and shall make
5		payments to the Department on or before the 7th, 15th, 22nd,
6		and last day of the month during which the liability is
7		incurred. Each payment shall be in an amount equal to 22.5% of
8		the taxpayer's actual liability for the month or 25% of the
9		taxpayer's liability for the same calendar month of the
10		preceding year. The amount of the quarter monthly payments
11		shall be credited against the final tax liability of the
12		taxpayer's return for that month filed under this Section or
13		Section 2f, as the case may be. Once applicable, the
14		requirement of the making of quarter monthly payments to the
15		Department pursuant to this paragraph shall continue until the
16		taxpayer's average monthly prepaid tax collections during the
17		preceding 4 complete calendar quarters (excluding the month of
18		highest liability and the month of lowest liability) is less
19		than $19,000 or until such taxpayer's average monthly
20		liability to the Department as computed for each calendar
21		quarter of the 4 preceding complete calendar quarters is less
22		than $20,000. If any such quarter monthly payment is not paid
23		at the time or in the amount required, the taxpayer shall be
24		liable for penalties and interest on such difference, except
25		insofar as the taxpayer has previously made payments for that
26		month in excess of the minimum payments previously due.

HB4951 Enrolled - 1018 - LRB103 38094 HLH 68226 b
1		If any payment provided for in this Section exceeds the
2		taxpayer's liabilities under this Act, the Use Tax Act, the
3		Service Occupation Tax Act, and the Service Use Tax Act, as
4		shown on an original monthly return, the Department shall, if
5		requested by the taxpayer, issue to the taxpayer a credit
6		memorandum no later than 30 days after the date of payment. The
7		credit evidenced by such credit memorandum may be assigned by
8		the taxpayer to a similar taxpayer under this Act, the Use Tax
9		Act, the Service Occupation Tax Act, or the Service Use Tax
10		Act, in accordance with reasonable rules and regulations to be
11		prescribed by the Department. If no such request is made, the
12		taxpayer may credit such excess payment against tax liability
13		subsequently to be remitted to the Department under this Act,
14		the Use Tax Act, the Service Occupation Tax Act, or the Service
15		Use Tax Act, in accordance with reasonable rules and
16		regulations prescribed by the Department. If the Department
17		subsequently determined that all or any part of the credit
18		taken was not actually due to the taxpayer, the taxpayer's
19		2.1% and 1.75% vendor's discount shall be reduced, if
20		necessary, to reflect by 2.1% or 1.75% of the difference
21		between the credit taken and that actually due, and that
22		taxpayer shall be liable for penalties and interest on such
23		difference.
24		If a retailer of motor fuel is entitled to a credit under
25		Section 2d of this Act which exceeds the taxpayer's liability
26		to the Department under this Act for the month for which the

HB4951 Enrolled - 1019 - LRB103 38094 HLH 68226 b
1		taxpayer is filing a return, the Department shall issue the
2		taxpayer a credit memorandum for the excess.
3		Beginning January 1, 1990, each month the Department shall
4		pay into the Local Government Tax Fund, a special fund in the
5		State treasury which is hereby created, the net revenue
6		realized for the preceding month from the 1% tax imposed under
7		this Act.
8		Beginning January 1, 1990, each month the Department shall
9		pay into the County and Mass Transit District Fund, a special
10		fund in the State treasury which is hereby created, 4% of the
11		net revenue realized for the preceding month from the 6.25%
12		general rate other than aviation fuel sold on or after
13		December 1, 2019. This exception for aviation fuel only
14		applies for so long as the revenue use requirements of 49
15		U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
16		Beginning August 1, 2000, each month the Department shall
17		pay into the County and Mass Transit District Fund 20% of the
18		net revenue realized for the preceding month from the 1.25%
19		rate on the selling price of motor fuel and gasohol. If, in any
20		month, the tax on sales tax holiday items, as defined in
21		Section 2-8, is imposed at the rate of 1.25%, then the
22		Department shall pay 20% of the net revenue realized for that
23		month from the 1.25% rate on the selling price of sales tax
24		holiday items into the County and Mass Transit District Fund.
25		Beginning January 1, 1990, each month the Department shall
26		pay into the Local Government Tax Fund 16% of the net revenue

HB4951 Enrolled - 1020 - LRB103 38094 HLH 68226 b
1		realized for the preceding month from the 6.25% general rate
2		on the selling price of tangible personal property other than
3		aviation fuel sold on or after December 1, 2019. This
4		exception for aviation fuel only applies for so long as the
5		revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
6		47133 are 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. If, in any month, the
23		tax on sales tax holiday items, as defined in Section 2-8, is
24		imposed at the rate of 1.25%, then the Department shall pay 80%
25		of the net revenue realized for that month from the 1.25% rate
26		on the selling price of sales tax holiday items into the Local

HB4951 Enrolled - 1021 - LRB103 38094 HLH 68226 b
1		Government Tax Fund.
2		Beginning October 1, 2009, each month the Department shall
3		pay into the Capital Projects Fund an amount that is equal to
4		an amount estimated by the Department to represent 80% of the
5		net revenue realized for the preceding month from the sale of
6		candy, grooming and hygiene products, and soft drinks that had
7		been taxed at a rate of 1% prior to September 1, 2009 but that
8		are now taxed at 6.25%.
9		Beginning July 1, 2011, each month the Department shall
10		pay into the Clean Air Act Permit Fund 80% of the net revenue
11		realized for the preceding month from the 6.25% general rate
12		on the selling price of sorbents used in Illinois in the
13		process of sorbent injection as used to comply with the
14		Environmental Protection Act or the federal Clean Air Act, but
15		the total payment into the Clean Air Act Permit Fund under this
16		Act and the Use Tax Act shall not exceed $2,000,000 in any
17		fiscal year.
18		Beginning July 1, 2013, each month the Department shall
19		pay into the Underground Storage Tank Fund from the proceeds
20		collected under this Act, the Use Tax Act, the Service Use Tax
21		Act, and the Service Occupation Tax Act an amount equal to the
22		average monthly deficit in the Underground Storage Tank Fund
23		during the prior year, as certified annually by the Illinois
24		Environmental Protection Agency, but the total payment into
25		the Underground Storage Tank Fund under this Act, the Use Tax
26		Act, the Service Use Tax Act, and the Service Occupation Tax

HB4951 Enrolled - 1022 - LRB103 38094 HLH 68226 b
1		Act shall not exceed $18,000,000 in any State fiscal year. As
2		used in this paragraph, the "average monthly deficit" shall be
3		equal to the difference between the average monthly claims for
4		payment by the fund and the average monthly revenues deposited
5		into the fund, excluding payments made pursuant to this
6		paragraph.
7		Beginning July 1, 2015, of the remainder of the moneys
8		received by the Department under the Use Tax Act, the Service
9		Use Tax Act, the Service Occupation Tax Act, and this Act, each
10		month the Department shall deposit $500,000 into the State
11		Crime Laboratory Fund.
12		Of the remainder of the moneys received by the Department
13		pursuant to this Act, (a) 1.75% thereof shall be paid into the
14		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
15		and after July 1, 1989, 3.8% thereof shall be paid into the
16		Build Illinois Fund; provided, however, that if in any fiscal
17		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
18		may be, of the moneys received by the Department and required
19		to be paid into the Build Illinois Fund pursuant to this Act,
20		Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
21		Act, and Section 9 of the Service Occupation Tax Act, such Acts
22		being hereinafter called the "Tax Acts" and such aggregate of
23		2.2% or 3.8%, as the case may be, of moneys being hereinafter
24		called the "Tax Act Amount", and (2) the amount transferred to
25		the Build Illinois Fund from the State and Local Sales Tax
26		Reform Fund shall be less than the Annual Specified Amount (as

HB4951 Enrolled - 1023 - LRB103 38094 HLH 68226 b
1		hereinafter defined), an amount equal to the difference shall
2		be immediately paid into the Build Illinois Fund from other
3		moneys received by the Department pursuant to the Tax Acts;
4		the "Annual Specified Amount" means the amounts specified
5		below for fiscal years 1986 through 1993:
6 Fiscal Year Annual Specified Amount 7 1986 $54,800,000 8 1987 $76,650,000 9 1988 $80,480,000 10 1989 $88,510,000 11 1990 $115,330,000 12 1991 $145,470,000 13 1992 $182,730,000 14 1993 $206,520,000;
15		and means the Certified Annual Debt Service Requirement (as
16		defined in Section 13 of the Build Illinois Bond Act) or the
17		Tax Act Amount, whichever is greater, for fiscal year 1994 and
18		each fiscal year thereafter; and further provided, that if on
19		the last business day of any month the sum of (1) the Tax Act
20		Amount required to be deposited into the Build Illinois Bond
21		Account in the Build Illinois Fund during such month and (2)
22		the amount transferred to the Build Illinois Fund from the
23		State and Local Sales Tax Reform Fund shall have been less than
24		1/12 of the Annual Specified Amount, 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

HB4951 Enrolled - 1024 - LRB103 38094 HLH 68226 b
1		the Tax Acts; and, further provided, that in no event shall the
2		payments required under the preceding proviso result in
3		aggregate payments into the Build Illinois Fund pursuant to
4		this clause (b) for any fiscal year in excess of the greater of
5		(i) the Tax Act Amount or (ii) the Annual Specified Amount for
6		such fiscal year. The amounts payable into the Build Illinois
7		Fund under clause (b) of the first sentence in this paragraph
8		shall be payable only until such time as the aggregate amount
9		on deposit under each trust indenture securing Bonds issued
10		and outstanding pursuant to the Build Illinois Bond Act is
11		sufficient, taking into account any future investment income,
12		to fully provide, in accordance with such indenture, for the
13		defeasance of or the payment of the principal of, premium, if
14		any, and interest on the Bonds secured by such indenture and on
15		any Bonds expected to be issued thereafter and all fees and
16		costs payable with respect thereto, all as certified by the
17		Director of the Bureau of the Budget (now Governor's Office of
18		Management and Budget). If on the last business day of any
19		month in which Bonds are outstanding pursuant to the Build
20		Illinois Bond Act, the aggregate of moneys deposited in the
21		Build Illinois Bond Account in the Build Illinois Fund in such
22		month shall be less than the amount required to be transferred
23		in such month from the Build Illinois Bond Account to the Build
24		Illinois Bond Retirement and Interest Fund pursuant to Section
25		13 of the Build Illinois Bond Act, an amount equal to such
26		deficiency shall be immediately paid from other moneys

HB4951 Enrolled - 1025 - LRB103 38094 HLH 68226 b
1		received by the Department pursuant to the Tax Acts to the
2		Build Illinois Fund; provided, however, that any amounts paid
3		to the Build Illinois Fund in any fiscal year pursuant to this
4		sentence shall be deemed to constitute payments pursuant to
5		clause (b) of the first sentence of this paragraph and shall
6		reduce the amount otherwise payable for such fiscal year
7		pursuant to that clause (b). 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 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 25 1993 $0 26 1994 53,000,000

HB4951 Enrolled - 1026 - LRB103 38094 HLH 68226 b

1 1995 58,000,000 2 1996 61,000,000 3 1997 64,000,000 4 1998 68,000,000 5 1999 71,000,000 6 2000 75,000,000 7 2001 80,000,000 8 2002 93,000,000 9 2003 99,000,000 10 2004 103,000,000 11 2005 108,000,000 12 2006 113,000,000 13 2007 119,000,000 14 2008 126,000,000 15 2009 132,000,000 16 2010 139,000,000 17 2011 146,000,000 18 2012 153,000,000 19 2013 161,000,000 20 2014 170,000,000 21 2015 179,000,000 22 2016 189,000,000 23 2017 199,000,000 24 2018 210,000,000 25 2019 221,000,000 26 2020 233,000,000

HB4951 Enrolled - 1027 - LRB103 38094 HLH 68226 b
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

HB4951 Enrolled - 1028 - LRB103 38094 HLH 68226 b
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 Clean Air Act Permit Fund, the Build Illinois Fund,
14		and the McCormick Place Expansion Project Fund pursuant to the
15		preceding paragraphs or in any amendments thereto hereafter
16		enacted, for aviation fuel sold on or after December 1, 2019,
17		the Department shall each month deposit into the Aviation Fuel
18		Sales Tax Refund Fund an amount estimated by the Department to
19		be required for refunds of the 80% portion of the tax on
20		aviation fuel under this Act. The Department shall only
21		deposit moneys into the Aviation Fuel Sales Tax Refund Fund
22		under this paragraph for so long as the revenue use
23		requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
24		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

HB4951 Enrolled - 1029 - LRB103 38094 HLH 68226 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

HB4951 Enrolled - 1030 - LRB103 38094 HLH 68226 b
1		Fund, the McCormick Place Expansion Project Fund, the Illinois
2		Tax Increment Fund, the Energy Infrastructure Fund, and the
3		Tax Compliance and Administration Fund as provided in this
4		Section, beginning on July 1, 2018 the Department shall pay
5		each month into the Downstate Public Transportation Fund the
6		moneys required to be so paid under Section 2-3 of the
7		Downstate Public Transportation Act.
8		Subject to successful execution and delivery of a
9		public-private agreement between the public agency and private
10		entity and completion of the civic build, beginning on July 1,
11		2023, of the remainder of the moneys received by the
12		Department under the Use Tax Act, the Service Use Tax Act, the
13		Service Occupation Tax Act, and this Act, the Department shall
14		deposit the following specified deposits in the aggregate from
15		collections under the Use Tax Act, the Service Use Tax Act, the
16		Service Occupation Tax Act, and the Retailers' Occupation Tax
17		Act, as required under Section 8.25g of the State Finance Act
18		for distribution consistent with the Public-Private
19		Partnership for Civic and Transit Infrastructure Project Act.
20		The moneys received by the Department pursuant to this Act and
21		required to be deposited into the Civic and Transit
22		Infrastructure Fund are subject to the pledge, claim and
23		charge set forth in Section 25-55 of the Public-Private
24		Partnership for Civic and Transit Infrastructure Project Act.
25		As used in this paragraph, "civic build", "private entity",
26		"public-private agreement", and "public agency" have the

HB4951 Enrolled - 1031 - LRB103 38094 HLH 68226 b
1		meanings provided in Section 25-10 of the Public-Private
2		Partnership for Civic and Transit Infrastructure Project Act.
3		Fiscal Year.............................Total Deposit
4		2024.....................................$200,000,000
5		2025....................................$206,000,000
6		2026....................................$212,200,000
7		2027....................................$218,500,000
8		2028....................................$225,100,000
9		2029....................................$288,700,000
10		2030....................................$298,900,000
11		2031....................................$309,300,000
12		2032....................................$320,100,000
13		2033....................................$331,200,000
14		2034....................................$341,200,000
15		2035....................................$351,400,000
16		2036....................................$361,900,000
17		2037....................................$372,800,000
18		2038....................................$384,000,000
19		2039....................................$395,500,000
20		2040....................................$407,400,000
21		2041....................................$419,600,000
22		2042....................................$432,200,000
23		2043....................................$445,100,000
24		Beginning July 1, 2021 and until July 1, 2022, subject to
25		the payment of amounts into the County and Mass Transit
26		District Fund, the Local Government Tax Fund, the Build

HB4951 Enrolled - 1032 - LRB103 38094 HLH 68226 b
1		Illinois Fund, the McCormick Place Expansion Project Fund, the
2		Illinois Tax Increment Fund, and the Tax Compliance and
3		Administration Fund as provided in this Section, the
4		Department shall pay each month into the Road Fund the amount
5		estimated to represent 16% of the net revenue realized from
6		the taxes imposed on motor fuel and gasohol. Beginning July 1,
7		2022 and until July 1, 2023, subject to the payment of amounts
8		into the County and Mass Transit District Fund, the Local
9		Government Tax Fund, the Build Illinois Fund, the McCormick
10		Place Expansion Project Fund, the Illinois Tax Increment Fund,
11		and the Tax Compliance and Administration Fund as provided in
12		this Section, the Department shall pay each month into the
13		Road Fund the amount estimated to represent 32% of the net
14		revenue realized from the taxes imposed on motor fuel and
15		gasohol. Beginning July 1, 2023 and until July 1, 2024,
16		subject to the payment of amounts into the County and Mass
17		Transit District Fund, the Local Government Tax Fund, the
18		Build Illinois Fund, the McCormick Place Expansion Project
19		Fund, the Illinois Tax Increment Fund, and the Tax Compliance
20		and Administration Fund as provided in this Section, the
21		Department shall pay each month into the Road Fund the amount
22		estimated to represent 48% of the net revenue realized from
23		the taxes imposed on motor fuel and gasohol. Beginning July 1,
24		2024 and until July 1, 2025, subject to the payment of amounts
25		into the County and Mass Transit District Fund, the Local
26		Government Tax Fund, the Build Illinois Fund, the McCormick

HB4951 Enrolled - 1033 - LRB103 38094 HLH 68226 b
1		Place Expansion Project Fund, the Illinois Tax Increment Fund,
2		and the Tax Compliance and Administration Fund as provided in
3		this Section, the Department shall pay each month into the
4		Road Fund the amount estimated to represent 64% of the net
5		revenue realized from the taxes imposed on motor fuel and
6		gasohol. Beginning on July 1, 2025, subject to the payment of
7		amounts into the County and Mass Transit District Fund, the
8		Local Government Tax Fund, the Build Illinois Fund, the
9		McCormick Place Expansion Project Fund, the Illinois Tax
10		Increment Fund, and the Tax Compliance and Administration Fund
11		as provided in this Section, the Department shall pay each
12		month into the Road Fund the amount estimated to represent 80%
13		of the net revenue realized from the taxes imposed on motor
14		fuel and gasohol. As used in this paragraph "motor fuel" has
15		the meaning given to that term in Section 1.1 of the Motor Fuel
16		Tax Law, and "gasohol" has the meaning given to that term in
17		Section 3-40 of the Use Tax Act.
18		Of the remainder of the moneys received by the Department
19		pursuant to this Act, 75% thereof shall be paid into the State
20		treasury and 25% shall be reserved in a special account and
21		used only for the transfer to the Common School Fund as part of
22		the monthly transfer from the General Revenue Fund in
23		accordance with Section 8a of the State Finance Act.
24		The Department may, upon separate written notice to a
25		taxpayer, require the taxpayer to prepare and file with the
26		Department on a form prescribed by the Department within not

HB4951 Enrolled - 1034 - LRB103 38094 HLH 68226 b
1		less than 60 days after receipt of the notice an annual
2		information return for the tax year specified in the notice.
3		Such annual return to the Department shall include a statement
4		of gross receipts as shown by the retailer's last federal
5		Federal income tax return. If the total receipts of the
6		business as reported in the federal Federal income tax return
7		do not agree with the gross receipts reported to the
8		Department of Revenue for the same period, the retailer shall
9		attach to his annual return a schedule showing a
10		reconciliation of the 2 amounts and the reasons for the
11		difference. The retailer's annual return to the Department
12		shall also disclose the cost of goods sold by the retailer
13		during the year covered by such return, opening and closing
14		inventories of such goods for such year, costs of goods used
15		from stock or taken from stock and given away by the retailer
16		during such year, payroll information of the retailer's
17		business during such year and any additional reasonable
18		information which the Department deems would be helpful in
19		determining the accuracy of the monthly, quarterly, or annual
20		returns filed by such retailer as provided for in this
21		Section.
22		If the annual information return required by this Section
23		is not filed when and as required, the taxpayer shall be liable
24		as follows:
25		(i) Until January 1, 1994, the taxpayer shall be
26		liable for a penalty equal to 1/6 of 1% of the tax due from

HB4951 Enrolled - 1035 - LRB103 38094 HLH 68226 b
1		such taxpayer under this Act during the period to be
2		covered by the annual return for each month or fraction of
3		a month until such return is filed as required, the
4		penalty to be assessed and collected in the same manner as
5		any other penalty provided for in this Act.
6		(ii) On and after January 1, 1994, the taxpayer shall
7		be liable for a penalty as described in Section 3-4 of the
8		Uniform Penalty and Interest Act.
9		The chief executive officer, proprietor, owner, or highest
10		ranking manager shall sign the annual return to certify the
11		accuracy of the information contained therein. Any person who
12		willfully signs the annual return containing false or
13		inaccurate information shall be guilty of perjury and punished
14		accordingly. The annual return form prescribed by the
15		Department shall include a warning that the person signing the
16		return may be liable for perjury.
17		The provisions of this Section concerning the filing of an
18		annual information return do not apply to a retailer who is not
19		required to file an income tax return with the United States
20		Government.
21		As soon as possible after the first day of each month, upon
22		certification of the Department of Revenue, the Comptroller
23		shall order transferred and the Treasurer shall transfer from
24		the General Revenue Fund to the Motor Fuel Tax Fund an amount
25		equal to 1.7% of 80% of the net revenue realized under this Act
26		for the second preceding month. Beginning April 1, 2000, this

HB4951 Enrolled - 1036 - LRB103 38094 HLH 68226 b
1		transfer is no longer required and shall not be made.
2		Net revenue realized for a month shall be the revenue
3		collected by the State pursuant to this Act, less the amount
4		paid out during that month as refunds to taxpayers for
5		overpayment of liability.
6		For greater simplicity of administration, manufacturers,
7		importers and wholesalers whose products are sold at retail in
8		Illinois by numerous retailers, and who wish to do so, may
9		assume the responsibility for accounting and paying to the
10		Department all tax accruing under this Act with respect to
11		such sales, if the retailers who are affected do not make
12		written objection to the Department to this arrangement.
13		Any person who promotes, organizes, or provides retail
14		selling space for concessionaires or other types of sellers at
15		the Illinois State Fair, DuQuoin State Fair, county fairs,
16		local fairs, art shows, flea markets, and similar exhibitions
17		or events, including any transient merchant as defined by
18		Section 2 of the Transient Merchant Act of 1987, is required to
19		file a report with the Department providing the name of the
20		merchant's business, the name of the person or persons engaged
21		in merchant's business, the permanent address and Illinois
22		Retailers Occupation Tax Registration Number of the merchant,
23		the dates and location of the event, and other reasonable
24		information that the Department may require. The report must
25		be filed not later than the 20th day of the month next
26		following the month during which the event with retail sales

HB4951 Enrolled - 1037 - LRB103 38094 HLH 68226 b
1		was held. Any person who fails to file a report required by
2		this Section commits a business offense and is subject to a
3		fine not to exceed $250.
4		Any person engaged in the business of selling tangible
5		personal property at retail as a concessionaire or other type
6		of seller at the Illinois State Fair, county fairs, art shows,
7		flea markets, and similar exhibitions or events, or any
8		transient merchants, as defined by Section 2 of the Transient
9		Merchant Act of 1987, may be required to make a daily report of
10		the amount of such sales to the Department and to make a daily
11		payment of the full amount of tax due. The Department shall
12		impose this requirement when it finds that there is a
13		significant risk of loss of revenue to the State at such an
14		exhibition or event. Such a finding shall be based on evidence
15		that a substantial number of concessionaires or other sellers
16		who are not residents of Illinois will be engaging in the
17		business of selling tangible personal property at retail at
18		the exhibition or event, or other evidence of a significant
19		risk of loss of revenue to the State. The Department shall
20		notify concessionaires and other sellers affected by the
21		imposition of this requirement. In the absence of notification
22		by the Department, the concessionaires and other sellers shall
23		file their returns as otherwise required in this Section.
24		(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60,
25		Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
26		65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.

HB4951 Enrolled - 1038 - LRB103 38094 HLH 68226 b
1		1-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363,
2		eff. 7-28-23; revised 9-27-23.)
3		Section 110-25. The Prepaid Wireless 9-1-1 Surcharge Act
4		is amended by changing Section 20 as follows:
5		(50 ILCS 753/20)
6		Sec. 20. Administration of prepaid wireless 9-1-1
7		surcharge.
8		(a) In the administration and enforcement of this Act, the
9		provisions of Sections 2a, 2b, 2c, 3, 4, 5, 5a, 5b, 5c, 5d, 5e,
10		5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 12 of the
11		Retailers' Occupation Tax Act that are not inconsistent with
12		this Act, and Section 3-7 of the Uniform Penalty and Interest
13		Act shall apply, as far as practicable, to the subject matter
14		of this Act to the same extent as if those provisions were
15		included in this Act. References to "taxes" in these
16		incorporated Sections shall be construed to apply to the
17		administration, payment, and remittance of all surcharges
18		under this Act. The Department shall establish registration
19		and payment procedures that substantially coincide with the
20		registration and payment procedures that apply to the
21		Retailers' Occupation Tax Act.
22		(b) A seller shall be permitted to deduct and retain 3% of
23		prepaid wireless 9-1-1 surcharges that are collected by the
24		seller from consumers and that are remitted and timely filed

HB4951 Enrolled - 1039 - LRB103 38094 HLH 68226 b
1		with the Department. Beginning with returns due on or after
2		January 1, 2025, the 3% deduction allowed under this
3		subsection, including any local surcharge administered by the
4		Department and reported on the same return, shall not exceed
5		$1,000 per month. Beginning January 1, 2018, the seller is
6		allowed to deduct and retain a portion of the prepaid wireless
7		9-1-1 surcharges as authorized by this subsection only if the
8		return is filed electronically as provided in Section 3 of the
9		Retailers' Occupation Tax Act. Sellers who demonstrate that
10		they do not have access to the Internet or demonstrate
11		hardship in filing electronically may petition the Department
12		to waive the electronic filing requirement.
13		(c) Other than the amounts for deposit into the Municipal
14		Wireless Service Emergency Fund, the Department shall pay to
15		the State Treasurer all prepaid wireless E911 charges,
16		penalties, and interest collected under this Act for deposit
17		into the Statewide 9-1-1 Fund. On or before the 25th day of
18		each calendar month, the Department shall prepare and certify
19		to the Comptroller the amount available to the Illinois State
20		Police for distribution out of the Statewide 9-1-1 Fund. The
21		amount certified shall be the amount (not including credit
22		memoranda) collected during the second preceding calendar
23		month by the Department plus an amount the Department
24		determines is necessary to offset any amounts which were
25		erroneously paid to a different taxing body. The amount paid
26		to the Statewide 9-1-1 Fund shall not include any amount equal

HB4951 Enrolled - 1040 - LRB103 38094 HLH 68226 b
1		to the amount of refunds made during the second preceding
2		calendar month by the Department of Revenue to retailers under
3		this Act or any amount that the Department determines is
4		necessary to offset any amounts which were payable to a
5		different taxing body but were erroneously paid to the
6		Statewide 9-1-1 Fund. The Illinois State Police shall
7		distribute the funds in accordance with Section 30 of the
8		Emergency Telephone Safety Act. The Department may deduct an
9		amount, not to exceed 2% of remitted charges, to be
10		transferred into the Tax Compliance and Administration Fund to
11		reimburse the Department for its direct costs of administering
12		the collection and remittance of prepaid wireless 9-1-1
13		surcharges.
14		(d) The Department shall administer the collection of all
15		9-1-1 surcharges and may adopt and enforce reasonable rules
16		relating to the administration and enforcement of the
17		provisions of this Act as may be deemed expedient. The
18		Department shall require all surcharges collected under this
19		Act to be reported on existing forms or combined forms,
20		including, but not limited to, Form ST-1. Any overpayments
21		received by the Department for liabilities reported on
22		existing or combined returns shall be applied as an
23		overpayment of retailers' occupation tax, use tax, service
24		occupation tax, or service use tax liability.
25		(e) If a home rule municipality having a population in
26		excess of 500,000 as of the effective date of this amendatory

HB4951 Enrolled - 1041 - LRB103 38094 HLH 68226 b
1		Act of the 97th General Assembly imposes an E911 surcharge
2		under subsection (a-5) of Section 15 of this Act, then the
3		Department shall pay to the State Treasurer all prepaid
4		wireless E911 charges, penalties, and interest collected for
5		deposit into the Municipal Wireless Service Emergency Fund.
6		All deposits into the Municipal Wireless Service Emergency
7		Fund shall be held by the State Treasurer as ex officio
8		custodian apart from all public moneys or funds of this State.
9		Any interest attributable to moneys in the Fund must be
10		deposited into the Fund. Moneys in the Municipal Wireless
11		Service Emergency Fund are not subject to appropriation. On or
12		before the 25th day of each calendar month, the Department
13		shall prepare and certify to the Comptroller the amount
14		available for disbursement to the home rule municipality out
15		of the Municipal Wireless Service Emergency Fund. The amount
16		to be paid to the Municipal Wireless Service Emergency Fund
17		shall be the amount (not including credit memoranda) collected
18		during the second preceding calendar month by the Department
19		plus an amount the Department determines is necessary to
20		offset any amounts which were erroneously paid to a different
21		taxing body. The amount paid to the Municipal Wireless Service
22		Emergency Fund shall not include any amount equal to the
23		amount of refunds made during the second preceding calendar
24		month by the Department to retailers under this Act or any
25		amount that the Department determines is necessary to offset
26		any amounts which were payable to a different taxing body but

HB4951 Enrolled - 1042 - LRB103 38094 HLH 68226 b
1		were erroneously paid to the Municipal Wireless Service
2		Emergency Fund. Within 10 days after receipt by the
3		Comptroller of the certification provided for in this
4		subsection, the Comptroller shall cause the orders to be drawn
5		for the respective amounts in accordance with the directions
6		in the certification. The Department may deduct an amount, not
7		to exceed 2% of remitted charges, to be transferred into the
8		Tax Compliance and Administration Fund to reimburse the
9		Department for its direct costs of administering the
10		collection and remittance of prepaid wireless 9-1-1
11		surcharges.
12		(Source: P.A. 102-538, eff. 8-20-21.)
13		ARTICLE 115.
14		Section 115-5. The Business Corporation Act of 1983 is
15		amended by changing Sections 15.35 and 15.65 as follows:
16		(805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
17		(Text of Section from P.A. 102-16 and 103-8)
18		Sec. 15.35. Franchise taxes payable by domestic
19		corporations. For the privilege of exercising its franchises
20		in this State, each domestic corporation shall pay to the
21		Secretary of State the following franchise taxes, computed on
22		the basis, at the rates and for the periods prescribed in this
23		Act:

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1		(a) An initial franchise tax at the time of filing its
2		first report of issuance of shares.
3		(b) An additional franchise tax at the time of filing
4		(1) a report of the issuance of additional shares, or (2) a
5		report of an increase in paid-in capital without the
6		issuance of shares, or (3) an amendment to the articles of
7		incorporation or a report of cumulative changes in paid-in
8		capital, whenever any amendment or such report discloses
9		an increase in its paid-in capital over the amount thereof
10		last reported in any document, other than an annual
11		report, interim annual report or final transition annual
12		report required by this Act to be filed in the office of
13		the Secretary of State.
14		(c) An additional franchise tax at the time of filing
15		a report of paid-in capital following a statutory merger
16		or consolidation, which discloses that the paid-in capital
17		of the surviving or new corporation immediately after the
18		merger or consolidation is greater than the sum of the
19		paid-in capital of all of the merged or consolidated
20		corporations as last reported by them in any documents,
21		other than annual reports, required by this Act to be
22		filed in the office of the Secretary of State; and in
23		addition, the surviving or new corporation shall be liable
24		for a further additional franchise tax on the paid-in
25		capital of each of the merged or consolidated corporations
26		as last reported by them in any document, other than an

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1		annual report, required by this Act to be filed with the
2		Secretary of State from their taxable year end to the next
3		succeeding anniversary month or, in the case of a
4		corporation which has established an extended filing
5		month, the extended filing month of the surviving or new
6		corporation; however if the taxable year ends within the
7		2-month period immediately preceding the anniversary month
8		or, in the case of a corporation which has established an
9		extended filing month, the extended filing month of the
10		surviving or new corporation the tax will be computed to
11		the anniversary month or, in the case of a corporation
12		which has established an extended filing month, the
13		extended filing month of the surviving or new corporation
14		in the next succeeding calendar year.
15		(d) An annual franchise tax payable each year with the
16		annual report which the corporation is required by this
17		Act to file.
18		On or after January 1, 2020 and prior to January 1, 2021,
19		the first $30 in liability is exempt from the tax imposed under
20		this Section. On or after January 1, 2021, and prior to January
21		1, 2024, the first $1,000 in liability is exempt from the tax
22		imposed under this Section. On or after January 1, 2024, and
23		before January 1, 2025, the first $5,000 in liability is
24		exempt from the tax imposed under this Section. On and after
25		January 1, 2025, the first $10,000 in liability is exempt from
26		the tax imposed under this Section.

HB4951 Enrolled - 1045 - LRB103 38094 HLH 68226 b
1		(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
2		(Text of Section from P.A. 102-282, 102-558, and 103-8)
3		Sec. 15.35. Franchise taxes payable by domestic
4		corporations. For the privilege of exercising its franchises
5		in this State, each domestic corporation shall pay to the
6		Secretary of State the following franchise taxes, computed on
7		the basis, at the rates and for the periods prescribed in this
8		Act:
9		(a) An initial franchise tax at the time of filing its
10		first report of issuance of shares.
11		(b) An additional franchise tax at the time of filing
12		(1) a report of the issuance of additional shares, or (2) a
13		report of an increase in paid-in capital without the
14		issuance of shares, or (3) an amendment to the articles of
15		incorporation or a report of cumulative changes in paid-in
16		capital, whenever any amendment or such report discloses
17		an increase in its paid-in capital over the amount thereof
18		last reported in any document, other than an annual
19		report, interim annual report or final transition annual
20		report required by this Act to be filed in the office of
21		the Secretary of State.
22		(c) An additional franchise tax at the time of filing
23		a report of paid-in capital following a statutory merger
24		or consolidation, which discloses that the paid-in capital
25		of the surviving or new corporation immediately after the

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1		merger or consolidation is greater than the sum of the
2		paid-in capital of all of the merged or consolidated
3		corporations as last reported by them in any documents,
4		other than annual reports, required by this Act to be
5		filed in the office of the Secretary of State; and in
6		addition, the surviving or new corporation shall be liable
7		for a further additional franchise tax on the paid-in
8		capital of each of the merged or consolidated corporations
9		as last reported by them in any document, other than an
10		annual report, required by this Act to be filed with the
11		Secretary of State from their taxable year end to the next
12		succeeding anniversary month or, in the case of a
13		corporation which has established an extended filing
14		month, the extended filing month of the surviving or new
15		corporation; however if the taxable year ends within the
16		2-month period immediately preceding the anniversary month
17		or, in the case of a corporation which has established an
18		extended filing month, the extended filing month of the
19		surviving or new corporation the tax will be computed to
20		the anniversary month or, in the case of a corporation
21		which has established an extended filing month, the
22		extended filing month of the surviving or new corporation
23		in the next succeeding calendar year.
24		(d) An annual franchise tax payable each year with the
25		annual report which the corporation is required by this
26		Act to file.

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1		On or after January 1, 2020 and prior to January 1, 2021,
2		the first $30 in liability is exempt from the tax imposed under
3		this Section. On or after January 1, 2021 and prior to January
4		1, 2024, the first $1,000 in liability is exempt from the tax
5		imposed under this Section. On or after January 1, 2024, and
6		before January 1, 2025, the first $5,000 in liability is
7		exempt from the tax imposed under this Section. On and after
8		January 1, 2025, the first $10,000 in liability is exempt from
9		the tax imposed under this Section.
10		(Source: P.A. 102-282, eff. 1-1-22; 102-558, eff. 8-20-21;
11		103-8, eff. 6-7-23.)
12		(805 ILCS 5/15.65) (from Ch. 32, par. 15.65)
13		Sec. 15.65. Franchise taxes payable by foreign
14		corporations. For the privilege of exercising its authority to
15		transact such business in this State as set out in its
16		application therefor or any amendment thereto, each foreign
17		corporation shall pay to the Secretary of State the following
18		franchise taxes, computed on the basis, at the rates and for
19		the periods prescribed in this Act:
20		(a) An initial franchise tax at the time of filing its
21		application for authority to transact business in this
22		State.
23		(b) An additional franchise tax at the time of filing
24		(1) a report of the issuance of additional shares, or (2) a
25		report of an increase in paid-in capital without the

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1		issuance of shares, or (3) a report of cumulative changes
2		in paid-in capital or a report of an exchange or
3		reclassification of shares, whenever any such report
4		discloses an increase in its paid-in capital over the
5		amount thereof last reported in any document, other than
6		an annual report, interim annual report or final
7		transition annual report, required by this Act to be filed
8		in the office of the Secretary of State.
9		(c) Whenever the corporation shall be a party to a
10		statutory merger and shall be the surviving corporation,
11		an additional franchise tax at the time of filing its
12		report following merger, if such report discloses that the
13		amount represented in this State of its paid-in capital
14		immediately after the merger is greater than the aggregate
15		of the amounts represented in this State of the paid-in
16		capital of such of the merged corporations as were
17		authorized to transact business in this State at the time
18		of the merger, as last reported by them in any documents,
19		other than annual reports, required by this Act to be
20		filed in the office of the Secretary of State; and in
21		addition, the surviving corporation shall be liable for a
22		further additional franchise tax on the paid-in capital of
23		each of the merged corporations as last reported by them
24		in any document, other than an annual report, required by
25		this Act to be filed with the Secretary of State, from
26		their taxable year end to the next succeeding anniversary

HB4951 Enrolled - 1049 - LRB103 38094 HLH 68226 b
1		month or, in the case of a corporation which has
2		established an extended filing month, the extended filing
3		month of the surviving corporation; however if the taxable
4		year ends within the 2-month period immediately preceding
5		the anniversary month or the extended filing month of the
6		surviving corporation, the tax will be computed to the
7		anniversary or, extended filing month of the surviving
8		corporation in the next succeeding calendar year.
9		(d) An annual franchise tax payable each year with any
10		annual report which the corporation is required by this
11		Act to file.
12		On or after January 1, 2020 and prior to January 1, 2021,
13		the first $30 in liability is exempt from the tax imposed under
14		this Section. On or after January 1, 2021 and before January 1,
15		2024, the first $1,000 in liability is exempt from the tax
16		imposed under this Section. On and after January 1, 2024 and
17		before January 1, 2025, the first $5,000 in liability is
18		exempt from the tax imposed under this Section. On and after
19		January 1, 2025, the first $10,000 in liability is exempt from
20		the tax imposed under this Section.
21		(Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
22		102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)
23		ARTICLE 120.
24		Section 120-5. The Sports Wagering Act is amended by

HB4951 Enrolled - 1050 - LRB103 38094 HLH 68226 b
1		changing Section 25-90 as follows:
2		(230 ILCS 45/25-90)
3		Sec. 25-90. Tax; Sports Wagering Fund.
4		(a) For the privilege of holding a license to operate
5		sports wagering under this Act until June 30, 2024, this State
6		shall impose and collect 15% of a master sports wagering
7		licensee's adjusted gross sports wagering receipts from sports
8		wagering. The accrual method of accounting shall be used for
9		purposes of calculating the amount of the tax owed by the
10		licensee.
11		The taxes levied and collected pursuant to this subsection
12		(a) are due and payable to the Board no later than the last day
13		of the month following the calendar month in which the
14		adjusted gross sports wagering receipts were received and the
15		tax obligation was accrued.
16		(a-5) In addition to the tax imposed under subsection (a),
17		(d), or (d-5) of this Section, for the privilege of holding a
18		license to operate sports wagering under this Act, the State
19		shall impose and collect 2% of the adjusted gross receipts
20		from sports wagers that are placed within a home rule county
21		with a population of over 3,000,000 inhabitants, which shall
22		be paid, subject to appropriation from the General Assembly,
23		from the Sports Wagering Fund to that home rule county for the
24		purpose of enhancing the county's criminal justice system.
25		(b) The Sports Wagering Fund is hereby created as a

HB4951 Enrolled - 1051 - LRB103 38094 HLH 68226 b
1		special fund in the State treasury. Except as otherwise
2		provided in this Act, all moneys collected under this Act by
3		the Board shall be deposited into the Sports Wagering Fund.
4		Through August 25, 2024, on On the 25th of each month, any
5		moneys remaining in the Sports Wagering Fund in excess of the
6		anticipated monthly expenditures from the Fund through the
7		next month, as certified by the Board to the State
8		Comptroller, shall be transferred by the State Comptroller and
9		the State Treasurer to the Capital Projects Fund. Beginning
10		September 25, 2024, on the 25th of each month, of the moneys
11		remaining in the Sports Wagering Fund in excess of the
12		anticipated monthly expenditures from the Fund through the
13		next month, as certified by the Board to the State
14		Comptroller, the State Comptroller shall direct and the State
15		Treasurer shall transfer 58% to the General Revenue Fund and
16		42% to the Capital Projects Fund.
17		(c) Beginning with July 2021, and on a monthly basis
18		thereafter, the Board shall certify to the State Comptroller
19		the amount of license fees collected in the month for initial
20		licenses issued under this Act, except for occupational
21		licenses. As soon after certification as practicable, the
22		State Comptroller shall direct and the State Treasurer shall
23		transfer the certified amount from the Sports Wagering Fund to
24		the Rebuild Illinois Projects Fund.
25		(d) Beginning on July 1, 2024, and for each 12-month
26		period thereafter, for the privilege of holding a license to

HB4951 Enrolled - 1052 - LRB103 38094 HLH 68226 b
1		operate sports wagering under this Act, this State shall
2		impose a privilege tax on the master sports licensee's
3		adjusted gross sports wagering receipts from sports wagering
4		over the Internet or through a mobile application based on the
5		following rates:
6		20% of annual adjusted gross sports wagering receipts
7		up to and including $30,000,000.
8		25% of annual adjusted gross sports wagering receipts
9		in excess of $30,000,000 but not exceeding $50,000,000.
10		30% of annual adjusted gross sports wagering receipts
11		in excess of $50,000,000 but not exceeding $100,000,000.
12		35% of annual adjusted gross sports wagering receipts
13		in excess of $100,000,000 but not exceeding $200,000,000.
14		40% of annual adjusted gross sports wagering receipts
15		in excess of $200,000,000.
16		(d-5) Beginning on July 1, 2024, and for each 12-month
17		period thereafter, for the privilege of holding a license to
18		operate sports wagering under this Act, this State shall
19		impose a privilege tax on the master sports licensee's
20		adjusted gross sports wagering receipts from sports wagering
21		from other than over the Internet or through a mobile
22		application based on the following rates:
23		20% of annual adjusted gross sports wagering receipts
24		up to and including $30,000,000.
25		25% of annual adjusted gross sports wagering receipts
26		in excess of $30,000,000 but not exceeding $50,000,000.

HB4951 Enrolled - 1053 - LRB103 38094 HLH 68226 b
1		30% of annual adjusted gross sports wagering receipts
2		in excess of $50,000,000 but not exceeding $100,000,000.
3		35% of annual adjusted gross sports wagering receipts
4		in excess of $100,000,000 but not exceeding $200,000,000.
5		40% of annual adjusted gross sports wagering receipts
6		in excess of $200,000,000.
7		(d-10) The accrual method of accounting shall be used for
8		purposes of calculating the amount of the tax owed by the
9		licensee.
10		(d-15) The taxes levied and collected pursuant to
11		subsections (d) and (d-5) are due and payable to the Board no
12		later than the last day of the month following the calendar
13		month in which the adjusted gross sports wagering receipts
14		were received and the tax obligation was accrued.
15		(Source: P.A. 101-31, eff. 6-28-19; 102-16, eff. 6-17-21;
16		102-687, eff. 12-17-21.)
17		ARTICLE 130.
18		Section 130-5. The Video Gaming Act is amended by changing
19		Section 60 as follows:
20		(230 ILCS 40/60)
21		Sec. 60. Imposition and distribution of tax.
22		(a) A tax of 30% is imposed on net terminal income and
23		shall be collected by the Board.

HB4951 Enrolled - 1054 - LRB103 38094 HLH 68226 b
1		Of the tax collected under this subsection (a),
2		five-sixths shall be deposited into the Capital Projects Fund
3		and one-sixth shall be deposited into the Local Government
4		Video Gaming Distributive Fund.
5		(b) Beginning on July 1, 2019, an additional tax of 3% is
6		imposed on net terminal income and shall be collected by the
7		Board.
8		Beginning on July 1, 2020, an additional tax of 1% is
9		imposed on net terminal income and shall be collected by the
10		Board.
11		Beginning on July 1, 2024, an additional tax of 1% is
12		imposed on net terminal income and shall be collected by the
13		Board.
14		The tax collected under this subsection (b) shall be
15		deposited into the Capital Projects Fund.
16		(c) Revenues generated from the play of video gaming
17		terminals shall be deposited by the terminal operator, who is
18		responsible for tax payments, in a specially created, separate
19		bank account maintained by the video gaming terminal operator
20		to allow for electronic fund transfers of moneys for tax
21		payment.
22		(d) Each licensed establishment, licensed truck stop
23		establishment, licensed large truck stop establishment,
24		licensed fraternal establishment, and licensed veterans
25		establishment shall maintain an adequate video gaming fund,
26		with the amount to be determined by the Board.

HB4951 Enrolled - 1055 - LRB103 38094 HLH 68226 b
1		(e) The State's percentage of net terminal income shall be
2		reported and remitted to the Board within 15 days after the
3		15th day of each month and within 15 days after the end of each
4		month by the video terminal operator. A video terminal
5		operator who falsely reports or fails to report the amount due
6		required by this Section is guilty of a Class 4 felony and is
7		subject to termination of his or her license by the Board. Each
8		video terminal operator shall keep a record of net terminal
9		income in such form as the Board may require. All payments not
10		remitted when due shall be paid together with a penalty
11		assessment on the unpaid balance at a rate of 1.5% per month.
12		(Source: P.A. 101-31, eff. 6-28-19.)
13		ARTICLE 135.
14		Section 135-5. The Property Tax Code is amended by
15		changing Section 15-170 as follows:
16		(35 ILCS 200/15-170)
17		Sec. 15-170. Senior citizens homestead exemption.
18		(a) An annual homestead exemption limited, except as
19		described here with relation to cooperatives or life care
20		facilities, to a maximum reduction set forth below from the
21		property's value, as equalized or assessed by the Department,
22		is granted for property that is occupied as a residence by a
23		person 65 years of age or older who is liable for paying real

HB4951 Enrolled - 1056 - LRB103 38094 HLH 68226 b
1		estate taxes on the property and is an owner of record of the
2		property or has a legal or equitable interest therein as
3		evidenced by a written instrument, except for a leasehold
4		interest, other than a leasehold interest of land on which a
5		single family residence is located, which is occupied as a
6		residence by a person 65 years or older who has an ownership
7		interest therein, legal, equitable or as a lessee, and on
8		which he or she is liable for the payment of property taxes.
9		Before taxable year 2004, the maximum reduction shall be
10		$2,500 in counties with 3,000,000 or more inhabitants and
11		$2,000 in all other counties. For taxable years 2004 through
12		2005, the maximum reduction shall be $3,000 in all counties.
13		For taxable years 2006 and 2007, the maximum reduction shall
14		be $3,500. For taxable years 2008 through 2011, the maximum
15		reduction is $4,000 in all counties. For taxable year 2012,
16		the maximum reduction is $5,000 in counties with 3,000,000 or
17		more inhabitants and $4,000 in all other counties. For taxable
18		years 2013 through 2016, the maximum reduction is $5,000 in
19		all counties. For taxable years 2017 through 2022, the maximum
20		reduction is $8,000 in counties with 3,000,000 or more
21		inhabitants and $5,000 in all other counties. For taxable
22		years 2023 and thereafter, the maximum reduction is $8,000 in
23		counties with 3,000,000 or more inhabitants and counties that
24		are contiguous to a county of 3,000,000 or more inhabitants
25		and $5,000 in all other counties.
26		(b) For land improved with an apartment building owned and

HB4951 Enrolled - 1057 - LRB103 38094 HLH 68226 b
1		operated as a cooperative, the maximum reduction from the
2		value of the property, as equalized by the Department, shall
3		be multiplied by the number of apartments or units occupied by
4		a person 65 years of age or older who is liable, by contract
5		with the owner or owners of record, for paying property taxes
6		on the property and is an owner of record of a legal or
7		equitable interest in the cooperative apartment building,
8		other than a leasehold interest. For land improved with a life
9		care facility, the maximum reduction from the value of the
10		property, as equalized by the Department, shall be multiplied
11		by the number of apartments or units occupied by persons 65
12		years of age or older, irrespective of any legal, equitable,
13		or leasehold interest in the facility, who are liable, under a
14		contract with the owner or owners of record of the facility,
15		for paying property taxes on the property. In a cooperative or
16		a life care facility where a homestead exemption has been
17		granted, the cooperative association or the management firm of
18		the cooperative or facility shall credit the savings resulting
19		from that exemption only to the apportioned tax liability of
20		the owner or resident who qualified for the exemption. Any
21		person who willfully refuses to so credit the savings shall be
22		guilty of a Class B misdemeanor. Under this Section and
23		Sections 15-175, 15-176, and 15-177, "life care facility"
24		means a facility, as defined in Section 2 of the Life Care
25		Facilities Act, with which the applicant for the homestead
26		exemption has a life care contract as defined in that Act.

HB4951 Enrolled - 1058 - LRB103 38094 HLH 68226 b
1		(c) When a homestead exemption has been granted under this
2		Section and the person qualifying subsequently becomes a
3		resident of a facility licensed under the Assisted Living and
4		Shared Housing Act, the Nursing Home Care Act, the Specialized
5		Mental Health Rehabilitation Act of 2013, the ID/DD Community
6		Care Act, or the MC/DD Act, the exemption shall continue so
7		long as the residence continues to be occupied by the
8		qualifying person's spouse if the spouse is 65 years of age or
9		older, or if the residence remains unoccupied but is still
10		owned by the person qualified for the homestead exemption.
11		(d) A person who will be 65 years of age during the current
12		assessment year shall be eligible to apply for the homestead
13		exemption during that assessment year. Application shall be
14		made during the application period in effect for the county of
15		his residence.
16		(e) Beginning with assessment year 2003, for taxes payable
17		in 2004, property that is first occupied as a residence after
18		January 1 of any assessment year by a person who is eligible
19		for the senior citizens homestead exemption under this Section
20		must be granted a pro-rata exemption for the assessment year.
21		The amount of the pro-rata exemption is the exemption allowed
22		in the county under this Section divided by 365 and multiplied
23		by the number of days during the assessment year the property
24		is occupied as a residence by a person eligible for the
25		exemption under this Section. The chief county assessment
26		officer must adopt reasonable procedures to establish

HB4951 Enrolled - 1059 - LRB103 38094 HLH 68226 b
1		eligibility for this pro-rata exemption.
2		(f) The assessor or chief county assessment officer may
3		determine the eligibility of a life care facility to receive
4		the benefits provided by this Section, by affidavit,
5		application, visual inspection, questionnaire or other
6		reasonable methods in order to ensure insure that the tax
7		savings resulting from the exemption are credited by the
8		management firm to the apportioned tax liability of each
9		qualifying resident. The assessor may request reasonable proof
10		that the management firm has so credited the exemption.
11		(g) The chief county assessment officer of each county
12		with less than 3,000,000 inhabitants shall provide to each
13		person allowed a homestead exemption under this Section a form
14		to designate any other person to receive a duplicate of any
15		notice of delinquency in the payment of taxes assessed and
16		levied under this Code on the property of the person receiving
17		the exemption. The duplicate notice shall be in addition to
18		the notice required to be provided to the person receiving the
19		exemption, and shall be given in the manner required by this
20		Code. The person filing the request for the duplicate notice
21		shall pay a fee of $5 to cover administrative costs to the
22		supervisor of assessments, who shall then file the executed
23		designation with the county collector. Notwithstanding any
24		other provision of this Code to the contrary, the filing of
25		such an executed designation requires the county collector to
26		provide duplicate notices as indicated by the designation. A

HB4951 Enrolled - 1060 - LRB103 38094 HLH 68226 b
1		designation may be rescinded by the person who executed such
2		designation at any time, in the manner and form required by the
3		chief county assessment officer.
4		(h) The assessor or chief county assessment officer may
5		determine the eligibility of residential property to receive
6		the homestead exemption provided by this Section by
7		application, visual inspection, questionnaire or other
8		reasonable methods. The determination shall be made in
9		accordance with guidelines established by the Department.
10		(i) In counties with 3,000,000 or more inhabitants, for
11		taxable years 2010 through 2018, and beginning again in
12		taxable year 2024, each taxpayer who has been granted an
13		exemption under this Section must reapply on an annual basis.
14		If a reapplication is required, then the chief county
15		assessment officer shall mail the application to the taxpayer
16		at least 60 days prior to the last day of the application
17		period for the county.
18		For taxable years 2019 and thereafter through 2023, in
19		counties with 3,000,000 or more inhabitants, a taxpayer who
20		has been granted an exemption under this Section need not
21		reapply. However, if the property ceases to be qualified for
22		the exemption under this Section in any year for which a
23		reapplication is not required under this Section, then the
24		owner of record of the property shall notify the chief county
25		assessment officer that the property is no longer qualified.
26		In addition, for taxable years 2019 and thereafter through

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1		2023, the chief county assessment officer of a county with
2		3,000,000 or more inhabitants shall enter into an
3		intergovernmental agreement with the county clerk of that
4		county and the Department of Public Health, as well as any
5		other appropriate governmental agency, to obtain information
6		that documents the death of a taxpayer who has been granted an
7		exemption under this Section. Notwithstanding any other
8		provision of law, the county clerk and the Department of
9		Public Health shall provide that information to the chief
10		county assessment officer. The Department of Public Health
11		shall supply this information no less frequently than every
12		calendar quarter. Information concerning the death of a
13		taxpayer may be shared with the county treasurer. The chief
14		county assessment officer shall also enter into a data
15		exchange agreement with the Social Security Administration or
16		its agent to obtain access to the information regarding deaths
17		in possession of the Social Security Administration. The chief
18		county assessment officer shall, subject to the notice
19		requirements under subsection (m) of Section 9-275, terminate
20		the exemption under this Section if the information obtained
21		indicates that the property is no longer qualified for the
22		exemption. In counties with 3,000,000 or more inhabitants, the
23		assessor and the county clerk recorder of deeds shall
24		establish policies and practices for the regular exchange of
25		information for the purpose of alerting the assessor whenever
26		the transfer of ownership of any property receiving an

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1		exemption under this Section has occurred. When such a
2		transfer occurs, the assessor shall mail a notice to the new
3		owner of the property (i) informing the new owner that the
4		exemption will remain in place through the year of the
5		transfer, after which it will be canceled, and (ii) providing
6		information pertaining to the rules for reapplying for the
7		exemption if the owner qualifies. In counties with 3,000,000
8		or more inhabitants, the chief county assessment official
9		shall conduct, by no later than December 31 of the first year
10		of each reassessment cycle, as determined by Section 9-220, a
11		review audits of all exemptions granted under this Section for
12		the preceding reassessment cycle under this Section no later
13		than December 31, 2022 and no later than December 31, 2024. The
14		review audit shall be designed to ascertain whether any senior
15		homestead exemptions have been granted erroneously. If it is
16		determined that a senior homestead exemption has been
17		erroneously applied to a property, the chief county assessment
18		officer shall make use of the appropriate provisions of
19		Section 9-275 in relation to the property that received the
20		erroneous homestead exemption.
21		(j) In counties with less than 3,000,000 inhabitants, the
22		county board may by resolution provide that if a person has
23		been granted a homestead exemption under this Section, the
24		person qualifying need not reapply for the exemption. In
25		counties in which the county board passes such a resolution,
26		the chief county assessment official shall, prior to the

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1		submission of the final abstract for the first year of each
2		reassessment cycle, as determined by Section 9-215, review all
3		exemptions granted for the preceding reassessment cycle under
4		this Section. The review shall be designed to ascertain
5		whether any senior homestead exemptions have been granted
6		erroneously.
7		In counties with less than 3,000,000 inhabitants, if the
8		assessor or chief county assessment officer requires annual
9		application for verification of eligibility for an exemption
10		once granted under this Section, the application shall be
11		mailed to the taxpayer.
12		(l) The assessor or chief county assessment officer shall
13		notify each person who qualifies for an exemption under this
14		Section that the person may also qualify for deferral of real
15		estate taxes under the Senior Citizens Real Estate Tax
16		Deferral Act. The notice shall set forth the qualifications
17		needed for deferral of real estate taxes, the address and
18		telephone number of county collector, and a statement that
19		applications for deferral of real estate taxes may be obtained
20		from the county collector.
21		(m) Notwithstanding Sections 6 and 8 of the State Mandates
22		Act, no reimbursement by the State is required for the
23		implementation of any mandate created by this Section.
24		(Source: P.A. 101-453, eff. 8-23-19; 101-622, eff. 1-14-20;
25		102-895, eff. 5-23-22.)

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1		ARTICLE 140.
2		Section 140-5. The Property Tax Code is amended by
3		changing Sections 10-40 and 10-50 as follows:
4		(35 ILCS 200/10-40)
5		Sec. 10-40. Historic Residence Assessment Freeze Law;
6		definitions. This Section and Sections 10-45 through 10-85 may
7		be cited as the Historic Residence Assessment Freeze Law. As
8		used in this Section and Sections 10-45 through 10-85:
9		(a) "Director" means the Director of Historic
10		Preservation.
11		(b) "Approved county or municipal landmark ordinance"
12		means a county or municipal ordinance approved by the
13		Director.
14		(c) "Historic building" means an owner-occupied single
15		family residence or an owner-occupied multi-family
16		residence and the tract, lot or parcel upon which it is
17		located, or a building or buildings owned and operated as
18		a cooperative, if:
19		(1) individually listed on the National Register
20		of Historic Places or the Illinois Register of
21		Historic Places;
22		(2) individually designated pursuant to an
23		approved county or municipal landmark ordinance; or
24		(3) within a district listed on the National

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1		Register of Historic Places or designated pursuant to
2		an approved county or municipal landmark ordinance, if
3		the Director determines that the building is of
4		historic significance to the district in which it is
5		located.
6		Historic building does not mean an individual unit of a
7		cooperative.
8		(d) "Assessment officer" means the chief county
9		assessment officer.
10		(e) "Certificate of rehabilitation" means the
11		certificate issued by the Director upon the renovation,
12		restoration, preservation or rehabilitation of an historic
13		building under this Code.
14		(f) "Rehabilitation period" means the period of time
15		necessary to renovate, restore, preserve or rehabilitate
16		an historic building as determined by the Director.
17		(g) "Standards for rehabilitation" means the Secretary
18		of Interior's standards for rehabilitation as promulgated
19		by the U.S. Department of the Interior.
20		(h) "Fair cash value" means the fair cash value of the
21		historic building, as finally determined for that year by
22		the assessment officer, board of review, Property Tax
23		Appeal Board, or court on the basis of the assessment
24		officer's property record card, representing the value of
25		the property prior to the commencement of rehabilitation
26		without consideration of any reduction reflecting value

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1		during the rehabilitation work. The changes made to this
2		Section by this amendatory Act of the 103rd General
3		Assembly are declarative of existing law and shall not be
4		construed as a new enactment.
5		(i) "Base year valuation" means the fair cash value of
6		the historic building for the year in which the
7		rehabilitation period begins but prior to the commencement
8		of the rehabilitation and does not include any reduction
9		in value during the rehabilitation work.
10		(j) "Adjustment in value" means the difference for any
11		year between the then current fair cash value and the base
12		year valuation.
13		(k) "Eight-year valuation period" means the 8 years
14		from the date of the issuance of the certificate of
15		rehabilitation.
16		(l) "Adjustment valuation period" means the 4 years
17		following the 8 year valuation period.
18		(m) "Substantial rehabilitation" means interior or
19		exterior rehabilitation work that preserves the historic
20		building in a manner that significantly improves its
21		condition.
22		(n) "Approved local government" means a local
23		government that has been certified by the Director as:
24		(1) enforcing appropriate legislation for the
25		designation of historic buildings;
26		(2) having established an adequate and qualified

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1		historic review commission;
2		(3) maintaining a system for the survey and
3		inventory of historic properties;
4		(4) providing for adequate public participation in
5		the local historic preservation program; and
6		(5) maintaining a system for reviewing
7		applications under this Section in accordance with
8		rules and regulations promulgated by the Director.
9		(o) "Cooperative" means a building or buildings and
10		the tract, lot, or parcel on which the building or
11		buildings are located, if the building or buildings are
12		devoted to residential uses by the owners and fee title to
13		the land and building or buildings is owned by a
14		corporation or other legal entity in which the
15		shareholders or other co-owners each also have a long-term
16		proprietary lease or other long-term arrangement of
17		exclusive possession for a specific unit of occupancy
18		space located within the same building or buildings.
19		(p) "Owner", in the case of a cooperative, means the
20		Association.
21		(q) "Association", in the case of a cooperative, means
22		the entity responsible for the administration of a
23		cooperative, which entity may be incorporated or
24		unincorporated, profit or nonprofit.
25		(r) "Owner-occupied single family residence" means a
26		residence in which the title holder of record (i) holds

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1		fee simple ownership and (ii) occupies the property as
2		his, her, or their principal residence.
3		(s) "Owner-occupied multi-family residence" means
4		residential property comprised of not more than 6 living
5		units in which the title holder of record (i) holds fee
6		simple ownership and (ii) occupies one unit as his, her,
7		or their principal residence. The remaining units may be
8		leased.
9		The changes made to this Section by this amendatory Act of
10		the 91st General Assembly are declarative of existing law and
11		shall not be construed as a new enactment.
12		(Source: P.A. 90-114, eff. 1-1-98; 91-806, eff. 1-1-01.)
13		(35 ILCS 200/10-50)
14		Sec. 10-50. Valuation after 8 year valuation period.
15		(a) For the 4 years after the expiration of the 8-year
16		valuation period, the valuation for purposes of computing the
17		assessed valuation shall not exceed the following be as
18		follows:
19		For the first year, the base year valuation plus 25%
20		of the adjustment in value.
21		For the second year, the base year valuation plus 50%
22		of the adjustment in value.
23		For the third year, the base year valuation plus 75%
24		of the adjustment in value.
25		For the fourth year, the then current fair cash value.

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1		(b) If the current fair cash value during the adjustment
2		valuation period is less than the base year valuation with the
3		applicable adjustment, the assessment shall be based on the
4		current fair cash value. The changes made to this Section by
5		this amendatory Act of the 103rd General Assembly are
6		declarative of existing law and shall not be construed as a new
7		enactment.
8		(Source: P.A. 82-1023; 88-455.)
9		ARTICLE 145.
10		Section 145-5. The Property Tax Code is amended by
11		changing Section 15-40 as follows:
12		(35 ILCS 200/15-40)
13		Sec. 15-40. Religious purposes, orphanages, or school and
14		religious purposes.
15		(a) Property used exclusively for:
16		(1) religious purposes, or
17		(2) school and religious purposes, or
18		(3) orphanages
19		qualifies for exemption as long as it is not used with a view
20		to profit.
21		(b) Property that is owned by
22		(1) churches or
23		(2) religious institutions or

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1		(3) religious denominations
2		and that is used in conjunction therewith as housing
3		facilities provided for ministers (including bishops, district
4		superintendents and similar church officials whose ministerial
5		duties are not limited to a single congregation), their
6		spouses, children and domestic workers, performing the duties
7		of their vocation as ministers at such churches or religious
8		institutions or for such religious denominations, including
9		the convents and monasteries where persons engaged in
10		religious activities reside also qualifies for exemption.
11		A parsonage, convent or monastery or other housing
12		facility shall be considered under this Section to be
13		exclusively used for religious purposes when the persons who
14		perform religious related activities shall, as a condition of
15		their employment or association, reside in the facility.
16		(c) In Cook County, whenever any interest in a property
17		exempt under this Section is transferred, notice of that
18		transfer must be filed with the county clerk recorder. The
19		chief county assessment officer shall prepare and make
20		available a form notice for this purpose. Whenever a notice is
21		filed, the county clerk recorder shall transmit a copy of that
22		recorded notice to the chief county assessment officer within
23		14 days after receipt.
24		(Source: P.A. 92-333, eff. 8-10-01.)
25		ARTICLE 150.

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1		Section 150-1. Short title. This Act may be cited as the
2		Interchange Fee Prohibition Act. References in this Article to
3		"this Act" mean this Article.
4		Section 150-5. Definitions. As used in this Act:
5		"Acquirer bank" means a member of a payment card network
6		that contracts with a merchant for the settlement of
7		electronic payment transactions. An acquirer bank may contract
8		directly with merchants or indirectly through a processor to
9		process electronic payment transactions.
10		"Authorization" means the process through which a merchant
11		requests approval for an electronic payment transaction from
12		the issuer.
13		"Clearance" means the process of transmitting final
14		transaction data from a merchant to an issuer for posting to
15		the cardholder's account and the calculation of fees and
16		charges, including interchange fees, that apply to the issuer
17		and the merchant.
18		"Credit card" means a card, plate, coupon book, or other
19		credit device existing for the purpose of obtaining money,
20		property, labor, or services on credit.
21		"Debit card" means a card or other payment code or device
22		issued or approved for use through a payment card network to
23		debit an asset account, regardless of the purpose for which
24		the account is established, whether authorization is based on

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1		a signature, a personal identification number, or other means.
2		"Debit card" includes a general use prepaid card, as defined
3		in 15 U.S.C. 16931-1. "Debit card" does not include paper
4		checks.
5		"Electronic payment transaction" means a transaction in
6		which a person uses a debit card, a credit card, or other
7		payment code or device issued or approved through a payment
8		card network to debit a deposit account or use a line of
9		credit, whether authorization is based on a signature, a
10		personal identification number, or other means.
11		"Gratuity" means a voluntary monetary contribution to an
12		employee from a guest, patron, or customer in connection with
13		services rendered.
14		"Interchange fee" means a fee established, charged, or
15		received by a payment card network for the purpose of
16		compensating the issuer for its involvement in an electronic
17		payment transaction.
18		"Issuer" means a person issuing a debit card or credit
19		card or the issuer's agent.
20		"Merchant" means a person that collects and remits a tax.
21		"Payment card network" means an entity that:
22		(1) directly or through licensed members, processors,
23		or agents, provides the proprietary services,
24		infrastructure, and software to route information and data
25		for the purpose of conducting electronic payment
26		transaction authorization, clearance, and settlement; and

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1		(2) a merchant uses to accept as a form of payment a
2		brand of debit card, credit card, or other device that may
3		be used to carry out electronic payment transactions.
4		"Person" means any individual, firm, public or private
5		corporation, government, partnership, association, or any
6		other organization or entity.
7		"Processor" means an entity that facilitates, services,
8		processes, or manages the debit or credit authorization,
9		billing, transfer, payment procedures, or settlement with
10		respect to any electronic payment transaction.
11		"Settlement" means the process of transmitting sales
12		information to the issuing bank for collection and
13		reimbursement of funds to the merchant and calculating and
14		reporting the net transaction amount to the issuer and
15		merchant for an electronic payment transaction that is
16		cleared.
17		"Tax" means any use and occupation tax or excise tax
18		imposed by the State or a unit of local government in the
19		State.
20		"Tax documentation" means documentation sufficient for the
21		payment card network to determine the total amount of the
22		electronic payment transaction and the tax or gratuity amount
23		of the transaction. Tax documentation may be related to a
24		single electronic payment transaction or multiple electronic
25		payment transactions aggregated over a period of time.
26		Examples of tax documentation include, but are not limited to,

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1		invoices, receipts, journals, ledgers, and tax returns filed
2		with the Department of Revenue or local taxing authorities.
3		Section 150-10. Interchange fees on taxes prohibited.
4		(a) An issuer, a payment card network, an acquirer bank,
5		or a processor may not receive or charge a merchant any
6		interchange fee on the tax amount or gratuity of an electronic
7		payment transaction if the merchant informs the acquirer bank
8		or its designee of the tax or gratuity amount as part of the
9		authorization or settlement process for the electronic payment
10		transaction. The merchant must transmit the tax or gratuity
11		amount data as part of the authorization or settlement process
12		to avoid being charged interchange fees on the tax or gratuity
13		amount of an electronic payment transaction.
14		(b) A merchant that does not transmit the tax or gratuity
15		amount data in accordance with this Section may submit tax
16		documentation for the electronic payment transaction to the
17		acquirer bank or its designee no later than 180 days after the
18		date of the electronic payment transaction, and, within 30
19		days after the merchant submits the necessary tax
20		documentation, the issuer must credit to the merchant the
21		amount of interchange fees charged on the tax or gratuity
22		amount of the electronic payment transaction.
23		(c) This Section does not create liability for a payment
24		card network regarding the accuracy of the tax or gratuity
25		data reported by the merchant.

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1		(d) It shall be unlawful for an issuer, a payment card
2		network, an acquirer bank, or a processor to alter or
3		manipulate the computation and imposition of interchange fees
4		by increasing the rate or amount of the fees applicable to or
5		imposed upon the portion of a credit or debit card transaction
6		not attributable to taxes or other fees charged to the
7		retailer to circumvent the effect of this Section.
8		Section 150-15. Penalties.
9		(a) An issuer, a payment card network, an acquirer bank, a
10		processor, or other designated entity that has received the
11		tax or gratuity amount data and violates Section 150-10 is
12		subject to a civil penalty of $1,000 per electronic payment
13		transaction, and the issuer must refund the merchant the
14		interchange fee calculated on the tax or gratuity amount
15		relative to the electronic payment transaction.
16		(b) An entity, other than the merchant, involved in
17		facilitating or processing an electronic payment transaction,
18		including, but not limited to, an issuer, a payment card
19		network, an acquirer bank, a processor, or other designated
20		entity, may not distribute, exchange, transfer, disseminate,
21		or use the electronic payment transaction data except to
22		facilitate or process the electronic payment transaction or as
23		required by law. A violation of this subsection constitutes a
24		violation of the Consumer Fraud and Deceptive Business
25		Practices Act.

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1		Section 150-95. Severability. The provisions of this Act
2		are severable under Section 1.31 of the Statute on Statutes.
3		ARTICLE 155.
4		Section 155-5. The Property Tax Code is amended by
5		changing Sections 9-45 and 11-15 as follows:
6		(35 ILCS 200/9-45)
7		Sec. 9-45. Property index number system. The county clerk
8		in counties of 3,000,000 or more inhabitants and, subject to
9		the approval of the county board, the chief county assessment
10		officer or recorder, in counties of less than 3,000,000
11		inhabitants, may establish a property index number system
12		under which property may be listed for purposes of assessment,
13		collection of taxes or automation of the office of the
14		recorder. The system may be adopted in addition to, or instead
15		of, the method of listing by legal description as provided in
16		Section 9-40. The system shall describe property by township,
17		section, block, and parcel or lot, and may cross-reference the
18		street or post office address, if any, and street code number,
19		if any. The county clerk, county treasurer, chief county
20		assessment officer or recorder may establish and maintain
21		cross indexes of numbers assigned under the system with the
22		complete legal description of the properties to which the

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1		numbers relate. Index numbers shall be assigned by the county
2		clerk in counties of 3,000,000 or more inhabitants, and, at
3		the direction of the county board in counties with less than
4		3,000,000 inhabitants, shall be assigned by the chief county
5		assessment officer or recorder. Tax maps of the county clerk,
6		county treasurer or chief county assessment officer shall
7		carry those numbers. The indexes shall be open to public
8		inspection and be made available to the public. Any property
9		index number system established prior to the effective date of
10		this Code shall remain valid. However, in counties with less
11		than 3,000,000 inhabitants, the system may be transferred to
12		another authority upon the approval of the county board.
13		Any real property used for a power generating or
14		automotive manufacturing facility located within a county of
15		less than 1,000,000 inhabitants, as to which litigation with
16		respect to its assessed valuation is pending or was pending as
17		of January 1, 1993, may be the subject of a real property tax
18		assessment settlement agreement among the taxpayer and taxing
19		districts in which it is situated. In addition, any real
20		property that is located in a county with fewer than 1,000,000
21		inhabitants and (i) is used for natural gas extraction and
22		fractionation or olefin and polymer manufacturing or (ii) is
23		used for a petroleum refinery and (ii) located within a county
24		of less than 1,000,000 inhabitants may be the subject of a real
25		property tax assessment settlement agreement among the
26		taxpayer and taxing districts in which the property is

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1		situated if litigation is or was pending as to its assessed
2		valuation as of January 1, 2003 or thereafter. Other
3		appropriate authorities, which may include county and State
4		boards or officials, may also be parties to such agreements.
5		Such agreements may include the assessment of the facility or
6		property for any years in dispute as well as for up to 10 years
7		in the future. Such agreements may provide for the settlement
8		of issues relating to the assessed value of the facility and
9		may provide for related payments, refunds, claims, credits
10		against taxes and liabilities in respect to past and future
11		taxes of taxing districts, including any fund created under
12		Section 20-35 of this Act, all implementing the settlement
13		agreement. Any such agreement may provide that parties thereto
14		agree not to challenge assessments as provided in the
15		agreement. An agreement entered into on or after January 1,
16		1993 may provide for the classification of property that is
17		the subject of the agreement as real or personal during the
18		term of the agreement and thereafter. It may also provide that
19		taxing districts agree to reimburse the taxpayer for amounts
20		paid by the taxpayer in respect to taxes for the real property
21		which is the subject of the agreement to the extent levied by
22		those respective districts, over and above amounts which would
23		be due if the facility were to be assessed as provided in the
24		agreement. Such reimbursement may be provided in the agreement
25		to be made by credit against taxes of the taxpayer. No credits
26		shall be applied against taxes levied with respect to debt

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1		service or lease payments of a taxing district. No referendum
2		approval or appropriation shall be required for such an
3		agreement or such credits and any such obligation shall not
4		constitute indebtedness of the taxing district for purposes of
5		any statutory limitation. The county collector shall treat
6		credited amounts as if they had been received by the collector
7		as taxes paid by the taxpayer and as if remitted to the
8		district. A county treasurer who is a party to such an
9		agreement may agree to hold amounts paid in escrow as provided
10		in the agreement for possible use for paying taxes until
11		conditions of the agreement are met and then to apply these
12		amounts as provided in the agreement. No such settlement
13		agreement shall be effective unless it shall have been
14		approved by the court in which such litigation is pending. Any
15		such agreement which has been entered into prior to adoption
16		of this amendatory Act of 1988 and which is contingent upon
17		enactment of authorizing legislation shall be binding and
18		enforceable.
19		(Source: P.A. 96-609, eff. 8-24-09.)
20		(35 ILCS 200/11-15)
21		Sec. 11-15. Method of valuation for pollution control
22		facilities. To determine 33 1/3% of the fair cash value of any
23		certified pollution control facility facilities in assessing
24		those facilities, the Department shall determine take into
25		consideration the actual or probable net earnings attributable

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1		to the facilities in question, capitalized on the basis of
2		their productive earning value to their owner; the probable
3		net value that which could be realized by its their owner if
4		the facility facilities were removed and sold at a fair,
5		voluntary sale, giving due account to the expense of removal
6		and condition of the particular facility facilities in
7		question; and other information as the Department may consider
8		as bearing on the fair cash value of the facilities to their
9		owner, consistent with the principles set forth in this
10		Section. For the purposes of this Code, earnings shall be
11		attributed to a pollution control facility only to the extent
12		that its operation results in the production of a commercially
13		saleable by-product or increases the production or reduces the
14		production costs of the products or services otherwise sold by
15		the owner of such facility. The assessed value of the facility
16		shall be 33/1/3% of the fair cash value of the facility.
17		(Source: P.A. 83-121; 88-455.)
18		ARTICLE 160.
19		Section 160-5. The Illinois Gambling Act is amended by
20		changing Section 13 as follows:
21		(230 ILCS 10/13) (from Ch. 120, par. 2413)
22		Sec. 13. Wagering tax; rate; distribution.
23		(a) Until January 1, 1998, a tax is imposed on the adjusted

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1		gross receipts received from gambling games authorized under
2		this Act at the rate of 20%.
3		(a-1) From January 1, 1998 until July 1, 2002, a privilege
4		tax is imposed on persons engaged in the business of
5		conducting riverboat gambling operations, based on the
6		adjusted gross receipts received by a licensed owner from
7		gambling games authorized under this Act at the following
8		rates:
9		15% of annual adjusted gross receipts up to and
10		including $25,000,000;
11		20% of annual adjusted gross receipts in excess of
12		$25,000,000 but not exceeding $50,000,000;
13		25% of annual adjusted gross receipts in excess of
14		$50,000,000 but not exceeding $75,000,000;
15		30% of annual adjusted gross receipts in excess of
16		$75,000,000 but not exceeding $100,000,000;
17		35% of annual adjusted gross receipts in excess of
18		$100,000,000.
19		(a-2) From July 1, 2002 until July 1, 2003, a privilege tax
20		is imposed on persons engaged in the business of conducting
21		riverboat gambling operations, other than licensed managers
22		conducting riverboat gambling operations on behalf of the
23		State, based on the adjusted gross receipts received by a
24		licensed owner from gambling games authorized under this Act
25		at the following rates:
26		15% of annual adjusted gross receipts up to and

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1		including $25,000,000;
2		22.5% of annual adjusted gross receipts in excess of
3		$25,000,000 but not exceeding $50,000,000;
4		27.5% of annual adjusted gross receipts in excess of
5		$50,000,000 but not exceeding $75,000,000;
6		32.5% of annual adjusted gross receipts in excess of
7		$75,000,000 but not exceeding $100,000,000;
8		37.5% of annual adjusted gross receipts in excess of
9		$100,000,000 but not exceeding $150,000,000;
10		45% of annual adjusted gross receipts in excess of
11		$150,000,000 but not exceeding $200,000,000;
12		50% of annual adjusted gross receipts in excess of
13		$200,000,000.
14		(a-3) Beginning July 1, 2003, a privilege tax is imposed
15		on persons engaged in the business of conducting riverboat
16		gambling operations, other than licensed managers conducting
17		riverboat gambling operations on behalf of the State, based on
18		the adjusted gross receipts received by a licensed owner from
19		gambling games authorized under this Act at the following
20		rates:
21		15% of annual adjusted gross receipts up to and
22		including $25,000,000;
23		27.5% of annual adjusted gross receipts in excess of
24		$25,000,000 but not exceeding $37,500,000;
25		32.5% of annual adjusted gross receipts in excess of
26		$37,500,000 but not exceeding $50,000,000;

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1		37.5% of annual adjusted gross receipts in excess of
2		$50,000,000 but not exceeding $75,000,000;
3		45% of annual adjusted gross receipts in excess of
4		$75,000,000 but not exceeding $100,000,000;
5		50% of annual adjusted gross receipts in excess of
6		$100,000,000 but not exceeding $250,000,000;
7		70% of annual adjusted gross receipts in excess of
8		$250,000,000.
9		An amount equal to the amount of wagering taxes collected
10		under this subsection (a-3) that are in addition to the amount
11		of wagering taxes that would have been collected if the
12		wagering tax rates under subsection (a-2) were in effect shall
13		be paid into the Common School Fund.
14		The privilege tax imposed under this subsection (a-3)
15		shall no longer be imposed beginning on the earlier of (i) July
16		1, 2005; (ii) the first date after June 20, 2003 that riverboat
17		gambling operations are conducted pursuant to a dormant
18		license; or (iii) the first day that riverboat gambling
19		operations are conducted under the authority of an owners
20		license that is in addition to the 10 owners licenses
21		initially authorized under this Act. For the purposes of this
22		subsection (a-3), the term "dormant license" means an owners
23		license that is authorized by this Act under which no
24		riverboat gambling operations are being conducted on June 20,
25		2003.
26		(a-4) Beginning on the first day on which the tax imposed

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1		under subsection (a-3) is no longer imposed and ending upon
2		the imposition of the privilege tax under subsection (a-5) of
3		this Section, a privilege tax is imposed on persons engaged in
4		the business of conducting gambling operations, other than
5		licensed managers conducting riverboat gambling operations on
6		behalf of the State, based on the adjusted gross receipts
7		received by a licensed owner from gambling games authorized
8		under this Act at the following rates:
9		15% of annual adjusted gross receipts up to and
10		including $25,000,000;
11		22.5% of annual adjusted gross receipts in excess of
12		$25,000,000 but not exceeding $50,000,000;
13		27.5% of annual adjusted gross receipts in excess of
14		$50,000,000 but not exceeding $75,000,000;
15		32.5% of annual adjusted gross receipts in excess of
16		$75,000,000 but not exceeding $100,000,000;
17		37.5% of annual adjusted gross receipts in excess of
18		$100,000,000 but not exceeding $150,000,000;
19		45% of annual adjusted gross receipts in excess of
20		$150,000,000 but not exceeding $200,000,000;
21		50% of annual adjusted gross receipts in excess of
22		$200,000,000.
23		For the imposition of the privilege tax in this subsection
24		(a-4), amounts paid pursuant to item (1) of subsection (b) of
25		Section 56 of the Illinois Horse Racing Act of 1975 shall not
26		be included in the determination of adjusted gross receipts.

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1		(a-5)(1) Beginning on July 1, 2020, a privilege tax is
2		imposed on persons engaged in the business of conducting
3		gambling operations, other than the owners licensee under
4		paragraph (1) of subsection (e-5) of Section 7 and licensed
5		managers conducting riverboat gambling operations on behalf of
6		the State, based on the adjusted gross receipts received by
7		such licensee from the gambling games authorized under this
8		Act. The privilege tax for all gambling games other than table
9		games, including, but not limited to, slot machines, video
10		game of chance gambling, and electronic gambling games shall
11		be at the following rates:
12		15% of annual adjusted gross receipts up to and
13		including $25,000,000;
14		22.5% of annual adjusted gross receipts in excess of
15		$25,000,000 but not exceeding $50,000,000;
16		27.5% of annual adjusted gross receipts in excess of
17		$50,000,000 but not exceeding $75,000,000;
18		32.5% of annual adjusted gross receipts in excess of
19		$75,000,000 but not exceeding $100,000,000;
20		37.5% of annual adjusted gross receipts in excess of
21		$100,000,000 but not exceeding $150,000,000;
22		45% of annual adjusted gross receipts in excess of
23		$150,000,000 but not exceeding $200,000,000;
24		50% of annual adjusted gross receipts in excess of
25		$200,000,000.
26		The privilege tax for table games shall be at the

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1		following rates:
2		15% of annual adjusted gross receipts up to and
3		including $25,000,000;
4		20% of annual adjusted gross receipts in excess of
5		$25,000,000.
6		For the imposition of the privilege tax in this subsection
7		(a-5), amounts paid pursuant to item (1) of subsection (b) of
8		Section 56 of the Illinois Horse Racing Act of 1975 shall not
9		be included in the determination of adjusted gross receipts.
10		(2) Beginning on the first day that an owners licensee
11		under paragraph (1) of subsection (e-5) of Section 7 conducts
12		gambling operations, either in a temporary facility or a
13		permanent facility, a privilege tax is imposed on persons
14		engaged in the business of conducting gambling operations
15		under paragraph (1) of subsection (e-5) of Section 7, other
16		than licensed managers conducting riverboat gambling
17		operations on behalf of the State, based on the adjusted gross
18		receipts received by such licensee from the gambling games
19		authorized under this Act. The privilege tax for all gambling
20		games other than table games, including, but not limited to,
21		slot machines, video game of chance gambling, and electronic
22		gambling games shall be at the following rates:
23		12% of annual adjusted gross receipts up to and
24		including $25,000,000 to the State and 10.5% of annual
25		adjusted gross receipts up to and including $25,000,000 to
26		the City of Chicago;

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1		16% of annual adjusted gross receipts in excess of
2		$25,000,000 but not exceeding $50,000,000 to the State and
3		14% of annual adjusted gross receipts in excess of
4		$25,000,000 but not exceeding $50,000,000 to the City of
5		Chicago;
6		20.1% of annual adjusted gross receipts in excess of
7		$50,000,000 but not exceeding $75,000,000 to the State and
8		17.4% of annual adjusted gross receipts in excess of
9		$50,000,000 but not exceeding $75,000,000 to the City of
10		Chicago;
11		21.4% of annual adjusted gross receipts in excess of
12		$75,000,000 but not exceeding $100,000,000 to the State
13		and 18.6% of annual adjusted gross receipts in excess of
14		$75,000,000 but not exceeding $100,000,000 to the City of
15		Chicago;
16		22.7% of annual adjusted gross receipts in excess of
17		$100,000,000 but not exceeding $150,000,000 to the State
18		and 19.8% of annual adjusted gross receipts in excess of
19		$100,000,000 but not exceeding $150,000,000 to the City of
20		Chicago;
21		24.1% of annual adjusted gross receipts in excess of
22		$150,000,000 but not exceeding $225,000,000 to the State
23		and 20.9% of annual adjusted gross receipts in excess of
24		$150,000,000 but not exceeding $225,000,000 to the City of
25		Chicago;
26		26.8% of annual adjusted gross receipts in excess of

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1		$225,000,000 but not exceeding $1,000,000,000 to the State
2		and 23.2% of annual adjusted gross receipts in excess of
3		$225,000,000 but not exceeding $1,000,000,000 to the City
4		of Chicago;
5		40% of annual adjusted gross receipts in excess of
6		$1,000,000,000 to the State and 34.7% of annual gross
7		receipts in excess of $1,000,000,000 to the City of
8		Chicago.
9		The privilege tax for table games shall be at the
10		following rates:
11		8.1% of annual adjusted gross receipts up to and
12		including $25,000,000 to the State and 6.9% of annual
13		adjusted gross receipts up to and including $25,000,000 to
14		the City of Chicago;
15		10.7% of annual adjusted gross receipts in excess of
16		$25,000,000 but not exceeding $75,000,000 to the State and
17		9.3% of annual adjusted gross receipts in excess of
18		$25,000,000 but not exceeding $75,000,000 to the City of
19		Chicago;
20		11.2% of annual adjusted gross receipts in excess of
21		$75,000,000 but not exceeding $175,000,000 to the State
22		and 9.8% of annual adjusted gross receipts in excess of
23		$75,000,000 but not exceeding $175,000,000 to the City of
24		Chicago;
25		13.5% of annual adjusted gross receipts in excess of
26		$175,000,000 but not exceeding $225,000,000 to the State

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1		and 11.5% of annual adjusted gross receipts in excess of
2		$175,000,000 but not exceeding $225,000,000 to the City of
3		Chicago;
4		15.1% of annual adjusted gross receipts in excess of
5		$225,000,000 but not exceeding $275,000,000 to the State
6		and 12.9% of annual adjusted gross receipts in excess of
7		$225,000,000 but not exceeding $275,000,000 to the City of
8		Chicago;
9		16.2% of annual adjusted gross receipts in excess of
10		$275,000,000 but not exceeding $375,000,000 to the State
11		and 13.8% of annual adjusted gross receipts in excess of
12		$275,000,000 but not exceeding $375,000,000 to the City of
13		Chicago;
14		18.9% of annual adjusted gross receipts in excess of
15		$375,000,000 to the State and 16.1% of annual gross
16		receipts in excess of $375,000,000 to the City of Chicago.
17		For the imposition of the privilege tax in this subsection
18		(a-5), amounts paid pursuant to item (1) of subsection (b) of
19		Section 56 of the Illinois Horse Racing Act of 1975 shall not
20		be included in the determination of adjusted gross receipts.
21		(3) Notwithstanding the provisions of this subsection
22		(a-5), for the first 10 years that the privilege tax is imposed
23		under this subsection (a-5) or until the year preceding the
24		calendar year in which paragraph (4) becomes operative,
25		whichever occurs first, the privilege tax shall be imposed on
26		the modified annual adjusted gross receipts of a riverboat or

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1		casino conducting gambling operations in the City of East St.
2		Louis, unless:
3		(1) the riverboat or casino fails to employ at least
4		450 people, except no minimum employment shall be required
5		during 2020 and 2021 or during periods that the riverboat
6		or casino is closed on orders of State officials for
7		public health emergencies or other emergencies not caused
8		by the riverboat or casino;
9		(2) the riverboat or casino fails to maintain
10		operations in a manner consistent with this Act or is not a
11		viable riverboat or casino subject to the approval of the
12		Board; or
13		(3) the owners licensee is not an entity in which
14		employees participate in an employee stock ownership plan
15		or in which the owners licensee sponsors a 401(k)
16		retirement plan and makes a matching employer contribution
17		equal to at least one-quarter of the first 12% or one-half
18		of the first 6% of each participating employee's
19		contribution, not to exceed any limitations under federal
20		laws and regulations.
21		(4) Notwithstanding the provisions of this subsection
22		(a-5), for 10 calendar years beginning in the year that
23		gambling operations commence either in a temporary or
24		permanent facility at an organization gaming facility located
25		in the City of Collinsville if the facility commences
26		operations within 3 years of the effective date of the changes

HB4951 Enrolled - 1091 - LRB103 38094 HLH 68226 b
1		made to this Section by this amendatory Act of the 103rd
2		General Assembly, the privilege tax imposed under this
3		subsection (a-5) on a riverboat or casino conducting gambling
4		operations in the City of East St. Louis shall be reduced, if
5		applicable, by an amount equal to the difference in adjusted
6		gross receipts for the 2022 calendar year less the current
7		year's adjusted gross receipts, unless:
8		(A) the riverboat or casino fails to employ at least
9		350 people, except that no minimum employment shall be
10		required during periods that the riverboat or casino is
11		closed on orders of State officials for public health
12		emergencies or other emergencies not caused by the
13		riverboat or casino;
14		(B) the riverboat or casino fails to maintain
15		operations in a manner consistent with this Act or is not a
16		viable riverboat or casino subject to the approval of the
17		Board; or
18		(C) the riverboat or casino fails to submit audited
19		financial statements to the Board prepared by an
20		accounting firm that has been preapproved by the Board and
21		such statements were prepared in accordance with the
22		provisions of the Financial Accounting Standards Board
23		Accounting Standards Codification under nongovernmental
24		accounting principles generally accepted in the United
25		States.
26		As used in this subsection (a-5), "modified annual

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1		adjusted gross receipts" means:
2		(A) for calendar year 2020, the annual adjusted gross
3		receipts for the current year minus the difference between
4		an amount equal to the average annual adjusted gross
5		receipts from a riverboat or casino conducting gambling
6		operations in the City of East St. Louis for 2014, 2015,
7		2016, 2017, and 2018 and the annual adjusted gross
8		receipts for 2018;
9		(B) for calendar year 2021, the annual adjusted gross
10		receipts for the current year minus the difference between
11		an amount equal to the average annual adjusted gross
12		receipts from a riverboat or casino conducting gambling
13		operations in the City of East St. Louis for 2014, 2015,
14		2016, 2017, and 2018 and the annual adjusted gross
15		receipts for 2019; and
16		(C) for calendar years 2022 through 2029, the annual
17		adjusted gross receipts for the current year minus the
18		difference between an amount equal to the average annual
19		adjusted gross receipts from a riverboat or casino
20		conducting gambling operations in the City of East St.
21		Louis for 3 years preceding the current year and the
22		annual adjusted gross receipts for the immediately
23		preceding year.
24		(a-6) From June 28, 2019 (the effective date of Public Act
25		101-31) until June 30, 2023, an owners licensee that conducted
26		gambling operations prior to January 1, 2011 shall receive a

HB4951 Enrolled - 1093 - LRB103 38094 HLH 68226 b
1		dollar-for-dollar credit against the tax imposed under this
2		Section for any renovation or construction costs paid by the
3		owners licensee, but in no event shall the credit exceed
4		$2,000,000.
5		Additionally, from June 28, 2019 (the effective date of
6		Public Act 101-31) until December 31, 2024, an owners licensee
7		that (i) is located within 15 miles of the Missouri border, and
8		(ii) has at least 3 riverboats, casinos, or their equivalent
9		within a 45-mile radius, may be authorized to relocate to a new
10		location with the approval of both the unit of local
11		government designated as the home dock and the Board, so long
12		as the new location is within the same unit of local government
13		and no more than 3 miles away from its original location. Such
14		owners licensee shall receive a credit against the tax imposed
15		under this Section equal to 8% of the total project costs, as
16		approved by the Board, for any renovation or construction
17		costs paid by the owners licensee for the construction of the
18		new facility, provided that the new facility is operational by
19		July 1, 2024. In determining whether or not to approve a
20		relocation, the Board must consider the extent to which the
21		relocation will diminish the gaming revenues received by other
22		Illinois gaming facilities.
23		(a-7) Beginning in the initial adjustment year and through
24		the final adjustment year, if the total obligation imposed
25		pursuant to either subsection (a-5) or (a-6) will result in an
26		owners licensee receiving less after-tax adjusted gross

HB4951 Enrolled - 1094 - LRB103 38094 HLH 68226 b
1		receipts than it received in calendar year 2018, then the
2		total amount of privilege taxes that the owners licensee is
3		required to pay for that calendar year shall be reduced to the
4		extent necessary so that the after-tax adjusted gross receipts
5		in that calendar year equals the after-tax adjusted gross
6		receipts in calendar year 2018, but the privilege tax
7		reduction shall not exceed the annual adjustment cap. If
8		pursuant to this subsection (a-7), the total obligation
9		imposed pursuant to either subsection (a-5) or (a-6) shall be
10		reduced, then the owners licensee shall not receive a refund
11		from the State at the end of the subject calendar year but
12		instead shall be able to apply that amount as a credit against
13		any payments it owes to the State in the following calendar
14		year to satisfy its total obligation under either subsection
15		(a-5) or (a-6). The credit for the final adjustment year shall
16		occur in the calendar year following the final adjustment
17		year.
18		If an owners licensee that conducted gambling operations
19		prior to January 1, 2019 expands its riverboat or casino,
20		including, but not limited to, with respect to its gaming
21		floor, additional non-gaming amenities such as restaurants,
22		bars, and hotels and other additional facilities, and incurs
23		construction and other costs related to such expansion from
24		June 28, 2019 (the effective date of Public Act 101-31) until
25		June 28, 2029 June 28, 2024 (the 5th anniversary of the
26		effective date of Public Act 101-31), then for each

HB4951 Enrolled - 1095 - LRB103 38094 HLH 68226 b
1		$15,000,000 spent for any such construction or other costs
2		related to expansion paid by the owners licensee, the final
3		adjustment year shall be extended by one year and the annual
4		adjustment cap shall increase by 0.2% of adjusted gross
5		receipts during each calendar year until and including the
6		final adjustment year. No further modifications to the final
7		adjustment year or annual adjustment cap shall be made after
8		$75,000,000 is incurred in construction or other costs related
9		to expansion so that the final adjustment year shall not
10		extend beyond the 9th calendar year after the initial
11		adjustment year, not including the initial adjustment year,
12		and the annual adjustment cap shall not exceed 4% of adjusted
13		gross receipts in a particular calendar year. Construction and
14		other costs related to expansion shall include all project
15		related costs, including, but not limited to, all hard and
16		soft costs, financing costs, on or off-site ground, road or
17		utility work, cost of gaming equipment and all other personal
18		property, initial fees assessed for each incremental gaming
19		position, and the cost of incremental land acquired for such
20		expansion. Soft costs shall include, but not be limited to,
21		legal fees, architect, engineering and design costs, other
22		consultant costs, insurance cost, permitting costs, and
23		pre-opening costs related to the expansion, including, but not
24		limited to, any of the following: marketing, real estate
25		taxes, personnel, training, travel and out-of-pocket expenses,
26		supply, inventory, and other costs, and any other project

HB4951 Enrolled - 1096 - LRB103 38094 HLH 68226 b
1		related soft costs.
2		To be eligible for the tax credits in subsection (a-6),
3		all construction contracts shall include a requirement that
4		the contractor enter into a project labor agreement with the
5		building and construction trades council with geographic
6		jurisdiction of the location of the proposed gaming facility.
7		Notwithstanding any other provision of this subsection
8		(a-7), this subsection (a-7) does not apply to an owners
9		licensee unless such owners licensee spends at least
10		$15,000,000 on construction and other costs related to its
11		expansion, excluding the initial fees assessed for each
12		incremental gaming position.
13		This subsection (a-7) does not apply to owners licensees
14		authorized pursuant to subsection (e-5) of Section 7 of this
15		Act.
16		For purposes of this subsection (a-7):
17		"Building and construction trades council" means any
18		organization representing multiple construction entities that
19		are monitoring or attentive to compliance with public or
20		workers' safety laws, wage and hour requirements, or other
21		statutory requirements or that are making or maintaining
22		collective bargaining agreements.
23		"Initial adjustment year" means the year commencing on
24		January 1 of the calendar year immediately following the
25		earlier of the following:
26		(1) the commencement of gambling operations, either in

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1		a temporary or permanent facility, with respect to the
2		owners license authorized under paragraph (1) of
3		subsection (e-5) of Section 7 of this Act; or
4		(2) June 28, 2021 (24 months after the effective date
5		of Public Act 101-31);
6		provided the initial adjustment year shall not commence
7		earlier than June 28, 2020 (12 months after the effective date
8		of Public Act 101-31).
9		"Final adjustment year" means the 2nd calendar year after
10		the initial adjustment year, not including the initial
11		adjustment year, and as may be extended further as described
12		in this subsection (a-7).
13		"Annual adjustment cap" means 3% of adjusted gross
14		receipts in a particular calendar year, and as may be
15		increased further as otherwise described in this subsection
16		(a-7).
17		(a-8) Riverboat gambling operations conducted by a
18		licensed manager on behalf of the State are not subject to the
19		tax imposed under this Section.
20		(a-9) Beginning on January 1, 2020, the calculation of
21		gross receipts or adjusted gross receipts, for the purposes of
22		this Section, for a riverboat, a casino, or an organization
23		gaming facility shall not include the dollar amount of
24		non-cashable vouchers, coupons, and electronic promotions
25		redeemed by wagerers upon the riverboat, in the casino, or in
26		the organization gaming facility up to and including an amount

HB4951 Enrolled - 1098 - LRB103 38094 HLH 68226 b
1		not to exceed 20% of a riverboat's, a casino's, or an
2		organization gaming facility's adjusted gross receipts.
3		The Illinois Gaming Board shall submit to the General
4		Assembly a comprehensive report no later than March 31, 2023
5		detailing, at a minimum, the effect of removing non-cashable
6		vouchers, coupons, and electronic promotions from this
7		calculation on net gaming revenues to the State in calendar
8		years 2020 through 2022, the increase or reduction in wagerers
9		as a result of removing non-cashable vouchers, coupons, and
10		electronic promotions from this calculation, the effect of the
11		tax rates in subsection (a-5) on net gaming revenues to this
12		State, and proposed modifications to the calculation.
13		(a-10) The taxes imposed by this Section shall be paid by
14		the licensed owner or the organization gaming licensee to the
15		Board not later than 5:00 o'clock p.m. of the day after the day
16		when the wagers were made.
17		(a-15) If the privilege tax imposed under subsection (a-3)
18		is no longer imposed pursuant to item (i) of the last paragraph
19		of subsection (a-3), then by June 15 of each year, each owners
20		licensee, other than an owners licensee that admitted
21		1,000,000 persons or fewer in calendar year 2004, must, in
22		addition to the payment of all amounts otherwise due under
23		this Section, pay to the Board a reconciliation payment in the
24		amount, if any, by which the licensed owner's base amount
25		exceeds the amount of net privilege tax paid by the licensed
26		owner to the Board in the then current State fiscal year. A

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1		licensed owner's net privilege tax obligation due for the
2		balance of the State fiscal year shall be reduced up to the
3		total of the amount paid by the licensed owner in its June 15
4		reconciliation payment. The obligation imposed by this
5		subsection (a-15) is binding on any person, firm, corporation,
6		or other entity that acquires an ownership interest in any
7		such owners license. The obligation imposed under this
8		subsection (a-15) terminates on the earliest of: (i) July 1,
9		2007, (ii) the first day after August 23, 2005 (the effective
10		date of Public Act 94-673) that riverboat gambling operations
11		are conducted pursuant to a dormant license, (iii) the first
12		day that riverboat gambling operations are conducted under the
13		authority of an owners license that is in addition to the 10
14		owners licenses initially authorized under this Act, or (iv)
15		the first day that a licensee under the Illinois Horse Racing
16		Act of 1975 conducts gaming operations with slot machines or
17		other electronic gaming devices. The Board must reduce the
18		obligation imposed under this subsection (a-15) by an amount
19		the Board deems reasonable for any of the following reasons:
20		(A) an act or acts of God, (B) an act of bioterrorism or
21		terrorism or a bioterrorism or terrorism threat that was
22		investigated by a law enforcement agency, or (C) a condition
23		beyond the control of the owners licensee that does not result
24		from any act or omission by the owners licensee or any of its
25		agents and that poses a hazardous threat to the health and
26		safety of patrons. If an owners licensee pays an amount in

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1		excess of its liability under this Section, the Board shall
2		apply the overpayment to future payments required under this
3		Section.
4		For purposes of this subsection (a-15):
5		"Act of God" means an incident caused by the operation of
6		an extraordinary force that cannot be foreseen, that cannot be
7		avoided by the exercise of due care, and for which no person
8		can be held liable.
9		"Base amount" means the following:
10		For a riverboat in Alton, $31,000,000.
11		For a riverboat in East Peoria, $43,000,000.
12		For the Empress riverboat in Joliet, $86,000,000.
13		For a riverboat in Metropolis, $45,000,000.
14		For the Harrah's riverboat in Joliet, $114,000,000.
15		For a riverboat in Aurora, $86,000,000.
16		For a riverboat in East St. Louis, $48,500,000.
17		For a riverboat in Elgin, $198,000,000.
18		"Dormant license" has the meaning ascribed to it in
19		subsection (a-3).
20		"Net privilege tax" means all privilege taxes paid by a
21		licensed owner to the Board under this Section, less all
22		payments made from the State Gaming Fund pursuant to
23		subsection (b) of this Section.
24		The changes made to this subsection (a-15) by Public Act
25		94-839 are intended to restate and clarify the intent of
26		Public Act 94-673 with respect to the amount of the payments

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1		required to be made under this subsection by an owners
2		licensee to the Board.
3		(b) From the tax revenue from riverboat or casino gambling
4		deposited in the State Gaming Fund under this Section, an
5		amount equal to 5% of adjusted gross receipts generated by a
6		riverboat or a casino, other than a riverboat or casino
7		designated in paragraph (1), (3), or (4) of subsection (e-5)
8		of Section 7, shall be paid monthly, subject to appropriation
9		by the General Assembly, to the unit of local government in
10		which the casino is located or that is designated as the home
11		dock of the riverboat. Notwithstanding anything to the
12		contrary, beginning on the first day that an owners licensee
13		under paragraph (1), (2), (3), (4), (5), or (6) of subsection
14		(e-5) of Section 7 conducts gambling operations, either in a
15		temporary facility or a permanent facility, and for 2 years
16		thereafter, a unit of local government designated as the home
17		dock of a riverboat whose license was issued before January 1,
18		2019, other than a riverboat conducting gambling operations in
19		the City of East St. Louis, shall not receive less under this
20		subsection (b) than the amount the unit of local government
21		received under this subsection (b) in calendar year 2018.
22		Notwithstanding anything to the contrary and because the City
23		of East St. Louis is a financially distressed city, beginning
24		on the first day that an owners licensee under paragraph (1),
25		(2), (3), (4), (5), or (6) of subsection (e-5) of Section 7
26		conducts gambling operations, either in a temporary facility

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1		or a permanent facility, and for 10 years thereafter, a unit of
2		local government designated as the home dock of a riverboat
3		conducting gambling operations in the City of East St. Louis
4		shall not receive less under this subsection (b) than the
5		amount the unit of local government received under this
6		subsection (b) in calendar year 2018.
7		From the tax revenue deposited in the State Gaming Fund
8		pursuant to riverboat or casino gambling operations conducted
9		by a licensed manager on behalf of the State, an amount equal
10		to 5% of adjusted gross receipts generated pursuant to those
11		riverboat or casino gambling operations shall be paid monthly,
12		subject to appropriation by the General Assembly, to the unit
13		of local government that is designated as the home dock of the
14		riverboat upon which those riverboat gambling operations are
15		conducted or in which the casino is located.
16		From the tax revenue from riverboat or casino gambling
17		deposited in the State Gaming Fund under this Section, an
18		amount equal to 5% of the adjusted gross receipts generated by
19		a riverboat designated in paragraph (3) of subsection (e-5) of
20		Section 7 shall be divided and remitted monthly, subject to
21		appropriation, as follows: 70% to Waukegan, 10% to Park City,
22		15% to North Chicago, and 5% to Lake County.
23		From the tax revenue from riverboat or casino gambling
24		deposited in the State Gaming Fund under this Section, an
25		amount equal to 5% of the adjusted gross receipts generated by
26		a riverboat designated in paragraph (4) of subsection (e-5) of

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1		Section 7 shall be remitted monthly, subject to appropriation,
2		as follows: 70% to the City of Rockford, 5% to the City of
3		Loves Park, 5% to the Village of Machesney, and 20% to
4		Winnebago County.
5		From the tax revenue from riverboat or casino gambling
6		deposited in the State Gaming Fund under this Section, an
7		amount equal to 5% of the adjusted gross receipts generated by
8		a riverboat designated in paragraph (5) of subsection (e-5) of
9		Section 7 shall be remitted monthly, subject to appropriation,
10		as follows: 2% to the unit of local government in which the
11		riverboat or casino is located, and 3% shall be distributed:
12		(A) in accordance with a regional capital development plan
13		entered into by the following communities: Village of Beecher,
14		City of Blue Island, Village of Burnham, City of Calumet City,
15		Village of Calumet Park, City of Chicago Heights, City of
16		Country Club Hills, Village of Crestwood, Village of Crete,
17		Village of Dixmoor, Village of Dolton, Village of East Hazel
18		Crest, Village of Flossmoor, Village of Ford Heights, Village
19		of Glenwood, City of Harvey, Village of Hazel Crest, Village
20		of Homewood, Village of Lansing, Village of Lynwood, City of
21		Markham, Village of Matteson, Village of Midlothian, Village
22		of Monee, City of Oak Forest, Village of Olympia Fields,
23		Village of Orland Hills, Village of Orland Park, City of Palos
24		Heights, Village of Park Forest, Village of Phoenix, Village
25		of Posen, Village of Richton Park, Village of Riverdale,
26		Village of Robbins, Village of Sauk Village, Village of South

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1		Chicago Heights, Village of South Holland, Village of Steger,
2		Village of Thornton, Village of Tinley Park, Village of
3		University Park, and Village of Worth; or (B) if no regional
4		capital development plan exists, equally among the communities
5		listed in item (A) to be used for capital expenditures or
6		public pension payments, or both.
7		Units of local government may refund any portion of the
8		payment that they receive pursuant to this subsection (b) to
9		the riverboat or casino.
10		(b-4) Beginning on the first day a licensee under
11		subsection (e-5) of Section 7 conducts gambling operations or
12		30 days after the effective date of this amendatory Act of the
13		103rd General Assembly, whichever is sooner, either in a
14		temporary facility or a permanent facility, and ending on July
15		31, 2042, from the tax revenue deposited in the State Gaming
16		Fund under this Section, $5,000,000 shall be paid annually,
17		subject to appropriation, to the host municipality of that
18		owners licensee of a license issued or re-issued pursuant to
19		Section 7.1 of this Act before January 1, 2012. Payments
20		received by the host municipality pursuant to this subsection
21		(b-4) may not be shared with any other unit of local
22		government.
23		(b-5) Beginning on June 28, 2019 (the effective date of
24		Public Act 101-31), from the tax revenue deposited in the
25		State Gaming Fund under this Section, an amount equal to 3% of
26		adjusted gross receipts generated by each organization gaming

HB4951 Enrolled - 1105 - LRB103 38094 HLH 68226 b
1		facility located outside Madison County shall be paid monthly,
2		subject to appropriation by the General Assembly, to a
3		municipality other than the Village of Stickney in which each
4		organization gaming facility is located or, if the
5		organization gaming facility is not located within a
6		municipality, to the county in which the organization gaming
7		facility is located, except as otherwise provided in this
8		Section. From the tax revenue deposited in the State Gaming
9		Fund under this Section, an amount equal to 3% of adjusted
10		gross receipts generated by an organization gaming facility
11		located in the Village of Stickney shall be paid monthly,
12		subject to appropriation by the General Assembly, as follows:
13		25% to the Village of Stickney, 5% to the City of Berwyn, 50%
14		to the Town of Cicero, and 20% to the Stickney Public Health
15		District.
16		From the tax revenue deposited in the State Gaming Fund
17		under this Section, an amount equal to 5% of adjusted gross
18		receipts generated by an organization gaming facility located
19		in the City of Collinsville shall be paid monthly, subject to
20		appropriation by the General Assembly, as follows: 30% to the
21		City of Alton, 30% to the City of East St. Louis, and 40% to
22		the City of Collinsville.
23		Municipalities and counties may refund any portion of the
24		payment that they receive pursuant to this subsection (b-5) to
25		the organization gaming facility.
26		(b-6) Beginning on June 28, 2019 (the effective date of

HB4951 Enrolled - 1106 - LRB103 38094 HLH 68226 b
1		Public Act 101-31), from the tax revenue deposited in the
2		State Gaming Fund under this Section, an amount equal to 2% of
3		adjusted gross receipts generated by an organization gaming
4		facility located outside Madison County shall be paid monthly,
5		subject to appropriation by the General Assembly, to the
6		county in which the organization gaming facility is located
7		for the purposes of its criminal justice system or health care
8		system.
9		Counties may refund any portion of the payment that they
10		receive pursuant to this subsection (b-6) to the organization
11		gaming facility.
12		(b-7) From the tax revenue from the organization gaming
13		licensee located in one of the following townships of Cook
14		County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or
15		Worth, an amount equal to 5% of the adjusted gross receipts
16		generated by that organization gaming licensee shall be
17		remitted monthly, subject to appropriation, as follows: 2% to
18		the unit of local government in which the organization gaming
19		licensee is located, and 3% shall be distributed: (A) in
20		accordance with a regional capital development plan entered
21		into by the following communities: Village of Beecher, City of
22		Blue Island, Village of Burnham, City of Calumet City, Village
23		of Calumet Park, City of Chicago Heights, City of Country Club
24		Hills, Village of Crestwood, Village of Crete, Village of
25		Dixmoor, Village of Dolton, Village of East Hazel Crest,
26		Village of Flossmoor, Village of Ford Heights, Village of

HB4951 Enrolled - 1107 - LRB103 38094 HLH 68226 b
1		Glenwood, City of Harvey, Village of Hazel Crest, Village of
2		Homewood, Village of Lansing, Village of Lynwood, City of
3		Markham, Village of Matteson, Village of Midlothian, Village
4		of Monee, City of Oak Forest, Village of Olympia Fields,
5		Village of Orland Hills, Village of Orland Park, City of Palos
6		Heights, Village of Park Forest, Village of Phoenix, Village
7		of Posen, Village of Richton Park, Village of Riverdale,
8		Village of Robbins, Village of Sauk Village, Village of South
9		Chicago Heights, Village of South Holland, Village of Steger,
10		Village of Thornton, Village of Tinley Park, Village of
11		University Park, and Village of Worth; or (B) if no regional
12		capital development plan exists, equally among the communities
13		listed in item (A) to be used for capital expenditures or
14		public pension payments, or both.
15		(b-8) In lieu of the payments under subsection (b) of this
16		Section, from the tax revenue deposited in the State Gaming
17		Fund pursuant to riverboat or casino gambling operations
18		conducted by an owners licensee under paragraph (1) of
19		subsection (e-5) of Section 7, an amount equal to the tax
20		revenue generated from the privilege tax imposed by paragraph
21		(2) of subsection (a-5) that is to be paid to the City of
22		Chicago shall be paid monthly, subject to appropriation by the
23		General Assembly, as follows: (1) an amount equal to 0.5% of
24		the annual adjusted gross receipts generated by the owners
25		licensee under paragraph (1) of subsection (e-5) of Section 7
26		to the home rule county in which the owners licensee is located

HB4951 Enrolled - 1108 - LRB103 38094 HLH 68226 b
1		for the purpose of enhancing the county's criminal justice
2		system; and (2) the balance to the City of Chicago and shall be
3		expended or obligated by the City of Chicago for pension
4		payments in accordance with Public Act 99-506.
5		(c) Appropriations, as approved by the General Assembly,
6		may be made from the State Gaming Fund to the Board (i) for the
7		administration and enforcement of this Act and the Video
8		Gaming Act, (ii) for distribution to the Illinois State Police
9		and to the Department of Revenue for the enforcement of this
10		Act and the Video Gaming Act, and (iii) to the Department of
11		Human Services for the administration of programs to treat
12		problem gambling, including problem gambling from sports
13		wagering. The Board's annual appropriations request must
14		separately state its funding needs for the regulation of
15		gaming authorized under Section 7.7, riverboat gaming, casino
16		gaming, video gaming, and sports wagering.
17		(c-2) An amount equal to 2% of the adjusted gross receipts
18		generated by an organization gaming facility located within a
19		home rule county with a population of over 3,000,000
20		inhabitants shall be paid, subject to appropriation from the
21		General Assembly, from the State Gaming Fund to the home rule
22		county in which the organization gaming licensee is located
23		for the purpose of enhancing the county's criminal justice
24		system.
25		(c-3) Appropriations, as approved by the General Assembly,
26		may be made from the tax revenue deposited into the State

HB4951 Enrolled - 1109 - LRB103 38094 HLH 68226 b
1		Gaming Fund from organization gaming licensees pursuant to
2		this Section for the administration and enforcement of this
3		Act.
4		(c-4) After payments required under subsections (b),
5		(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from
6		the tax revenue from organization gaming licensees deposited
7		into the State Gaming Fund under this Section, all remaining
8		amounts from organization gaming licensees shall be
9		transferred into the Capital Projects Fund.
10		(c-5) (Blank).
11		(c-10) Each year the General Assembly shall appropriate
12		from the General Revenue Fund to the Education Assistance Fund
13		an amount equal to the amount paid into the Horse Racing Equity
14		Fund pursuant to subsection (c-5) in the prior calendar year.
15		(c-15) After the payments required under subsections (b),
16		(c), and (c-5) have been made, an amount equal to 2% of the
17		adjusted gross receipts of (1) an owners licensee that
18		relocates pursuant to Section 11.2, (2) an owners licensee
19		conducting riverboat gambling operations pursuant to an owners
20		license that is initially issued after June 25, 1999, or (3)
21		the first riverboat gambling operations conducted by a
22		licensed manager on behalf of the State under Section 7.3,
23		whichever comes first, shall be paid, subject to appropriation
24		from the General Assembly, from the State Gaming Fund to each
25		home rule county with a population of over 3,000,000
26		inhabitants for the purpose of enhancing the county's criminal

HB4951 Enrolled - 1110 - LRB103 38094 HLH 68226 b
1		justice system.
2		(c-20) Each year the General Assembly shall appropriate
3		from the General Revenue Fund to the Education Assistance Fund
4		an amount equal to the amount paid to each home rule county
5		with a population of over 3,000,000 inhabitants pursuant to
6		subsection (c-15) in the prior calendar year.
7		(c-21) After the payments required under subsections (b),
8		(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have
9		been made, an amount equal to 0.5% of the adjusted gross
10		receipts generated by the owners licensee under paragraph (1)
11		of subsection (e-5) of Section 7 shall be paid monthly,
12		subject to appropriation from the General Assembly, from the
13		State Gaming Fund to the home rule county in which the owners
14		licensee is located for the purpose of enhancing the county's
15		criminal justice system.
16		(c-22) After the payments required under subsections (b),
17		(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and
18		(c-21) have been made, an amount equal to 2% of the adjusted
19		gross receipts generated by the owners licensee under
20		paragraph (5) of subsection (e-5) of Section 7 shall be paid,
21		subject to appropriation from the General Assembly, from the
22		State Gaming Fund to the home rule county in which the owners
23		licensee is located for the purpose of enhancing the county's
24		criminal justice system.
25		(c-25) From July 1, 2013 and each July 1 thereafter
26		through July 1, 2019, $1,600,000 shall be transferred from the

HB4951 Enrolled - 1111 - LRB103 38094 HLH 68226 b
1		State Gaming Fund to the Chicago State University Education
2		Improvement Fund.
3		On July 1, 2020 and each July 1 thereafter, $3,000,000
4		shall be transferred from the State Gaming Fund to the Chicago
5		State University Education Improvement Fund.
6		(c-30) On July 1, 2013 or as soon as possible thereafter,
7		$92,000,000 shall be transferred from the State Gaming Fund to
8		the School Infrastructure Fund and $23,000,000 shall be
9		transferred from the State Gaming Fund to the Horse Racing
10		Equity Fund.
11		(c-35) Beginning on July 1, 2013, in addition to any
12		amount transferred under subsection (c-30) of this Section,
13		$5,530,000 shall be transferred monthly from the State Gaming
14		Fund to the School Infrastructure Fund.
15		(d) From time to time, through June 30, 2021, the Board
16		shall transfer the remainder of the funds generated by this
17		Act into the Education Assistance Fund.
18		(d-5) Beginning on July 1, 2021, on the last day of each
19		month, or as soon thereafter as possible, after all the
20		required expenditures, distributions, and transfers have been
21		made from the State Gaming Fund for the month pursuant to
22		subsections (b) through (c-35), at the direction of the Board,
23		the Comptroller shall direct and the Treasurer shall transfer
24		$22,500,000, along with any deficiencies in such amounts from
25		prior months in the same fiscal year, from the State Gaming
26		Fund to the Education Assistance Fund; then, at the direction

HB4951 Enrolled - 1112 - LRB103 38094 HLH 68226 b
1		of the Board, the Comptroller shall direct and the Treasurer
2		shall transfer the remainder of the funds generated by this
3		Act, if any, from the State Gaming Fund to the Capital Projects
4		Fund.
5		(e) Nothing in this Act shall prohibit the unit of local
6		government designated as the home dock of the riverboat from
7		entering into agreements with other units of local government
8		in this State or in other states to share its portion of the
9		tax revenue.
10		(f) To the extent practicable, the Board shall administer
11		and collect the wagering taxes imposed by this Section in a
12		manner consistent with the provisions of Sections 4, 5, 5a,
13		5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of
14		the Retailers' Occupation Tax Act and Section 3-7 of the
15		Uniform Penalty and Interest Act.
16		(Source: P.A. 102-16, eff. 6-17-21; 102-538, eff. 8-20-21;
17		102-689, eff. 12-17-21; 102-699, eff. 4-19-22; 103-8, eff.
18		6-7-23; 103-574, eff. 12-8-23.)
19		ARTICLE 165.
20		Section 165-5. The Illinois Local Library Act is amended
21		by changing Section 4-9 as follows:
22		(75 ILCS 5/4-9) (from Ch. 81, par. 4-9)
23		Sec. 4-9. In townships and in cities, villages and

HB4951 Enrolled - 1113 - LRB103 38094 HLH 68226 b
1		incorporated towns having a population of 500,000 or less, the
2		board of trustees shall require the treasurer of such board or
3		such other person as may be designated as the custodian of the
4		moneys paid over to such board to give a bond to be approved by
5		such board and in such amount, not less than 10% 50% of the
6		total funds received by the library in the last fiscal year,
7		conditioned that he will safely keep and pay over upon the
8		order of such board all funds received and held by him for such
9		board of trustees. For a library in a city, village,
10		incorporated town or township, the board of library trustees
11		may designate the treasurer of the corporate authority, or the
12		supervisor in the case of a township, as the custodian of the
13		library fund, and the bond given by the treasurer or the
14		supervisor shall satisfy the bond requirements of this section
15		when properly endorsed. The cost of any surety bond shall be
16		borne by the library. As an alternative to a personal bond on
17		the treasurer or custodian of funds, the board of trustees may
18		require the treasurer or custodian to secure for the library
19		an insurance policy or other insurance instrument that
20		provides the library with coverage for negligent or
21		intentional acts by library officials and employees that could
22		result in the loss of library funds. The coverage shall be in
23		an amount at least equal to 10% 50% of the average amount of
24		the library's operating fund from the prior 3 fiscal years.
25		The coverage shall be placed with an insurer approved by the
26		board. The cost of any such coverage shall be borne by the

HB4951 Enrolled - 1114 - LRB103 38094 HLH 68226 b
1		library. The library shall provide the Illinois State Library
2		a copy of the library's certificate of insurance at the time
3		the library's annual report is filed.
4		(Source: P.A. 97-101, eff. 1-1-12.)
5		Section 165-10. The Illinois Library System Act is amended
6		by changing Section 5 as follows:
7		(75 ILCS 10/5) (from Ch. 81, par. 115)
8		Sec. 5. Each library system created as provided in Section
9		4 of this Act shall be governed by a board of directors
10		numbering at least 5 and no more than 15 persons, except as
11		required by Section 6 for library systems in cities with a
12		population of 500,000 or more. The board shall be
13		representative of the variety of library interests in the
14		system, and at least a majority shall be elected or selected
15		from the governing boards of the member public libraries, with
16		not more than one director representing a single member
17		library. For library systems as defined in subparagraph (3) of
18		the definition of "library system" in Section 2, the board
19		members shall be representative of the types of libraries that
20		library system serves. The number of directors, the manner of
21		election or selection, the term of office and the provision
22		for filling vacancies shall be determined by the system
23		governing board except that all board members must be eligible
24		electors in the geographical area of the system. No director

HB4951 Enrolled - 1115 - LRB103 38094 HLH 68226 b
1		of any library system, however, shall be permitted to serve
2		for more than a total of 6 years unless 2 years have elapsed
3		since his sixth year of service.
4		The board of directors shall elect a president, secretary
5		and treasurer. Before entering upon his duties, the treasurer
6		shall be required to give a bond in an amount to be approved by
7		the board, but in no case shall such amount be less than 10%
8		50% of the system's area and per capita grant for the previous
9		year, conditioned that he will safely keep and pay over upon
10		the order of such board all funds received and held by him for
11		the library system. As an alternative to a personal bond on the
12		treasurer, the board of trustees may require the treasurer to
13		secure for the system an insurance policy or other insurance
14		instrument that provides the library with coverage for
15		negligent or intentional acts by system officials and
16		employees that could result in the loss of system funds. The
17		coverage shall be in an amount at least equal to 10% 50% of the
18		average amount of the system's operating fund from the prior 3
19		fiscal years. The coverage shall be placed with an insurer
20		approved by the board. The cost of any such coverage shall be
21		borne by the system. The system shall provide the Illinois
22		State Library a copy of the system's certificate of insurance
23		at the time the system's annual report is filed. The funds of
24		the library system shall be deposited in a bank or savings and
25		loan association designated by the board of directors and
26		shall be expended only under the direction of such board upon

HB4951 Enrolled - 1116 - LRB103 38094 HLH 68226 b
1		properly authenticated vouchers.
2		No bank or savings and loan association shall receive
3		public funds as permitted by this Section, unless it has
4		complied with the requirements established pursuant to Section
5		6 of the Public Funds Investment Act.
6		The members of the board of directors of the library
7		system shall serve without compensation but their actual and
8		necessary expenses shall be a proper charge against the
9		library fund.
10		(Source: P.A. 97-101, eff. 1-1-12.)
11		Section 165-15. The Public Library District Act of 1991 is
12		amended by changing Section 30-45 as follows:
13		(75 ILCS 16/30-45)
14		Sec. 30-45. Duties of officers.
15		(a) The duties of the officers of the board are as provided
16		in this Section.
17		(b) The president shall preside over all meetings, appoint
18		members of committees authorized by the district's
19		regulations, and perform other duties specified by the
20		district's regulations, ordinances, or other appropriate
21		action. In the president's absence, the vice president shall
22		preside at meetings. The president shall not have or exercise
23		veto powers.
24		(c) The vice president's duties shall be prescribed by

HB4951 Enrolled - 1117 - LRB103 38094 HLH 68226 b
1		regulations.
2		(d) The treasurer shall keep and maintain accounts and
3		records of the district during the treasurer's term in office,
4		indicating in those accounts and records a record of all
5		receipts, disbursements, and balances in any funds.
6		Annual audit and financial report requirements shall
7		conform with Section 3 of the Governmental Account Audit Act.
8		(e) The treasurer shall give bond to the district to
9		faithfully discharge the duties of the office and to account
10		to the district for all district funds coming into the
11		treasurer's hands. The bond shall be in an amount and with
12		sureties approved by the board. The amount of the bond shall be
13		based upon a minimum of 10% 50% of the total funds received by
14		the district in the last previous fiscal year. The cost of any
15		surety bond shall be borne by the district. As an alternative
16		to a personal bond on the treasurer, the treasurer may secure
17		for the district an insurance policy or other insurance
18		instrument that provides the district with coverage for
19		negligent or intentional acts by district officials and
20		employees that could result in the loss of district funds. The
21		coverage shall be in an amount at least equal to 10% 50% of the
22		average amount of the district's operating fund from the prior
23		3 fiscal years. The coverage shall be placed with an insurer
24		approved by the board. The cost of any such coverage shall be
25		borne by the district. The system shall provide the Illinois
26		State Library a copy of the district's certificate of

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1		insurance at the time the district's annual report is filed.
2		(f) Any person, entity, or public body or agency
3		possessing district funds, property, or records shall, upon
4		demand by any trustee, transfer and release the funds,
5		property, or records to the treasurer.
6		(g) The secretary shall keep and maintain appropriate
7		records for his or her term in office and shall include in
8		those records a record of the minutes of all meetings, the
9		names of those in attendance, the ordinances enacted, the
10		resolutions and regulations adopted, and all other pertinent
11		written matter affecting the operation of the district. The
12		secretary may administer oaths and affirmations for the
13		purposes of this Act.
14		(Source: P.A. 97-101, eff. 1-1-12.)
15		ARTICLE 170.
16		Section 170-1. Short title. This Act may be cited as the
17		Illinois Gives Tax Credit Act. References in this Article to
18		"this Act" mean this Article.
19		Section 170-5. Definitions. As used in this Act:
20		"Business entity" means a corporation (including a
21		Subchapter S corporation), trust, estate, partnership, limited
22		liability company, or sole proprietorship.
23		"Credit-eligible endowment gift" means an endowment gift

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1		for which a taxpayer intends to apply for an income tax credit
2		under this Act.
3		"Department" means the Department of Revenue.
4		"Donor advised fund" has the meaning given to that term in
5		subsection (d) of Section 4966 of the Internal Revenue Code of
6		1986.
7		"Endowment gift" means an irrevocable contribution to a
8		permanent endowment fund held by a qualified community
9		foundation.
10		"Permanent endowment fund" means a fund that (i) is held
11		by a qualified community foundation, (ii) provides charitable
12		grants exclusively for the benefit of residents of the State
13		or charities and charitable projects located in the State,
14		(iii) is intended to exist in perpetuity, (iv) has an annual
15		spending rate based on the foundation spending policy, but not
16		to exceed 7%, and (v) is not a donor advised fund.
17		"Qualified community foundation" means a community
18		foundation or similar publicly supported organization
19		described in Section 170 (b)(1)(A)(vi) of the Internal Revenue
20		Code of 1986 that is organized or operating in this State and
21		that substantially complies with the national standards for
22		U.S. community foundations established by the Community
23		Foundations National Standards, as determined by the
24		Department.
25		"Taxpayer" means any individual who is subject to the tax
26		imposed under subsections (a) and (b) of Section 201 of the

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1		Illinois Income Tax Act or any business entity that is subject
2		to the tax imposed under subsections (a) and (b) of Section 201
3		of the Illinois Income Tax Act.
4		Section 170-10. Tax credit awards; limitations.
5		(a) For taxable years ending on or after December 31, 2025
6		and ending before January 1, 2030, the Department shall award,
7		in accordance with this Act, income tax credits to taxpayers
8		who provide an endowment gift to a permanent endowment fund
9		during the taxable year and receive a certificate of receipt
10		under Section 170-15 for that gift. Subject to the limitations
11		in this Section, the amount of the credit that may be awarded
12		to a taxpayer by the Department under this Act is an amount
13		equal to 25% of the endowment gift.
14		(b) The aggregate amount of all Illinois Gives tax credits
15		awarded by the Department under this Act in any calendar year
16		may not exceed $5,000,000.
17		(c) The aggregate amount of all Illinois Gives tax credits
18		that the Department may award to any taxpayer under this Act in
19		any calendar year may not exceed $100,000.
20		(d) The amount of contributions to any specific qualified
21		community foundation that are eligible for Illinois Gives tax
22		credits under this Section in any calendar year shall not
23		exceed $3,000,000.
24		(e) Of the annual amount available for tax credits, 25%
25		must be reserved for endowment gifts that do not exceed the

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1		small gift maximum set forth in this subsection. The small
2		gift maximum is $25,000. For purposes of determining if a
3		donation meets the small gift maximum, the amount of the
4		credit authorization certificate under Section 170-15 shall be
5		used.
6		(f) For the purpose of this Section, a credit is
7		considered to be awarded on the date the Department issues an
8		approved contribution authorization certificate under Section
9		170-15.
10		Section 170-15. Applications for tax credits.
11		(a) The taxpayer shall apply to the Department, in the
12		form and manner prescribed by the Department, for a
13		contribution authorization certificate. A taxpayer who makes
14		more than one credit-eligible endowment gift must make a
15		separate application for each contribution authorization
16		certificate. Applications under this subsection shall be
17		reviewed by the Department and shall either be approved or
18		denied. Each approved contribution authorization certificate
19		shall be sent to the taxpayer within 3 business days after the
20		certificate is approved. The Department shall maintain on its
21		website a running total of: (i) the total amount of credits
22		remaining under this Act for which taxpayers may apply for a
23		contribution authorization certificate issued in the calendar
24		year; (ii) the total amount of credits allocated during the
25		calendar year for each specific community foundation; and

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1		(iii) the total amount remaining for the calendar year under
2		the small gift maximum set forth in Section 170-10. Those
3		running totals shall be updated every business day.
4		(b) The taxpayer shall make the endowment gift to the
5		permanent endowment fund either prior to or within 10 business
6		days after the taxpayer receives the approved contribution
7		authorization certificate under subsection (a). The qualified
8		community foundation shall, within 30 business days after
9		receipt of an endowment gift for which a contribution
10		authorization certificate has been approved by the Department
11		under subsection (a), issue to the taxpayer a written
12		certificate of receipt, which shall contain the information
13		required by the Department by rule. No receipt shall be issued
14		for amounts that are not actually received by the qualified
15		community foundation within 10 business days after the
16		taxpayer receives the approved contribution authorization
17		certificate.
18		Section 170-20. Approval to issue certificates of receipt.
19		(a) A qualified community foundation shall submit an
20		application for approval to issue certificates of receipt, in
21		the form and manner prescribed by the Department, provided
22		that each application shall include:
23		(1) documentary evidence that the qualified community
24		foundation meets the qualifications under Section
25		170(b)(1)(A)(vi) of the Internal Revenue Code and

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1		substantially complies with the standards established by
2		Community Foundations National Standards;
3		(2) certification that the qualified community
4		foundation holds a permanent endowment fund meeting the
5		criteria established in Section 170-5;
6		(3) a list of the names and addresses of all members of
7		the governing board of the qualified community foundation;
8		and
9		(4) a copy of the most recent financial audit of the
10		qualified community foundation's accounts and records
11		conducted by an independent certified public accountant in
12		accordance with auditing standards generally accepted in
13		the United States, government auditing standards, and
14		rules adopted by the Department.
15		(b) The Department shall review and either approve or deny
16		each application to issue certificates of receipt pursuant to
17		this Act. Approval or denial of an application shall be made on
18		a periodic basis. Applicants shall be notified of the
19		Department's determination within 30 business days after the
20		application is received.
21		Section 170-25. Certificates of receipt.
22		(a) No qualified community foundation shall issue a
23		certificate of receipt for any qualified contribution made by
24		a taxpayer under this Act unless that qualified community
25		foundation has been approved to issue certificates of receipt

HB4951 Enrolled - 1124 - LRB103 38094 HLH 68226 b
1		pursuant to Section 170-20 of this Act.
2		(b) No qualified community foundation shall issue a
3		certificate of receipt for a contribution made by a taxpayer
4		unless the taxpayer has been issued a credit authorization
5		certificate by the Department.
6		(c) If a taxpayer makes a contribution to a qualified
7		community foundation prior to the date by which the authorized
8		contribution shall be made as provided in Section 170-15, the
9		qualified community foundation shall, within 30 business days
10		after receipt of the authorized contribution, issue to the
11		taxpayer a written certificate of receipt.
12		(d) If a taxpayer fails to make all or a portion of a
13		contribution prior to the date by which such authorized
14		contribution is required to be made, the taxpayer shall not be
15		entitled to a certificate of receipt for that portion of the
16		authorized contribution not made.
17		(e) Each certificate of receipt shall state:
18		(1) the name and address of the issuing qualified
19		community foundation;
20		(2) the taxpayer's name and address;
21		(3) the date of each qualified contribution;
22		(4) the amount of each qualified contribution;
23		(5) the total qualified contribution amount; and
24		(6) any other information that the Department deems
25		necessary.
26		(f) Upon the issuance of a certificate of receipt, the

HB4951 Enrolled - 1125 - LRB103 38094 HLH 68226 b
1		issuing qualified community foundation shall, within 10
2		business days after issuing the certificate of receipt,
3		provide the Department with notification of the issuance of
4		such certificate, in the form and manner prescribed by the
5		Department, provided that such notification shall include:
6		(1) the taxpayer's name and address;
7		(2) the date of the issuance of a certificate of
8		receipt;
9		(3) the qualified contribution date or dates and the
10		amounts contributed on such dates;
11		(4) the total qualified contribution listed on such
12		certificates;
13		(5) the issuing qualified community foundation's name
14		and address; and
15		(6) any other information the Department may deem
16		necessary.
17		(g) Any portion of a contribution that a taxpayer fails to
18		make by the date indicated on the authorized contribution
19		certificate shall no longer be deducted from the cap
20		prescribed in Section 170-10 of this Act.
21		Section 170-30. Annual report. By March 31, 2026, and by
22		March 31 of each subsequent year, the Department must submit
23		an annual report to the Governor and the General Assembly
24		concerning the activities conducted under this Act during the
25		previous calendar year. The report must include a detailed

HB4951 Enrolled - 1126 - LRB103 38094 HLH 68226 b
1		listing of tax credits authorized under this Act by the
2		Department. The report may not disclose any information if the
3		disclosure would violate Section 917 of the Illinois Income
4		Tax Act.
5		Section 170-35. Rulemaking. The Department may adopt rules
6		for the implementation of this Act.
7		Section 170-90. The Illinois Income Tax Act is amended by
8		changing Section 203 and by adding Section 241 as follows:
9		(35 ILCS 5/203)
10		Sec. 203. Base income defined.
11		(a) Individuals.
12		(1) In general. In the case of an individual, base
13		income means an amount equal to the taxpayer's adjusted
14		gross income for the taxable year as modified by paragraph
15		(2).
16		(2) Modifications. The adjusted gross income referred
17		to in paragraph (1) shall be modified by adding thereto
18		the sum of the following amounts:
19		(A) An amount equal to all amounts paid or accrued
20		to the taxpayer as interest or dividends during the
21		taxable year to the extent excluded from gross income
22		in the computation of adjusted gross income, except
23		stock dividends of qualified public utilities

HB4951 Enrolled - 1127 - LRB103 38094 HLH 68226 b
1		described in Section 305(e) of the Internal Revenue
2		Code;
3		(B) An amount equal to the amount of tax imposed by
4		this Act to the extent deducted from gross income in
5		the computation of adjusted gross income for the
6		taxable year;
7		(C) An amount equal to the amount received during
8		the taxable year as a recovery or refund of real
9		property taxes paid with respect to the taxpayer's
10		principal residence under the Revenue Act of 1939 and
11		for which a deduction was previously taken under
12		subparagraph (L) of this paragraph (2) prior to July
13		1, 1991, the retrospective application date of Article
14		4 of Public Act 87-17. In the case of multi-unit or
15		multi-use structures and farm dwellings, the taxes on
16		the taxpayer's principal residence shall be that
17		portion of the total taxes for the entire property
18		which is attributable to such principal residence;
19		(D) An amount equal to the amount of the capital
20		gain deduction allowable under the Internal Revenue
21		Code, to the extent deducted from gross income in the
22		computation of adjusted gross income;
23		(D-5) An amount, to the extent not included in
24		adjusted gross income, equal to the amount of money
25		withdrawn by the taxpayer in the taxable year from a
26		medical care savings account and the interest earned

HB4951 Enrolled - 1128 - LRB103 38094 HLH 68226 b
1		on the account in the taxable year of a withdrawal
2		pursuant to subsection (b) of Section 20 of the
3		Medical Care Savings Account Act or subsection (b) of
4		Section 20 of the Medical Care Savings Account Act of
5		2000;
6		(D-10) For taxable years ending after December 31,
7		1997, an amount equal to any eligible remediation
8		costs that the individual deducted in computing
9		adjusted gross income and for which the individual
10		claims a credit under subsection (l) of Section 201;
11		(D-15) For taxable years 2001 and thereafter, an
12		amount equal to the bonus depreciation deduction taken
13		on the taxpayer's federal income tax return for the
14		taxable year under subsection (k) of Section 168 of
15		the Internal Revenue Code;
16		(D-16) If the taxpayer sells, transfers, abandons,
17		or otherwise disposes of property for which the
18		taxpayer was required in any taxable year to make an
19		addition modification under subparagraph (D-15), then
20		an amount equal to the aggregate amount of the
21		deductions taken in all taxable years under
22		subparagraph (Z) with respect to that property.
23		If the taxpayer continues to own property through
24		the last day of the last tax year for which a
25		subtraction is allowed with respect to that property
26		under subparagraph (Z) and for which the taxpayer was

HB4951 Enrolled - 1129 - LRB103 38094 HLH 68226 b
1		allowed in any taxable year to make a subtraction
2		modification under subparagraph (Z), then an amount
3		equal to that subtraction modification.
4		The taxpayer is required to make the addition
5		modification under this subparagraph only once with
6		respect to any one piece of property;
7		(D-17) An amount equal to the amount otherwise
8		allowed as a deduction in computing base income for
9		interest paid, accrued, or incurred, directly or
10		indirectly, (i) for taxable years ending on or after
11		December 31, 2004, to a foreign person who would be a
12		member of the same unitary business group but for the
13		fact that foreign person's business activity outside
14		the United States is 80% or more of the foreign
15		person's total business activity and (ii) for taxable
16		years ending on or after December 31, 2008, to a person
17		who would be a member of the same unitary business
18		group but for the fact that the person is prohibited
19		under Section 1501(a)(27) from being included in the
20		unitary business group because he or she is ordinarily
21		required to apportion business income under different
22		subsections of Section 304. The addition modification
23		required by this subparagraph shall be reduced to the
24		extent that dividends were included in base income of
25		the unitary group for the same taxable year and
26		received by the taxpayer or by a member of the

HB4951 Enrolled - 1130 - LRB103 38094 HLH 68226 b
1		taxpayer's unitary business group (including amounts
2		included in gross income under Sections 951 through
3		964 of the Internal Revenue Code and amounts included
4		in gross income under Section 78 of the Internal
5		Revenue Code) with respect to the stock of the same
6		person to whom the interest was paid, accrued, or
7		incurred.
8		This paragraph shall not apply to the following:
9		(i) an item of interest paid, accrued, or
10		incurred, directly or indirectly, to a person who
11		is subject in a foreign country or state, other
12		than a state which requires mandatory unitary
13		reporting, to a tax on or measured by net income
14		with respect to such interest; or
15		(ii) an item of interest paid, accrued, or
16		incurred, directly or indirectly, to a person if
17		the taxpayer can establish, based on a
18		preponderance of the evidence, both of the
19		following:
20		(a) the person, during the same taxable
21		year, paid, accrued, or incurred, the interest
22		to a person that is not a related member, and
23		(b) the transaction giving rise to the
24		interest expense between the taxpayer and the
25		person did not have as a principal purpose the
26		avoidance of Illinois income tax, and is paid

HB4951 Enrolled - 1131 - LRB103 38094 HLH 68226 b
1		pursuant to a contract or agreement that
2		reflects an arm's-length interest rate and
3		terms; or
4		(iii) the taxpayer can establish, based on
5		clear and convincing evidence, that the interest
6		paid, accrued, or incurred relates to a contract
7		or agreement entered into at arm's-length rates
8		and terms and the principal purpose for the
9		payment is not federal or Illinois tax avoidance;
10		or
11		(iv) an item of interest paid, accrued, or
12		incurred, directly or indirectly, to a person if
13		the taxpayer establishes by clear and convincing
14		evidence that the adjustments are unreasonable; or
15		if the taxpayer and the Director agree in writing
16		to the application or use of an alternative method
17		of apportionment under Section 304(f).
18		Nothing in this subsection shall preclude the
19		Director from making any other adjustment
20		otherwise allowed under Section 404 of this Act
21		for any tax year beginning after the effective
22		date of this amendment provided such adjustment is
23		made pursuant to regulation adopted by the
24		Department and such regulations provide methods
25		and standards by which the Department will utilize
26		its authority under Section 404 of this Act;

HB4951 Enrolled - 1132 - LRB103 38094 HLH 68226 b
1		(D-18) An amount equal to the amount of intangible
2		expenses and costs otherwise allowed as a deduction in
3		computing base income, and that were paid, accrued, or
4		incurred, directly or indirectly, (i) for taxable
5		years ending on or after December 31, 2004, to a
6		foreign person who would be a member of the same
7		unitary business group but for the fact that the
8		foreign person's business activity outside the United
9		States is 80% or more of that person's total business
10		activity and (ii) for taxable years ending on or after
11		December 31, 2008, to a person who would be a member of
12		the same unitary business group but for the fact that
13		the person is prohibited under Section 1501(a)(27)
14		from being included in the unitary business group
15		because he or she is ordinarily required to apportion
16		business income under different subsections of Section
17		304. The addition modification required by this
18		subparagraph shall be reduced to the extent that
19		dividends were included in base income of the unitary
20		group for the same taxable year and received by the
21		taxpayer or by a member of the taxpayer's unitary
22		business group (including amounts included in gross
23		income under Sections 951 through 964 of the Internal
24		Revenue Code and amounts included in gross income
25		under Section 78 of the Internal Revenue Code) with
26		respect to the stock of the same person to whom the

HB4951 Enrolled - 1133 - LRB103 38094 HLH 68226 b
1		intangible expenses and costs were directly or
2		indirectly paid, incurred, or accrued. The preceding
3		sentence does not apply to the extent that the same
4		dividends caused a reduction to the addition
5		modification required under Section 203(a)(2)(D-17) of
6		this Act. As used in this subparagraph, the term
7		"intangible expenses and costs" includes (1) expenses,
8		losses, and costs for, or related to, the direct or
9		indirect acquisition, use, maintenance or management,
10		ownership, sale, exchange, or any other disposition of
11		intangible property; (2) losses incurred, directly or
12		indirectly, from factoring transactions or discounting
13		transactions; (3) royalty, patent, technical, and
14		copyright fees; (4) licensing fees; and (5) other
15		similar expenses and costs. For purposes of this
16		subparagraph, "intangible property" includes patents,
17		patent applications, trade names, trademarks, service
18		marks, copyrights, mask works, trade secrets, and
19		similar types of intangible assets.
20		This paragraph shall not apply to the following:
21		(i) any item of intangible expenses or costs
22		paid, accrued, or incurred, directly or
23		indirectly, from a transaction with a person who
24		is subject in a foreign country or state, other
25		than a state which requires mandatory unitary
26		reporting, to a tax on or measured by net income

HB4951 Enrolled - 1134 - LRB103 38094 HLH 68226 b
1		with respect to such item; or
2		(ii) any item of intangible expense or cost
3		paid, accrued, or incurred, directly or
4		indirectly, if the taxpayer can establish, based
5		on a preponderance of the evidence, both of the
6		following:
7		(a) the person during the same taxable
8		year paid, accrued, or incurred, the
9		intangible expense or cost to a person that is
10		not a related member, and
11		(b) the transaction giving rise to the
12		intangible expense or cost between the
13		taxpayer and the person did not have as a
14		principal purpose the avoidance of Illinois
15		income tax, and is paid pursuant to a contract
16		or agreement that reflects arm's-length terms;
17		or
18		(iii) any item of intangible expense or cost
19		paid, accrued, or incurred, directly or
20		indirectly, from a transaction with a person if
21		the taxpayer establishes by clear and convincing
22		evidence, that the adjustments are unreasonable;
23		or if the taxpayer and the Director agree in
24		writing to the application or use of an
25		alternative method of apportionment under Section
26		304(f);

HB4951 Enrolled - 1135 - LRB103 38094 HLH 68226 b
1		Nothing in this subsection shall preclude the
2		Director from making any other adjustment
3		otherwise allowed under Section 404 of this Act
4		for any tax year beginning after the effective
5		date of this amendment provided such adjustment is
6		made pursuant to regulation adopted by the
7		Department and such regulations provide methods
8		and standards by which the Department will utilize
9		its authority under Section 404 of this Act;
10		(D-19) For taxable years ending on or after
11		December 31, 2008, an amount equal to the amount of
12		insurance premium expenses and costs otherwise allowed
13		as a deduction in computing base income, and that were
14		paid, accrued, or incurred, directly or indirectly, to
15		a person who would be a member of the same unitary
16		business group but for the fact that the person is
17		prohibited under Section 1501(a)(27) from being
18		included in the unitary business group because he or
19		she is ordinarily required to apportion business
20		income under different subsections of Section 304. The
21		addition modification required by this subparagraph
22		shall be reduced to the extent that dividends were
23		included in base income of the unitary group for the
24		same taxable year and received by the taxpayer or by a
25		member of the taxpayer's unitary business group
26		(including amounts included in gross income under

HB4951 Enrolled - 1136 - LRB103 38094 HLH 68226 b
1		Sections 951 through 964 of the Internal Revenue Code
2		and amounts included in gross income under Section 78
3		of the Internal Revenue Code) with respect to the
4		stock of the same person to whom the premiums and costs
5		were directly or indirectly paid, incurred, or
6		accrued. The preceding sentence does not apply to the
7		extent that the same dividends caused a reduction to
8		the addition modification required under Section
9		203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
10		Act;
11		(D-20) For taxable years beginning on or after
12		January 1, 2002 and ending on or before December 31,
13		2006, in the case of a distribution from a qualified
14		tuition program under Section 529 of the Internal
15		Revenue Code, other than (i) a distribution from a
16		College Savings Pool created under Section 16.5 of the
17		State Treasurer Act or (ii) a distribution from the
18		Illinois Prepaid Tuition Trust Fund, an amount equal
19		to the amount excluded from gross income under Section
20		529(c)(3)(B). For taxable years beginning on or after
21		January 1, 2007, in the case of a distribution from a
22		qualified tuition program under Section 529 of the
23		Internal Revenue Code, other than (i) a distribution
24		from a College Savings Pool created under Section 16.5
25		of the State Treasurer Act, (ii) a distribution from
26		the Illinois Prepaid Tuition Trust Fund, or (iii) a

HB4951 Enrolled - 1137 - LRB103 38094 HLH 68226 b
1		distribution from a qualified tuition program under
2		Section 529 of the Internal Revenue Code that (I)
3		adopts and determines that its offering materials
4		comply with the College Savings Plans Network's
5		disclosure principles and (II) has made reasonable
6		efforts to inform in-state residents of the existence
7		of in-state qualified tuition programs by informing
8		Illinois residents directly and, where applicable, to
9		inform financial intermediaries distributing the
10		program to inform in-state residents of the existence
11		of in-state qualified tuition programs at least
12		annually, an amount equal to the amount excluded from
13		gross income under Section 529(c)(3)(B).
14		For the purposes of this subparagraph (D-20), a
15		qualified tuition program has made reasonable efforts
16		if it makes disclosures (which may use the term
17		"in-state program" or "in-state plan" and need not
18		specifically refer to Illinois or its qualified
19		programs by name) (i) directly to prospective
20		participants in its offering materials or makes a
21		public disclosure, such as a website posting; and (ii)
22		where applicable, to intermediaries selling the
23		out-of-state program in the same manner that the
24		out-of-state program distributes its offering
25		materials;
26		(D-20.5) For taxable years beginning on or after

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1		January 1, 2018, in the case of a distribution from a
2		qualified ABLE program under Section 529A of the
3		Internal Revenue Code, other than a distribution from
4		a qualified ABLE program created under Section 16.6 of
5		the State Treasurer Act, an amount equal to the amount
6		excluded from gross income under Section 529A(c)(1)(B)
7		of the Internal Revenue Code;
8		(D-21) For taxable years beginning on or after
9		January 1, 2007, in the case of transfer of moneys from
10		a qualified tuition program under Section 529 of the
11		Internal Revenue Code that is administered by the
12		State to an out-of-state program, an amount equal to
13		the amount of moneys previously deducted from base
14		income under subsection (a)(2)(Y) of this Section;
15		(D-21.5) For taxable years beginning on or after
16		January 1, 2018, in the case of the transfer of moneys
17		from a qualified tuition program under Section 529 or
18		a qualified ABLE program under Section 529A of the
19		Internal Revenue Code that is administered by this
20		State to an ABLE account established under an
21		out-of-state ABLE account program, an amount equal to
22		the contribution component of the transferred amount
23		that was previously deducted from base income under
24		subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
25		Section;
26		(D-22) For taxable years beginning on or after

HB4951 Enrolled - 1139 - LRB103 38094 HLH 68226 b
1		January 1, 2009, and prior to January 1, 2018, in the
2		case of a nonqualified withdrawal or refund of moneys
3		from a qualified tuition program under Section 529 of
4		the Internal Revenue Code administered by the State
5		that is not used for qualified expenses at an eligible
6		education institution, an amount equal to the
7		contribution component of the nonqualified withdrawal
8		or refund that was previously deducted from base
9		income under subsection (a)(2)(y) of this Section,
10		provided that the withdrawal or refund did not result
11		from the beneficiary's death or disability. For
12		taxable years beginning on or after January 1, 2018:
13		(1) in the case of a nonqualified withdrawal or
14		refund, as defined under Section 16.5 of the State
15		Treasurer Act, of moneys from a qualified tuition
16		program under Section 529 of the Internal Revenue Code
17		administered by the State, an amount equal to the
18		contribution component of the nonqualified withdrawal
19		or refund that was previously deducted from base
20		income under subsection (a)(2)(Y) of this Section, and
21		(2) in the case of a nonqualified withdrawal or refund
22		from a qualified ABLE program under Section 529A of
23		the Internal Revenue Code administered by the State
24		that is not used for qualified disability expenses, an
25		amount equal to the contribution component of the
26		nonqualified withdrawal or refund that was previously

HB4951 Enrolled - 1140 - LRB103 38094 HLH 68226 b
1		deducted from base income under subsection (a)(2)(HH)
2		of this Section;
3		(D-23) An amount equal to the credit allowable to
4		the taxpayer under Section 218(a) of this Act,
5		determined without regard to Section 218(c) of this
6		Act;
7		(D-24) For taxable years ending on or after
8		December 31, 2017, an amount equal to the deduction
9		allowed under Section 199 of the Internal Revenue Code
10		for the taxable year;
11		(D-25) In the case of a resident, an amount equal
12		to the amount of tax for which a credit is allowed
13		pursuant to Section 201(p)(7) of this Act;
14		and by deducting from the total so obtained the sum of the
15		following amounts:
16		(E) For taxable years ending before December 31,
17		2001, any amount included in such total in respect of
18		any compensation (including but not limited to any
19		compensation paid or accrued to a serviceman while a
20		prisoner of war or missing in action) paid to a
21		resident by reason of being on active duty in the Armed
22		Forces of the United States and in respect of any
23		compensation paid or accrued to a resident who as a
24		governmental employee was a prisoner of war or missing
25		in action, and in respect of any compensation paid to a
26		resident in 1971 or thereafter for annual training

HB4951 Enrolled - 1141 - LRB103 38094 HLH 68226 b
1		performed pursuant to Sections 502 and 503, Title 32,
2		United States Code as a member of the Illinois
3		National Guard or, beginning with taxable years ending
4		on or after December 31, 2007, the National Guard of
5		any other state. For taxable years ending on or after
6		December 31, 2001, any amount included in such total
7		in respect of any compensation (including but not
8		limited to any compensation paid or accrued to a
9		serviceman while a prisoner of war or missing in
10		action) paid to a resident by reason of being a member
11		of any component of the Armed Forces of the United
12		States and in respect of any compensation paid or
13		accrued to a resident who as a governmental employee
14		was a prisoner of war or missing in action, and in
15		respect of any compensation paid to a resident in 2001
16		or thereafter by reason of being a member of the
17		Illinois National Guard or, beginning with taxable
18		years ending on or after December 31, 2007, the
19		National Guard of any other state. The provisions of
20		this subparagraph (E) are exempt from the provisions
21		of Section 250;
22		(F) An amount equal to all amounts included in
23		such total pursuant to the provisions of Sections
24		402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
25		408 of the Internal Revenue Code, or included in such
26		total as distributions under the provisions of any

HB4951 Enrolled - 1142 - LRB103 38094 HLH 68226 b
1		retirement or disability plan for employees of any
2		governmental agency or unit, or retirement payments to
3		retired partners, which payments are excluded in
4		computing net earnings from self employment by Section
5		1402 of the Internal Revenue Code and regulations
6		adopted pursuant thereto;
7		(G) The valuation limitation amount;
8		(H) An amount equal to the amount of any tax
9		imposed by this Act which was refunded to the taxpayer
10		and included in such total for the taxable year;
11		(I) An amount equal to all amounts included in
12		such total pursuant to the provisions of Section 111
13		of the Internal Revenue Code as a recovery of items
14		previously deducted from adjusted gross income in the
15		computation of taxable income;
16		(J) An amount equal to those dividends included in
17		such total which were paid by a corporation which
18		conducts business operations in a River Edge
19		Redevelopment Zone or zones created under the River
20		Edge Redevelopment Zone Act, and conducts
21		substantially all of its operations in a River Edge
22		Redevelopment Zone or zones. This subparagraph (J) is
23		exempt from the provisions of Section 250;
24		(K) 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

HB4951 Enrolled - 1143 - LRB103 38094 HLH 68226 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 (J) of paragraph (2) of this subsection
5		shall not be eligible for the deduction provided under
6		this subparagraph (K);
7		(L) For taxable years ending after December 31,
8		1983, an amount equal to all social security benefits
9		and railroad retirement benefits included in such
10		total pursuant to Sections 72(r) and 86 of the
11		Internal Revenue Code;
12		(M) With the exception of any amounts subtracted
13		under subparagraph (N), an amount equal to the sum of
14		all amounts disallowed as deductions by (i) Sections
15		171(a)(2) and 265(a)(2) of the Internal Revenue Code,
16		and all amounts of expenses allocable to interest and
17		disallowed as deductions by Section 265(a)(1) of the
18		Internal Revenue Code; and (ii) for taxable years
19		ending on or after August 13, 1999, Sections
20		171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
21		Internal Revenue Code, plus, for taxable years ending
22		on or after December 31, 2011, Section 45G(e)(3) of
23		the Internal Revenue Code and, for taxable years
24		ending on or after December 31, 2008, any amount
25		included in gross income under Section 87 of the
26		Internal Revenue Code; the provisions of this

HB4951 Enrolled - 1144 - LRB103 38094 HLH 68226 b
1		subparagraph are exempt from the provisions of Section
2		250;
3		(N) An amount equal to all amounts included in
4		such total which are exempt from taxation by this
5		State either by reason of its statutes or Constitution
6		or by reason of the Constitution, treaties or statutes
7		of the United States; provided that, in the case of any
8		statute of this State that exempts income derived from
9		bonds or other obligations from the tax imposed under
10		this Act, the amount exempted shall be the interest
11		net of bond premium amortization;
12		(O) An amount equal to any contribution made to a
13		job training project established pursuant to the Tax
14		Increment Allocation Redevelopment Act;
15		(P) An amount equal to the amount of the deduction
16		used to compute the federal income tax credit for
17		restoration of substantial amounts held under claim of
18		right for the taxable year pursuant to Section 1341 of
19		the Internal Revenue Code or of any itemized deduction
20		taken from adjusted gross income in the computation of
21		taxable income for restoration of substantial amounts
22		held under claim of right for the taxable year;
23		(Q) An amount equal to any amounts included in
24		such total, received by the taxpayer as an
25		acceleration in the payment of life, endowment or
26		annuity benefits in advance of the time they would

HB4951 Enrolled - 1145 - LRB103 38094 HLH 68226 b
1		otherwise be payable as an indemnity for a terminal
2		illness;
3		(R) An amount equal to the amount of any federal or
4		State bonus paid to veterans of the Persian Gulf War;
5		(S) An amount, to the extent included in adjusted
6		gross income, equal to the amount of a contribution
7		made in the taxable year on behalf of the taxpayer to a
8		medical care savings account established under the
9		Medical Care Savings Account Act or the Medical Care
10		Savings Account Act of 2000 to the extent the
11		contribution is accepted by the account administrator
12		as provided in that Act;
13		(T) An amount, to the extent included in adjusted
14		gross income, equal to the amount of interest earned
15		in the taxable year on a medical care savings account
16		established under the Medical Care Savings Account Act
17		or the Medical Care Savings Account Act of 2000 on
18		behalf of the taxpayer, other than interest added
19		pursuant to item (D-5) of this paragraph (2);
20		(U) For one taxable year beginning on or after
21		January 1, 1994, an amount equal to the total amount of
22		tax imposed and paid under subsections (a) and (b) of
23		Section 201 of this Act on grant amounts received by
24		the taxpayer under the Nursing Home Grant Assistance
25		Act during the taxpayer's taxable years 1992 and 1993;
26		(V) Beginning with tax years ending on or after

HB4951 Enrolled - 1146 - LRB103 38094 HLH 68226 b
1		December 31, 1995 and ending with tax years ending on
2		or before December 31, 2004, an amount equal to the
3		amount paid by a taxpayer who is a self-employed
4		taxpayer, a partner of a partnership, or a shareholder
5		in a Subchapter S corporation for health insurance or
6		long-term care insurance for that taxpayer or that
7		taxpayer's spouse or dependents, to the extent that
8		the amount paid for that health insurance or long-term
9		care insurance may be deducted under Section 213 of
10		the Internal Revenue Code, has not been deducted on
11		the federal income tax return of the taxpayer, and
12		does not exceed the taxable income attributable to
13		that taxpayer's income, self-employment income, or
14		Subchapter S corporation income; except that no
15		deduction shall be allowed under this item (V) if the
16		taxpayer is eligible to participate in any health
17		insurance or long-term care insurance plan of an
18		employer of the taxpayer or the taxpayer's spouse. The
19		amount of the health insurance and long-term care
20		insurance subtracted under this item (V) shall be
21		determined by multiplying total health insurance and
22		long-term care insurance premiums paid by the taxpayer
23		times a number that represents the fractional
24		percentage of eligible medical expenses under Section
25		213 of the Internal Revenue Code of 1986 not actually
26		deducted on the taxpayer's federal income tax return;

HB4951 Enrolled - 1147 - LRB103 38094 HLH 68226 b
1		(W) For taxable years beginning on or after
2		January 1, 1998, all amounts included in the
3		taxpayer's federal gross income in the taxable year
4		from amounts converted from a regular IRA to a Roth
5		IRA. This paragraph is exempt from the provisions of
6		Section 250;
7		(X) For taxable year 1999 and thereafter, an
8		amount equal to the amount of any (i) distributions,
9		to the extent includible in gross income for federal
10		income tax purposes, made to the taxpayer because of
11		his or her status as a victim of persecution for racial
12		or religious reasons by Nazi Germany or any other Axis
13		regime or as an heir of the victim and (ii) items of
14		income, to the extent includible in gross income for
15		federal income tax purposes, attributable to, derived
16		from or in any way related to assets stolen from,
17		hidden from, or otherwise lost to a victim of
18		persecution for racial or religious reasons by Nazi
19		Germany or any other Axis regime immediately prior to,
20		during, and immediately after World War II, including,
21		but not limited to, interest on the proceeds
22		receivable as insurance under policies issued to a
23		victim of persecution for racial or religious reasons
24		by Nazi Germany or any other Axis regime by European
25		insurance companies immediately prior to and during
26		World War II; provided, however, this subtraction from

HB4951 Enrolled - 1148 - LRB103 38094 HLH 68226 b
1		federal adjusted gross income does not apply to assets
2		acquired with such assets or with the proceeds from
3		the sale of such assets; provided, further, this
4		paragraph shall only apply to a taxpayer who was the
5		first recipient of such assets after their recovery
6		and who is a victim of persecution for racial or
7		religious reasons by Nazi Germany or any other Axis
8		regime or as an heir of the victim. The amount of and
9		the eligibility for any public assistance, benefit, or
10		similar entitlement is not affected by the inclusion
11		of items (i) and (ii) of this paragraph in gross income
12		for federal income tax purposes. This paragraph is
13		exempt from the provisions of Section 250;
14		(Y) For taxable years beginning on or after
15		January 1, 2002 and ending on or before December 31,
16		2004, moneys contributed in the taxable year to a
17		College Savings Pool account under Section 16.5 of the
18		State Treasurer Act, except that amounts excluded from
19		gross income under Section 529(c)(3)(C)(i) of the
20		Internal Revenue Code shall not be considered moneys
21		contributed under this subparagraph (Y). For taxable
22		years beginning on or after January 1, 2005, a maximum
23		of $10,000 contributed in the taxable year to (i) a
24		College Savings Pool account under Section 16.5 of the
25		State Treasurer Act or (ii) the Illinois Prepaid
26		Tuition Trust Fund, except that amounts excluded from

HB4951 Enrolled - 1149 - LRB103 38094 HLH 68226 b
1		gross income under Section 529(c)(3)(C)(i) of the
2		Internal Revenue Code shall not be considered moneys
3		contributed under this subparagraph (Y). For purposes
4		of this subparagraph, contributions made by an
5		employer on behalf of an employee, or matching
6		contributions made by an employee, shall be treated as
7		made by the employee. This subparagraph (Y) is exempt
8		from the provisions of Section 250;
9		(Z) For taxable years 2001 and thereafter, for the
10		taxable year in which the bonus depreciation deduction
11		is taken on the taxpayer's federal income tax return
12		under subsection (k) of Section 168 of the Internal
13		Revenue Code and for each applicable taxable year
14		thereafter, an amount equal to "x", where:
15		(1) "y" equals the amount of the depreciation
16		deduction taken for the taxable year on the
17		taxpayer's federal income tax return on property
18		for which the bonus depreciation deduction was
19		taken in any year under subsection (k) of Section
20		168 of the Internal Revenue Code, but not
21		including the bonus depreciation deduction;
22		(2) for taxable years ending on or before
23		December 31, 2005, "x" equals "y" multiplied by 30
24		and then divided by 70 (or "y" multiplied by
25		0.429); and
26		(3) for taxable years ending after December

HB4951 Enrolled - 1150 - LRB103 38094 HLH 68226 b
1		31, 2005:
2		(i) for property on which a bonus
3		depreciation deduction of 30% of the adjusted
4		basis was taken, "x" equals "y" multiplied by
5		30 and then divided by 70 (or "y" multiplied
6		by 0.429);
7		(ii) for property on which a bonus
8		depreciation deduction of 50% of the adjusted
9		basis was taken, "x" equals "y" multiplied by
10		1.0;
11		(iii) for property on which a bonus
12		depreciation deduction of 100% of the adjusted
13		basis was taken in a taxable year ending on or
14		after December 31, 2021, "x" equals the
15		depreciation deduction that would be allowed
16		on that property if the taxpayer had made the
17		election under Section 168(k)(7) of the
18		Internal Revenue Code to not claim bonus
19		depreciation on that property; and
20		(iv) for property on which a bonus
21		depreciation deduction of a percentage other
22		than 30%, 50% or 100% of the adjusted basis
23		was taken in a taxable year ending on or after
24		December 31, 2021, "x" equals "y" multiplied
25		by 100 times the percentage bonus depreciation
26		on the property (that is, 100(bonus%)) and

HB4951 Enrolled - 1151 - LRB103 38094 HLH 68226 b
1		then divided by 100 times 1 minus the
2		percentage bonus depreciation on the property
3		(that is, 100(1-bonus%)).
4		The aggregate amount deducted under this
5		subparagraph in all taxable years for any one piece of
6		property may not exceed the amount of the bonus
7		depreciation deduction taken on that property on the
8		taxpayer's federal income tax return under subsection
9		(k) of Section 168 of the Internal Revenue Code. This
10		subparagraph (Z) is exempt from the provisions of
11		Section 250;
12		(AA) If the taxpayer sells, transfers, abandons,
13		or otherwise disposes of property for which the
14		taxpayer was required in any taxable year to make an
15		addition modification under subparagraph (D-15), then
16		an amount equal to that addition modification.
17		If the taxpayer continues to own property through
18		the last day of the last tax year for which a
19		subtraction is allowed with respect to that property
20		under subparagraph (Z) and for which the taxpayer was
21		required in any taxable year to make an addition
22		modification under subparagraph (D-15), then an amount
23		equal to that addition modification.
24		The taxpayer is allowed to take the deduction
25		under this subparagraph only once with respect to any
26		one piece of property.

HB4951 Enrolled - 1152 - LRB103 38094 HLH 68226 b
1		This subparagraph (AA) is exempt from the
2		provisions of Section 250;
3		(BB) Any amount included in adjusted gross income,
4		other than salary, received by a driver in a
5		ridesharing arrangement using a motor vehicle;
6		(CC) 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 that 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 that
21		addition modification. This subparagraph (CC) is
22		exempt from the provisions of Section 250;
23		(DD) 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

HB4951 Enrolled - 1153 - LRB103 38094 HLH 68226 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(a)(2)(D-17) for interest paid, accrued, or
15		incurred, directly or indirectly, to the same person.
16		This subparagraph (DD) is exempt from the provisions
17		of Section 250;
18		(EE) An amount equal to the income from intangible
19		property taken into account for the taxable year (net
20		of the deductions allocable thereto) with respect to
21		transactions with (i) a foreign person who would be a
22		member of the taxpayer's unitary business group but
23		for the fact that the foreign person's business
24		activity outside the United States is 80% or more of
25		that person's total business activity and (ii) for
26		taxable years ending on or after December 31, 2008, to

HB4951 Enrolled - 1154 - LRB103 38094 HLH 68226 b
1		a person who would be a member of the same unitary
2		business group but for the fact that the person is
3		prohibited under Section 1501(a)(27) from being
4		included in the unitary business group because he or
5		she is ordinarily required to apportion business
6		income under different subsections of Section 304, but
7		not to exceed the addition modification required to be
8		made for the same taxable year under Section
9		203(a)(2)(D-18) for intangible expenses and costs
10		paid, accrued, or incurred, directly or indirectly, to
11		the same foreign person. This subparagraph (EE) is
12		exempt from the provisions of Section 250;
13		(FF) An amount equal to any amount awarded to the
14		taxpayer during the taxable year by the Court of
15		Claims under subsection (c) of Section 8 of the Court
16		of Claims Act for time unjustly served in a State
17		prison. This subparagraph (FF) is exempt from the
18		provisions of Section 250;
19		(GG) For taxable years ending on or after December
20		31, 2011, in the case of a taxpayer who was required to
21		add back any insurance premiums under Section
22		203(a)(2)(D-19), such taxpayer may elect to subtract
23		that part of a reimbursement received from the
24		insurance company equal to the amount of the expense
25		or loss (including expenses incurred by the insurance
26		company) that would have been taken into account as a

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1		deduction for federal income tax purposes if the
2		expense or loss had been uninsured. If a taxpayer
3		makes the election provided for by this subparagraph
4		(GG), the insurer to which the premiums were paid must
5		add back to income the amount subtracted by the
6		taxpayer pursuant to this subparagraph (GG). This
7		subparagraph (GG) is exempt from the provisions of
8		Section 250;
9		(HH) For taxable years beginning on or after
10		January 1, 2018 and prior to January 1, 2028, a maximum
11		of $10,000 contributed in the taxable year to a
12		qualified ABLE account under Section 16.6 of the State
13		Treasurer Act, except that amounts excluded from gross
14		income under Section 529(c)(3)(C)(i) or Section
15		529A(c)(1)(C) of the Internal Revenue Code shall not
16		be considered moneys contributed under this
17		subparagraph (HH). For purposes of this subparagraph
18		(HH), contributions made by an employer on behalf of
19		an employee, or matching contributions made by an
20		employee, shall be treated as made by the employee;
21		(II) For taxable years that begin on or after
22		January 1, 2021 and begin before January 1, 2026, the
23		amount that is included in the taxpayer's federal
24		adjusted gross income pursuant to Section 61 of the
25		Internal Revenue Code as discharge of indebtedness
26		attributable to student loan forgiveness and that is

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1		not excluded from the taxpayer's federal adjusted
2		gross income pursuant to paragraph (5) of subsection
3		(f) of Section 108 of the Internal Revenue Code; and
4		(JJ) For taxable years beginning on or after
5		January 1, 2023, for any cannabis establishment
6		operating in this State and licensed under the
7		Cannabis Regulation and Tax Act or any cannabis
8		cultivation center or medical cannabis dispensing
9		organization operating in this State and licensed
10		under the Compassionate Use of Medical Cannabis
11		Program Act, an amount equal to the deductions that
12		were disallowed under Section 280E of the Internal
13		Revenue Code for the taxable year and that would not be
14		added back under this subsection. The provisions of
15		this subparagraph (JJ) are exempt from the provisions
16		of Section 250; and .
17		(KK) (JJ) To the extent includible in gross income
18		for federal income tax purposes, any amount awarded or
19		paid to the taxpayer as a result of a judgment or
20		settlement for fertility fraud as provided in Section
21		15 of the Illinois Fertility Fraud Act, donor
22		fertility fraud as provided in Section 20 of the
23		Illinois Fertility Fraud Act, or similar action in
24		another state.
25		(b) Corporations.

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1		(1) In general. In the case of a corporation, base
2		income means an amount equal to the taxpayer's taxable
3		income for the taxable year as modified by paragraph (2).
4		(2) Modifications. The taxable income referred to in
5		paragraph (1) shall be modified by adding thereto the sum
6		of the following amounts:
7		(A) An amount equal to all amounts paid or accrued
8		to the taxpayer as interest and all distributions
9		received from regulated investment companies during
10		the taxable year to the extent excluded from gross
11		income in the computation of taxable income;
12		(B) An amount equal to the amount of tax imposed by
13		this Act to the extent deducted from gross income in
14		the computation of taxable income for the taxable
15		year;
16		(C) In the case of a regulated investment company,
17		an amount equal to the excess of (i) the net long-term
18		capital gain for the taxable year, over (ii) the
19		amount of the capital gain dividends designated as
20		such in accordance with Section 852(b)(3)(C) of the
21		Internal Revenue Code and any amount designated under
22		Section 852(b)(3)(D) of the Internal Revenue Code,
23		attributable to the taxable year (this amendatory Act
24		of 1995 (Public Act 89-89) is declarative of existing
25		law and is not a new enactment);
26		(D) The amount of any net operating loss deduction

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1		taken in arriving at taxable income, other than a net
2		operating loss carried forward from a taxable year
3		ending prior to December 31, 1986;
4		(E) For taxable years in which a net operating
5		loss carryback or carryforward from a taxable year
6		ending prior to December 31, 1986 is an element of
7		taxable income under paragraph (1) of subsection (e)
8		or subparagraph (E) of paragraph (2) of subsection
9		(e), the amount by which addition modifications other
10		than those provided by this subparagraph (E) exceeded
11		subtraction modifications in such earlier taxable
12		year, with the following limitations applied in the
13		order that they are listed:
14		(i) the addition modification relating to the
15		net operating loss carried back or forward to the
16		taxable year from any taxable year ending prior to
17		December 31, 1986 shall be reduced by the amount
18		of addition modification under this subparagraph
19		(E) which related to that net operating loss and
20		which was taken into account in calculating the
21		base income of an earlier taxable year, and
22		(ii) the addition modification relating to the
23		net operating loss carried back or forward to the
24		taxable year from any taxable year ending prior to
25		December 31, 1986 shall not exceed the amount of
26		such carryback or carryforward;

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1		For taxable years in which there is a net
2		operating loss carryback or carryforward from more
3		than one other taxable year ending prior to December
4		31, 1986, the addition modification provided in this
5		subparagraph (E) shall be the sum of the amounts
6		computed independently under the preceding provisions
7		of this subparagraph (E) for each such taxable year;
8		(E-5) For taxable years ending after December 31,
9		1997, an amount equal to any eligible remediation
10		costs that the corporation deducted in computing
11		adjusted gross income and for which the corporation
12		claims a credit under subsection (l) of Section 201;
13		(E-10) For taxable years 2001 and thereafter, an
14		amount equal to the bonus depreciation deduction taken
15		on the taxpayer's federal income tax return for the
16		taxable year under subsection (k) of Section 168 of
17		the Internal Revenue Code;
18		(E-11) If the taxpayer sells, transfers, abandons,
19		or otherwise disposes of property for which the
20		taxpayer was required in any taxable year to make an
21		addition modification under subparagraph (E-10), then
22		an amount equal to the aggregate amount of the
23		deductions taken in all taxable years under
24		subparagraph (T) with respect to that property.
25		If the taxpayer continues to own property through
26		the last day of the last tax year for which a

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1		subtraction is allowed with respect to that property
2		under subparagraph (T) and for which the taxpayer was
3		allowed in any taxable year to make a subtraction
4		modification under subparagraph (T), then an amount
5		equal to that subtraction modification.
6		The taxpayer is required to make the addition
7		modification under this subparagraph only once with
8		respect to any one piece of property;
9		(E-12) An amount equal to the amount otherwise
10		allowed as a deduction in computing base income for
11		interest paid, accrued, or incurred, directly or
12		indirectly, (i) for taxable years ending on or after
13		December 31, 2004, to a foreign person who would be a
14		member of the same unitary business group but for the
15		fact the foreign person's business activity outside
16		the United States is 80% or more of the foreign
17		person's total business activity and (ii) for taxable
18		years ending on or after December 31, 2008, to a person
19		who would be a member of the same unitary business
20		group but for the fact that the person is prohibited
21		under Section 1501(a)(27) from being included in the
22		unitary business group because he or she is ordinarily
23		required to apportion business income under different
24		subsections of Section 304. The addition modification
25		required by this subparagraph shall be reduced to the
26		extent that dividends were included in base income of

HB4951 Enrolled - 1161 - LRB103 38094 HLH 68226 b
1		the unitary group for the same taxable year and
2		received by the taxpayer or by a member of the
3		taxpayer's unitary business group (including amounts
4		included in gross income pursuant to Sections 951
5		through 964 of the Internal Revenue Code and amounts
6		included in gross income under Section 78 of the
7		Internal Revenue Code) with respect to the stock of
8		the same person to whom the interest was paid,
9		accrued, or incurred.
10		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 who
13		is subject in a foreign country or state, other
14		than a state which requires mandatory unitary
15		reporting, to a tax on or measured by net income
16		with respect to such interest; or
17		(ii) 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

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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		(iii) the taxpayer can establish, based on
7		clear and convincing evidence, that the interest
8		paid, accrued, or incurred relates to a contract
9		or agreement entered into at arm's-length rates
10		and terms and the principal purpose for the
11		payment is not federal or Illinois tax avoidance;
12		or
13		(iv) an item of interest paid, accrued, or
14		incurred, directly or indirectly, to a person if
15		the taxpayer establishes by clear and convincing
16		evidence that the adjustments are unreasonable; or
17		if the taxpayer and the Director agree in writing
18		to the application or use of an alternative method
19		of apportionment under Section 304(f).
20		Nothing in this subsection shall preclude the
21		Director from making any other adjustment
22		otherwise allowed under Section 404 of this Act
23		for any tax year beginning after the effective
24		date of this amendment provided such adjustment is
25		made pursuant to regulation adopted by the
26		Department and such regulations provide methods

HB4951 Enrolled - 1163 - LRB103 38094 HLH 68226 b
1		and standards by which the Department will utilize
2		its authority under Section 404 of this Act;
3		(E-13) An amount equal to the amount of intangible
4		expenses and costs otherwise allowed as a deduction in
5		computing base income, and that were paid, accrued, or
6		incurred, directly or indirectly, (i) for taxable
7		years ending on or after December 31, 2004, to a
8		foreign person who would be a member of the same
9		unitary business group but for the fact that the
10		foreign person's business activity outside the United
11		States is 80% or more of that person's total business
12		activity and (ii) for taxable years ending on or after
13		December 31, 2008, to a person who would be a member of
14		the same unitary business group but for the fact that
15		the person is prohibited under Section 1501(a)(27)
16		from being included in the unitary business group
17		because he or she is ordinarily required to apportion
18		business income under different subsections of Section
19		304. The addition modification required by this
20		subparagraph shall be reduced to the extent that
21		dividends were included in base income of the unitary
22		group for the same taxable year and received by the
23		taxpayer or by a member of the taxpayer's unitary
24		business group (including amounts included in gross
25		income pursuant to Sections 951 through 964 of the
26		Internal Revenue Code and amounts included in gross

HB4951 Enrolled - 1164 - LRB103 38094 HLH 68226 b
1		income under Section 78 of the Internal Revenue Code)
2		with respect to the stock of the same person to whom
3		the intangible expenses and costs were directly or
4		indirectly paid, incurred, or accrued. The preceding
5		sentence shall not apply to the extent that the same
6		dividends caused a reduction to the addition
7		modification required under Section 203(b)(2)(E-12) of
8		this Act. As used in this subparagraph, the term
9		"intangible expenses and costs" includes (1) expenses,
10		losses, and costs for, or related to, the direct or
11		indirect acquisition, use, maintenance or management,
12		ownership, sale, exchange, or any other disposition of
13		intangible property; (2) losses incurred, directly or
14		indirectly, from factoring transactions or discounting
15		transactions; (3) royalty, patent, technical, and
16		copyright fees; (4) licensing fees; and (5) other
17		similar expenses and costs. For purposes of this
18		subparagraph, "intangible property" includes patents,
19		patent applications, trade names, trademarks, service
20		marks, copyrights, mask works, trade secrets, and
21		similar types of intangible assets.
22		This paragraph shall not apply to the following:
23		(i) any item of intangible expenses or costs
24		paid, accrued, or incurred, directly or
25		indirectly, from a transaction with a person who
26		is subject in a foreign country or state, other

HB4951 Enrolled - 1165 - LRB103 38094 HLH 68226 b
1		than a state which requires mandatory unitary
2		reporting, to a tax on or measured by net income
3		with respect to such item; or
4		(ii) any item of intangible expense or cost
5		paid, accrued, or incurred, directly or
6		indirectly, if the taxpayer can establish, based
7		on a preponderance of the evidence, both of the
8		following:
9		(a) the person during the same taxable
10		year paid, accrued, or incurred, the
11		intangible expense or cost to a person that is
12		not a related member, and
13		(b) the transaction giving rise to the
14		intangible expense or cost between the
15		taxpayer and the person did not have as a
16		principal purpose the avoidance of Illinois
17		income tax, and is paid pursuant to a contract
18		or agreement that reflects arm's-length terms;
19		or
20		(iii) any item of intangible expense or cost
21		paid, accrued, or incurred, directly or
22		indirectly, from a transaction with a person if
23		the taxpayer establishes by clear and convincing
24		evidence, that the adjustments are unreasonable;
25		or if the taxpayer and the Director agree in
26		writing to the application or use of an

HB4951 Enrolled - 1166 - LRB103 38094 HLH 68226 b
1		alternative method of apportionment under Section
2		304(f);
3		Nothing in this subsection shall preclude the
4		Director from making any other adjustment
5		otherwise allowed under Section 404 of this Act
6		for any tax year beginning after the effective
7		date of this amendment provided such adjustment is
8		made pursuant to regulation adopted by the
9		Department and such regulations provide methods
10		and standards by which the Department will utilize
11		its authority under Section 404 of this Act;
12		(E-14) For taxable years ending on or after
13		December 31, 2008, an amount equal to the amount of
14		insurance premium expenses and costs otherwise allowed
15		as a deduction in computing base income, and that were
16		paid, accrued, or incurred, directly or indirectly, to
17		a person who would be a member of the same unitary
18		business group but for the fact that the person is
19		prohibited under Section 1501(a)(27) from being
20		included in the unitary business group because he or
21		she is ordinarily required to apportion business
22		income under different subsections of Section 304. The
23		addition modification required by this subparagraph
24		shall be reduced to the extent that dividends were
25		included in base income of the unitary group for the
26		same taxable year and received by the taxpayer or by a

HB4951 Enrolled - 1167 - LRB103 38094 HLH 68226 b
1		member of the taxpayer's unitary business group
2		(including amounts included in gross income under
3		Sections 951 through 964 of the Internal Revenue Code
4		and amounts included in gross income under Section 78
5		of the Internal Revenue Code) with respect to the
6		stock of the same person to whom the premiums and costs
7		were directly or indirectly paid, incurred, or
8		accrued. The preceding sentence does not apply to the
9		extent that the same dividends caused a reduction to
10		the addition modification required under Section
11		203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
12		Act;
13		(E-15) For taxable years beginning after December
14		31, 2008, any deduction for dividends paid by a
15		captive real estate investment trust that is allowed
16		to a real estate investment trust under Section
17		857(b)(2)(B) of the Internal Revenue Code for
18		dividends paid;
19		(E-16) An amount equal to the credit allowable to
20		the taxpayer under Section 218(a) of this Act,
21		determined without regard to Section 218(c) of this
22		Act;
23		(E-17) For taxable years ending on or after
24		December 31, 2017, an amount equal to the deduction
25		allowed under Section 199 of the Internal Revenue Code
26		for the taxable year;

HB4951 Enrolled - 1168 - LRB103 38094 HLH 68226 b
1		(E-18) for taxable years beginning after December
2		31, 2018, an amount equal to the deduction allowed
3		under Section 250(a)(1)(A) of the Internal Revenue
4		Code for the taxable year;
5		(E-19) for taxable years ending on or after June
6		30, 2021, an amount equal to the deduction allowed
7		under Section 250(a)(1)(B)(i) of the Internal Revenue
8		Code for the taxable year;
9		(E-20) for taxable years ending on or after June
10		30, 2021, an amount equal to the deduction allowed
11		under Sections 243(e) and 245A(a) of the Internal
12		Revenue Code for the taxable year; .
13		(E-21) the amount that is claimed as a federal
14		deduction when computing the taxpayer's federal
15		taxable income for the taxable year and that is
16		attributable to an endowment gift for which the
17		taxpayer receives a credit under the Illinois Gives
18		Tax Credit Act;
19		and by deducting from the total so obtained the sum of the
20		following amounts:
21		(F) An amount equal to the amount of any tax
22		imposed by this Act which was refunded to the taxpayer
23		and included in such total for the taxable year;
24		(G) An amount equal to any amount included in such
25		total under Section 78 of the Internal Revenue Code;
26		(H) In the case of a regulated investment company,

HB4951 Enrolled - 1169 - LRB103 38094 HLH 68226 b
1		an amount equal to the amount of exempt interest
2		dividends as defined in subsection (b)(5) of Section
3		852 of the Internal Revenue Code, paid to shareholders
4		for the taxable year;
5		(I) With the exception of any amounts subtracted
6		under subparagraph (J), an amount equal to the sum of
7		all amounts disallowed as deductions by (i) Sections
8		171(a)(2) and 265(a)(2) and amounts disallowed as
9		interest expense by Section 291(a)(3) of the Internal
10		Revenue Code, and all amounts of expenses allocable to
11		interest and disallowed as deductions by Section
12		265(a)(1) of the Internal Revenue Code; and (ii) for
13		taxable years ending on or after August 13, 1999,
14		Sections 171(a)(2), 265, 280C, 291(a)(3), and
15		832(b)(5)(B)(i) of the Internal Revenue Code, plus,
16		for tax years ending on or after December 31, 2011,
17		amounts disallowed as deductions by Section 45G(e)(3)
18		of the Internal Revenue Code and, for taxable years
19		ending on or after December 31, 2008, any amount
20		included in gross income under Section 87 of the
21		Internal Revenue Code and the policyholders' share of
22		tax-exempt interest of a life insurance company under
23		Section 807(a)(2)(B) of the Internal Revenue Code (in
24		the case of a life insurance company with gross income
25		from a decrease in reserves for the tax year) or
26		Section 807(b)(1)(B) of the Internal Revenue Code (in

HB4951 Enrolled - 1170 - LRB103 38094 HLH 68226 b
1		the case of a life insurance company allowed a
2		deduction for an increase in reserves for the tax
3		year); the provisions of this subparagraph are exempt
4		from the provisions of Section 250;
5		(J) An amount equal to all amounts included in
6		such total which are exempt from taxation by this
7		State either by reason of its statutes or Constitution
8		or by reason of the Constitution, treaties or statutes
9		of the United States; provided that, in the case of any
10		statute of this State that exempts income derived from
11		bonds or other obligations from the tax imposed under
12		this Act, the amount exempted shall be the interest
13		net of bond premium amortization;
14		(K) An amount equal to those dividends included in
15		such total which were paid by a corporation which
16		conducts business operations in a River Edge
17		Redevelopment Zone or zones created under the River
18		Edge Redevelopment Zone Act and conducts substantially
19		all of its operations in a River Edge Redevelopment
20		Zone or zones. This subparagraph (K) is exempt from
21		the provisions of Section 250;
22		(L) An amount equal to those dividends included in
23		such total that were paid by a corporation that
24		conducts business operations in a federally designated
25		Foreign Trade Zone or Sub-Zone and that is designated
26		a High Impact Business located in Illinois; provided

HB4951 Enrolled - 1171 - LRB103 38094 HLH 68226 b
1		that dividends eligible for the deduction provided in
2		subparagraph (K) of paragraph 2 of this subsection
3		shall not be eligible for the deduction provided under
4		this subparagraph (L);
5		(M) For any taxpayer that is a financial
6		organization within the meaning of Section 304(c) of
7		this Act, an amount included in such total as interest
8		income from a loan or loans made by such taxpayer to a
9		borrower, to the extent that such a loan is secured by
10		property which is eligible for the River Edge
11		Redevelopment Zone Investment Credit. To determine the
12		portion of a loan or loans that is secured by property
13		eligible for a Section 201(f) investment credit to the
14		borrower, the entire principal amount of the loan or
15		loans between the taxpayer and the borrower should be
16		divided into the basis of the Section 201(f)
17		investment credit property which secures the loan or
18		loans, using for this purpose the original basis of
19		such property on the date that it was placed in service
20		in the River Edge Redevelopment Zone. The subtraction
21		modification available to the taxpayer in any year
22		under this subsection shall be that portion of the
23		total interest paid by the borrower with respect to
24		such loan attributable to the eligible property as
25		calculated under the previous sentence. This
26		subparagraph (M) is exempt from the provisions of

HB4951 Enrolled - 1172 - LRB103 38094 HLH 68226 b
1		Section 250;
2		(M-1) For any taxpayer that is a financial
3		organization within the meaning of Section 304(c) of
4		this Act, an amount included in such total as interest
5		income from a loan or loans made by such taxpayer to a
6		borrower, to the extent that such a loan is secured by
7		property which is eligible for the High Impact
8		Business Investment Credit. To determine the portion
9		of a loan or loans that is secured by property eligible
10		for a Section 201(h) investment credit to the
11		borrower, the entire principal amount of the loan or
12		loans between the taxpayer and the borrower should be
13		divided into the basis of the Section 201(h)
14		investment credit property which secures the loan or
15		loans, using for this purpose the original basis of
16		such property on the date that it was placed in service
17		in a federally designated Foreign Trade Zone or
18		Sub-Zone located in Illinois. No taxpayer that is
19		eligible for the deduction provided in subparagraph
20		(M) of paragraph (2) of this subsection shall be
21		eligible for the deduction provided under this
22		subparagraph (M-1). The subtraction modification
23		available to taxpayers in any year under this
24		subsection shall be that portion of the total interest
25		paid by the borrower with respect to such loan
26		attributable to the eligible property as calculated

HB4951 Enrolled - 1173 - LRB103 38094 HLH 68226 b
1		under the previous sentence;
2		(N) Two times any contribution made during the
3		taxable year to a designated zone organization to the
4		extent that the contribution (i) qualifies as a
5		charitable contribution under subsection (c) of
6		Section 170 of the Internal Revenue Code and (ii)
7		must, by its terms, be used for a project approved by
8		the Department of Commerce and Economic Opportunity
9		under Section 11 of the Illinois Enterprise Zone Act
10		or under Section 10-10 of the River Edge Redevelopment
11		Zone Act. This subparagraph (N) is exempt from the
12		provisions of Section 250;
13		(O) An amount equal to: (i) 85% for taxable years
14		ending on or before December 31, 1992, or, a
15		percentage equal to the percentage allowable under
16		Section 243(a)(1) of the Internal Revenue Code of 1986
17		for taxable years ending after December 31, 1992, of
18		the amount by which dividends included in taxable
19		income and received from a corporation that is not
20		created or organized under the laws of the United
21		States or any state or political subdivision thereof,
22		including, for taxable years ending on or after
23		December 31, 1988, dividends received or deemed
24		received or paid or deemed paid under Sections 951
25		through 965 of the Internal Revenue Code, exceed the
26		amount of the modification provided under subparagraph

HB4951 Enrolled - 1174 - LRB103 38094 HLH 68226 b
1		(G) of paragraph (2) of this subsection (b) which is
2		related to such dividends, and including, for taxable
3		years ending on or after December 31, 2008, dividends
4		received from a captive real estate investment trust;
5		plus (ii) 100% of the amount by which dividends,
6		included in taxable income and received, including,
7		for taxable years ending on or after December 31,
8		1988, dividends received or deemed received or paid or
9		deemed paid under Sections 951 through 964 of the
10		Internal Revenue Code and including, for taxable years
11		ending on or after December 31, 2008, dividends
12		received from a captive real estate investment trust,
13		from any such corporation specified in clause (i) that
14		would but for the provisions of Section 1504(b)(3) of
15		the Internal Revenue Code be treated as a member of the
16		affiliated group which includes the dividend
17		recipient, exceed the amount of the modification
18		provided under subparagraph (G) of paragraph (2) of
19		this subsection (b) which is related to such
20		dividends. For taxable years ending on or after June
21		30, 2021, (i) for purposes of this subparagraph, the
22		term "dividend" does not include any amount treated as
23		a dividend under Section 1248 of the Internal Revenue
24		Code, and (ii) this subparagraph shall not apply to
25		dividends for which a deduction is allowed under
26		Section 245(a) of the Internal Revenue Code. This

HB4951 Enrolled - 1175 - LRB103 38094 HLH 68226 b
1		subparagraph (O) is exempt from the provisions of
2		Section 250 of this Act;
3		(P) An amount equal to any contribution made to a
4		job training project established pursuant to the Tax
5		Increment Allocation Redevelopment Act;
6		(Q) An amount equal to the amount of the deduction
7		used to compute the federal income tax credit for
8		restoration of substantial amounts held under claim of
9		right for the taxable year pursuant to Section 1341 of
10		the Internal Revenue Code;
11		(R) On and after July 20, 1999, in the case of an
12		attorney-in-fact with respect to whom an interinsurer
13		or a reciprocal insurer has made the election under
14		Section 835 of the Internal Revenue Code, 26 U.S.C.
15		835, an amount equal to the excess, if any, of the
16		amounts paid or incurred by that interinsurer or
17		reciprocal insurer in the taxable year to the
18		attorney-in-fact over the deduction allowed to that
19		interinsurer or reciprocal insurer with respect to the
20		attorney-in-fact under Section 835(b) of the Internal
21		Revenue Code for the taxable year; the provisions of
22		this subparagraph are exempt from the provisions of
23		Section 250;
24		(S) For taxable years ending on or after December
25		31, 1997, in the case of a Subchapter S corporation, an
26		amount equal to all amounts of income allocable to a

HB4951 Enrolled - 1176 - LRB103 38094 HLH 68226 b
1		shareholder subject to the Personal Property Tax
2		Replacement Income Tax imposed by subsections (c) and
3		(d) of Section 201 of this Act, including amounts
4		allocable to organizations exempt from federal income
5		tax by reason of Section 501(a) of the Internal
6		Revenue Code. This subparagraph (S) is exempt from the
7		provisions of Section 250;
8		(T) For taxable years 2001 and thereafter, for the
9		taxable year in which the bonus depreciation deduction
10		is taken on the taxpayer's federal income tax return
11		under subsection (k) of Section 168 of the Internal
12		Revenue Code and for each applicable taxable year
13		thereafter, an amount equal to "x", where:
14		(1) "y" equals the amount of the depreciation
15		deduction taken for the taxable year on the
16		taxpayer's federal income tax return on property
17		for which the bonus depreciation deduction was
18		taken in any year under subsection (k) of Section
19		168 of the Internal Revenue Code, but not
20		including the bonus depreciation deduction;
21		(2) for taxable years ending on or before
22		December 31, 2005, "x" equals "y" multiplied by 30
23		and then divided by 70 (or "y" multiplied by
24		0.429); and
25		(3) for taxable years ending after December
26		31, 2005:

HB4951 Enrolled - 1177 - LRB103 38094 HLH 68226 b
1		(i) for property on which a bonus
2		depreciation deduction of 30% of the adjusted
3		basis was taken, "x" equals "y" multiplied by
4		30 and then divided by 70 (or "y" multiplied
5		by 0.429);
6		(ii) for property on which a bonus
7		depreciation deduction of 50% of the adjusted
8		basis was taken, "x" equals "y" multiplied by
9		1.0;
10		(iii) for property on which a bonus
11		depreciation deduction of 100% of the adjusted
12		basis was taken in a taxable year ending on or
13		after December 31, 2021, "x" equals the
14		depreciation deduction that would be allowed
15		on that property if the taxpayer had made the
16		election under Section 168(k)(7) of the
17		Internal Revenue Code to not claim bonus
18		depreciation on that property; and
19		(iv) for property on which a bonus
20		depreciation deduction of a percentage other
21		than 30%, 50% or 100% of the adjusted basis
22		was taken in a taxable year ending on or after
23		December 31, 2021, "x" equals "y" multiplied
24		by 100 times the percentage bonus depreciation
25		on the property (that is, 100(bonus%)) and
26		then divided by 100 times 1 minus the

HB4951 Enrolled - 1178 - LRB103 38094 HLH 68226 b
1		percentage bonus depreciation on the property
2		(that is, 100(1-bonus%)).
3		The aggregate amount deducted under this
4		subparagraph in all taxable years for any one piece of
5		property may not exceed the amount of the bonus
6		depreciation deduction taken on that property on the
7		taxpayer's federal income tax return under subsection
8		(k) of Section 168 of the Internal Revenue Code. This
9		subparagraph (T) is exempt from the provisions of
10		Section 250;
11		(U) If the taxpayer sells, transfers, abandons, or
12		otherwise disposes of property for which the taxpayer
13		was required in any taxable year to make an addition
14		modification under subparagraph (E-10), then an amount
15		equal to that addition modification.
16		If the taxpayer continues to own property through
17		the last day of the last tax year for which a
18		subtraction is allowed with respect to that property
19		under subparagraph (T) and for which the taxpayer was
20		required in any taxable year to make an addition
21		modification under subparagraph (E-10), then an amount
22		equal to that addition modification.
23		The taxpayer is allowed to take the deduction
24		under this subparagraph only once with respect to any
25		one piece of property.
26		This subparagraph (U) is exempt from the

HB4951 Enrolled - 1179 - LRB103 38094 HLH 68226 b
1		provisions of Section 250;
2		(V) The amount of: (i) any interest income (net of
3		the deductions allocable thereto) taken into account
4		for the taxable year with respect to a transaction
5		with a taxpayer that is required to make an addition
6		modification with respect to such transaction under
7		Section 203(a)(2)(D-17), 203(b)(2)(E-12),
8		203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
9		the amount of such addition modification, (ii) any
10		income from intangible property (net of the deductions
11		allocable thereto) taken into account for the taxable
12		year with respect to a transaction with a taxpayer
13		that is required to make an addition modification with
14		respect to such transaction under Section
15		203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
16		203(d)(2)(D-8), but not to exceed the amount of such
17		addition modification, and (iii) any insurance premium
18		income (net of deductions allocable thereto) taken
19		into account for the taxable year with respect to a
20		transaction with a taxpayer that is required to make
21		an addition modification with respect to such
22		transaction under Section 203(a)(2)(D-19), Section
23		203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
24		203(d)(2)(D-9), but not to exceed the amount of that
25		addition modification. This subparagraph (V) is exempt
26		from the provisions of Section 250;

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1		(W) An amount equal to the interest income taken
2		into account for the taxable year (net of the
3		deductions allocable thereto) with respect to
4		transactions with (i) a foreign person who would be a
5		member of the taxpayer's unitary business group but
6		for the fact that the foreign person's business
7		activity outside the United States is 80% or more of
8		that person's total business activity and (ii) for
9		taxable years ending on or after December 31, 2008, to
10		a person who would be a member of the same unitary
11		business group but for the fact that the person is
12		prohibited under Section 1501(a)(27) from being
13		included in the unitary business group because he or
14		she is ordinarily required to apportion business
15		income under different subsections of Section 304, but
16		not to exceed the addition modification required to be
17		made for the same taxable year under Section
18		203(b)(2)(E-12) for interest paid, accrued, or
19		incurred, directly or indirectly, to the same person.
20		This subparagraph (W) is exempt from the provisions of
21		Section 250;
22		(X) An amount equal to the income from intangible
23		property taken into account for the taxable year (net
24		of the deductions allocable thereto) with respect to
25		transactions with (i) a foreign person who would be a
26		member of the taxpayer's unitary business group but

HB4951 Enrolled - 1181 - LRB103 38094 HLH 68226 b
1		for the fact that the foreign person's business
2		activity outside the United States is 80% or more of
3		that person's total business activity and (ii) for
4		taxable years ending on or after December 31, 2008, to
5		a person who would be a member of the same unitary
6		business group but for the fact that the person is
7		prohibited under Section 1501(a)(27) from being
8		included in the unitary business group because he or
9		she is ordinarily required to apportion business
10		income under different subsections of Section 304, but
11		not to exceed the addition modification required to be
12		made for the same taxable year under Section
13		203(b)(2)(E-13) for intangible expenses and costs
14		paid, accrued, or incurred, directly or indirectly, to
15		the same foreign person. This subparagraph (X) is
16		exempt from the provisions of Section 250;
17		(Y) For taxable years ending on or after December
18		31, 2011, in the case of a taxpayer who was required to
19		add back any insurance premiums under Section
20		203(b)(2)(E-14), such taxpayer may elect to subtract
21		that part of a reimbursement received from the
22		insurance company equal to the amount of the expense
23		or loss (including expenses incurred by the insurance
24		company) that would have been taken into account as a
25		deduction for federal income tax purposes if the
26		expense or loss had been uninsured. If a taxpayer

HB4951 Enrolled - 1182 - LRB103 38094 HLH 68226 b
1		makes the election provided for by this subparagraph
2		(Y), the insurer to which the premiums were paid must
3		add back to income the amount subtracted by the
4		taxpayer pursuant to this subparagraph (Y). This
5		subparagraph (Y) is exempt from the provisions of
6		Section 250;
7		(Z) The difference between the nondeductible
8		controlled foreign corporation dividends under Section
9		965(e)(3) of the Internal Revenue Code over the
10		taxable income of the taxpayer, computed without
11		regard to Section 965(e)(2)(A) of the Internal Revenue
12		Code, and without regard to any net operating loss
13		deduction. This subparagraph (Z) is exempt from the
14		provisions of Section 250; and
15		(AA) For taxable years beginning on or after
16		January 1, 2023, for any cannabis establishment
17		operating in this State and licensed under the
18		Cannabis Regulation and Tax Act or any cannabis
19		cultivation center or medical cannabis dispensing
20		organization operating in this State and licensed
21		under the Compassionate Use of Medical Cannabis
22		Program Act, an amount equal to the deductions that
23		were disallowed under Section 280E of the Internal
24		Revenue Code for the taxable year and that would not be
25		added back under this subsection. The provisions of
26		this subparagraph (AA) are exempt from the provisions

HB4951 Enrolled - 1183 - LRB103 38094 HLH 68226 b
1		of Section 250.
2		(3) Special rule. For purposes of paragraph (2)(A),
3		"gross income" in the case of a life insurance company,
4		for tax years ending on and after December 31, 1994, and
5		prior to December 31, 2011, shall mean the gross
6		investment income for the taxable year and, for tax years
7		ending on or after December 31, 2011, shall mean all
8		amounts included in life insurance gross income under
9		Section 803(a)(3) of the Internal Revenue Code.
10		(c) Trusts and estates.
11		(1) In general. In the case of a trust or estate, base
12		income means an amount equal to the taxpayer's taxable
13		income for the taxable year as modified by paragraph (2).
14		(2) Modifications. Subject to the provisions of
15		paragraph (3), the taxable income referred to in paragraph
16		(1) shall be modified by adding thereto the sum of the
17		following amounts:
18		(A) An amount equal to all amounts paid or accrued
19		to the taxpayer as interest or dividends during the
20		taxable year to the extent excluded from gross income
21		in the computation of taxable income;
22		(B) In the case of (i) an estate, $600; (ii) a
23		trust which, under its governing instrument, is
24		required to distribute all of its income currently,
25		$300; and (iii) any other trust, $100, but in each such

HB4951 Enrolled - 1184 - LRB103 38094 HLH 68226 b
1		case, only to the extent such amount was deducted in
2		the computation of taxable income;
3		(C) An amount equal to the amount of tax imposed by
4		this Act to the extent deducted from gross income in
5		the computation of taxable income for the taxable
6		year;
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 taxable year, with
19		the following limitations applied in the order that
20		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

HB4951 Enrolled - 1185 - LRB103 38094 HLH 68226 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		(F) For taxable years ending on or after January
16		1, 1989, an amount equal to the tax deducted pursuant
17		to Section 164 of the Internal Revenue Code if the
18		trust or estate is claiming the same tax for purposes
19		of the Illinois foreign tax credit under Section 601
20		of this Act;
21		(G) An amount equal to the amount of the capital
22		gain deduction allowable under the Internal Revenue
23		Code, to the extent deducted from gross income in the
24		computation of taxable income;
25		(G-5) For taxable years ending after December 31,
26		1997, an amount equal to any eligible remediation

HB4951 Enrolled - 1186 - LRB103 38094 HLH 68226 b
1		costs that the trust or estate deducted in computing
2		adjusted gross income and for which the trust or
3		estate claims a credit under subsection (l) of Section
4		201;
5		(G-10) For taxable years 2001 and thereafter, an
6		amount equal to the bonus depreciation deduction taken
7		on the taxpayer's federal income tax return for the
8		taxable year under subsection (k) of Section 168 of
9		the Internal Revenue Code; and
10		(G-11) If the taxpayer sells, transfers, abandons,
11		or otherwise disposes of property for which the
12		taxpayer was required in any taxable year to make an
13		addition modification under subparagraph (G-10), then
14		an amount equal to the aggregate amount of the
15		deductions taken in all taxable years under
16		subparagraph (R) with respect to that property.
17		If the taxpayer continues to own property through
18		the last day of the last tax year for which a
19		subtraction is allowed with respect to that property
20		under subparagraph (R) and for which the taxpayer was
21		allowed in any taxable year to make a subtraction
22		modification under subparagraph (R), then an amount
23		equal to that subtraction modification.
24		The taxpayer is required to make the addition
25		modification under this subparagraph only once with
26		respect to any one piece of property;

HB4951 Enrolled - 1187 - LRB103 38094 HLH 68226 b
1		(G-12) An amount equal to the amount otherwise
2		allowed as a deduction in computing base income for
3		interest paid, accrued, or incurred, directly or
4		indirectly, (i) for taxable years ending on or after
5		December 31, 2004, to a foreign person who would be a
6		member of the same unitary business group but for the
7		fact that the foreign person's business activity
8		outside the United States is 80% or more of the foreign
9		person's total business activity and (ii) for taxable
10		years ending on or after December 31, 2008, to a person
11		who would be a member of the same unitary business
12		group but for the fact that the person is prohibited
13		under Section 1501(a)(27) from being included in the
14		unitary business group because he or she is ordinarily
15		required to apportion business income under different
16		subsections of Section 304. The addition modification
17		required by this subparagraph shall be reduced to the
18		extent that dividends were included in base income of
19		the unitary group for the same taxable year and
20		received by the taxpayer or by a member of the
21		taxpayer's unitary business group (including amounts
22		included in gross income pursuant to Sections 951
23		through 964 of the Internal Revenue Code and amounts
24		included in gross income under Section 78 of the
25		Internal Revenue Code) with respect to the stock of
26		the same person to whom the interest was paid,

HB4951 Enrolled - 1188 - LRB103 38094 HLH 68226 b
1		accrued, or incurred.
2		This paragraph shall not apply to the following:
3		(i) an item of interest paid, accrued, or
4		incurred, directly or indirectly, to a person who
5		is subject in a foreign country or state, other
6		than a state which requires mandatory unitary
7		reporting, to a tax on or measured by net income
8		with respect to such interest; or
9		(ii) an item of interest paid, accrued, or
10		incurred, directly or indirectly, to a person if
11		the taxpayer can establish, based on a
12		preponderance of the evidence, both of the
13		following:
14		(a) the person, during the same taxable
15		year, paid, accrued, or incurred, the interest
16		to a person that is not a related member, and
17		(b) the transaction giving rise to the
18		interest expense between the taxpayer and the
19		person did not have as a principal purpose the
20		avoidance of Illinois income tax, and is paid
21		pursuant to a contract or agreement that
22		reflects an arm's-length interest rate and
23		terms; or
24		(iii) the taxpayer can establish, based on
25		clear and convincing evidence, that the interest
26		paid, accrued, or incurred relates to a contract

HB4951 Enrolled - 1189 - LRB103 38094 HLH 68226 b
1		or agreement entered into at arm's-length rates
2		and terms and the principal purpose for the
3		payment is not federal or Illinois tax avoidance;
4		or
5		(iv) an item of interest paid, accrued, or
6		incurred, directly or indirectly, to a person if
7		the taxpayer establishes by clear and convincing
8		evidence that the adjustments are unreasonable; or
9		if the taxpayer and the Director agree in writing
10		to the application or use of an alternative method
11		of apportionment under Section 304(f).
12		Nothing in this subsection shall preclude the
13		Director from making any other adjustment
14		otherwise allowed under Section 404 of this Act
15		for any tax year beginning after the effective
16		date of this amendment provided such adjustment is
17		made pursuant to regulation adopted by the
18		Department and such regulations provide methods
19		and standards by which the Department will utilize
20		its authority under Section 404 of this Act;
21		(G-13) An amount equal to the amount of intangible
22		expenses and costs otherwise allowed as a deduction in
23		computing base income, and that were paid, accrued, or
24		incurred, directly or indirectly, (i) for taxable
25		years ending on or after December 31, 2004, to a
26		foreign person who would be a member of the same

HB4951 Enrolled - 1190 - LRB103 38094 HLH 68226 b
1		unitary business group but for the fact that the
2		foreign person's business activity outside the United
3		States is 80% or more of that person's total business
4		activity and (ii) for taxable years ending on or after
5		December 31, 2008, to a person who would be a member of
6		the same unitary business group but for the fact that
7		the person is prohibited under Section 1501(a)(27)
8		from being included in the unitary business group
9		because he or she is ordinarily required to apportion
10		business income under different subsections of Section
11		304. The addition modification required by this
12		subparagraph shall be reduced to the extent that
13		dividends were included in base income of the unitary
14		group for the same taxable year and received by the
15		taxpayer or by a member of the taxpayer's unitary
16		business group (including amounts included in gross
17		income pursuant to Sections 951 through 964 of the
18		Internal Revenue Code and amounts included in gross
19		income under Section 78 of the Internal Revenue Code)
20		with respect to the stock of the same person to whom
21		the intangible expenses and costs were directly or
22		indirectly paid, incurred, or accrued. The preceding
23		sentence shall not apply to the extent that the same
24		dividends caused a reduction to the addition
25		modification required under Section 203(c)(2)(G-12) of
26		this Act. As used in this subparagraph, the term

HB4951 Enrolled - 1191 - LRB103 38094 HLH 68226 b
1		"intangible expenses and costs" includes: (1)
2		expenses, losses, and costs for or related to the
3		direct or indirect acquisition, use, maintenance or
4		management, ownership, sale, exchange, or any other
5		disposition of intangible property; (2) losses
6		incurred, directly or indirectly, from factoring
7		transactions or discounting transactions; (3) royalty,
8		patent, technical, and copyright fees; (4) licensing
9		fees; and (5) other similar expenses and costs. For
10		purposes of this subparagraph, "intangible property"
11		includes patents, patent applications, trade names,
12		trademarks, service marks, copyrights, mask works,
13		trade secrets, and similar types of intangible assets.
14		This paragraph shall not apply to the following:
15		(i) any item of intangible expenses or costs
16		paid, accrued, or incurred, directly or
17		indirectly, from a transaction with a person who
18		is subject in a foreign country or state, other
19		than a state which requires mandatory unitary
20		reporting, to a tax on or measured by net income
21		with respect to such item; or
22		(ii) any item of intangible expense or cost
23		paid, accrued, or incurred, directly or
24		indirectly, if the taxpayer can establish, based
25		on a preponderance of the evidence, both of the
26		following:

HB4951 Enrolled - 1192 - LRB103 38094 HLH 68226 b
1		(a) the person during the same taxable
2		year paid, accrued, or incurred, the
3		intangible expense or cost to a person that is
4		not a related member, and
5		(b) the transaction giving rise to the
6		intangible expense or cost between the
7		taxpayer and the person did not have as a
8		principal purpose the avoidance of Illinois
9		income tax, and is paid pursuant to a contract
10		or agreement that reflects arm's-length terms;
11		or
12		(iii) any item of intangible expense or cost
13		paid, accrued, or incurred, directly or
14		indirectly, from a transaction with a person if
15		the taxpayer establishes by clear and convincing
16		evidence, that the adjustments are unreasonable;
17		or if the taxpayer and the Director agree in
18		writing to the application or use of an
19		alternative method of apportionment under Section
20		304(f);
21		Nothing in this subsection shall preclude the
22		Director from making any other adjustment
23		otherwise allowed under Section 404 of this Act
24		for any tax year beginning after the effective
25		date of this amendment provided such adjustment is
26		made pursuant to regulation adopted by the

HB4951 Enrolled - 1193 - LRB103 38094 HLH 68226 b
1		Department and such regulations provide methods
2		and standards by which the Department will utilize
3		its authority under Section 404 of this Act;
4		(G-14) For taxable years ending on or after
5		December 31, 2008, an amount equal to the amount of
6		insurance premium expenses and costs otherwise allowed
7		as a deduction in computing base income, and that were
8		paid, accrued, or incurred, directly or indirectly, 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. The
15		addition modification required by this subparagraph
16		shall be reduced to the extent that dividends were
17		included in base income of the unitary group for the
18		same taxable year and received by the taxpayer or by a
19		member of the taxpayer's unitary business group
20		(including amounts included in gross income under
21		Sections 951 through 964 of the Internal Revenue Code
22		and amounts included in gross income under Section 78
23		of the Internal Revenue Code) with respect to the
24		stock of the same person to whom the premiums and costs
25		were directly or indirectly paid, incurred, or
26		accrued. The preceding sentence does not apply to the

HB4951 Enrolled - 1194 - LRB103 38094 HLH 68226 b
1		extent that the same dividends caused a reduction to
2		the addition modification required under Section
3		203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
4		Act;
5		(G-15) An amount equal to the credit allowable to
6		the taxpayer under Section 218(a) of this Act,
7		determined without regard to Section 218(c) of this
8		Act;
9		(G-16) For taxable years ending on or after
10		December 31, 2017, an amount equal to the deduction
11		allowed under Section 199 of the Internal Revenue Code
12		for the taxable year;
13		(G-17) the amount that is claimed as a federal
14		deduction when computing the taxpayer's federal
15		taxable income for the taxable year and that is
16		attributable to an endowment gift for which the
17		taxpayer receives a credit under the Illinois Gives
18		Tax Credit Act;
19		and by deducting from the total so obtained the sum of the
20		following amounts:
21		(H) An amount equal to all amounts included in
22		such total pursuant to the provisions of Sections
23		402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
24		of the Internal Revenue Code or included in such total
25		as distributions under the provisions of any
26		retirement or disability plan for employees of any

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1		governmental agency or unit, or retirement payments to
2		retired partners, which payments are excluded in
3		computing net earnings from self employment by Section
4		1402 of the Internal Revenue Code and regulations
5		adopted pursuant thereto;
6		(I) The valuation limitation amount;
7		(J) An amount equal to the amount of any tax
8		imposed by this Act which was refunded to the taxpayer
9		and included in such total for the taxable year;
10		(K) An amount equal to all amounts included in
11		taxable income as modified by subparagraphs (A), (B),
12		(C), (D), (E), (F) and (G) which are exempt from
13		taxation by this State either by reason of its
14		statutes or Constitution or by reason of the
15		Constitution, treaties or statutes of the United
16		States; provided that, in the case of any statute of
17		this State that exempts income derived from bonds or
18		other obligations from the tax imposed under this Act,
19		the amount exempted shall be the interest net of bond
20		premium amortization;
21		(L) With the exception of any amounts subtracted
22		under subparagraph (K), an amount equal to the sum of
23		all amounts disallowed as deductions by (i) Sections
24		171(a)(2) and 265(a)(2) of the Internal Revenue Code,
25		and all amounts of expenses allocable to interest and
26		disallowed as deductions by Section 265(a)(1) of the

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1		Internal Revenue Code; and (ii) for taxable years
2		ending on or after August 13, 1999, Sections
3		171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
4		Internal Revenue Code, plus, (iii) for taxable years
5		ending on or after December 31, 2011, Section
6		45G(e)(3) of the Internal Revenue Code and, for
7		taxable years ending on or after December 31, 2008,
8		any amount included in gross income under Section 87
9		of the Internal Revenue Code; the provisions of this
10		subparagraph are exempt from the provisions of Section
11		250;
12		(M) An amount equal to those dividends included in
13		such total which were paid by a corporation which
14		conducts business operations in a River Edge
15		Redevelopment Zone or zones created under the River
16		Edge Redevelopment Zone Act and conducts substantially
17		all of its operations in a River Edge Redevelopment
18		Zone or zones. This subparagraph (M) is exempt from
19		the provisions of Section 250;
20		(N) An amount equal to any contribution made to a
21		job training project established pursuant to the Tax
22		Increment Allocation Redevelopment Act;
23		(O) An amount equal to those dividends included in
24		such total that were paid by a corporation that
25		conducts business operations in a federally designated
26		Foreign Trade Zone or Sub-Zone and that is designated

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1		a High Impact Business located in Illinois; provided
2		that dividends eligible for the deduction provided in
3		subparagraph (M) of paragraph (2) of this subsection
4		shall not be eligible for the deduction provided under
5		this subparagraph (O);
6		(P) An amount equal to the amount of the deduction
7		used to compute the federal income tax credit for
8		restoration of substantial amounts held under claim of
9		right for the taxable year pursuant to Section 1341 of
10		the Internal Revenue Code;
11		(Q) For taxable year 1999 and thereafter, an
12		amount equal to the amount of any (i) distributions,
13		to the extent includible in gross income for federal
14		income tax purposes, made to the taxpayer because of
15		his or her status as a victim of persecution for racial
16		or religious reasons by Nazi Germany or any other Axis
17		regime or as an heir of the victim and (ii) items of
18		income, to the extent includible in gross income for
19		federal income tax purposes, attributable to, derived
20		from or in any way related to assets stolen from,
21		hidden from, or otherwise lost to a victim of
22		persecution for racial or religious reasons by Nazi
23		Germany or any other Axis regime immediately prior to,
24		during, and immediately after World War II, including,
25		but not limited to, interest on the proceeds
26		receivable as insurance under policies issued to a

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1		victim of persecution for racial or religious reasons
2		by Nazi Germany or any other Axis regime by European
3		insurance companies immediately prior to and during
4		World War II; provided, however, this subtraction from
5		federal adjusted gross income does not apply to assets
6		acquired with such assets or with the proceeds from
7		the sale of such assets; provided, further, this
8		paragraph shall only apply to a taxpayer who was the
9		first recipient of such assets after their recovery
10		and who is a victim of persecution for racial or
11		religious reasons by Nazi Germany or any other Axis
12		regime or as an heir of the victim. The amount of and
13		the eligibility for any public assistance, benefit, or
14		similar entitlement is not affected by the inclusion
15		of items (i) and (ii) of this paragraph in gross income
16		for federal income tax purposes. This paragraph is
17		exempt from the provisions of Section 250;
18		(R) For taxable years 2001 and thereafter, for the
19		taxable year in which the bonus depreciation deduction
20		is taken on the taxpayer's federal income tax return
21		under subsection (k) of Section 168 of the Internal
22		Revenue Code and for each applicable taxable year
23		thereafter, an amount equal to "x", where:
24		(1) "y" equals the amount of the depreciation
25		deduction taken for the taxable year on the
26		taxpayer's federal income tax return on property

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1		for which the bonus depreciation deduction was
2		taken in any year under subsection (k) of Section
3		168 of the Internal Revenue Code, but not
4		including the bonus depreciation deduction;
5		(2) for taxable years ending on or before
6		December 31, 2005, "x" equals "y" multiplied by 30
7		and then divided by 70 (or "y" multiplied by
8		0.429); and
9		(3) for taxable years ending after December
10		31, 2005:
11		(i) for property on which a bonus
12		depreciation deduction of 30% of the adjusted
13		basis was taken, "x" equals "y" multiplied by
14		30 and then divided by 70 (or "y" multiplied
15		by 0.429);
16		(ii) for property on which a bonus
17		depreciation deduction of 50% of the adjusted
18		basis was taken, "x" equals "y" multiplied by
19		1.0;
20		(iii) for property on which a bonus
21		depreciation deduction of 100% of the adjusted
22		basis was taken in a taxable year ending on or
23		after December 31, 2021, "x" equals the
24		depreciation deduction that would be allowed
25		on that property if the taxpayer had made the
26		election under Section 168(k)(7) of the

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1		Internal Revenue Code to not claim bonus
2		depreciation on that property; and
3		(iv) for property on which a bonus
4		depreciation deduction of a percentage other
5		than 30%, 50% or 100% of the adjusted basis
6		was taken in a taxable year ending on or after
7		December 31, 2021, "x" equals "y" multiplied
8		by 100 times the percentage bonus depreciation
9		on the property (that is, 100(bonus%)) and
10		then divided by 100 times 1 minus the
11		percentage bonus depreciation on the property
12		(that is, 100(1-bonus%)).
13		The aggregate amount deducted under this
14		subparagraph in all taxable years for any one piece of
15		property may not exceed the amount of the bonus
16		depreciation deduction taken on that property on the
17		taxpayer's federal income tax return under subsection
18		(k) of Section 168 of the Internal Revenue Code. This
19		subparagraph (R) is exempt from the provisions of
20		Section 250;
21		(S) If the taxpayer sells, transfers, abandons, or
22		otherwise disposes of property for which the taxpayer
23		was required in any taxable year to make an addition
24		modification under subparagraph (G-10), then an amount
25		equal to that addition modification.
26		If the taxpayer continues to own property through

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1		the last day of the last tax year for which a
2		subtraction is allowed with respect to that property
3		under subparagraph (R) and for which the taxpayer was
4		required in any taxable year to make an addition
5		modification under subparagraph (G-10), then an amount
6		equal to that addition modification.
7		The taxpayer is allowed to take the deduction
8		under this subparagraph only once with respect to any
9		one piece of property.
10		This subparagraph (S) is exempt from the
11		provisions of Section 250;
12		(T) The amount of (i) any interest income (net of
13		the deductions allocable thereto) taken into account
14		for the taxable year with respect to a transaction
15		with a taxpayer that is required to make an addition
16		modification with respect to such transaction under
17		Section 203(a)(2)(D-17), 203(b)(2)(E-12),
18		203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
19		the amount of such addition modification and (ii) any
20		income from intangible property (net of the deductions
21		allocable thereto) taken into account for the taxable
22		year with respect to a transaction with a taxpayer
23		that is required to make an addition modification with
24		respect to such transaction under Section
25		203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
26		203(d)(2)(D-8), but not to exceed the amount of such

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1		addition modification. This subparagraph (T) is exempt
2		from the provisions of Section 250;
3		(U) An amount equal to the interest income taken
4		into account for the taxable year (net of the
5		deductions allocable thereto) with respect to
6		transactions with (i) a foreign person who would be a
7		member of the taxpayer's unitary business group but
8		for the fact the foreign person's business activity
9		outside the United States is 80% or more of that
10		person's total business activity and (ii) for taxable
11		years ending on or after December 31, 2008, to a person
12		who would be a member of the same unitary business
13		group but for the fact that the person is prohibited
14		under Section 1501(a)(27) from being included in the
15		unitary business group because he or she is ordinarily
16		required to apportion business income under different
17		subsections of Section 304, but not to exceed the
18		addition modification required to be made for the same
19		taxable year under Section 203(c)(2)(G-12) for
20		interest paid, accrued, or incurred, directly or
21		indirectly, to the same person. This subparagraph (U)
22		is exempt from the provisions of Section 250;
23		(V) An amount equal to the income from intangible
24		property taken into account for the taxable year (net
25		of the deductions allocable thereto) with respect to
26		transactions with (i) a foreign person who would be a

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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(c)(2)(G-13) for intangible expenses and costs
15		paid, accrued, or incurred, directly or indirectly, to
16		the same foreign person. This subparagraph (V) is
17		exempt from the provisions of Section 250;
18		(W) in the case of an estate, an amount equal to
19		all amounts included in such total pursuant to the
20		provisions of Section 111 of the Internal Revenue Code
21		as a recovery of items previously deducted by the
22		decedent from adjusted gross income in the computation
23		of taxable income. This subparagraph (W) is exempt
24		from Section 250;
25		(X) an amount equal to the refund included in such
26		total of any tax deducted for federal income tax

HB4951 Enrolled - 1204 - LRB103 38094 HLH 68226 b
1		purposes, to the extent that deduction was added back
2		under subparagraph (F). This subparagraph (X) is
3		exempt from the provisions of Section 250;
4		(Y) For taxable years ending on or after December
5		31, 2011, in the case of a taxpayer who was required to
6		add back any insurance premiums under Section
7		203(c)(2)(G-14), such taxpayer may elect to subtract
8		that part of a reimbursement received from the
9		insurance company equal to the amount of the expense
10		or loss (including expenses incurred by the insurance
11		company) that would have been taken into account as a
12		deduction for federal income tax purposes if the
13		expense or loss had been uninsured. If a taxpayer
14		makes the election provided for by this subparagraph
15		(Y), the insurer to which the premiums were paid must
16		add back to income the amount subtracted by the
17		taxpayer pursuant to this subparagraph (Y). This
18		subparagraph (Y) is exempt from the provisions of
19		Section 250;
20		(Z) For taxable years beginning after December 31,
21		2018 and before January 1, 2026, the amount of excess
22		business loss of the taxpayer disallowed as a
23		deduction by Section 461(l)(1)(B) of the Internal
24		Revenue Code; and
25		(AA) For taxable years beginning on or after
26		January 1, 2023, for any cannabis establishment

HB4951 Enrolled - 1205 - LRB103 38094 HLH 68226 b
1		operating in this State and licensed under the
2		Cannabis Regulation and Tax Act or any cannabis
3		cultivation center or medical cannabis dispensing
4		organization operating in this State and licensed
5		under the Compassionate Use of Medical Cannabis
6		Program Act, an amount equal to the deductions that
7		were disallowed under Section 280E of the Internal
8		Revenue Code for the taxable year and that would not be
9		added back under this subsection. The provisions of
10		this subparagraph (AA) are exempt from the provisions
11		of Section 250.
12		(3) Limitation. The amount of any modification
13		otherwise required under this subsection shall, under
14		regulations prescribed by the Department, be adjusted by
15		any amounts included therein which were properly paid,
16		credited, or required to be distributed, or permanently
17		set aside for charitable purposes pursuant to Internal
18		Revenue Code Section 642(c) during the taxable year.
19		(d) Partnerships.
20		(1) In general. In the case of a partnership, base
21		income means an amount equal to the taxpayer's taxable
22		income for the taxable year as modified by paragraph (2).
23		(2) Modifications. The taxable income referred to in
24		paragraph (1) shall be modified by adding thereto the sum
25		of the following amounts:

HB4951 Enrolled - 1206 - LRB103 38094 HLH 68226 b
1		(A) An amount equal to all amounts paid or accrued
2		to the taxpayer as interest or dividends during the
3		taxable year to the extent excluded from gross income
4		in the computation of taxable income;
5		(B) An amount equal to the amount of tax imposed by
6		this Act to the extent deducted from gross income for
7		the taxable year;
8		(C) The amount of deductions allowed to the
9		partnership pursuant to Section 707 (c) of the
10		Internal Revenue Code in calculating its taxable
11		income;
12		(D) An amount equal to the amount of the capital
13		gain deduction allowable under the Internal Revenue
14		Code, to the extent deducted from gross income in the
15		computation of taxable income;
16		(D-5) For taxable years 2001 and thereafter, an
17		amount equal to the bonus depreciation deduction taken
18		on the taxpayer's federal income tax return for the
19		taxable year under subsection (k) of Section 168 of
20		the Internal Revenue Code;
21		(D-6) If the taxpayer sells, transfers, abandons,
22		or otherwise disposes of property for which the
23		taxpayer was required in any taxable year to make an
24		addition modification under subparagraph (D-5), then
25		an amount equal to the aggregate amount of the
26		deductions taken in all taxable years under

HB4951 Enrolled - 1207 - LRB103 38094 HLH 68226 b
1		subparagraph (O) with respect to that property.
2		If the taxpayer continues to own property through
3		the last day of the last tax year for which a
4		subtraction is allowed with respect to that property
5		under subparagraph (O) and for which the taxpayer was
6		allowed in any taxable year to make a subtraction
7		modification under subparagraph (O), then an amount
8		equal to that subtraction modification.
9		The taxpayer is required to make the addition
10		modification under this subparagraph only once with
11		respect to any one piece of property;
12		(D-7) An amount equal to the amount otherwise
13		allowed as a deduction in computing base income for
14		interest paid, accrued, or incurred, directly or
15		indirectly, (i) for taxable years ending on or after
16		December 31, 2004, to a foreign person who would be a
17		member of the same unitary business group but for the
18		fact the foreign person's business activity outside
19		the United States is 80% or more of the foreign
20		person's total business activity and (ii) for taxable
21		years ending on or after December 31, 2008, to a person
22		who would be a member of the same unitary business
23		group but for the fact that the person is prohibited
24		under Section 1501(a)(27) from being included in the
25		unitary business group because he or she is ordinarily
26		required to apportion business income under different

HB4951 Enrolled - 1208 - LRB103 38094 HLH 68226 b
1		subsections of Section 304. The addition modification
2		required by this subparagraph shall be reduced to the
3		extent that dividends were included in base income of
4		the unitary group for the same taxable year and
5		received by the taxpayer or by a member of the
6		taxpayer's unitary business group (including amounts
7		included in gross income pursuant to Sections 951
8		through 964 of the Internal Revenue Code and amounts
9		included in gross income under Section 78 of the
10		Internal Revenue Code) with respect to the stock of
11		the same person to whom the interest was paid,
12		accrued, or incurred.
13		This paragraph shall not apply to the following:
14		(i) an item of interest paid, accrued, or
15		incurred, directly or indirectly, to a person who
16		is subject in a foreign country or state, other
17		than a state which requires mandatory unitary
18		reporting, to a tax on or measured by net income
19		with respect to such interest; or
20		(ii) an item of interest paid, accrued, or
21		incurred, directly or indirectly, to a person if
22		the taxpayer can establish, based on a
23		preponderance of the evidence, both of the
24		following:
25		(a) the person, during the same taxable
26		year, paid, accrued, or incurred, the interest

HB4951 Enrolled - 1209 - LRB103 38094 HLH 68226 b
1		to a person that is not a related member, and
2		(b) the transaction giving rise to the
3		interest expense between the taxpayer and the
4		person did not have as a principal purpose the
5		avoidance of Illinois income tax, and is paid
6		pursuant to a contract or agreement that
7		reflects an arm's-length interest rate and
8		terms; or
9		(iii) the taxpayer can establish, based on
10		clear and convincing evidence, that the interest
11		paid, accrued, or incurred relates to a contract
12		or agreement entered into at arm's-length rates
13		and terms and the principal purpose for the
14		payment is not federal or Illinois tax avoidance;
15		or
16		(iv) an item of interest paid, accrued, or
17		incurred, directly or indirectly, to a person if
18		the taxpayer establishes by clear and convincing
19		evidence that the adjustments are unreasonable; or
20		if the taxpayer and the Director agree in writing
21		to the application or use of an alternative method
22		of apportionment under Section 304(f).
23		Nothing in this subsection shall preclude the
24		Director from making any other adjustment
25		otherwise allowed under Section 404 of this Act
26		for any tax year beginning after the effective

HB4951 Enrolled - 1210 - LRB103 38094 HLH 68226 b
1		date of this amendment provided such adjustment is
2		made pursuant to regulation adopted by the
3		Department and such regulations provide methods
4		and standards by which the Department will utilize
5		its authority under Section 404 of this Act; and
6		(D-8) An amount equal to the amount of intangible
7		expenses and costs otherwise allowed as a deduction in
8		computing base income, and that were paid, accrued, or
9		incurred, directly or indirectly, (i) for taxable
10		years ending on or after December 31, 2004, to a
11		foreign person who would be a member of the same
12		unitary business group but for the fact that the
13		foreign person's business activity outside the United
14		States is 80% or more of that person's total business
15		activity and (ii) for taxable years ending on or after
16		December 31, 2008, to a person who would be a member of
17		the same unitary business group but for the fact that
18		the person is prohibited under Section 1501(a)(27)
19		from being included in the unitary business group
20		because he or she is ordinarily required to apportion
21		business income under different subsections of Section
22		304. The addition modification required by this
23		subparagraph shall be reduced to the extent that
24		dividends were included in base income of the unitary
25		group for the same taxable year and received by the
26		taxpayer or by a member of the taxpayer's unitary

HB4951 Enrolled - 1211 - LRB103 38094 HLH 68226 b
1		business group (including amounts included in gross
2		income pursuant to Sections 951 through 964 of the
3		Internal Revenue Code and amounts included in gross
4		income under Section 78 of the Internal Revenue Code)
5		with respect to the stock of the same person to whom
6		the intangible expenses and costs were directly or
7		indirectly paid, incurred or accrued. The preceding
8		sentence shall not apply to the extent that the same
9		dividends caused a reduction to the addition
10		modification required under Section 203(d)(2)(D-7) of
11		this Act. As used in this subparagraph, the term
12		"intangible expenses and costs" includes (1) expenses,
13		losses, and costs for, or related to, the direct or
14		indirect acquisition, use, maintenance or management,
15		ownership, sale, exchange, or any other disposition of
16		intangible property; (2) losses incurred, directly or
17		indirectly, from factoring transactions or discounting
18		transactions; (3) royalty, patent, technical, and
19		copyright fees; (4) licensing fees; and (5) other
20		similar expenses and costs. For purposes of this
21		subparagraph, "intangible property" includes patents,
22		patent applications, trade names, trademarks, service
23		marks, copyrights, mask works, trade secrets, and
24		similar types of intangible assets;
25		This paragraph shall not apply to the following:
26		(i) any item of intangible expenses or costs

HB4951 Enrolled - 1212 - LRB103 38094 HLH 68226 b
1		paid, accrued, or incurred, directly or
2		indirectly, from a transaction with 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 item; or
7		(ii) any item of intangible expense or cost
8		paid, accrued, or incurred, directly or
9		indirectly, if the taxpayer can establish, based
10		on a preponderance of the evidence, both of the
11		following:
12		(a) the person during the same taxable
13		year paid, accrued, or incurred, the
14		intangible expense or cost to a person that is
15		not a related member, and
16		(b) the transaction giving rise to the
17		intangible expense or cost between the
18		taxpayer and the person did not have as a
19		principal purpose the avoidance of Illinois
20		income tax, and is paid pursuant to a contract
21		or agreement that reflects arm's-length terms;
22		or
23		(iii) any item of intangible expense or cost
24		paid, accrued, or incurred, directly or
25		indirectly, from a transaction with a person if
26		the taxpayer establishes by clear and convincing

HB4951 Enrolled - 1213 - LRB103 38094 HLH 68226 b
1		evidence, that the adjustments are unreasonable;
2		or if the taxpayer and the Director agree in
3		writing to the application or use of an
4		alternative method of apportionment under Section
5		304(f);
6		Nothing in this subsection shall preclude the
7		Director from making any other adjustment
8		otherwise allowed under Section 404 of this Act
9		for any tax year beginning after the effective
10		date of this amendment provided such adjustment is
11		made pursuant to regulation adopted by the
12		Department and such regulations provide methods
13		and standards by which the Department will utilize
14		its authority under Section 404 of this Act;
15		(D-9) For taxable years ending on or after
16		December 31, 2008, an amount equal to the amount of
17		insurance premium expenses and costs otherwise allowed
18		as a deduction in computing base income, and that were
19		paid, accrued, or incurred, directly or indirectly, to
20		a person who would be a member of the same unitary
21		business group but for the fact that the person is
22		prohibited under Section 1501(a)(27) from being
23		included in the unitary business group because he or
24		she is ordinarily required to apportion business
25		income under different subsections of Section 304. The
26		addition modification required by this subparagraph

HB4951 Enrolled - 1214 - LRB103 38094 HLH 68226 b
1		shall be reduced to the extent that dividends were
2		included in base income of the unitary group for the
3		same taxable year and received by the taxpayer or by a
4		member of the taxpayer's unitary business group
5		(including amounts included in gross income under
6		Sections 951 through 964 of the Internal Revenue Code
7		and amounts included in gross income under Section 78
8		of the Internal Revenue Code) with respect to the
9		stock of the same person to whom the premiums and costs
10		were directly or indirectly paid, incurred, or
11		accrued. The preceding sentence does not apply to the
12		extent that the same dividends caused a reduction to
13		the addition modification required under Section
14		203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
15		(D-10) An amount equal to the credit allowable to
16		the taxpayer under Section 218(a) of this Act,
17		determined without regard to Section 218(c) of this
18		Act;
19		(D-11) For taxable years ending on or after
20		December 31, 2017, an amount equal to the deduction
21		allowed under Section 199 of the Internal Revenue Code
22		for the taxable year;
23		(D-12) the amount that is claimed as a federal
24		deduction when computing the taxpayer's federal
25		taxable income for the taxable year and that is
26		attributable to an endowment gift for which the

HB4951 Enrolled - 1215 - LRB103 38094 HLH 68226 b
1		taxpayer receives a credit under the Illinois Gives
2		Tax Credit Act;
3		and by deducting from the total so obtained the following
4		amounts:
5		(E) The valuation limitation amount;
6		(F) An amount equal to the amount of any tax
7		imposed by this Act which was refunded to the taxpayer
8		and included in such total for the taxable year;
9		(G) An amount equal to all amounts included in
10		taxable income as modified by subparagraphs (A), (B),
11		(C) and (D) which are exempt from taxation by this
12		State either by reason of its statutes or Constitution
13		or by reason of the Constitution, treaties or statutes
14		of the United States; provided that, in the case of any
15		statute of this State that exempts income derived from
16		bonds or other obligations from the tax imposed under
17		this Act, the amount exempted shall be the interest
18		net of bond premium amortization;
19		(H) Any income of the partnership which
20		constitutes personal service income as defined in
21		Section 1348(b)(1) of the Internal Revenue Code (as in
22		effect December 31, 1981) or a reasonable allowance
23		for compensation paid or accrued for services rendered
24		by partners to the partnership, whichever is greater;
25		this subparagraph (H) is exempt from the provisions of
26		Section 250;

HB4951 Enrolled - 1216 - LRB103 38094 HLH 68226 b
1		(I) An amount equal to all amounts of income
2		distributable to an entity subject to the Personal
3		Property Tax Replacement Income Tax imposed by
4		subsections (c) and (d) of Section 201 of this Act
5		including amounts distributable to organizations
6		exempt from federal income tax by reason of Section
7		501(a) of the Internal Revenue Code; this subparagraph
8		(I) is exempt from the provisions of Section 250;
9		(J) With the exception of any amounts subtracted
10		under subparagraph (G), an amount equal to the sum of
11		all amounts disallowed as deductions by (i) Sections
12		171(a)(2) and 265(a)(2) of the Internal Revenue Code,
13		and all amounts of expenses allocable to interest and
14		disallowed as deductions by Section 265(a)(1) of the
15		Internal Revenue Code; and (ii) for taxable years
16		ending on or after August 13, 1999, Sections
17		171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
18		Internal Revenue Code, plus, (iii) for taxable years
19		ending on or after December 31, 2011, Section
20		45G(e)(3) of the Internal Revenue Code and, for
21		taxable years ending on or after December 31, 2008,
22		any amount included in gross income under Section 87
23		of the Internal Revenue Code; the provisions of this
24		subparagraph are exempt from the provisions of Section
25		250;
26		(K) An amount equal to those dividends included in

HB4951 Enrolled - 1217 - LRB103 38094 HLH 68226 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 substantially
5		all of its operations from a River Edge Redevelopment
6		Zone or zones. This subparagraph (K) is exempt from
7		the provisions of Section 250;
8		(L) An amount equal to any contribution made to a
9		job training project established pursuant to the Real
10		Property Tax Increment Allocation Redevelopment Act;
11		(M) An amount equal to those dividends included in
12		such total that were paid by a corporation that
13		conducts business operations in a federally designated
14		Foreign Trade Zone or Sub-Zone and that is designated
15		a High Impact Business located in Illinois; provided
16		that dividends eligible for the deduction provided in
17		subparagraph (K) of paragraph (2) of this subsection
18		shall not be eligible for the deduction provided under
19		this subparagraph (M);
20		(N) An amount equal to the amount of the deduction
21		used to compute the federal income tax credit for
22		restoration of substantial amounts held under claim of
23		right for the taxable year pursuant to Section 1341 of
24		the Internal Revenue Code;
25		(O) For taxable years 2001 and thereafter, for the
26		taxable year in which the bonus depreciation deduction

HB4951 Enrolled - 1218 - LRB103 38094 HLH 68226 b
1		is taken on the taxpayer's federal income tax return
2		under subsection (k) of Section 168 of the Internal
3		Revenue Code and for each applicable taxable year
4		thereafter, an amount equal to "x", where:
5		(1) "y" equals the amount of the depreciation
6		deduction taken for the taxable year on the
7		taxpayer's federal income tax return on property
8		for which the bonus depreciation deduction was
9		taken in any year under subsection (k) of Section
10		168 of the Internal Revenue Code, but not
11		including the bonus depreciation deduction;
12		(2) for taxable years ending on or before
13		December 31, 2005, "x" equals "y" multiplied by 30
14		and then divided by 70 (or "y" multiplied by
15		0.429); and
16		(3) for taxable years ending after December
17		31, 2005:
18		(i) for property on which a bonus
19		depreciation deduction of 30% of the adjusted
20		basis was taken, "x" equals "y" multiplied by
21		30 and then divided by 70 (or "y" multiplied
22		by 0.429);
23		(ii) for property on which a bonus
24		depreciation deduction of 50% of the adjusted
25		basis was taken, "x" equals "y" multiplied by
26		1.0;

HB4951 Enrolled - 1219 - LRB103 38094 HLH 68226 b
1		(iii) for property on which a bonus
2		depreciation deduction of 100% of the adjusted
3		basis was taken in a taxable year ending on or
4		after December 31, 2021, "x" equals the
5		depreciation deduction that would be allowed
6		on that property if the taxpayer had made the
7		election under Section 168(k)(7) of the
8		Internal Revenue Code to not claim bonus
9		depreciation on that property; and
10		(iv) for property on which a bonus
11		depreciation deduction of a percentage other
12		than 30%, 50% or 100% of the adjusted basis
13		was taken in a taxable year ending on or after
14		December 31, 2021, "x" equals "y" multiplied
15		by 100 times the percentage bonus depreciation
16		on the property (that is, 100(bonus%)) and
17		then divided by 100 times 1 minus the
18		percentage bonus depreciation on the property
19		(that is, 100(1-bonus%)).
20		The aggregate amount deducted under this
21		subparagraph in all taxable years for any one piece of
22		property may not exceed the amount of the bonus
23		depreciation deduction taken on that property on the
24		taxpayer's federal income tax return under subsection
25		(k) of Section 168 of the Internal Revenue Code. This
26		subparagraph (O) is exempt from the provisions of

HB4951 Enrolled - 1220 - LRB103 38094 HLH 68226 b
1		Section 250;
2		(P) If the taxpayer sells, transfers, abandons, or
3		otherwise disposes of property for which the taxpayer
4		was required in any taxable year to make an addition
5		modification under subparagraph (D-5), then an amount
6		equal to that addition modification.
7		If the taxpayer continues to own property through
8		the last day of the last tax year for which a
9		subtraction is allowed with respect to that property
10		under subparagraph (O) and for which the taxpayer was
11		required in any taxable year to make an addition
12		modification under subparagraph (D-5), then an amount
13		equal to that addition modification.
14		The taxpayer is allowed to take the deduction
15		under this subparagraph only once with respect to any
16		one piece of property.
17		This subparagraph (P) is exempt from the
18		provisions of Section 250;
19		(Q) The amount of (i) any interest income (net of
20		the deductions allocable thereto) taken into account
21		for the taxable year with respect to a transaction
22		with a taxpayer that is required to make an addition
23		modification with respect to such transaction under
24		Section 203(a)(2)(D-17), 203(b)(2)(E-12),
25		203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
26		the amount of such addition modification and (ii) any

HB4951 Enrolled - 1221 - LRB103 38094 HLH 68226 b
1		income from intangible property (net of the deductions
2		allocable thereto) taken into account for the taxable
3		year with respect to a transaction with a taxpayer
4		that is required to make an addition modification with
5		respect to such transaction under Section
6		203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
7		203(d)(2)(D-8), but not to exceed the amount of such
8		addition modification. This subparagraph (Q) is exempt
9		from Section 250;
10		(R) An amount equal to the interest income taken
11		into account for the taxable year (net of the
12		deductions allocable thereto) with respect to
13		transactions with (i) a foreign person who would be a
14		member of the taxpayer's unitary business group but
15		for the fact that the foreign person's business
16		activity outside the United States is 80% or more of
17		that person's total business activity and (ii) for
18		taxable years ending on or after December 31, 2008, to
19		a person who would be a member of the same unitary
20		business group but for the fact that the person is
21		prohibited under Section 1501(a)(27) from being
22		included in the unitary business group because he or
23		she is ordinarily required to apportion business
24		income under different subsections of Section 304, but
25		not to exceed the addition modification required to be
26		made for the same taxable year under Section

HB4951 Enrolled - 1222 - LRB103 38094 HLH 68226 b
1		203(d)(2)(D-7) for interest paid, accrued, or
2		incurred, directly or indirectly, to the same person.
3		This subparagraph (R) is exempt from Section 250;
4		(S) An amount equal to the income from intangible
5		property taken into account for the taxable year (net
6		of the deductions allocable thereto) with respect to
7		transactions with (i) a foreign person who would be a
8		member of the taxpayer's unitary business group but
9		for the fact that the foreign person's business
10		activity outside the United States is 80% or more of
11		that person's total business activity and (ii) for
12		taxable years ending on or after December 31, 2008, to
13		a person who would be a member of the same unitary
14		business group but for the fact that the person is
15		prohibited under Section 1501(a)(27) from being
16		included in the unitary business group because he or
17		she is ordinarily required to apportion business
18		income under different subsections of Section 304, but
19		not to exceed the addition modification required to be
20		made for the same taxable year under Section
21		203(d)(2)(D-8) for intangible expenses and costs paid,
22		accrued, or incurred, directly or indirectly, to the
23		same person. This subparagraph (S) is exempt from
24		Section 250;
25		(T) For taxable years ending on or after December
26		31, 2011, in the case of a taxpayer who was required to

HB4951 Enrolled - 1223 - LRB103 38094 HLH 68226 b
1		add back any insurance premiums under Section
2		203(d)(2)(D-9), such taxpayer may elect to subtract
3		that part of a reimbursement received from the
4		insurance company equal to the amount of the expense
5		or loss (including expenses incurred by the insurance
6		company) that would have been taken into account as a
7		deduction for federal income tax purposes if the
8		expense or loss had been uninsured. If a taxpayer
9		makes the election provided for by this subparagraph
10		(T), the insurer to which the premiums were paid must
11		add back to income the amount subtracted by the
12		taxpayer pursuant to this subparagraph (T). This
13		subparagraph (T) is exempt from the provisions of
14		Section 250; and
15		(U) For taxable years beginning on or after
16		January 1, 2023, for any cannabis establishment
17		operating in this State and licensed under the
18		Cannabis Regulation and Tax Act or any cannabis
19		cultivation center or medical cannabis dispensing
20		organization operating in this State and licensed
21		under the Compassionate Use of Medical Cannabis
22		Program Act, an amount equal to the deductions that
23		were disallowed under Section 280E of the Internal
24		Revenue Code for the taxable year and that would not be
25		added back under this subsection. The provisions of
26		this subparagraph (U) are exempt from the provisions

HB4951 Enrolled - 1224 - LRB103 38094 HLH 68226 b
1		of Section 250.
2		(e) Gross income; adjusted gross income; taxable income.
3		(1) In general. Subject to the provisions of paragraph
4		(2) and subsection (b)(3), for purposes of this Section
5		and Section 803(e), a taxpayer's gross income, adjusted
6		gross income, or taxable income for the taxable year shall
7		mean the amount of gross income, adjusted gross income or
8		taxable income properly reportable for federal income tax
9		purposes for the taxable year under the provisions of the
10		Internal Revenue Code. Taxable income may be less than
11		zero. However, for taxable years ending on or after
12		December 31, 1986, net operating loss carryforwards from
13		taxable years ending prior to December 31, 1986, may not
14		exceed the sum of federal taxable income for the taxable
15		year before net operating loss deduction, plus the excess
16		of addition modifications over subtraction modifications
17		for the taxable year. For taxable years ending prior to
18		December 31, 1986, taxable income may never be an amount
19		in excess of the net operating loss for the taxable year as
20		defined in subsections (c) and (d) of Section 172 of the
21		Internal Revenue Code, provided that when taxable income
22		of a corporation (other than a Subchapter S corporation),
23		trust, or estate is less than zero and addition
24		modifications, other than those provided by subparagraph
25		(E) of paragraph (2) of subsection (b) for corporations or

HB4951 Enrolled - 1225 - LRB103 38094 HLH 68226 b
1		subparagraph (E) of paragraph (2) of subsection (c) for
2		trusts and estates, exceed subtraction modifications, an
3		addition modification must be made under those
4		subparagraphs for any other taxable year to which the
5		taxable income less than zero (net operating loss) is
6		applied under Section 172 of the Internal Revenue Code or
7		under subparagraph (E) of paragraph (2) of this subsection
8		(e) applied in conjunction with Section 172 of the
9		Internal Revenue Code.
10		(2) Special rule. For purposes of paragraph (1) of
11		this subsection, the taxable income properly reportable
12		for federal income tax purposes shall mean:
13		(A) Certain life insurance companies. In the case
14		of a life insurance company subject to the tax imposed
15		by Section 801 of the Internal Revenue Code, life
16		insurance company taxable income, plus the amount of
17		distribution from pre-1984 policyholder surplus
18		accounts as calculated under Section 815a of the
19		Internal Revenue Code;
20		(B) Certain other insurance companies. In the case
21		of mutual insurance companies subject to the tax
22		imposed by Section 831 of the Internal Revenue Code,
23		insurance company taxable income;
24		(C) Regulated investment companies. In the case of
25		a regulated investment company subject to the tax
26		imposed by Section 852 of the Internal Revenue Code,

HB4951 Enrolled - 1226 - LRB103 38094 HLH 68226 b
1		investment company taxable income;
2		(D) Real estate investment trusts. In the case of
3		a real estate investment trust subject to the tax
4		imposed by Section 857 of the Internal Revenue Code,
5		real estate investment trust taxable income;
6		(E) Consolidated corporations. In the case of a
7		corporation which is a member of an affiliated group
8		of corporations filing a consolidated income tax
9		return for the taxable year for federal income tax
10		purposes, taxable income determined as if such
11		corporation had filed a separate return for federal
12		income tax purposes for the taxable year and each
13		preceding taxable year for which it was a member of an
14		affiliated group. For purposes of this subparagraph,
15		the taxpayer's separate taxable income shall be
16		determined as if the election provided by Section
17		243(b)(2) of the Internal Revenue Code had been in
18		effect for all such years;
19		(F) Cooperatives. In the case of a cooperative
20		corporation or association, the taxable income of such
21		organization determined in accordance with the
22		provisions of Section 1381 through 1388 of the
23		Internal Revenue Code, but without regard to the
24		prohibition against offsetting losses from patronage
25		activities against income from nonpatronage
26		activities; except that a cooperative corporation or

HB4951 Enrolled - 1227 - LRB103 38094 HLH 68226 b
1		association may make an election to follow its federal
2		income tax treatment of patronage losses and
3		nonpatronage losses. In the event such election is
4		made, such losses shall be computed and carried over
5		in a manner consistent with subsection (a) of Section
6		207 of this Act and apportioned by the apportionment
7		factor reported by the cooperative on its Illinois
8		income tax return filed for the taxable year in which
9		the losses are incurred. The election shall be
10		effective for all taxable years with original returns
11		due on or after the date of the election. In addition,
12		the cooperative may file an amended return or returns,
13		as allowed under this Act, to provide that the
14		election shall be effective for losses incurred or
15		carried forward for taxable years occurring prior to
16		the date of the election. Once made, the election may
17		only be revoked upon approval of the Director. The
18		Department shall adopt rules setting forth
19		requirements for documenting the elections and any
20		resulting Illinois net loss and the standards to be
21		used by the Director in evaluating requests to revoke
22		elections. Public Act 96-932 is declaratory of
23		existing law;
24		(G) Subchapter S corporations. In the case of: (i)
25		a Subchapter S corporation for which there is in
26		effect an election for the taxable year under Section

HB4951 Enrolled - 1228 - LRB103 38094 HLH 68226 b
1		1362 of the Internal Revenue Code, the taxable income
2		of such corporation determined in accordance with
3		Section 1363(b) of the Internal Revenue Code, except
4		that taxable income shall take into account those
5		items which are required by Section 1363(b)(1) of the
6		Internal Revenue Code to be separately stated; and
7		(ii) a Subchapter S corporation for which there is in
8		effect a federal election to opt out of the provisions
9		of the Subchapter S Revision Act of 1982 and have
10		applied instead the prior federal Subchapter S rules
11		as in effect on July 1, 1982, the taxable income of
12		such corporation determined in accordance with the
13		federal Subchapter S rules as in effect on July 1,
14		1982; and
15		(H) Partnerships. In the case of a partnership,
16		taxable income determined in accordance with Section
17		703 of the Internal Revenue Code, except that taxable
18		income shall take into account those items which are
19		required by Section 703(a)(1) to be separately stated
20		but which would be taken into account by an individual
21		in calculating his taxable income.
22		(3) Recapture of business expenses on disposition of
23		asset or business. Notwithstanding any other law to the
24		contrary, if in prior years income from an asset or
25		business has been classified as business income and in a
26		later year is demonstrated to be non-business income, then

HB4951 Enrolled - 1229 - LRB103 38094 HLH 68226 b
1		all expenses, without limitation, deducted in such later
2		year and in the 2 immediately preceding taxable years
3		related to that asset or business that generated the
4		non-business income shall be added back and recaptured as
5		business income in the year of the disposition of the
6		asset or business. Such amount shall be apportioned to
7		Illinois using the greater of the apportionment fraction
8		computed for the business under Section 304 of this Act
9		for the taxable year or the average of the apportionment
10		fractions computed for the business under Section 304 of
11		this Act for the taxable year and for the 2 immediately
12		preceding taxable years.
13		(f) Valuation limitation amount.
14		(1) In general. The valuation limitation amount
15		referred to in subsections (a)(2)(G), (c)(2)(I) and
16		(d)(2)(E) is an amount equal to:
17		(A) The sum of the pre-August 1, 1969 appreciation
18		amounts (to the extent consisting of gain reportable
19		under the provisions of Section 1245 or 1250 of the
20		Internal Revenue Code) for all property in respect of
21		which such gain was reported for the taxable year;
22		plus
23		(B) The lesser of (i) the sum of the pre-August 1,
24		1969 appreciation amounts (to the extent consisting of
25		capital gain) for all property in respect of which

HB4951 Enrolled - 1230 - LRB103 38094 HLH 68226 b
1		such gain was reported for federal income tax purposes
2		for the taxable year, or (ii) the net capital gain for
3		the taxable year, reduced in either case by any amount
4		of such gain included in the amount determined under
5		subsection (a)(2)(F) or (c)(2)(H).
6		(2) Pre-August 1, 1969 appreciation amount.
7		(A) If the fair market value of property referred
8		to in paragraph (1) was readily ascertainable on
9		August 1, 1969, the pre-August 1, 1969 appreciation
10		amount for such property is the lesser of (i) the
11		excess of such fair market value over the taxpayer's
12		basis (for determining gain) for such property on that
13		date (determined under the Internal Revenue Code as in
14		effect on that date), or (ii) the total gain realized
15		and reportable for federal income tax purposes in
16		respect of the sale, exchange or other disposition of
17		such property.
18		(B) If the fair market value of property referred
19		to in paragraph (1) was not readily ascertainable on
20		August 1, 1969, the pre-August 1, 1969 appreciation
21		amount for such property is that amount which bears
22		the same ratio to the total gain reported in respect of
23		the property for federal income tax purposes for the
24		taxable year, as the number of full calendar months in
25		that part of the taxpayer's holding period for the
26		property ending July 31, 1969 bears to the number of

HB4951 Enrolled - 1231 - LRB103 38094 HLH 68226 b
1		full calendar months in the taxpayer's entire holding
2		period for the property.
3		(C) The Department shall prescribe such
4		regulations as may be necessary to carry out the
5		purposes of this paragraph.
6		(g) Double deductions. Unless specifically provided
7		otherwise, nothing in this Section shall permit the same item
8		to be deducted more than once.
9		(h) Legislative intention. Except as expressly provided by
10		this Section there shall be no modifications or limitations on
11		the amounts of income, gain, loss or deduction taken into
12		account in determining gross income, adjusted gross income or
13		taxable income for federal income tax purposes for the taxable
14		year, or in the amount of such items entering into the
15		computation of base income and net income under this Act for
16		such taxable year, whether in respect of property values as of
17		August 1, 1969 or otherwise.
18		(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
19		102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
20		12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised
21		9-26-23.)
22		(35 ILCS 5/241 new)
23		Sec. 241. The Illinois Gives tax credit.

HB4951 Enrolled - 1232 - LRB103 38094 HLH 68226 b
1		(a) For taxable years ending on or after December 31, 2025
2		and ending before January 1, 2030, each taxpayer for whom a tax
3		credit has been authorized by the Department of Revenue under
4		the Illinois Gives Tax Credit Act is entitled to a credit
5		against the tax imposed under subsections (a) and (b) of
6		Section 201 in an amount equal to the amount authorized under
7		that Act.
8		(b) For partners of partnerships and shareholders of
9		Subchapter S corporations, there is allowed a credit under
10		this Section to be determined in accordance with Section 251
11		of this Act.
12		(c) The credit may not be carried back and may not reduce
13		the taxpayer's liability to less than zero. If the amount of
14		the credit exceeds the tax liability for the year, the excess
15		may be carried forward and applied to the tax liability of the
16		5 taxable years following the excess credit year. The tax
17		credit shall be applied to the earliest year for which there is
18		a tax liability. If there are credits for more than one year
19		that are available to offset a liability, the earlier credit
20		shall be applied first.
21		ARTICLE 175.
22		Section 175-5. The Property Tax Code is amended by
23		changing Section 18-185 as follows:

HB4951 Enrolled - 1233 - LRB103 38094 HLH 68226 b
1		(35 ILCS 200/18-185)
2		Sec. 18-185. Short title; definitions. This Division 5
3		may be cited as the Property Tax Extension Limitation Law. As
4		used in this Division 5:
5		"Consumer Price Index" means the Consumer Price Index for
6		All Urban Consumers for all items published by the United
7		States Department of Labor.
8		"Extension limitation" means (a) the lesser of 5% or the
9		percentage increase in the Consumer Price Index during the
10		12-month calendar year preceding the levy year or (b) the rate
11		of increase approved by voters under Section 18-205.
12		"Affected county" means a county of 3,000,000 or more
13		inhabitants or a county contiguous to a county of 3,000,000 or
14		more inhabitants.
15		"Taxing district" has the same meaning provided in Section
16		1-150, except as otherwise provided in this Section. For the
17		1991 through 1994 levy years only, "taxing district" includes
18		only each non-home rule taxing district having the majority of
19		its 1990 equalized assessed value within any county or
20		counties contiguous to a county with 3,000,000 or more
21		inhabitants. Beginning with the 1995 levy year, "taxing
22		district" includes only each non-home rule taxing district
23		subject to this Law before the 1995 levy year and each non-home
24		rule taxing district not subject to this Law before the 1995
25		levy year having the majority of its 1994 equalized assessed
26		value in an affected county or counties. Beginning with the

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1		levy year in which this Law becomes applicable to a taxing
2		district as provided in Section 18-213, "taxing district" also
3		includes those taxing districts made subject to this Law as
4		provided in Section 18-213.
5		"Aggregate extension" for taxing districts to which this
6		Law applied before the 1995 levy year means the annual
7		corporate extension for the taxing district and those special
8		purpose extensions that are made annually for the taxing
9		district, excluding special purpose extensions: (a) made for
10		the taxing district to pay interest or principal on general
11		obligation bonds that were approved by referendum; (b) made
12		for any taxing district to pay interest or principal on
13		general obligation bonds issued before October 1, 1991; (c)
14		made for any taxing district to pay interest or principal on
15		bonds issued to refund or continue to refund those bonds
16		issued before October 1, 1991; (d) made for any taxing
17		district to pay interest or principal on bonds issued to
18		refund or continue to refund bonds issued after October 1,
19		1991 that were approved by referendum; (e) made for any taxing
20		district to pay interest or principal on revenue bonds issued
21		before October 1, 1991 for payment of which a property tax levy
22		or the full faith and credit of the unit of local government is
23		pledged; however, a tax for the payment of interest or
24		principal on those bonds shall be made only after the
25		governing body of the unit of local government finds that all
26		other sources for payment are insufficient to make those

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1		payments; (f) made for payments under a building commission
2		lease when the lease payments are for the retirement of bonds
3		issued by the commission before October 1, 1991, to pay for the
4		building project; (g) made for payments due under installment
5		contracts entered into before October 1, 1991; (h) made for
6		payments of principal and interest on bonds issued under the
7		Metropolitan Water Reclamation District Act to finance
8		construction projects initiated before October 1, 1991; (i)
9		made for payments of principal and interest on limited bonds,
10		as defined in Section 3 of the Local Government Debt Reform
11		Act, in an amount not to exceed the debt service extension base
12		less the amount in items (b), (c), (e), and (h) of this
13		definition for non-referendum obligations, except obligations
14		initially issued pursuant to referendum; (j) made for payments
15		of principal and interest on bonds issued under Section 15 of
16		the Local Government Debt Reform Act; (k) made by a school
17		district that participates in the Special Education District
18		of Lake County, created by special education joint agreement
19		under Section 10-22.31 of the School Code, for payment of the
20		school district's share of the amounts required to be
21		contributed by the Special Education District of Lake County
22		to the Illinois Municipal Retirement Fund under Article 7 of
23		the Illinois Pension Code; the amount of any extension under
24		this item (k) shall be certified by the school district to the
25		county clerk; (l) made to fund expenses of providing joint
26		recreational programs for persons with disabilities under

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1		Section 5-8 of the Park District Code or Section 11-95-14 of
2		the Illinois Municipal Code; (m) made for temporary relocation
3		loan repayment purposes pursuant to Sections 2-3.77 and
4		17-2.2d of the School Code; (n) made for payment of principal
5		and interest on any bonds issued under the authority of
6		Section 17-2.2d of the School Code; (o) made for contributions
7		to a firefighter's pension fund created under Article 4 of the
8		Illinois Pension Code, to the extent of the amount certified
9		under item (5) of Section 4-134 of the Illinois Pension Code;
10		and (p) made for road purposes in the first year after a
11		township assumes the rights, powers, duties, assets, property,
12		liabilities, obligations, and responsibilities of a road
13		district abolished under the provisions of Section 6-133 of
14		the Illinois Highway Code; and (q) made under Section 4 of the
15		Community Mental Health Act to provide the necessary funds or
16		to supplement existing funds for community mental health
17		facilities and services, including facilities and services for
18		the person with a developmental disability or a substance use
19		disorder.
20		"Aggregate extension" for the taxing districts to which
21		this Law did not apply before the 1995 levy year (except taxing
22		districts subject to this Law in accordance with Section
23		18-213) means the annual corporate extension for the taxing
24		district and those special purpose extensions that are made
25		annually for the taxing district, excluding special purpose
26		extensions: (a) made for the taxing district to pay interest

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1		or principal on general obligation bonds that were approved by
2		referendum; (b) made for any taxing district to pay interest
3		or principal on general obligation bonds issued before March
4		1, 1995; (c) made for any taxing district to pay interest or
5		principal on bonds issued to refund or continue to refund
6		those bonds issued before March 1, 1995; (d) made for any
7		taxing district to pay interest or principal on bonds issued
8		to refund or continue to refund bonds issued after March 1,
9		1995 that were approved by referendum; (e) made for any taxing
10		district to pay interest or principal on revenue bonds issued
11		before March 1, 1995 for payment of which a property tax levy
12		or the full faith and credit of the unit of local government is
13		pledged; however, a tax for the payment of interest or
14		principal on those bonds shall be made only after the
15		governing body of the unit of local government finds that all
16		other sources for payment are insufficient to make those
17		payments; (f) made for payments under a building commission
18		lease when the lease payments are for the retirement of bonds
19		issued by the commission before March 1, 1995 to pay for the
20		building project; (g) made for payments due under installment
21		contracts entered into before March 1, 1995; (h) made for
22		payments of principal and interest on bonds issued under the
23		Metropolitan Water Reclamation District Act to finance
24		construction projects initiated before October 1, 1991; (h-4)
25		made for stormwater management purposes by the Metropolitan
26		Water Reclamation District of Greater Chicago under Section 12

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1		of the Metropolitan Water Reclamation District Act; (h-8) made
2		for payments of principal and interest on bonds issued under
3		Section 9.6a of the Metropolitan Water Reclamation District
4		Act to make contributions to the pension fund established
5		under Article 13 of the Illinois Pension Code; (i) made for
6		payments of principal and interest on limited bonds, as
7		defined in Section 3 of the Local Government Debt Reform Act,
8		in an amount not to exceed the debt service extension base less
9		the amount in items (b), (c), and (e) of this definition for
10		non-referendum obligations, except obligations initially
11		issued pursuant to referendum and bonds described in
12		subsections (h) and (h-8) of this definition; (j) made for
13		payments of principal and interest on bonds issued under
14		Section 15 of the Local Government Debt Reform Act; (k) made
15		for payments of principal and interest on bonds authorized by
16		Public Act 88-503 and issued under Section 20a of the Chicago
17		Park District Act for aquarium or museum projects and bonds
18		issued under Section 20a of the Chicago Park District Act for
19		the purpose of making contributions to the pension fund
20		established under Article 12 of the Illinois Pension Code; (l)
21		made for payments of principal and interest on bonds
22		authorized by Public Act 87-1191 or 93-601 and (i) issued
23		pursuant to Section 21.2 of the Cook County Forest Preserve
24		District Act, (ii) issued under Section 42 of the Cook County
25		Forest Preserve District Act for zoological park projects, or
26		(iii) issued under Section 44.1 of the Cook County Forest

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1		Preserve District Act for botanical gardens projects; (m) made
2		pursuant to Section 34-53.5 of the School Code, whether levied
3		annually or not; (n) made to fund expenses of providing joint
4		recreational programs for persons with disabilities under
5		Section 5-8 of the Park District Code or Section 11-95-14 of
6		the Illinois Municipal Code; (o) made by the Chicago Park
7		District for recreational programs for persons with
8		disabilities under subsection (c) of Section 7.06 of the
9		Chicago Park District Act; (p) made for contributions to a
10		firefighter's pension fund created under Article 4 of the
11		Illinois Pension Code, to the extent of the amount certified
12		under item (5) of Section 4-134 of the Illinois Pension Code;
13		(q) made by Ford Heights School District 169 under Section
14		17-9.02 of the School Code; and (r) made for the purpose of
15		making employer contributions to the Public School Teachers'
16		Pension and Retirement Fund of Chicago under Section 34-53 of
17		the School Code; and (s) made under Section 4 of the Community
18		Mental Health Act to provide the necessary funds or to
19		supplement existing funds for community mental health
20		facilities and services, including facilities and services for
21		the person with a developmental disability or a substance use
22		disorder.
23		"Aggregate extension" for all taxing districts to which
24		this Law applies in accordance with Section 18-213, except for
25		those taxing districts subject to paragraph (2) of subsection
26		(e) of Section 18-213, means the annual corporate extension

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1		for the taxing district and those special purpose extensions
2		that are made annually for the taxing district, excluding
3		special purpose extensions: (a) made for the taxing district
4		to pay interest or principal on general obligation bonds that
5		were approved by referendum; (b) made for any taxing district
6		to pay interest or principal on general obligation bonds
7		issued before the date on which the referendum making this Law
8		applicable to the taxing district is held; (c) made for any
9		taxing district to pay interest or principal on bonds issued
10		to refund or continue to refund those bonds issued before the
11		date on which the referendum making this Law applicable to the
12		taxing district is held; (d) made for any taxing district to
13		pay interest or principal on bonds issued to refund or
14		continue to refund bonds issued after the date on which the
15		referendum making this Law applicable to the taxing district
16		is held if the bonds were approved by referendum after the date
17		on which the referendum making this Law applicable to the
18		taxing district is held; (e) made for any taxing district to
19		pay interest or principal on revenue bonds issued before the
20		date on which the referendum making this Law applicable to the
21		taxing district is held for payment of which a property tax
22		levy or the full faith and credit of the unit of local
23		government is pledged; however, a tax for the payment of
24		interest or principal on those bonds shall be made only after
25		the governing body of the unit of local government finds that
26		all other sources for payment are insufficient to make those

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1		payments; (f) made for payments under a building commission
2		lease when the lease payments are for the retirement of bonds
3		issued by the commission before the date on which the
4		referendum making this Law applicable to the taxing district
5		is held to pay for the building project; (g) made for payments
6		due under installment contracts entered into before the date
7		on which the referendum making this Law applicable to the
8		taxing district is held; (h) made for payments of principal
9		and interest on limited bonds, as defined in Section 3 of the
10		Local Government Debt Reform Act, in an amount not to exceed
11		the debt service extension base less the amount in items (b),
12		(c), and (e) of this definition for non-referendum
13		obligations, except obligations initially issued pursuant to
14		referendum; (i) made for payments of principal and interest on
15		bonds issued under Section 15 of the Local Government Debt
16		Reform Act; (j) made for a qualified airport authority to pay
17		interest or principal on general obligation bonds issued for
18		the purpose of paying obligations due under, or financing
19		airport facilities required to be acquired, constructed,
20		installed or equipped pursuant to, contracts entered into
21		before March 1, 1996 (but not including any amendments to such
22		a contract taking effect on or after that date); (k) made to
23		fund expenses of providing joint recreational programs for
24		persons with disabilities under Section 5-8 of the Park
25		District Code or Section 11-95-14 of the Illinois Municipal
26		Code; (l) made for contributions to a firefighter's pension

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1		fund created under Article 4 of the Illinois Pension Code, to
2		the extent of the amount certified under item (5) of Section
3		4-134 of the Illinois Pension Code; and (m) made for the taxing
4		district to pay interest or principal on general obligation
5		bonds issued pursuant to Section 19-3.10 of the School Code;
6		and (n) made under Section 4 of the Community Mental Health Act
7		to provide the necessary funds or to supplement existing funds
8		for community mental health facilities and services, including
9		facilities and services for the person with a developmental
10		disability or a substance use disorder.
11		"Aggregate extension" for all taxing districts to which
12		this Law applies in accordance with paragraph (2) of
13		subsection (e) of Section 18-213 means the annual corporate
14		extension for the taxing district and those special purpose
15		extensions that are made annually for the taxing district,
16		excluding special purpose extensions: (a) made for the taxing
17		district to pay interest or principal on general obligation
18		bonds that were approved by referendum; (b) made for any
19		taxing district to pay interest or principal on general
20		obligation bonds issued before March 7, 1997 (the effective
21		date of Public Act 89-718); (c) made for any taxing district to
22		pay interest or principal on bonds issued to refund or
23		continue to refund those bonds issued before March 7, 1997
24		(the effective date of Public Act 89-718); (d) made for any
25		taxing district to pay interest or principal on bonds issued
26		to refund or continue to refund bonds issued after March 7,

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1		1997 (the effective date of Public Act 89-718) if the bonds
2		were approved by referendum after March 7, 1997 (the effective
3		date of Public Act 89-718); (e) made for any taxing district to
4		pay interest or principal on revenue bonds issued before March
5		7, 1997 (the effective date of Public Act 89-718) for payment
6		of which a property tax levy or the full faith and credit of
7		the unit of local government is pledged; however, a tax for the
8		payment of interest or principal on those bonds shall be made
9		only after the governing body of the unit of local government
10		finds that all other sources for payment are insufficient to
11		make those payments; (f) made for payments under a building
12		commission lease when the lease payments are for the
13		retirement of bonds issued by the commission before March 7,
14		1997 (the effective date of Public Act 89-718) to pay for the
15		building project; (g) made for payments due under installment
16		contracts entered into before March 7, 1997 (the effective
17		date of Public Act 89-718); (h) made for payments of principal
18		and interest on limited bonds, as defined in Section 3 of the
19		Local Government Debt Reform Act, in an amount not to exceed
20		the debt service extension base less the amount in items (b),
21		(c), and (e) of this definition for non-referendum
22		obligations, except obligations initially issued pursuant to
23		referendum; (i) made for payments of principal and interest on
24		bonds issued under Section 15 of the Local Government Debt
25		Reform Act; (j) made for a qualified airport authority to pay
26		interest or principal on general obligation bonds issued for

HB4951 Enrolled - 1244 - LRB103 38094 HLH 68226 b
1		the purpose of paying obligations due under, or financing
2		airport facilities required to be acquired, constructed,
3		installed or equipped pursuant to, contracts entered into
4		before March 1, 1996 (but not including any amendments to such
5		a contract taking effect on or after that date); (k) made to
6		fund expenses of providing joint recreational programs for
7		persons with disabilities under Section 5-8 of the Park
8		District Code or Section 11-95-14 of the Illinois Municipal
9		Code; and (l) made for contributions to a firefighter's
10		pension fund created under Article 4 of the Illinois Pension
11		Code, to the extent of the amount certified under item (5) of
12		Section 4-134 of the Illinois Pension Code; and (m) made under
13		Section 4 of the Community Mental Health Act to provide the
14		necessary funds or to supplement existing funds for community
15		mental health facilities and services, including facilities
16		and services for the person with a developmental disability or
17		a substance use disorder.
18		"Debt service extension base" means an amount equal to
19		that portion of the extension for a taxing district for the
20		1994 levy year, or for those taxing districts subject to this
21		Law in accordance with Section 18-213, except for those
22		subject to paragraph (2) of subsection (e) of Section 18-213,
23		for the levy year in which the referendum making this Law
24		applicable to the taxing district is held, or for those taxing
25		districts subject to this Law in accordance with paragraph (2)
26		of subsection (e) of Section 18-213 for the 1996 levy year,

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1		constituting an extension for payment of principal and
2		interest on bonds issued by the taxing district without
3		referendum, but not including excluded non-referendum bonds.
4		For park districts (i) that were first subject to this Law in
5		1991 or 1995 and (ii) whose extension for the 1994 levy year
6		for the payment of principal and interest on bonds issued by
7		the park district without referendum (but not including
8		excluded non-referendum bonds) was less than 51% of the amount
9		for the 1991 levy year constituting an extension for payment
10		of principal and interest on bonds issued by the park district
11		without referendum (but not including excluded non-referendum
12		bonds), "debt service extension base" means an amount equal to
13		that portion of the extension for the 1991 levy year
14		constituting an extension for payment of principal and
15		interest on bonds issued by the park district without
16		referendum (but not including excluded non-referendum bonds).
17		A debt service extension base established or increased at any
18		time pursuant to any provision of this Law, except Section
19		18-212, shall be increased each year commencing with the later
20		of (i) the 2009 levy year or (ii) the first levy year in which
21		this Law becomes applicable to the taxing district, by the
22		lesser of 5% or the percentage increase in the Consumer Price
23		Index during the 12-month calendar year preceding the levy
24		year. The debt service extension base may be established or
25		increased as provided under Section 18-212. "Excluded
26		non-referendum bonds" means (i) bonds authorized by Public Act

HB4951 Enrolled - 1246 - LRB103 38094 HLH 68226 b
1		88-503 and issued under Section 20a of the Chicago Park
2		District Act for aquarium and museum projects; (ii) bonds
3		issued under Section 15 of the Local Government Debt Reform
4		Act; or (iii) refunding obligations issued to refund or to
5		continue to refund obligations initially issued pursuant to
6		referendum.
7		"Special purpose extensions" include, but are not limited
8		to, extensions for levies made on an annual basis for
9		unemployment and workers' compensation, self-insurance,
10		contributions to pension plans, and extensions made pursuant
11		to Section 6-601 of the Illinois Highway Code for a road
12		district's permanent road fund whether levied annually or not.
13		The extension for a special service area is not included in the
14		aggregate extension.
15		"Aggregate extension base" means the taxing district's
16		last preceding aggregate extension as adjusted under Sections
17		18-135, 18-215, 18-230, 18-206, and 18-233. Beginning with
18		levy year 2022, for taxing districts that are specified in
19		Section 18-190.7, the taxing district's aggregate extension
20		base shall be calculated as provided in Section 18-190.7. An
21		adjustment under Section 18-135 shall be made for the 2007
22		levy year and all subsequent levy years whenever one or more
23		counties within which a taxing district is located (i) used
24		estimated valuations or rates when extending taxes in the
25		taxing district for the last preceding levy year that resulted
26		in the over or under extension of taxes, or (ii) increased or

HB4951 Enrolled - 1247 - LRB103 38094 HLH 68226 b
1		decreased the tax extension for the last preceding levy year
2		as required by Section 18-135(c). Whenever an adjustment is
3		required under Section 18-135, the aggregate extension base of
4		the taxing district shall be equal to the amount that the
5		aggregate extension of the taxing district would have been for
6		the last preceding levy year if either or both (i) actual,
7		rather than estimated, valuations or rates had been used to
8		calculate the extension of taxes for the last levy year, or
9		(ii) the tax extension for the last preceding levy year had not
10		been adjusted as required by subsection (c) of Section 18-135.
11		Notwithstanding any other provision of law, for levy year
12		2012, the aggregate extension base for West Northfield School
13		District No. 31 in Cook County shall be $12,654,592.
14		Notwithstanding any other provision of law, for levy year
15		2022, the aggregate extension base of a home equity assurance
16		program that levied at least $1,000,000 in property taxes in
17		levy year 2019 or 2020 under the Home Equity Assurance Act
18		shall be the amount that the program's aggregate extension
19		base for levy year 2021 would have been if the program had
20		levied a property tax for levy year 2021.
21		"Levy year" has the same meaning as "year" under Section
22		1-155.
23		"New property" means (i) the assessed value, after final
24		board of review or board of appeals action, of new
25		improvements or additions to existing improvements on any
26		parcel of real property that increase the assessed value of

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1		that real property during the levy year multiplied by the
2		equalization factor issued by the Department under Section
3		17-30, (ii) the assessed value, after final board of review or
4		board of appeals action, of real property not exempt from real
5		estate taxation, which real property was exempt from real
6		estate taxation for any portion of the immediately preceding
7		levy year, multiplied by the equalization factor issued by the
8		Department under Section 17-30, including the assessed value,
9		upon final stabilization of occupancy after new construction
10		is complete, of any real property located within the
11		boundaries of an otherwise or previously exempt military
12		reservation that is intended for residential use and owned by
13		or leased to a private corporation or other entity, (iii) in
14		counties that classify in accordance with Section 4 of Article
15		IX of the Illinois Constitution, an incentive property's
16		additional assessed value resulting from a scheduled increase
17		in the level of assessment as applied to the first year final
18		board of review market value, and (iv) any increase in
19		assessed value due to oil or gas production from an oil or gas
20		well required to be permitted under the Hydraulic Fracturing
21		Regulatory Act that was not produced in or accounted for
22		during the previous levy year. In addition, the county clerk
23		in a county containing a population of 3,000,000 or more shall
24		include in the 1997 recovered tax increment value for any
25		school district, any recovered tax increment value that was
26		applicable to the 1995 tax year calculations.

HB4951 Enrolled - 1249 - LRB103 38094 HLH 68226 b
1		"Qualified airport authority" means an airport authority
2		organized under the Airport Authorities Act and located in a
3		county bordering on the State of Wisconsin and having a
4		population in excess of 200,000 and not greater than 500,000.
5		"Recovered tax increment value" means, except as otherwise
6		provided in this paragraph, the amount of the current year's
7		equalized assessed value, in the first year after a
8		municipality terminates the designation of an area as a
9		redevelopment project area previously established under the
10		Tax Increment Allocation Redevelopment Act in the Illinois
11		Municipal Code, previously established under the Industrial
12		Jobs Recovery Law in the Illinois Municipal Code, previously
13		established under the Economic Development Project Area Tax
14		Increment Act of 1995, or previously established under the
15		Economic Development Area Tax Increment Allocation Act, of
16		each taxable lot, block, tract, or parcel of real property in
17		the redevelopment project area over and above the initial
18		equalized assessed value of each property in the redevelopment
19		project area. For the taxes which are extended for the 1997
20		levy year, the recovered tax increment value for a non-home
21		rule taxing district that first became subject to this Law for
22		the 1995 levy year because a majority of its 1994 equalized
23		assessed value was in an affected county or counties shall be
24		increased if a municipality terminated the designation of an
25		area in 1993 as a redevelopment project area previously
26		established under the Tax Increment Allocation Redevelopment

HB4951 Enrolled - 1250 - LRB103 38094 HLH 68226 b
1		Act in the Illinois Municipal Code, previously established
2		under the Industrial Jobs Recovery Law in the Illinois
3		Municipal Code, or previously established under the Economic
4		Development Area Tax Increment Allocation Act, by an amount
5		equal to the 1994 equalized assessed value of each taxable
6		lot, block, tract, or parcel of real property in the
7		redevelopment project area over and above the initial
8		equalized assessed value of each property in the redevelopment
9		project area. In the first year after a municipality removes a
10		taxable lot, block, tract, or parcel of real property from a
11		redevelopment project area established under the Tax Increment
12		Allocation Redevelopment Act in the Illinois Municipal Code,
13		the Industrial Jobs Recovery Law in the Illinois Municipal
14		Code, or the Economic Development Area Tax Increment
15		Allocation Act, "recovered tax increment value" means the
16		amount of the current year's equalized assessed value of each
17		taxable lot, block, tract, or parcel of real property removed
18		from the redevelopment project area over and above the initial
19		equalized assessed value of that real property before removal
20		from the redevelopment project area.
21		Except as otherwise provided in this Section, "limiting
22		rate" means a fraction the numerator of which is the last
23		preceding aggregate extension base times an amount equal to
24		one plus the extension limitation defined in this Section and
25		the denominator of which is the current year's equalized
26		assessed value of all real property in the territory under the

HB4951 Enrolled - 1251 - LRB103 38094 HLH 68226 b
1		jurisdiction of the taxing district during the prior levy
2		year. For those taxing districts that reduced their aggregate
3		extension for the last preceding levy year, except for school
4		districts that reduced their extension for educational
5		purposes pursuant to Section 18-206, the highest aggregate
6		extension in any of the last 3 preceding levy years shall be
7		used for the purpose of computing the limiting rate. The
8		denominator shall not include new property or the recovered
9		tax increment value. If a new rate, a rate decrease, or a
10		limiting rate increase has been approved at an election held
11		after March 21, 2006, then (i) the otherwise applicable
12		limiting rate shall be increased by the amount of the new rate
13		or shall be reduced by the amount of the rate decrease, as the
14		case may be, or (ii) in the case of a limiting rate increase,
15		the limiting rate shall be equal to the rate set forth in the
16		proposition approved by the voters for each of the years
17		specified in the proposition, after which the limiting rate of
18		the taxing district shall be calculated as otherwise provided.
19		In the case of a taxing district that obtained referendum
20		approval for an increased limiting rate on March 20, 2012, the
21		limiting rate for tax year 2012 shall be the rate that
22		generates the approximate total amount of taxes extendable for
23		that tax year, as set forth in the proposition approved by the
24		voters; this rate shall be the final rate applied by the county
25		clerk for the aggregate of all capped funds of the district for
26		tax year 2012.

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1		(Source: P.A. 102-263, eff. 8-6-21; 102-311, eff. 8-6-21;
2		102-519, eff. 8-20-21; 102-558, eff. 8-20-21; 102-707, eff.
3		4-22-22; 102-813, eff. 5-13-22; 102-895, eff. 5-23-22;
4		103-154, eff. 6-30-23.)
5		Section 175-10. The Community Mental Health Act is amended
6		by changing Sections 3a, 3b, 3e, 3f, 4, 5, 6, and 7 as follows:
7		(405 ILCS 20/3a) (from Ch. 91 1/2, par. 303a)
8		Sec. 3a. Every governmental unit authorized to levy an
9		annual tax under any of the provisions of this Act shall,
10		before it may levy such tax, establish a 7 member community
11		mental health board who shall administer this Act. Such board
12		shall be appointed by the chairman of the governing body of a
13		county, the mayor of a city, the president of a village, the
14		president of an incorporated town, or the supervisor of a
15		township, as the case may be, with the advice and consent of
16		the governing body of such county, city, village, incorporated
17		town or the town board of trustees of any township, except in
18		any county with a county executive form of government, if
19		applicable, the county executive shall appoint the board with
20		the advice and consent of the county board. Members of the
21		community mental health board shall be residents of the
22		government unit and, as nearly as possible, be representative
23		of interested groups of the community such as local health
24		departments, medical societies, local comprehensive health

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1		planning agencies, hospital boards, lay associations concerned
2		with mental health, developmental disabilities and substance
3		abuse, and individuals with professional or lived expertise in
4		mental health, developmental disabilities, and substance abuse
5		as well as the general public. General public representation
6		may also be considered for appointment when there are gaps in
7		board duties and qualifications that cannot be filled from the
8		above stated categories. Only one member shall be a member of
9		the governing body, with the term of membership on the board to
10		run concurrently with the elected term of the member. The
11		chairman of the governing body may, upon the request of the
12		community mental health board, appoint 2 additional members to
13		the community mental health board. No member of the community
14		mental health board may be a full-time or part-time employee
15		of the Department of Human Services or a board member,
16		employee or any other individual receiving compensation from
17		any facility or service operating under contract to the board.
18		If a successful referendum is held under Section 5 of this Act,
19		all members of such board shall be appointed within 60 days
20		after the local election authority certifies the passage of
21		the referendum. If a community mental health board has been
22		established by a county with a population of less than 500,000
23		and the community mental health board is funded in whole or in
24		part by a special mental health sales tax described in
25		paragraph (4) of subsection (a) of Section 5-1006.5 of the
26		Counties Code, the largest municipality in the county with at

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1		least 125,000 residents may appoint 2 additional members to
2		the board. The members shall be appointed by the mayor of the
3		municipality with the advice and consent of the municipality's
4		governing body.
5		Home rule units are exempt from this Act. However, they
6		may, by ordinance, adopt the provisions of this Act, or any
7		portion thereof, that they may deem advisable.
8		The tax rate set forth in Section 4 may be levied by any
9		non-home rule unit only pursuant to the approval by the voters
10		at a referendum. Such referendum may have been held at any time
11		subsequent to the effective date of the Community Mental
12		Health Act.
13		(Source: P.A. 103-274, eff. 1-1-24; 103-565, eff. 11-17-23.)
14		(405 ILCS 20/3b) (from Ch. 91 1/2, par. 303b)
15		Sec. 3b. The term of office of each member of the community
16		mental health board shall be for 4 years, provided, however,
17		that of the members first appointed, 2 shall be appointed for a
18		term of 2 years, 2 for a term of 3 years and 3 for a term of 4
19		years. All terms shall be measured from the first day of the
20		month of appointment. Vacancies shall be filled for the
21		unexpired term in the same manner as original appointments. A
22		community mental health board may provide advice to the
23		governing body and may establish a policy and procedure for
24		the acceptance and review of applications from interested
25		residents prior to making a recommendation to the appointing

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1		authority.
2		(Source: P.A. 103-274, eff. 1-1-24.)
3		(405 ILCS 20/3e) (from Ch. 91 1/2, par. 303e)
4		Sec. 3e. Board's powers and duties.
5		(1) Every community mental health board shall, within 30
6		days after members are first appointed and within 30 days
7		after members are appointed or reappointed upon the expiration
8		of a member's term, meet and organize, by the election of one
9		of its number as president and one as secretary and such other
10		officers as it may deem necessary. It shall make rules and
11		regulations concerning the rendition or operation of services
12		and facilities which it directs, supervises or funds, not
13		inconsistent with the provisions of this Act. It shall:
14		(a) Hold a meeting prior to July 1 of each year at
15		which officers shall be elected for the ensuing year
16		beginning July 1. If the community mental health board has
17		already held or scheduled an election to take place prior
18		to July 1, an additional election is not required on the
19		basis of the appointment or reappointment of a member to
20		the community mental health board;
21		(b) Hold meetings at least quarterly;
22		(c) Hold special meetings upon a written request
23		signed by at least 2 members and filed with the secretary;
24		(d) Review and evaluate community mental health
25		services and facilities, including services and facilities

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1		for the treatment of alcoholism, drug addiction,
2		developmental disabilities, and intellectual
3		disabilities;
4		(e) Authorize the disbursement of money from the
5		community mental health fund for payment for the ordinary
6		and contingent expenses of the board;
7		(f) Submit to the appointing officer and the members
8		of the governing body a written plan for a program of
9		community mental health services and facilities for
10		persons with a mental illness, a developmental disability,
11		or a substance use disorder. Such plan shall be for the
12		ensuing 12 month period. In addition, a plan shall be
13		developed for the ensuing 3 year period and such plan
14		shall be reviewed at the end of every 12 month period and
15		shall be modified as deemed advisable; .
16		(g) Within amounts appropriated therefor, execute such
17		programs and maintain such services and facilities as may
18		be authorized under such appropriations, including amounts
19		appropriated under bond issues, if any;
20		(h) Publish the annual budget and report within 180
21		120 days after the end of the fiscal year in a newspaper
22		distributed within the jurisdiction of the board, or, if
23		no newspaper is published within the jurisdiction of the
24		board, then one published in the county, or, if no
25		newspaper is published in the county, then in a newspaper
26		having general circulation within the jurisdiction of the

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1		board. The report shall show the condition of its trust of
2		that year, the sums of money received from all sources,
3		giving the name of any donor, how all monies have been
4		expended and for what purpose, and such other statistics
5		and program information in regard to the work of the board
6		as it may deem of general interest. A copy of the budget
7		and the annual report shall be made available to the
8		Department of Human Services and to members of the General
9		Assembly whose districts include any part of the
10		jurisdiction of such board. The names of all employees,
11		consultants, and other personnel shall be set forth along
12		with the amounts of money received;
13		(i) Consult with other appropriate private and public
14		agencies in the development of local plans for the most
15		efficient delivery of mental health, developmental
16		disabilities, and substance use disorder services. The
17		Board is authorized to join and to participate in the
18		activities of associations organized for the purpose of
19		promoting more efficient and effective services and
20		programs;
21		(j) Have the authority to review and comment on all
22		applications for grants by any person, corporation, or
23		governmental unit providing services within the
24		geographical area of the board which provides mental
25		health facilities and services, including services for the
26		person with a mental illness, a developmental disability,

HB4951 Enrolled - 1258 - LRB103 38094 HLH 68226 b
1		or a substance use disorder. The board may require funding
2		applicants to send a copy of their funding application to
3		the board at the time such application is submitted to the
4		Department of Human Services or to any other local, State
5		or federal funding source or governmental agency. Within
6		60 days of the receipt of any application, the board shall
7		submit its review and comments to the Department of Human
8		Services or to any other appropriate local, State or
9		federal funding source or governmental agency. A copy of
10		the review and comments shall be submitted to the funding
11		applicant. Within 60 days thereafter, the Department of
12		Human Services or any other appropriate local or State
13		governmental agency shall issue a written response to the
14		board and the funding applicant. The Department of Human
15		Services or any other appropriate local or State
16		governmental agency shall supply any community mental
17		health board such information about purchase-of-care
18		funds, State facility utilization, and costs in its
19		geographical area as the board may request provided that
20		the information requested is for the purpose of the
21		Community Mental Health Board complying with the
22		requirements of Section 3f, subsection (f) of this Act;
23		(k) Perform such other acts as may be necessary or
24		proper to carry out the purposes of this Act.
25		(2) The community mental health board has the following
26		powers:

HB4951 Enrolled - 1259 - LRB103 38094 HLH 68226 b
1		(a) The board may enter into multiple-year contracts
2		for rendition or operation of services, facilities and
3		educational programs.
4		(b) The board may arrange through intergovernmental
5		agreements or intragovernmental agreements or both for the
6		rendition of services and operation of facilities by other
7		agencies or departments of the governmental unit or county
8		in which the governmental unit is located with the
9		approval of the governing body.
10		(c) To employ, establish compensation for, and set
11		policies for its personnel, including legal counsel, as
12		may be necessary to carry out the purposes of this Act and
13		prescribe the duties thereof. The board may enter into
14		multiple-year employment contracts as may be necessary for
15		the recruitment and retention of personnel and the proper
16		functioning of the board.
17		(d) The board may enter into multiple-year joint
18		agreements, which shall be written, with other mental
19		health boards and boards of health to provide jointly
20		agreed upon community mental health facilities and
21		services and to pool such funds as may be deemed necessary
22		and available for this purpose.
23		(e) The board may organize a not-for-profit
24		corporation for the purpose of providing direct recipient
25		services. Such corporations shall have, in addition to all
26		other lawful powers, the power to contract with persons to

HB4951 Enrolled - 1260 - LRB103 38094 HLH 68226 b
1		furnish services for recipients of the corporation's
2		facilities, including psychiatrists and other physicians
3		licensed in this State to practice medicine in all of its
4		branches. Such physicians shall be considered independent
5		contractors, and liability for any malpractice shall not
6		extend to such corporation, nor to the community mental
7		health board, except for gross negligence in entering into
8		such a contract.
9		(f) The board shall not operate any direct recipient
10		services for more than a 2-year period when such services
11		are being provided in the governmental unit, but shall
12		encourage, by financial support, the development of
13		private agencies to deliver such needed services, pursuant
14		to regulations of the board.
15		(g) Where there are multiple boards within the same
16		planning area, as established by the Department of Human
17		Services, services may be purchased through a single
18		delivery system. In such areas, a coordinating body with
19		representation from each board shall be established to
20		carry out the service functions of this Act. In the event
21		any such coordinating body purchases or improves real
22		property, such body shall first obtain the approval of the
23		governing bodies of the governmental units in which the
24		coordinating body is located.
25		(h) The board may enter into multiple-year joint
26		agreements with other governmental units located within

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1		the geographical area of the board. Such agreements shall
2		be written and shall provide for the rendition of services
3		by the board to the residents of such governmental units.
4		(i) The board may enter into multiple-year joint
5		agreements with federal, State, and local governments,
6		including the Department of Human Services or any other
7		appropriate local or State governmental agency, whereby
8		the board will provide certain services. All such joint
9		agreements must provide for the exchange of relevant data.
10		However, nothing in this Act shall be construed to permit
11		the abridgement of the confidentiality of patient records.
12		(j) The board may receive gifts from private sources
13		for purposes not inconsistent with the provisions of this
14		Act.
15		(k) The board may receive federal Federal, State, and
16		local funds for purposes not inconsistent with the
17		provisions of this Act.
18		(l) The board may establish scholarship programs. Such
19		programs shall require equivalent service or reimbursement
20		pursuant to regulations of the board.
21		(m) The board may sell, rent, or lease real property
22		for purposes consistent with this Act.
23		(n) The board may: (i) own real property, lease real
24		property as lessee, or acquire real property by purchase,
25		construction, lease-purchase agreement, or otherwise; (ii)
26		take title to the property in the board's name; (iii)

HB4951 Enrolled - 1262 - LRB103 38094 HLH 68226 b
1		borrow money and issue debt instruments, mortgages,
2		purchase-money mortgages, and other security instruments
3		with respect to the property; and (iv) maintain, repair,
4		remodel, or improve the property. All of these activities
5		must be for purposes consistent with this Act as may be
6		reasonably necessary for the housing and proper
7		functioning of the board. The board may use moneys in the
8		Community Mental Health Fund for these purposes.
9		(o) The board may organize a not-for-profit
10		corporation (i) for the purpose of raising money to be
11		distributed by the board for providing community mental
12		health services and facilities for the treatment of
13		alcoholism, drug addiction, developmental disabilities,
14		and intellectual disabilities or (ii) for other purposes
15		not inconsistent with this Act.
16		(p) The board may fix a fiscal year for the board.
17		(q) The board has the responsibility to set, maintain,
18		and implement the budget.
19		(r) The board may establish professional incentive
20		programs for the purposes of workforce development and
21		retention that may include education assistance, student
22		loan repayment, professional certification and licensure
23		assistance, and internship stipends.
24		Every board shall be subject to the requirements under the
25		Freedom of Information Act and the Open Meetings Act.
26		(Source: P.A. 103-274, eff. 1-1-24; revised 1-20-24.)

HB4951 Enrolled - 1263 - LRB103 38094 HLH 68226 b
1		(405 ILCS 20/3f) (from Ch. 91 1/2, par. 303f)
2		Sec. 3f. Annually, each community mental health board
3		shall prepare and submit, for informational purposes in the
4		appropriations process, to the appointing officer and
5		governing body referred to in Section 3a: (a) an annual budget
6		showing the estimated receipts and intended disbursements
7		pursuant to this Act for the fiscal year immediately following
8		the date the budget is submitted, which date must be at least
9		30 days prior to the start of the fiscal year, and (b) an
10		annual report detailing the income received and disbursements
11		made pursuant to this Act during the fiscal year just
12		preceding the date the annual report is submitted, which date
13		must be within 180 90 days of the end close of that fiscal
14		year. Such report shall also include those matters set forth
15		in Section 8 of this Act.
16		(Source: P.A. 95-336, eff. 8-21-07.)
17		(405 ILCS 20/4) (from Ch. 91 1/2, par. 304)
18		Sec. 4. In order to provide the necessary funds or to
19		supplement existing funds for such community mental health
20		facilities and services, including facilities and services for
21		the person with a developmental disability or a substance use
22		disorder, the governing body of any governmental unit, subject
23		to the provisions of Section 5, may levy an annual tax of not
24		to exceed .15% upon all of the taxable property in such

HB4951 Enrolled - 1264 - LRB103 38094 HLH 68226 b
1		governmental unit at the value thereof, as equalized or
2		assessed by the Department of Revenue. Such tax shall be
3		levied and collected in the same manner as other governmental
4		unit taxes, but shall not be included in any limitation
5		otherwise prescribed as to the rate or amount of governmental
6		unit taxes, but shall be in addition thereto and in excess
7		thereof.
8		An annual tax levied by any governmental unit under this
9		Section is separate and distinct from all other property taxes
10		levied by that governmental unit and (1) shall not be
11		considered an increase for purposes of the application of the
12		Truth in Taxation Law and its requirements and (2) shall not be
13		subject to the Property Tax Extension Limitation Law.
14		When collected, such tax shall be paid into a special fund
15		to be designated as the "Community Mental Health Fund" which
16		shall, upon authorization by the appropriate governmental
17		unit, be administered by the community mental health board and
18		used only for the purposes specified in this Act. Nothing
19		contained herein shall in any way preclude the use of other
20		funds available for such purposes under any existing Federal,
21		State or local statute. Interest earned from moneys deposited
22		in this Fund shall only be used for purposes which are
23		authorized by this Act.
24		In any city, village, incorporated town, or township which
25		levies a tax for the purpose of providing community mental
26		health facilities and services and part or all of such city,

HB4951 Enrolled - 1265 - LRB103 38094 HLH 68226 b
1		village, incorporated town, or township is in a county or
2		township, as the case may be, which levies a tax to provide
3		community mental health facilities and services under the
4		provisions of this Act, such county or township, as the case
5		may be, shall pay to such city, village, incorporated town, or
6		township, as the case may be, the entire amount collected from
7		taxes under this Section on property subject to a tax which any
8		city, village, incorporated town, or township thereof levies
9		to provide community mental health facilities and services.
10		Whenever any city, village, incorporated town, or township
11		receives any payments from a county or township as provided
12		above, such city, village, incorporated town, or township
13		shall reduce and abate from the tax levied by the authority of
14		this Section a rate which would produce an amount equal to the
15		amount received from such county or township.
16		(Source: P.A. 95-336, eff. 8-21-07.)
17		(405 ILCS 20/5) (from Ch. 91 1/2, par. 305)
18		Sec. 5. (a) When the governing body of a governmental unit
19		passes a resolution as provided in Section 4 asking that an
20		annual tax may be levied for the purpose of providing such
21		mental health facilities and services, including facilities
22		and services for the person with a developmental disability or
23		a substance use disorder, in the community and so instructs
24		the clerk of the governmental unit such clerk shall certify
25		the proposition to the proper election officials for

HB4951 Enrolled - 1266 - LRB103 38094 HLH 68226 b
1		submission at a regular election in accordance with the
2		general election law. The proposition shall be in
3		substantially the following form:
4		----------------------------
5		Shall............ (governmental
6		unit) levy an annual tax
7		not to exceed of (no not YES
8		more than .15%) for the purpose
9		of providing community mental
10		health facilities and --------------------------------
11		services including facilities
12		and services for persons with
13		a developmental disability or a NO
14		substance use disorder?
15		-------------------------------------------------------------
16		(a-5) In addition, the ballot for any proposition
17		submitted pursuant to this Section shall have printed thereon,
18		but not as part of the proposition submitted, only the
19		following supplemental information (which shall be supplied to
20		the election authority by the taxing district) in
21		substantially the following form:
22		(1) The approximate amount of taxes extendable at the
23		most recently extended limiting rate is $...., and the
24		approximate amount of taxes extendable if the proposition
25		is approved is $....
26		(2) For the .... (insert the first levy year for which

HB4951 Enrolled - 1267 - LRB103 38094 HLH 68226 b
1		the new rate or increase limiting rate will be applicable)
2		levy year the approximate amount of the additional tax
3		extendable against property containing a single family
4		residence and having a fair market value at the time of the
5		referendum of $100,000 is estimated to be $....
6		If a proposition contains the language in substantially
7		the form provided above the referendum is valid
8		notwithstanding any other provision of the law. If the
9		governmental unit is also subject to the Property Tax
10		Extension Limitation Law, then the proposition shall also
11		comply with the Property Tax Extension Limitation Law.
12		Notwithstanding any provision of this subsection, any
13		referendum imposing an annual tax on or after January 1, 1994
14		and prior to the effective date of this amendatory Act of the
15		103rd General Assembly that complies with subsection (a) is
16		hereby validated.
17		(b) If a majority of all the votes cast upon the
18		proposition are for the levy of such tax, the governing body of
19		such governmental unit shall thereafter annually levy a tax
20		not to exceed the rate set forth in Section 4. Thereafter, the
21		governing body shall in the annual appropriation bill
22		appropriate from such funds such sum or sums of money as may be
23		deemed necessary by the community mental health board, based
24		upon the community mental health board's budget, the board's
25		annual mental health report, and the local mental health plan
26		to defray necessary expenses and liabilities in providing for

HB4951 Enrolled - 1268 - LRB103 38094 HLH 68226 b
1		such community mental health facilities and services.
2		(c) If the governing body of a governmental unit levies a
3		tax under Section 4 of this Act and the rate specified in the
4		proposition under subsection (a) of this Section is less than
5		0.15%, then the governing body of the governmental unit may,
6		upon referendum approval, increase that rate to not more than
7		0.15%. The governing body shall instruct the clerk of the
8		governmental unit to certify the proposition to the proper
9		election officials for submission at a regular election in
10		accordance with the general election law. The proposition
11		shall be in the following form:
12		"Shall the tax imposed by (governmental unit) for the
13		purpose of providing community mental health facilities
14		and services, including facilities and services for
15		persons with a developmental disability or substance use
16		disorder be increased to (not more than 0.15%)?"
17		If a majority of all the votes cast upon the proposition
18		are for the increase of the tax, then the governing body of the
19		governmental unit may thereafter annually levy a tax not to
20		exceed the rate set forth in the referendum question. Nothing
21		in this Section prevents a governmental unit from levying less
22		than the amount approved by the voters via referendum in any
23		given year or varying the amount levied from year to year as
24		approved by the governmental unit.
25		(Source: P.A. 102-839, eff. 5-13-22; 102-935, eff. 7-1-22;
26		103-154, eff. 6-30-23; 103-274, eff. 1-1-24; 103-565, eff.

HB4951 Enrolled - 1269 - LRB103 38094 HLH 68226 b
1		11-17-23.)
2		(405 ILCS 20/6) (from Ch. 91 1/2, par. 306)
3		Sec. 6. Whenever the governing body of any governmental
4		unit has not provided the community mental health facilities
5		and services provided in Section 2 and levied the tax provided
6		in Section 4 and a petition signed by electors of the
7		governmental unit equal in number to at least 10% of the total
8		votes cast for the office which received the greatest total
9		number of votes at the last preceding general governmental
10		unit election is presented to the clerk of the governmental
11		unit requesting the establishment and maintenance of such
12		community mental health facilities and services, including
13		facilities and services for the person with a developmental
14		disability or a substance use disorder, for residents thereof
15		and the levy of such an annual tax therefor, the governing body
16		of the governmental unit, subject to the provisions of Section
17		7, shall establish and maintain such community mental health
18		facilities and services and shall levy such an annual tax of
19		not to exceed .15% upon all of the taxable property in such
20		governmental unit at the value thereof, as equalized or
21		assessed by the Department of Revenue. Such tax shall be
22		levied and collected in the same manner as other governmental
23		unit taxes, but shall not be included in any limitation
24		otherwise prescribed as to the rate or amount of governmental
25		unit taxes, but shall be in addition thereto and in excess

HB4951 Enrolled - 1270 - LRB103 38094 HLH 68226 b
1		thereof.
2		An annual tax levied by any governmental unit under this
3		Section is separate and distinct from all other property taxes
4		levied by that governmental unit and (1) shall not be
5		considered an increase for purposes of the application of the
6		Truth in Taxation Law and its requirements and (2) shall not be
7		subject to the Property Tax Extension Limitation Law.
8		When collected, such tax shall be paid into a special fund
9		to be designated as the "Community Mental Health Fund" which
10		shall, upon authorization by the appropriate governmental
11		unit, be administered by the community mental health board and
12		used only for the purposes specified in this Act. Nothing
13		contained herein shall in any way preclude the use of other
14		funds available for such purposes under any existing Federal,
15		State or local statute. Interest earned from moneys deposited
16		in this Fund shall only be used for purposes which are
17		authorized by this Act.
18		In any city, village, incorporated town, or township which
19		levies a tax for the purpose of providing community mental
20		health facilities and services and part or all of such city,
21		village, incorporated town, or township is in a county or
22		township, as the case may be, which levies a tax to provide
23		community mental health facilities and services under the
24		provisions of this Act, such county or township, as the case
25		may be, shall pay to such city, village, incorporated town, or
26		township, as the case may be, the entire amount collected from

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1		taxes under this Section on property subject to a tax which any
2		city, village, incorporated town, or township thereof levies
3		to provide community mental health facilities and services.
4		Whenever any city, village, incorporated town, or township
5		receives any payments from a county or township as provided
6		above, such city, village, incorporated town, or township
7		shall reduce and abate from the tax levied by the authority of
8		this Section a rate which would produce an amount equal to the
9		amount received from such county or township.
10		(Source: P.A. 95-336, eff. 8-21-07.)
11		(405 ILCS 20/7) (from Ch. 91 1/2, par. 307)
12		Sec. 7. When the petition provided for in Section 6 is
13		presented to the clerk of the governmental unit requesting the
14		establishment and maintenance of such mental health facilities
15		and services for residents of the community and the levy of
16		such an annual tax therefor, the clerk of the governmental
17		unit shall certify to the proper election officials the
18		proposition for the levy of such tax which shall be submitted
19		at a regular election in accordance with the general election
20		law. The proposition shall be in substantially the following
21		form:
22		--------------------------------------------------------
23		Shall....................
24		(governmental unit) establish and
25		maintain community mental health YES

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1		facilities and services including
2		facilities and services for the ----------------------
3		person with a developmental
4		disability or a substance NO
5		use disorder and levy therefor an
6		annual tax of not to exceed .15%?
7		-------------------------------------------------------------
8		In addition to certification of the question, the clerk of
9		the governmental unit shall prepare and submit to the proper
10		elected officials the following language which shall have
11		printed thereon, but not as part of the proposition submitted,
12		only the following supplemental information (which shall be
13		supplied to the election authority by the taxing district) in
14		substantially the following form:
15		(1) The approximate amount of taxes extendable at the
16		most recently extended limiting rate is $...., and the
17		approximate amount of taxes extendable if the proposition
18		is approved is $....
19		(2) For the .... (insert the first levy year for which
20		the new rate or increase limiting rate will be applicable)
21		levy year the approximate amount of the additional tax
22		extendable against property containing a single family
23		residence and having a fair market value at the time of the
24		referendum of $100,000 is estimated to be $....
25		If a proposition contains the language in substantially
26		the form provided in paragraphs (1) and (2), the referendum is

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1		valid notwithstanding any other provision of the law.
2		If a majority of all the votes cast upon the proposition
3		are in favor thereof, the governing body of such governmental
4		unit shall establish and maintain such community mental health
5		facilities and services and shall annually levy such tax.
6		Thereafter, the governing body shall in the annual
7		appropriation bill appropriate from such funds such sum or
8		sums of money as may be deemed necessary, based upon the
9		community mental health board's budget, the board's annual
10		mental health report, and the board's plan to defray necessary
11		expenses and liabilities in providing for such community
12		mental health facilities and services.
13		Nothing in this Section prevents a governmental unit from
14		levying less than the amount approved by the voters via
15		referendum in any given year or varying the amount levied from
16		year to year as approved by the governmental unit.
17		(Source: P.A. 95-336, eff. 8-21-07.)
18		Section 175-97. Retroactivity. The changes made by this
19		Article apply to referenda creating community mental health
20		boards, including community mental health boards located in
21		counties that have adopted a county executive form of
22		government under Division 2-5 of the Counties Code, to levy an
23		annual tax for the establishment and maintenance of mental
24		health facilities and services for residents of the community
25		that were approved or validated on or after January 1, 2020 and

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1		to referenda that are approved on or after the effective date
2		of this Article.
3		ARTICLE 999.
4		Section 999-95. No acceleration or delay. Where this Act
5		makes changes in a statute that is represented in this Act by
6		text that is not yet or no longer in effect (for example, a
7		Section represented by multiple versions), the use of that
8		text does not accelerate or delay the taking effect of (i) the
9		changes made by this Act or (ii) provisions derived from any
10		other Public Act.
11		Section 999-97. Severability. The provisions of this Act
12		are severable under Section 1.31 of the Statute on Statutes.